Hotel investment opportunity breakdownfrom @davidkijlstra

Transcript

This freaking hotel's for sale. Let's do the math. It's a Swiss jewel with 12 rooms, an actual raclette room, and views of 4,000 meter high mountains. It's located in Erneham, which was crowned Switzerland's most beautiful village back in 2017. The price, €2,100,000. And for that, you get a six story building, a large restaurant, and an actual bowling alley in the basement. And now you might be thinking, Switzerland? Isn't it like crazy expensive location to run a hotel? Yes. The salaries are wild here. The average salary for receptionist is around €6,000, whereas it will be $2.02 and a half thousand euros in Italy. But here's the upside. The room rates are also much higher over tier. But more importantly, there's financial support in order to acquire a hotel. For smaller hotels, it's possible to borrow up to 90% of the acquisition price. And compare it to a place such as Spain or Italy, where borrowing more than 50% for a hotel is almost impossible. So is it a cash cow right now? I think you're doing alright. My guess would be around €475,000 per year. And this is what I good do to turn it into a real money maker. Number one is room expansion. There's a shortage in rooms in this area. So we'd ditch the reclet room and turn it into six to seven additional rooms. Number two is turning the bowling alley into a wellness haven. I love bowling, but there's almost no wellness spaces in the areas and it's perfect for the type of clientele you're trying to attract over here. Number three is simplify the restaurant. You need to offer good, especially in locations like this, but you want to avoid a large kitchen staff. So go with a rotating set menu that a small lean team can prepare. So fewer dishes better with higher quality. And next up is curated leisure packages. This area is perfect for hiking, biking, and wellness retreats. So it creates special packages with train transport from Zurich where you arrive in a few hours and everything is taken care of. Do all that and you're looking at a property that could easily generate around €800,000 per year. And that's for a property that only worst 2,100,000.0. So who's ready to create a wildly profitable boutique retreat?