The project Hôtel 4* Théoule sur mer by Bricks

Review of the project Hôtel 4* Théoule sur mer by Bricks

Review's score :

Score details

To assign the grades A and E, we use a Bonus/Malus system.
⚠️ Some criteria may be missing in the detailed list below.
⚠️ The scoring model is not suitable for all types of projects.
The total points for this project is 24

Criteria	Points
mortgage coverage	🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩
optimistic scenario margin	∅
pre-commercialization	∅
track record	🟩🟩
location	∅
in the vicinity	🟩
yield	🟩
LTA	🟩
LTS	🟩
operator commitment	∅
sales price	🟩
permanent loss	∅
late projects	∅
price trend	🟩
urban planning risk	🟩
debt to equity	∅
debt to asset	∅

This review is proposed by Jordan R on 28/08/2024

⏰ The project starts on 30/08/2024 12h30
💰 The estimated rate of return is 11% per year.
⏱ The duration of the project is 24m
💼 Minimum amount to invest is 10€

🤖 Review's summary

Project Analysis: 4* Hotel in Théoule-sur-Mer by Bricks, reviewed by Jordan R

Analyzed project date: August 30, 2024, 12:30:00

Overview

This project involves the elevation of a well-located hotel in Théoule-sur-Mer. It offers excellent guarantees such as a first-rank mortgage on the asset, interest escrow for the first 18 months, personal and joint guarantee, and pledge of SCI shares. The location is exceptional, just 100m from the beach with no other hotels in the vicinity.

Points to Consider

However, there are significant construction costs and a need for funding in 3 tranches totaling 3.7 million euros.

Project Details

The aim is to add three additional floors of 282.5m² each to the existing hotel and convert it into a 4-star tourist residence with 20 to 24 apartments/rooms. The investment is structured in three distinct tranches for various purposes.

Positives

High return of 11%
Above-average return compared to past projects at Bricks
Diverse guarantees including first-rank mortgage, pledge of SCI shares, joint guarantee, and interest escrow
Very high mortgage coverage of 267%
Good property value with a current appraisal of 4.4M€
Proximity to amenities, schools, restaurants, and the beach
Realistic selling price of 7,036€/m²
Property prices increasing by 3.7% annually
Good state of the property and neighborhood

Concerns and Risks

No pre-commercialization
Lack of information on operator health
Low margin in optimistic scenarios
Operator commitment is weak

Personal Opinion

This project shows great potential with its fantastic location and strong guarantees. While there are some risks to consider, the overall positives outweigh the concerns. With the right execution, this hotel elevation project could be a lucrative investment opportunity. So, grab your sunhat and let's ride the wave of this seaside venture with a touch of luxury!

Historial rates of return Bricks

Investor votes results for the project: Hôtel 4* Théoule sur mer

54 voters
👎33% 👍22% 🤷20% 🏳️24%
To vote :

Jordan R
Jordan, 35 years old, electronics engineer by training. I currently live from my passions as a ski instructor and canyon guide. Investor in the stock market (stock/ETF), physical real estate and more recently in real estate crowdfunding since 2020. I mainly invest on the platforms: ClubFunding, Lapremierbrique and Upstone. My crowdfunding portfolio is over 100k