Investors will soon have the opportunity to own a portion of a brand-new Hampton by Hilton hotel in El Salvador. This unique investment opportunity will be made possible through the issuance of tokenized shares on the Bitcoin layer 2 Liquid Network. Bitfinex Securities, the first licensed and registered digital asset provider in El Salvador, will facilitate the country’s first-ever tokenized asset raise. The debt will be issued by Inversiones Laguardia S.A. de C.V.
The hotel, which will be built at El Salvador’s international airport, aims to raise $6.25 million from crowdfunders. In return for their investment, participants will receive a 10% coupon over a 5-year term. The minimum investment required to purchase the token, known as HILSV, is $1,000. The Liquid Network, built by Blockstream in 2018, will be used for the transaction.
Bitfinex noted that the hotel project will feature five levels, 80 rooms, five commercial spaces, and various amenities such as a swimming pool, restaurants, gym, gardens, and multipurpose rooms. Token holders will also be entitled to complimentary hotel stays based on the size of their investment.
El Salvador has gained recognition for its Bitcoin investment and adoption strategy. In April 2023, the country granted Bitfinex a digital asset service provider license, allowing the platform to expand into real-world asset tokenization. This move is significant for the local population, as it provides a new avenue for accessing financial markets. Previously, individuals in El Salvador had limited investment options, with buying an entire house being one of the few alternatives.
The introduction of tokenized shares for the Hampton by Hilton hotel signifies a major milestone for El Salvador’s capital market. Paolo Ardoino, the chief technology officer of Bitfinex Securities, believes that this development will bring a new asset class to the market, further advancing the country’s nascent capital market.
Jesse Knutson, head of operations at Bitfinex Securities, expressed his excitement about the venture, stating that it not only marks their first project in El Salvador but also showcases the transformative power of Bitcoin-based capital markets.
Overall, this tokenized asset raise represents a significant step forward for El Salvador’s investment landscape and introduces a novel way for investors to participate in the country’s growing hospitality industry.