Investment Project for First Real Tango Hotel in Buenos Aires

Opportunity Snapshot

Investment Opportunity

We own a small tango B&B in Buenos Aires (since 2002), and we now have a project for building the first Tango Hotel in our city, with aproximately 50 to 60 rooms.

Total funding required is USD 4,5 Million and expected ROI is from 12% to 18% during the first years of business, improving after the third year.

Buenos Aires is the city of tango. Dozens of new hotels are being built in different areas of the city, most of which contain or appeal to the word “tango”. But none of them have anything to do with it.
We dance tango, own a small and successful tango B&B and plan to build the first Real Tango Hotel in Buenos Aires.

During the last decade Buenos Aires has become one of the most visited Latin-American cities.
“Tango” is the word that best represents our city around the world and every new company in the hospitality business uses it, most of the times without a real meaning. Small family hotels or guest houses that were originally addressed to people looking for a genuine and local tango experience are not profitable anymore, due to a high internal inflation and a stable currency exchange rate.

In this scenario, Buenos Aires needs a Real Tango Hotel that truly represents its distinctive symbol.
We have designed a project that combines in one space the services of a nice hotel (or a big B&B) with a complete tango school and dancing place.

According to a report made by the city’s government in November 2007, the tango in total, $400 million annually.

If we combine both variables (the rise in tourism and hotels and the growth of tango in the world), our project is essential. When the average hotel occupancy in 2009 in the city of Buenos Aires was 50%, our hotel -Caserón Porteño- had an 82% occupancy. This shows that the tango and the way we work have better results than the industry’s average.

Why does this model increase normal hotel occupancy rates? Because real tango only belongs to Buenos Aires. Anything could happen to global economy but Buenos Aires will still have a hidden jewel that will continue to attract people as it has always done. While normal hotels have fluctuating occupancy levels depending on multiple local and international factors, a tango hotel will always have a plus that will increase average occupancy rates, making it more profitable.

Considering the model of a 42 rooms hotel to be built in a well-located 5400 square feet land, we estimate an occupancy rate of 80% to be achieved during the first or second year.

With a total investment of USD 4.5 million, our financial projections are as follows: 15% ROi with a 70% occupancy level, 18% ROI with 80% occupancy and 20% with 90% occupancy.

Why should we be the ones to lead this project? Because we have been in the tango and accommodation business for more than 8 years. And because we love it. In 2002 we rented an old and ruined house and recycled it totally in order to create our Caserón Porteño, Tango Guest House in Buenos Aires. We just wanted to receive from all over the world people who shared our same passion and help them get to know the world of genuine tango in our city. And we succeeded. Good reviews everywhere in the internet prove it, as well as our guests’ support to this new project.

This is not just a dream or an idea. We are successful entrepreneurs and have the ability to create something out of nothing.

Investors can contact us on Merar.

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