Anyone who is on business from time to time knows the problem: If the population of the city visited falls below 700,000, the hotel landscape quickly looks gloomy. What is available is expensive and often not convincing from a qualitative and aesthetic point of view. The WERK1 startup Limehome solves this problem.
SPARE HOME INSTEAD OF HOTEL
Limehome offers business travellers and tourists fully equipped apartments as a feel-good alternative to an impersonal hotel. Thanks to a specially developed, tasteful and high-quality design concept, every guest feels at home. Limehome Apartments are currently located at 14 locations in Germany. Above all in so-called “B-cities” such as Aachen, which with one million overnight stays has an appreciable demand that is nevertheless unprofitable for large hotel chains as a location. These markets would be predominantly served by aging family hotels á la “Goldener Hirsch”, as the two Limehome founders Lars Stäbe and Josef Vollmayr aptly call them.
As former McKinsey consultants, they knew exactly where to start with the classic hotel business model in order to open up a promising niche. Everything that doesn’t have to be done directly on site is controlled centrally from the Munich office. The electronic access system, with which the guest can check in independently at any time, replaces the cost factor of service personnel. Cleaning is carried out by a local service provider. A “state-of-the-art”- IT department coordinates all internal and external interfaces. And last but not least, a sophisticated, agile pricing system ensures a workload far above the industry average. “Instead of the usual 53 percent for February, we are currently at 78 percent,” explains Josef.
Thanks to this highly efficient business model, the company is also much more flexible in real estate acquisition. Limehome does not need 150 bed units to be profitable. Instead, normal commercial units, which are often vacant in B-cities, are used to accommodate the ideal number of 10 to 20 apartments.
WERK1 – REAL COMPANIES ARE CREATED HERE
The founders already had the idea for Limehome during their time at McKinsey. After a first test run at the beginning of 2018 and a successful seed round in the autumn, they got off to a full start. To date they have been able to arrange over 2,000 overnight stays – and with more than 20 employees they are already reaching the limits of their WERK1 office space. But it will be used as long as possible! Even before the official foundation, Lars and Josef applied for an office space in WERK1. Although already in the concrete implementation phase, Lars, Josef and their team like and appreciate the strong community in WERK1 very much. Completely different from the coworking space in the city centre, where they were first located for a short time, here in WERK1 there is exactly the atmosphere that such an ambitious startup needs. After all, the number of locations and employees is set to double in 2019. In this sense, the WERK1 neighbourhood perfectly reflects the permanent condition at Limehome: many, many construction sites … and an exciting future!
CAREER AT LIMEHOME?
Do you want to help shape this future? Take a look in there Limehome-Career Portal!