The Hard Rock Hotel Palm Springs, California, has become the first hotel to be crowdfunded by an online property marketplace.
Beginning Wednesday and until the offering is sold out, individual investors have the opportunity to own a piece of the 163-room Hard Rock hotel, which opened in March and is principally owned and operated by Kittridge Hotels & Resorts, Woodland Hills, California. Kittridge is expect to use the crowdfunded equity raise on further capital expenditures for the property, currently the only hotel in its real estate portfolio.
Individuals can register to view the property offering and become investors in the hotel through RealtyMogul.com, an online marketplace for people to pool money and invest in commercial real estate.
In addition to being an equity owner in the hotel, individual investors will receive VIP benefits, including free use of the hotel owner poolside cabana, 25% discounts off the best available room rates, free room upgrades and more.
Today’s announcement follows Realty Mogul’s recently completed US$9 million Series A financing round led by Canaan Partners. Realty Mogul has funded properties valued at more than US$100 million through the company’s online crowdfunding platform.
Hard Rock International is not an owner of the Hard Rock Hotel Palm Springs or a party to the crowdfunding announced Wednesday.