Late final yr, The Data reported that Airbnb was going to take a position round $75 million in AJJK-owned Lyric (previously Parallel), a San Francisco service that leases residence models and flooring, refurbishes them, and transforms them into hotel-like properties for enterprise vacationers. It will appear its sources had been well-informed: Lyric in the present day confirmed that it’s raised $150 million in sequence B financing and debt financing led by none aside from Airbnb, with participation from a slew of buyers together with Tishman Speyer, RXR Realty, Apparent Ventures, SineWave, former Twitter CEO Dick Costolo and former Twitter COO Adam Bain, Starwood Capital Group cofounder and chairman Barry Sternlicht, NEA, SignalFire, FifthWall, and Tusk Ventures.
The contemporary capital brings Lyric’s whole raised to $175 million, following a $15.5 million sequence A spherical in February 2018, and will likely be used to broaden its operations and assist the buildout of its know-how and information platform, stated CEO and cofounder Andrew Kitchell. “We’re extremely excited to have Airbnb, the corporate that reinvented how we journey, together with famend actual property companions and elite buyers believing in us at Lyric to create a brand new class of lodging for the fashionable traveler.”
Lyric, which launched in 2015, caters its areas — which it calls Inventive Suites — to professionals looking for lodging for between 2 and 200 days on Airbnb, HomeAway, Reserving.com, and different hospitality marketplaces. It companions with native landlords and companies (together with 20 of the Nationwide Multifamily Housing Council’s high 50 builders) to construct out properties and curate artwork, music, and low packages, and it facilitates web site administration by a dashboard and backend that secures every location, manages income, handles visitor registration, and automates background checks and digital entry.
All of Lyric’s suites embody a Casper mattress, Wi-Fi, linked TVs, and keyless entry, along with a completely stocked kitchen, a washer and dryer, and entry to health facilities, swimming pools, and enterprise lounges.
“When individuals seek for lovely areas or experiences, what they’re actually on the lookout for is a connection to a area people,” Kitchell stated. “From the music and paintings we hand-select, to the wallpaper we curate, our job is to be a storyteller for that group or constructing, and to assist company really feel like they’re part of it.”
Up to now, Lyric — which operates about 1,000 models — has caught to cities the place native governments are amenable to short-term rental companies, like Chicago, Pittsburgh, Dallas, Houston, Minneapolis, New Orleans, and Philadelphia. And it’s labored with well-known multifamily landlords corresponding to Hines, Bozzuto Group, and Camden Property Belief.
Lyric’s removed from the one startup within the gentle model rental enterprise, although. Rivals embody WhyHotel and YouRent.com, in addition to Sonder, a boutique rental startup that lately secured $85 million in enterprise capital and which has hosted greater than 200,000 company throughout 2,200 leased and manged models in 11 cities. Others embody Keep Alfred, OneFineStay, RedAwning, and Oasis Assortment, the final of which has raised over $35 million and runs about 2,500 models.
Even big-name manufacturers like Marriott are experimenting with dwelling sharing. The Bethesda, Maryland firm’s rental administration subbrand Hostmaker provides worldwide vacationers entry to greater than 200 houses in London, all of which it says had been chosen for his or her “consistency” and “high quality.”
For its half, Airbnb in 2016 launched Pleasant Buildings Program, a program beneath which landlords put rental models on its platform. As of final August, there have been 13,000 listings.
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