Hotel Neufchatel

Participatory notes Belgium 95 crowd investors so far
A brand new 4 stars boutique hotel in the city center of Brussels.
€835,727
Pre money valuation
9.5%
Equity offered
€82,100
Already invested by crowd
€0
Committed by pros
0 days
Remaining
€50,000
Crowd target
100
Already 164% crowdfunded
This campaign ended on 2014-07-15

Introduction:

Launched in 2004 and completely renovated in 2012, the Neufchatel Hotel has become today a "place to stay" in Brussels. The Neufchatel, this 3 stars hotel, offers:

A good location for business and leisure travelers ; A warm and elegant decoration ; Comfortable rooms with rain shower, king size bed and high-speed Wi-Fi ; A personalized and familial service.

In order to grow and to provide its clients with a complete range of services, Neufchatel intends to acquire a « Maison de Maître » in the same area. This 800m2 building will be extended to 1550m2 and then transformed to offer 30 rooms of 4-star class at prices 20% higher than in Neufchatel.

Financial Information:

€99 950 online financing on MyMicroInvest.

Neufchatel intends to raise 1,15 millions EUR this year to finance the first phase of its project, which consists of repurchasing a building and of obtaining a construction permit.

The main part of this financing has already been ensured owing to a 750 000 EUR loan granted by a bank and 300 000 EUR from private investors.

You invest in participatory notes that will be bought according to a pre-established plan and a determined price for 6 years.

These successive purchases will generate a return of 42% on your initial investment.

The rest of the project will be financed in 2015, thanks to a new loan by a bank.

Here is what you get with an initial investment of 1000 EUR:

Key Performance Indicators:

3-fold sales increase between 2010 and 2013 ; 34% profit margin in 2013; €380.000 of operating cash flow; €2.550.000 in debt financing ; €300.000 in capital increase from associates.

Market Size:

In Brussels, there are approximately 200 hotels. They are located in 3 major areas:

Downtown, near the Grand-Place ; European District ; Uptown in the luxury Louise Area which is also close to the famous Place du Chatelain

Each area attracts different types of clients which confirms the positioning of the hotel:

Downtown: mainly tourists European District: mainly European officials Uptown: business travelers during the week, and tourists in the weekend

Competition:

The competition is represented by approximately 10 hotels in a 1km radius around Neufchatel. Rated 3 and 4 stars, these hotels have the same offer as Neufchatel’s.

Here is a list of hotels located less than 1km from the new building that represent a direct competition :

Vintage Hotel (3 stars) ; Made in Louise Hotel (3 stars) ; Manos Stéphanie Hotel (4 stars) ; Manos Premier Hotel (5 stars) ; Mercure Hotel (4 stars).

Nevertheless, the particular features of the Neufchatel Hotel (its size and familial service) enable it to rank second in the hotels scoring of the same area.

Revenue Model:

The current hotel has 30 rooms, at €90 VAT excluded each, with breakfast.
The high season represents 75% of the year (From March to June, and from September to December).

Thanks to the room-filling optimization strategy, Neufchatel has a 97% occupancy rate. To do so, the hotel uses a booking channels management software, so it does not let any channel unused (online reservation for example).

Achievements:

2004, the Neufchatel hotel starts with 8 rooms (2 stars) ; 2005, the current team buys the building and renovates it to have 11 rooms (2 stars) ; 2011, 92% occupancy rate and €200.000 turnover ; 2012, complete renovation of the Neufchatel with 20 rooms (3 stars) ; 2013, 97% average occupancy rate and €600.000 turnover ; 2013, sales increased 3 times since 2010; 2013, 34% profit margin ; 2013, €380.000 operating cash flow.

New Bulding from Hotel Neufchatel In 2004 we started The Neufchatel Hotel with 8 rooms (2 stars) In 2005 we bought the building and renovated it to obtain 11 rooms (2 stars) In 2011 we had an occopancy rate of 92% and a turnover around 210.000euro In 2012 we completely renovated The Neufchatel Hotel to obtain 20 rooms (3 stars) In 2013, the average occupancy rate was 97% and the yearly turnover was around 600.000euro

Problem

We understand that today, business and leisure travelers are looking for:

Small hotels well known as boutique hotels; Hotels where they can feel as valued guests and not just as an ordinary customer; Hotels with a specific decoration that will surprise them; Comfortable rooms with high quality materials; Rooms with a reliable high-speed internet connection; A product offering an excellent quality/price ratio.

Solution

Bed nights will be sold through:

The hotel website; Travel agencies; Portals such as Booking.com, HRS.com, Hotels.com, Expedia.com, etc…; Direct contracts with companies; Direct contract with the European Commission.
This campaign ended on 2014-07-15

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