Realty Mogul Secures Equity for Hotels

LOS ANGELES—Realty Mogul has provided equity financing for the acquisition of two hotel properties. Funding was provided through Realty Mogul's database of accredited investors, with Florida-based Conor Acquisitions serving as the sponsor. One property is located in Joplin, Missouri and the other in Memphis, Tennessee.

“We're excited to add two new hotels to the Realty Mogul family,” Jilliene Helman, CEO of Realty Mogul, tell GlobeSt.com. “We have seen a lot of positive reception for hospitality from our database of accredited individual investors who can really understand hospitality as an asset class because many of them stay in hotels themselves. A large part of our database is professionals, like CPOs and attorneys who presumably do a lot of travel for business and therefore understand the industry as consumer.”

The hotel property located in Joplin will undergo a substantial renovation and will be rebranded into a DoubleTree by Hilton. The second property is a 96-room Courtyard Marriott. The sponsor, which received in excess of $5 million for the two transactions, plans to hold the properties in the long term.

This transaction marks Realty Mogul's first two deals with Conor Acquisitions, but may not be the last. “We are excited to be partnering with Conor, who has done a variety of hotel transactions prior to this, and we hope to do more business with them,” says Helman.

Last year, Realty Mogul crowdfunded the first hotel, a Hard Rock in Palm Springs. The capital raise was extremely successful, with 85 investors getting in on the deal.