Butler Hospitality will use a Series A investment round of $15 million to spearhead its expansion to beyond its core four cities.
The "ghost kitchen" service, effectively taking over room service delivery for hotels, currently runs in New York City and plans to launch in Chicago, Miami and Washington, D.C., by January 2021.
The company was named as one of PhocusWire's Hot 25 Startups 2019.
Butler was created in 2016 and claims the new investment round led by &Vest will value the business at $85 million.
Total capital raised so far has now increased to $20.2 million. Existing investors Scopus Ventures an, Kraft Group and Loeb joined Mousse Partners in the latest round.
The virtual room service model works by taking over restaurants in hotels and turning them into delivery hubs for other non-service hotels nearby. The company designs menus of luxury food, prepares the orders in its own kitchens and then pledges to deliver within 30 minutes, in the case of New York City.
CEO and founder Tim Gjonbalic says: "As the hospitality industry navigates the challenges of COVID-19, we've strived to adapt and meet the demands of customers and continue to support our partners."
The company delivered 175,000 meals to healthcare workers, quarantined senior citizens, patients and military personnel staying hotels during New York's outbreak.