Placemakr Raises $65M, Surpassing $350M in Total Funding
WASHINGTON, March 21, 2023 /PRNewswire/ -- Placemakr, a flexible-use multifamily and hospitality operator, today announced $65M in new funding, surpassing $350M in total capital raised. This announcement comes alongside the appointment of Timothy G. Franzen, former president of Graduate Hotels, to its C-suite. Placemakr's property operations model drew funding participation from venture capital and major real estate investors alike, including Highland Capital Partners, Harbert Growth Partners, Bernstein Management Corporation, Camber Creek, Gaw Capital USA, and more. In addition to securing outside investments, Franzen's appointment to Chief Development Officer marks a key moment of expansion for the organization. In this role, Franzen is leading the company's effort to expand and grow inventory under management through partnerships with major real estate owners and developers across the country.
The flexible-use multifamily and hospitality property operator appoints Chief Development Officer to fuel further growth
WASHINGTON, March 21, 2023 /PRNewswire/ -- Placemakr, a flexible-use multifamily and hospitality operator, today announced $65M in new funding, surpassing $350M in total capital raised. This announcement comes alongside the appointment of Timothy G. Franzen, former president of Graduate Hotels, to its C-suite. Placemakr's property operations model drew funding participation from venture capital and major real estate investors alike, including Highland Capital Partners, Harbert Growth Partners, Bernstein Management Corporation, Camber Creek, Gaw Capital USA, and more. In addition to securing outside investments, Franzen's appointment to Chief Development Officer marks a key moment of expansion for the organization. In this role, Franzen is leading the company's effort to expand and grow inventory under management through partnerships with major real estate owners and developers across the country.
With this funding, Placemakr will continue doubling down on property acquisitions and developer partnerships throughout the U.S. to meet the consumer demand for apartment-style hotels, short-term rentals, and flexible-living accommodations. Placemakr has raised over $350M in capital since it was founded, managed over $1B of real estate assets on its platform, operated 1M+ room nights, and has serviced over $100M in bookings since the start of COVID, indicating accelerating market demand for this new asset class from consumers and property owners alike. The company will look to continue to expand its partnerships, alongside its geographic footprint, to further solidify the flex-use property as a mainstay asset class in commercial real estate.
"The trend of flexible-use housing continues to gain steam as cities adjust to our new travel and living patterns created by remote work. In addition to residential multi-family buildings shifting to mixed hospitality and residential use, we're also seeing an influx of office conversions as these properties in prime locations continue to sit vacant," said Jason Fudin, CEO and Co-founder of Placemakr. "We're witnessing a reshaping of downtown cities' structure and function, and we're proud to lead that conversion alongside our investors and development partners."
Tim Franzen joins Placemakr, having previously served as President of Graduate Hotels, where he co-authored the business plan and led the growth of the brand's portfolio over its first six years. Over the course of his 26-year career, Franzen led the acquisition of 34 hotels, totaling over 7,000 keys, and the ground-up development of eight hotels totaling over 2,000 keys, including a Westin, an InterContinental, and six Graduate Hotels. In his new role at Placemakr, he will use this experience to support the company's expansion and inventory growth through partnerships with third-party owners.
"Innovation is the backbone of Placemakr and was the primary driver for my desire to join the organization. I am eager to bring my experience to Placemakr as we create something new in the industry," said Franzen. "I'm energized to be a part of something that one day we'll look back on and pinpoint as the beginning of a fundamental shift in the commercial real estate industry, blending hotel and multifamily uses into the same building and in a truly flexible way."
Placemakr leverages its tech-enabled platform to provide multifamily developers and owners the flexibility to transform existing properties into commingled spaces, effectively combining multifamily and hospitality uses in one building. This announcement comes on the heels of two new property launches, Placemakr Wedgewood Houston and Whyhotel by Placemakr, Columbia. In addition, Placemakr recently announced a partnership with Bernstein Management Corporation and Urban Atlantic to acquire an office building on K Street in DC and convert it into a hotel-apartment hybrid property. These partnerships are emblematic of the shift in real estate overall, creating new functions for underutilized existing space in the heart of our city centers. This funding round and new hire announcement will continue to fuel future innovation and growth in 2023 and beyond.
To learn more about Placemakr, please visit www.placemakr.com.
About Placemakr
Placemakr is a flex-use hospitality and residential operator, and real estate investor. Its tech-enabled operating platform allows the company to blur the line between hospitality and home, delivering the best experiences of both in a single building. Placemakr's curated spaces in hand-picked neighborhoods allow its guests and residents the flexibility to stay for a night, a year, or anywhere in between. Visit placemakr.com to learn more.
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SOURCE Placemakr
