London: Premium short-term rental platform UnderTheDoormat has announced it has successfully raised close to £1 million to focus on London expansion.
The accommodation provider differentiates itself by only listing four and five star, fully-serviced properties for short term rent, which target customers who are willing to pay a premium. The total short stay market is currently worth more than £52bn and the premium homestay sector is estimated to be worth over £5billion annually by 2025.
As well as regular homeowners and foreign investors who can earn money through short lets, the platform has attracted growing interest from housebuilders and private rented sector (PRS) landlords who are looking to generate income from unsold or vacant properties.
The investors included Rory Hardick, founding partner at M3 Capital Partners, and founder and non-executive chairman of CBRE Hotels, Derek Gammage.
Gammage has joined the board with the objective to help UnderTheDoormat double its homeowner portfolio in the next year, which will create new opportunities for both guests and homeowners.
He has already spent 30 years of his career in the sector, acting as a strategic advisor to several private equity houses and family office investors in the hotel real estate world.
As a premium accommodation provider, UnderTheDoormat has already delivered over 26,000 room nights in London. Its CEO, the former Shell exec Merilee Karr, is a well-known figure in the short letting sector and she currently sits as chairwoman of the Short-Term Accommodation Association which leads policy and standard setting for the industry.
CEO of UnderTheDoormat, Merilee Karr, said: “Travellers have more choice now than ever before and our vision is about supporting those who want to step into the shoes of a local without giving up the premium comforts they enjoy at home or in five-star hotels. This new round of investment, combined with the industry-leading expertise joining our board, will pave the way for our next phase of growth in a sector worth £5bn.”
Chairman of CBRE Hotels, Derek Gammage, said: “UnderTheDoormat is an incredibly unique proposition in a fast-growing market sector. High-end homeowners value the peace of mind offered by a fully-managed solution, while travellers are willing to pay a premium for better service and greater certainty over the quality of what they get.”