startup
On The Rise
Spokane startup Stay Alfred is redefining travel accommodations written by Kevin Max
IN OCTOBER, travel accommodation rental upstart Stay Alfred raised $47 million in a second round of financing, propelling it into a growth category few Spokane-based startups have ever seen. Its first round of $15 million came in 2017. Stay Alfred, much like its larger brethren, Airbnb, is a webdriven accommodation rental business, but instead of taking on all-comers in its rental portfolio it prefers urban areas with high-end accommodations in nicely furnished new lofts, condos and apartments. Unlike some Airbnb properties, there is no owner on site. Today, Stay Alfred has blocks of rentals in buildings from Austin to Boston and San Diego to Seattle. The concept of living like a local in an upscale downtown property challenges the traditional short-stay hotel model and samples the Airbnb model. It lives in the growing space at the intersection of technology and short-term rentals along with Airbnb, Vacasa, HomeAway and Domicile. 38 1889 WASHINGTON’S MAGAZINE
DECEMBER | JANUARY 2018
“While people love the lifestyle amenities and local exposure vacation rentals provide, you never really know what you’re going to get when you’re booking,” said Stay Alfred founder, Jordan Allen, 36. “It’s sort of like online dating. The pictures don’t always match reality.” A strong economy is the leading factor behind the growing lodging industry. Occupancy and revenue per room rates at hotels have been steadily growing and outpacing the expectations of industry data analysts STR and Tourism Economics. In their joint forecast for 2019, in fact, these entities found unusual strength and revised upwardly their forecast for average daily rates for hotels in mid-year 2018. Private equity and venture capital have pounced on these trends. Seattle-based startup Domicile, for example, got $5 million in seed funding in September, Washington, D.C.based Upside closed $50 million in 2017 and Vacasa raised $103 million in October.
