WHY IS FIVE ELEMENTS HOTEL CHAIN ATTRACTIVE INVESTMENT?
- The hotel chain can benefit from low cost on per hotel basis as a result of economy of scale.
- Our key operating and return measures ensure only the most profitable projects are selected.
- We have a pipeline of land choices in hand and ensure that only best locations in town are selected.
- Basket of investment in hotels diversify risk
- We invest in Real Estate project with our own capital and along with other investors.
KEY PARAMETERS FOR MINI HOTEL
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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:
- The proposed hotel project can be potentially fill the gap between 5-star and 3-star hotels.
- The hotels shall be in good locations, well-managed and high connectivity to city transportation hubs.
- The theme of the hotel chain is the balance of the five elements and in harmony with nature/environment.
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SUCCESSFUL HOTEL CHAINS IN JAPAN |
Five Elements Hotel Chain
- The goal is to develop and manage a chain of high quality hotels throughout Vietnam.
- We aim to build 20 hotels throughout the country.