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Buying A Share of A Hotel Room. How Does It Work?

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Force Majeure clauses in agreements used to be all but formality for years, until the 2020 global pandemic. Now that we’re rounding 9 months since WHO announced COVID-19 outbreak a pandemic, we’re all just starting to come to terms with the new normal. Over the past year, the hospitality industry was hit hard. With borders closed or restricted globally, travel decreased dramatically, causing many properties and hotel operators to come into distress.

Ruebush Hospitality Group has taken the past several months to reflect and recuperate, and what we’ve learned is that there are opportunities for growth everywhere.

We believe global tourism will begin to rebound in 2021 and by 2023 international travel will be booming again. Earlier this week, Pfizer announced a vaccine that is more than 90% effective in first analysis. They expect to be able to produce 1.3 billion doses in 2021, so the end point of the pandemic is already in sight. We’ve developed the most flexible and reliable investment system to get you ready to reap the benefits of hotel room investments even before our hotels open their doors to international travelers.

Investments tailored to your needs:

  • For as little as $275 per month you can buy a share of a luxury hotel room. Your investment is secure, and the title deed is registered in your name after you pay 100% of the share value.
  • We believe in protecting the investments of each one of our clients, no matter the size of their investment. So we guarantee you will earn a MINIMUM of 16.5% return on investment each year.
  • Our buy-back guarantee is valid on investments across the board. Besides guaranteeing monthly income. We also warrant to buy back your share for more than the original price, as long as you hold your investment for at least 3 years.
  • You get a share of the revenue of the whole hotel. We split the nightly booking income with all investors, and we take responsibility for ALL EXPENSES, even insurance, upgrades, and repairs, etc.
  • You get 3 free nights per year, PER SHARE. And additional nights at 20% discount. In ANY of Ruebush Hospitality Group hotels!

How Buying Shares in a Hotel Room Works

What is a share?

Each of our hotel rooms consist of 10 shares. We believe in making hotel room investments available to you, regardless of your budget or experience. You can choose to buy one share, several shares, or all 10 to own an entire room.

You can buy part of a room to become a co-owner and share the ownership with other investors. Your ownership % is registered at the Public Service Hall, and you become the legal owner of the percentage of the property that you purchased.

1 share = 10% ownership of a hotel room.

5 shares = 50% ownership of a hotel room.

10 shares = 100% ownership of a hotel room.

How does buying shares work?

Let's take River Park Hotel as an example:

Located in the hottest developing tourist destination in the region, right next to a beautiful river, and a few minutes’ walk from the Black Sea, this luxurious hotel is amazing. The building is designed for vacationers. There is a beach only a few minutes away, a huge indoor/outdoor pool, full size fitness center, climbing wall on the entire back of the building, miniature golf, volleyball, rooftop activities and entertainment, hiking and biking trails, sea, mountains, and plenty of fun. There are 360 rooms in this amazing property, which gives you ample opportunities to invest and earn steady monthly profits.

river-park-hotel-rooms-for-sale

There are four types of rooms at River Park Hotel:

  • Standard Rooms
  • Double Rooms
  • Premium Rooms
  • Family Rooms

Standard Rooms at River Park are guaranteed to earn you a minimum of 16.5% return on investment every year. The average size of this room type is 28.31m². Each Standard room is furnished with a King size bed, desk & minibar, Wardrobe, Sleeper sofa, and a bathroom with a shower.

To buy a Standard Room at River Park Hotel, you have a few options:

You can pay the entire price of the room in 1 full payment and start earning a guaranteed minimum of 16.5% yearly on your total investment immediately.

You can take advantage of our financing option and distribute the total amount over 24 months, and you will earn a guaranteed minimum of 16.5% yearly in proportion to the payments you have made over time.

You can also buy one or several shares of a Standard Room at River Park Hotel. We legally register the percentage of ownership rights that correspond to your number of shares. For example, if you buy 1 share, 10% of the hotel room will be registered in your name. If you buy 5 shares, 50% of the hotel room will be registered in your name, and so on.

What kind of return can you expect when investing in a Standard Room at River Park Hotel?

We have been operating hotels and vacation rental properties in Batumi since 2014. Based on our experience we are projecting that a Standard Room at River Park Hotel, will generate $14,129 net income per year, to produce a 16.82% yearly return.

NOTE: Projections are based on our actual performance over the past 9 years and are not a guarantee of future results. However, we do guarantee your minimum yearly earnings will be 16.5% per year.

Here are the estimated revenues you can expect in an average year of owning a Standard Room at River Park Hotel:

 Month Occupancy Rate Days TOTAL REVNUE
JANUARY 94% $99 29 $2,885
FEBRUARY 89% $76 27 $2,093
MARCH 85% $86 26 $2,266
APRIL 96% $105 30 $3,131
MAY 43% $88 13 $1,166
JUNE 80% $117 25 $2,900
JULY 91% $162 28 $4,558
AUGUST 97% $206 30 $6,199
SEPTEMBER 96% $171 30 $5,088
OCTOBER 94% $124 29 $3,613
NOVEMBER 93% $93 29 $2,694
DECEMBER 82% $103 25 $2,626
FULL YEAR 86.67% $119 322 $39,219

 

These are the estimated deductions, expenses and net incomes you can expect owning a Standard Room at River Park Hotel in an average year:

Month VAT Booking Channels Management Taxes NET INCOME
JANUARY $440 $262 $1,091 $52 $1,039
FEBRUARY $319 $190 $792 $38 $754
MARCH $346 $206 $857 $41 $816
APRIL $478 $285 $1,184 $56 $1,128
MAY $178 $106 $441 $21 $420
JUNE $442 $264 $1,097 $52 $1,045
JULY $695 $414 $1,724 $82 $1,642
AUGUST $946 $564 $2,345 $112 $2,233
SEPTEMBER $776 $463 $1,924 $92 $1,833
OCTOBER $551 $328 $1,367 $65 $1,302
NOVEMBER $411 $245 $1,019 $49 $971
DECEMBER $401 $239 $993 $47 $946
FULL YEAR $5,983 $3,565 $14,835 $706 $14,129