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

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 $250/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.
  • Get 5% discount when buying multiple shares.
  • Get 10% discount when paying 1 single payment instead of 24 monthly payments, regardless of number of shares.
  • We believe in protecting the investments of each one of our clients, no matter the size of their investment. So we guarantee your monthly income starting January 1, 2021.
  • 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!

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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.

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There are four types of rooms at River Park Hotel:

  • Standard Room 
  • Double Room 
  • Premium Room
  • Family Room 

Get to know every room type and start chatting with an Investment Advisor by submitting a form on the River Park Hotel Page here:

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Standard Rooms at River Park start at $60,000 with 10% discount for full payment. 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 an entire Standard Room at River Park Hotel, you have several options:

Get 10% discount and pay $54,000 to buy an entire Standard Room (10 shares) with one full payment.

Take advantage of our financing option, and get 5% discount for buying multiple shares. You can distribute the total amount over 24 months. For example, pay $2,357 per month for 24 months. Or contact one of our Investment Advisors to create a 24 month schedule that suits you best.

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. 

Get 5% discount when buying more than one share, or get 10% discount when making one full payment.

Here's the actual price breakdown per number of shares:

Number of shares

Get 10% discount with one full payment.

Get 5% discount when buying more than 1 shares.

1 Share

$5,400 with one payment.

$250 per month for 24 months

2 Shares

$10,800 with one payment.

$475 per month for 24 months

3 Shares

$16,200 with one payment.

$713 per month for 24 months

4 Shares

$21,600 with one payment.

$950 per month for 24 months

5 Shares

$27,000 with one payment.

$1,188 per month for 24 months

6 Shares

$32,400 with one payment.

$1,425 per month for 24 month

7 Shares

$37,800 with one payment.

$1,663 per month for 24 months

8 Shares

$43,200 with one payment.

$1,900 per month for 24 months

9 Shares

$48,600 with one payment.

$2,138 per month for 24 months

10 Shares

$54,000 with one payment.

$2,375 per month for 24 months

 

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

Over the past 9 years our investors have received an average of 13.6% NET return on investment every year through booking income, plus the market value of their rooms have increased an average of 11.5% per year.

Based on our experience we’re projecting that a Standard Room at River Park Hotel, will generate $9,295 net income per year, to produce a 17.21% yearly return on your investment of $54,000.

NOTE: Projections are based on our actual performance over the past 9 years and are not a guarantee of future results.

 

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

 Month Occupancy Rate Days TOTAL REVNUE
JANUARY 93% $66 29 $1,903
FEBRUARY 88% $51 27 $1,379
MARCH 83% $57 26 $1,475
APRIL 98% $70 30 $2,131
MAY 33% $58 10 $597
JUNE 79% $78 24 $1,909
JULY 90% $108 28 $3,005
AUGUST 97% $137 30 $4,133
SEPTEMBER 95% $114 29 $3,356
OCTOBER 94% $83 29 $2,409
NOVEMBER 93% $62 29 $1,796
DECEMBER 80% $69 25 $1,708
FULL YEAR 85.25% $79.44 317 $25,801

 

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

Month VAT Booking Channels GROSS INCOME Management Taxes NET INCOME
JANUARY $290 $173 $1,440 $720 $34 $685
FEBRUARY $210 $125 $1,044 $522 $25 $497
MARCH $225 $134 $1,116 $558 $27 $531
APRIL $325 $194 $1,612 $806 $38 $768
MAY $91 $54 $452 $226 $11 $215
JUNE $291 $174 $1,444 $722 $34 $688
JULY $458 $273 $2,273 $1,137 $54 $1,083
AUGUST $630 $376 $3,127 $1,563 $74 $1,489
SEPTEMBER $512 $305 $2,539 $1,270 $60 $1,209
OCTOBER $367 $219 $1,822 $911 $43 $868
NOVEMBER $274 $163 $1,359 $679 $32 $647
DECEMBER $261 $155 $1,292 $646 $31 $615
FULL YEAR $3,936 $2,346 $19,520 $9,760 $465 $9,295

 

Click below to contact your personal Investment Advisor today and request ROI projections for other hotels, or room types!

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