India ‘super-budget’ hotel in $5m London fund-raiser

An India-born entrepreneur was on Monday tapping London’s ethical investment market for $5 million (£3.8 million) to fund a new “super-budget” hotel concept which she plans to bring to the UK.

Rhea Silva is listing her company Chototel — named after “chotu”, the Hindi for small — on the Social Stock Exchange to raise funds for a hotel already under construction near Mumbai and a second forthcoming project in Pune.

The Mumbai hotel is planning to charge as little as $2 a day, split between up to four residents in each of the compact 250 rooms featuring mini bathrooms and kitchenettes.

Chototel is chaired by Chris Phillips, the chairman of Places for People, one of the UK’s largest property managers and developers.

Silva, who hopes to take the concept to the Middle East and the UK if it proves successful, said: “Housing poverty exists here, it’s just camouflaged in different ways. You might not find as many homeless people on the road, but there are still young professionals spending 50% of their income on housing. The whole real-estate sector needs innovation.”

Chototel becomes the 40th company to list on the Social Stock Exchange, which was set up in 2013 and focuses on firms that deliver social and environmental impact as well as financial returns for investors.