Hotels by Day Shark Tank Update | Hotels by Day Net Worth

Hotels By Day, which appeared on Season 8 of Shark Tank, is a solution aimed at travelers, business professionals, and anyone else who might need a hotel room for only a portion of the day.

The concept emerged from the realization that there was an unmet need in the hospitality industry, specifically for those who did not require overnight accommodation but still wanted a space to rest, freshen up, or conduct business for a few hours during the day.

Co-founded by Yannis Moati and Brian Dass, Hotels By Day is a mobile app-based platform allowing customers to book hotel rooms for a few hours. This flexible model allows users to book rooms in the morning, mid-day, or evening at their convenience.

In essence, the app enables users to only pay for the time they need to use the room, eliminating the need to pay for an entire day and night when it’s not required.

This service can be particularly beneficial for individuals who travel to different locations during the day for official or business work and need a comfortable space to take a break, freshen up, or prepare for meetings.

Despite not securing a deal on Shark Tank, mainly due to the Sharks finding their valuation of $7.5 million unconvincing, given their monthly revenue at that time, Hotels By Day managed to capture the public’s interest.

Hotels By Day’s approach to addressing a gap in the hotel booking market has been recognized by various publications such as the New York Times, and they have seen a significant increase in bookings post their television appearance.

Regarding competition, Hotels By Day has to contend with other online hotel booking platforms like Hotels Tonight and Stayful. However, their unique selling proposition lies in the hourly booking feature, which gives them a distinctive edge in the marketplace.

Despite some initial hurdles, Hotels By Day continues to be in business and has expanded its operations across various locations in the United States. Hotels By Day presents a compelling choice for those seeking short-term, flexible hotel accommodation options.

Hotels By Day offers a solution to an often-overlooked need in the hospitality sector, and its convenient, user-friendly app makes booking a hotel room for a few hours as easy as a few taps on your smartphone.

What Are Hotels By Day?

Hotels By Day is a service that allows customers to book hotel rooms for a few hours during the day instead of the traditional overnight stay. It allows users to choose check-in and check-out times that suit their needs, offering a variety of time slots.

Hotels By Day is a booking platform that offers a new concept in the hospitality industry, allowing guests to book rooms for a few hours during the daytime instead of the traditional overnight model.

The service is designed to cater to various needs, including providing a comfortable space for business travelers to work or rest during long layovers, giving tourists a place to freshen up or relax during busy sightseeing days, or offering a unique daytime getaway for locals.

Guests can choose from various check-in and check-out times that suit their schedule, offering unprecedented flexibility. The platform features a broad selection of accommodations in cities worldwide, from budget-friendly options to luxurious suites.

Hotels By Day provides hotels an additional revenue stream while offering guests greater convenience and value by efficiently using vacant rooms during the day.

The service is designed for travelers who require a place to rest or work for a few hours, people on long layovers, or those who simply want a daytime space for various purposes. The platform includes options ranging from budget hotels to luxury suites in various cities worldwide.

Who Is The Founder Of Hotels By Day?

Yannis Moati and Brian Dass founded Hotels By Day. The two came from extensive backgrounds in the travel and hospitality industries which undoubtedly influenced their business concept.

Before Hotels By Day, Yannis had an illustrious career in the travel sector, where he conducted guided tours in Europe, directed an NYC global tour operator company, and co-founded a travel agency.

His partner, Brian, leveraged his 20 years of experience in various aspects of the hospitality industry, having worked as a hotel manager and been involved with two hotel technology firms.

Both founders saw a gap in the market for more flexible hotel booking options. They observed that many travelers in cities for a day needed a space to rest and freshen up but didn’t need a room for an entire night.

Hence, they decided to tackle this problem with Hotels By Day, offering a solution where hotel rooms could be booked for a few hours during the day.

Before stepping into the limelight on Shark Tank, Hotels By Day was already making strides in the hotel industry. The founders brought about 300 businesses on board, promising to revolutionize the hotel industry by offering a new and more flexible booking system.

Their approach aimed to increase hotel revenue while allowing guests to book a room when needed. Their understanding of the industry, combined with a vision to solve a common problem, led to the inception of Hotels By Day. 

Before appearing on Shark Tank, Moati and Dass were set on introducing a paradigm shift in the hotel industry, providing revenue to hotels during traditionally unoccupied hours and offering guests the flexibility to book a room when they needed it the most.

They presented their idea to the Sharks, requesting an investment of $750,000 in exchange for 10% of their company. This signaled their ambition and belief in their business idea’s potential.

Despite the challenges and the tough grilling they received on Shark Tank, their determination to disrupt the hotel industry didn’t waver, paving the way for the future growth of Hotels By Day.

How Was The Shark Tank Pitch Of Hotels By Day?

The founders of Hotels By Day, Yannis Moati and Brian Dass, appeared on Season 8 of Shark Tank seeking a significant investment of $750,000 in exchange for a 10% equity stake in their company.

The idea behind their business was to offer a solution to customers looking for hotel rooms during the day, either for a few hours or a ‘daycation,’ thereby providing additional revenue for hotels.

They presented their business by outlining the common scenario of needing a hotel room only for a few hours during the day and the inefficiency of being charged for a full 24-hour period.

Their platform connects to a hotel’s channel management system, allowing customers to book a hotel room for the needed hours.

However, the presentation was met with skepticism from the Sharks. Mark Cuban likened their pitch to a Saturday Night Live skit due to their simultaneous talking and use of business jargon.

The Sharks were confused by the business model and raised questions about the proprietary nature of their technology, how it differed from existing hotel booking systems, and the competition they faced from other established online booking sites.

