The investment desk · September 2026
The building.
The business.
The return.
Start with the nightly rate, occupancy and a paid team. Then change the acquisition price and see what remains after the works and replacement reserve.
Earlier screening memo · PDFThis baseline memo does not cost the full renovation concepts. Their budgets, closure periods and operating assumptions require a new investment case.
This earlier model contains a base case only.
Price sensitivity, not an agreed discount. Only purchase price and its 12% transaction allowance change; operating income stays the same.
The full renovation concepts are not costed. This sensitivity increases works and contingency while keeping operating income unchanged; it does not forecast a higher room rate or capture extra closure costs.
€171k cash after replacement reserve ÷ €3.99m screening capital.
Unlevered; before income tax. Not IRR.
- Net rate / occupied night
- €220
- Annual occupancy
- 52%
- Guest units modeled
- 15
- Annual revenue
- €783k
- NOI before reserve
- €203k
- Annual paid staff (FTE)
- 8
Earlier screening budget: reopening losses, holding costs and some fees/FF&E have no separately verified allowance. Yield will fall when unfunded costs are added. These are post-improvement assumptions, not current trading. Net rates exclude accommodation taxes and precede commissions; occupancy uses all 365 days.
Where the money goes
Allowances need a measured survey and contractor pricing. Financing, tax and any extra central costs are excluded.
A year of operations
What supports the nightly-rate assumption?
Current operator from €143 standard to €296 family, gross with breakfast; proposed €220 NET average needs mix and pricing validation.
Starting prices and individual stay quotes do not establish achieved annual ADR. The target must be tested with monthly room sales, rate mix, seasonality and booking pace.
View the source propertyFive new priority hotels
Compare the operating cases.
Annual cash yield after reserve · base · purchase at 100% of ask
Bars show magnitude; minus signs denote losses. New-five total: €219,961 annual cash / €15.20m capital = 1.45%. No negotiated discount is assumed to be available.
| Property | Net nightly rate | Occupancy | Annual NOI | Annual cash* | Capital | Cash yield |
|---|---|---|---|---|---|---|
| El Palomar de la Breña15 conditional units · 7 paid FTE | €175 | 50% | €83k | €60k | €3.94m | 1.52% |
| Casas Cueva La Tala16 conditional units · 4 paid FTE | €135 | 45% | €72k | €57k | €1.90m | 3.00% |
| Hotel Rural Casablanca20 conditional units · 7.5 paid FTE | €135 | 58% | €88k | €63k | €4.41m | 1.43% |
| Casona de la Pinta14 conditional units · 4.5 paid FTE | €130 | 50% | €40k | €26k | €2.33m | 1.11% |
| La Alquería de los Lentos14 conditional units · 5.5 paid FTE | €140 | 46% | €30k | €14k | €2.61m | 0.53% |
*Cash follows the 4% revenue replacement reserve. Full figures are available in each property’s model above. Upside includes extra paid staff but holds the capital allowance unchanged. It needs stronger demand and execution; it is not a promise.
The seed & longer conversions
The earlier models,
kept in their own group.
| Property | Net nightly rate | Occupancy | NOI | Annual cash | Capital at ask | Cash yield |
|---|---|---|---|---|---|---|
| Cortijo del MarquésProposed seed | €220 | 52% | €203k | €171k | €3.99m | 4.29% |
| Can TraverUnverified · wider pipeline | Unknown | Unknown | Unmodeled | Unmodeled | Unknown | Unknown |
| Llagostera historic estate16 assumed · wider pipeline | €240 | 48% | €256k | €223k | €4.52m | 4.93% |
| Castell d’Empordà historic masia16 assumed · wider pipeline | €250 | 50% | €299k | €262k | €4.84m | 5.41% |
These base cases omit separately identified reopening losses, holding costs and some capital detail. They are not directly comparable with the five new models. Can Traver has no operating model; missing figures are unknown, not zero.
How to read the screen
Price can change. Costs still have to be paid.
NOI here is property revenue after paid operating costs and a 3% management/support allowance, before the 4% replacement reserve. The displayed cash yield deducts that reserve. Neither measure includes debt service, income tax or further collection overhead beyond the modeled support.
The nine asking prices total €17.35m. That is a listing-price total, not a capital requirement. We do not combine all nine into a portfolio return because Can Traver is unmodeled and the capital budgets differ in scope.
Negative scenarios show what could happen under these assumptions. They do not establish that a seller currently loses money or is distressed. The next step is to obtain actual monthly trading and negotiate against verified economics.
How we would build the business