The Ultimate Guide to Hotel Crowdfunding in 2025

What if you could book your hotel for an entire year… before you even build it?

With crowdfunding, that’s only possible, it’s likely.

At LaunchBoom, we were the first company to launch a hotel campaign in 2020. Since then, we’ve launched more hotels through crowdfunding than anyone in the world. One of our latest hotel crowdfunding campaigns with Kosmos Resorts was the biggest hotel crowdfunding campaign in history.

As you can probably guess, we’ve learned a lot about what works and what doesn’t. And what works is not necessarily a copy-and-paste template for all. It’s about building a strategy that works for the experience your campaign has to offer and that process begins long before we press the launch button.

So, let’s break it down by looking at some of our most successful hotel campaigns.

• Kosmos Resorts: Luxury Resort & Astronomer-led Stargazing – $1,948,787 Raised
• Cypress Resorts: Where Luxury and Nature Meet – $785,285 Raised
• Mirror Hotels: A Perfect Blend of Nature & Luxury – $1,716,790 Raised

How to Crowdfund a Hotel in 2025 Video

By the way, I recently published a video on how to crowdfund a hotel on Indiegogo. It’s the most up-to-date guide we have and breaks down our 5-step marketing process. Check it out here.

Key Takeaways

• Start by analyzing market demand and refine your hotel project’s messaging and positioning
• Implement a Reservation Funnel to create a VIP list, build community, and validate market interest
• Blow past your funding goal on day 1 by leveraging your pre-campaign email list
• Accelerate visibility by harnessing press coverage, organic traffic, and strategic promotions
• Keep in mind extra considerations like obtaining licenses, showcasing your team, and identifying your hotel’s unique aspects
• Partner with LaunchBoom to maximize your hotel crowdfunding campaign’s success and achieve outstanding results

But before we jump into it, let’s introduce you to the campaigns.

Kosmos Resort

Kosmos is the ultimate getaway in Colorado.

Just 15-minutes from the Great Sand Dunes – an International Dark Sky Park – this destination offers an unparalleled stargazing experience. Choose from 16 luxurious villas, including 4 exclusive Galaxy Villas, each equipped with high-quality telescopes.

Using the LaunchBoom approach, this project met its initial $20,000 goal within 3 minutes of launch. It has since raised over $1.9M from more than 1,600 backers looking to pre-book stays.

Cypress Resort

Cypress Resort is the brainchild of Melissa & Tanner Cummings. Located just 50 minutes north of Atlanta, they built a beautiful, boutique resort in the mountains of Georgia.

This campaign was so successful, it raised over $580K in the first 24 hours – setting them up for even more success the rest of the campaign. In the end, they raised $785,285 from 544 backers, 3,100% of their initial funding goal.

Mirror Hotel

The creators of Mirror Hotels, Joanna Cahill and Patrick Lovett, are also the founders of the premier glampsite, Asheville Glamping.

Mirror Hotels is made of reflective panels that blend each cabin into its natural landscape. This creates a unique and immersive experience.

The hotel has only 18 luxury Mirror Cabins on 55 acres of private mountain forest.

They raised $1 million in 5 hours and became the most funded lodging campaign on Indiegogo (only to be beaten by Kosmos last year), with a total funding of $1,716,790 from 1,365 backers.

Step 1: Test Market Demand with TestBoom

Crowdfunding is a game of numbers. The numbers must make sense. Will your campaign resonate with the audience and successfully raise the necessary funds?

TestBoom is a demand analysis program designed to gauge the interest in your hotel project before fully diving into the launch.

It aims to answer several critical questions that help determine the success of a crowdfunding campaign. These questions include:

• Market demand – Is there sufficient interest in your hotel project among the target audience? How big is the potential market for this specific hotel concept?
• Unique selling points – What sets the hotel apart from its competitors? Are there any innovative features or services that can attract backers and create a buzz?
• Marketing messages – Which messages resonate the most with the target audience? Are there any key benefits or aspects of the hotel that should be emphasized in the campaign?
• Target demographics – Who are the ideal backers for this hotel project? Can the campaign be tailored to appeal to specific demographics and increase the chances of success?
• Promotional channels – Which marketing channels are most effective for reaching the target audience?

During this phase, we focus on messaging and positioning – simply put, great product positioning is communicating the problem you solve to the right people.

During this phase, we identify 2 to 4 distinct angles to evaluate in the market. An angle is a unique way to communicate the value of your product. These will be the selling points to capture the backers’ attention.

