This funding was a combination of debt and equity.
Launched in 2020, Qstay was co-founded by UAE resident Artur Khayrullin, cO-CEO; Ukrainian born Ekaterina Rogozhina, CCO; Ukrainian American Alec Fesenko, cO-CEO and his wife Natalya Fesenko, the initial investor.
Currently, Qstay operates nearly 200 properties in the UAE and Europe, and 200 more have been signed.
The company expects to have 450 revenue generating units by the end of this year.
Operating as a virtual hotel brand, Qstay offers luxury hotel-like services and amenities such as bathrobes, slippers, luxury toiletries, bathroom amenities, tea, Starbucks coffee.
It also offers digital app-based access to nearby pools, beaches, gyms and spas for its guests staying in beachfront properties.
It expects portfolio to grow to more than 600 units and to achieve revenue of $50m next year.
Qstay founder and cO-CEO Artur Khayrullin said the capital will be used to “accelerate the amazing growth we’ve seen so far.”
The concept plans to expand to at least five cities across Europe and the Middle East during the next 12 months.
Khayrullin said: “Driven by QSTAY’s differentiated digital service model, the Company can reduce operating costs by as much as 50% compared to traditional hotels. Through innovative technology, additional digital services such as mobile-based access to the facilities of top beach resorts and thoughtfully designed accommodations, QSTAY is revolutionizing the hospitality industry.
“With one of a kind modernised service, our guests experience an uncompromising quality with inspiring design at a price point that democratizes access to an extraordinary hospitality experience.”
The company leases units in top locations, and then upgrades and furnishes them to luxury standard and supports them with luxury hotel-like services and amenities.
Although the company doesn’t own any of its units, these “are directly leased and managed by Qstay.”
Presently, Qstay is developing a tech-driven platform to offer seamless booking, digital concierge and an on-demand platform for maintenance and service.