Apartment-Style Provider Jurny Inks Expansion Deals One Month After Launch

While some apartment-style accommodation providers have been hit hard during the pandemic with the need to close locations and lay off staff or go out of business, new-entrant Jurny decided the timing was right to come out of stealth mode in June, and in July managed to ink new deals that will expand the company internationally.

Operating for about two years already, Jurny made its launch official last month with the announcement of $2.75 million raised earlier this year, led by Okapi Venture Capital and Mucker Capital. It currently operates about 160 units in Dallas, Miami and Nashville, and this month signed deals to increase its presence in the latter two cities, as well as expand to London and Tel Aviv, which will bring the units available to 200, but it has another 2,500 in the company's pipeline, including a site in Los Angeles, co-founder and president David Phillips told BTN.

"The timeframe [of bringing the units online] depends on the deal. Some we will close agreements on in the next two to three weeks and will go live anywhere from 90 days to six months to a year," Phillips said. "We're working on a [letter of intent] now for 150 units in downtown Los Angeles, but that will be a remodel into a Jurny hotel, so that will take about a year."

It also zones a majority of its units as hotels, so it is compliant with local laws and able to offer nightly rates. The current average length of stay is three nights, Phillips said. 

Prior to Covid-19 wreaking havoc on the accommodation industry, Jurny's guest breakdown was 45 percent each for business and leisure, and 10 percent extended stay. During the pandemic, those numbers shifted to 35 percent leisure, 25 percent business and 40 percent extended stay, Philips confirmed. 

Another reason it emerged from stealth mode was because Phillips said the company has been able to drive profits for its owners even during the pandemic. "We have 100 percent retention of all owners," he said, adding that the company is about 30 percent above competing hotels in occupancy, with "pick-ups in July and August, average daily rates improving, occupancies improving, which is a good sign."

The business model for Jurny is not unlike others in the space: to provide a highly designed product that uses technology to automate the guest experience for a completely contactless and on-demand stay. One way it differs, Phillips said, is that the company signs management agreements as opposed to master leases. 

"There was the temptation to grow quickly and very early, but we knew if we focused on doing things no one else was doing, the opportunity in the long run was to have a massive competitive advantage and create long-term value … [which] will work only if we are the management company and align interests with the owners," he said. "It might be a little bit of an uphill battle in the beginning to sign management agreements instead of master leases, but once we start executing and delivering, adding value and improving the bottom line, they'll want to grow with us."

Typically, in master leases, the owners do not have any involvement in the operations of the leased units. In management company leases, the owner and operator work more closely together. In the end, it will depend on the details of the contract, and there are varying scenarios as to which provides more risk and return for the parties involved.

Another differentiator, Phillips said, is that everything contactless. "We've been contactless for two years, and our listings and reviews reflect that," he said. "We're not turning contactless now because of what is going on. We've always held to that standard because that is what we believe people want anyway."

In addition, everything is on-demand. While Jurny units are available on the major online travel agency sites, the company also released its app last month, allowing guests to book directly, as well as use it for all facets of their stay. "You build your [Jurny] profile once, and you have instant access and booking capability for any Jurny anywhere in the world as a user of the app," Phillips said. 

Further to booking, guests can check in and check out through the app, use their smartphone as their key, they can share an access code with other guests on the reservation, they can contact customer service through the app, they can request on-demand cleaning—which follows a 150-point Centers for Disease Control and Prevention-compliant checklist—and they can control the thermostat prior to their arrival.

"That ease of use sets us apart," Phillips added.

Jurny isn't currently working with any specific corporations, Phillips said, but added that as he and his partner build the team and company further, they'll reach out to corporate travel companies. It also is targeting Millennials and Generation Z travelers, "because those are the people who appreciate the automation and empowerment the most," Phillips said, explaining that they are the consumers who led the need for on-demand streaming, for food delivery, for drivers, "and they want their on-demand hospitality as well."

Still, Phillips used himself and his partner as typical business travelers: They always use a two-bedroom Jurny unit with separate bedrooms and bathrooms but a common living area where they can work "and be more productive than ever," he said. "We're businesspeople, and I think it'll be a great solution for them, especially as travel restrictions lift."