Very Successful Hotel In Beautiful Unesco Luang Prabang For Sale

Business description

Lotus Villa is a very popular boutique hotel in the beautiful Unesco town of LuangPrabang in Laos.
LuangPrabang, itself, is one of Asia’s premier tourist destinations and has been World Heritage listed since 1995. The town’s world heritage status ensures that tourism will continue to grow over the next several years and the Lao Government has recently introduced several initiatives to facilitate this growth.

Since first opening in December 2007, Lotus Villa has enjoyed stunning success.
The hotel’s four different room designs attract many new and return guests and the hotel’s location can be described as one of the very best in LuangPrabang.
The hotel has always been renowned for its excellent service and our well-trained staff are highly acclaimed by our customers.

There are several factors that make Lotus Villa an exceptional business opportunity.
The hotel has been expertly managed since opening and this is strongly reflected in the hotel’s top 8 ranking on the famous travel site, Trip Advisor.com.
The hotel is also very highly rated on Asia’s premier online booking site, Agoda.com.
Continued success on these two sites has been driven by positive customer feedback and this generates substantial business for Lotus Villa.

The hotel generates profit of $US230,000 each year and short-term expansion plans will enable profit exceeding $US280,000 each year. The new owners will also have the opportunity to open further accommodation under the successful Lotus Villa name. An additional five rooms would further increase profitability to over $US420,000 per year.

The hotel is heavily booked throughout the 7month high season and enjoys a high level of occupancy throughout the low season, generating strong cashflow in every month. Lotus Villa receives many advanced bookings, often confirmed and paid for 6 months in advance. This creates stability in income and will generate immediate revenue for the new owners.

Lotus Villa’s recently opened Orchid suites have been tremendously popular and these two rooms alone, generate combined revenue of $US400 each night. The two orchid suites occupy the upper floor of the hotels third building and the lower level of this building is ready for the construction of a further two orchid suites. Very few hotels in Luang Prabang offer family rooms and these Orchid suites have created a very strong competitive advantage for the hotel.

Lotus Villa remains one of LuangPrabang’s few mid-range hotels and this has been an important factor in the hotel’s success. This is a niche that the owners have thoroughly enjoyed and is unlikely to change in the foreseeable future as there is no longer suitable land available on the entire Unesco peninsula.

The hotel’s future success will be further enhance by increased tourism into Luang Prabang.
Several government initiatives will support tourism growth well into the future with tourism expected to grow substantially over the next several years.
The Lao government is currently expanding LuangPrabang’s international airport to accommodate a greater influx of tourism. The airport expansion will be finished in two years and this will enable a large increase in the number of direct flights from many Asian and international cities.

The Lao government is also constructing a new Super Highway adjoining LuangPrabang with the country’s capital city, Vientiane. This will further enhance travel between the two cities and further open up tourism into LuangPrabang.

The Lao government clearly supports tourism into LuangPrabang, and as such, provides a high level of support for all foreign investors, with transparent initiatives and sound business practices.

Lotus Villa is for sale for $US1.5Million.
The hotel will be sold with a land lease that does not expire until 2026 with the potential to further extend the lease until 2036. The next lease payment is not due until until 2017.
Lotus Villa’s third building is on a separate 15 year lease of which 3 ½ years have been completed. This lease is also negotiable for extension.
The new owners will be given a full 2 month handover period to ensure a smooth transition between owners. All utilities in the hotel will be included in the sale.
During the handover process, all of the details of the business will be disclosed and documented, and recommendations will be given to ensure a smooth transition. Access to our network of contacts relating to the business will also be made available and we will facilitate visa applications for the new owners.
All enquiries can be sent via the contact seller form below.

Property information

Real Estate:

Real Property Included

Location:

Lotus Villa is in a beautiful,quiet street in the heart of the UNESCO area. The hotel is a 5 minute walk to the main shopping centre and just 1 minute from the Mekong and Nam Khan rivers. The hotel is in the same street as Luang Prabang's famous Wat Xieng Thong (2 minutes walk)

Premises details:

Lotus Villa comprises of three buildings and a courtyard. The front building is French-Lao style and contains a reception area, 4 lotus rooms and 3 waterlilly rooms. The second building, also French-Lao design, contains the hotel's eight frangiapani rooms. The third building comprises of the two Orchid suites upstairs and and office, kitchen and laundry downstairs

Size in square feet:

5,000

Business Operation

Expansion potential:

Two new Orchid suites are ready for building downstairs in the 3rd building.
Nearby residences can be leased and converted into further Lotus Villa accommodation

Competition / Market:

Lotus villa has relatively little competition as most new hotels are in a different (more expensive) price bracket. The hotel is the only mid priced hotel on the peninsula area.

Reasons for selling:

The owner has been heavily involved with the local orphanage and other projects with the poorer Lao people and has decided to invest all his time into these projects

Employees:

12

Years established:

4 .5

Other information

Support & training:

A full 2-3 month handover period will be offered to the new owners and all staff will be incentivised to remain in the hotel's employ

Furniture / Fixtures value:

$30,000 (included in the asking price)

Inventory / Stock value:

$20,000 (included in the asking price)

Website:

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