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227 | Mass Appeal: Crowdfunding for hotel development mines new sources of cash
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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.
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330 | Youthful Perspective: Industry leader Bijal Patel mourns the loss of ‘an entire generation’ of hospitality workers
Bijal Patel, 31, is CEO of Coast Redwood Hospitality and the youngest chair of the California Hotel & Lodging Association. He’s made even more history at CHLA by agreeing to serve an unprecedented second term as the lodging industry emerges from the coronavirus pandemic. Patel is a third-generation hotelier. Being so steeped in hospitality at such a young age is not new for members of the Indian American hotelier community, but Patel fears the pandemic has drained the industry of emerging talent. Lodging Leaders spotlights Patel, who represents a leadership demographic that is fighting for the life of the hospitality industry as they watch their peers veer toward other career paths.
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329 | Ruff and Ready: ADA gives hotels a short leash when accommodating guests with service animals
Many hotels these days have made room for guests with disabilities. Hotel managers and staff should also know what the Americans with Disabilities Act says about accommodating guests with pets. During the pandemic lockdowns, a lot of people added a pet to their household and now they’re bringing Fido along on vacation. Hotel employees need to know how to cater to both consumers who are pet owners as well as guests who travel with a trained service animal. Episode 329 of Lodging Leaders podcast reports on how the ADA defines a service animal and how a hotel is legally obligated to serve a guest who comes with a dog or any other animal.