Tortuga Beach Resort & Spa, one of Cape Verde's leading residential developments, Sal Island
Potential Rental Returns
Click here to see what the money expert web site 'ThisisMoney.co.uk' says about investing in Cape Verde
These figures are projections based upon independent market research carried out in early 2008. The room-rate projection is based upon current prices quoted by existing hotel operators on Sal Island or conservative estimates. The occupancy rate is taken from the global average occupancy rates from a number of leading hotel operators (68%), despite the fact the ‘on island’ hotel average (on Sal Island) is approximately 80% and the only 5-Star hotel in operation today was occupied at more than 90% in 2007. Precise details of the rental scheme will become available after the appointment of the hotel operator, although all figures below are based on conservative projections.
Click on the links below to see generic examples of potential rental returns:
Two Bedroom Apartment
Three Bedroom Villa
Four Bedroom Villa
Two-Bed : Approx €170,000
| Daily room rate | €150 |
| Occupancy rate | 68% (248 days) |
| Gross annual income | €37,200 |
Annual Expenses
| 50/50 split with operator | €18,600 |
| Community fees | €1,040 (based on €20 pw) |
| Water/Electrical | €780 (based on €15 pw) |
| Annual Property Tax | €1,237 |
| (3% of 25% of attributed value) |
| Total Outgoings | €21,657 |
| Gross Profit | €15,543 |
| Projected yield (%) | 9.1% |
Three-Bed Villa : Approx €439,950
| Daily room rate | €320 |
| Occupancy rate | 68% (248 days) |
| Gross annual income | €79,360 |
Annual Expenses
| 50/50 split with operator | €39,680 |
| Community fees | €1,040 (based on €20 pw) |
| Water/Electrical | €1,560 (based on €30 pw) |
| Annual Property Tax | €2,474 |
| (3% of 25% of attributed value) |
| Total Outgoings | €44,754 |
| Gross Profit | €34,606 |
| Projected yield (%) | 7.9% |
Four-Bed Villa : Approx €600,000
| Daily room rate | €450 |
| Occupancy rate | 68% (248 days) |
| Gross annual income | €111,600 |
Annual Expenses
| 50/50 split with operator | €55,800 |
| Community fees | €1,560 (based on €30 pw) |
| Water/Electrical | €2,080 (based on €40 pw) |
| Annual Property Tax | €4,875 |
| (3% of 25% of attributed value) |
| Total Outgoings | €64,315 |
| Gross Profit | €47,285 |
| Projected yield (%) | 7.9% |
