US: The owner of Southern California’s Hard Rock Hotel Palm Springs is selling stakes in the 163-room luxury resort.
Investors will receive benefits including improved bookings, room-rate discounts and free use of a poolside cabana set aside for hotel owners. The offering is the first of its kind for an existing hotel, according to online marketplace Realty Mogul and Kittridge Hotels & Resorts LLC, the property’s majority owner. The minimum investment is $10,000.
Kittridge is seeking to raise $1.5 million within four weeks to build a new nightclub at the Hard Rock and recoup some of its original investment, said company president Andy Carpiac. Kittridge spent $8 million on a renovation of the property after buying it for an undisclosed sum in September 2012.
Carpiac said: “We expect a fairly large amount of investor interest because we have many fans of the hotel and the brand. They come here and stay with us, they spend money here, they bring their friends and family and act like real owners, which they should. It benefits them and it benefits us.”
Steve Cinelli, CEO of online marketplace Primarq said: “With crowdfunding in the lodging space, what you’re looking to do is not just provide a stake in a hotel but also perks. Besides raising capital, you’re building an audience. That’s why lodging makes so much sense for crowdfunding.”
Primarq, which brings together property owners and investors, is planning to use the strategy to raise money for two hotels in the San Francisco Bay area, where the company is based, Cinelli said.