HotelierCo Is the New Crowdfunding Platform That Lets Individual Investors Buy into Hotel Ownership

Think about this for a second: The U.S. travel and tourism industry generated over $1.6 trillion in economic output in 2017, supporting 7.8 million U.S. jobs, according to government data. Of the $.16 trillion economic output, the U.S hospitality industry represents $200 billion of the entire industry.

Before now, only accredited investors could invest in hotels. Enter HotelierCo, an Atlanta-based hotel crowdfunding platform that is leveling the playing field and unlocking an investment market traditionally restricted to institutional investors. U.S. residents over the age of 18 can invest $2,500 and up in early-stage hotel developments.

In July 2019, HotelierCo announced it was accepting investment for its first property, the Ewing Hotel in West Cape May. The boutique luxury hotel is scheduled to open in the New Jersey beachfront community in 2021. Investors will own a share in the property and will receive VIP perks and discounted accommodations.

HotelierCo plans to acquire the first eight parcels of land before the end of the year which will require $4.75 million of investor equity. The development will include renovating existing assets and a new ground-up development for The Ewing, which is set to house 23 rooms, a rooftop pool and a fine-dining establishment.

HotelierCo’s team has over 100 combined years of experience in hotel funds management and hotel operations. HotelierCo utilizes Regulation A+ to allow broad groups of investors and individual investors to invest in carefully selected properties. Before founding HotelierCo in 2017, CEO Nathan Kivi spent 15 years in the real estate and hospitality industry, both in his native Australia and, after a move in 2012, in the United States.

“In my experience, hotels are different from other real estate products, like commercial real estate, because your return is based on the land, building and the operational business,” HotelierCo CEO Nathan Kivi said in a statement. “Because hotel pricing can be adjusted daily, hotel rates can shift in real-time with the market. Hoteliers are able to work in the market at a faster pace than other real estate properties.”

The Securities and Exchange Commission (SEC) issued Regulation A+ in 2015, which HotelierCo used to open hotel ownership up to anyone suitable in the crowd (not just accredited investors). The company is utilizing these new laws to bring to individual investors early-stage hotel developments and operating assets with a focus on boutique luxury lifestyle hotels.

Investment in HotelierCo properties begins at $2,500. Investors in The Ewing, will also receive a discount on accommodation of 1% for each share owned, up to a 20% discount on every stay.

The Ewing will be managed by Valor Hospitality Partners, a full-service hotel management, acquisition and development company based in Atlanta.