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limehome receives €45m in growth capital

Germany: Munich-based short- and long-term accommodation startup limehome, which markets itself as a “digital hotel alternative”, has closed a funding round of €45 million in new growth capital.

AW Rostamani Group and Capital Four have invested in the tech-based operator for the first time, while current investors HV Capital, Picus Capital and Lakestar have renewed their investment in the latest funding round.

Despite the pandemic, the hospitality tech company maintains that it has continued to grow dynamically in both leisure and business segments due to its consistently digital business model, tripling turnover each year. limehome, which is already present in more than 100 locations in seven countries, is set for additional expansion across European countries imminently.

For over a year, occupancy rates across limehome’s portfolio have been around 90 per cent with high profitability across all locations, according to the startup. Even during the pandemic months, limehome said that it was able to achieve similarly high occupancy rates, exceeding average market levels.

As well as expansion through organic growth, a portion of the capital will also be used to fund acquisitions of existing operators and limehome will seek to enhance scalability and high service levels through further development of its proprietary technology platform.

Cesar de Sousa Freitas, managing director of limehome, said: “Our two new investors appreciate the combination of high growth and a highly profitable existing business. We are delighted with their confidence in our vision and feel confirmed that we are on the right track to develop limehome into a highly profitable technology-based operator of design serviced apartments.”

Dr. Josef Vollmayr, co-founder and managing director of limehome, said: “The last few years have shown that our fully equipped design serviced apartments with a digital customer journey and consistent quality are very popular in both the leisure and business segments. With the support of our investors, we will continue to develop our concept and bring it to new markets.”

Fabian Gruner, principal at HV Capital, said: “We invested in limehome’s innovative business model at an early stage. We see this confirmed by the company’s exceptional development. We are convinced that limehome will continue to expand its leading position as a technology-based operator in Europe through its clear concept and strong implementation.”

Harnessing its proprietary operating platform, limehome automates all the conventional processes of a hotel’s operation from pricing to booking, check-in, cleaning, customer service and invoicing. The digitalised guest journey grants higher efficiency in operation and space utilisation, while allowing smaller locations to be operated profitably.

Since its founding in 2018, the startup is believed to have raised more than €87 million in funding, including a Series A round totalling at least €31 million by October 2020, and limehome now has over 3,000 apartments under contract in locations such as Germany, Austria, The Netherlands, Belgium, Spain, Portugal and Hungary.