“Since day 1 we have been acutely focused on driving value to our hotel owners through technology advantages and contextually responsive design and we're thrilled to see that Blue Flag has recognized this value and formalized a long-term partnership with us,” says Rami Zeidan, CEO and founder of Life House. “To date, we have only raised $10 million in venture capital and this partnership further demonstrates our ability to scale a lifestyle hotel brand and management company in a capital-efficient manner to maximize returns for our venture capital investors.”

Life House uses propriety software to improve its profitability by reducing the costs required to operate a hotel through automating and centralizing back office functions, with direct booking and lower cost digital marketing. They have created seven different software products in-house. This includes a guest-facing mobile app with a social network, automated financial accounting and reporting, and an employee-facing app that reduces management staff in hotels.

“Our mission is to create a global network of lifestyle hotels that make travel more meaningful and more affordable, while also making it more seamless and more profitable for hotel owners,” Dunn tells GlobeSt.com. “We fundamentally do this through proprietary software solutions, innovative workflows and our people.”

This latest equity deal follows its recent taking over operations at The Roberts Collection. The historic property includes a manor built in 1846. In April, Blue Flag acquired the Nantucket, MA lodging. Life House will begin restorations in the fall 2019.

Terry Sanford, co-founder of Blue Flag, says they selected Life House with a competitive process. “Since we closed on the acquisition this past spring and in advance to reposition the asset, they are already driving approximate 40% higher total revenue with nearly 80% direct web bookings,” he says. Sanford adds Blue Flag is looking to build their portfolio with Life House across the country.

Life House notes it has venture backing from investors including Global Founders Capital, Comcast Ventures and Trinity Ventures to develop proprietary technology that increases incremental revenue and automates operations to yield higher returns. They are planning a Series B fund raising this summer and by 2020 plan to have over 20 hotels open or under construction.