The Falkensteiner hotel group and online capital formation platform Finnest are partnering once again to raise capital for the hotel chain. Finnest, based in Austria, is a debt and equity crowdfunding platform that claims to be the largest in the Nordic region following its merger with Invesdor.
Falkensteiner has previously raised approximately €13.1 million on Finnest in 2019. This was followed by an additional €3.7 million last year. Falkensteiner is responsible for some of the most successful offerings so far on Finnest.
“The crisis has shown us very clearly: Our customers are loyal to us – almost 90% of all bookings made before the lockdowns were not canceled, but instead converted into vouchers. Now the need for vacation and relaxation is greater than ever and the current booking situation makes us extremely hopeful and positive,” explained Falkensteiner board member Otmar Michaeler. ” Our motto remains: To achieve something together with the strength of many is a fundamental principle especially in our time and is all about the future.”
The FMTG – Falkensteiner Michaeler Tourismus Group is described as one of the most successful privately-owned tourism companies and one of the leading providers with a focus on holiday hotels in the premium segment. Founded in 1957, the FMTG Group is now represented in seven European countries with 27 hotels, 3 apartment complexes, and a premium campsite. The annual turnover at FMTG was €174 million in 2019. Understandably so, COVID caused revenues to sink last year hitting €105 million.
The current securities offering allows investors to participate in a qualified subordinated loan. The minimum investment is €1,000 for a term of five years. Investors may expect to receive a fixed annual interest rate of 4%. Investors may opt for an alternative form of a payment in the form of accommodation vouchers and will receive a 50% bonus from Falkensteiner.
The current offering is intended to accompany the completion of the new 5-star hotel in Cortina d’Ampezzo and the renovation of the Falkensteiner Spa Resort Marienbad.
Michaeler says that high-quality hotels with a strong brand core recover more quickly from a recession because they can rely on a large proportion of regular customers and are much more in demand than offers in the low-price segment:
“Having premium offers in tourism has often shown the potential to reach the pre-crisis level particularly quickly.”
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