Pop-Up Hotels To Open Nationwide Following Funding Round

WASHINGTON, DC–WhyHotel, a startup originally incubated in Vornado Realty, which operates pop-up hotels in newly-built, luxury apartment buildings, has secured $3.9 million in seed funding in a round led by Camber Creek, with participation from Revolution’s Rise of the Rest Seed Fund, Mendacre, MetaProp, Vornado/Charles E. Smith, Working Lab Capital, Mitchell Schear, and other real estate executives. Camber Creek’s investment portfolio includes other real estate technology companies such as Latch, VTS, Measurabl, and Bowery.

WhyHotel will use the funds to launch hotels in its pipeline as well as hire people for upcoming projects across major US cities. The model debuted locally at The Bartlett last year and with the new funding round, WhyHotel now is launching another pop-up venture in Baltimore’s Downtown/Inner Harbor area in a new Monument Realty high-rise apartment. The 150+ unit property is located at 225 North Calvert St.

It will be the company’s second pop-up hotel that it has launched. It is planning to open approximately five to six additional pop-up hotels this year.

The model works for multifamily developers because it allows them to de-risk the lease up phase of new apartments and have an additional revenue stream, explains Casey Berman, founder and managing Director of Camber Creek. WhyHotel takes units that have yet to be leased when a large high-rise apartment building delivers and adds a hospitality service to turn the building into a temporary, 24/7 on-site staffed hotel. WhyHotel gradually winds down its footprint as units are leased to long-term residents, exiting once all units are leased.