Hotel keyless door entry technology provider OpenKey has raised $8 million in a Series A investment round.
The round was led by Ashford Group of Companies and included participation from fellow investment fund, Phoenix American.
The company (TLabs here) was created in 2014 with a piece of technology that pairs with hotel room locks that use NFC, RFID, or Bluetooth technology.
Hotel clerks can zap the key to guests’ phones, which then can be used to open locks.
OpenKey says it hopes the technology will be deployed in more than 30,000 rooms by the end of 2017 (around 250). Some 150-odd hotels were reported to be on the company's book during the summer of this year.
A seed round of $1.5 million was raised earlier by the company.
According to CEO TJ Person, OpenKey has a "pennies-per-day" revenue model that equates to half the cost of replacing one RFID card.
"Most hotels pay $.25 per door per day for OpenKey service. OpenKey also finances lock upgrades to Bluetooth Enabled locks necessary for mobile key as part of a 36 month agreement for a little as $.40 per door per day."
Ashford Hospitality Trust, one of the the Ashford Group's funds, traditionally investments in hotel properties, mainly in the "upper-upscale and upscale" range, including those belonging to brands such as Hilton, Crowne Plaza and Westin.