Korean startup ‘The Hyoosik’, an IT-based comprehensive accommodation solution company, has announced a successful Series B investment round, securing 16 billion won ($11.5 million) from TS Frontier Proptech Fund. This brings the total investment amount to 22.8 billion won ($16.8 million), entirely facilitated through TS Investment’s TS Frontier Proptech Investment Association.
The Hyoosik has carved out a dominant position in Korea’s small and medium-sized hotel market, with an impressive portfolio of 170 hotels and a cloud-based SaaS subscription model serving 1,110 hotels. Additionally, the company provides an unmanned central control solution (Front Outsourcing, FO) to 100 hotels.
Capitalizing on a 20 trillion won ($14.4 billion) market, The Hyoosik offers a comprehensive value chain encompassing hotel project management (PM), construction, operation, and cloud solutions. The company has expanded its reach by developing and managing 7 tourist hotels and operating 3-star hotels under global brands, addressing the broader hospitality market valued at over 30 trillion won ($21.7 billion).
Unmanned Stay Solution & Rapid Growth
A notable innovation from The Hyoosik is its unmanned stay solution, integrating advanced IT automation. This new business venture has opened fresh revenue streams through consignment operations of accommodation facilities and building management services. The company’s construction subsidiary is evolving into a full-fledged general construction firm, extending beyond data-driven hotel branding, planning, and interior construction.
The Hyoosik has revolutionized hotel value evaluation with its proprietary model and Expected Sales Analysis System (ESAS), reducing the assessment period from one month to just one hour. Over five years of successful hotel operations have cemented its reputation as a dependable operator. The company is also transitioning from individual wealth markets to institutional investment markets through partnerships with asset management firms.
The Hyoosik’s robust business model and its top-performing hotel brand, ‘Acok’, have driven consistent financial success. Last year, the company reported consolidated sales of 55.4 billion won ($40 million) and an operating profit of 5.1 billion won ($3.6 million), maintaining a rapid growth trajectory without incurring any operating losses since its inception.
Lee Dae-yeol, head fund manager of TS Proptech Fund, highlighted the strategic importance of this investment, stating, “The TS Frontier Proptech Fund is designed to provide timely funding aligned with the growth stages of Proptech companies. By bringing together strategic investors aligned with our business strategy, we aim to optimize the growth of target companies.” Lee emphasized the importance of investor composition for creating business synergy and outlined plans for future funds to support Proptech companies‘ growth phases.
This investment aims to accelerate The Hyoosik’s strategic execution and bolster its foundation for sustainable growth. The collaboration between The Hyoosik and TS Proptech Fund marks a significant step towards achieving the company’s long-term vision and expanding its influence in the accommodation and hospitality industry.
Keep tab on latest news in the Korean startup ecosystem & follow us on LinkedIN, Facebook, and Twitter for more exciting updates and insights.
