Lyric Hospitality’s Spinout: Wheelhouse Raises $16 Million in Funding
In mid-2020, short-term rental startup Lyric Hospitality faced significant challenges due to the pandemic. The company, which aimed to provide an alternative between hotels and Airbnb by offering a seamless, apartment-style experience for travelers, saw its occupancy plummet. However, instead of shutting down, Lyric’s management team pivoted and spun out a new company called Wheelhouse.
Wheelhouse: A New Era in Short-Term Rentals
Wheelhouse is the brainchild of Lyric’s founders, who recognized an opportunity to create a more comprehensive platform for short-term rentals. By leveraging the technology and expertise gained from Lyric, Wheelhouse has emerged as a leading player in the flexible living space.
Key Features and Growth
Wheelhouse offers a range of features that cater to various types of travelers:
- Mid-length stays: Wheelhouse has expanded its focus beyond traditional short-term rentals, offering stays ranging from 30 days to nine months.
- Multifamily partnerships: The company works with multifamily companies, providing them with tools and expertise to integrate short-term rentals into their existing portfolios.
- Individual hosts and entrepreneurs: Wheelhouse still supports individual hosts and small businesses, enabling them to build their own flexible living spaces on top of the platform.
Growth and Funding
Wheelhouse has experienced remarkable growth since its inception:
- 100% overall growth: Over the past nine months, Wheelhouse saw 100% overall growth.
- 45% growth in Q1: The company’s first-quarter growth rate was an impressive 45%.
- 500% to 600% B2B growth: Wheelhouse’s business-to-business (B2B) segment experienced a significant surge in growth, reaching 500% to 600%.
To fuel its continued expansion, Wheelhouse recently secured $16 million in funding from Highgate Ventures and NEA.
The Vision Behind Wheelhouse
Wheelhouse’s founders have stated that their goal is to make flexible living more accessible and appealing. They aim to achieve this by:
- Finalizing core technology: The company will focus on refining its inherited technology from Lyric.
- Pricing mid-length stays: Wheelhouse plans to develop pricing strategies for longer-term stays.
- Underwriting short-term rentals: The company will work on developing more robust underwriting capabilities for short-term rentals.
The Future of Flexible Living
Wheelhouse is well-positioned to capitalize on the growing demand for flexible living spaces. With its expanded focus, partnerships with multifamily companies, and individual hosts, Wheelhouse is poised to revolutionize the way people live and travel.
As Mary Ann Azevedo notes in her reporting, "It’s a small team, but it’s doing millions of ARR [annual recurring revenue], and you just don’t see that very often."
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Stay tuned for more updates on Wheelhouse and the evolving world of short-term rentals.
