Airbnb an online marketplace for renting residential lodging. The company made it possible to turn residential flats to hotel rooms either by sharing or renting an entire flat known as aparthotels. As of 2019, the startup is valued at $31 billion. In most tourist cities, Airbnb has directly contributed to spike in rental prices, driving many locals to live outside city.
With Airbnb is growing at an unprecented rate turning all residential properties to tourism hotels, the only way to take on and compete with Airbnb is through construction of new hotels to directly compete with Airbnb to cater the tourism needs. New hotels also relieve the strain faced by tourism industry and social problems associated with Airbnb.
Last month we launched Hotel Citizenship (HC) platform introducing decentralized hotel ownership. This means investors can buy full ownership with full title deed for hotel rooms, instead of buying entire hotel. This comes with free citizenship or permanent residency perk.
There are important differences between Airbnb and Hotel citizenship (HC) platform. HC platform targets ownership in hotels while Airbnb is only for rentals of residential properties. The platform will facilitate construction of luxury hotels funded by Citizenship by Investment (Cbi) or Golden visa program. Several five star hotels such as Kempinski, Park Hyatt, Marriott etc has been already funded by citizenship by investment program in the Caribbean.
So what is the difference between investing in hotels against residential properties?. Investing in hotels has significant numerous advantages than residential properties.
- Residential properties do not create a single job bringing no benefits to economy. In contrast, hotels create jobs and contribute taxes to the government.
- Hotels provide upto 60% monthly returns to investors from per night occupancy.
- No maintenance of property required as it is undertaken by hotel staff, which is not the case of residential properties.
- Hotel investors can occupy the room free of charge for 3 weeks for holiday reasons.
| Airbnb | HC Platform |
| Residential property | Commercial property (luxury four or five star hotels and resorts) |
| Short term rental properties | Hotel room full ownership |
| Rise in residential property prices | Rise in only commercial property prices |
| Government does not benefit from taxes | Government benefits from tourism and hotel taxes |
| No benefits to the economy | Significant benefits to economy |
| Maintenance by property owners | Maintenance by hotel staff, relieves owners |
| Returns: from $50 a night | Returns: 60% of nightly booking fee |
| No perks | Citizenship/Residency perk for investors |
Our HC platform is startup in very initial stages, directly connects investors and hotel developers and will fully launch by 2020. You may visit the demo of our platform https://www.hotelcitizenship.com
