New York-based Life House Raises USD 30 Million in Series B

New York-based Life House Raises USD 30 Million in Series B

Since its launch, the platform has been driving a 30 to 40 percent increase in profits for hotel owners without having to rebrand or renovate. The company has also built several proprietary software applications, including an automated, algorithmic and machine-learning driven pricing system, automated financial accounting, and reporting

Fremont, CA: Tech hotel brand Life House raised USD 30 million in a Series B funding round led by travel-tech investment firm Thayer Ventures, with participation from Tiger Global, JLL Spark, and Sound Ventures and the company's prior investors, Global Founders Capital, Comcast Ventures and Trinity Ventures. Strategic partners David Hamamoto, former chair of Morgans Hotel Group, and Jim Ketai, founder of Bedrock Detroit, also participated in the round.

"We use complex proprietary software to make hotels run more seamlessly and reduce the costs of operating them," said founder and CEO Rami Zeidan. "That allows us to build beautiful lifestyle boutique hotels and make them more accessibly priced to travelers." After working for nearly a decade across different sectors in the hotel industry, Lebanese-American Zeidan started Life House in 2017. The turning point for the company was in 2018 when it launched two products; an accessibly priced 4-star hotel brand called Life House and a white-labeled software-driven management platform.

Since its launch, the platform has been driving a 30 to 40 percent increase in profits for hotel owners without having to rebrand or renovate. The company has also built several proprietary software applications, including an automated, algorithmic and machine-learning driven pricing system, automated financial accounting, and reporting.

"If you come into this market of small hotels and say there's a huge opportunity to capture demand, and we have the brand to do that, and we've got this end-to-end, fully integrated tech stack that, all things being equal, will deliver two times the net operating income that you'd get from a traditional model. I think there’s going to be a lot of owners, either new investors who are buying small hotels or owners who have existing hotels, who will be interested in following through on that conversation," said Thayer Ventures managing partner Chris Hemmeter.

Currently, Life House manages five hotels, two under the Life House brand, and is expected to add another ten branded properties by this summer, and 25 by early next year. According to the company, its technologies deliver a 40 percent increase in revenue and as much as a 45 percent decrease in operating costs, while also achieving 65 percent of bookings directly on its website.

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