Hotels Using NFTs to Create a StubHub for Lodging Reservations

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NFTs are also being used to raise capital to buy golf courses or land, allowing token buyers to get stake in projects

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The owners say this ensures they get paid for the rooms as guests will sell their reservations on the market if they decide not to go, and appeals to the crypto-enthusiast traveler.

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Jason Kisek, Senior Vice President, Casa de Campo Resort & Villas, Dominican Republic, said, “We can reach another consumer who is not booking with traditional methods, who is looking to start booking rooms with NFT soon. making plans.”

Casa de Campo has signed with startup Pinktada, which recently launched a booking system that includes hotels in the Caribbean, Mexico, San Francisco and Hawaii.

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Hotel guests can reserve rooms at those properties by purchasing NFTs through Pinktada. Using this system, guests can book rooms at a discount to what the hotel charges for refundable reservations.

Sales are final from the hotel owners point of view, so their revenue is guaranteed whether the room is used or not. If travelers change plans, they can use the tokens for other Pinktada hotels or sell them to another traveler in the Pinktada network.

The Pinktada (the name is a reference to a type of pearl oyster) promises to be a buyer of last resort if no other traveler buys it.

“You give hoteliers certainty of income, but give them the flexibility if their plan to sell or swap tokens to travelers changes,” said Mark Gordon, co-founder and chief hospitality officer of Pinktada.

Another startup using NFTs is Stay Open, which converts unused retail and office space into hostel-like accommodations. This spring before Stay Open began selling 10,000 NFTs for one tenth of an Ethereum coin, partly to raise capital to add new locations.

Each NFT includes a “Stay Token” for a free night at an existing lodging in Stay Open’s Venice Beach, Calif. or other locations the company plans to open. NFT holders also receive tokens for using Stay Open’s co-working space and other benefits.

Token owners can use them, give them as gifts, or sell them, said Steve Shpilsky, co-founder and CEO of Stay Open. If demand is hot in the local lodging market, “you can even make some money,” he said.

NFTs, which live on the blockchain like cryptocurrencies, made headlines last year when the digital piece was sold for $69 million for a collage titled “Everydays: The First 5000 Days” and for $2.9 million for Twitter’s first tweet. Inc.,

Co-founder Jack Dorsey.

This year, the highly speculative cryptocurrency market as well as NFT sales volumes declined sharply, fueled by rising interest rates. But many artists and startups remain enthusiastic about NFTs, especially those with utilities like hotel reservations.

In the real estate industry, NFTs are also being used by groups to raise capital to buy golf courses or land, giving token buyers a stake in projects. And NFTs are being used by Metaverse businesses to sell digital land in virtual worlds like Sandbox and Decentraland.

Fifth Wall partner Dan Weinhold said a growing number of proptech startups backed by Fifth Wall, one of the largest real estate venture-capital companies, are exploring the use of NFTs. “It’s a conversation that’s coming up more regularly in board meetings,” he said.

According to some participants in the hotel industry, some hoteliers may be reluctant to sell reservations in the form of NFTs, which can be resold for fear of not knowing the identity of their guests. Pinktada said it has addressed this concern by only allowing its members who sign up for free, participating in its Marketplace, and making membership data available to owners.

Noble House Hotels & Resorts, a hotel management company, has signed with Pinktada so that travelers can use it to make reservations at two San Francisco hotels, the Argonaut Hotel and Hotel Zoe.

“It’s some uncharted territory,” said Stefan Mühle, the area’s managing director. “We’re just as curious as anyone else to see how this is going to shake out.”

Write Peter Grant at [email protected]

Credit: www.wsj.com /

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