NEW YORK—Technology-powered apartment-hotel brand Domio has raised $100 million in Series B funding (an even combination of equity and debt). The equity round was led by GGV Capital in August 2019, with participation from additional investors, including Eldridge Industries, 3L Capital, Cain International, Tribeca Venture Partners, Softbank NY, Tenaya Capital and Upper90. The lead debt investor was Upper90, a New York-based credit fund specializing in providing growth capital.
Launched three years ago in August 2016, Domio operates in 12 U.S. markets, most recently expanding its footprint into key flagship cities, including Miami, Philadelphia and Phoenix. Domio’s apartment-hotel rooms are five times larger than the average size of U.S. hotel rooms, making them perfect for groups, families and business travelers, and cost about 25% less than traditional hotels, according to the company.
“We are thrilled to partner with GGV Capital and grow our already successful relationship with Upper90 to become the most delightful hospitality brand in the world,” said Jay Roberts, CEO and co-founder of Domio. “Our business model is unique: to give guests more space at a fraction of the price than traditional hotels and with the consistency they don’t usually get from homesharing. Domio is changing the way people travel with uncompromised service and the most attractive rates.”
This latest round of funding marks a major milestone for the brand. Funds from this investment will allow Domio to continue growing its product offering in markets beyond the U.S. The funds will be used for national and international expansion as well as talent recruitment.
“Jay has built an extremely talented team to capitalize on the global shift in short-term travel and consumer demand for branded experiences. Domio has already seen incredible growth, and we are excited about the company’s opportunity to scale to new markets,” said Hans Tung, managing partner, GGV Capital, who also joined the Domio board of directors as part of the transaction.
“Upper90 is excited to grow its partnership with Domio. Over the past year and a half since making our first investment we have watched the company successfully expand across the U.S., creating a new asset class in the share economy space,” said Billy Libby, managing partner, Upper90. “The unique mix of talent that Jay has brought together gives Domio the ability to underwrite real estate, manage properties at scale and develop a differentiated brand for group travel.”
Domio properties are located in trendy and prime downtown neighborhoods, configured as studios or multi-bedrooms, and offer amenities and services designed to appeal to the next generation of travelers. From keyless entry to fully stocked kitchens, guests have access to complimentary WiFi internet and 24/7 concierge and customer relations via text. Interiors offer a shoppable experience with custom-designed wallpaper, vibrant artwork, upgraded towels, linens and bedding, and furniture conceived by the in-house design team, which also create Domio’s branded swag, art and vibe.