Hangzhou-based Zhuyou Hotel Group’s COO Yangqing Shi said its Pod Hotel has completed a Series C financing round.
Self-proclaimed “new generation” Zhuyou Hotel Group has positioned the Pod Hotel and Pod Motel brands in the economy hotel market and the Z hotels and Mangirl Apartment brands in the mid-range market.
With profits sliding in the economy hotel market, major hotel groups have been crossing over into the mid-range hotel market. However, with the limitation of its positioning targeting the younger segments, Z hotels has made much slower progress compared to Huazhu Hotel’s J1 and Plateno Hotel’s five mid-range brands.
Pod Hotel’s won US$74 million investment from Legend Capital in its Series A financing round in February 2010. This initial investment helped the budget brand expand its portfolio of a dozen hotels and put it on the path of expansion.
Next, Pod Hotel received funding of US$55 million in the Series B financing round from Fidelity ventures, Legend Capital, KTB, Morgan Creek and CCB Principle Capital in June 2012. By this time Pod Hotel had already grown to 300 hotels, and Zhuyou Hotel Group CEO Hui Zhu ambitiously laid out plans to scale up to 1,000 hotels within three years.
However, Mr. Zhu might be feeling anxious now as the deadline for his grandiose plan draws near and its portfolio of 500 properties fall well short of his target.
Although Zhuyou Hotel Group hasn’t revealed the amount of its C series investment, the funding that came after a three-year hiatus is not only a lifesaver for the brand but will also provide a financial buffer for future development.(Translation by David)
