Operating Case — Financial Summary
This is what the property earns once reopened — the buyer's operating case. The model is built bottom-up from the property's real expense records, with a complete standard hotel cost set (rooms; food & beverage; sales & marketing; administrative & general; property maintenance; energy; payment processing; taxes & licenses; professional fees; training; insurance).
The timeline is relative to closing. Year 0 is the restoration period — the seller's ~$270k of works inside the price, during which the property carries only minimum upkeep (~$4,600/month) plus a ~$50k relaunch marketing budget, funded from the buyer's working capital, to enable the Year 1 opening. Operations begin in Year 1 at 10% occupancy and ramp to a stabilized 55% by Year 5. (The downloadable model runs on calendar labels 2026–2033; read them as Year 0–7 from the closing date. The table below shows Years 0–5.)
P&L summary (USD, management estimate; years from closing)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 (stab.) | |
|---|---|---|---|---|---|---|
| Occupancy | 0% | 10% | 25% | 40% | 50% | 55% |
| Revenue | – | $0.99M | $2.20M | $3.44M | $4.29M | $4.74M |
| Cost-to-serve | $0.07M | $1.12M | $1.67M | $2.21M | $2.58M | $2.78M |
| EBITDA | ($0.07M) | ($0.13M) | $0.54M | $1.22M | $1.70M | $1.97M |
| EBITDA margin | – | – | 24% | 36% | 40% | 41.5% |
| Net income | ($0.25M) | ($0.35M) | $0.26M | $0.88M | $1.33M | $1.58M |
Year 0 excludes the ~$270k restoration, which is the seller's cost inside the price. Figures trace to the downloadable operating model (sale edition).
What the numbers say
The restoration year and the launch year are loss-making by design; the property is profitable from the second operating year and compounds from there. The stabilized EBITDA margin of ~41.5% is above the global benchmark of 25–32% for comparable properties, driven by premium villa pricing and low Peruvian labor costs. The model carries a ~$100,000 climate contingency reserve, treats the wooden buildings on a conservative 15-year life, and budgets major maintenance of about $91,000 every two years. In a downside case (occupancy −30%, rates −15%, costs +15%) the stabilized margin is still positive at ~23%; the model also runs a full closed-year (business-interruption) stress, cushioned by the reserve and insurance.
What this means against the price. Stabilized EBITDA of ~$1.97M on a purchase price of $2.7M (structure A) is the buyer's return case; the seller does not charge for it. Valuation lenses on the reopened property are in Price Rationale.
⬇ Download the operating model (XLSX) · Forward-looking figures are management estimates. Confidential.