US: Locale, an Austin-based aparthotel brand has secured $2.5 million in seed round funding led by Amplo and Susa Ventures.
The raise is Locale’s first funding round since launching in Austin, Texas, in late 2016. Locale has since expanded to Houston and Nashville, now leasing and managing more than 150 furnished apartments for short and extended stays. With the new financing, the company will focus on enhancing its product through accommodation and technology upgrades, growing brand awareness and expanding into new markets.
Locale has planned expansions with developers of upscale Class A multifamily properties in San Francisco, Houston’s Texas Medical Center, Santa Monica, and Denver, which will be available for bookings in autumn 2019.
“What attracted me to Locale is how thoughtful they are in building the next generation of accommodations,” said Sheel Tyle, founder and CEO of Amplo. “Locale is redefining the short-term rental category by introducing a premium, boutique apartment hotel brand centred around well-designed, locally curated and hospitality-driven accommodations.”
Locale properties feature hotel quality linens, locally roasted coffee, smart appliances, contemporary furnishings, instant reservation confirmation, keyless entry with built-in security systems, and 24/7 guest service.
“We’re excited that our investors and partners share our vision for bringing a premium aparthotel brand to the market, something that delivers a consistently higher quality guest experience than what’s provided by the current group of short-term rental operators,” said Nitesh Gandhi, founder and CEO of Locale. “Locale is addressing the evolving needs and desires of today’s business and leisure traveler, who seeks intentionality in their travel experience. From an elevated in-room design to high quality product partners, we’re curating a unique experience that will elevate the Locale brand and bring much needed differentiation to this category of accommodations.”
Tthe company is committed to working with local governments and only operating within commercial and mixed-use zones. Locale partners directly with real estate developers, owners, and lenders to determine where Locale’s business model will work best for the building, its residents, the brand, and neighbourhood.
“Locale is best in class. We have worked with lots of different short-term rental operators and they are by far and away the most professional and effective,” said Brian Dinerstein, president, The Dinerstein Companies. “They have an owner’s mentality and are focused on adding long-term value to our properties.”
Locale has grown its team to more than 25 people, hiring talent from the hospitality and real estate industries. Recent senior hires include Keith Amaker, director of guest experience, formerly at the Four Seasons and TurnKey; Jim Hill, VP of sales, formerly at Hilton and TravelClick; Heather Haberkorn, director of revenue management, formerly at IHG, and Boyce Rigby, director of real estate, formerly at Stream Realty Partners and ARA.</p
