Details
1 | $12M+ in gross bookings revenue to date. |
2 | 50% guests are repeat users. |
3 | 1000+ hotels signed, expecting 75% growth in 2020. |
4 | 200K+ bookings. |
5 | Featured on Shark Tank. |
6 | Sells all idle space at a hotel, from dayrooms to conferences, spa, gym, pool passes, FB and events. |
7 | CEO has 20 years of experience in hospitality. |
Today we live in an on-demand, on-the-move experiential economy, and hotels have protocols and technologies adopted from decades past. Thanks to our company, we help hotels transit to a more dynamic way of monetizing inventory. We're very excited by the trend we're witnessing in building a hospitality industry more flexible than ever!
In the middle of a big city, it's nice to have a resting place all to yourself. Our customers book day-stays for early flight arrivals, to work in privacy, refresh from jetlag, sleep during a long layover, and to use hotel amenities, such as pool passes, gym & spa sessions.
With more than 1000 hotel partners, our deal flow is predominantly inbound. To hear from our CEO himself on how things have developed, listen to our episode on the podcast "Lodging Leaders."
Dear Investors,
We're now in our fifth year and stronger than ever!
This quarter marks our fifth year in operation. Coincidentally, as if to mark our anniversary, our Shark Tank episode (#817) also aired for the fourth time that period — and while we haven’t broken the internet yet, we're surely putting in the hard work to turn this 5-year-old company into an overnight success!
Since we last raised on WeFunder:
- HotelsByDay acquired amenity-focused startup DayAxe
- YOY MRR increased by 55% organically
- YOY hotel onboards increased by 38%
- YOY loyal guests sign-ups increased by 120%
- Acquired a membership program with recurrent revenue
- Launched & strengthened Israel market - Boosted tech to process check-ins as early as 1AM and check-outs as late as 11PM (a sector innovation)
- Turned red 2019 P&L, back to black
This year we plan to:
- Raise $2.5M (of which $400,000 on WeFunder) to accelerate our growth from $4.5M GBV to $127M GBV by year 5.
- Engineer centralized portal for hotels to monetize all unused spaces: from day rooms to conferences, coworking, amenities, spas, events.
- Grow to become the world's first B2C one-stop shop for all day spaces (the Expedia of day-spaces & events)
Last time you read about us, we were operating in one sector: day-rooms. Now we've broadened our scope and operate in four sectors: day-rooms, cabanas, spas, and pool passes. The vision of becoming the leading booking platform for all on-demand daytime experiences is becoming a reality: You have a few hours available... What would you book today?
So do not wait! Participate! And together, we will be the proverbial village that raises a startup.
Thank you for participating in this round & go HotelsByDay!
Sincerely,
Yannis Moati
CEO & Founder
HotelsByDay has financial statements ending December 31 2018. Our cash in hand is $49,679.86, as of March 2019. Over the three months prior, revenues averaged $107,995.59/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $108,737.66/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Historically, hotels have been unwilling to offer rooms just for the day, sticking instead to rigid check-in and -out times. We created HotelsByDay to make it easy for customers to find and book single day stays. We designed the platform to make it easy for hoteliers to add this new revenue stream and protocol to their current booking system. Intuitively, it makes sense. Financially, it does too – we've brought in $8M+ in gross booking revenues.
Booking hotel rooms just for the day is a win-win situation for all parties: hotel owners get 50% net revenue of a day room when it would otherwise be empty, guests have flexible options to relax during the day, and we make a 15% commission on each room. We're the day room leaders in North America; we plan to bring our easy-to-use platform to the millions of travelers and hoteliers across the globe.
Milestones
Hospitality Innovated, LLC was incorporated in the State of New York in July 2014.
Since then, we have:
- 40k ave. monthly unique visitors
Historical Results of Operations
Liquidity & Capital Resources
To-date, the company has been financed with $652,000 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Hospitality Innovated, LLC cash in hand is $49,679.86, as of March 2019. Over the last three months, revenues have averaged $107,995.59/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $108,737.66/month, for an average burn rate of $742.07 per month. Our intent is to be profitable in 12 months.
- one time frivolous lawsuit settlement for $10k
- imminent opening of Israel market with over 17 properties
- signed 45 new hotels in Canada
- stabilized our cost of acquisition rate at $6.50 per new guest (revenue is $13.64)
- increased the lifetime value of an average guest from $22.86 in 2017 to $23.19 in 2018
- clocked a 2018 growth of 35% YOY
- registering about 3 new loyalty sign-ups per day since August launch
- achieved a 6.4% conversion rate from our website
- launched a consistent email newsletter campaign
We expect our revenues to grow by 50% in the next 6 months thanks to the addition of night stays + day stays
1 | The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. |
2 | A lack of funding to scale our business may be detrimental to progress. We are relying on investments to scale our company to greater profitability. |
3 | Antiquated hospitality technology makes it very difficult for us to integrate or persuade businesses to use our technology. |
4 | Competition with other larger travel companies could limit our expansion. Expedia is an example of a competitor. |
5 | A failure to maintain our current customer base or to attract new customers, would negatively affect our business. |
6 | Loss of team talent due to poor funding. We are reliant on a small management team and a loss to any of these key members along with a failure to attract new talent may be problematic for our business. |
7 | In an economic recession, people tend to spend less money on luxuries, including hotels. In the case of an economic recession, this could cause a downward trajectory to our revenues. |
8 | If a sex ring is caught using our app, the publicity could be damaging to our reputation and brand. |
9 | We could be subject to a breach of our technology which would result in a loss of privacy for our customers. |
10 | Tony Cheung and Eddy Kaljic are part-time officers, which may result in diminished time being committed to the company. |
Director | Occupation | Joined |
---|
Officer | Title | Joined |
---|---|---|
Yannis Moati | CEO | 2014 |
Eddy Kaljic | Director of Sales | 2016 |
Tony Cheung | Principal Accounting Officer | 2014 |
Holder | Securities Held | Voting Power |
---|---|---|
Yannis Moati | 88,667 Units | 33.3% |
Date | Amount | Security |
---|---|---|
01/2014 | $80,000 | Priced Round |
12/2018 | $102,051 | SAFE |
08/2014 | $550,000 | Priced Round |
$50,000 | 30% Technology improvements which will include improving the UI/UX of the app.
20% Building out the loyalty program.
30% Adapting our website and apps to scale internationally with translations and customizations.
15% Part time data scientist
5% Wefunder Intermediary fee |
$107,000 | 25% Technology improvements which will include improving the UI/UX of the app.
10% Building out the loyalty program.
15% Allowing website and apps to scale internationally with translations and customizations.
18% Part time data scientist
27% Connectivity to hospitality ecosystems (demand & supply)
5% Wefunder Intermediary fee |
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Units | 266,666.67 | 266,666.67 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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