Unmanned Hotel Brand Xbed Nets CNY100 Million in Series A Financing
LE YAN
(Yicai Global) Feb. 7 — Unmanned hotels are following closely in the footsteps of new business forms such as unmanned convenience stores and unattended shelves.
Xbed, an Internet hotel operation platform, said that it has closed its Series-A financing, the equity financing of which reached CNY100 million, coupled with hundreds of millions in credit financing. Gui’an New Area Digital Economy Industry Fund led this round.
The proceeds will go to establish its dominant internet operation control system and advance large-scale market evolution. By adopting the unmanned mode of operation, Xbed can save nearly 50 percent on overall costs. It will expand its portfolio of hotel guest rooms and carry out capital operation as appropriate in future, said Li Chuntian, Xbed’s founder and chief executive in an interview with Yicai Global yesterday.
As a pioneer in hotel chain operation, Li took part in the founding of 7 Days Inn in 2005 and formed Xbed over two years ago.
The company chose not to open chain hotels with the aid of property as other firms do. Instead, it developed a business model like that of decentralized apartments. Taking a guest room as the unit allows the business to operate per the pattern of whole apartment or decentralized guest rooms. Without staff at the front desk, guests can order, pay, check-in and check-out by themselves via the platform and smart system, Li said.
“Our unmanned hotel model cuts 70 percent off labor costs, which saves about 50 percent of overall operating costs.” Xbed boasts over 20,000 guest rooms and nearly 1 million registered members and operates in 44 cities, per data Li provided. It has an over 80 percent occupancy rate, three days of average guest folio length (renting duration), and CNY350 of average price of guest folio. With roughly CNY270 of average earnings per room per day, Xbed reaped over CNY20 million in monthly income at the end of last year, showing it had not only achieved a balance of payments, but started to turn a profit as well.
However, though it resembles decentralized apartments or homestays, the unmanned hotel model may face risks such as the issue of reporting formalities and licensing, industry insiders noted.
