AI Hospitality Group (AIHG) has secured $7.5 million in
seed funding as it looks to shake up hotel operations.
The company takes over the management of hotels and uses
its AI-powered proprietary technology to run the back office, freeing up humans
to take care of the customer facing elements.
AIHG has been set up by former Remington Hospitality
president and CEO Dean Sloan, who is joined by co-founder and CTO Kishan Dahya, COO
Eve Moore and founding partner and head of data and analytics, Zach Cunningham.
The investment was led by Rackhouse Venture Capital with participation
from Sierra Ventures and Dynamo Ventures. The round also includes angel investors across hospitality ownership, brand and
technology.
The funding will go towards the expansion of AIHG's
agentic platform and the onboarding of its first wave of managed hotels.
“As Uber’s first head of data science, I know what it
looks like when software fundamentally rewires the economics of a physical,
operationally intense industry,” said Kevin Novak, general partner and founder
of Rackhouse Venture Capital, who joins AIHG as a board observer.
“At Rackhouse, we invest in AI
applied to the real world, and the combination of Sloan's operating track
record, Kishan's technical depth, and a model where AIHG signs the management
agreement and owns the outcome is the most compelling application of agentic AI
to hospitality we've seen.”
“Hotel owners don’t have a tools problem. They have an
operating model problem,” said Sloan.
“The industry has spent a decade buying
software while EBITDA margins eroded from roughly 30% to 20%. AIHG isn’t
another vendor selling a dashboard. We sign the management agreement, take responsibility for the P&L
and deliver the outcome.”