Blue Crystal Oceanfront Beach Retreat

This ocean view AND beachfront hotel (Or airbnb) offers rather dismal returns. It is not in the most prime location, rather far away from any popular tourist destinations such as Samara or Santa Teresa which are both close. For its price, the comparable properties with more than 6 bedrooms perform ok.

It is being sold as is and doesn’t need much investment, The real attraction of this property is the 14 acres of land that comes with the boutique hotel which opens many doors for investment opportunities. As the listing doesn’t include the number of bedrooms, we are unsure of what the true ADR would be, but we’ve assume it would be the largest vacation rental in the area with more than 10 rooms. From this we’ve used other beachfront mansions in the area and scaled their price to what is a fair average daily rate. This is $1100 a night. The occupancy is what lets this property down, because as mentioned earlier this location isn’t in the spotlight, so we’ve assumed an occupancy of 60% year round. That would be the highest in the area and is optimistic, but due to it’s much higher quality, differentiation, and amenities this is fair for a preliminary analysis. This would return 3.6% in the first year, roughly $260,000.