CO-FOUNDER OF CARE PARTNERS,
THANK YOU.
>> AND THAT WAS OUR VERY OWN
CHLOE FROM M J HIS CALM 20
YEARS HERE WHY HOTELS BLURRING
THE LINE BETWEEN HOSPITALITY.
THE COMPANY THAT PROVIDES
LUXURY POP-UP HOTELS AND
APARTMENT BUILDINGS JUST LANDED
MILLION SERIES B
FUNDING ROUND. JOINING US NOW
IS JASON FOOD AND WHO IS
THE SCENE WHY HOTEL JUST A
GREAT TIME HERE WITH US TODAY,
THANKS FOR HAVING ME SO LET'S
DIVE RIGHT IN YOUR WATCH WILL
THIS NEW FUNDING TO GO TOWARDS
FOR
A WHILE.
>> SO RIGHT NOW WE'RE IN THE D
C BALTIMORE REGION OR IN
SEATTLE ARE GOING TO PERCENT
NATIONALLY.
IN JUST A PEOPLE UNDERSTAND HOW
IT WORKS ITS AND ALL THE HIGH
RISE APARTMENT BUILDING FOR
RENT IN NEW YORK OR D C THEY
DELIVER THE UNITS ALL AT ONCE
AN EMPTY AND SO
WE TAKE 100 OR MORE UNITS WE
PREFER NURSE THEM WE RUN HOTEL
OUT OF THE VACANCY AND SO THAT
OVER TIME AS THE BUILDING
BECAUSE OF THE RESIDENTS WE
SLOWLY.
>> THAT'S AN INCREDIBLE IDEA I
MEAN WHERE DID IT
COME FROM.
>> ASKED MY BACK ON ISRAEL TO
DEVELOPMENT, I WAS THE
DEVELOPER VORNADO REALTY A
LARGE PUBLIC IT COMPANY AND
EVENTUALLY SPREAD OUT TO FORM I
TELL MY BUSINESS PARTNER
AND WE START POPPING UP ON
SOUTH WHAT'S THE UPKEEP LIKE ON
YOUR SIDE, THE OVERHEAD.
YES, WE WANT TO 24 7 ON-SITE
STAFF, SO YOU AS
A GUEST THAT KIND OF SERVICE OF
A HOTEL, BUT YOU GET THE THE
SPACE COMFORT AMENITIES OF AN
APARTMENT BUILDING AND IT'S ALL
BRAND NEW.
>> I MEAN I HAVE SO MANY
QUESTIONS YOU REACH HOTEL'S
NAME DIFFERENTLY TO DIFFERENT
STAFF. YOU HAVE ONE STAFF THAT
JUST LIKE.
>> ROUND IT WE'VE GOT MORE THAN
ONE STAFF EVERY HOTEL HAS A 24
7 ON-SITE STAFF. BUNNY STAFFING
COME YES, US LOST THAT FOR US
SO OUR DAY.
YOU KNOW THAT MAKE SURE THAT
THAT OUR LEVEL OF SERVICE IS
THE SAME ACROSS EVERY BUILDING
IS DIFFERENT BECAUSE THEY'RE
BUILT BY DIFFERENT DEVELOPERS
AND WE WORK WITH BROOKE FIELD
AVALON EQUITY CAMDEN ON THE BIG
COMPANIES. BUT THE SPACE ON THE
INSIDE
OF SIMILAR.
>> YEAH, YEAH, IT'S NOT
SOMETHING YOU COULD SEE A
COMPANY LIKE THE RELATED
COMPANY. WE SEE HERE IN NEW
YORK CITY WHEN THEY POP UP A
LOT OF THESE NEW BUILDINGS AND
THEY ULTIMATELY LOOK
TO EITHER LEASE THEM OUT TO
RESIDENTS OR TO BUSINESSES FOR
COMMERCIAL SPACE IS THAT
SOMETHING THAT YOU COULD SEE
THEM TAKING ONE UNDER THEIR
FOLD IS A HOTEL LIKE SERVICE AS
WELL.
>> YEAH, WE KNOW THAT HE MET
RELATED, WE KNOW ALL OF THE
MAJOR DEVELOPER IF YOU'RE A
DEVELOPER YOU HAVE HUNDREDS OF
EMPTY UNITS IN YOUR APARTMENT
BUILDINGS THE DAY YOU OPEN AND
SO FOR YOU IT'S
IT'S ALL FOUND MONEY AND IT'S
FOUND ACTIVATION RIGHT AND YOU
INSTANTLY HAVE FEET ON THE
STREET PEOPLE GOING TO
RETAILERS SO SO YEAH ABSOLUTELY
WOULD NOT BE SURPRISED RELATED
THAT SOMETHING LIKE THAT.
>> IT'S REALLY SMART AGAIN
LOOKING AT THIS EXCESS CAPACITY
DOING SOMETHING WITH IT YOU
KNOW MAKING MONEY FOR YOURSELF
IN A SEPARATE COMPANY WITH THE
THOUGH CRUST SCRUTINY AND
CRITICISM AROUND WE WORK PRAY
IS THAT IMPACTING OUR BUSINESS
AT ALL.
>> YES, IT'S REALLY POSITIVE
FOR US THAT WE DON'T SIGN
LONG-TERM LEASES THE SHORT TERM
CONTRACTS.
