Qstay Hospitality Technologies (“Qstay” or the “Company”), a Dubai International Financial Centre (DIFC) based next-generation hospitality company that is redefining the guest experience, today announced that they have recently closed on a seed round of $6.5 million. Funding was a mix of debt and equity.
Qstay was officially launched in 2020 and was co-founded by a long-time UAE resident Artur Khayrullin, CO-CEO; Ukrainian born Ekaterina Rogozhina, CCO; Ukrainian American Alec Fesenko, CO-CEO and his wife Natalya Fesenko, the initial investor. Since its founding, Qstay has executed against its mission to transform the hospitality industry through modern, technology-powered service and inspiring, thoughtfully designed accommodations, combined into one seamlessly managed experience. Qstay currently operates close to 200 properties in the UAE and Europe, and over 200 additional units are signed.
As pioneers in the digital and contactless guest experience in Dubai, Qstay have been providing the kind of stays that most guests are now seeking. Whether for long, medium or short-term, the self-contained spaces and self-service solutions — including digital app-based check-in, keyless entry, professional cleaning, hotel style amenities and services and no lines or crowded lobbies — are the foundation of what guests now demand from a hospitality company. Fully-equipped kitchens, large 4K Netflix enabled smart TVs, extra living space, and private laundry are standard in all Qstay spaces. As an added bonus Qstay provides digital app-based access to gyms, spas, pools and beaches for its guests staying in beachfront properties.
That is why Qstay occupancy rate is now consistently above 80% and REVPAR is an outstanding $182, which is well above its competitors. Qstay projects to be net income positive by the year end. Company’s revenue has been growing at rate of over 100% quarter over quarter and company currently projecting a $20 million revenue run rate by year’s end, which it says is “8 times that of last year.” Qstay expects its portfolio to grow to over 600 units and to achieve revenue of $50 million in 2023.
Qstay founder and CO-CEO Artur Khayrullin, says the capital will be used to “accelerate the amazing growth we’ve seen so far,” and the concept plans to expand to at least five more cities around the world in the next 12 months.
“Driven by QSTAY’s differentiated digital service model, the Company can reduce operating costs by as much as 50% compared to traditional hotels. Through innovative technology, additional digital services such as mobile-based access to the facilities of top beach resorts and thoughtfully designed accommodations, QSTAY is revolutionizing the hospitality industry,” says Artur Khayrullin. “With one of a kind modernized service, our guests experience an uncompromising quality with inspiring design at a price point that democratizes access to an extraordinary hospitality experience.”
Qstay works directly with property owners to lease, manage and operate spaces, providing guests with exceptionally designed accommodations at affordable prices on a nightly, weekly or monthly basis.
The company also offers text-enabled around-the-clock concierge service, and confirms that while it doesn’t own any of its units, all of them “are directly leased and managed by Qstay”.
The company leases large groups of units in the top locations, upgrades and furnishes them to the consistent luxury standard and supports them with the extensive luxury hotel-like services and amenities such as bathrobes, slippers, luxury toiletries, while providing digital check-in, keyless entry and free app-based access to the facilities of the nearby 5-star beach resorts. Qstay operates as a virtual hotel brand and customers can book via Qstay’s site or through online travel agencies such as Airbnb.
“Our raise underscores the strength of the business and the rapid shift taking place within the hospitality industry due to technological innovations. Our vision for travel is making beautiful, well-designed spaces accessible to everyone with technology, while providing exceptional mobile app-based add-on services” said Alec Fesenko, co-founder and CO-CEO. “We are far more efficient than traditional hotels while also providing a unique space and add-on services that are flexible enough to meet everyone’s needs. Whether you’re traveling on your own, for business, with your family or with friends, you will always have a space that can accommodate you.”
Currently Qstay is developing a differentiated, tech-driven platform that will provide seamless booking, digital concierge and a unified, on-demand access to maintenance and services.
This raise will provide Qstay with additional capital to accelerate and supercharge Qstay’s vision.
“With this new funding, our priority is to scale Qstay carefully and responsibly. We will continue to engage with our real estate partners about new exciting locations as well as innovate on the guest experience and ensure Qstay remains a great place to work for our employees” Artur Khayrullin added. “We’re excited to develop new ways to deliver a better stay for our guests including new features, services and partnerships. Our work has only just begun, but we are optimistic about what the future holds for Qstay, our guests and the future of travel,” Alec Fesenko concluded.
Qstay plans to further capitalize on opportunities within the growing $800+ billion global lodging market and strengthen its position as a differentiated, rapidly growing innovator in the hospitality industry. Over the next few years, Qstay plans to continue investing in technology and expanding its footprint and product offering to drive an unparalleled guest experience, while also delivering even greater value to its investors, real estate partners and guests.