Updated over 1 year ago on .
Lucrative Investment Opportunity: Boutique Hotel in Thriving Ski Town
We are raising money to acquire Snow Valley Lodging, a 27-unit boutique hotel located in the vibrant ski town of Fernie British Columbia. The hotel has 13 standard rooms, 8 kitchen units, 6 tiny homes, and a 3 bed/2ba condo-style unit used for employee housing. The entire hotel has been renovated and does not need any additional work.
The hotel is highly profitable and has a strong financial track record. Offering investors double-digit returns backed by real estate.
Link to investment deck with more info: https://drive.google.com/file/d/1tLIQWqba2xOTQiDZNnEutZPR9ee...
Highlights
- *Receive an average of 12% Cash-on-cash return (dividend) annually
- *Projected 3.4 - 4.1X return on investment at year 5
- *100% passive real estate investment with outsized returns
- *Managed by experienced operators with successful history in hospitality/hotels
- *Your investment is backed by real estate
The Market
Fernie, famed for its world-class skiing and snowboarding with 30+ feet of annual snowfall, is a bustling alpine town. Winter draws enthusiasts for skiing and snowmobiling, while summer sees a shift to mountain biking, hiking, and lakeside activities.
The town's economic resilience is evident with major mines and logging operations, creating a steady demand for accommodations. This diverse economic base ensures high hotel occupancy rates, offering enticing investment opportunities. Fernie's blend of recreational allure and robust industry sustains a thriving market, making it an appealing destination for both tourists and potential investors.
Progress/Proof
Snow Valley Lodging holds an impressive track record of being highly profitable for over 5 years. With annual revenues exceeding $1 million and a robust Net Operating Income of $474,890. Garnering a stellar 4.5-star review rating and a vibrant social media presence, the hotel is a customer favourite.
Loyalty shines with a substantial base of returning guests, attesting to a continuous commitment to excellence. The hotel also has a multitude of future bookings indicating sustained demand and confidence in the hotel offerings.
In summary, Snow Valley Lodging is not just an accommodation space; it's a proven, profitable venture with a solid financial track record, a loyal clientele, and promising future bookings.
Objectives/Future
Explore our investment deck for an in-depth look at our value-add opportunities, aiming to propel the hotel's valuation by over $2 million in 3 years.
Link to investment deck with more info: https://drive.google.com/file/d/1tLIQWqba2xOTQiDZNnEutZPR9ee...
Five key areas of strategic focus:
-Workforce Optimization
-Pricing Strategies & Optimization
-Marketing Excellence
-Local Partnerships
-Guest Experience Enhancement
Our mission is to redefine hospitality, transforming the hotel into more than just a place to sleep—it's the destination. By enhancing customer service, enriching amenities, and creating resort-like packages, we aim to offer an extraordinary experience. Staying with us goes beyond accommodation; it's an immersion into an unforgettable journey.
The Team
Our team is highly experienced with a proven track record in short-term rentals and boutique hotels. Once we take possession of the hotel Tom will relocate to Fernie to run the deal, manage the team, and implement our value-added strategies to improve the valuation of the hotel.
Currently, the hotel has a team of 6 full-time employees with a manager who has been running day-to-day operations for the past 4 years.
Tom Sullivan
Tom is a seasoned entrepreneur in the hospitality industry with a background in internet marketing. Over the past 3 years he has built and led a portfolio of 24+ short-term rentals and is a top rated Short-Term Rental operator in British Columbia.
Known for maintaining an exceptional 97% occupancy rate across the entire portfolio, while holding an average review rating of 4.9 stars. Tom specializes in hospitality and corporate housing with strengths in team building and leadership.
Sean Rakidzich
Sean has over 9 years experience in the short-term rental space holding a portfolio of 230+ short term rentals and boutique motels. He has been Tom’s personal coach for over 2 years and will be consulting Tom and the Avenue Enterprises team through the optimization and acquisition of Snow Valley Lodging.
The Deal
Raising 2.2M CAD - Min 50k investment per investor
-We are raising a total of $2.2 million to acquire the hotel. (Note: currently the deal is partially funded)
-Investors will take an equity position and will be paid 70% of the net profits which works out to an average 12% annual Cash on Cash return (dividend).
-Forecasted outsized returns due to the hotel's established success and our plan to increase the Net Operating Income (NOI) over the next 5 years.
-In year 5 we will refinance the property, investors will receive their full investment back, and shares will be purchased back from investors at the new valuation.
-Projected 3.4 - 4.1x return on investment at year 5.
Equity Breakdown:
50k investment = 1.5% equity
100k investment = 3% equity
200k+ investment = 3.5% equity per 100k
See page 4 in the attached investment deck for more info: https://drive.google.com/file/d/1tLIQWqba2xOTQiDZNnEutZPR9ee...
Our proven success and strategic growth plans make this an exciting investment opportunity. Check out the full investment deck for more details (Link above). If you're ready to diversify your portfolio with a highly profitable boutique hotel that goes beyond accommodation, this is the deal for you. Send me a message today with any questions, or inquiries and let's connect.