Bulgaria Sees Former Communist Party Hotel Being Converted to a Digital Nomad Co-Op

25.08.2023 - 14:05 / skift.com / Matthew Parsons

A dilapidated hotel originally built in the 1980s as a luxury hideaway for elite members of the Bulgarian Communist Party could soon be transformed into a co-living hub.

Entrepreneur Matthias Zeitler has a vision for the 200-unit property, nestled in the mountains in the village of Semkovo, more than two hours by car from capital Sofia. But first he needs to raise $6 million to fund its renovation.

He has launched a crowdfunding campaign, offering each of the apartments for about $30,000. The funds will be used to kickstart its refurbishment and create a “co-op” to manage the establishment. However the option to buy the building from its current owner expires in June.

Investors have committed about $2 million so far, as the campaign has secured backing for almost 70 apartments. Zeitler is confident he’ll reach his target in the next couple of months.

He’s fortunate in that he can tap into an extensive network of digital nomads, as Zeitler also manages a co-working base in nearby Bansko and runs the town’s popular annual Nomad Fest. Last year 550 international travelers attended, while this year’s event in June is expected to attract 750 people.

As well as digital nomads, the entrepreneur is approaching businesses offering them the chance to buy a bundle of three to five apartments. “We want to have half corporate backers, half individuals,” he said. “Bringing these groups together will make a lot of sense. It’s a nice human resources benefit for companies to say ‘yes, we have a place here in the mountains, and you can use it.’”

Companies that want to do larger retreat events can also rent additional apartments from individual owners.

In some ways the hotel is a perfect fit for the target market. No expense was spared when the Central Committee of the Bulgarian Communist Party commissioned the building. The brief was to have a large, four-story high communal space, but small bedrooms, to encourage interaction. The hotel also featured a video room, bowling alley, swimming pool, sauna, gym and a library.

Zeitler’s business proposal almost draws on communist principles, too. “I believe it’s better for community projects if the community actually owns the business,” he added. “The apartment owners will form a co-op that owns all the commercial areas. This idea is instrumental to make the project happen, otherwise it will just be a building in the middle of nowhere.”

The idea is to also tap into the eventual 200 owners’ own network of nomadic connections, much needed to draw people to such a remote location.

Since the collapse of communism, the building also fell into disrepair, and has been vacant for the past five years. Before that it was occasionally used as a hostel. A new heating system and solar