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First crowdfunded hotels ready to be opened

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“Sharing economy” now being applied to the travel industry
The term “sharing economy” is now being applied to the travel industry, as the first crowdfunded hotels begin to open. One of the first will open to guests in New York City next week.
The AKA United Nations is an extended-stay hotel-condominium near Second Avenue. It will open its doors on September 10, having cost $95 million to buy and renovate, $12 million of which was raised through online pledges.
The 95 one-bedroom condos, which all have kitchens, will be rented as extended-stay suites until buyers are found who will pay between $1.2 million and $1.5 million per apartment.
The crowdfunding campaign drew 116 backers pledging at least $20,000 each. They can eventually expect a return on investment of 19% to 23%.
Meanwhile, the travelling community is being asked to contribute to the first Amberlair boutique hotel – and to even crowdsource its location through an online vote.
The location can be an existing building or a particular place the voter thinks a boutique hotel is needed. Crowdfunding the entire operation will begin once the location is found.
“Rather than succumb to the compromises of corporate investment”, say the individuals behind Amberlair, “we will seek to fund development via the future guests who share our passion for hotels with character”.
Hotel Management / Techly

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