PLAYA HEAVEN HOSTEL

Description


$12,000,000 MXN

HOA: n/a

5 Stories

12 Bedrooms

11.0 Bathrooms

Basics


Electricity: Utility

City Water: Yes

Water Well: Yes

Sewer: Yes

Air ConditioningYes

Cistern: Yes

Roof Water Tank: Yes

Roof Tank: No

Hot Water: Yes

Floor Type: No

According to Chat GTP there are more than 40 million digital nomads traveling the world, searching for
affordable quality coworking spaces. Mexico has become a hotspot for digital nomads, and the trend
has been increasing steadily the past years. The concept is simple, digital nomads pay a small fee for the
coworking space, and are given free accommodation. They also enjoy the fastest internet (1000 Mbs.) in
town, a lush rooftop garden which seats and tables for 80 people, in addition to a pool/sundeck and a snackbar
with full-fledged kitchen service.

This 5 level coworking building is a real cash machine property, and is conveniently located in an up and
coming area, next to Avenida Benito Juarez, one of the biggest avenues in all of Playa Del Carmen. The area
boosts numerous new building projects, and properties in this area are set for a significant value increase
in the coming years.

  • Size of construction: 574 square meters.
  • Lot size: 134 square meters.
  • Building levels: 3 levels containing bedrooms and bathrooms, and 2 upper rooftop levels.
  • Dorm rooms: 12 rooms averaging 10 bunk beds each.
  • Air conditioners: 12 units powered by free solar energy 24/7.
  • Toilets & Showers: 11 toilets and 10 shower units with free electric heaters.
  • Reception area: Here you will find a common area with a kitchen and a reception desk.
  • Bunk beds: 120 beds with memory foam mattresses, privacy curtain, locker, power outlet & reading light.
  • Solar panels: 26 panels powering the entire building, so electricity bill = ZERO.
  • Water well: Private 18 Meters deep well with unlimited free supply of water, forever!
  • Water Filters: Industrial grade water filters makes sure the entire building has clean fresh water.
  • Rooftop: Lush rooftop garden with sundeck, tables and 80 seats with power outlets.
  • Internet: 1000 mbs. high speed internet on all levels, this is the fastest connection in town.
  • The Bar: Spacious rooftop bar with double BBQ grill, perfect for selling foods and beverages.

Property Potential:
Compared to average property investments, like condos and houses in this area, that has around 8-10%
annual returns minus management fees, and often end up yielding around 4-8% per year after expenses, Playa
Heaven Coworking is in a completely different league, where all the extra services cash flow even more than
the Coworking space and the accommodation put together. With the right management, this property you can
expect an annual return around 34% after expenses.

Estimated Returns Coworking Space With Free Accomodation:
The average coworking space in Playa Del Carmen charges around 15 USD. for a day pass. So at a low
estimated 10 USD. per day, with only 40% occupancy, Playa Heaven Coworking will easily generate 480
USD per day, 14,400 USD per month, total 172,800 USD per year, just on renting coworking space
alone.

Estimated Returns On The Rooftop Bar:
The rooftop is perfect for socializing, events, parties, seminars etc. And will be an automatic income
where coworkers will be able to eat, drink and meet fellow coworkers. A low estimate of average guest
spend in the bar is set at 14 usd per day, and with only 40% occupancy, the rooftop generate 672 USD
per day, 20,160 USD per month, and total 241,920 USD per year.

Estimated Returns Services:
In addition to the coworking space, the accomodation and the rooftop bar revenue, Playa Heaven
Coworking can also offer a wide range of products and services to clients, such as shampoo, tooth paste,
bus tickets, ferry tickets, office staples, virtual office services, memberships, rooftop events, parties,
scuba diving, cenote tours, bike rentals, ferry tickets, laundry service, laughing gas, coffee, foods (for the
shared outdoor kitchen), pad locks for the lockers, towel rental, currency exchange, beach trips, bar tours
etc. And these extra services, and especially the tours, have the potential to bring in more than the
coworking space, the accommodation and the rooftop bar together. So a low estimate of average guest
spend on extra services, is set to 16 usd per day. And with only 40% occupancy the income generated by
these services total 768 USD per day, 23,040 USD per month, and total 276,480 USD per year.

Total Returns:
So the coworking space with free accomodation, rooftop bar, and all the additional products and
services together, brings the annual return up to 691.200 USD. at only 40% occupancy Remember
that the average hostel in Playa Del Carmen has between 70 and 80% occupancy, so our 40%
occupancy calculation is very low and realistic. And let's also deduct 69% operational expenses from that
income, and you'll be left with 31% = 213.300 USD per year in returns. So out of the sales price
639.000 USD, we get an annual return of about 33%, which is roughly 5 times higher return you’ll have
on a traditional condo investment in Playa Del Carmen Mexico. This means that you’ll get back your
whole investment in less than 3 years, and still have a cashflow property that keeps generating income
year after year, in the most visited tourist area in all of Mexico.

Location

Front
0 Meters
Depth
0 Meters
Lot
134.00 M2
Construction Size
574.00 M2
Waterfront
No
Corner Lot
No
Latitude
20.63435376844
Longitude
-87.0933425615

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Notice

All documentation for this property has been reviewed by the Reltic Brokers team, so we guarantee that it is in order and ready to be sold.

Jacqueline Landaverde

Real State Broker

Alejandro Lopez

Real State Broker
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