Hotel management startup Life House raises $30M for national expansion

Ashton Kutcher’s venture capital firm is an investor in the company that automates and consolidates back office operations

National /
Jan.January 24, 2020 11:00 AM
Rami Zeidan, Ashton Kutcher, and Life House properties

Rami Zeidan, Ashton Kutcher, and Life House properties

Hotel management startup Life House raised $30 million to invest in technology as it seeks to expand into properties across the country. Its tech is now in hotels in the Miami area and Denver.

The Series B fundraising round was led by Thayer Ventures, which invests in technology companies in the travel industry. Other investors include Ashton Kutcher and Guy Oseary’s Sound Ventures, Tiger Global, JLL Spark, former Morgans Hotel Group chairman David Hamamoto and Bedrock Detroit founder Jim Ketai.

Global Founders Capital, Comcast Ventures and Trinity Ventures, which previously invested in Life House, also participated in this round, according to a release. It had raised $10 million prior to this funding round.

Last summer, New York-based Life House secured a $100 million equity commitment from Blue Flag Partners to expand in seasonal markets. In that arrangement, Blue Flag said it would own the hotels and Life House will design and manage the properties.

Life House’s technology automates and consolidates back office operations of hotels, including bookkeeping. The company started off by working with smaller properties, and now typically works with hotels with an average of 75 rooms. Life House — whose largest hotel in its portfolio is 131 rooms — claims its technology greatly reduces operating costs compared to a traditional operator. Direct bookings account for 65 percent of its reservations.

It manages properties in Miami, Miami Beach and Denver, and will be expanding to six more hotels in Denver, Nantucket and Tennessee this spring. It recently re-opened Life House Collins Park and will run The Variety Hotel when it opens later this year, both in Miami Beach.

Life House is looking at markets where hotel owners are underserved by traditional hotel management companies and brands where “real estate prices make sense,” Zeidan said, and cities where there’s a gap between lifestyle hotels and budget hotels.

Rami Zeidan, founder and CEO of Life House, said the money will be used to improve its technology and grow the company’s business development operations. The company has only 30 employees, he said.

“When we sign a new location, we don’t have to invest in the new location,” he said. “Our only cost to growth is business development and salespeople,” Zeidan said. “Unlike WeWork, that has to build an infrastructure, we don’t really have to build any local infrastructure. Our product is pretty market agnostic.”


Related Articles

arrow_forward_ios
From left: Howard Lorber, Spencer Rascoff, Rob Speyer, and Steve Witkoff (Getty, Twitter)
The definitive real estate SPAC tracker
The definitive real estate SPAC tracker
Council member Ben Kallos and Airbnb CEO Brian Chesky (Getty, iStock)
City Council bill would tighten screws on Airbnb
City Council bill would tighten screws on Airbnb
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Steven Steckel, Oliver Schwalbe and Jeff Adler (Getty)
Influencer co-working, Knicks practice space: The future of NYC real estate?
Influencer co-working, Knicks practice space: The future of NYC real estate?
Mayor Bill de Blasio (iStock, Getty)
De Blasio’s own staff says his hotel plan could cost NYC $7B
De Blasio’s own staff says his hotel plan could cost NYC $7B
Salim “Solly” Assa and the Mave Hotel at 62 Madison Avenue (Getty, Google Maps)
Solly Assa delinquent on Mave Hotel loan
Solly Assa delinquent on Mave Hotel loan
Cherre CEO L.D. Salmanson (Cherre/Facebook)
Real estate data firm Cherre raises $50M
Real estate data firm Cherre raises $50M
SmartRent CEO Lucas Haldeman (middle) with Fifth Wall’s Brendan Wallace (left) and Andriy Mykhaylovskyy (SmartRent, Fifth Wall, iStock)
SmartRent to go public via Fifth Wall SPAC
SmartRent to go public via Fifth Wall SPAC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...