Chris Sacca questioned the defensibility of their technology and whether it was an actual technology or a workaround. The Sharks also had doubts about the business’s scalability and profit margins.

Yannis and Brian shared that they had 6500 bookings and about $127,000 in gross booking revenue in 2015, keeping only 14% of that as profit, a fact that they acknowledged as being low but reasonable.

Despite Yannis and Brian’s assurance that major hotel chains couldn’t offer the same service, the Sharks were unconvinced.

Robert Herjavec believed their technology was not proprietary, which led him to opt-out. Chris Sacca was also critical of how the entrepreneurs answered his questions and decided to opt-out.

Mark Cuban followed, citing doubts about the business’s potential size. Kevin O’Leary wasn’t convinced of the valuation they set for themselves and also opted out, followed by Lori Greiner, who saw too many missing pieces in their business model.

Consequently, the Hotels By Day pitch did not result in a deal with any of the Sharks. However, despite not securing an investment in the show, the company continued to grow, launching a sister app, FlexBook, and expanding its offerings to 450 hotels by 2018.

Despite their unsuccessful pitch, they have continued to grow and expand their business offerings, which may suggest a missed investment opportunity for the Sharks.

What Happened To Hotels By Day After Shark Tank?

After its appearance on Shark Tank, Hotels By Day thrived and expanded its business significantly. The company, founded by Yannis Moati and Brian Dass, offers a day room hotel booking app that allows travelers to book hotel rooms for short durations during the day without overnight stays.

Despite not securing a deal with the Sharks during their appearance on the show, Hotels By Day showed resilience and growth. They launched a sister app called FlexBook, which allowed users to choose to book an overnight hotel room stay with the option to extend their check-in or check-out time.

The significant expansion of its partner network post-Shark Tank was a notable milestone. The company went from partnering with 300 hotels at their Shark Tank pitch to covering 450 hotels, a 50% increase. This expansion allowed them to offer services to a broader range of travelers and hotel owners.

Moreover, Hotels By Day diversified its offerings beyond just day room bookings. They expanded their services to include various booking options, such as Work Rooms, Meeting Rooms, Event Spaces, and Coworking Desks. This further strengthened their position in the market and catered to a wider audience with different needs.

Despite facing initial skepticism from the Sharks about the uniqueness and defensibility of their technology, Hotels By Day continued to prove their concept and thrive in the industry.

The company capitalized on the “work from the hotel” trend and witnessed a boost in its business after the decline in bookings due to the COVID-19 pandemic.

As of 2023, Hotels By Day’s annual revenue had reached $5 million, and they expanded internationally to major European cities, solidifying their position as a leading player in the niche.

Overall, Hotels By Day’s journey after Shark Tank has been one of growth, innovation, and success. They have demonstrated their ability to adapt to changing market conditions and continue to provide valuable services to travelers and hotel owners alike.

Hotels By Day Shark Tank Update

After their appearance on Shark Tank, despite not securing a deal with any sharks, Hotels By Day showed resilience and continued to grow and expand its business.

It is worth noting that not receiving a deal on Shark Tank doesn’t mean the end for a business. The exposure alone can lead to a significant boost in sales and brand recognition.

One of the major steps that the company took post-Shark Tank was the launch of a sister app and website, FlexBook. This new service allowed users to book an overnight hotel room with the added flexibility of extending their check-in or check-out time.

This aligns with the original concept of Hotels By Day, designed to provide customers with more flexibility when booking hotel stays and to help hotels maximize their room occupancy throughout the day.

Hotels By Day significantly expanded its partner network. In 2018, they increased their hotel partnerships by 50%, going from 300 hotels at their Shark Tank pitch to 450 hotels.

This growth suggests that despite the skepticism from the Sharks, there was indeed demand for the service they were offering both from customers and hotels.

Hotels By Day also diversified its offerings beyond just day room booking. They have since included Work Rooms, Meeting Rooms, Event Spaces, and Coworking Desks in their services.

This means they’re not just targeting travelers or those looking for a brief respite but also businesses and individuals seeking a flexible workspace.

While the exact financial figures of their performance post-Shark Tank aren’t available, their continued expansion and activity on social media suggest that the company is thriving.

Despite the lack of a deal on Shark Tank, Hotels By Day appears to have used its appearance to spur further growth and development.

Is Hotels By Day Still In Business?

Our research shows that Hotels By Day is still in business. Despite not securing a deal on Shark Tank when they appeared seeking $750,000 for 10% equity, the company has continued to operate and expand its services.

Hotels By Day was founded in 2014 and operates as a New York-based startup that allows users to book hotel rooms during the day at lower rates between early check-out and late check-in times.

They provide a win-win situation for travelers and hotel owners by offering day room bookings hourly during the day. The company raised $550,000 in one Angel round on June 01, 2015, and has no institutional or angel investors.

Over the years, Hotels By Day has shown growth and expansion. They started with 30 hotels in New York and Chicago but expanded to over 500 in 270 locations globally. As of now, they have expanded even further, covering 450 new locations worldwide.

Their day-stay hotels offer flexibility, with rates around 60% cheaper than night-stay rates, making it an attractive option for business travelers and those seeking a hotel for a few hours without spending the night.

The company’s services include day room bookings, “work from hotel” packages, and other offerings to cater to different customer needs. Their mobile app simplifies the booking process, providing users with a user-friendly interface to sort hotels by location and rate and book easily.

With its successful expansion and continued operation in the market, Hotels By Day has established itself as a leading player in the niche of hotel day room bookings, offering convenience and cost-saving options to travelers.

What Is the Net Worth Of Hotels By Day?

According to our research, the net worth of Hotels By Day is estimated to be $10 million. The valuation of Hotels By Day was $7.5 million when it appeared on Shark Tank.