AUSTIN, Texas--(BUSINESS WIRE)--Locale, a leading upscale aparthotel brand, announced today that it has raised $11 million in Series A funding. The round was led by Amplo Ventures, with participation from Susa Ventures, Malkin Holdings, Rogue Insight Capital and Metropolis Capital Partners, bringing the total funding to date for Locale to $14 million.
Founded in 2016, the company has grown rapidly, transforming hundreds of apartments into high quality accommodations for business, leisure and extended stay travelers. Leading with design and technology, Locale has crafted a best-in-class guest experience while operating more efficiently and cost-effectively than traditional hotel and vacation rental managers.
Locale operates in major markets across the U.S., including Austin, Houston, Dallas, San Francisco, Nashville and Minneapolis, and employs over 30 full-time team members. Despite limited capital investment to date, revenue has grown 200% year-over-year, while guest satisfaction scores remain amongst the highest in the lodging industry.
The new funding will be used to further invest in digital product innovation, enhanced in-room offerings and executive-level hiring. It will also enable Locale to move forward with its pipeline of projects in markets like Denver, Nashville and Charleston, providing guests with a fully branded and curated end-to-end experience rivaling the best upscale hotels.
“We first decided to back Locale when we realized how thoughtful they are in building the next generation of accommodations for travelers,” said Sheel Tyle, founder and CEO of Amplo, the lead investor in the latest round. “We are now increasing our commitment to Locale as it continues to redefine the short-term rental category by introducing a premium apartment hotel brand centered around quality in-room products, intentional design, local curation and most importantly, a superior hospitality-driven experience.”
The founder and CEO of Locale, Nitesh Gandhi, established the company after spending many years in the hotel and vacation rental industry. It allowed him to become intimately familiar with how to build a successful and beloved brand in this new category. With Locale, he has created an upscale aparthotel collection that has the goal of bringing intentionality to every element of the guest experience, elevating it with thoughtfully curated products, amenities, design and service. The contemporary aesthetics of the properties and tech-forward experience appeal to a variety of guests, from families, to millennial business travelers and larger groups. Locale’s business model also provides many benefits to real estate owners and developers, including faster lease-ups, less vacancy, shared services and operations, and improved resident perks. This has enabled the company to successfully partner with multifamily groups like Greystar, The Dinerstein Companies, and AMLI on multiple projects across the country.
“This year has been an exciting one of expansion for Locale—from the number of cities which we are located to the number of guests we’ve served,” said Gandhi. “It’s been an important stepping stone in achieving our ambition to create the leading modern apartment hotel brand. This latest round of funding, together with our invaluable real estate and brand partnerships, will help Locale’s continued growth, which include a number of full-building deals currently in development that will allow travelers to experience Locale’s artfully curated approach to hospitality in a complete environment.”
Locale is creating the modern apartment hotel with thoughtfully designed, upscale accommodations for business, leisure, and extended stay travel. Locale partners with owners and developers of high-end, urban apartment buildings in the best neighborhoods to offer its guests the amenities of an upscale hotel with the space, privacy and comfort of residential living. The company is headquartered in Austin and currently operates in seven cities across the U.S., including Nashville, Minneapolis, and San Francisco. For more information, visit Locale.com and follow the brand on Facebook and Instagram.
Amplo is a global venture capital firm helping build companies that matter. Amplo portfolio companies include Robinhood, Andela and Two Chairs.
About Malkin Holdings
Since 1934, Malkin Holdings has developed residential properties and has long been a leader in real estate syndication, offering direct ownership of income property to individual investors.
About Susa Ventures
Susa Ventures is an early stage technology fund investing in entrepreneurs building defensible products, technologies and tools that create, capture, distribute and leverage proprietary and unique data. For many of our investments, data is an enabling platform as well as a monetization engine.
About Rogue Insight Capital
Toronto-based Rogue Insight Capital Ltd. is an angel investment firm that provides forward-thinking companies with strategy, direction, capital and an extensive network. It is a subsidiary of the Easton’s Group / Gupta Group, Canada's largest private hotel developer.
About Metropolis Capital Partners
Metropolis Capital Partners specializes in providing debt and equity solutions for commercial real estate developments/acquisitions.