When we think of “crowdfunding” we usually associate it with throwing in a few bucks to support our friends’ short films or art projects. Lucky, then, that we’re not friends with Rodrigo Niño, CEO of New York real-estate company, Prodigy Network, because he’s looking to raise $31 million in equity for his company’s hotel project: $100,000 at a time.
Prodigy Network actually have a successful track record at this novel approach to hotel development: they previously raised $171 million in $20,000 increments for a mixed-use skyscraper development that is currently under way in Bogotá, Colombia.
The project aims to convert an apartment building at 17 John Street in Manhattan into an extended stay hotel, described on the company’s website as “an innovative micro-living glass tower, one block away from the World Trade Center.” The project is also hoping to take advantage of the Securities and Exchange Commission’s move to lift the ban on private companies advertising investments that aren’t registered with the agency. SEC rules are relevant because, unlike Kickstarter and Indiegogo etc… investors for the Prodigy Network project will receive financial return. The changes are beginning to take effect as of yesterday.
Speaking to the Wall Street Journal, Niño said that relaxing the restrictions will have a huge effect of both investors and developers:”
“We have learned that crowdfunding not only democratizes investments, it also makes projects viable that otherwise would not be possible”.
Meanwhile Prodigy Network are going to be kept busy after raising $16 million for a 108-room limited-service hotel in Bogotá and another $12 million for an office building near the city’s airport. Oh, and they would also like to crowdfund a city. Hotel Chatter Contributing Editor