A single bet of 20 billion won… Which hotel startup is making good money?

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As the number of foreign tourists visiting Korea increases rapidly, the domestic accommodation market is emerging as a beneficiary sector. Amid this trend, comprehensive accommodation solution startup The Hyusik recently secured 65 billion won in pre-IPO (pre-listing equity investment). Notably, VIP Asset Management, known as a "value investing powerhouse," attracted attention by contributing 20 billion won of its own funds, marking the largest amount ever invested by the firm in an unlisted company.

This investment was made through a project fund established with TS Investment and VIP Asset Management serving as co-general partners (Co-GP). The total includes 15 billion won from the sale of existing shares by current shareholders, bringing The Hyusik's cumulative fundraising to 107.8 billion won.

TS Investment is an existing investor that has participated in every investment round since Series A. VIP Asset Management, which previously invested indirectly as a limited partner (LP), expanded its investment scale and role by participating as a co-general partner this time.

Park Dong-woo, Head of the Alternative Investment Division (Director) at VIP Asset Management, explained, "Having watched The Hyusik for a long time, we highly evaluated its business model and the capabilities of its founding team." He added, "Our internal research analysts also judged the increase in foreign tourists to be a medium-to-long-term trend rather than a temporary phenomenon," noting that "The Hyusik's proven rapid revenue growth was a key background factor for us to move from indirect investment as an LP to direct investment."

Founded in 2019, The Hyusik's core business model is an "asset-light" approach that focuses on developing and operating hotels rather than directly owning them. The company identifies and introduces accommodation facility properties to real estate investors such as asset management firms, while providing feasibility analysis and remodeling services to owners of existing hotels or motels.

Even after hotel development, the company supplies its own kiosks, Internet of Things (IoT), and unmanned monitoring systems, and takes on operations management to generate continuous revenue. The structure combines development and construction profits with IT solution usage fees and outsourced operation revenues.

Division Head Park stated, "We develop hotels, install systems, and then operate them for several years to earn profits," adding, "It was impressive that the business can generate revenue at each stage."

The fact that newly developed hotels can become future outsourced operation clients also contributed to the investment decision by enhancing revenue predictability. To date, The Hyusik has performed property management (PM), operations, and consulting for over 300 accommodation facilities nationwide, including its own small-to-medium hotel brand "Anuk." Its proprietary cloud IT solution has been adopted by more than 1,300 locations.

The Hyusik's core competitiveness lies in the data accumulated during the operation of accommodation facilities and its proprietary IT technology. The company has secured operational data, including room revenue, labor costs, and advertising expenses, from approximately 150 accommodation commercial districts nationwide, using this to analyze expected revenue and profitability for new hotels.

By understanding the actual sales and operating costs of nearby accommodation facilities, business viability can be predicted more precisely than when relying solely on general commercial district information such as foot traffic. According to The Hyusik, its in-house developed AI-based system can calculate the expected revenue of a specific hotel in about five seconds. This accumulated data serves not only for reviewing new businesses but also as an entry barrier that competitors find difficult to acquire in the short term.

Operational efficiency through IT also contributes to improved profitability. The company integrates the management of multiple accommodation facilities using kiosks, IoT, and unmanned monitoring systems to reduce labor costs.

Shin Hyun-wook, co-CEO of The Hyusik, explained, "In some residential accommodation facilities, we have established a system where three people perform tasks that previously required 10," adding, "We automate repetitive tasks to support employees in focusing on high-value-added work such as customer service."

The vertical integration structure, where internal organizations and subsidiaries handle everything from hotel planning to design, construction, operation, and IT, is also a strength. This approach reduces costs and time compared to outsourcing and allows operational data to be utilized for new hotel development.

Thanks to this business structure, performance has grown sharply. Last year's consolidated revenue was 181.7 billion won, and operating profit was 20.3 billion won, representing increases of 91% and 93%, respectively, compared to the previous year. The company has recorded operating profits for five consecutive years, with an operating profit margin of 11.2%.

VIP Asset Management focused on The Hyusik's profitability and reasonable corporate valuation despite the sluggishness of the KOSDAQ market.

Division Head Park stated, "Some deep-tech companies listed on the KOSDAQ receive high corporate valuations based on future growth potential even if they do not generate profits, but The Hyusik is a company that actually generates high profits," adding, "We judged the investment price to be reasonable even by traditional corporate valuation assessment standards."

The expertise of the two co-founders was also instrumental in The Hyusik's growth. Shin (CEO) is a serial entrepreneur who previously founded Toss Study, a premium study room operator, and sold it to IS Dongseo, a KOSPI-listed company, in 2017. Co-CEO Kim Jun-ha is a real estate development expert who built his career at Mirae Asset Securities and E-Tas Real Estate.

Shin (CEO)'s past experience operating nationwide educational facilities based on IT has been applied to building the hotel operation system, while Kim (CEO)'s expertise in real estate development and finance is being utilized in hotel development and cooperation with institutional investors, creating synergy.

The company is currently strengthening collaborations with global hotel chains. Following a memorandum of understanding (MOU) signed with Marriott International last year, the company concluded a brand contract for "Series by Marriott" in February this year. In September, it unveiled its first domestic location, "Anuk Signature Seoul Guro." The Hyusik has also collaborated with Coreumco Life Infrastructure REIT, with three hotels developed by The Hyusik included in the REIT.

Leveraging this investment, The Hyusik plans to invest up to 100 billion won by next year to expand its mid-scale hotel business (3- to 4-star) in major regions such as Seoul and the metropolitan area, and Busan. Aiming for an initial public offering (IPO) in 2028, the company intends to select a listing sponsor by the end of this year or the first quarter of next year.

Shin (CEO) stated, "Not every customer can use a five-star hotel every time. Our competitiveness lies in establishing ourselves as a brand that customers can trust and visit, like 'Starbucks,' in the small-to-medium hotel market," adding, "We will expand our position in the 3rd- to 4-star hotel market through collaborations with global hotel chains such as Marriott International and Hilton Worldwide."

[Money Today startup media platform Unicorn Factory]