Aberdare Spa Lodge Fractional Ownership: Is it a good deal?

Business
1

There is all the hype about it, and it seems the returns are impressive. What do villagers think? Anyone tried it? Anyone who understands it?

@Okiya, @Meria Mata, and all other knowledgeable talkers, kujeni hapa.

http://www.aberdarespalodge.co.ke/

Illustrated Return on Investment
[INDENT][ul]
[li]Invest- Kshs 3,000,000.00[/li][li]Off peak rate per night- Kshs 19,000.00[/li][li]No. of Beds- 2[/li][li]Occupancy per month- 70 %( 21 days)[/li][li]Service Charge & Other Expenses- 30%[/li][li]Taxes (VAT & Catering Levy)- 16% + 2% = 18%[/li][li]Total Revenue Per month- Kshs 798,000.00[/li][li]Less Outgoings- Kshs 383,000.00[/li][li]Net Balance- Kshs 414,960.00[/li][/ul][/INDENT]
Net revenue per month per as full 2 bedroom unit (i.e. 10 fractional shares)- Kshs 414,960.00
Net Projected revenue per month per fractional share- Kshs 41,496.00

Each fractional owner is entitled to ten (10) free nights every year per fractional share
( the free nights will be spread over 12 months)
Mode of payment

[INDENT][ul]
[li]50% deposit – upon signing of the offer letter[/li][li]Balance to be paid within 6 months.[/li][li]5% discount on full payment made.[/li][/ul][/INDENT]

2

If only business will be as they think

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3

Mimi sikuielewa. If i pay the three Million,ill be getting back a monthly income of around 41k? If so,for how long?

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4

Yes. For life.

Seems realistic. they used offpeak rates and assumed a 70% occupancy, which I think is realistic.

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5

If I am entitled for only 10 free days in an year they should pay me atleast 7 months of full occupancy without BS, else ni upus. Find about that part and report back.

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6

Those interested in your hard earned cash will quote any figure once you invest the harsh reality will dawn unto you…hiyo 3M nunua Kaploti my 2 thendi

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7

Btw @a4architect you had a similar project. Your input will be appreciated since this smells of BS.

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8

Hiyo occupancy per month is veeeeeeeeeeeeeery exaggerated.

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9

to good to be real

10

The 10 days is a bonus to you as a shareholder.

What these guys are doing is like selling the hotel while retaining the management role and then taking their cut of 30% as admin/service charges. The balance is what is given to you (as a fractional share) and this is what has been projected to 41K p/m.

Just like someone asking 10 of his friends to buy a share of his bus company for 3M each. He projects the buses will earn 800K, but after deducting his management expenses, the balance comes to 400K, thus each of you will get 40K from your investment. Besides, you get 10 free rides within the year.

Umeelewa?

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11

What is a realistic occupancy?

12

the compe will be the great rift valley lodge, minus the cold of aberdares?

13

From the website it seems as though the lodge has not yet been built, if thats the case where are they getting their numbers from?

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[ATTACH=full]34846[/ATTACH]

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15

I don’t have a percentage. My assumption is based on what I saw when I went to one of the lodges during Christmas 2015

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16

Hata bila hoteli kuwa hapo, would you invest 3m in any biashara that earns you 40k a month?

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17

IMO :: On holiday properties, full occupancy for 3 months then 10% for the other 9 months. That is why they charge higher rates during peak seasons.

So, for this scenario. Monthly income will be kedo Kes. 195k. Minus expenses Kes. 137.5k. So per share that’s 13.75k.

The only way i’d sign up for such a thing is if they guarantee my return. Hakuna mambo ya shared profit/loss non sense.

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18

Yes. There are other factors apart from cash flow.

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19

Very fast. That to me is a very good investment considering the risk.

I was in Peppercon one random Tuesday in Jan this yr, and the place looked busy.

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20

I almost ventured there but held my horses… But I still think is a viable investment.

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