Your city most likely has one thing in common with other cities throughout the U.S. - cranes.
During last year's building boom, real estate developers opened close to 100,000 new apartment buildings a quarter, one of the highest rates since the mid-2000s real estate spike. And industry analysts expect that trend to continue throughout this year. However, while occupancy was at a whopping 95 percent for 2017, according to National Real Estate Investor, some experts anticipate occupancy to have a downward trend in 2018.
So, if buildings are continuing to be built and occupancy will slow, something's got to give, right?
That's where WhyHotel comes in.
WhyHotel, the D.C. startup that was incubated at Vornado Realty Trust, is an alternative lodging service that operates pop-up hotels in new multifamily luxury buildings. During the lease-up of a new building - the time period for a newly available property to attract tenants - WhyHotel runs 100+ room micro-hotels, turning a half-vacant building into luxury hotel.
Today, the startup announced that it has raised $3.94 million in seed funding. The round was led by VC firm Chamber Creek, with participation from Revolution’s Rise of the Rest Seed Fund, Mendacre, MetaProp, Working Lab Capital, Mitchell Schear, Vornado/Charles E. Smith (predecessor to JBG SMITH Properties) and other real estate executives.
“WhyHotel allows multifamily developers to de-risk the lease-up phase of brand new luxury apartments," said Chamber Creek founder Casey Berman in a statement. "This new revenue stream, amenity for residents, and guest offering is a paradigm shift for the multifamily industry."
In a statement, WhyHotel said that it will use the new capital to launch hotels in the pipeline, as well as bring on top talent for upcoming projects.
Along with seed fund, the startup also announced that it will be expanding to Baltimore with a 150+ unit pop-up hotel in the city's downtown/inner harbor.
“We are excited to host WhyHotel’s first pop-hotel in Baltimore," said Michael Darby, principal of Monument Realty. "This sophisticated hotel concept will be a favorable amenity for our residents, offering convenient and affordable accommodations for their friends and family. No other apartment community in Baltimore provides residents and guests with a like-home hotel experience.”
