Here, a fractional short-term vacation rental marketplace, has announced the cessation of its operations after just over two years. The Miami-based startup, which had secured approximately $5 million in funding, cited the “current interest rate environment and economic conditions” as the reasons for its closure. The company stated its intention to sell all of the properties it holds within the next six months.
Key Takeaway
Here, a fractional short-term vacation rental marketplace, has ceased operations, attributing its closure to the prevailing interest rate environment and economic conditions. The company aims to sell all of its properties within the next six months.
Financial Challenges and Revenue
According to a filing with the U.S. Securities and Exchange Commission, Here reported a net loss of $56,374 from its properties for the six months ended June 30, 2023, despite generating $276,233 in revenue during the same period. The company also disclosed paying $166,305 in interest and $58,920 in “other expenses.”
Business Model and Founder
Here, founded in July of 2021 but launched operations in 2022, provided investors with the opportunity to acquire partial ownership of vacation rentals. The company managed the properties and offered members the potential to earn monthly income and property appreciation. CEO and co-founder Corey Ashton Walters, who also co-founded Homeworthy, a remote cloud real estate brokerage, was at the helm of the startup.
Impact of Interest Rates
Here’s closure adds to a series of proptech startups facing challenges due to the surge in interest rates. The recent layoff of the entire staff by short-term rental provider Frontdesk and the reported shutdown of Zeus Living after raising $150 million in debt and equity last November underscore the broader impact of the current interest rate environment on the industry.
