"Crush you like the cockroaches you are" - When Shark Tank investor Kevin O'Leary shared his take on Hotels By Day vs. industry giants

Shark Tank season 8 episode 17 aired on February 17, 2017, and featured a pitch from Hotels By Day, a company aiming to revolutionize hotel stays by offering short-term daytime bookings. Founded by Yannis Moati and Brian Dass, the company sought a $750,000 investment for 10% equity. However, their pitch quickly faced skepticism from the Sharks.

During the Shark Tank episode, Kevin O’Leary questioned the viability of Hotels By Day against established hotel booking platforms. He challenged the founders on why major industry players couldn't replicate their model. As the pitch continued, O’Leary made his stance clear, stating,

“Why don’t the big guys crush you like the cockroaches you are?”

Despite efforts to defend their business, Moati and Dass struggled to convince the Sharks. Their seemingly unclear responses regarding proprietary technology and scalability led to all five investors declining the deal.

As of 2025, the Hotels By Day's website is still active, providing various locations all around the globe.

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The Hotels By Day pitch on Shark Tank

Yannis Moati and Brian Dass introduced Hotels By Day in Shark Tank as a solution for travelers needing short-term hotel stays. Their platform allowed customers to book hotel rooms for six to eight hours, catering to business travelers and those seeking a "daycation."

The service was designed to fill gaps in the market by utilizing unoccupied hotel rooms during daytime hours.

Explaining the revenue model, Moati stated that hotels provided day-use rooms at an average price of $90, from which Hotels By Day took a 14% commission. By 2015, the company had completed 6,500 bookings, generating approximately $127,000 in gross revenue.

However, the Sharks immediately raised concerns. Mark Cuban compared the pitch to a "Saturday Night Live skit," while Robert Herjavec questioned:

"Dennis, hang on a sec. There's a technical reason why the other people can't offer this on a block hour rate? Yeah. I'm dying to hear this.”

Moati and Dass argued that existing hotel booking technology could not support short-term reservations. They claimed that most property management systems were outdated and not designed for day-use bookings.

Chris Sacca pressed for further clarification:

“Before we move on, how have you solved that technology problem with your own outside technology?”

Dass explained that they bypassed traditional central reservation systems by connecting to channel management systems, allowing direct booking access. Moati added that their approach was "provisionally patented," though he did not elaborate on the specifics.

Despite these explanations, the Sharks remained unconvinced. Robert Herjavec pointed out that the technology was not a true barrier to entry, suggesting that major hotel chains or established booking sites could easily replicate the model.

“Let’s say Kevin’s one of the other travel sites. He hires a CTO that can develop it. You didn’t write the software,” he said.

O’Leary questioned why established hotel chains wouldn’t simply implement day-use booking features themselves.

Moati reiterated that Hotels By Day provided a necessary workaround to existing systems, but O’Leary remained skeptical. Chris Sacca also expressed frustration with the Shark Tank pitch. He told the founders:

“What you're doing is you're selling somebody else's product, and you're telling us they're incapable of selling it. But you've done a really poor job of explaining why that hack is so hard to make or why it's defensible or why it's proprietary to you at all.”

Mark Cuban cited the company’s low revenue and potential competition from larger industry players as reasons for passing.

“Your numbers are too tiny,” he said before exiting.

Robert Herjavec acknowledged the concept's appeal but ultimately declined, stating that the idea could be easily replicated. Lori Greiner also passed, citing gaps in the business model.

With all five Sharks declining to invest, Hotels By Day left Shark Tank without a deal.

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Shark Tank airs every Friday on ABC at 8 pm EST.