El reto
2022, Villa La Angostura (Argentina)
Development of 43 tourist departments. 5850 m2
Terrenal Luxury Apartments is an apartment complex located in a strategic location between the Nahuel Huapi and Correntoso lakes, southern Argentina. In 2022 the investment group was in the construction phase and wanted to implement some use related to tourism in it.
The investment group had no experience in the hospitality sector and wanted to explore the potential of a tourism business as a complement to real estate.
THE INNOVA ROOM carried out the initial analysis and the feasibility plan. The best way to develop this business was evaluated, both the infrastructure of services and the model of operation and brand.
How We Did It
THE INNOVA ROOM has senior professionals, specialized in strategy and management of real estate assets, as well as in image and operational and business structure.
All the available information of the architectural project was collected, a survey of market information was carried out at a statistical level and a qualitative analysis referring to the attractions of the destination and the competition, always in correlation with the value proposition, the expected occupation and the average prices identified.
A) Analysis
Destination: We identify the potential of the market and the global turnover to be distributed among all those who invest in hospitality. For this, information on available inventory, occupancy, average prices, and the offer of complementary services were considered.
Connectivity: The destination in question is strongly subject to seasonality, and in the post-pandemic it benefited like other destinations with regional reach. Connectivity was key to project performance.
Regarding these factors, it was detected that the destination was working very well, driven by the post-pandemic context where there were very good occupancy and price indicators. In addition, from THE INNOVA ROOM, we believe and maintain that this trend will continue in the future, reflected by the information extracted from the market and, also by other projects that we develop in the region, in Bariloche and San Martín de Los Andes, which show the same trends.
Product: Although the product had good bases, from THE INNOVA ROOM it was proposed:
- To increase of 10.2% of saleable keys: Via the subdivision of 4 units of 3 levels, in 4 units of 1 level and another 4 in duplex. From an original development of 39 units, we arrived at 43.
- Parking: ensure one parking space for each apartment.
- Storage capacity: it was proposed to increase the space inside the units, since it is a destination aimed at families and with average weekly stays.
B) Feasibility Plan
Based on market information, the adjustments made to the project, and considering the investment planned by the investment group, the following tasks were carried out.
- In terms of market, a survey was made of the entire offer of comparable accommodation in the destination. From that general supply, competition was identified and target average prices were established based on the market.
- A first indicator of general sales was obtained, combining the average prices with the occupation of the destination. After that, distribution and operating costs (the cost of personnel, administration, marketing, etc.) were settled. ) and a projected 10-year economic result was reached.
- The need to develop a fixed point for food and beverages was questioned, especially considering the dimensions, equipment, and comfort of the units. In any case, it would be subject to the proposals of the different operators.
- A 10-year projected Income Statement (P&L) was drafted, evaluating the operation itself or through third parties.
- This plan was accepted by the investment group and, with it, was derived to two other stages: design of the model department (showroom) and advice on the selection of the brand and operator of the project.
C) Conceptualization
As a continuation of phases A and B, we accompany the client in the development of their conceptual image. For this, we have the support of the GASHU ARQUITECTOS studio.
Results
In 60 days, the investment group had all the know-how about the industry and about the best way to promote a hospitality business in that destination. He was helped to make decisions based on information and not intuitions.
Specifically, it was possible to increase by 10% the saleable keys at the real estate and operational level of the development guaranteeing that each key had a garage available for exclusive use and that some can be sold separately.
It was ensured that the project could work with the proposed services that was envisaged. Likewise, the investor was able to have in view what his expectation of return on the investment already assumed would be and, based on that, to be able to make investment decisions, especially decisions of finishing, equipment, and facilities that at the time of our intervention were not yet contracted, only projected.
Design Team: Gashu Arquitectos
Source of the images: Gashu Arquitectos
