Austin, Texas-based Locale has landed $2.5 million in funding to grow its apart-hotel brand.
Amplo and Susa Ventures led the seed round, Locale’s first funding round since launching in 2016.
With the capital, Locale plans to expand its apart-hotel concept - through which the company partners with real estate owners and developers to provide furnished apartments to travelers for short or extended stays - to new markets.
The company currently leases and manages more than 150 apartments in Austin, Houston and Nashville and plans to partner with developers of “upscale Class A multifamily properties” in San Francisco, Santa Monica, Denver and Houston’s Texas Medical Center.
Locale will also use the funding to upgrade its technology and build brand awareness.
"Locale is addressing the evolving needs and desires of today's business and leisure traveler, who seeks intentionality in their travel experience,” says Nitesh Gandhi, founder and CEO of Locale.
“From an elevated in-room design to high-quality product partners, we’re curating a unique experience that will elevate the Locale brand and bring much-needed differentiation to this category of accommodations.”
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Locale aims to bridge the gap between private accommodation and boutique hotel by providing guests amenities such as high-quality linens, smart appliances, in-room washer-dryer units and local coffee, along with keyless entry, built-in security systems and guest services available 24/7.
The company says it’s committed to working with local governments to abide by regulations and to only operate within commercial and mixed-use zones. The real estate partners it works with determine where Locale’s business model works best for the building, its residents, the brand and neighborhood.
“Locale is best in class. We have worked with lots of different short-term rental operators and they are by far and away the most professional and effective,” says Brian Dinerstein, president of the Dinerstein Companies.
“They have an owner’s mentality and are focused on adding long-term value to our properties.”