The Guild, a company that leases space in mixed-use
buildings and rents the apartments as hotel suites, has secured $9 million in
Series A funding and expanded to Miami and Cincinnati.
The Austin-based company, established in 2016 by Chris
Herndon and Brian Carrico, already had hotel
inventory in Austin and Dallas. The Guild plans to be in Denver by the end of
the year.
The Guild's rates range from $150-$300 per night. According
to co-CEO Carrico, The Guild's units promise more space than a traditional
hotel room, typically offering a full kitchen, and are designed to "let
people live more normal lives" while traveling.
An Guild apartment in Dallas.
Available for bookings starting this week, The Guild's
inaugural Miami property totals 80 units, while its Cincinnati property
features 50 units. The company plans to launch in Denver with 50 units. The new
accommodations join The Guild's existing presence in Austin and Dallas, where
the company collectively operates about 250 units across 10 properties.
"Mixed-use properties often have ground floor retail,
perhaps some office space, and now they can rent out a few floors as a hotel, and
the rest can be residential," says Carrico. "That's the powerful
aspect of this business model. You don't have to create purpose-built assets
from day one. The world is moving toward a more flexible use of space, and this
allows us to move toward that future and create a unique hotel experience."
A typical Guild property lease lasts two to 10 years and is
structured much like a retail contract.
The latest funding round was led by venture capital firm
Maveron, with Corigin Ventures and Pernod Ricard's Convivialite Ventures among
the other major investors. Chip Conley, former head of global hospitality at
Airbnb and the founder of the Joie de Vivre hotel brand, is on board as an investor
and advisor.
By the end of the year, The Guild plans to operate more than
450 units across its five markets. The company expects to grow its reach to
over 1,000 units across five to 10 markets by the end of 2019.