Ghost kitchen operator Butler Hospitality has raised $15m in Series A investment round to expand its operations.

The round was led by &vest, while Mousse Partners and the company’s existing investors Scopus Ventures, Kraft group and also participated.

Founded in 2016, Butler Hospitality works by using hotel kitchens as delivery hubs to supply meals to in-house guests and nearby hotels. The service is currently available in New York, US.

The company designs its own food and delivers it directly to respective hotel rooms.

With the latest fundraising, the ghost kitchen operator has procured a total of $20.2m. It is currently valued at $85m.

Butler Hospitality plans to use the proceeds to expand beyond New York City and foray into other US cities. The company plans to launch its services in Chicago, Miami and Washington by January next year.

The company also intends to use a section of the funding to increase its service offerings.

Butler Hospitality founder and CEO Tim Gjonbalic said: “The trust and support we have received from our investors is an incredible encouragement for our team.

“As the hospitality industry navigates the challenges of Covid-19, we have strived to adapt and meet the demands of our customers and continue to support our partners.”

As part of its response to the pandemic, the company has delivered more than 175,000 meals to healthcare workers, quarantined senior citizens, patients and military personnel staying in partner hotels.