709186 | Bargain Mallorca Portfolio 4 Hotels from 130M now

Bargain Mallorca Portfolio 4 Hotels from 130M now 94.5M Profit 5+%  Keys: 810+ Outdoor pool and large terrace-solarium equipped with Balinese beds, hammocks, umbrellas and jacuzzi with views of the beach. Both the hotel and its pool communicate directly with the beach in Spain.

Area El Arenal

A1.) HOTEL 4 *

Location: 200 meters from the beach, 4 golf courses in 10km around  Urban Qualification:

Tourist-Commercial-Residential-Leisure-Sports- Own parking, etc. 128 fully equipped rooms overlooking the pool and one part of the hotel overlooking the sea.

? 6 Single rooms: approximately 18 m2

? 87 Double Standard rooms: approximately 25 m2

? 35 Sea View rooms: approximately 25 m2

In the sale of this asset, 2 homes are also included, (currently used by Hotel staff). And the 4 commercial premises that give directly to the main street.

Tourist places: 256

A2.) APARTMENTS

Location: it is currently used the hotel reception for these apartments. 52 apartments with an area of ??45 m2. (with kitchen).

Tourist places: 208

SERVICES AND AREAS OF THE TWO COMPLEXES

? Restaurants

? Bar service - cafeteria

? Indoor pool

? Outdoor pool with special area for children

? Night and day entertainment

? Spa (sauna, jacuzzi and massage service)

? Sports court

? Gym

? Conference Room

? Large lounges and lounge bar

? Private parking in the two hotels

B) Hotel 3 *

? Location: El Arenal

? Activity rating: tourist- residential - leisure

? Number of rooms: 550

? Num. Legalized tourist places: 1,000.

? Built Area (m2): 9,540 m2.

? Refurbished in 2018: total rooms.

? Services:

• Two large terraces (covered and uncovered)

• Two bar-living rooms

• Two Restaurants with Show cooking

• Two pools

• Coffee shop

• 24 hours reception.

• Live Music - Live music and entertainment

• Solarium with loungers

• Internet terminals - Fax - Photocopiers

• Currency exchange

• Games room: Billiards and Ping Pong

• Common zones

• Garden areas outside

• Bicycle and car rental

C) Resort on PLAYA 4 *

Location: on the first line, on the beach

8 floors

88 double rooms (7 of them suites)

All rooms have stunning views of the sea

Tourist places: 176

Standard rooms 22m2, suite rooms 30m2 Air-conditioned restaurant with wonderful views of the sea type

Buffet & Show – Cooking Bar overlooking the pool

Outdoor pool and large terrace-solarium equipped with Balinese beds, hammocks, umbrellas and jacuzzi with views of the beach. Both the hotel and its pool communicate directly with the beach!

CHAIN ??SUMMARY

ROOMS: 810+

TOURIST PLACES: 1,640

TARGET PURCHASE AND SALE PARAMETER BETWEEN 120 TO 130M.

Reper price. half room Between € 146,700 / Room. at € 159,000 / room

Reper .. Half Tourist Square between € 73,170 / square to 79,270

€ / square

Economic parameter that would affect each of the assets:

In these data I propose different ways to calculate the price average per room and hotel. In a global purchase transaction.

€ 130,000,000 -

A1 + A2 = € 27,000,000 (€ 150,000 / room)

B = 72,500,000 (€ 131,000 / inhab.)

C = 30,500,000 (€ 346,000 / inhab.)

€ 120,000,000 -

A1 + A2 = € 28,800,000 (€ 160,000 / room)

B = 64,800,000 (€ 117,800 / inhab.)

C = 26,400,000 (€ 300,000 / inhab.)

Taking into account that it currently bills about 10M and has a GoP 3.5M, shows that the current management and positioning is  appalling.

I believe that adequate billing, not the most optimistic, would be about 15 M. of turnover and with a G0P of about 6 M. which It would be reasonable and already close to a client who had two objectives:

A) Acquire heritage in the Islands and later, (after 2 or 3 seasons). Sell ??individually.

And recover investment with an IRR profitability.

B) Have an equity, which maintains the nominal value of purchase, with a profitability of 4.5% to 5%. Annual.

We are ready to provide with more detailed financial data upon signature of soft LOI (without penalties for non-buying) showing the financial credibility and interest of the potential buyer