Salt House Antiparos

Salt House Antiparos- The Hills Hotels

Project summary

The Salt House enriches the beach house theme in a new bohemian way. Building a brand based on a design concept with a strong story opens the door to extremely high ADR, and no other waterfront hotel truly matches the completeness of our concept.

We are creating a serviced beach house with a lobby and a lounge living room that seamlessly transitions from indoor to outdoor. Think about where and how surfers want to hang out after a day of surf.Additionally, we are implementing a common kitchen supervised by a skilled and passionate chef to generate a high F&B revenue.

Investment type

This is a reconversion of an existing running small hotel, located in prime location of Agios Giorgios, in the upcoming island of Antiparos.

Prospective buyers or investor are looking to purchase the hotel real estate, including the reconversion costs, and the design concept for the boutique hotel to be. A Total of 2,500,000 euros .The development, launch and management of the hotel will be included in the package run by SLH.

Investment type: hotel real estate and development

Location: Agios Giorgios, Antiparos, Greece

Price real estate: about 1,300,000

Price development : 900,000 euros, including launch of the hotel

Total Investment : 2,200,000 euros

HMA: base fee 10% + incentive fee TBD

Completion time: 12 months from purchase real estate

The design strategy

Location is an essential key to the business model. We have scouted a couple of existing operating buildings on the Village of Agios Giorgios, Antiparos, with a great potential to be converted.

With a strong brand identity/design concept and low competition in a market with robust growth potential, we are able to lead the project towards an outstanding financial success.

Paros and Antiparos show massive potential in terms of growth with the new construction of an international airport. We are entering a market at the beginning of its upward cycle. The island has two great luxury hotels, representing the 10% of the total room sales. While there is potential growth for the luxury segment, we think the luxurious, authentic experience of small boutique hotels in several locations on the island can bring even higher returns considering the holding period. At present, the competition is relatively low and will likely remain that way for a while.

Financial highlights

The initial total investment for the first building, a hotel with 11 keys
on the island of Antiparos will require max $2.5m to purchase the property and reconversion into luxury boutique hotel.

FFE and launching. The hotel will
see average low season rates at $250 and high season rates at $500, with an initial occupancy at 80%. With an HMA of approximately 10% of the NOI to
be paid to SLH, we found an NPV (net present value) of the total investment of over $6m compared to $2.5m invested, using a discount rate of 11%, and on a 10 years time line. Considering that the first hotel prototype can be repeated several times, the potential financial reward is exceptionally high.

Min Equity required: 50%

Return on equity: 3 – 4 years

Expected Sale price in 5 years: 3,200,000

Expected Net cash out: 2,000,000