Investment opportunity in a 40-rooms Hotel aimed at customers appreciating luxury. 70% of the profit will go to investor till return of investment, thereafter 30%.
The project site is close to Changla Gali, on the main Road Murree-Nathiagali at an altitude of 8500 feet. On the back side there is lush vegetation and thick Pine forest which offers a serene valley view. Location is reasonably close to civic Facilities/activities and ideally away enough to enjoy the peace and tranquillity of nature.
Peak tourism season is 100 days (May-August), during which expected occupancy is 100%. Project will have 40 rooms, 5+1 floor (parking). Reception, lobby, coffee shop, restaurant and open terrace dining area on the ground floor.
The project is aimed at attracting and addressing the customers, who can appreciate and afford world class luxury and comfort. Highest standards services will be provided to guests to give them a life time experience remaining within the cultural norms of the society.
Project completion time is expected to be less than 2 years. Land has already been acquired and it has a frontage of 82 feet on the main road. 3-4 floors will be sub ground level (valley open) and 2-3 floors will be above ground level all total 40 rooms.
Average room rent of reasonable hotel in that area during tourist season varies between Rs 7500-30000 ($75-300). The website will give a fair understanding about prevailing tariff rates http://www.hotelamore.com.pk/corporate_rates.htm
To have an idea about revenue/profit here is the calculation towards least side: 40x10000($100)x100 (number of rooms*rent/day*peak days). On assumption of 100 guest / day restaurant profit for BF and dinner can also be visualised. Over heads of all kind are estimated at Rs 1.5 Million ($10.5K/month during peak season). The Hotel will give business for the remaining months of the year but to remain on the least side that profit has been assumed to cater for the overheads.
Murree, over a period of time has been swarmed and saturated with tourists, which forced a certain class to head to Galyat / Nathia Gali. By inherent geographical compulsion these regions can only take limited tourists. Construction at Nathia Gali is banned by the Government and soon, as a result of the expansion plan, most of hotels on Mall Road Murree will be demolished. All these factors make our hotel plan at our location more viable and promising.
The complete project is estimated at Rs 90000000 ($US 0.9 million) and the completion of the main phase requires Rs 60000000 ($US 0.6 million). During the first year (for grey structure) the estimated requirement is for Rs 35000000 (US$ 0.35), and the bulk of investment would be required during completion and furnishing stage.
Out of Rs 90000000 ($US 0.9 million), Land worth Rs 25000000 ($US 0.25 has been purchased) and Rs 15000000 ($US 0.15 million) are available as self financing. So investment between RS 20000000 ($US 0.2) to Rs 50000000 ($US 0.5 million) is sought from interested party.
It is envisaged/suggested that after completion of project bulk of the profit (around 70%) will be returned to investor till full payment of investment is completed. Thereafter the investor will remain partner at 30% profit taking arrangement over a reasonable time period (will be negotiated between parties).
By the grace of God work has been started on project and grey structure would be ready by December 2014. This year (2014) investor is expected to contribute well under Rs 20000000 ($US 0.2 million). An endeavour will be made to complete second phase by Jun 2015 during which Under Rs 30000000 ($US 0.3 million) is required. Safe to say that investor should expect to contribute maximum five instalments of Rs 10000000 ($US 100000) on quarterly basis. We don't have issues with " hands on/silent" investors.