The next step is to find your target demographics. What’s their age? Are they married or single? What sort of experiences do they look for when they stay in a hotel? These are some of the questions to help us identify who will be most likely to back the campaign.

TestBoom at Work: Mirror Hotels Campaign

For example, here are angles that we could test for Mirror Hotels:

1. Unplug in the perfect blend of nature & luxury – “Hidden away on 55 pristine acres, Mirror Hotels immerses you into nature with 5-star comfort & ease.”
2. Experience 5-star comfort & amenities – “We’ve taken everything you love about glamping and removed everything you don’t. Each luxury cabin is equipped with a full kitchen, indoor bathroom, HVAC system, and five-star furnishings.”
3. One-of-a-kind experience – “Reflective panels blend each cabin into its natural landscape to create a unique, immersive experience found nowhere else in the world.”

For audiences, here are audiences we could test:

• Crowdfunding: people interested in crowdfunding sites like Kickstarter and Indiegogo.
• Mobile living: people interested in things like RVs, camper vans, and motorhomes.
• Outdoors: people interested in outdoor brands like Outside, Patagonia, and REI.

Step 2: Build an Email List with a Reservation Funnel

A Reservation Funnel aims to generate a list of highly interested and engaged potential backers, known as VIPs.

These VIPs are more likely to convert into actual backers at a significantly higher rate (30-40%) than a standard email list, which typically sees a 2-5% conversion rate.

This is because we focus on nurturing backers’ interest through a series of targeted communications and enticing visuals. We utilize compelling renders or high-quality images and graphics to showcase the project’s unique features and then ask for a small contribution that will indicate their intent to buy.

Here’s how the Reservation Funnel process works:

1. Capture reservations – We use captivating renders, along with targeted marketing efforts —Facebook/Instagram marketing—to capture the attention of potential backers and encourage them to sign up.

Once someone gives us their email address, we present them with an offer to upgrade to VIP. By upgrading to VIP, they are guaranteed the best discount when we launch. To upgrade to VIP, they only have to put down a reservation deposit of $1, but we also like to increase the deposit amount (as you’ll see later).

Users willing to put down a $1 deposit demonstrate a strong interest in the project and a commitment to supporting it. In fact, we find they are 30 times more likely to purchase the product when the campaign launches than those who have not made a deposit.

2. Create a sense of exclusivity – When potential backers place a $1 deposit, we invite them to join an exclusive VIP Facebook Group. This exclusive group connects these like-minded individuals. It also gives them access to the founder.
3. Nurture VIPs – We look to maintain a strong connection with VIPs by sharing regular updates, sneak peeks, and exclusive content, using high-quality renders to keep them engaged and excited about the project. This continuous engagement helps ensure that VIPs are primed to convert into actual backers when the campaign launches.

There are a few things to note in the reservation funnel step:

Simplify the Reservation Offer

Avoid presenting multiple packages such as 1-night, 3-night, or 7-night options. Instead, use a straightforward VIP offer such as “50% off all packages.” For example, here was the VIP offer we used for Kosmos

By offering a straightforward pricing structure, you eliminate the complexity that can arise when multiple packages are presented.

Simplifying the reservation offer also has several advantages:

• Streamlined communication – With a clear and concise message, potential backers can quickly grasp the benefits of supporting the campaign, increasing the likelihood of attracting more interest and reservations.
• Enhanced perceived value – By focusing on a single, attractive price point, you emphasize the quality and exclusivity of the experience.
• Efficient management – A simplified reservation offer makes managing reservations, customer inquiries, and post-campaign fulfillment easier.

Adjust Reservation Amounts to Test Demand And Subsidize Ad Spend

Remember that in the reservation funnel, backers place a $1 deposit.

Now, if the campaign demonstrates a positive response with the $1 deposit strategy, try raising the reservation amount to, for example, $50 to gain deeper insights into the commitment level of potential backers.

If it doesn’t work, go back to $1.

For Kosmos, they were able to raise the deposit to $50 without the conversion rate dropping. In fact, they were able to subsidize their ad spend by using this strategy.

Kosmos actually went cash-positive on reservation deposits alone. They were generating $50 reservations for as little as $32 each. Meaning, they made $18 for every reservation they got.

Here were Nomad Pad’s prelaunch metrics using this strategy:

• Ad spend: $189,189
• Total VIPs: 5,802
• Total deposit revenue: $290,100

By using this strategy, they made money during the prelaunch, which meant they were able to launch essentially risk-free. And when they launched, they made $904,839 in 24 hours – starting the momentum that propelled the campaign to nearly $2M.

