Hotels join the crowdfunding craze
The online money-raising craze that made possible both the Pebble smartwatch and the Oculus Rift virtual reality system is now becoming a trend in the hotel hospitality industry.
Crowdfunding is being used to help raise funds to transform a historic building in San Francisco’s gentrifying Mid-Market neighborhood into a hip, high-tech YOTEL-branded hotel.
In a joint venture with a Kuwaiti real estate company named AQARAT, New York-based real estate investment firm, Synapse Development Group is spearheading the redevelopment of 1095 Market Street. If all goes according to plan, the antiquated office building will soon become a 203-room hotel—the city’s first financed via crowdfunding and located just blocks from the headquarters of tech heavyweights Uber and Twitter.
“We thought crowdfunding a small portion [10 to 15 percent] of the equity on this deal would fit with the ethos of the neighborhood, given the demographic of the…
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