More than one in 10 Americans have invested in cryptocurrency, according to a survey published in July of last year by NORC at the University of Chicago. That number is rising every day, and some hotel companies and properties are taking advantage of this trend by accepting cryptocurrency as a form of payment.
While airlines and travel agencies were quick to accept cryptocurrency, the hotel industry was somewhat late to the game. That being said, last March, The Kessler Collection became the first U.S. luxury hotel group to accept cryptocurrency through a partnership with BitPay, the world’s largest provider of Bitcoin and cryptocurrency payment services.
The first EV Hotel is expected to open this December in Phoenix.
Four months later, The Pavilions Hotels & Resorts became the first international hotel group to accept crypto; the company uses London-based Coindirect for its crypto payment processing.
BitPay allows guests to forgo cash and credit cards, instead using cryptocurrency, such as Bitcoin, Ethereum and Dogecoin, to pay for their room and incidental charges. BitPay notifies the hotel that the bill has been paid, and then deposits cash into the hotel’s bank account.
Management company Menin Hospitality began accepting crypto at its hotels last June and uses BitPay for its payment processing.
“We believed at the time that this type of payment method was where our guests were heading in the future,” said Jared Galbut, managing partner of the Miami-based company. “We wanted to be one of the first to do so. It’s grown a lot since then and guests are using it.”
Jared Galbut Menin Hospitality
Menin—whose portfolio includes Gale hotels in Miami and Chicago—allows guests to use crypto to pay for a range of items and amenities, from bottle service to spa treatments. “We communicate the offering through guest collateral on property, in addition to confirmation emails and online,” said Galbut.
The executive believes cryptocurrency will become more and more popular; in fact he called it “the future of everything,” adding, “As we look towards the future, more consumers will use it as a way to pay for simple transactions. This service will continue to evolve for Menin Hospitality as a new way to book travel experiences.”
Ken Patel, chairman/CEO, EV Hotel, who is expecting to open the first property of what has been billed as “the world’s first technology and crypto hotel brand” this year, had forecasted that “2022 was going to be the year for crypto,” and added, “I was just with a politician and I asked him one question, ‘What are your thoughts on crypto?’ His answer was very simple: ‘It’s here to stay.’ So, it’s not going anywhere, but what we have to do is make sure we’re utilizing it the right way.”
EV Hotel will not be accepting cryptocurrency via BitPay. “We don’t want cash; we want the crypto,” said Patel, who noted that he has been investing in Bitcoin and other crypto for eight years. “We want a direct relationship—what I call a two-way sync—where it goes from the guest to the hotel.”
Ken Patel EV Hotel
The brand will also soon be releasing its own cryptocurrency, the EV crypto coin. “Our coin is an ICO—an initial coin offering—where it’s utilized for two reasons: 1) the capital raise, and 2) to create the exposure in the industry,” said Patel, who has a well-known former hospitality executive on his board of directors—Rachel Humphrey, former EVP/COO of AAHOA.
The first EV Hotel is expected to open in December, with worldwide expansion coming shortly after. “We have six EV Hotels going up in India alone,” said Patel. “We have Dubai, Romania, Indonesia, Singapore, Costa Rica, Dominican, Florida, California and Texas now, and Las Vegas has something that they want to work out with us as well.”
The Phoenix hotel will include a two-floor crypto ballroom, where, Patel noted, “You’ll be able to really venture into the industry of cryptocurrency.” He wasn’t able to provide many details about the ballroom except that it will have stadium seating and a restaurant, and guests will be able to buy, sell and trade crypto.
Patel also pointed out that every EV Hotel will have an Experience Center, “which will teach people about what crypto is, what an NFT is, what blockchain is, etc.”
If Patel is correct with his prediction, more and more hotels and hotel companies will begin accepting cryptocurrency and the phrase “cash, charge or crypto” will become the norm.
