AUSTIN, TX—Locale has raised $11 million in Series A funding. The round was led by Amplo Ventures, with participation from Susa Ventures, Malkin Holdings, Rogue Insight Capital and Metropolis Capital Partners, bringing the total funding to date for Locale to $14 million.
Founded in 2016, the company has grown rapidly, transforming hundreds of apartments into high-quality accommodations for business, leisure and extended-stay travelers. Leading with design and technology, Locale has crafted a best-in-class guest experience while operating more efficiently and cost-effectively than traditional hotel and vacation rental managers, according to the company.
Locale operates in major markets across the U.S., including Austin, TX, Houston, Dallas, San Francisco, Nashville, TN, and Minneapolis, and employs more than 30 full-time team members. Despite limited capital investment to date, revenue has grown 200% year-over-year, while guest satisfaction scores remain among the highest in the lodging industry.
The new funding will be used to further invest in digital product innovation, enhanced in-room offerings and executive-level hiring. It will also enable Locale to move forward with its pipeline of projects in markets like Denver, Nashville, TN, and Charleston, SC, providing guests with a fully branded and curated end-to-end experience rivaling the best upscale hotels, according to the company.
“We first decided to back Locale when we realized how thoughtful they are in building the next generation of accommodations for travelers,” said Sheel Tyle, founder/CEO of Amplo, the lead investor in the latest round. “We are now increasing our commitment to Locale as it continues to redefine the short-term rental category by introducing a premium apartment hotel brand centered around quality in-room products, intentional design, local curation and, most importantly, a superior hospitality-driven experience.”
Founder/CEO of Locale Nitesh Gandhi established the company after spending many years in the hotel and vacation rental industry. With Locale, he has created an upscale aparthotel collection that has the goal of bringing intentionality to every element of the guest experience, elevating it with thoughtfully curated products, amenities, design and service. The contemporary aesthetics of the properties and tech-forward experience appeal to a variety of guests, from families, to millennial business travelers and larger groups, according to the company. Locale’s business model also provides many benefits to real estate owners and developers, including faster lease-ups, less vacancy, shared services and operations, and improved resident perks. This has enabled the company to successfully partner with multifamily groups like Greystar, The Dinerstein Companies, and AMLI on multiple projects across the country.
“This year has been an exciting one of expansion for Locale—from the number of cities which we are located to the number of guests we’ve served,” said Gandhi. “It’s been an important stepping stone in achieving our ambition to create the leading modern apartment hotel brand. This latest round of funding, together with our invaluable real estate and brand partnerships, will help Locale’s continued growth, which include a number of full-building deals currently in development that will allow travelers to experience Locale’s artfully curated approach to hospitality in a complete environment.”
For more coverage on Locale, check out Hotel Business’ January 15th issue.
