PROOF OF CONCEPT
ROI
CPI II will be the continuation of CPI I, established in 2017, where we implement all the best learnings from our first investment fund. We have learnt what precisely and most significantly impacts the ROI for our investors.
Our first fund, CPI I, is, so far generating ROI of xx% for the investors. There are three main reasons for the high ROI generated from this business model:
- Higher rental prices: because there is insufficient hotel capacity for convention goers, the need for serviced apartments is very strong, and rental prices equally very high. In fact, our Average Daily Rate (ADR) for one of the apartments of the CPI I investment fund is 262€, which is 7 times higher than the global average daily rate on Airbnb, see comparison below:
- Low occupancy rates, is normally considered as a negative thing in the short-term rental industry. However, as we plan to sell the apartment after only 5 years of operations, we benefit from the apartment not having been over-used, with no significant wear and tear issues. Consequently, the apartment will still be in excellent condition, the day we want to sell it, with has a positive effect on the selling price, see also below.
We achieve this very high ADR of 1.262€ with an occupancy rate of only 26,44% (the apartment was rented out just 92 days).
The low guest occupancy rate has another advantage, as the apartment(s) will then be more available for own use by the investors.
- Higher selling prices: after 5 years of operation, we will sell the apartment with a proven rental history, which makes it more attractive on the market, compared to other offerings without the rental performance. In fact, our recent market analysis show, that we obtain a 26% higher selling price using this model, than selling a similar product without any rental history.
In case you are interested to receive a copy of our market analysis, of selling prices with and without rental history, please click here (link to Contact Us)
Renovation & development
We have developed a strong renovation team consisting of selected craftsmen each with the special core competencies, and with whom we have already renovated 14 apartments. This team will optimize for optimal rental revenue and sales value providing maximum benefit to both our rental clients during the operations phase and ultimately, the new owner(s) to whom the apartments will be sold to, during the exit phase.
Our renovation team has learnt to respect our methodologies for stringent budget controls and project timelines.
Rental
With only about 8,000 hotel rooms for about 280,000 professional congress delegates, there is a significant need for additional room capacity, hence why the business model of investing in apartments in Cannes is so profitable.
Another the big advantage for our investors is the fact that we can work seamlessly with our sister company, QAUTIO, which is one of the leading rental agencies in Cannes. This complementary business collaboration, enables access to the big customer database of private and professional rental clients, created since 2008, which we can leverage for the CPI II apartments.
Some of the recurrent corporate rental clients of QAUTIO are:
QAUTIO has an experienced team of rental managers, state of the art booking systems, which connects seamlessly to all the leading booking channels like, Airbnb, Booking.com etc.
This connection to, and exclusive rental mandate with QAUTIO, will ensure our investors, that the apartments acquired, will have a strong rental revenue right from the first day of operations, until the asset is sold during the exit phase, some 5 years later.
See more about QAUTIO Rentals here