INSTEAD I'M WE DEVELOPERS A
PERCENTAGE OF THE REVENUE
TO CREATE AND THEN AS A BELIEF
IS UP WE LEAVE SO WE DON'T HAVE
THAT MISMATCH BETWEEN KIND OF A
LEASE OBLIGATION AND THEN A
CUSTOMER
YOU'RE ALIGNING FOR EVERYBODY
YET THE IDEAS THAT WE ALL WANT
THE
SAME OUTCOME. AND AGAIN WE'RE
NOT TAKING ON THESE OBLIGATIONS
SO MARK OF A LEASE OBLIGATIONS
WITH MUCH CLEANER
FOR US THE RESIDENTS OF THESE
BUILDINGS
LIKE THIS. OVER A 3RD OF ALL
THE RESIDENTS USE THAT AS AN
AMENITY THEY GET FREE ROOM
NIGHTS OF FREE CLEANING SERVICE
AS WELL. SO WE SAY HAD WERE
WERE IN THE BUILDING. WE HAVE
THE TEAM REMINDS OF A VITAL
SERVICE FOR US. OH THAT'S
REALLY NICE BECAUSE THEN
THEY CAN.
>> LIKE YOU BUT WHAT ABOUT THE
IDEA OF AIR BNB A SPACE THIS
RIGHT YOU'VE GOT PEOPLE COME IN
THAT YOU'RE BUILDING ON THE
TIME.
YOU KNOW I WANT THIS KIND OF
THING RIGHT
NEXT TO.
>> A MATTER OF JUST DON'T LIKE
STRANGERS BUT MOST PEOPLE DON'T
KNOW THEIR NEIGHBORS SO IF YOU
LIVE IN HIGHLAND PARK IN NEW
MOST PLACES.
>> AND SO YOU KNOW THERE'S A
LIFESTYLE A NEW HIGH RISE
BUILDINGS THAT'S THAT IS MORE
TRANSIT
NATURE ANYWAY.
>> AND OUR GUESTS TO FIT THE
SAME PROFILE AS THE FOLKS THAT
LIVE THERE SO WE FIND THAT
SOMETIMES PEOPLE END UP FUNDING
TO EACH OTHER IN AMENITIES
FRIENDSHIPS AND IT'S FUN TO BE
IN THIS.
>> I'M A NEW YORKER SO NO I
DON'T LIKE STRANGERS YOU KNOW,
I MEAN IF THE WRONG CITY BREAK
UP WITH THE BEST OF IT BECAUSE
EVERYONE CAN BE ALONE
ALL TOGETHER. NOW I BUT I THINK
THE QUESTION WITH YOU KNOW WHAT
I DO WITH AIR BNB IS YOU DO GET
PEOPLE WERE CONCERNED ABOUT YOU
KNOW FOLKS WHO ARE KIND OF
COMING IN RIGHT SO HOW DO YOU
ADDRESS THOSE CONCERNS WITH
BUILDING OCCUPANTS. YES WE
HAVEN'T FACED THAT SO WE'RE
ON NOW.
>> 10'S OF THOUSANDS NIGHTS AND
AS I SAID YOU KNOW RESIDENTS US
IS AN AMENITY WE DO DECIBELS
SENSORS IN THE UNIT, SO IF
ANYONE'S EVER ALLOWED WE WOULD
COME UP WE ALSO HAVE A SMOKE
ALARM SENSORS FOR A MARIJUANA
CIGARETTE SO THE EXPERIENCES IS
REALLY CLEAN AN AIR BNB
TYPICALLY THERE'S NOT A 24 7
ON-SITE STAFF, SO IT'S A LITTLE
BIT DIFFERENT EXPERIENCE WHEN.
>> THEY FEEL SAFER BECAUSE THEY
KNOW SOMEONE IS IN CHARGE, IT'S
NOT LIKE YOU'RE AT A HOUSE AND
YOU KNOW YOUR NEIGHBORS ARE
GONE AND THEY COULD
HAVE PARTIES.
>> IT WAS THAT THE TOWN IS SET
THAT YOU'RE PART OF A
RESIDENTIAL COMMUNITY I WOULD
SO MUCH X AND EVERYONE IS IN
THE BUILDING IS
OVER 18. WE IDEALLY WE SCANNED
COPY OF THE LIES AND SO IT'S
NOT LIKE SOMEONE SHOWING UP TO
A HOUSE SOMEWHERE THAT.
WATCHED WHEN I LIVED IN THE DMV
THAT WAS THE LAST PLACE
THAT ACTUALLY NEW MY NEIGHBORS
OF THE D C MARYLAND, VIRGINIA,
BUT
ADDITIONALLY JUST QUICKLY AS
WELL WHEN YOU THINK ABOUT THE
FACT THAT
YOU DO HAVE A LOT OF THESE
PROPERTIES THAT ARE TRYING TO
BOOST AMENITIES THAT ARE TRYING
TO TAKE MORE CARE OF THE
RESIDENTS BUT THEN YOU ALSO
HAVE A HOTEL BUSINESS THAT IS
COMING IN AND YOU'RE BUSINESS
YOU'RE LOOKING FOR SOMETHING
VERY DIFFERENT. IT'S A MARGIN
ON EVERY SINGLE ROOM THAT
YOU'RE NOT WHAT ARE THE MARGIN
LIKE FOR A BUSINESS LIKE THIS
WHEN YOU ARE JUST TAKING A ROOM
AND ESSENTIALLY RENTING IT OUT
TO BE.
YES, SO WE HAVE TO DO BETTER
THAN EMPTY RIGHT. SO THE IF
WE'RE NOT THERE THE UNITS
OTHERWISE
EMPTY SO.
>> DEVELOPERS DON'T SEE THE
SAME RENTAL INCOME THEY WOULD
ONCE THEY SIGN IT ENDED UP
WHICH IS WHY THEY'RE STILL
INCENTIVIZED TO DO THAT THEY