Stay Solution Startup ‘The Hyoosik’ Secures $11.5 Million from TS Frontier Proptech Fund
In a bold move within the hospitality industry, Korean startup The Hyoosik has successfully completed a Series B funding round, raising an impressive 16 billion won ($11.5 million). This funding round was solely supported by the TS Frontier Proptech Fund, leading The Hyoosik’s total investment to reach 22.8 billion won ($16.8 million).
Establishing itself as a pivotal player in Korea’s setting for small and medium-sized hotels, The Hyoosik has built an imposing portfolio of 170 hotels. The company thrives on a cloud-based SaaS subscription model, catering to the needs of 1,110 hotels. Furthermore, The Hyoosik is pioneering in providing an unmanned central control solution, known as Front Outsourcing (FO), to 100 hotels, marking significant strides in the industry’s operational methodologies.
Targeting the expansive 20 trillion won ($14.4 billion) market, The Hyoosik spans a comprehensive value chain that includes hotel project management (PM), construction, operation, and innovative cloud solutions. The company goes beyond servicing the hotel market, venturing into developing and managing 7 tourist hotels and running 3-star hotels under globally recognized brands. This ambitious reach aims to tap into the hospitality market, which is estimated to be worth over 30 trillion won ($21.7 billion).
One of The Hyoosik’s standout innovations is its unmanned stay solution, which integrates state-of-the-art IT automation to bring efficiency and new revenue streams into the accommodation facilities and building management services. Additionally, the company’s construction subsidiary is morphing into a full-service general construction company, pushing the boundaries of data-driven hotel branding, planning, and interior construction.
The introduction of a proprietary model and the Expected Sales Analysis System (ESAS) by The Hyoosik has revolutionized hotel value evaluation, dramatically reducing the assessment period from one month to just one hour. With over five years of successful hotel operations, The Hyoosik has established itself as a reliable operator in the industry. The company is also transitioning to target institutional investment markets, teaming up with asset management firms to enhance its financial avenues.
Underpinning The Hyoosik’s success is its robust business model and the top-performing hotel brand ‘Acok’, which has consistently driven financial growth. Last year, the company showcased consolidated sales of 55.4 billion won ($40 million) and an operating profit of 5.1 billion won ($3.6 million), demonstrating a rapid growth trajectory without any operational losses since inception.
Lee Dae-yeol, the head fund manager of TS Proptech Fund, underscored the strategic aim of this investment. He stated, “The TS Frontier Proptech Fund is designed to provide timely funding aligned with the growth stages of Proptech companies. By bringing together strategic investors aligned with our business strategy, we aim to optimize the growth of target companies.” Lee further elaborated on the significance of investor composition in creating business synergy and projected future fund plans to support the growth phases of Proptech companies.
This recent investment not only secures vital capital for The Hyoosik but also establishes a strategic alliance that bolsters the company’s foundation for sustained growth. It represents a critical step forward in achieving The Hyoosik’s vision for expanding its influence within the accommodation and hospitality industry, promising a bright future ahead.
