Salt House – the beach house

Salt House - beach house

Project summary

A proposed Antiparos beach house hotel created from an existing building situated in Agios Giorgios, a short walk from the beach. The current apartment building will be converted into eight luxury suites with a garden, lounge area, and chef-guided communal dining area. The property is ideally positioned for development as a boutique Antiparos hotel under the Salt House brand. Required steps: acquisition of real estate, renovation, branding and launching of the hotel.

Investment type 

The investment entails reconverting and running a small hotel, located in prime location of Agios Giorgios, on the up-and-coming island of Antiparos, Greece. You will be funding both the purchase of the property, along with the cost of the renovations, branding and launch. We estimate the current market value at 800,000 euros with an additional 500,000 euros to encompass reconversion and branding.

The branding, launch, and asset management will be included in the package by SLH. The operations management will be conducted according to a Hotel Management Agreement with SLH through either an independent operator, or a management structure directly overseen by SLH.

Important to note: part why the property will make the list of Antiparos best hotels — the purchase price includes an additional plot of land with 200 square meters of building facilities that we will turn into three private villas with a pool. This dramatically boosts brand appeal and ADR. An additional 500,000 euros is required to develop  this component of the property.

investment type: hotel real estate and development 

Location: Agios Giorgios, Antiparos, Greece

Price real estate:  900,000 euros

Price of development : 500,000 euros conversion existing +500,000 for new villas

Total investemnt:   1,900,000 euros

HMA: base fee 10% + incentive fee TBD

Completion time: 24 months from purchase real estate 

Phases

1. Acquisition: 2 months.

2. Design concept, schematic design, first building, and permit approvals: 2 months from purchase.

3. Construction and interior design finishing: 6 months from permit.

4. Branding and launch of the hotel: first season begins July 2023.

5. Permit and construction of three small villas with pool: commencing September 2023.

6. Opening villas and pool: July 2024

Design & Branding Strategy

In planning this beach house Antiparos hotel, location is an essential part of the Salt House business model. We have devised a building layout to minimize renovation costs and maximize brand effect, which gives us a substantial competitive edge. At this point, it will be easy to outperform the few Antiparos, Greece hotels in our comp set as they are far from creating the same level of luxury.

Some of the design concepts we will incorporate into this exciting beach house Antiparos layout include: a communal chef guided kitchen designed to dramatically increase F&B revenue and attract outsider customers, along with a sandy guests-only lounge area with a gorgeous view of Despotiko.

With a strong brand identity and design concept in a low-competition market with robust growth potential, the project is poised for outstanding financial success. We will use social media for branding outreach designed to stretch the tourist season from mid-May, to mid-October, effectively adding two months to the Antiparos tourist calendar.

We will turn this small hotel into a understated luxury icon geared toward top-of-the-market travelers. 

Min Equity required:  50%

Return on equity:  4 years 

Expected Sale price in 5 years: 2,500,000

Expected Net cash out: 1,100,000

Financial Highlights 

Antiparos hotels — specifically a beach house Antiparos concept — demonstrate enormous promise. Paros and Antiparos both show massive growth potential with the construction of a new international airport. We are entering a market at the beginning of its upward cycle. The island currently sports two great luxury hotels, representing 10% of total room sales. 

With so much potential growth for the luxury segment, we think the authentic experience of small boutique hotels in several locations on the island will invite even higher returns considering the holding period. At present, the competition is relatively low and will likely remain that way for a while.

We foresee eight keys plus three luxury small villas in the pipeline, with an initial investment of 1,300,000 euros plus 500,000 euros for the additional villas. A 50% minimum equity is required by the investor, with local financing available. With expected ADR at 500 euros, the project will cash-flow in full within two years. In five years, we project a sale price of 2,800,000 euros on the total complex, with an expected net cash-out of 1,800,000 euros. To request a more detailed NPV calculation, please email us directly.

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