Earn & GROW MODEL
Realistic earning scenario
THE STUDIO
ONE-BEDROOM
TWO-BEDROOM
GARDEN VILLA
BEACHFRONT VILLA
In the next sections, we will look into the hotel (EARN) business model, revenue, and cost structure based on our experience from managing The Nest Boutique Resort in Zanzibar. We have reviewed different scenarios based on official historical data. Following we have analysed how have similar markets developed in order to forecast value increase (GROW). Finally, it is important to properly maintain the properties in order to preserve the value of the asset.
Great Location & Growth Market
EARN: Reliable Business model
Based on 365 days of sunshine, the average occupancy in Zanzibar varies between 55% and 70%. Well managed properties earn well for their owners. Our experience from The Nest Boutique Resort allows us to manage:
YOU SIT BACK & EARN AFTER TAXES
The rates we have budgeted are 20% less than the neighboring hotels. The occupancy is based on different island-wide models that we have seen work in The Nest Boutique Resort already. Let us look at the Occupancy.
The market is showing tremendous growth over the past few years, almost doubling in size in the 5 years before COVID 19. Preliminary data for 2022 shows growth over 2019 (pre- COVID) tourism levels. This delivers exceptional occupancy levels.Â
The profit model is based on our experience in running hospitality and on industrywide standards. Rates are based on conservative rates compared to neighbors in our competitive mix in order to guarantee occupancy results. This is the cost model:
GROW: increase in asset value
The Zanzibar market is quite early stage in terms of maturity. A good benchmark market is Mauritius: