CONSTRUCTION
227 | Mass Appeal: Crowdfunding for hotel development mines new sources of cash
CONSTRUCTION
When it launched five years ago, crowdfunding for real estate development was a hot topic, especially among hotel developers seeking new ways to pay for their projects.
Though it’s not creating the same level of buzz as it did when it first became a federally sanctioned option in 2014, crowdfunding remains a viable tool in attracting a wide range of investors and sourcing new streams of cash.
Basically, crowdfunding is a campaign for small amounts of money from a large number of people. It is friends and family financing gone viral.
We talk to hotel developers who are using the alternative financing method to raise cash for their projects.
The projects are vastly different, as are the fundraisers’ goals, and target investors.
One is a boutique property in a resort market, and the developer plans to raise the entire construction cost via crowdfunding. The other is a midscale branded hotel in a technology park, and the firm is selling shares to close a funding gap.
Featured in today’s report is Nathan Kivi, founder of HotelierCo, an online fundraising company targeting hotel development; and Bhavik Dani, founder of EquityRoots, another fintech venture that’s raising capital for one project while about to break ground on another.
We also explain the evolution of crowdfunding, and why the federal government gave the technology its nod of approval as part of a national economic recovery program.
Anyone considering raising money for a project over the internet, or investing money via an online program, should first consult a professional adviser.
Resources and Links
- Nathan Kivi, founder of HotelierCo
- Bhavik Dani, founder of EquityRoots
For more information on crowdfunding visit:
The SEC study mentioned in this report is titled “Capital Raising in the U.S.: An Analysis of the Market for Unregistered Securities Offerings, 2009‐2017” and can be accessed here.
CONSTRUCTION
-
287 | The Long Haul: Extended-stay hotels show their strength in a crisis
Extended-stay hotels are weathering the coronavirus crisis better than their transient cousins, according to reports. The Highland Group’s half-year report shows economy and mid-priced extended-stay hotels are faring better than upscale extended-stay accommodations. Second-quarter earnings reports from companies such as Extended Stay America prove the resiliency of the sector, especially when sales teams shift their focus to new prospects such as college students, leisure travelers who value the kitchen and essential workers in it for the long haul. Long Live Lodging examines what gives extended-stay its muscle in a weak economy. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
-
285 | ‘Allure of the Door’: Exterior-corridor hotels trending in COVID-19 pandemic
Almost overnight, the roadside motel is a hot commodity. Travelers are going by car and when they stop they want the safest stay possible. The coronavirus pandemic has pushed health and safety to the top of hotel guests’ most-favored-amenity list and exterior-corridor properties appear to provide more of a risk-free stay than their interior-corridor cousins. Long Live Lodging examines the new shine travelers have put on exterior-corridor motels during the COVID-19 crisis and how brands heavy with motel-style properties are responding to the trend. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.