Germany-based digital hotel operator and technology developer NUMA Group, formerly known as COSI Group, has raised $45 million in growth capital in a new funding round to further grow its business. The company offers disruptively designed hotels for modern travelers. The funding round comes two months after another vertically integrated New York-based hotel brand, management and software platform provider House of Liferaised $60 million in a Series C funding to continue building its own cloud-based hotel management platform.
Founded only 3 years ago, the NUMA Group presents itself as Germany’s leading technology provider in the short-term rental sector. And indeed, the company appears to be highly successful, operating over 2,500 units so far in major European cities including Berlin, Munich, Rome, Milan, Madrid, Barcelona and Vienna.
NUMA partners with investors, property owners, developers and hotel operators to create innovative technology-based operator solutions. NUMA’s proprietary technology stack is said to increase profits by up to 40% for hotel operators through automated business processes, smart pricing and higher occupancy rates.
NUMA Group successfully expanded into Spain, Italy, Austria and the Czech Republic in 2021. According to the company, NUMA achieved 85% booking occupancy of its 2,500 units in Europe, a stark contrast with the industry-wide decline caused by the pandemic.
NUMA has outperformed the market average for traditional hotels by 230% of booking occupancy during the pandemic, according to benchmarking solution Fairmas. The new strategic business unit NUMA go, a technology franchise solution for hotels, also now works with a large number of hotel operators. NUMA Go is an all-in-one technology solution designed to significantly reduce costs and allow hoteliers to flexibly improve in the face of new market conditions.
NUMA Group’s new lead investor is DN Capital Group, a global technology investor that previously backed Auto1, HomeToGo and Shazam. The lead co-investor is Headline. Existing investors Cherry Ventures, Soravia, Kreos Capital, TruVenturo and Scope Hanson are also participating in the new $45 million oversubscribed funding round.
“Our clear goal is to establish NUMA as the dominant provider of technology and creative solutions for a whole new generation of hotels in Europe,” said Christian Gaiser, CEO and co-founder of NUMA Group. “NUMA has used the pandemic to prove the resilience of its business model. We achieved 500% revenue growth and 85% occupancy despite Corona using our NUMA concept and proprietary technology. »
“We will use the new capital to offer even more NUMA hotel rooms and rapidly expand our technological lead across Europe – we will also grow the NUMA Go business unit,” he said.
Numa shares similarities with a number of other startups that have positioned themselves in the market as hotel management and software development companies, focused on streamlining and automating boutique hotels and owned rental properties. investors, developers and hotel operators. These companies include companies based in the United States probewhich, like NUMA, markets itself as a leading next-generation hospitality company redefining the guest experience through technology and design, closed a previously announced business combination last month with Gores Metropoulos II, Inc., a special purpose acquisition company, and House of Life.
For its part, Life House raised in December $60 million in a Series C funding to continue building its own cloud-based hotel management platform that gives independent hotels of all sizes operational autonomy and optimized financial performance. According to reports, the company will also continue to invest in improving and growing its white-label management platform, which organically benefits from innovations in its software.
Founded in 2017, Life House began as an independent hotel brand and operator, using its own hotel management software. After significant investments in previous cycles, this software has become mature enough to be sold directly to hoteliers and operators who wish to take ownership of the on-site management of hotels.
Life House currently manages the operations of over 50 hotels in North America powered by its software platform which the company says has consistently increased its hotel profitability by nearly 200% and net revenue by more than 45%.
“We have always been on a mission to build operationally self-sufficient hotels by developing software that makes hotels extremely profitable and easy to operate,” said Founder and CEO, Rami Zeidan, who had seen the problem first-hand after a decade at some of the industry’s largest hotel operating and investment companies. “Having seen the results of our powerful software on our managed hotels, we are excited to increase our impact by sharing it more widely with other independent hotel owners who are underserved by the solutions that exist today. “
Life House’s all-in-one platform is designed to be a one-stop-shop for any independent hotel owner with any hotel size or level of expertise – from revenue management and pricing dynamics, financial reporting and accounting, complete management, branding and design. The company’s software platform leverages API-first products on the market in creating a comprehensive platform for essential business functions. Today, the company’s three core systems power 1) revenue management, 2) financial operations, and 3) real estate operations.
“The company is initially focused on small and medium-sized hotels where owners are particularly underserved, and which make up nearly half of the overall market, but intends to expand in due course.” Let’s see a world where we ship iPads to hotels so staff can easily learn and function independently within hours – and we’re not far off,” Zeidan said.