Playa Heaven Rooftop

Asking Price 679K USD.
Estimated Annual Return: 68%

This cash machine property is conveniently located in an up-and-coming area next to Avenida Benito Juarez, one of the biggest avenues in all of Playa Del Carmen Mexico. The building is a well planned hostel style budget hotel, that has an amazing rooftop with a bar and a sun deck.

The area boosts numerous new building projects and will likely grow significantly in the coming years, making way for property value increase in the double digits. And don't forget that Playa Heaven Rooftop has it's own water well, which means that the property has unlimited free water supply forever!

The property is a 5 level Townhouse building, conveniently located in an up-and-coming area called Ejido, next to Avenida Benit Juarez, one of the biggest and most trafficked avenues in all of Playa Del Carmen.

The lot size holds 136 square meters, and the total construction equals 574 square meters, where the bottom 3 levels contain bedrooms, showers, toilets, reception, and an outdoor kitchen area. And since the Playa Heaven Rooftop is equipped with 26 highly efficient solar panels, the property never ever cost anything in terms of electricity, the bill comes once every 2 months, and always says ZERO!

The building is a well planned hostel style budget hotel, that has an amazing rooftop with a bar and a sun deck. The area boosts numerous new building projects & will likely grow significantly in the coming years, making way for property value increase in the double digits.

The good thing about investing in a rooftop hostel with a bar, is that, with the right concept and the right management, the investment pays off in a bigger way, because of all the extra services you can sell the guests. While normal investment condos and houses average an annual return of around 10-12%, Playa Heaven Rooftop can cashflow around 60-80% per year after all expenses are deducted. See estimated returns below!

THE BEDS:
Average hostel bunk beds in Playa Del Carmen go for as low as 10 usd a night in low season, and for around 30 usd a night in high season. So with 120 bunk beds, Playa Heaven Rooftop will generate 1,200 usd per day, 36,000 usd per month, total 432,000 usd per year, just on bunk beds alone.

THE BAR:
The rooftop bar will be an automatic income where hostel guests will be able to eat, drink and socialize with fellow travelers. A low estimate of average guest spend in the bar is set at 15 usd per day, which brings the income generated by the bar up to 1,800 usd per day, 54,000 usd per month, and total 648,000 usd per year.

THE EXTRA SERVICES:
In addition to all the bunk beds and the rooftop bar revenue, Playa Heaven Rooftop can also offer a wide range of services to guests, such as scuba diving, cenote tours, bike rentals, ferry tickets, laundry service, laughing gas, coffee, foods (for the shared outdoor kitchen), pad locks for the lockers, towel rental, currency exchange, beach trips, bar tours etc.

And these extra services, if marketed correctly, will most definitely total at least another 20-40 usd per guest (The tours alone have the potential to bring in more than the bunk beds and the rooftop bar together). So a low estimate of average guest spend on extra services is set at 20 usd per day, which brings the income generated by these services up to 2,400 usd per day, 72,000 usd per month, and total 864,000 usd per year.

TOTAL RETURNS:
So the bunk beds, rooftop bar, and all the additional services together, brings the annual return up to 1.944.000 usd. And with only 60% occupancy, the annual return would be 1.166.400 usd.

And let's deduct 60% from that for all expenses, and you'll be left with the 40% = 466.560 usd per year in returns. So with a price point of 679.000 usd. for the property and the business as a whole, gives you an annual return of more than 68%. And let's say you're a terrible manager, and you only yield half of these already low estimates, you're still cash flowing 34% per year, after all expenses are deducted.

REASON WHY I'M SELLING:
Starting this hostel has been a life long dream. Ever since I started backpacking back in 2003, I've had the privilege of traveling in 106 countries on 6 continents. And during this time I've stayed in hundreds of hostels over the years.

And this experience has given me a very unique knowledge about how hostels work, operate and profit. I've learned how much money the guests spend, and what items and services are in demand. So for many years I've been planning to build Playa Heaven Rooftop, which is designed to facilitate exactly what hostel guests want and need, in order to maximize both profite and costomer satisfaction.

So it's very sad that I'm forced to sell my beloved property and all it's potencial. But I'm a business man at heart, and during the construction of Playa Heaven Rooftop, I also started another business in addition to my immigration service business. So the reason why I'm selling, is beacuse I simply don't have enough hours of the day to manage it all. But I'm confident that the new owner of Playa Heaven Rooftop will do very very well.