Photo - Sleepbox
38061

Sleepbox

Modular and smart plug-in hotel rooms

USA, Massachusetts
Market: Logging, Real estate
Stage of the project: Operating business

Date of last change: 23.04.2019
Min investment
$  25.000
Show contacts
Total required
$ 300.000
Rating
equalizer из 1000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:

Idea

Sleepbox, Inc (the “Company”), is an innovative tech-driven micro-hotel platform that brings on-demand hospitality services, privacy, and rest to airports, urban centers, and offices. The Company has produced a flexible modern hotel solution with the creation of modular, high-tech, stand-alone hotel rooms that can be launched anywhere.

Current Status

We have launched our first 16-room location in Dulles Int'l Airport (IAD) 3 weeks ago. First paying and happy customers.

We have scalable, certified solution ready to conquer the world and are in a process of perfecting operations and marketing of the first project before scaling up

Market

The Sleepbox team is well aware that launching a new hospitality brand is highly difficult and competitive. Even with the Company’s unique technology, significant operational advantages, affordability, and construction and time-to-market efficiencies, name and brand recognition are challenging to achieve in the sector. To overcome this, the Company is targeting highly visible travel locations such as airports where on-demand availability of sleep accommodations is greatly needed. Sleepbox’s strategy is to use airports as a niche entry point to pierce the market. Targeting high-traffic/visibility locations allow for profitable unit dynamics along with substantial marketing/PR value and impact. As the Sleepbox name and brand recognition grows, the Company will leverage this in its expansion strategy beyond airports into other high-traffic locations outside of the airport ecosystem.

For maximum market impact, Sleepbox is initially launching and expanding in international airport terminal locations. Sleepbox is launching its first location inside Dulles International Airport in Washington DC in March 2019. This location will include 16 rooms in 1200 sq.ft.in terminal A near the gates of many international airlines. The Company has been working in partnership with the Metropolitan Washington Airport Authority (MWAA) which includes both Dulles and Reagan Airports. MWAA is providing abundant marketing, advertising, and operational support resulting in significant cost savings to the Company. This collaborative partnership also provides novel opportunities, partnerships, and alliances within the airport ecosystem to Sleepbox. The Company sees this as a unique opportunity to launch its service, app, and marketing campaign in the US with minimum investment and maximum impact.This initial Dulles location is projected to generate $1M of revenue a year and required $500K to launch. MWAA’s strategy is to expand Sleepbox into additional 5-8 locations within their 2 airports. Sleepbox is currently in discussions with other airports and airport vendors to expand into additional US airport locations, including Chicago, NYC, LA and in international airports in the Middle East, Europe, and Asia. The Company’s goal is to launch 5-7 lounges, reach 150-200 million eyeballs per year, and build brand recognition before expanding as a city concept. The Company’s long-term vision is to utilize its airport anchor units as a foundation to expand into other high traffic transportation-related venues, co-working spaces, etc in the surrounding areas. In addition, Sleepbox plans to launch city hotel concepts in these anchor cities, unlocking a new market niche between traditional hotels and Airbnb/hostels.

Problem or Opportunity

Today’s generation of travelers has a new set of expectations and needs set by consumer-tech brands that generally center around authenticity, personalized experiences, removal of friction, and on-demand functionality. Current flexible travel and life scenarios dictate the need for accessible privacy and new and unique hospitality services for on-demand locations. The traditional hotel industry has not yet been able to address this need. Sleepbox fills the current gap in the hotel industry by bringing hotel rooms directly to prime high-demand locations.

Solution (product or service)

Using patented, modular, stand-alone hotel rooms powered by leading-edge technology, Sleepbox can launch a hotel where travelers need it – right near airport gates or in the heart of the city at a location that would normally be retail or office space. Each location can be launched in just months for 1/10th of the investment needed for a traditional hotel. Sleepbox’s software platform drives frictionless experiences for users through the Sleepbox app- providing turn-key solutions for operators & making Sleepbox an easy hotel to launch and run.

Competitors

Yotel, MinuteSuites, Napcabs, Moxy - Airpbnb, traditional hotels and hostels depending on local submarkets

Advantages or differentiators

Flexible, smart and lean solution can revolutionize hotel industry. This is a first autonomous plug-in hotel room built as a connected device. This opens great number of new opportunities in the market. Now we can provide consistent, cool and so much-needed service to travelers exactly where they need it.

Finance

The Company raised $1.1MM to date from angels, including industry leaders such as Erik Blachford, ex-CEO of Expedia and IAC Travel and General Catalist - one of the leading VC's in Boston. This initial Dulles project will provide proof of concept for institutional level investors, unlocking the next stage of the company’s expansion strategy. Therefore, the Company has engaged Shiboomi Capital, a US investment bank, to package and lead in a post-Dulles launch $15MM-$20MM project financing as well as support a subsequent $5MM-$10MM corporate institutional equity round to fund the Company’s pipeline projects and expansion strategy. This brings substantial real estate and hospitality project financing as well as corporate financing experience to support Sleepbox’s future institutional financing efforts along with the Company’s growth strategy.

Business model

We run our own hotels and lounges with target profit 50%+ and we use franchise model to expand internationally, where a franchisee pays $15k per room as an initial fee and then 15% of revenue in license/franchise fees. So in this regard we operate as a traditional hotel brand with one major difference - you don't need to build a hotel to launch one and you can launch in 10 times faster and cheaper than a traditional one.

Money will be spent on

Extending runaway to achive next milestones before raising institutional round in September

Offer for investor

Convertible notes, $10MM cap, 20% discount.

Team or Management

Risks

Execution - we have ambitious plans and limited resources. So we need to choose right partners and right battles

Incubation/Acceleration programs accomplishment

Masschallenge 2017 finalist, Airport innovation accelerator - winner.

Won the competition and other awards

The winner of awards for travel innovation and people's choice award at Phocuswright summit.
The winner of airport shark tank 2017, Wework Creator award finalist 2017.
CREtech RETAS real estate awards 2018 - winner.

Invention/Patent

Design patents in the US and EU issued. Trademark (the word "Sleepbox") registered in the US and EU

Photos

Photo 1 - Sleepbox
Photo 2 - Sleepbox
Photo 3 - Sleepbox
Photo 4 - Sleepbox
Photo 5 - Sleepbox

Website address

5,00
1
2
3
4
5
1 voice
Sign in/Sign up
arrow_back
EN
more_horiz
close
visibility21
star0
Add to favorites
Delete from favorites
share
close
thumb_up0
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address