Start-Up Spotlight: Nappr Turns Daytime Napping Into a Business Opportunity for Hotels
Good sleep can be hard to come by. No one knows this better than Jared Lerner, Founder and “ZzZEO” of Nappr.
“I’ve had a number of medical problems that have interfered with my ability to get a good night’s sleep,” he explains. “Plus, I love to travel, but layovers make my sleep issues even worse. I used to combat my exhaustion with caffeine, but what I really wanted was to be able to take a nap and help my body recover from its exhaustion naturally.”
Unlike some European countries, the United States — unfortunately — does not have a cultural appreciation for naps during the middle of the day. But the need for sleep during the day is a very real problem affecting a significant portion of the population. As Lerner talked to friends and family about this, he realized he wasn’t the only one looking for a solution. And so, the idea for Nappr began to develop.
From Dream to Reality
Lerner has had quite the journey with Nappr. Incorporated in 2014, the company originally had a completely different business model. Lerner initially wanted to offer a brick-and-mortar location where people could go to take naps using a membership model.
“It would have been like a gym, but for napping!” he notes.
For three years, Lerner and his co-workers tried to make that model work with little success because it required a lot of capital. Eventually, one of his advisors asked them to rethink their model and try a marketplace similar to Airbnb, where individuals could rent out their homes for just a few hours at a time.
“We were going to launch with that model in 2020, but the pandemic hit, and no one was traveling or allowing strangers into their homes. So, we kept brainstorming,” he explains.
A few years later, Nappr was approached by one of its competitors. They told Nappr they partner with hotels to offer day rates and asked if they wanted to do a revenue share. When Nappr found out that some hotels have daytime vacancies of more than 40%, it made sense.
“Back in 2014, I had no idea we would be partnering with hotels. But it makes so much sense. They’re reliable, comfortable, and generally a business/brand that consumers know and trust,” he states.
How It Works
Consumers can book a room on Nappr via either its website or mobile app (available on both Android and iOS). On the backend, Nappr works as an aggregator. It connects to companies that have already partnered with hotels to display room inventory and pricing, showcasing that information on its website and app.
“While we’re primarily an aggregator, we do have the capability to connect directly to hotels’ property management systems — via an API — and we’d love to work with as many of them as possible,” he points out.
Regardless of how hoteliers get their properties on the Nappr platform, Nappr allows them to set their price and the time blocks their rooms are available.
“They have complete control over their own inventory and can change pricing and availability on demand. It’s a very flexible system that allows them to generate revenue in rooms that would otherwise be sitting there unused,” he says.
According to Lerner, the average order value in New York for a daytime rental is about $120. Nappr takes a commission of about 14%, and the hotel then has to pay to have the room turned by housekeeping. Of course, different cities have different price points. However, even with costs factored in, Nappr still allows the hotel to turn a profit with a healthy margin.
Rapid Expansion & Success
When Nappr officially launched in 2023, it had 10 hotels in New York City listed on its platform. Now, it boasts more than 1,000, including all the major national brands: Marriott, Hilton, Hyatt, Sheraton, Holiday Inn, Sonesta, etc. It also has quite a few boutique brands, offering a nice selection for consumers.
“If you do a search on any given day, you’ll see 60 to 70 hotels listed in just the five boroughs alone. It’s a great mix of companies and price points. I’m very proud of our supply!” he asserts.
Startup Experience Powers Confidence
Lerner is no stranger to startups. While Nappr is the first startup he’s personally funded and founded, he’s been working at many other startups in New York as a software engineer for the last 17 years.
“I saw these smaller companies that had such a great culture and were based on some really amazing ideas, and I knew I was meant to do that too one day. It also helped that I was studying entrepreneurship in my MBA program at NYU. So, I was exposed to many different case studies of startups, and that gave me the confidence to start Nappr,” he says.
What’s Next?
According to Lerner, Nappr has some pretty ambitious goals for its future. A short-term goal is to gain as much inventory as possible on its platform, with the magic number hovering around 10,000 hotels. That would mean Nappr is truly available everywhere.
Lerner hasn’t given up on the Airbnb model and plans to revisit that option to give consumers more variety in price points and locations. He’s also still considering the idea of brick-and-mortar locations, specifically within airports, so consumers don’t have to leave for a nap during layovers.
“I think there is a lot of value in all three of these business models. The goal is to offer as many locations and options as possible to our customers so they never have to travel more than 10 to 15 minutes to find an affordable place to relax,” he states.