Soul Community Planet (SCP), Inc., a Holistic Hospitality company founded on the core values of wellness (Soul), kindness (Community) and sustainability (Planet), today announced it has entered into a strategic joint venture that will provide up to $210 million of equity capital to pursue growth opportunities.
The new investment follows a successful introduction of SCP, which has seen travelers, members, and associates enthusiastically embrace the values-based concept. The new investment, coupled with prudent levels of property-level debt, gives SCP upwards of $500 million of capacity to grow its portfolio of hand-crafted venues comprising hotels, coworking, restaurants and fitness. Additionally, the new investment will provide strategic working capital for further brand advancement and competitive enhancements to existing SCP properties.
"Now is the time for positive change in the hospitality industry. As we as a society reassess our priorities, conscious travelers are seeking out accommodations, remote workspaces and wellness venues that are better aligned with our own core values. As a result, many are finding SCP to be an appealing alternative to traditional hospitality offerings," said Soul Community Planet Co-Founder and CEO Ken Cruse. "Our new growth venture will enable us to bring SCP to a broad range of new markets and serve a deeper pool of conscious consumers desiring to make positive choices for themselves, their communities and the planet."
In addition to growing through direct acquisitions of well-located boutique hotels and vintage motels for conversion to the SCP brand, SCP is actively exploring debt investments, key-money or strategic partnerships with existing owners of well-located hotels and motels that have the potential to help bring the values of Soul Community Planet to new markets.
In conjunction with the new investment, SCP has formed SCP Hospitality, an integrated brand, management company and hotel owner. This structure will ensure effective oversight of all aspects of SCP's culture and operations, while eliminating the inefficiency of typical third-party branding and management arrangements.
"The hospitality industry is currently enduring unprecedented distress, which, while painful, is opening new windows for innovation and providing growth opportunities for fresh offerings aligned with the priorities of modern consumers. Our goal is to provide win-win solutions for owners and lenders. We can do so by providing capital to solve debt issues and to fund renovations for repositioning existing hotels to the SCP brand, which in turn will drive growth during what we anticipate will be a powerful post-pandemic recovery beginning in the second half of 2021. By creating positive outcomes for lenders and hotel owners during this challenging period, we hope to build solid, lasting relationships and bring Soul Community Planet to new markets in the right way," said Cruse.
Stifel, Nicolaus & Company, Incorporated acted as financial advisor and placement agent on behalf of Soul Community Planet.
About Soul Community Planet
San Juan Capistrano, Calif.-based Soul Community Planet was born out of a vision to provide holistic hospitality experiences for individuals desiring to make positive choices for themselves, our communities, and the planet. SCP provides clean, fresh, energy efficient, low-waste accommodations, fitness and coworking. SCP supports a range of causes that align with its vision through its Every Stay Does Good program and by donating five percent of its profits to causes that share its core values. For more information, go to www.SoulCommunityPlanet.com.