Sweet Inn Raises $22 Million for Serviced Vacation Rentals: Travel Startup Funding This Week

Credit: skift.com

Sweet Inn

A serviced apartment on the Plaza España Fira II in central Barcelona shows the kind of holiday lodging the startup Sweet Inn specializes in. Sweet Inn

Skift Take: Startups like Sweet Inn increasingly blur the lines between the hotel and Airbnb business models by offering hotel-style service in short-term rentals that they own and manage. We predict that it won't be long until a major hotel group tries the same trick.

— Sean O'Neill

Each week we round up travel startups that have recently received or announced funding. The total raised this week was $39 million.

>>Sweet Inn, which has apartments in Europe and Israel that it manages and provides hotel-style amenities for, has received a fund-raising round of $22 million in investment.

QUMRA Capital led the investment. Venture capital funds BRM, La Maison, and M.I.3 also participated in the round.

The French-Israeli start-up debuted three years ago. It now rents out 350 apartments in popular European and Israeli tourist destinations, such as Barcelona and Tel Aviv.

Unlike AccorHotels-owned serviced rental brand OneFineStay, this company leases the properties it rents out. Leasing enables more consistent quality control, says the startup.

While there are other players in serviced apartments, most of those focus on corporate extended stay residences. Sweet Inn is competing primarily in the leisure travel market.

Its 150 employees work to deliver hotel-style services, such as laundry and in-room breakfast. The company says it only chooses properties in buildings that have front-door security and amenities like storage rooms for stowing luggage.

The company doesn’t disclose revenue. It plans to use the funds to add yield-management software and to create a loyalty program, says chief executive Paul Besnainou.

The startup is not alone in trying the model.

In January, Spokane, Wash.-based startup Stay Alfred raised $15 million in a Series A for a similar concept.

On the face of it, the premise of Sweet Inn seems like the worst of hotels (such as having to pay fixed costs for upkeep on spaces that may sometimes go vacant) and the worst of short-term rentals (such as being at a disadvantage in relation to upscale hotels when it comes to having economies of scale in customer service).

But clearly, investors in Sweet Inn and Stay Alfred disagree.

>>Tiqets, an Amsterdam-based travel tech startup, has landed a $17 million investment round. HPE Growth Capital led the funding round.

As we reported earlier this week, this Dutch startup is growing by focusing on the problem of mobile ticketing for attractions like museums and solving it with a product that it says requires almost no technical savvy from museums and other attraction operators.

Check out our previous startup funding roundups, here.

Top Stories

Long-Delayed Baha Mar Resort Is Finally Open, But Atlantis Isn’t Worried

Well, that only took a few years. It'll be interesting to see how tourism to the Bahamas changes now that the long-beleaguered mega resort has finally opened. -Deanna Ting
  • 18 hours ago
  • 16

Travel Habits of Americans: 42 Percent Aren’t Taking a Vacation This Summer

Unless there's a flood of last-minute vacation planners who will book trips in the coming days, weeks or months, many U.S. travelers are saying that they're hunkering down for another summer of little to no time away from the office. -Dan Peltier
  • 2 days ago
  • 14

What Ctrip Looks For When Buying Other Companies

Zhou's comments point to more deals for companies outside China, similar to the one for Skyscanner, and with plenty of money to spend it looks like it could be a very busy few years. -Patrick Whyte
  • 2 days ago
  • 12

Wellness Executives Question Hotel Chains’ Capabilities in the Sector

Everyone in hospitality, it seems, is focusing on more wellness offerings, whether through mergers and acquisitions, partnerships, or enhanced programming — but what do the wellness vets think? Does this trend have staying power or is it just a fad? -Deanna Ting
  • 2 days ago
  • 12

Air Canada Reverses Course, Leads the Charge to Bring Loyalty Back In-House

There was a trend over the last few years for airlines to try to spin off their loyalty programs into ... Read More
  • 2 days ago
  • 11
farawayyachtingcharters - Easy Branches
botoxfillerveintheraphyinphuket - Easy Branches

Latest in Travel

Air-Traffic Control Privatization Would Increase U.S. Budget Deficits

Donald Trump is not the most popular guy now. But let's not hit the administration too hard on this. Yes, privatization will increase the deficit. But it may make air travel more efficient than it it is today. Canada adopted this model years ago, and it has worked well. -Brian Sumers
  • 38 minutes ago

Expedia Is Now Selling Hotel Rooms in Cuba

"Potential" is the key word here, at least until the market is better developed — especially outside of Havana. -Sarah Enelow
  • 3 hours ago

10 Seafood Facts That Will Change How You Eat Fish Forever

Yes, some fish contain mercury and yes, some of the rumors about farmed fish are true, but we got the facts on seafood so you can eat this superfood worry-free.
  • 4 hours ago

Brand USA Faces Extinction Under Trump’s Proposed Budget

Congress will play around with Trump's budget and nothing is set in stone. But Brand USA's proposed demise shouldn't come as a surprise from a president who has spent much of his first four months in office imposing anti-tourism policies. -Dan Peltier
  • 6 hours ago

5 Adventurous Things to Do in Provincetown, Massachusetts

Join Vagabondish on Twitter and Facebook. Few places along the New England coastline are more quaint, fun, and adventurous than Provincetown, Massachusetts. The post 5 Adventurous Things to Do in Provincetown, Massachusetts appeared first on Vagabondish.
  • 6 hours ago

3 Reasons Basic Business Class May Be the Next Great Idea for Flying

A stripped down business class fare could be an easy way for airlines to monetize inventory that would be given away for free. -Colin Nagy
  • 10 hours ago

What the One Percenter Travelers Really Want From Tourism

The 1% are looking for the same things from travel — experiences and bragging rights. They just have the means to take it up a few notches beyond the other 99%. -Laura Powell
  • 10 hours ago

Retail Brands Target Chinese Travelers on Mobile Before They Leave Home

Why wait to market to consumers when they arrive abroad as opposed to targeting them directly via efficient platforms before they ever leave town. -Jason Clampet
  • 10 hours ago

New Research Report: The State of Loyalty in Hospitality 2017

For today's hospitality brands, loyalty programs are as much about repeat customers as they are about controlling distribution costs. Often times that means strategy at the property level, rather then at the brand level. -Luke Bujarski
  • 10 hours ago

Interview: What’s in Store for Luxury Cruising

Cruise lines have the luxury of going in and out of nearly any port they choose, making it easier for them to respond to geopolitical changes as well as changing consumer tastes. -Laura Powell
  • 10 hours ago

What if we told you that your foundation can make you look younger?

Now that you know your make-up comes with superpowers, you may decide to ditch all your anti-ageing skincare, but hold on. The most important beauty steps are the ones you take before you actually put your face on. If you have uncared-for skin, no amount of make-up will be able to give you the youthful […] The post What if we told you that your foundation can make you look younger? appeared first on VOGUE India.
  • 11 hours ago

Summer TV Guide: 7 shows you won’t want to miss

In the past, the summer TV landscape has typically been, well, bleak. During those lazy, hazy months, viewers were previously left with a choice between watching competitive reality shows about ninjas, or binging on a slew of reruns from fall and spring’s biggest hits. But now that we’re living in the era of peak TV, […] The post Summer TV Guide: 7 shows you won’t want to miss appeared first on VOGUE India.
  • 11 hours ago