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In short:
In our first funding round we plan to raise USD 225.000,– / Euro 205.000,–.
This loan can be backed by a mortgage on the land where the hotel will be built. The interest will be 9% yearly.
During this 12 month phase we will work out the final design and engineering of our hotel, its siting, land preparation and property division as well as preliminary road building. Our legal partners will assure we get the paperwork wrapped up to develop a hospitality operation and take advantage of the tax exemptions offered in Panama.
With the aid of drones and LIDAR technology our property will be fully digitalized to aid the above tasks. This will include our tree inventory so we can start developing a smart forestry management plan.
We will also study the rain pattern and flow in the several streams and rivers on our property to evaluate the potential for mini-hydropower. With our PR-partners we will work our PR and marketing plan.
Upon completion of this phase, we will be able to start our second round of funding to actually build the hotel.
Second round:
Property in general over the past years has developed into a preferred investment route, in comparison to poor returns from traditional savings accounts, and has generated overall better returns than stock and shares over the past 20 years.
We plan to raise our money by selling the hotel room cabins in our project. The property will be organized as a condominium (PH in Panama) so each investment corresponds to a titled property.
Hotel room investment is considered a property investment no other than a buy-to-let, however it is a truly hands-off, and hassle free investment as the hotel management company manages everything on your behalf of as an owner, safeguarding your investment.
The management company of the hotel pays out the returns on investment on an annual basis. All investments are in US Dollars (Panama’s currency) and all returns will be paid out in US Dollars as well.
We plan to put between 25 and 30 rooms on the market with an estimated average selling price of USD 110.000,–.
We will start building when half of the rooms are sold.
Return on investment
A 7 or 10 year investment plan is offered with returns up to more than 7% average per year (remember part of our profit will go to purchasing more forest for protection). After year 10 and in the case that the owner chooses not to sell the unit, the return on investment will be determined based upon profits previously realized by the hotel management company. The owner will receive a renewal proposal for consideration.
Exit strategy
As with any investment the investor should be familiar with the options for exit. We will offer a number of exit strategies:
- At the end of year 7 a guaranteed buy back of your unit at 105% of the purchase price is offered. The unit will be bought back within a maximum of 12 months.
- At the end of year 10 a guaranteed buy back of your unit at 110% of the purchase price is offered.
- At any time you have the option to sell your unit on the open market.
Owners Club
We highly value our investors. Therefore we will create a membership club for our owners (or their friends or family) to enjoy a superior hotel experience in the project in which they have invested.
As a member of the Owners Club they will be rewarded with a collection of exclusive privileges and generous discounts while staying at Lujo Verde Landscape hotel.
The following privileges apply to Owner Club members:
Silver (one unit):
- One becomes a silver member through an investment in one unit.
- One week free accommodation in the same cabin type as invested in (subject to availability).
- 15% discount off accommodation rack rate (or lowest room rate).
- Early check-in (peak season subject to availability).
- Extended checkout (peak season subject to availability).
Gold (two units):
- One becomes a gold member through an investment in two units.
- Three weeks free accommodation in the same cabin type as invested in (subject to availability).
- All silver benefits plus:
- 15% off spa treatments.
- 20% discount at the bar.
Platinum (three units or more):
- One becomes a platinum member through an investment in three units or more.
- Six weeks of free accommodation in the same cabin type as invested in (subject to availability).
- All gold benefits plus:
- Free upgrade to next cabin type (subject to availability).
3rd stage Development
As construction of our hotel will get underway, we will also set aside a part of our reserve to create a 2 acre (8.000 m2) home sites for those who would like to live long term in their own private nature retreat. Such homes will have to meet the same stringent (LEED) building standards are the hotel . Owners may also decide to make their home available for rent, managed by our hospitality management company.
Proceeds of this development will be mostly used to buy more forest under threat of deforestation as part of our quest to restore/safeguard the Mesoamerican Corridor. See also our goals page. Needless to say that such additional land purchases might also be developed as we do with this project.
The ultimate goal – for now – is to protect 24.000 acres (10.000 hectares) in the next 7 years.
Below an inspiring example of how such a rainforest villa might look like.