Rackhouse Leads AI Hospitality Group’s $7.5M Seed for AI Hotels
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AI Hospitality Group has launched with $7.5 million in Seed round funding. Rackhouse Venture Capital led the round, and Sierra Ventures, Dynamo Ventures and angel investors from the hotel industry joined. Rackhouse founder Kevin Novak now sits on the company’s board as an observer.
The startup is based in Dallas. It describes itself as an AI-native hotel operator whose 60-plus back-office AI agents let on-property staff focus on in-person service. The money will go toward expanding its AI platform and signing up hotels as customers.
Under a management agreement, the company takes responsibility for a hotel’s profit-and-loss statement and runs other back-office operations. Rather than licensing software to operators, it uses its own technology to run hotels and improve margins. Its agents can take on revenue management, accounting, marketing and recruiting.
The hospitality business is under pressure. The company points to data showing that 65% of North American hotels reported staffing shortages in 2025 as labor costs rose, while U.S. hotel EBITDA margins have fallen about 20% since 2019.
Founder and CEO Sloan Dean previously spent more than five years as CEO of Remington Hospitality, a hotel management company in the same Texas city. Co-founder and CTO Kishan Dahya is a third-generation hotelier whose family ran Hilton, Hyatt and Marriott properties, and he previously founded a venture-backed software company. Chief operating officer Eve Moore joined from Magna Hospitality Group, where she was executive vice president of operations, after earlier working with Dean at Remington.
The company launched with two design partners: The Ameswell Hotel in Mountain View, California, and two properties run by Parable Hospitality, an Aliso Viejo, California, firm that manages more than 30 hotels in California and Hawaii. Ameswell managing director Simone Harms is an adviser to the startup.
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