Hotels By Day’s Appearance on Shark Tank
On February 17, 2017, the 17th episode of Shark Tank’s eighth season showcased Hotels By Day, a company aiming to transform traditional hotel experiences by providing short-term daytime reservations. Founded by Yannis Moati and Brian Dass, the duo sought an investment of $750,000 in exchange for 10% equity in their innovative venture. However, their pitch encountered immediate skepticism from the Sharks.
Shark Tank Feedback
As the presentation unfolded, Kevin O’Leary questioned the sustainability of Hotels By Day’s business model compared to established hotel booking platforms. He provocatively challenged the founders, questioning why larger industry players wouldn’t simply replicate their service. O’Leary’s critical remark was:
“Why don’t the big guys crush you like the cockroaches you are?”
Despite Yannis Moati and Brian Dass’s attempts to clarify their business strategy, their responses on key aspects like proprietary technology and scalability did not assuage the Sharks’ doubts, resulting in all five investors declining to invest.
Business Model and Market Need
On Shark Tank, Moati and Dass positioned Hotels By Day as an essential solution for travelers needing brief hotel stays. This platform enables customers to book rooms for durations of six to eight hours, targeting both business travelers and those in search of a convenient “daycation.” The service aims to optimize unused hotel capacity by filling rooms during daytime hours.
Moati highlighted their revenue model, revealing that hotels provided day-use rooms at around $90 on average, taking a 14% commission from each booking. By 2015, Hotels By Day had facilitated 6,500 bookings, accumulating approximately $127,000 in gross revenue.
Challenges from the Sharks
As the Sharks scrutinized the pitch, Mark Cuban likened the presentation to a comedic sketch, while Robert Herjavec probed deeper:
“Dennis, hang on a sec. There’s a technical reason why the other people can’t offer this on a block hour rate? Yeah. I’m dying to hear this.”
Moati and Dass contended that standard hotel booking technology could not cater to short-term reservations due to outdated property management systems. Chris Sacca further pressed for information:
“Before we move on, how have you solved that technology problem with your own outside technology?”
In reply, Dass explained their strategy of bypassing traditional central reservation systems by utilizing channel management platforms for direct booking capabilities. Moati mentioned that their technology was “provisionally patented,”but did not provide further detail.
Investor Skepticism and Final Thoughts
Despite their explanations, skepticism remained. Herjavec noted that the technological barriers weren’t as formidable as the founders suggested, remarking that established companies could effortlessly develop a similar service:
“Let’s say Kevin’s one of the other travel sites. He hires a CTO that can develop it. You didn’t write the software,” he said.
O’Leary echoed this concern, questioning why larger hotel chains wouldn’t integrate similar day-use booking features on their platforms. Moati maintained that Hotels By Day offered a crucial workaround, but O’Leary’s skepticism persisted. Sacca expressed frustration, telling the founders:
“What you’re doing is you’re selling somebody else’s product, and you’re telling us they’re incapable of selling it… you’ve done a really poor job of explaining why that hack is so hard to make or why it’s defensible or why it’s proprietary to you at all.”
Cuban ultimately rejected the investment opportunity, stating that the company’s sparse revenue and the looming threat of competition from larger entities were significant deterrents:
“Your numbers are too tiny,” he said before exiting.
The other Sharks joined the consensus, with Robert Herjavec acknowledging the concept’s value but concluding that it could be easily replicated by larger firms. Lori Greiner also opted out, pointing out flaws in the business model.
Current Status of Hotels By Day
With all five Sharks refusing to invest, Hotels By Day exited Shark Tank without securing a deal. As of 2025, however, the Hotels By Day website remains operational, offering bookings across various global locations.
Watch the Pitch
For a closer look at their pitch, you can view it here.
Shark Tank continues to air on ABC every Friday at 8 PM EST, providing entrepreneurs a platform to showcase their innovations.