Zonetail Secures Series A Financing For Hotel App.

App developer and tech startup Zonetail Inc. (Zonetail) has raised roughly $1.7 million in Series A financing through private investors. The round of financing will help further develop its “anchored local” white-label hotel app, and grow its market and revenue.

Zonetail is a free mobile app and platform, custom-branded to hotels, which connects guests to the full range of hotel services and businesses in the surrounding neighborhood. The app platform taps into people’s desire to travel to new cities, but to shop, dine, and explore like a local, according to the company. According to a 2014 Trip Barometer survey, 90% of U.S. travelers use their mobile phones when vacationing. Further, 62% used it to search for restaurants, 52% to look for activities, and 62% to search for hotels.

To date, Zonetail has signed agreements with more than 100 hotel properties in 10 Canadian provinces and 15 U.S. states, including three offshore hotels. The company is also in negotiations with major international hotel chains to launch the app on a chain-wide basis, according to the company.

The app is free for hotels to use, with revenue streams coming from retail advertising from the surrounding area.