HotelierCo Looks to Crowdfund $14M West Cape May Hotel

WEST CAPE MAY, NJ—Atlanta-based start-up HotelierCo, a fledgling hotel crowdfunding firm, reports it is now raising funds for its first venture, a $14.4-million hotel project here.

The firm began accepting investors in July and utilizes new Regulation A+ funding laws to bring investors early-stage hotel development opportunities, with a specific focus on boutique luxury lifestyle hotels.

HotelierCo reports it is now accepting investors for its first property, The Ewing Hotel in West Cape May. The boutique luxury hotel is scheduled to open in 2021.

The company plans to open The Ewing after a full renovation to a historic West Cape May mansion, which is set to house 23 rooms, a rooftop pool and a fine-dining establishment. The development is requiring $14.4 million in funding. After the initial development is complete, HotelierCo states it intends to acquire adjoining sites to increase the number of rooms and thereby increase opportunities for investors).

“In my experience, hotels are different from other real estate products, like commercial real estate, because your return is based on the land, building and the operational business,” says Nathan Kivi, HotelierCo’s CEO. “Essentially, you’re blending real estate with business operations, giving yourself more areas that you can leverage.”

“Because hotel pricing can be adjusted daily, hotel rates can shift in real time with the market. Hoteliers are able to work in the market at a faster pace than other real estate properties,” Kivi adds.

Investment in HotelierCo properties begins at $2,500. Investors in The Ewing will receive a discount on accommodation of 1% for each share owned, up to a 20% discount on every stay.

The Ewing will be managed by Valor Hospitality Partners, a full-service hotel management, acquisition and development company based in Atlanta.