Rami Zeidan, the founder and CEO of hotel startup Life House, has resigned from his position, as per a letter to shareholders circulated on Monday and reported by Skift. Christopher Cave, former CEO of online travel agency FlightHub, has been appointed as the interim CEO, effective immediately. Marc Ghobriel will serve as the new interim chief financial officer.
Established in 2017 by Zeidan, Life House operated with two main business segments: managing branded hotels on behalf of owners and offering business-to-business software to streamline operations and boost profitability for hotel owners.
Reports of Zeidan’s departure first surfaced in an article by The Information on February 14, which highlighted customer dissatisfaction among Life House’s hotel clients. According to the article, approximately one-third of the 50 hotels actively using Life House sought to terminate their contracts in recent months.
In response, Life House emphasized its software product, which is used by 70 clients to manage their revenues, citing high customer satisfaction. However, Glassdoor reviews from a dozen employees over the past year revealed anonymous complaints about internal conflicts and grievances from hotel owners.
Notably, Life House had raised over $100 million in funding, with Booking Holdings’ Kayak briefly partnering with the company to create Kayak-branded hotels. However, by the end of 2022, Kayak decided to exit the venture, planning to remove its branding from the three hotels.
In a letter to board members, Life House expressed optimism about its future, acknowledging the significant opportunity for small hotels in the accommodations sector. The company expressed confidence in its new leadership to steer it towards a customer-centric future, with plans for a revised strategic direction forthcoming.
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