Shark Tank Update: What happened to Hotels by Day after the show?

Hospitality industry veterans Brian Dass and Yannis Moati appeared in episode 17 of Shark Tank season 8. They pitched Hotels by Day, a business that allowed travelers to book a hotel room during the day for a short-period stay, promoting guest flexibility. They sought an investment of $750,000 in exchange for 10% equity.

Hotels by Day aimed to capitalize on the hospitality industry by providing day room services that most hotels did not offer. They targeted customers who did not want to pay for the 24-hour stay when they only needed a room for a 'daycation.'

Despite presenting a convincing pitch, technology experts and entrepreneurs Brian Dass and Yannis Moati failed to get a single offer from the Sharks. They left the show empty-handed but continued to grow their business since. In 2020, when the COVID-19 pandemic broke out, their business was impacted as people started working from home. However, their company boomed after customers began looking for an isolated and quiet workplace.

Soon, they partnered with international hotels and expanded overseas. They continue to have an active business with an annual revenue reported to be around $5 million.

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Shark Tank season 8: Hotel by Day's journey explored

Shark Tank business Hotels by Day gave customers a list of hotels that offered rooms for a personalized time window. Guests could select from the list and confirm their bookings using the company's user-friendly website or app. At the same time, the model also benefited the hotels that partnered with them since they could offer their rooms throughout the day instead of just at night.

During their pitch, they revealed that their six-hour "day stay" cost $90. When Shark Tank business mogul Kevin O'Leary asked why other hotel booking sites did not offer the 'daycation' service as an added feature, Yannis explained that they lacked the technology for it.

The entrepreneurs elaborated on their 'channel management' system, but the Sharks seemed unimpressed. They nodded their heads in disapproval, confused by their explanation. When Shark Tank investor Chris Sacca asked how their technology differed from existing technology, Brian and Yannis struggled to deliver a convincing answer.

"It's just a hack," Chris said.

Hotels by Day owners then stated they had 6500 bookings to date and generated a revenue of $127,000. Seeing Chris unimpressed by their numbers, Yannis explained that they were not competing with hotels but rather the booking software in the market. However, it was not enough to persuade Chris, who criticized the entrepreneur's pitch and opted out.

Soon after, Mark Cuban also backed out, citing their "tiny" numbers as one of the primary reasons for his decision. Robert Herjavec liked their business model but feared that renowned hotel chains would soon duplicate their technology and overrun them in the hospitality business. Consequently, he refused to make an offer.

Businessowner Lori Greiner claimed multiple angles of their business model lacked explanation, and because of those reasons, she was out. Kevin was the sole Shark Tank investor left, but he also refused to make an offer, stating that their pitch was difficult and confusing.

Although Brian and Yannis left Shark Tank without an offer, they succeeded in keeping their business afloat. In 2018, they had expanded to cover over 450 hotels, 50% more than the 300 hotels they had partnered with during the filming of Shark Tank. However, their growth was slow, as Mark had anticipated.

In 2020, when the world came to a standstill with the COVID-19 outbreak, Hotels by Day suffered a significant loss. Their bookings were reduced by 82%. However, it soon benefitted them as people working from home began looking for a quiet and serene place appropriate for work. People started turning to Hotels by Day to work from a hotel room instead of their homes.

By 2021, they managed to recoup some of their loss as 'work from hotel' started making waves among corporate employees. Hotels by Day quickly became a frontrunner in the niche. In June 2022, the company went international, partnering with hotels in major European cities. As of now, their annual revenue is reported to be around $5 million.

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Shark Tank season 16 airs every Friday at 8 pm ET only on ABC.