Real estate crowdfunding portal Realty Mogul today announced the successful conclusion of what it claims is the first crowdfunding of an operating hotel in the United States, when it announced it has sold out more than $1.5 million in shares in the Hard Rock Hotel in Palm Springs to 85 investors in the United States.
The Hard Rock Hotel Palm Springs is a 163-room resort located two hours north of Los Angeles.
Kittridge Hotels and Resorts is the majority owner.
“Our staff is thrilled we have the privilege of servicing our new owners at the hotel and treating them all to an exceptional level of VIP service,” said Kittridge’s Andy Carpiac.
In addition to a financial interest in the hotel, the investors receive additional perks, including 25 percent room discounts, free use of exclusive cabanas, and no-charge upgrades.
These perks serve an additional purpose according to Realty Mogul CEO Jilliene Helman.
“Hospitality makes so much sense coupled with crowdfunding. Not only can hotel owners raise capital for their projects, but they can drive bottom line results through a network of investors that are staying at the property, touting the property and encouraging their friends and relatives to frequent the property.”
Hospitality makes so much sense that the industry can expect similar announcements in the future, Helman said.