Stay Alfred raises $15 million in capital
Company hopes to use funds to go internationalFebruary 2nd, 2017
Stay Alfred, the nationwide urban vacation rental company based here, says it has secured $15 million in Series A funding from a Seattle-based investor and expects to use the money to expand its presence globally and to increase its rental unit inventory tenfold.
CEO Jordan Allen says although Stay Alfred’s hybrid hospitality model has enabled the company to grow substantially since its founding in 2011, this is the first outside funding the company has raised.
“As we looked at how to take our business to the next level and scale, we realized the opportunities that would become available with substantial outside funding,” he says. “It was the right time to go after these opportunities, including building a global brand, expanding to new markets, and further enhancing our customers’ experience.”
He says the company’s revenues for 2016 totaled $25 million, up from $13.5 million in 2015, and it’s expecting significant growth again this year.
Allen says the company plans to use the funds to grow from nearly 400 units in 12 U.S. destination cities currently, to more than 4,000 units worldwide, bringing its brand to travelers across the world.
“The immediate goal is to continue to add top U.S. travel destinations before expanding to international markets,” he says.
Allen estimates the process of expanding Stay Alfred internationally will take up to 24 months.
Stay Alfred’s focus is on providing travelers with urban stays that combine the consistency of a hotel with the benefits of a vacation rental.
The company leases individual units and entire buildings in cities and then rents them out on a short-term basis to travelers. Its team handles the furnishing, cleaning, booking, and customer service for each rental.
Stay Alfred currently has 74 employees and recently hired several new executives and a marketing team to support its projected growth.
The company’s recently hired executives include Grant Guinn, formerly of Hilton Worldwide, who now serves as Stay Alfred’s vice president of product development, and Ralph Baard, formerly of People to People Ambassador Programs and Princess Cruises, who now serves as Stay Alfred’s vice president of operations.
Eventually, Allen says he hopes to see Stay Alfred locations in all of the top 30 U.S. travel destinations.
“I’d like to see Stay Alfred continue to support families and recreational travelers alike while expanding our services to support the ever-growing business travel community,” he says.
Stay Alfred currently offers rentals in Seattle; Portland; Boston; Dallas; Denver; Memphis and Nashville, Tenn.; New Orleans; Philadelphia; San Antonio; San Diego; and Washington, D.C.