INVESTMENT
Alternative capital procurement :
CROWDSOUR
TIMING IS RIGHT TO LAUNCH CROWDSOURCED PLATFORM JALI INVESTMENT , ACCORDING TO FOUNDERS FROM WITNESS INVESTMENT AND HOTEL EQUITIES .
By HOTELS EDITORS
Jali Witness Investment and Hotel Equities in August launched Jali Investment , a hospitality real estate investment platform that will include development , acquisition and value-add opportunities that enable individual investors to participate .
With an emphasis on education and perspective on the industry from a team of multi-generational hoteliers , each deal offered through the platform is thoroughly vetted by the sponsors . The idea is to help individuals better understand the hotel investment marketplace with the Jali team offering , for example , specifics on the meaning of hotel investment acronyms , explaining current headwinds and their impact on hotel operations , and sharing planning considerations when building a real estate portfolio .
As multi-generational hoteliers , Witness Investment Principals Sagar Patel and Aakash Patel bring extensive hotel investment and operational experience to the newly launched platform . Hotel Equities rounds out the founding partnership with experienced developers and operators Fred Cerrone and Brad Rahinsky .
Sagar Patel said every deal will be different but , generally , the sponsors will have control and recapitalize the equity , or do it all at closing based on timing .
While initial deal specifics weren ’ t available at the time of HOTELS reporting , Patel did share some broad strokes on what to expect – like a new Hilton / Marriott select-service development project within a top 25 MSA within the Midwest .
Rahinsky said the timing was ideal to launch Jali with cap rates at historic lows for the hospitality asset class , adding that hospitality ’ s dynamic rate pricing performs particularly well versus other sectors during uncertain inflationary periods . “ Whether we are dealing with stabilized assets or institutional grade developments , hospitality CRE allows for predictable yields throughout the asset ’ s life cycle ,” Rahinsky said .
HOTELS reached out to Witness Investment Principal Sagar Patel to learn more about the unique crowdfunded development plan .
HOTELS : Why crowdfunding ? Who has the background ? Sagar Patel : We see a large trend for individual investors that are looking for diversification and exposure to real estate . Crowdfunding has been growing 10 % YOY over the last 10 years . Hospitality investment is even more niche than general real estate and we believe could benefit from having a platform that has deep experience in this space . As such , we combined the hospitality expertise of Hotel Equities and Witness Investment with Marshall Clark who worked at Cadre and Crowdsteet and has deep expertise in digital market and investor recruitment .
48 hotelsmag . com Jan / Feb 2023