Lucrative Boutique Hotel
We have identified Snow Valley Lodging, in Fernie, British Columbia for acquisition.
Snow Valley Lodging is a 27-unit boutique hotel located in the thriving ski town of Fernie British Columbia. The hotel is highly profitable and has a strong financial track record. Offering investors double-digit returns backed by real estate.
Highlights
- Receive an average of 14% annual dividend + Equity share in the property
- Projected 3.4 - 4.1x return on investment at year 5
- 100% passive real estate investment with outsized returns
- Run by experienced operators with successful history in hospitality/hotels
- Your investment is backed by real estate
The Business
We are raising money to acquire Snow Valley Lodging, a 27-unit boutique hotel located in the vibrant ski town of Fernie British Columbia. The hotel has 13 standard rooms, 8 kitchen units, 6 tiny homes, and a 3 bed/2ba condo-style unit used for employee housing. The entire hotel has been renovated and does not need any additional work.
Summary
- Boutique tiny-home hotel with a proven track record of hight profitability.
- Strategic location in a thriving ski/mountain biking town, ensuring year-round demand (busy nearly all year!).
- Run by experienced operators with successful history in the hotels/short term rental industry.
(Link to Investment Deck:
https://drive.google.com/file/d/15Zl8spPnv-B7c-CncXSKYah-8nMvspGw/view?usp=sharing)
The Team
Tom Sullivan is a seasoned entrepreneur in the hospitality industry with a background in internet marketing. Over the past 4 years he has built and led a portfolio of 29+ short-term rentals and is a top rated short-term rental operator in British Columbia. He is the Founder of Avenue Enterprises which currently does $840,000 annual revenue.
Known for maintaining an exceptional 97% occupancy rate across the entire portfolio, while holding an average review rating of 4.9 stars. Tom specializes in hospitality and corporate housing with strengths in team building and leadership.
Tom will be working closely with Sean Rakidzich who has over 9 years experience in the short-term rental space holding a portfolio of 230+ short term rentals and boutique motels. He has been Tom’s personal coach for over 2 years and will be consulting Tom and the Avenue Enterprises team through the optimization and acquisition of Snow Valley Lodging.
Once we take possession Snow Valley Lodging Tom will relocate to Fernie to run operations and lead the team.
Financial Overview
Current NOI: $472,890
Cap Rate: 10%
Purchase Price: $4,730,000
Appraised Value: $5,160,000
Hold Time: 5 years+
Equity Required: $2,200,000
Snow Valley Lodging holds an impressive track record of being highly profitable for over 5 years. With annual revenues exceeding $1.1 million and a robust Net Operating Income of $474,890. Garnering a stellar 4.5-star review rating and a vibrant social media presence, the hotel is a customer favourite.
Funding Requirement
We aim to secure $2.2 million CAD to acquire the hotel, providing investors with an equity stake. Investors will receive a 70% share of net profits, equivalent to a 14% annual dividend. At year five, we will refinance the property, return the full investment to investors, and repurchasing shares at their updated valuation. Anticipated return on investment ranges from 3.4x to 4.1x by year 5.
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