Hampton Hotel flops on Bitfinex Securities
A couple of weeks ago, a new securities offering was added to Bitfinex Securities, intended to raise money to build a Hampton hotel near an airport in El Salvador.
The offering hoped to raise $6.25 million in 30 days, however, over halfway through, only $342,000 has been raised, according to the Bitfinex Securities website.
This hotel offered unusual ‘benefits’ to investors, including offering free nights if you invested enough, and up to unlimited stays over the five-year bond term if you invested at least $1 million.
Furthermore, the ‘Market Study Update’ issued by Horwath HTL and distributed alongside this offering submission suggests that the hotel is projected to make $2.7 million in total revenues. This is somewhat surprising as construction is yet to be completed, and the fundraising documents on Bitfinex Securities state that construction will take “less than 12 months,” leaving little time to hit that target.
Read more: Bitfinex Securities hasn’t seen a single trade in two months
Bitfinex Securities has struggled to convince anyone to regularly use the exchange. The blockstream mining note offered on the exchange hasn’t had a trade occur since November 13 last year. The Mikro Kapital offering sees slightly more activity, with sometimes up to eight trades occurring in a single day, though more typically it sees between zero and two trades.
Protos has reached out to Inversiones Laguardia to determine if it will be able to proceed with construction if this fundraise fails; after the publication of this piece Roberto from Inversiones Laguardia responded to claim that it “already have commitments for the entire raise” and claimed its “goal with tokenization is to reach the largest number of retail investors possible.”
Update 2024-06-03 13:40 UTC: Added comment from Inversiones Laguardia.
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