Reasons to invest in the project Stay Express Hotel, Vilnius III:
20-room hotel located in a very attractive location in Vilnius Old Town, which in the year 2023 generated EUR 155,000 income;
Variable capital gains – up to 32% investor profit share;
Interest is paid monthly with an attractive 9% – 9.4% annual return;
Timeshare – investments of EUR 5,000 or more provide free accommodation in this hotel;
Experienced project owner who has successfully executed projects on the InRento platform with variable capital gains, with an average annual return significantly higher than originally anticipated;
Loan-to-Value (LTV) ratio of 67% for this phase, with a maximum LTV of 80% for the entire project;
An independent appraiser appraised the hotel at EUR 1,199,000.
InRento team presents the third stage of buy-to-let project – Stay Express Hotel, Vilnius III. The investment offer consists of a 20-room hotel located in Vilnius Old Town, at Vingrių str. 14.
The distinctive feature of this project is its location. Guests of the hotel have easy access by walking to many places of interest, restaurants and shops. The MO Museum and Vilnius Town Hall, two of the most popular tourist attractions in the city, are just 300 metres and 600 metres from the hotel respectively.
The total area of the financed hotel is 271.69 m², with twenty rooms spread over three floors. On the ground floor there are six rooms, a reception area and technical facilities. Thirteen separate rooms on the second floor. The ground floor has one room, which can accommodate the largest number of guests, and technical rooms. Each room has its own shower and toilet facilities.
In 2022, the hotel generated revenues of EUR 120,000, with an occupancy rate of 48%. In 2023, annual revenues exceeded EUR 155,000, with an occupancy rate of 55%. The owner of the project plans to generate rental income of EUR 185,000 in the first year of operation and the occupancy rate is expected to reach 75%.
In order to increase the occupancy rate, additional attention will be paid to improving the quality of customer service, new marketing strategies and the optimisation and automation of the hotel operations. Dynamic pricing and contactless solutions will be introduced to make the hotel as autonomous as possible. These occupancy-enhancing solutions will have a direct impact on the hotel's profitability and value.
The hotel was recently renovated in 2021. It has been equipped with a new ventilation system, a fire alarm system, digital satellite TV and wireless communication systems, a new electrical installation and renovation of the common areas and rooms. The hotel has two separate entrances and, very conveniently, parking in the inner courtyard.
In order to further increase the attractiveness of the project, the owner of the project, Rego Properties, is planning to make further investments in the hotel. By adapting to modern trends and needs, the hotel will be made more attractive and cosy, while retaining the spirit of the Old Town of Vilnius. In the first year of operation, the hotel will undergo a name change and a renovation of the façade and the interior of the rooms, without stopping the hotel.
Vilnius is growing and developing rapidly, and together with its rich historical and cultural heritage, the capital of Lithuania is attracting more and more tourists, business people and event organizers. The growing number of visitors directly increases the value of the hotel in case of a sale.
The rising value is of particular interest to investors in this project, as they can earn, in addition to the interest they receive each month, a variable capital gain from the sale of the property at a higher price. The investors' share of the profit (capital gains) can be up to 32% depending on the amount invested. See below for more information.
The owner of this project has already successfully realized a buy-to-let project on the InRento platform in the vicinity of this hotel with variable capital gains, called A19, Vilnius, with an average annual return significantly higher than originally expected. At the same time, the project owner has successfully managed other properties on the platform in Vilnius and Kaunas.
Investors will be paid an attractive fixed interest rate of 9% – 9.4% per annum, depending on the amount invested, every month.
The project also has a Timeshare, those investing from EUR 5,000 and up will have the opportunity to book a night's accommodation and stay for free. More information below.
Please note that the mortgage for this project signed, thus the interest for this phase will start to accrue to the investors as soon as the money is actually disbursed to the project owner.
The maximum duration of the project is 48 months.