INVESTMENT

The concept behind Green Waves Villa is to provide villa owners with a fantastic vacation home as well an attractive commercial investment. With its cutting edge' architecture, expansive land and floor areas, contemporary upscale furnishings and accessories, and top of the line service Green Waves Villa will be a very sought after location for international booking agents.

One key element that separates Green Waves Villa from other villas on the island is that it will be operated by a professional management company with a long and successful track record in commercial rental of private villas. Many other villa developments are run by people with no previous management or rental experience.

PT. ARRA BUANA INTERNASIONAL, the company contracted to manage both the day-to-day operations as well villa rental marketing, has recommended a strategy offering discounts of 20% or greater for the initial year of commercial operation. It serves to create a high level of occupancy and awareness in the first year which then carries forward into following years which are priced at regular rack rate. In reference to the yield tables below, this is the key explanation for the large percentage jump in Year 2 compared to Year 1.

 

6 YEARS REVENUE AND RETURN ON
INVESTMENT PROJECTIONS
  YEAR 1
2008 		YEAR 2
2009 		YEAR 3
2010 		YEAR 4
2011 		YEAR 5
2012 		YEAR 6
2013 		TOTAL
6 YEARS
Occupancy 50% 55% 60% 60% 60% 60% 58%
Average Net Rate 265 285 310 335 335 335 311
REVENUE
Revenue (8 Units ) 386,900 400,496 475,230 513,555 513,555 513,555 2,803,291
Revenue per villa 48,363 57,214 67,890 73,365 73,365 73,365 393,561
EXPENSES
25% Management Fee 12,091 14,303 16,973 18,341 18,341 18,341 98,390
Annual Expenses 13,320 14,652 16,117 17,729 19,502 21,452 102,772
Total Operational Cost 25,411 28,955 33,090 36,070 37,843 39,793 201,162
PROFIT PER VILLA 22,952 28,258 34,800 37,295 35,522 33,572 192,399
Return On Investment 9.56% 11.77% 14.50% 15.54% 14.80% 13.99% 80.17%