WhyHotel, a company that offers alternative lodging services and operates pop-up hotels in new luxury apartment buildings, has raised $10 million in Series A funding.
This round of funding was led by Highland Capital Partners. Camber Creek, Revolution’s Rise of the Rest Seed Fund, Mendacre, MetaProp, and Geolo Capital also participated in this round.
“The WhyHotel concept of turning brand new, yet to be leased luxury apartment building units into temporary hotel suites has seen great success with consumers in the areas we have launched so far,” said WhyHotel co-founder and president Bao Vuong. “It is for that reason that we are continuing our rapid expansion to bring the WhyHotel experience to additional metros and we are grateful to have received the funding to do so.”
A number of successful pop-up hotel launches took place this year, including properties in Washington D.C. and Baltimore. Currently, WhyHotel operates 100 to 250 room pop-up hotels with on-site staff available 24/7.
WhyHotel will be using the funding to launch pop-up hotels starting with three locations in Virginia, specifically Ballston Quarter, Centro Arlington, and The Boro in Tysons. And the company will continue expanding in 2019. Plus WhyHotel will use the funding to hire new positions across technology, brand, and sales.
“WhyHotel provides a better product and a better customer experience to business and leisure travelers for their short-term housing needs,” added Highland Capital partner Craig Driscoll. “The WhyHotel team has taken a leadership position in helping modern cities and leading property developers provide visitors with a more flexible and cost-effective housing option. We are proud to be partnered with the WhyHotel team on this journey.”
