AT A GLANCE
Starting at US$ 2 per night, we propose to use ground-breaking technology to deliver a product that will help change the way the world houses its people.
In the next decade, we aim to build 5 million budget hotel rooms worldwide. This ambition responds to the global housing shortage that is predicted to affect 1.6 billion people or one-third of the global urban population, by 2025. Our strategy is to employ the power of technology to provide quality rental housing at an unprecedented nightly rate. We are targeting highly-urbanised areas in both developed and developing regions, where people are currently struggling to find affordable accommodation.
THE CORE ISSUE
Access to decent and affordable shelter is fundamental to the well-being of people and is embedded in the United Nations Declaration of Human Rights. Yet, in both developing and advanced economies, cities struggle to accommodate their poorest citizens. Globally, managing the challenges of urbanisation and improving the living conditions of citizens is essential. However, due to the enormous gap in affordability, it has become a challenge for the public sector. Today, 235 million households face the affordable housing gap, defined as the difference between the cost of an acceptable housing unit and what households can afford to pay using 30 percent of income (MCKinsey Global Institute, 2014). If current trends persist, this figure is likely to rise to 440 million households by 2025, equivalent to one-third of the global urban population.
It is estimated that 1.6 billion people, equal to a third of urban humanity will occupy crowded, inadequate and unsafe housing by 2025. The estimated cost to address this challenge is U.S. $11 trillion. As the tech start-up in the housing sector, Chototel aims to garner much to this growing real estate market.