A Fabulous deal at Lake Atitlan in Guatemala – A Unique and Fully Booked Resort – Turn Key! Great Returns
Sale price: $1,500,000
The income and expenses laid out here are before March 2020. As of October our rates of occupation have been steadily increasing and through TripAdvisor, Expedia, Booking.com and Airbnb been getting reservations not just for this year but next year as well from foreign tourists which looks like it will be back to normal business by November when the high season starts here.
The Bed and Breakfast has been in business since 2006 and since 2013 has been number One on TripAdvisor of the 32 hotels in Panajachel.
There are 9 yurts. Each yurt has a bedroom, en-suite bathroom and private terrace. They vary in size and rate which is set by the tourist board. Those prices are 50% higher than what I charge leaving room for change. I think that as soon as the occupancy returns to some normalcy the current rates can be raised. Our direct competition in the area have considerably higher rates. Those are hotel Casa Palopo, https://www.casapalopo.com/ and hotel Balam ya, https://www.balamya.com/
Rates:
5 of the yurts are approximately 200 sq ft of space at $90 a night
2 yurts are approximately 500 sq ft of space at $110
One yurt which sleeps 5 has 800 sq ft at $150
The 9th yurt which I occupy right now is 1,300 sq ft and I think can be rented for $150 a night
Occupancy
Before March of last year the occupancy for the past 6 years was 78% from November to the end of April and 45% from May to the end of October. I think that this difference is due to schools and colleges’ time tables for foreign guests.
Maintenance and Repair
All the windows and doors were sanded and varnished in April/ May: $250
The roofs were repainted as well as the handrails and all 700 posts that hold the handrails: $200
The gas hot water heaters were given a cleaning, there are 4 of them and that was $80
As you can see, costs in Guatemala are still very low.
There is parking spaces for 7 cars. Foreign guests typically arrive in taxis.
When I built this place I was always thinking about low maintenance costs.
Income:
For the 3 years prior to 2020 the average gross yearly income was $177,905
Costs: $49,952
The business is registered as a small business and the income tax in 5%
The accountant comes each month to pick up the receipts and does the taxes. That cost is $13 a month.
There is a tourist tax on the rooms which is 10% on declared income. This usually comes to about $125 a month.
The municipal tax on the property which includes garbage pick up is $243 a year.
Cable TV ( there are tvs in each yurt), is $42 a month
Internet, we have good internet throughout the property, 10mgs, is $61 a month.
Average electricity per year: $2,780
Gas. Showers are on demand gas hot water and the kitchen has two gas stoves with ovens. Per year: $1,589
Staff:
There are two housekeepers and one in charge of laundry: Combined salary per year is: $11,125
two bar/waiters combined salary per year: $7,417. They get additional tips shared with the kitchen staff.
three kitchen staff combined salary per year: $10,754
Gardeners, one full time, one part time, combined salary per year: $5,605
Night watchman per year: $3,337
These salary prices include two weeks holiday a year and national holidays. It also includes the extra 3 month of salary they get in July and December. In other words, they receive 14 months salary per year.
Housekeeping supplies including breakfast food cost is approximately $4,210
total cost: $49,952
Average Gross Income: $177,905
I have not included Income from the restaurant because this is an area that I have not promoted. Potentially that can be a comparable income or more than the rooms.
The other potential income can come from the Palapa by the pool which is a huge area for yoga, meetings, parties, retreats and so on.
I also arrange for transport from the airport and Antigua as well as tours and other activities in the area… extra income.
Everything as far as the business and property 100% is turnkey. Name changes are easy.
One more mention, you will see in the photographs a couple of photos of the cable car.
One of the yurts has access to the cable car which has proved really great for guests who can’t do so many stairs.
The whole place comes completely equipped, restaurant kitchen is fully functional and is currently open. there is everything to sit 75 people.
The bedding is all complete, two changes. 600 count Egyptian cotton sheets.
The yurts are decorated and have good artwork on the walls…
I’m happy to serve as consult with anyone buying this place and helping with settling in and familiarizing them with the area and any training necessary for a manager or staff.
Sale price: $ 1,500,000
Dwierman@Gmail.com Cell: 864 991 6858