The latest WTM Global Trends Report for 2015 has revealed that many luxury hotels are now avoiding traditional investment routes to finance projects. Instead, there has been a major uptake of crowdfunding and crowdsourcing to raise the capital needed for expansion or new hotel launches.
One such example is real estate crowdfunding goliath, the Prodigy Network which plans to develop a 194 unit space in downtown New York for ‘cotels’ – a combination of short and long term hotel rooms. Individual investors are encouraged to contribute with additional perks offered such as discounted or free stay’s at the hotel, once the development has opened.
During the crowdsourcing stage, hoteliers and developers can also gain feedback using social media from potential customers, which could change the future design and creation of many hotels. The WTF report revealed that this trend is mainly occurring in the luxury travel sector and best suited for hotels with unique features. Forecasts also suggest the creation of unique themed hotels in the future which shall be funded by small time investors who share a passion in anything from film to sports and books.