WHY IS FIVE ELEMENTS HOTEL CHAIN ATTRACTIVE INVESTMENT?

KEY PARAMETERS FOR MINI HOTEL

Number of rooms Between 20-100 rooms per hotel for ease of management
Number of floors 8-10 floors which is allowed under current regulation
Room size 20-25 sqm per room and all rooms must have windows
Room rate US$70-120/room/night, depending on location
Financial leverage Maximum 40% debt
Required Yield 14% – 15% operating cash flow yield-post management fee
Required Return At least 20% IRR (post all fees and taxes)

Vietnam lacks high quality boutique hotels:

SUCCESSFUL HOTEL CHAINS IN JAPAN


Five Elements Hotel Chain