Santorini Hotel Resort

Santorini Hotel Resort
Paralia Perivolos, Greece
For Sale 15,000,000€ - Hotels For Sale Greece
SANTOHOTEL19 90 Bedrooms 90 Bathrooms

Santorini Hotel Resort Sale, Santorini, Greece

This Hotel in Santorini Island, is built in 1992 and renovated in 2007, the  Resort is a 90-room, 5* delux property in Santorini near the black sand beach , one of the most popular swimming beaches on the Greek island.

The Santorini Hotel is for sale for EUR 15,000,000

Santorini Hotel Resort Sale, Santorini, Greece

This property includes 9 different hotel buildings around a central plaza and 2 swimming pools. The rooms comprise 16 suites, 74 rooms, and excellent amenities including a conference center seating 150 people, a chapel for on-site weddings, a fitness center, tennis court and other amenities.

There are an additional 20 hotel rooms currently being used for staff housing. The hotel has a spa license

Hotel Financial Status

  • Profitability: 2012 sales of EUR 1.1 ml

The hotel is owned and managed by a family which has reached the age where they want to exit the business.

Hotel Sales Price:

  • Asking sales price: EUR 10,000,000
  • Debt on the books:  EUR 5.000.000
  • Total: EUR 15,000,000 (including the assumption of existing debt)

Current Hotel Management and Marketing

The hotel needs a marketing makeover:

  • It does not have a good selection on online sales channels
  • It does not use customer relationship management (CRM) and yield management to achieve repeat visits, direct sales or sales via customer referrals.

The hotel depends on room income: marketing of weddings, events, and other income categories is under-developed.

 

Hotel Investment Objective

An investor objective should be to raise room occupancy to 74% on a  7-month basis by 2018 and 79% by 2021.

Without tax optimization, operations on a 7-month basis can reach sales of EUR 2.7 mln and net profit of EUR 831,000 by 2020

These results can be improved by tax optimization, yield management, and customer relationship management (CRM) methods.

The hotel is part of a family-owned corporation that owned two hotel properties in Santorini. One of these has been sold earlier in 2013. The financial operations of the present hotel,  where each property was recorded as a separate profit center in the company accounting system. These figures have not been audited or verified by Navigator.

Hotel Occupancy

The main weakness observed of the hotel is variable occupancy, and overall low occupancy even given the 7-month opening period. This is clearly observed in comparing room occupancy. In 2011, the hotel had a record year, with 53% overall occupancy (7 months). In 2012, this fell back to 39%.

The differences in certain months are indicative of the occupancy variations, which themselves reflect an artisan or unprofessional marketing effort:

  • In October 2010, occupancy was 10%, falling to 7% in 2011 and 2% in 2012
  • In August 2012, occupancy was 57%; the previous 2 years it was at 92%
  • Each April, the hotel is open, but barely operational.

Unique Property for Santorini

  • It is one of the few large resorts on the island, serving tour operators, small groups, conferences and weddings.
  • It is one of the few resorts with a full set of high standard amenities, including gar-dens, swimming pools, fitness center, etc.
  • It is located 150 m. from the beach, close enough to walk, but far enough to avoid the noise of the summer months.

Hotel Facilities

  • 70 rooms, 10 suites, 9 maisonette-suites
  • Reception area
  • Outdoors & Indoors Bar
  • Indoor & Outdoor Restaurants
  • 2 outdoor swimming pools
  • Open Air Jacuzzi
  • Fitness centre
  • Sauna
  • Tennis Court
  • Children’s playground
  • Baby sitting area
  • Water Sports Centre nearby
  • TV Room
  • Parking Area
  • Business Centre
  • Conference Room

The hotel has a complete offer of audiovisual equipment for conferences and events, including LCD Projector, Microphone/ Wireless Microphones (on request), Podium, Screen, Flip Chart, Plasma TV, DVD, VH, Video, light scenarios. Other equipment can be provided on request.

Rooms are fully equipped with air conditioning, in-room safe deposit boxes, flat-screen TV, satellite TV, radio, refrigerator, hair dryer, bathrobes, sleepers and other comfort amenities. All rooms with private bath and bathtub.

Further Due Diligence Requirements:

An investment should consider the following due diligence:

  • Financial Due Diligence: financial audit on corporate accounts, including review of tour operator contracts.
  • Legal Due Diligence: evidence that there are no additional debts or liens on the property; that the hotel operation is legally-registered at the Chamber of Hotels and other organisations.
  • Construction Due Diligence: that the building is in good structural condition and complies with the building code and zoning requirements.

 

 

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Agent Kostas Taralas

Kostas Taralas Owner of Greek Exclusive Properties

Kostas Taralas  is the owner and founder of  Greek Exclusive Properties,  Luxury Homes & Villas in Greece  Specialist.
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