Safety and trust are the priorities of Flex Hotel Space
SAN FRANCISCO — Of the $ 50 million in funding that Kasa Living Inc. has raised, $ 30 million in new Series B funding has been led by Ribbit Capital and $ 20 million in Series A funding has been led by FirstMark Capital less than a year ago. Participating investors also include RET Ventures, Zigg Capital, Allegion Ventures and BoxGroup.
Kasa’s technology turns vacant and underutilized real estate into flexible accommodation for travelers. Most recently, the company has entered into management agreements with multi-family and hotel property owners in 35 markets in 15 states, enabling its partners to unlock new sources of income and realize the full potential of their property.
“We see a generational opportunity to innovate in a besieged travel industry. Kasa aspires to create a global accommodation brand loved by customers, indispensable to real estate partners and desired by neighbors, ”said Roman Pedan, Founder and CEO of Kasa. “This increase allows us to significantly develop our technology team to fuel a flexible and distributed hospitality offering that fulfills our mission.”
The hospitality industry could potentially lose $ 75 billion over the next 12 months as nearly half of America’s hotels are on the verge of closing for good. Historic Martinique New York filed for Chapter 11 and the Omni Berkshire Place hotel closed after a race of nearly 95 years. In addition, the Palmer House Hilton in Chicago, which has 1,600 rooms, has been sued by lenders for delinquency.
For almost a year, Kasa has grown rapidly despite the headwinds in the industry. Kasa maintained occupancy rates of around 75% (more than double the hospitality industry average), expanded units under management by 50% and launched in five new cities. This increase in market share, combined with monthly revenues up 50% since December, characterized a rise in the valuation of Kasa as part of its latest round table.
“Our growing number of units means a need for flexibility in the world in uncertain times and the future is also uncertain,” Pedan told GlobeSt.com. “We work in partnership with large multi-family institutional owners to better manage vacations in properties, whether for days, months or longer. Long-term leases are a concern in cities with rising vacancies, such as New York and San Francisco, and we offer the opportunity to generate income in an otherwise scary time. “
Kasa plans to accelerate investments in proprietary technology, building on its existing line of products and systems that has enabled the company to manage units in different property sizes and locations. Despite historic lows in the hospitality industry, Kasa has kept customer experiences at affordable prices. Now, Kasa will redouble its efforts to streamline operations and minimize on-site overheads with features focused on community safety, customer support and the travel experience at all touch points.
“What Kasa customers see is just the tip of the iceberg. The enormous operational complexity behind the scenes is handled by Kasa’s technology platform, which allows them to seamlessly host a large, diverse and growing network of distributed hosting units in an efficient manner, ”said Nick Shalek , general partner at Ribbit Capital. “By defining a new software way to deliver high-quality hospitality, we see Kasa doing to hotels what Amazon Web Services has done to on-premises servers. “
In addition to creating a seamless experience for clients, Kasa also provides an end-to-end solution to its real estate partners.
“We selected Kasa as our short-term rental provider of choice after extensive research,” said Lela Cirjakovic, executive vice president of operations at Waterton, a national owner and operator of multi-family homes. “Kasa stood out for her constant interest in community and partnership. Their innovative process and technology help us provide a better experience for neighbors and guests, and ultimately a more harmonious community. “
Pedan says customers can book through Expedia, Airbnb, or Kasa.com. Kasa performs background checks, requires photo ID and selfie photo, and offers contactless check-in and lower density occupancy.
“Safety and trust are at the center of our concerns,” he told GlobeSt.com. “There are decibels and THC / nicotine sensors in every room. “