This article was originally published on the news portal delfi.lt.
The Lithuanian-based crowdfunding platform Crowdpear has refinanced a EUR 1.5 million loan intended to support a floating hotel business. The funding for this unique project was raised by 168 investors on the platform.
“Many investors are surprised to learn that assets like ships or airplanes are also classified as real estate. It’s important to highlight that when financing a non-standard project like a ship — in this case, a floating hotel — additional collateral is typically required to strengthen investment security,” says Lina Skučienė, Head of Sales Projects at Crowdpear.
The refinanced project is Lithuania’s first floating hotel, which has been granted a mooring permit by Vilnius City Municipality. It is located on the Neris River, in a scenic area near Kalnų Park, by the Vileišiai Brothers Square in Vilnius. The project owner is UAB Vilniaus upių direkcija.
The hotel comprises 23 apartments located on the first and second floors, and a rooftop terrace on the third floor, which will house a restaurant.
“This project is unique in its concept for Lithuania. Such floating hotels are popular in many cities worldwide due to their attractive locations, often in areas heavily visited by tourists and city guests. As a result, owners of such projects can expect higher short-term rental yields compared to traditional hotels,” adds L. Skučienė.
Karolis Paulauskas, CEO of UAB Vilniaus upių direkcija, brings over 10 years of experience working with floating structures. He revealed that the development of the floating hotel began two years ago, but the hotel has not yet opened to guests. One of the main delays is the lack of electrical connection, although all necessary work inside the vessel has been completed. He notes that not all decisions or work speed depend solely on the project developer.
“We estimate that the floating hotel will generate about EUR 622 000 in annual revenue from apartment, restaurant, and bar rentals. During the tourist season, the planned nightly rate for apartments is EUR 100, with an expected 85% occupancy rate. In the off-season, the rate will be EUR 60 per night, with 40% occupancy,” says Paulauskas.
When asked about the hotel’s opening date, K. Paulauskas expressed no concern about launching operations in the off-season: “We’ll start operating as soon as the necessary infrastructure is connected — this depends on external service providers. Vilnius attracts a solid number of tourists and guests from other Lithuanian cities even in winter, so we expect consistent demand for this unique accommodation year-round.”
Looking ahead, K. Paulauskas shared plans to refinance the project’s loan through a bank once the hotel is operational and generating income. This will help lower financing costs and secure a longer loan term.
About Crowdpear
Crowdpear has financed over EUR 33.67 million in real estate-backed loans in Lithuania and abroad, and has paid nearly EUR 1.9 million in interest to investors. The platform currently has a community of almost 9 000 verified investors, the majority of whom are from outside Lithuania. Both individual and institutional investors — including financial institutions — invest on the platform.
Crowdpear began offering real estate-backed investment opportunities in early 2023. In just its second year of operation (2024), the platform generated an audited net profit of EUR 152 126.
Crowdpear is also one of the first platforms to receive the EU Crowdfunding Service Provider (ECSP) license, granted in summer 2023. Its operations are supervised by the Bank of Lithuania.