Domio not shutting down, plans “financial re-engineering”

Short-term rental operator has new interim CEO

National /
Nov.November 19, 2020 04:25 PM
Domio’s interim CEO Jim Mrha (Photos via Domio; iStock)

Domio’s interim CEO Jim Mrha (Photos via Domio; iStock)

Reports of Domio’s demise have been greatly exaggerated, according to the company’s interim CEO.

In response to a recent report that said the short-term rental company would cease operations and sell its assets, Jim Mrha, Domio’s interim CEO, said that its properties are, in fact, open for business.

But Mhra, who joined Domio in March after spending more than 30 years in the hotel industry, also acknowledged that the startup is in the midst of a “planned financial re-engineering” through a process called an “assignment of the benefit of creditors,” a measure generally considered as an alternative to formal bankruptcy proceedings.

The process includes a “realignment” of the brand’s portfolio of properties, but the “majority of properties will continue to serve our customers, some properties may leave the system, and new properties will be added,” Mrha said.

Founded in 2016, Domio operates apartment-hotels. It leases portions of apartment buildings — or entire properties — furnishes the units and rents them out to travelers.

But the company has struggled in recent months. In August, the Information reported that the startup would rent out its short-term apartments under pseudonyms via Airbnb. After the report, Airbnb suspended all of Domio’s accounts for violating its terms of service.

Domio and Airbnb have since settled the issue, and with listings from the former — now clearly marked as “hosted by Domio” — appearing on Airbnb once again. Airbnb did not immediately respond to a request for comment.

The latest report, also from the Information, said that Domio laid off the majority of its staff earlier this month after failing to raise $10 million in additional capital.

“Unfortunately, conditions precedent to close this round were not achieved,” the company reportedly wrote in a note to its investors. It noted cryptically that “there is a scenario where Domio is able to operate,” but offered no specifics.
Domio currently rents out around 1,000 spaces in Chicago, Miami, Nashville and New Orleans, according to its website. The portfolio maintained a 74 percent occupancy rate in October, Mrha said.

In his email, Mrha said Domio plans to open three new apartment-hotels in Miami, Puerto Rico, and Tulum, Mexico. He did not respond to follow-up questions on specifics related to the ongoing effort to revamp the company’s finances.

The company’s co-founders, CEO Jay Roberts and Chief Strategy Officer Adrian Lam, resigned from their posts and stepped down from the board of directors in September.






    Related Articles

    arrow_forward_ios
    News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)

    Real estate stocks hold gains even as market doesn’t

    Real estate stocks hold gains even as market doesn’t
    Before the pandemic, national tenants paid 94 percent of rent. (Getty)

    Retail rent collections rebound to 90%

    Retail rent collections rebound to 90%
    As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

    Silicon Valley exodus: Where’d everyone go?

    Silicon Valley exodus: Where’d everyone go?
    229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)

    What appraisal reductions mean for future losses on CMBS loans

    What appraisal reductions mean for future losses on CMBS loans
    David Barclay (Getty; iStock)

    David Barclay, British hotel titan, dies at 86

    David Barclay, British hotel titan, dies at 86
    Workers cite Covid-19 risks for not returning to office; fewer than half who return cite productivity (iStock)

    Survey reveals why employees stay home or return to work

    Survey reveals why employees stay home or return to work
    Sheldon Adelson and the Venetian in Las Vegas (Gettty)

    Casino magnate Sheldon Adelson dies at 87

    Casino magnate Sheldon Adelson dies at 87
    JLL CEO Christian Ulbrich, Trump International Hotel in Washington DC and Donald Trump (Getty; Trump Hotels)

    JLL backs out of selling Trump’s DC hotel

    JLL backs out of selling Trump’s DC hotel
    arrow_forward_ios

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

    Loading...