Hard Rock Hotel Palm Springs seeks $1.5 million in crowdfunding
If you're on your way to or from the sun-baked Coachella Valley Music and Arts Festival this weekend and get the urge to become a hotel owner, you may be in luck -- as long as you have at least $10,000 to spend.
Hard Rock Hotel Palm Springs is seeking at least $1.5 million in online crowdfunding from individuals to bring new acts to the hotel, make improvements to its Rock Spa and maybe add a nightclub.
Perks for investors will include free use of the hotel-owner poolside cabana, 25% discounts on room rates and free room upgrades.
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Naturally, this isn't quite a Kickstarter for real estate.
The individuals who want a slice of the hotel must be "accredited investors," defined by the U.S. Securities and Exchange Commission as having annual income of $200,000 per individual or $300,000 per couple, or a net worth of more than $1 million not counting the value of the primary residence.
According to Realty Mogul, the Beverly Hills-based tech company behind the campaign, this is the first attempt to crowdfund a U.S. hotel online.
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"People have an easy way to diversify their investment portfolios into commercial real estate and participate in opportunities previously available only to a select few," said Jay Samit, Realty Mogul's executive chairman, in a statement.
Hard Rock Hotel Palm Springs, which is majority owned by Kittridge Hotels & Resorts LLC, has partnered with Goldenvoice, the promoter of the Coachella festival in Indio, to put on electronic dance music-themed pool parties during the event.
So maybe the combination of heat, dust and rave music will inspire some investment activity.
Individuals can put up as much as $3 million each.
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Twitter: @rfaughnder
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