Velocity Ventures invests in ByHours to support Asian expansion

Nov 20, 2023 | Media Coverage

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Velocity Ventures, a venture capital firm headquartered in Singapore with a focus on the hospitality and travel industry in Southeast Asia, has announced a strategic investment in ByHours, a global booking platform for microstays boasting partnerships with over 4,000 hotels. The investment also facilitates ByHours’ expansion into the burgeoning Asian market.

The firm invests particularly in early to growth stage tech-enabled companies across five verticals: travel services, transportation, accommodation, food and beverage and experiences. 

This move follows Velocity Venture’s recent investment with Korean start-up Tripbtoz, part of its focus on innovative tech startups in the region. 

One of the key features of ByHours is its flexibility, enabling guests to adopt a “pay per use” model with a 24-hour check-in window. This offering focuses on travelers looking for short stays, quick rests or layovers without the necessity of an overnight stay.

ByHours has established microstay partnerships across 25 countries, collaborating with a range of hotels, including independent 3-, 4- and 5-star establishments, as well as major industry players such as Hyatt, Sheraton, Crowne Plaza, Best Western, Accor Hotels and NH Hotels. Beyond room bookings, ByHours’ microstay guests enjoy full access to hotel facilities, enhancing their experience with amenities like gyms and pools.

For hotels, partnering with ByHours provides an additional revenue stream, allowing them to set rates aligned with their offerings and optimizing yield management. Guillermo Gaspart, CEO and co-founder of ByHours, outlines their expansion strategy, prioritizing collaboration with travel agencies, corporations and online travel agencies to establish symbiotic relationships as a bed-bank for microstays.

Bennett Lee, partner and investment director at Velocity Ventures, notes that ByHours presents a strategic proposition by allowing hoteliers to reduce operating costs by reselling rooms after microstay guests check out. The rising demand for microstays, particularly the unique three-hour pack, indicates a trend in consumer expectations in the hospitality sector.

ByHours has already garnered more than 300,000 users and sold over a million hotel hours, generating over €20 million in turnover. The company has 30 employees across offices in Spain and Mexico. In addition to Velocity Ventures, ByHours had previously raised €12 million with investors such as Angel Ventures, DILA Capital and Howzat Partners.