Ltd “Victory Park” began its hostel business 3 years ago by launching its first project in Riga, Latvia that is offering 100 beds in the city district of Agenskalns. The company is experienced in developing a product that meets clients’ needs. The average occupancy in the hostel was more than 75% all throughout the previous years thanks to professional operations, use of different booking channels and long-term agreements with partners. Hotel and hostel beds in Riga are in high demand and it is growing with each season. The tourism rate in Latvia increased by 8.2% in 2018. A further increase of 1.3% has occurred over the first trimester of 2019.
Ltd “Victory Park” has concluded a 10-year lease agreement for a 5-floor building with a basement in the Riga Old Town. It has a total of 1643 m2 and is located on Mazā pils Street 13. The agreement is supposed to be prolonged for 5 more years after reconstruction is complete and the hotel is open to visitors.
The building is located on the corner of M.Pils Street and M.Miesnieku Street, a very quiet district of the Old Riga. Nevertheless, guests may benefit from the Dome square, The Art Museum RIGA BOURSE, and Riga Castle being located within 2-minute walking distance. The hotel building is located right next to the famous 3 Brothers building and the Latvian Parliament. Additionally, the district includes several historical churches.
The architectural and design project involves splitting the building into the following premises:
Description of standard rooms:
Description of Lux rooms:
The following development stages have been already accomplished:
An amount of 250,000 EUR for time period of 12 months is needed to finish the hotel furnishing, including purchase of furniture and necessary equipment and fully open by August 1st, 2019 in order to be able to work during the second part of active tourist season, when all Riga hotels and hostels are at noticeably high demand.
Besides the income from guest accommodation there will be additional income sources such as:
Ltd “Victory Park” has concluded cooperation agreements with tourist companies from Ukraine, Russia and Lithuania. It is planned that the hotel will become fully operational by the 1st of August, 2019.
Envestio participant’s investment - EUR 1 000.00
Total expected return: EUR 1 190.56Invest in this project
|Project start date||29.05.2019|
|Borrower||Victory Park Ltd. (Latvia), Reg. Nr. 40103997723|
|Funding Target||€ 250 000|
|Loan Purpose||Finalizing of hotel/hostel furnishing, including purchase of furniture and necessary equipment|
|Loan Period||12 months|
|Interest Rate||19% per annum|
|Repayment of Loan Principal||In full at the end of the Loan Period|
|Investment principal buyback available||Yes, 5% penalty rate|
|Payment of Interest Payments||Monthly, on a specific date|
|Financing type||Secured debt|
|Guarantee from the Project’s owner||Personal guarantee + mixed type commercial pledge in favor of Envestio Collateral Agent|
Investment buyback is guaranteed!
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