Germany-based hospitality startup Cosi Group has raised €20 million to accelerate expansion in Europe.
Vienna-based real estate group Soravia joined the round alongside existing investors Cherry Ventures, e.ventures, Kreos Capital, Bremke and the founders of Flixbus, Travelperk and Comtravo.
Founded in 2019, Cosi develops new technology solutions for the real estate industry, focusing on hotels and apartment rentals. Cosi’s tech-enabled properties combine the quality of a boutique hotel with the comfort of a private apartment.
Cosi’s OS can dynamically adjust prices up to 1,000X per day, automate 80% of the guest journey and navigate housekeeping while automating early check-ins.
Despite the coronavirus pandemic, Cosi says that in 2020, it achieved 90% booking occupancy at 12 locations in Europe and triple RevPAR. It claims it outperformed traditional hotels by 400% and has seen the average length of stay increase by about 60%.
Cosi says it automates operational processes by up to 80%, enabling hotel operators to save up to 60% through restructuring. Cosi currently has 750 units under contract, with 1,500 more under negotiation.
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In addition to European expansion, Cosi will use the new funds to implement a new brand and launch a new strategic business unit.
"In recent months, there has been a seismic shift happening in the real estate industry. The cards are being completely reshuffled. During COVID, we have consistently proved the resilience of our model - and the results speak for themselves,” says Christian Gaiser, co-founder and CEO of Cosi Group.
“The fresh capital enables us to take advantage of the current opportunities and establish Cosi as a European leader. The backbone of our mission combines well-connected real estate investors and experienced tech. We are very grateful for their support and trust.”
Says Soravia CEO Erwin Soravia: "Cosi is building an asset class for the new generation. We have not seen a similar approach with such a strong execution. Cosi breaks with existing industry dogma, both in terms of guest experience and property partners.
“Cosi's model allows for a better return on investment than a hotel product while providing the same downside as a residential apartment – a win-win situation for real estate partners. That's why we're excited to accompany Cosi in its next phase of growth."