Hospitality company Qstay Hospitality Technologies has raised seed funding of $6.5 million.
Investment in the Dubai-based business, which launched in 2020, has come from private investors.
Qstay currently offers about 200 luxury vacation rental properties in the United Arab Emirates and Europe and says a further 200 are already signed.
The company offers its guests a tech-driven experience via its mobile app including access to local pools, gyms and spas as well as hotel-like amenities in its properties.
The company claims its occupancy exceeds 80% and that EBITDA has been positive for the past two quarters.
Qstay is looking to have 450 units by the end of 2022, expand to more than 600 units next year and achieve revenue of $50 million in 2023.
The company also wants to be in five cities across Europe and the Middle East over the next 12 months.
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According to Artur Khayrullin, founder and co-CEO, the capital will be used to "accelerate the amazing growth” the company has seen so far.
He says: "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.”
Alec Fesenko, co-founder and co-CEO, says: ”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.”