Nov 27 2015
Metrospaces, Inc. announces that it will re-launch its Chacabuco 1353 residential project in Buenos Aires as Telmo & Tango Apart-Hotel. Additionally, the project's apart-hotel units will be sold as fractional ownership.
Mr. Daniel Silva, CEO of Metrospaces, stated: "This re-launching will give us the opportunity to sell the project's units under a fractional ownership scheme. We expect that through this structure we will obtain a price 80% above the sale price of these units if sold as residencies, and will also give us a long-term business as the hotel operator. We are especially excited about this opportunity since it launches the same week that Mr. Mauricio Macri, a center-right candidate, won the Argentinean Presidency. We expect this victory to bring more a market-friendly economic policy that will help us in the marketing of the fractional units, as well as the hotel business once it launches. We expect for Telmo & Tango Apart-Hotel to open to the public end of 1Q of 2016."
Total expected revenue for the sale of the fractional units is expected to be at approximately $3M in the next 2 years, with a 25% EBITDA margin for Metrospaces, and we will begin sales immediately. Additionally, once stabilized we expect the hotel operation to generate approximately $500K in revenue with a 30% EBITDA margin. We expect that this being MSPC's first executed project, it will open up many doors for us in Buenos Aires, just in a period where we expect high investment levels into the country, as well as increased tourism.
Source: http://www.metrospaces.net/