Property of the Month, Velez Malaga
Ref ZTM3472
AN OPPORTUNITY TO PARTICIPATE IN AN EXCITING NEW BUSINESS.
PALACIO BLANCO THE BOUTIQUE HOTEL OF THE AXARQUIA HAS BEEN THE SUBJECT OF MUCH CAREFUL AND SYMPATHETIC RESTORATION. AFTER A YEAR OF PROFITABLE TRADING THE OWNERS ARE NOW ACTIVELY SEEKING BUSINESS PARTNERS INTERESTED IN FINANCIAL COLLABORATION TO FULFIL THEIR EXCITING PLANS FOR EXPANSION.
BACKGROUND
In less than a year the hotel as established itself as the small boutique hotel of the Axarquia a
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region to the east of Malaga. After only a year of trading, the hotel can already make some impressive claims to fame. According to users of www.tripadvisor.com the hotel is now rated as the 2nd best hotel on the Costa Del Sol, the 5th best in Andalucia and the 6th best in Spain and acclaimed as “ One of the finest townhouses in the historic old quarter of Velez Malaga” the capital town of the Axarquia.
The property is just a short tram journey to the outstanding beaches of the eastern Costa del Sol, the yacht marina at Caleta de Velez, an established 18 hole golf course and just a 20 minute drive to the rugged pine clad coastline of the Costa Tropical.
The hotel has 8 en-suite guest rooms. All rooms are designed in a simple classic design combined with a chic, contemporary influence and a sensual touch. The rooms are set around a cool and tranquil courtyard where guests take breakfast, relax or just chill out after a day's sightseeing. The sound of the trickling fountain and open roof create an atmosphere of a bygone era. The hotel has a rooftop exercise swim-spa pool, and a fantastic sunbathing terrace with stunning views of the town, to the castle and the mountains beyond.
In addition to guest accommodation there is also a 3 bedroom house with garden. The constructed area is a little over 700m2 on a plot of 336m2.
STRATEGY FOR GROWTH
The owners - British architect and designer, husband and wife team are looking for enthusiastic partners, financial partners or franchisors to expand the brand and create exclusive boutique hotels in Spain and other European countries. Alternatively this represents a fantastic opportunity for someone with the right stuff wishing to make a lifestyle change. There is huge potential in the building and the business to create a bigger, more profitable and more diverse operation.
The owners strategy for growth include a public restaurant, the restaurant could be created for external rental, distinct from the hotel, this could provide residual value in terms of rental return. The private house has been designed in such a way that it can easily be converted into either 4 more double en-suite rooms with night porter´s accommodation, or 3 more double en-suite rooms and a manager´s or owners flat. There is also the opportunity to convert the 1st floor laundry area and redundant stair case into another smaller bedroom. There are also plans to convert the huge downstairs store area into a spa/treatment room.
Subject to planning permission a 3 storey extension, could easily be added creating a further 150m2 suitable for another 6 ensuite bedrooms which would enable the ground floor to be converted into a bar/restaurant with direct access off the street without entering the hotel.
Given the very obvious improvements in infrastructure and overall planned public expenditure and enhancement of the area, the property lends itself superbly to developing a more independent off the street food and beverage enterprise integral to the hotel but in addition to it’s core hospitality business. The area has seen 2 new restaurants open as well as a number of sophisticated upscale cocktail bars aimed at the wealthy female market. These recent quality developments are fast establishing the area as one of the most chic with a very focused emphasis on quality.
An example of this is the transformation of the convent {in the same area} being converted into a Parador Hotel as well as a 3M euro fund earmarked for the conversion of a nearby building into a Contemporary Arts Gallery. An additional point worthy of mention is that the Spanish Government are giving up to 60% grants for tourism related investment.
HIGH PROFILE
In terms of global PR the hotel hit the ground running through the TV filming of it’s build through to launch, the programme continues to be shown in the UK, repeated every 3 months or so, and has now been shown in Italy, France, Netherlands, Belgium, Poland, Switzerland, Australia, Canada. There is a strong probability that Channel 5 want to film future expansions thus creating fantastic advertising possibilities worldwide. A London based PR company is assigned to the business to ensure it’s inclusion in the most appropriate worldwide hotel guides like Alistair Sawday´s Special Places to Stay and the respected NoTodoHoteles.com specialist website as well as a host of on line travel / hotel booking sites. It’s own web site enjoys a strong presence on Google and is highly ranked under the search term “ Boutique Hotel Malaga”.
NEXT STEPS
Additional trading figures, profit and loss analyses and business projections including, real estate, sales, marketing and financial strategy are available. Whilst their preference is to develop the brand, under the right circumstances the owners would also consider an outright purchase.
For more information, in the first instance please contact :
Geoff Cheshire, Managing Director, at Team Espana, C/ Carmen 4, Nerja, 29870, Malaga, Spain.
Tel : ( office ) 00 34 952 527300 ( mobile) 00 34 696 754 724
e-mail : Geoff@teamespana.com
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