Scale Ads That Work

Keep a close eye on key performance indicators (KPIs) such as click-through rates, conversion rates, and cost per reservation. Regularly reviewing these metrics helps you decide which ads to scale, maintain, or pause.

Then allocate a larger portion of your advertising budget to the ads that have demonstrated the best performance.

Step 3: Launch With a Boom

At this stage, we have thoroughly tested the campaign, analyzed the numbers, and built a robust pre-campaign email list. Now it’s time to make a splash and kick off your crowdfunding campaign with a boom.

Engage Your Pre-Campaign List

Reach out to your pre-campaign email list, which consists of potential backers who have already shown interest in your project.

Now, this list may include individuals who didn’t commit to the $1 deposit but still demonstrated an interest in your hotel concept. Don’t discount their potential support, as they might simply need a bit more persuasion or information before committing.

Share the news of your official launch and remind them of the exclusive benefits they’ll receive as early supporters.

For example, here’s what the launch email looked like for Cypress Resort:

Their launch emails were directly responsible for driving over half a million dollars in the first day.

Leverage the VIP Community

Utilize the VIP Facebook Group to build excitement and anticipation for the launch. Encourage group members to share the campaign with their networks. This helps create a strong initial surge of support and visibility.

Amplify Your Ad Campaigns

For the quickest win, retarget your VIP email list with ads at the beginning of the campaign. This creates a “surround sound” effect and ensures that people who showed early interest in your campaign know that you’ve launched.

Next, take your best-performing ads and audiences from your prelaunch, and use them to create slightly new ads. You don’t want to change them too much (since you know they work), but you will want to change the positioning a bit. Focus your copy on the fact that your campaign is now live and that there is limited time to take advantage of your launch discounts.

Monitor and Adjust

Keep a close eye on your campaign’s performance metrics, such as the number of backers, funding progress, and conversion rates.

Be prepared to adjust your strategy as needed based on the data and feedback you receive.

Extra Things to Consider When Launching a Hotel

Remember these tips when launching your crowdfunding for a hotel:

Get All Your Licenses and Approvals Before You Launch

We’ve had some clients that were so eager to launch that they didn’t have all their required licenses and permits.

Please don’t do that.

Get all necessary permits, licenses, and community approvals before initiating your crowdfunding campaign. This includes:

• Zoning permissions
• Construction permits
• Environmental clearances
• Any other legal or regulatory requirements specific to your hotel project

Failing to secure all approvals beforehand can potentially jeopardize your campaign, especially if it goes viral and attracts public scrutiny. It will be very hard to come back after bad publicity.

Show Your Face So People Can Trust You

Introduce your team and the people behind the hotel project.

Do you remember the infamous Fyre Festival? Most potential backers are worried about something like it happening to them.

So share your background, expertise, and the passion that drives you to create this unique hotel experience.

When you humanize your project and showcase the individuals involved, you make it easier for potential supporters to connect with your vision and feel more confident contributing to your campaign.

Understand What Makes Your Space Special and Why People Are Booking It

There are hundreds of thousands of hotels out here. So, why would someone choose to book a stay at your establishment?

Tailor your crowdfunding to highlight your hotel’s unique features.

Consider aspects such as:

• Innovative designs or architectural elements that create a visually appealing or memorable experience
• A strategic location that offers convenience, stunning views, or proximity to popular tourist attractions
• Exceptional amenities or services, such as a luxurious spa, fine dining options, or specialized experiences tailored to specific interests
• Sustainability initiatives, eco-friendly practices, or community engagement programs that resonate with environmentally conscious travelers.

For instance, Kosmos focused on the remote locations of their property, with stargazing being a significant attraction for guests.

As a result, their best-performing images were photorealistic renders of the spaces at night, highlighting the stunning star-filled skies.

Maximize Your Success With LaunchBoom’s Expertise

I’m not going to beat around the bush. There hasn’t been any agency or consultancy with more success in hotel crowdfunding than LaunchBoom:

• We’ve launched the most hotel crowdfunding campaigns
• We’ve have the most total funds raised in hotel crowdfunding
• We’ve launched the most successful hotel crowdfunding campaign

If you want a successful launch, we can probably help. Click here to chat with one of my team members. We’ll jump on a call and talk through our launch strategy.

Want to learn more from the hotel founders we worked with?

Check out our Masters of Crowdfunding episodes we did with Gamal from Kosmos and Tanner from Cypress Resort.

Story of Gamal from Kosmos

Story of Tanner from Cypress Resort