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Lodging

Pop-Up Lodging Company WhyHotel Secures $20 Million in Series B Funding

By Donna M. Airoldi / December 11, 2019 / Contact Reporter
Business Travel News on X

WhyHotel has secured more than $20 million in a Series B funding round led by Harbert Growth Partners, the company announced. The company operates pop-up hotels, typically 100 to 250 rooms, in newly built, luxury apartment buildings as a way for developers to use units during the lease-up period. The funds will be used to expand the company's footprint—it currently operates only in Seattle and Arlington and Tysons in Virginia—as well as increase its product and service offerings to guests and add staff. It also will inject funds into the real estate development division of the company, Hospitality Living, with the goal of delivering its first development in 2022. About 50 percent of the company's guests are business and extended-stay travelers, 30 percent are groups and families, and 20 percent are leisure. "WhyHotel has direct relationships with numerous companies and institutions," said co-founder and CEO Jason Fudin. "Some business guests stay for months at a time while working on projects and others come back every Monday through Thursday for consulting."

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