WhyHotel, a Washington, D.C.-based alternative lodging service that operates pop-up hotels in newly built, luxury apartment buildings, secured $10M in Series A funding.
The round was led by Highland Capital Partners, with participation from Camber Creek, Revolution’s Rise of the Rest Seed Fund, Mendacre, MetaProp and Geolo Capital.
The company intends to use the funds to launch new pop-up hotels, beginning with three locations in Virginia, to continue expanding nationwide in 2019, and to hire new positions across multiple areas including technology, brand, sales and human capital.
WhyHotel operates 100 to 250 room pop-up hotels with 24/7 on-site staff in newly built, luxury apartment buildings. Its concept provides developers with a new way to utilize units during lease-up and provides tourists/guests with a new way to travel.
After a series of pop-up hotel launches in 2018, including properties in D.C. and Baltimore, the company will now expand to Northern Virginia with locations at Ballston Quarter, Centro Arlington, and The Boro in Tysons.
In partnership with the property owner, Brookfield Properties and QIC Global Real Estate, the Ballston Quarter pop-up will house up to 175 WhyHotel units and will be located at 700 N Randolph Street. The Centro Arlington pop-up, launched in partnership with Orr Partners and Weingarten Realty [NYSE: WRI] will house up to 150 WhyHotel units and will be located at 950 South George Mason Drive.
Finally, The Boro pop-up, located at 8305 Greensboro Drive in the future apartment building branded as “Rise” will house up to 150 WhyHotel units in partnership with The Meridian Group and Kettler.
Guests of the pop-ups enjoy modernly furnished luxury apartments, have access to the building’s amenities and a 24/7 onsite hospitality, security and cleaning staff, and benefit during temporary operation with discounted room nights for friends and family.
The company is currently planning for strategic development to new markets throughout the new year, with plans to expand beyond the East Coast. In addition to expansion to new markets, WhyHotel will also look to open new pop-ups in the cities they currently operate in, to create a permanent presence in the cities despite individual locations ending their temporary programs.
FinSMEs
11/12/2018