Project for the creation and development of an Art Boutique hotel in Spain

The idea of the project is to transform a villa, country house, la masia which have at least 6-8 bedrooms into a hotel. The hotels will be located in the secluded coastal area or in the mountains far from hustle and bustle of big cities but close to national parks and natural reserves, tourist spots and other sights.

The project has been developed taking into account our long-term experience of launching and managing art hotels in private houses and villas in Spain, France and Italy.

The income calculation of this project is based on the example of the private villa with 8 bedrooms and the area of 4,000 sq meters located on the first line, on the Costa Brava in 70 km from Barcelona. The villa has been working as a hotel for five years.

Income Project

In this part of the project we use the average cost of a night's stay in 4 and 5-star hotels, holiday villas and la masia and villas located in 3-10 km from the sea in the coastal towns of Blanes, Lloret de Mar, Tossa de Mar, Sant Feliu de Guixols, Palamos, S'Agaro. Seasonality has been also taken into account.

The management company, which has a considerate experience in selling rooms in European hotels and construction and sales of residential real estate, guarantees the 80% occupancy rate.

1. When the whole property is booked (all rooms):

Booking months 01, 02, 03, 04, 11, 12 - €4,000 per week, €96,000 for 6 months.
Booking months 05, 06, 09, 10 - €6,000 per week, €96,000 for 4 months.
Booking months 07, 08 - €10,000 per week, €80,000 for 2 months.

Total: €272,000 x 80% = €217,600 per year of gross income for renting a villa, the minimum rental period is one week.

2. In case of short-term (daily) rent (all 8 rooms):

Booking months 01, 02, 03, 04, 11, 12 - 8 х €70 = €560 x 180 days = €100,800 for 6 months.
Booking months 05, 06, 09, 10 - 8 х €100= €800 x 120 days = €96,000 for 4 months.
Booking months 07, 08 - 8 х €350 = €2,800 x 62 days = €173,600 for 2 months.

Total: €370,400 x 80% = €296,320 per year of gross income for short-term rentals, the minimum rental period - 1 night.

The price of each room may vary depending on its view, area, services and etc.

Additional services throughout the year

Breakfast €12 x 16 persons x 365 days x 80% = €56,000 per year.
Lunch and dinner booked in advance (daily menu). Lunch - €20, dinner - €30, drinks not included, 16 persons x (20+30) x 200 days = €160,000 per year.
Bar on site throughout the year from 8.00 to 24.00, the average revenue is 16 persons x €10 x 365 days x 80% = €46,720 per year.
Excursions and tours 16 persons x €200 x 100 days = €320,000 per year.
Car rentals with and without driver, yacht rentals with and without crew, equipment for rent and etc., average revenue is €80,000 per year.
Transfer airport - hotel - airport, train station - hotel - train station. Average revenue is €40,000 per year.
Catering services for special occasions twice a month (birthday parties, conferences, seminars and etc) average 25 persons x €60 = €1,500 x 2 x 8 months = €24,000 per year.
Studio shop where guests can buy art, antiques and jewellery. The hotel fee for selling antiques, art, jewellery, assistance with European art galleries and delivery services - €100,000.
Additional profit from selling properties on the Costa Brava. Customers purchased properties through the Management Company at the total cost of about €5 million over the past year and they paid the 5% fee to the Management Company, which is €250,000. The hotel fee is 20% of the sales in that region, i.e. €50,000.

TOTAL:

room rentals - €300,000;
meals, bar and catering services - €280,000;
hotel services - €440,000;
Antiques and real estate sales - €150,000.

The average annual gross income of an Art Boutique Hotel with additional services is €1,170,000.

Investments in such hotel range from €2.5 million (4 bedrooms, coastal area) to €4.5 million (8-10 bedrooms, coastal area), from €1.3 million (4-6, mountains, eco tourism) to 2.3 million (10-12 bedrooms in two houses, mountains, forest).

A property for a hotel can be bought on installment for up to two years and rented for a long term.

In the above mentioned project, the 8-bedroom property cost €3.4 million and the average annual profit is €500.000. So, the economic profit is about 15% per year. The profit is divided 50% by 50% between the investor and Management Company.

Our company will offer you properties for an art boutique hotel and help you with launching the hotel project and its further development.