Loomzy Suites, a prop-tech startup based in Lagos, Nigeria has today announced its plan to expand its operations to turn around the face of hospitality and hotel management using technology.
Since its launch in May 2021, Loomzy Suites has hosted over 1,300 guests across its 3 boutique hotels located in Lekki, Lagos while operating at a capacity of 80-85 per cent. Like several other industries, the outbreak of COVID-19 has spurred the hospitality industry adapt innovative ways that will enable effective and efficient customer experience.
Speaking to the adoption of technology to aid its processes, Uloma Okoro said, "the COVID 19 Pandemic brought about two basic needs in the hospitality sector - Space and Automation. By space, I mean the need for social distancing and strict observation of Covid-19 Protocols. This is where technology comes in with contactless check-in and full automation of house keeping services. Automation has become necessary because of how complex the hospitality sector is.
She further stated that, "it is necessary to compartmentalize and automate processes to avoid leakages and ensure standardization in processes like hotel booking, to food and inventory management, to the use of facilities and amenities within the hotel'
Currently, Loomzy Suites is using the AirBnB model [an online marketplace that connects people who want to rent out their homes with people who are looking for accommodations in that locale] to reduce contact and also automate booking processes for its customers and also ensure safety of lives and properties.
How Loomzy Suites is raising funds
Loomzy Suites launched with over 115 million Naira pre-seed fund, after six months of operation, the proptech startup intends to raise capital for the next growth phase of the business via its private network, equity through a private placement.
Speaking on its plans to raise funds, Uloma Okoro, Loomzy Suites CEO said "most of my seed capital was raised through friends, family, my network and then people who have followed me closely on Social Media. The funds were raised as debts with fixed interests, based on agreed terms and conditions with the investors. At the moment, a good number of these investors have decided to become shareholders in the business; thereby turning their loans to equity".
According to the company, this funding will see the business expanding its operations beyond 15 rooms while fine tuning its technology to deliver top-notch service and quality through contactless processes and operations. The technology will embody an end to end process where booking to checkout can take place on a guest’s mobile device.
"We are ready to register a full service hospitality firm by selling 40% of the company’s shares through Private Placement. We are also giving room for new investors who believe in the vision to invest in the business", Uloma added.
With over 900 million Naira ($1.7M) valuation, Loomzy Suites financial forecast is to have a Profit Before Tax of 133.8 million Naira in 2022, an amount expected to double by the end of 2023 at N328.1M and by the end of 2026, it projects a profit of N514.7M. The company which only started officially this year has received serious commitments for at least 35% of its shares from potential investors and stakeholders.
This business has been structured in a way that it’s entire revenue does not come from lodging and serving just its guests but also catering to non-guests through its strategic business units which provide competitive yet affordable massages, kitchen and laundry services.