Available for funding: €0
Annual return rate:
Earn:–per year *
The “InRento” team presents a new buy-to-let investment opportunity: Avanti Hotel I. The investment offer is a hotel - AVANTI - located in a popular tourist destination in the northern part of Lithuania, the city of Biržai, at the address: Maironio str. 8, Biržai.
The hotel covers an area of 1080.44 m², consisting of 19 rooms, a conference room, a restaurant, a café, and common areas. The hotel has a private territory, including parking for guests. The site is guarded and monitored with security cameras.
The AVANTI Hotel generates revenue and is operational. However, the hotel’s renovation is planned in order to increase profitability. This will include both interior and administration aspects.
The owner, Justas Kaveckas, has already completed two projects on InRento (Modern office and S11-A, Vilnius). The average annual return for investors was 19.49%. As Biržai is his hometown, he knows the city well and sees the potential of this project.
The project owner will pay a fixed 8.01 – 8.51% annual interest (as a rental return) depending on the amount invested. The project also has a fixed percentage of capital gains. Investors earn a fixed 3.25% return on capital gains per year, which raises the overall return on the project to 11.26% – 11.76% annual return based on the amount invested.
This project has a timeshare, meaning that investors can stay in this hotel for free if they invest more than EUR 5000 (more information at the bottom of the project description).
We invite you to learn more about the city of Biržai.
Reasons to invest in the project Avanti Hotel I:
Financial terms of the investment:
InRento investors are granting a loan to the borrower. The loan is secured with a first-charge mortgage which in case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset.
Investors in this project have the opportunity to stay free of charge in the hotel:
Investing 5,000 EUR or more:
1 nights during on-season;
2 nights during off-season;
Investing 10,000 EUR or more:
2 nights during on-season;
4 nights during off-season;
Investing 20,000 EUR or more:
5 nights during on-season;
9 nights during off-season;
On-season: from May 15th, until September 30th. The reservations shall be made at least 45 days prior to the stay. In order to claim the vouchers, write an email to firstname.lastname@example.org with your planned days of staying. Under 20,000 EUR investing you can only use the offer once.
This project will be funded in three phases:
The first (Avanti Hotel I) will be funded with EUR 295,000 amount;
The second (Avanti Hotel II) will be funded with EUR 95,000 amount;
The third (Avanti Hotel III) will be funded with EUR 45,000 amount.
The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalment ("Instalment"), with the return for each successive Instalment being added to the calculation of the return. The Instalment shall be considered as per one calendar year. A fixed increment of 3.25% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 3.25% applies. If the Loan is repaid after 24 months, a fixed return of 6.5% applies. If the Loan is repaid after 36 months, a fixed return of 9.75% applies. If the Loan is repaid after 48 months, a fixed return of 13% applies. If the Loan is repaid after 60 months, a fixed return of 16.25% applies.The profit margin is payable whether or not the Loan is repaid on sale of the property.
Up to 4999 € - the annual return is 8.01% + 3.25%.
5000 € – 14999 € - the annual return is 8.11% + 3.25%.
15000 € – 29999 € - the annual return is 8.21% + 3.25%.
30000 € – 49999 € - the annual return is 8.36% + 3.25%.
50000 € and more - the annual return is 8.51% + 3.25%.
Rental income (interest):
Rental income (interest) is paid to investors on a monthly basis (on the 12th day of the month). If the 12th day is a non-working day, then the next working day.The interest will be paid out the next month on the 12th after the mortgage is placed. The interest is calculated after the mortgage is being placed.
The project owner (borrower)
The borrower – UAB „Biržai hotel“ is an established legal entity to serve as a special purpose vehicle for a purpose of increased security for the investments on InRento. The manager of this company - Justas Kaveckas has been working in the Real Estate industry for more than 15 years. He has successfully commercialized residential, commercial, and hospitality projects internationally and counts numerous successful sales of companies operating in the real estate industry.
Justas Kaveckas is also the executive director and one of the founders of „Foros“, the forest management and investment platform.
Frequently asked questions
When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is charged to the seller.
Yes! No matter what is the situation with the tenancy, the project owner is obliged to distribute fixed-interest to the investors.
When the property is sold at a higher price than it was acquired, the capital growth will be distributed among investors, project owner and InRento. The project owner assumes potential loss if the property is sold at a lower price. You can find more details by scrolling up this page.
Key investment risks:
Risk of falling prices: The price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.
Liquidity risk: The borrower might be unable to find a buyer in order to sell the property.
Tenant risk: There is a risk that the asset can lose a tenant and it can take time to find replacements, which can have impact on the property's cash-flow.
|Borrower's equity exceeds the amount of financing needed||1 / B|
|Borrower's last year's net profit is sufficient to cover the fixed-interest||1 / B|
|Borrower's ability to repay liabilities in the past||-1 / A+|
|Property price comparison to a 3rd party valuation||0 / A|
|Property type||1 / B|
|Borrower's experience with rental properties||0 / A|
|Property occupany over the last 2 years (if it was rented)||2 / C|
|Will the property require renovation||2 / C|
|Micro-location||0 / A|
|Years since last renovation of the premises||1 / B|
|Does the property have elevator if it's not ground floor?||1 / B|
|Does the property have dedicated parking slot near premises? (long-term rent)||0 / A|
|Does the property have security? (for commercial)||0 / A|
|Property has been for sale for less than 1 year?||0 / A|
|Property has all applicable certificates/zoning rights with at least 2 years before expiry date||0 / A|
|Borrower's Debt / Equity ratio||0 / A|
|Total:||8 / B|
*InRento Risk rating is of an informative nature only and can not be considered investment advice. InRento is licenced and regulated by the Bank of Lithuania.
Investing with InRento is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancies, the borrower is required to distribute fixed-interest payments, which protects your bottom line.
We would like to inform you, that the mortgage on the project – Avanti Hotel asset has been successfully placed (the document is attached in the documents section). The interest for the project will be distributed next month.
If you have any questions, do not hesitate to contact us at email@example.com or call us at +37069347427.