PLAYA HEAVEN HOSTEL

Mexico has become a hotspot for digital nomads, and the trendhas been increasing steadily the past years. The concept is simple, digital nomads pay a small fee for thecoworking space, and are given free accommodation. They also enjoy the fastest internet (1000 Mbs.) intown, a lush rooftop garden which seats and tables for 80 people, in addition to a pool/sundeck and a snackbarwith full-fledged kitchen service.

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

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, PlayaHeaven Coworking is in a completely different league, where all the extra services cash flow even more thanthe Coworking space and the accommodation put together. With the right management, this property you canexpect 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 lowestimated 10 USD. per day, with only 40% occupancy, Playa Heaven Coworking will easily generate 480USD per day, 14,400 USD per month, total 172,800 USD per year, just on renting coworking spacealone.

Estimated Returns On The Rooftop Bar:The rooftop is perfect for socializing, events, parties, seminars etc. And will be an automatic incomewhere coworkers will be able to eat, drink and meet fellow coworkers. A low estimate of average guestspend in the bar is set at 14 usd per day, and with only 40% occupancy, the rooftop generate 672 USDper 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 HeavenCoworking 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 theshared outdoor kitchen), pad locks for the lockers, towel rental, currency exchange, beach trips, bar toursetc. And these extra services, and especially the tours, have the potential to bring in more than thecoworking space, the accommodation and the rooftop bar together. So a low estimate of average guestspend on extra services, is set to 16 usd per day. And with only 40% occupancy the income generated bythese 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 andservices together, brings the annual return up to 691.200 USD. at only 40% occupancy Rememberthat 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 thatincome, and you'll be left with 31% = 213.300 USD per year in returns. So out of the sales price639.000 USD, we get an annual return of about 33%, which is roughly 5 times higher return you’ll haveon a traditional condo investment in Playa Del Carmen Mexico. This means that you’ll get back yourwhole investment in less than 3 years, and still have a cashflow property that keeps generating incomeyear after year, in the most visited tourist area in all of Mexico.