The bottleneck was operational, not commercial
Nomah operated furnished apartments in residential buildings, rented for a single night or for months at a time, with online check-in, cleaning, maintenance and concierge handled by the operator. It managed units on behalf of individual investors and signed whole buildings with developers. In the first half of 2022 it reported 600 units in operation and 1,500 under contract, with about 90 percent of the portfolio in one city. Loft, its parent company, had put in a capital injection in 2021 for a three-year plan.
Nomah no longer operates. In August 2022 it merged with a regional short-term rental operator; the merged company shut down its operations in the country in January 2023 and dissolved entirely in August 2023. This case describes the system as it worked in 2022 and is written in the past tense for that reason.
The model puts the pressure squarely on turnover. A hotel has its housekeeping team in one building. A flexible-living operator has hundreds of units spread across many buildings, each one becoming vacant at a different time, each one needing a cleaner to arrive, a linen set to be swapped, anything broken to be logged, and the unit to be marked ready in the booking system before the next guest can check in. With bookings that could be one night long, the gap between check-out and check-in was the operation.
The bottleneck was operational, not commercial. The company was signing buildings faster than it could open them. What limited it was that six hundred units' worth of turnovers were being coordinated through a spreadsheet and a group chat.