The making of Algoritmi
Our people, process, and ideas
Our Vision
Our future vision is 50,000 locations and 150,000 beds to cover 10% of digital nomad accommodation.
Our Japanese Philosophy
Meet the Visionaries
2017
Pre-foundation
Narumi and Maiko met at Narumi’s kitchen in Tokyo.
While operating the kitchen as a rental space, they developed a unique method to maintain a clean and comfortable communal kitchen used by an indefinite number of people.
The business was successful, and it was right before they decided to expand the business when the COVID pandemic came.
2020
Early Foundation
During the COVID pandemic, Narumi sought a new startup business model to invest in.
Considering the development of mobile technologies and the alternating people’s lifestyles over the past century, they decided to start a delivery-only restaurant business known as a “ghost kitchen”.
Coincidentally, Hiromu was looking for a kitchen with the same idea.
Within a year, their famous Todai (University of Tokyo) Curry, whose founders are all graduates from the University of Tokyo, became the top 1% of sales in the Uber Eats app in the south-eastern Tokyo area.
They decided to establish a company, which is today’s Algoritmi.
Meanwhile, Ryutaro was introduced by a mutual friend of Hiromu and joined the board.
2021
The business expanded into three kitchens, including one central and two branch kitchens, to cover a more comprehensive delivery area in Tokyo. Hiromu also developed a system integrating a direct order website and an in-house delivery operation.
2022
Pivots
Since the company aimed to find a startup idea, the team accumulated knowledge on optimizing daily operations and designing valuable kitchens.
However, the food delivery sales declined as the pandemic gradually settled down.
The company searched for different business areas, but the concept was consistent: utilizing the IT solution to optimize the operation and enable disruptive scalability.
The team worked on multiple projects, such as the elderly care and accommodation business. Shirley joined the company as an advisor.
After many successes and failures, Narumi gained a fascinating insight into the hostel chain and how it can be a billion-dollar business model by utilizing his experience and existing technologies.
2023
Discovery
In October 2022, Algoritmi opened its first hostel in Takayama by renovating a 100-year-old traditional Japanese house.
The city is very famous for its cultural experiences and nature.
Since 2023 spring, after the Japanese border opened to foreign travelers, the city has been thriving again for tourism. Algoritmi’s hostel was fully booked throughout the summer and experienced an 80% average occupancy rate.
Tourism is a strong trend in the 21st century, and technology has enabled more people to travel internationally, much cheaper and more accessible.
For example, many features in tourism today were beyond people’s minds several decades ago, such as low-cost carriers, mobile booking, and dynamic pricing.
Algoritmi defines a hostel as an accommodation with a shared bathroom and kitchen.
Unlike the widely acknowledged recognition, the future of hostels can appeal to various target groups, not only solo travelers but also couples and family groups, with affordable prices.
Sina joined the company as an advisor for her decade-long experience as initially a digital nomad. She was one of the guests who stayed in Algoritmi’s hostel.
Algoritmi presents at the Web Summit 2023 in Lisbon.
2024
Acceleration
In 2024, Algoritmi opened four new branches in Takayama and expanded its capacity from 30 beds to 80.
These hostels are the prototypes of Algoritmi’s Smart Hostel. Each house is connected through cameras and interactive video calls so the staff can manage multiple properties simultaneously.
The Smart Hostel is a new operating technology with high efficiency and scalability that strengthens the ability to maintain a high standard of cleanliness and hospitality.
Today, Algoritmi is prototyping the management dashboard and accumulating practical data to prepare for full-scale system development and AI utilization.
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