Velocity Ventures invests in BYHOURS to support Asian expansion
Summary
The rising demand for microstays, particularly the unique 3-hour pack, indicates a trend in consumer expectations in the hospitality sector.Velocity Ventures, a hospitality and travel-focused venture capital firm headquartered in Singapore with a focus on the Hospitality and Travel industry in Southeast Asia, has announced a strategic investment in BYHOURS, a global booking platform for microstays boasting partnerships with over 4,000 hotels. The investment also facilitates BYHOURS expansion into the burgeoning Asian market.The firm invests particularly in early to growth stage tech-enabled companies across five verticals: Travel Services, Transportation, Accommodation, Food & Beverage, and Experiences.This move follows Velocity Ventures recent investment with Korean start-up Tripbtoz, part of its focus on innovative tech startups in the region.One of the key features of BYHOURS is its flexibility, enabling guests to adopt a pay per use model with a 24-hour check-in window. This offering focuses on travellers looking for short stays, quick rests, or layovers without the necessity of an overnight stay.BYHOURS has established microstay partnerships across 25 countries, collaborating with a range of hotels, including independent 3, 4, and 5-star establishments, as well as major industry players such as Hyatt, Sheraton, Crowne Plaza, Best Western, Accor Hotels, and NH Hotels. Beyond room bookings, BYHOURS microstay guests enjoy full access to hotel facilities, enhancing their experience with amenities like gyms and pools.For hotels, partnering with BYHOURS provides an additional revenue stream, allowing them to set rates aligned with their offerings and optimizing yield management. Guillermo Gaspart, CEO, and co-founder of BYHOURS, outlines their expansion strategy, prioritizing collaboration with travel agencies, corporations, and online travel agencies (OTAs) to establish symbiotic relationships as a bed-bank for microstays.Bennett Lee, Partner & Investment Director at Velocity Ventures, notes that BYHOURS presents a strategic proposition by allowing hoteliers to reduce operating costs by reselling rooms after microstay guests check out.