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
-
296 | Flexible Business Model: Apartment-hotels are an emerging trend in an industry in crisis
It’s well known extended-stay-hotel and short-term-rental sectors have done better than their transient hotel counterparts during the coronavirus pandemic. Even before the crisis hit, residential-type accommodations were seeing a growth in interest from travelers as well as investors. The COVID-19 outbreak is proving mixed developments of hotel rooms, leased apartments and owned condominiums offer a unique value proposition during and after the pandemic. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
-
295 | Doing Well: Coronavirus pandemic advances wellness design and programs in hotels
The coronavirus pandemic is forcing the lodging industry to rethink health and wellness. Designers such as Blanche Garcia of B. Garcia Designs see this as an opportunity for hotels to revise their messaging beyond clean and safe by introducing wellness products and programs they can market and attract guests who want to feel good during their stay and return home feeling better than when they left. Those who promote healthy buildings as well as safe travel are exploring how implementing elements of wellness can be a cure for hotel businesses struggling to survive the COVID-19 pandemic and the subsequent economic downturn. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.