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International real estate giant Novotel to tokenize new hotel and residential project in Georgia

International real estate giant Novotel to tokenize new hotel and residential project in Georgia

In order to tokenize its newest European hotel and residential project in the Republic of Georgia, the multinational hotel chain Novotel has partnered with the technology firm DelNorte. 

U.S. and foreign investors alike will benefit from the increased security and portability of transactions made possible via this partnership, according to a recent report by DelNorte published on Medium on March 20.

Novotel, a part of the global Accor group, which has a presence in more than 110 countries, is among the most well-known and powerful in the hotel and real estate industries worldwide; plans to use blockchain technology to launch a new technological initiative that will enable it to disrupt the industry, grow its business, and strengthen the fragmentation model of real estate investments.

The first step in the partnership between Novotel and DelNorte will be the tokenization of the new Novotel Living project, a collection of high-end apartments in Batumi’s most prestigious neighborhood.

According to the hotel company:

Novotel Living “will operate according to the world-renowned Strata Title system in which each apartment belongs to the owner, and in which the entire infrastructure is managed by the hotel operator,” in this case, Novotel.

Blockchain tech suitable for real estate

DelNorte’s blockchain technology is suitable for this real estate paradigm since its tokenization method enables the division of properties via individual and immutable smart contracts that provide evidence of ownership and the safety of the process.

Tokenization opens the door to fractional ownership, whereby the value of shares and ownership of assets may be split, facilitating the sale or transfer of either the full property or a portion of it.

In the case of DelNorte, the smart certificates are divisible without affecting the underlying property value. Once divided, they provide each shareholder with a digital copy and a unique key, facilitating the hands-free distribution of dividends

Novotel’s real estate concept and DelNorte’s smart certificates are made for speculators who want to spread their bets throughout the real estate industry through tokenization.

Elsewhere, the world’s largest asset manager BlackRock is exploring ‘tokenization of stocks’ that could drive efficiencies in capital markets, shorten value chains, and improve cost and access for investors.

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