Hotel veteran Michael Levie, who has stepped back from his day-to-day role as COO of CitizenM, and Bangkok-based branding strategist David Keen have created KUBE Ventures as an incubation lab for hospitality start-ups to drive and create fundamental change, emphasizing technology, operations and human resources.
To empower new ideas, KUBE Circle brings together industry leaders to create a global think tank for knowledge sharing, education and networking. It will also be its own catalyst of start-ups. KUBE Conscience, an appointed board to measure the values and potential of each entity, will act as a moral gateway for the lab.
HOTELS reached out to Levie and Keen to find out more about their plans for KUBE Ventures.
HOTELS: Tell us about the investment made in KUBE Ventures.
Levie: It is supported by senior hospitality industry shareholders. It’s first purpose is to assist start-ups in the hospitality space, on a success basis; taking them from the incubation stage to acceleration. On a solid funding round there is the choice to pay KUBE for its rendered services or compensate in participation shares.
H: Have you backed any new start-ups yet?
Keen: KUBE has received an overwhelming number of requests and we can speak of a well-filled pipeline. Currently, there are several finalizing discussions with start-ups being had.
H: Do KUBE Circle participants invest in these potential start-ups?
Levie: In Q4, the KUBE Circle app will come alive, connecting all participants in the Think Tank. Members firstly will invest by offering their knowledge, experience and time. Once delivering this specialty knowledge and working with start-ups it could very well be that it results in their financial or time investment for a longer period of time.
H: Who are the KUBE Conscience participants?
Keen: For now, the KUBE Conscience board is formed by three participants, who will build out the group. The governance is being finalized and there is actually a lot of interest from companies for KUBE to assist them with their very own conscience board.
H: You say “the moment is now” to create change. Can you elaborate?
Levie: Isn’t it always and hasn’t it always been that way? I know the pandemic serves as a catalyst, but there have been incubators for years.
Think of all the digital comfort when one is not traveling. Retail, banking, automotive and others are setting the pace. Inconceivable that the demand from the guest stops at the hotel doors. You mention the pandemic and, yes, some have not let a good crisis go by and focused and made the required progress. Also, environmental and social governance are replacing standalone sustainability, as well. An LED light bulb and a green key symbol at the entrance door isn’t enough anymore. We will need to focus on life cycle of our buildings, social behavior towards our teams and guests, and operate wisely.
H: The hotel industry is notorious for being laggards in tech. How will KUBE Ventures make a bigger difference?
Levie: There is no escape from digital for hotels, guests will simply only use those that offer similar quality and ease of use as retail and banking. For that, a serious upgrade from tech architecture is needed. The PMS can simply not be anymore the connector and open API platform or middleware will need to be used. This very well might be the push that everyone has been waiting for, legacy is no option anymore. The first open API platform is available and at very attractive pricing. It has its very own Webster with brilliant functionality apps, that work seamlessly. Want to do your own special software? The site offers all API´s as downloads free of charge.
H: How does KUBE Ventures make money?
Keen: KUBE will work on a success basis with start-ups and be paid at funding or be compensated in shares. BAM, Behind Asset Management, which focuses on all intangible KPIs beyond asset management will require a long-term commitment to work with ownership or C-level to invoke a mind shift.
H: What are the short-term and long-term goals?
Levie: Get well out of the gate in 2021, with a full start-up/BAM focus year in 2022. KUBE will take its place amongst other great initiatives in our industry to invoke and catalyze that speed required right now in transformation.