HOHM Inc.

High-Tech Sleeping "Pods"

Company Information

Website:

https://hohm.life/

Sector:

Lodging

Location:

San Diego, CA

HOHM is a service designed to help you catch a nap when you need it most.

Its custom-designed sleep “pods” are stationed in areas where short-term shuteye is in high-demand. These areas include airports, college campuses, and busy offices.

Customers can book hourly stays in the pods via HOHM’s mobile app, and on-site HOHM attendants ensure each pod is clean and ready to go.

HOHM has already made considerable progress. For example:

* It partnered with mattress giant Tempur-Sealy (NYSE: TPX) to provide quality mattresses in each pod.

* After launching at the University of Arizona, it's already signed a contract with a second university.

* And it's taken part in the SXSW Startup Spotlight program and San Diego International Airport’s Innovation Lab.

If it keeps growing, it could one day be an acquisition target for a hospitality company like Airbnb, a travel company like TripAdvisor, or a work-focused company like WeWork.

HOHM was created to solve a simple yet widespread problem: where can you find a comfortable, private, short-term place to sleep on the go?

A lack of sleep isn’t just an inconvenience. It has a significant effect on students, doctors, business workers, and the general economy. According to a Harvard study, sleep deprivation costs the U.S. workforce an estimated $63 billion.

Each HOHM pod allows for complete relaxation, and an escape from hectic environments. Users have the opportunity to recharge their batteries, literally and figuratively.

Pods are 7x7 feet in size, and include a twin mattress provided by sleep giant Tempur-Sealy. Additional features include a private sound-blocking curtain, overhead LED skylights, ventilation fans, and charging ports for electronics.

Each pod can be assembled in 3 to 4 hours, and plugs into a standard electrical outlet.

The service works in conjunction with the HOHM mobile app, which customers use to book available pods. Users select the time that works best for them, and receive a confirmation code upon booking.

In addition, each pod has an HOHM attendant on-site to help each guest feel comfortable. The attendant's duties include helping guests check in and out, cleaning the rooms, and changing the sheets after each use.

HOHM offers both short- and long-term rentals of its pods. Short-term rentals include temporary placements of pods, typically for 2 to 30 days. Clients who rent the pods are charged on a per-day, per-unit basis, and users are charged an hourly rate.

Examples of short-term clients include major conference hosts, movie sets, sports training camps, award shows, and construction sites. Renting out two short-term pods for a two-day business conference, for example, translates to about $6,000 in revenue for HOHM.

Long-term placements are geared toward universities and businesses. These contracts typically range from six months to two years.

At universities, HOHM initially provides 4 pods at a discount, and gives students 2 free hours per month. HOHM funds these pods via "brand partnerships": essentially, mattress, pillow, and sheet companies pay to have their products featured in the units, which helps increase their brand awareness.

Schools pay a fee for additional units, and students pay for additional hours. The hourly rate ranges from $10 to $12, depending on the pod’s location. This model enables HOHM to attract users quickly, and can help it scale to campuses nationwide.

For pods located at businesses, companies pay HOHM a set monthly price based on the number of pods installed. Employees receive 2 to 4 free hours per month, and are charged the hourly rate for any additional hours.

Using an example with a two-year contract with four pods, HOHM projects to generate $105,000 in annual revenue, and nearly $50,000 in profits.

In December 2018, HOHM launched at the University of Arizona. It received 39 bookings its first week, and 175 in the first three months. 22% of the usage was from repeat users. Since then, the company has signed a contract with a second university, and is in talks with four others.

In addition to its partnership with Tempur-Sealy, HOHM has deals with Mediflow to provide pillows, and Ettitude for sheets.

Moving forward, HOHM plans to target airports. For example, the company aims to get long-term placement at the San Diego International Airport. And it's in talks with Los Angeles International Airport, too.

HOHM would likely pay a monthly fee to each airport based on the square footage it rents. It would charge travelers a higher hourly rate to offset its rent costs. These deals could bring in between $30,000 to $100,000 in additional monthly revenue.

In addition, HOHM is in discussions with healthcare companies, where it hopes to close its first partnership in Q2 2019. The company is also working on an updated mobile app and is developing an "outdoor" version of its pods. Its goal is to be in 100 universities and businesses within five years.

Team Background

Nik Woods - Founder & CEO

Nik has first-hand success starting and selling companies.

He founded Lightbox Medical, a company selling medical supplies for diabetics, which was acquired in 2015.

He also founded Blabtree, a social media platform targeting students.

He earned a Bachelor’s degree in Business Administration from University of San Diego.

Brett Lee - Chief Technical Officer

Brett brings extensive technical experience to HOHM.

He was a senior software engineer with PlayStation, responsible for designing new projects and overseeing one of the video game company’s development teams. He was also a software engineer with Sony Entertainment.

Prior to that, he was a senior software engineer for Redemption Games, a video game developer. In addition, he served in the same role for PatientSafe Solutions, a medical company focused on communication between doctors and patients.

Brett earned a Master’s degree in Software Engineering from California State University.

James Overton - Lead Developer

James has more than seven years of engineering experience.

He has been a software engineer with multiple companies, most notably Electronic Arts (NASDAQ: EA), the second-largest video game developer in North America.

He was an engineer for Seamgen, a mobile application development company, and Leica Biosystems, a medical device supplier.

He earned a Bachelor’s degree in Computer Systems Engineering from Stanford University.

Kyle Mellor - Director of Partnerships

Before joining the team at HOHM, Kyle was an account executive with CourseKey, a company creating software solutions for the education industry.

He was a sales manager for San Diego Running Co., and a client services manager for Alternative Strategies, a marketing company.

Kyle earned a Bachelor’s degree from the University of Delaware.