You Won’t Believe How This Hotel AI Startup Scored €2.8M Without Even Trying!

In the bustling world of hospitality, the role of a hotel General Manager is multifaceted, often involving a myriad of daily tasks that can eat up considerable time. Typically, their mornings start with checking the Property Management System (PMS), tracking revenue, pulling payroll reports, analyzing occupancy rates, and logging into the Food & Beverage (F&B) system. This routine, although essential, can be tedious and is ripe for automation. Enter Otel AI, a startup poised to streamline these operations.

Founded in Dublin in 2025 by entrepreneurs Paul Ryan and Nikhil Patil, Otel AI aims to tackle the inefficiencies faced by hotel General Managers. Their innovative platform integrates seamlessly with existing hotel systems—such as PMS, revenue management, payroll, F&B, and guest reviews—consolidating them into a single interface. Unlike other solutions, such as Mews and Apaleo, which simply add another dashboard, Otel AI automates many of these tasks, allowing hotel staff to focus on providing exceptional service.

Otel AI’s design ensures that every output is traceable to its source data, maintaining oversight by human staff for key decisions. With an emphasis on security, the platform is ISO 27001-certified and compliant with the General Data Protection Regulation (GDPR), keeping sensitive hotel data secure within the clients' environments.

In a significant boost for the company, Otel AI recently announced that it has raised a total of €2.8 million in funding since launching just six months ago. This includes €800,000 from investors Nebular, Baseline, and Angel Invest, followed by a €2 million round led by Playfair, where Nebular also increased its stake.

Why Playfair and Why Now

Initially funded by Ryan and Patil themselves, Otel AI’s journey took a pivotal turn when they showcased their product to real customers, demonstrating tangible results. Just four months after its product launch in summer 2025, Playfair approached Otel directly, leading to an off-market investment deal grounded in proven customer satisfaction rather than merely theoretical projections.

Ryan explained to Tech Funding News, “There was no theoretical pitch. General Managers were already using Otel every morning and seeing the results. When an investor can talk to a customer and hear that directly, it shortens the conversation quickly.” This focus on tangible outcomes was key in attracting Playfair's interest.

For Ryan, the funding terms were intentionally straightforward. He opted for a founder-friendly structure, emphasizing operational priorities over high valuations at this stage. “The gap between ‘working’ and ‘scaling’ is hiring. We needed to go from two founders doing everything to a proper engineering and product team. Without this round, we’d still be live with a handful of hotels instead of onboarding dozens. This capital has enabled us to bring speed to our execution plan,” he shared.

Currently, Otel AI is collaborating with various partner hotels in Ireland and the UK, including the O’Callaghan Collection, Fitzpatrick Castle Hotel, Johnstown Estate, and Killarney Park. A notable achievement includes an impressive 8.6% year-on-year RevPAR increase at The Alex Hotel in Dublin, realized in just the first three months, all without the need for additional staffing. The platform at The Alex Hotel now also encompasses F&B, payroll, and guest reviews, demonstrating the comprehensive nature of Otel AI’s capabilities.

With this latest round of funding, Otel AI is poised for significant growth. The financial support will be utilized to expand their product and engineering teams, accelerate their expansion into the UK, Europe, the US, and the UAE, and establish a self-serve onboarding process that further simplifies integration for new clients.

As the hospitality industry continues to navigate post-pandemic challenges, solutions like Otel AI are not just advantageous; they may well be essential for hotels aiming to enhance operational efficiency and improve guest experiences. With the backing of investors who believe in their vision, Ryan and Patil are set on a path that could redefine how hotels manage their daily functions.