Kasa Raises $40M to Invest in Technology, AI

Kasa, a tech-enabled hospitality brand specializing in boutique hotels and apartment-style lodging, announced it has secured a $40 million growth investment. The funding round, led by Silver Lake Waterman, will be used to significantly accelerate the company’s investment in technology and artificial intelligence (AI), bolstering its proprietary hospitality operating system.

The company, founded in 2016, partners with real estate owners to transform and manage properties more efficiently. Kasa’s model leverages technology and a centralized operational backbone to enhance both the guest experience and property owner profitability. This new capital injection will allow Kasa to double down on its technological edge, providing independent hoteliers and real estate partners with a sophisticated platform that has previously only been accessible to large hotel chains.

Roman Pedan, founder and CEO of Kasa, stated that the company is “building a better way to operate hospitality properties: one that’s lighter, smarter, and more profitable.” The funding will drive the development of new systems designed to optimize performance across Kasa’s portfolio of over 85 properties in more than 45 U.S. markets.

Kasa’s focus on AI is a key differentiator in the crowded hospitality and short-term rental market. The company uses AI to streamline and automate numerous operational functions, from guest communication to pricing and maintenance. For example, AI-powered systems analyze guest inquiries to categorize them by urgency, ensuring that critical issues are addressed immediately. They also use large language models as a “co-pilot” for their guest support teams, providing context-aware, recommended answers that improve response times and efficiency.

This tech-first approach has contributed to Kasa’s recent growth, which has seen the company more than double its business in the past year, surpassing $100 million in annual booking revenue. The company has also forged partnerships with major institutional real estate owners like Starwood Capital, Berkshire, and Greystar, validating its scalable and profitable model. The strategic investment from Silver Lake Waterman underscores the market’s confidence in Kasa’s vision to redefine hospitality through a blend of institutional-grade professionalism and technology-driven scalability.

The funding will support Kasa’s ongoing efforts to scale its operations and further integrate predictive analytics. By leveraging data to anticipate guest needs and optimize property performance, Kasa aims to maintain its position as an industry leader. This investment not only highlights the growing role of AI in the hospitality sector but also signals a broader trend of technology-first solutions gaining traction over traditional, capital-intensive models.