A real estate development and investment company is looking to crowd some hotels -- or at least fund them that way.
iCrowd Hotels Inc. announced yesterday (May 4) the launch of its namesake crowdfunding platform. Focused on the millenial market, the company touts the platform as one that meets the demand for direct access to high-performing investments in the hotel real estate market, optimizing the fundraising process for such endeavors by linking owners and developers.
"Our crowdfunding platform has been in development for the past 18 months, with the goal of creating the premier hotel crowdfunding site. Since the adoption of Title II of the JOBS Act, and the passage of Regulation A+, there is an incredible untapped potential for private investors to diversify their portfolios and become pioneer crowd investors in the lucrative hospitality market," stated Ted Farnsworth, chairman and founder of iCrowdHotels, Inc., in a press release announcing the launch. "According to experts Massolution and Bloomberg, global crowdfunding is expected to reach $34.4 billion this year and real estate crowdfunding to top $250 billion by the end of 2020. We have opened the door to enable individuals to hold a valuable stake in premium hotel properties across the globe for as little as $10,000."
The press release describes iCrowdHotels as possessing advanced technology that allows users to track their hotel portfolios and fundraising progress. The company states that its current deals are valued at over $130 million in total, located in markets such as New York City, Miami, California and Europe.
According to the release, Carl J. Schramm -- a professor at Syracuse University and former president of the Kauffman Foundation -- has been advising iCrowd Hotels during the lead-up to the launch of the crowdfunding platform.