Playa Grande
costa
rica
Hotel development
project
Target
Is to increasing financial performance by merging four property in a single entity , increasing the number of rooms to rent for saving on expenses derived from fixed costs as well as broadening the range of options to may offer for guests;
Reach a critical mass of guests will offer opportunity to empower the sale, run profitable restaurant business and manage a surf school and recreational/tour activity.
mission
There are two adjacent properties already running two profitable hotel business, and two backyard lots, both on process for permit to build.
Link the four properties and build 16 new rooms will increase ROI as well as offering to the Surfer community a better service.
In 2015 I bought a 20 year established hotel business. After 3 seasons my statistics evidenced how the fixed costs impact on the ROI, so I decided to transform some of the spaces of my property creating new rooms in order to broaden room typology.
The results of the extension that added 5 new rooms was increment of the occupancy room rate of 12% based on the median occupancy rate of last 3 high seasons
Since Playa Grande is a surf district with numerous growing possibilities and our statistics indicate that our business would increase revenue by adding rooms we decided to examine the possibilities of further expansion.
The owner of the adjacent hotel, La Marjada, is selling his property after more than 10 years of successful busyness. Furthermore, there are two empty lots north of my property, which is less than 150 meters from the area’s main surf spot.
I have 15 years experience in real estate in Italy as a general contractor so I am still selling my properties in Italy in order to reach the necessary liquidity to build my dream;
I know how much I love this business but finding the right partner to invest together would make things a lot easier.
My long term project consist in merging the four adjacent properties to build a profitable surf resort, although in the short term, it may be broken down into distinct steps in relation to the available liquidity (either by un-investing in Italy or by finding business parters).
Area A: Hotel Sugar’s Monkey
Requested price: $ 700.000,00
Layout: 13 rooms, swimming pool, and one restaurant (currently breakfast only).
Our median occupancy rate for 3 season was 27%, 43% during high season and 14% on low season, our ROI is about 4%.
Area B: Hotel and Restaurant La Marejada
Requested price: $ 800.000,00
Layout: 8 rooms, swimming pool and a profitable Italian restaurant.
*Occupancy rate and ROI are not available but it is expected to be better than the Sugar's Monkey.
Area C: 900 sqmt
Requested price: $ 100.000,00,
Building permits: undergoing verification.
Building Investment: 400.000,00
Area D: 1200 sqmt
Requested price: $ 130.000,00
Building permits: undergoing verification
Building Investment: 240.000,00
The outcome will be a 37 rooms surf resort with 3 swimming pools, the best Italian restaurant and bar in town, a surf school and a board rental business with an offer range from a simple double room to a unique villa to catch all expectations of millenials guests.
With all business engaged and a fine work on expenses we can expected a ROI from 5% to 10% with a good perspective also on real estate market.
Total area of 3847 sqm (41.400 sqft),
Total building 1.500 sqm (16.200 sqft)
CONTACT
US
Email: contact@sugarsmonkey.com
Costa Rica.................+506 2653.0719
Personal/WP...............+506 84014165