China private hotel booking SpaceBox raised RMB 50 mln in venture capital
Aug 14, 2019 (China Knowledge) - Chinese startup SpaceBox, founded in April 2017, has raised a total of RMB 50 mln in venture capital. The startup renovates privately operated hotels, then markets them to customers who are looking for space they can rent on an hourly basis.
As at the end of 2018, SpaceBox had contracted with over 30 hotels and had an inventory of more than 1,000 rooms in major cities of China. Meanwhile, the chain has been expanding roughly 500 rooms every month, founder and CEO Yan Chengfeng said.
SpaceBox's business model is to renovate hotel rooms so they can be used for purposes other than sleeping and can attract several paying guests within a day. In addition, it uses an automated check-in system to replace first-floor reception areas, so the space can be rented out to restaurants and retail shops.
SpaceBox hires construction workers and contractors, and built a supply chain that allows it to renovate an entire hotel in 30 days at a cost of RMB 10,000 to RMB 25,000 per room.
The startup receives over 90% of its reservations through its official social network accounts. One manager handles two to three hotels, keeping tabs on management data and service quality. This has allowed SpaceBox to reduce manpower cost by 20%.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI