Hotel Catania, Italy V
Reasons to invest in the project Hotel Catania, Italy V:
- Attractive Returns: 9.25 – 10.5% p.a., paid monthly;
- Fixed Capital Gains: 1.5% p.a., paid at maturity;
- Loan-to-Value (LTV) Ratio: 62% (max. 70%), with a collateral value of EUR 3,900,000;
- Growind Demand: Sicily is one of the most popular tourist destinations in Italy;
- Investment Security: first-rank mortgage on project assets and a surety agreement.
The InRento team presents fifth financing stage for buy-to-let project in Italy, Sicily – Hotel Catania, Italy V. The investment offer consists of a three-storey building located in the Old Town at the following address: Via Fortino Vecchio, 100, 95122 Catania, Italy. Currently, the building consists of 18 residential apartments with a total area of 1,460 sq. m. The project aims to convert the building into a 4-star hotel with 35 rooms, a swimming pool, an outdoor terrace, and a restaurant.
The project is located in Catania, the second largest city in Sicily, located in a key tourist area of southern Italy. Catania is known for Mount Etna and its vibrant local culture, making it a popular destination that attracts tourists all year round. The funded project’s location is strategically convenient - right next to the historic part of the city, with easy access to the central train station and Fontanarossa International Airport.
Since the previous funding stage, a new roof structure has been installed, and most structural reinforcement works, including the strengthening of walls and ceilings, have been completed. Installation of the electrical, water supply and sewage systems is nearing completion, while the facade has been plastered and is being prepared for final painting works.
The project owner has experience implementing hotel rental concepts. The occupancy rate of managed projects is 85-90% throughout the year. This is due to high-quality, well-designed interiors and competitive prices that attract guests even during the off-season. Similar results are expected for this project.
After the renovation, the hotel’s projected revenue for the first year of operation is EUR 968,857.
The project is managed by two experienced real estate professionals – Lina Baronaitė and Gediminas Kvedaris – each with more than ten years of experience in real estate development. They have successfully implemented several short-term rental projects in Lithuania's largest cities – Vilnius, Kaunas, and Klaipėda – and internationally in Lapland, Finland.
Lina and Gediminas also manage projects already financed through the InRento platform, including Noa Villas, Finland, P10, Riga, KB21, Riga, V50, Vilnius, Villas Lapland, Finland, San Berillo, Catania and Old Town Stay, Vilnius. The project owners also successfully realised a project financed on the InRento platform – P6, Kaunas.
The project is secured by a first-rank mortgage on the project assets with a loan-to-value (LTV) ratio of 62% (max. 70%). The project offers investors a fixed monthly interest of 9.25 – 10.5% p.a., along with fixed capital gains of 1.5% p.a., paid at maturity. This results in a total gross profitability ranging from 10.75% to 12% p.a.
The maximum project duration is only 24 months.
This project has a fixed annual return on capital gains –
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 1.5% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 1.5% applies. If the Loan is repaid after 24 months, a fixed return of 3% applies.
The profit margin is payable whether or not the Loan is repaid on the sale of the property.
Read full information on pricing on this link.
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