The Hard Rock Hotel in Palm Springs Wednesday became the first hotel to be crowdfunded, accepting individual investors through a property website.
Investors can buy a stake in the hotel via RealtyMogul.com until the offering is sold out, according to spokeswoman Therese Everett.
Crowdfunding, now supported by hundreds of Internet companies, is the practice of raising money via broad-based Internet soliciting.
The announcement came in the lull between the two weekends of the Coachella Valley Music and Arts Festival in Indio. The hotel is hosting festival-related pool parties produced by LED, Coachella promoter Goldenvoice's electronic division.
Investors will get free use of a poolside cabana, 25 percent off room rates, free room upgrades and more, according to Everett.
"The individual investors who participate in the crowdfunding opportunity now listed on Realty Mogul will be able to experience firsthand what's special about this hotel, and enjoy the potential financial benefits and other benefits of being a hotel owner," said Andy Carpiac of Kittridge Hotels & Resorts, LLC, the hotel's principal owner.
According to the website, investments can start with as little as $5,000.
– City News Service contributed to this report.