Expert analyzes luxury hotel investmentfrom @davidkijlstra

Transcript

This freaking hotel is for sale. Let's do the math. It's located next to Tuscany on the Italian island of Elba, and you will not believe the facilities. It includes around 80 rooms, 450 hectares of farmland, a winery, and two private beaches. But it's not just a hotel. It's actually three hotel buildings and also more than 20 different villas and glamping tents. And you will not go bored here because you'll also find padel courts, tennis courts, private mountain biking all on-site. So what's the price? It worst around 35,000,000. And looking at the location close to Tuscany and all the potential which is there, I don't find that crazy at all. So is it a moneymaker right now? My gut feeling is that they're doing alright. I expect a €6,500,000 room, food and beverage, and activities revenue. And then there is the winery. They produce yearly 80,000 bottles at around 20 to €30 a piece. So how good I turn this into a cash cow? First of all, it's focus. Right no, they're offering everything from three stars to luxury. We need to get everything to four star plus levels because tier cottages, they look really nice from the outside, but better kitchens and bathroom are in dire need of a renovation. Next up, we need to add another paddle cord in order to be able to host several groups at once. Also, we have to extend the number of cabins and invest in some really high quality ones such as these ones from Nokken. These babies pay themselves back in about three to five years. And currently, they're offering bus shuttles to the private beaches, but that's not good enough. Going to offer these nice four times fours, which guests can use to explore the island in style. So this will cost at least another no. But now you can easily hit 11 to €12,000,000 a year, and that's not even including all the revenue from the wineries to olive oil or the farm products. So who's ready to start Italy's next luxury resort?