Hotels by Day was introduced as a concept of booking any hotel room for a few hours or a day only. The customers can book rooms in the morning, mid-day, or in the evening for some hours and can pay only for the rest that is not applicable to their charges.
The customers can book their rooms by downloading their App on their smartphones. They can charge over $60 for a few hours and no other charges are applicable. They mainly target are those peoples who travel to different places during the day for their official or business work.
Hotels by Day at a glance
| Season | Season-08, Episode-17. |
| Business Idea | Booking Hotels for Few Hours. |
| Founders | Yannis Moati and Brain Dass. |
| Asked For | $750,000 for 10% of Equity. |
| Accepted Deal | $000,000 for 00% of Equity. |
| Sharks | No Sharks. |
| Business Idea | In Business. |
| Website | Hostels by Day |
Index:
Founder Story:
Hotels by Day was founded and developed by two young entrepreneurs and common friends named “Yannis Moati” and “Brain Dass”. They both have a keen interest in the hospitality and tourism industry and they both are working in this sector. They had observed that most people want rooms for getting fresh and relaxing for some time but they don’t want it for a whole day and night for which they pay. They think to solve this problem and invented their Hotels for Day App by collaborating with some most popular hotels in various parts of America.
The idea was mainly developed by Yannis Moati, who was born in Tunisia. He started his carrier in the tourism industry as a tour guide in Europe when he was a teenager. He later worked in various other international hotels and received various awards for his contribution to the Hotel industry.
Did Hotels by Day get a Deal on Shark Tank?
Hotels by Day was broadcasted on ABC’s famous reality show Shark Tank in Season 8 and Episode 17, they presented their business idea to Sharks and described the major problems that they are going to solve in the Hotel industry as various business professionals visits various cities in a day or week and they want a room in hotels for getting fresh and to relax only rather than for all day long, but unfortunately, they have to pay for whole day and night. Thus, to solve this problem they invented their App “Hotels by Day”.
This app allows its users to book a room in hotels for some hours and the rates are charged according to the duration they stay there. They don’t have to pay for a whole day and night instead, to pay only for that part where they actually want to pay. They showed working samples of their app and asked for an investment of $750,000 in exchange for their 10% of equity.
Sharks liked their idea and concept but, they are not satisfied with their valuation. They asked for their revenue figures. They explained it by giving an example that a customer getting rooms for six hours has to pay an amount of $90 and last month they have generated over $30,000 in revenue and they have also estimated their business growth to 20% every month. Currently, they have bookings of 12,000 per month and they are generating a secure revenue of $200,000 a year.
But Sharks didn’t impress by the valuation of their business as they are generating monthly revenue of $28,000 which was not enough to justify their valuation. Therefore, all Sharks backed themselves and they left without any deal.
What Happened to Hotels by Day after Shark Tank?
After the show, Hotels by Day received a huge jump in their bookings as they were not able to get any deal from Sharks but they run their own business very well as they collaborated with approximately 450 new hotels in different locations of America. They are featured in various business articles such as New York Times and many other newspapers.
Even before their Shark Tank debut, Hotels by Day demonstrated a forward-thinking approach by launching FlexBook. This innovative app and website offered a unique solution to travelers seeking flexibility in their hotel stays. By allowing users to extend their check-in or check-out times, FlexBook tapped into a growing demand for customized travel experiences.
A Significant Expansion
The company’s appearance on Shark Tank provided a significant boost, but their growth didn’t stop there. By 2018, Hotels by Day had partnered with an impressive 450 hotels, a 50% increase from their initial number. This expansion showcased their ability to attract new partnerships and meet the rising demand for their services.
Missed Opportunity for the Sharks?
While specific financial figures might be elusive, the company’s continued growth and expansion suggest that Hotels by Day has thrived since their Shark Tank appearance. The introduction of new offerings like Work Rooms, Meeting Rooms, Event Space, and Coworking Desks demonstrates their adaptability and commitment to providing comprehensive travel solutions.
Given the company’s success and the potential profitability of their business model, it’s reasonable to assume that the Sharks may have missed out on a significant investment opportunity. Hotels by Day’s ability to innovate and capitalize on market trends has likely contributed to their ongoing success.
Competitors of Hotels by Day
The idea and concept of booking hotels for short time are very new in the market and cannot be brought before, but they have to face competition in the open market from various other hotel booking websites, such as:
- Hotels Tonight,
- Stayful,
- Recharge Labs, etc.
Net Worth of Hotels by Day
Hotels by Day was initially valued at a valuation of $7.5 million during their Shark Tank appearance by their owner which is way more compared to their current business. But later, it has grown its business as its idea is very unique in the market. However, its current valuation is not available.
Is Hotels by Day Still in Business?
Yes, the company is still in business and it has expanded its business in various other parts of the Nation however it has not achieved its $7.5 Million valuation till now for which they asked for investments from Sharks.
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FAQs:
What is Hostels by Day?
Hotels by Day was introduced as a concept of booking any hotel room for a few hours or a day only. The customers can book rooms in the morning, mid-day, or in the evening for some hours and can pay only for the rest that is not applicable to their charges.
Who founded Hostels by Day?
Hotels by Day was founded and developed by two young entrepreneurs and common friends named “Yannis Moati” and “Brain Dass”. They both have a keen interest in the hospitality and tourism industry and they both are working in this sector.