Pop-Up Hotel Startup Raises $20 Million From Investors
The company was founded by Jason Fudin. Prior to this role, he worked as vice president of strategic initiatives at Vornado Reality Trust.
WhyHotel seeks to fill empty rooms of apartment building while it is being leased. Essentially, a temporary hotel will be established in apartment buildings that is trying to fill its rooms with tenants. The company seeks to lower the costs that landlords incur during the 18-24 months that they try to accrue tenants as rooms sit empty.
Additionally, WhyHotel never leases out the rooms because they are a temporary hotel. Instead they partner with landlords and share revenue with them. Costs are further decreased with a temporary décor strategy that is implemented in every room. Hospitality is prioritized as well. There is 24 hour on-call staff, seven days a week in WhyHotel’s temporary establishments.
Overall, the startup has raised $35 million in funding. The company itself, is based in Washington, DC and is planning to expand to other cities. Those cities include Houston, Orlando and Atlanta.
Fudin also asserts that the temporary hotel is an effective way at gaining permanent tenants as the building transitions into an apartment building.