The business plan for luxury villas may seem like a document whose time has passed, but nothing could be further from the truth. As the economy stabilizes, developers and investors are turning back toward broad-sweeping projects that capitalize on the eternal maxim, “they're not making any more beachfront property.†Land is a truly finite commodity, and resorts and luxury villas are going to be a hot topic again as the global recovery surges forward and people look once again at ways to make money in real estate. But what does your luxury villas plan need to accomplish? Start here:
• How many units will you have?
• What occupancy rate do you envision for year one?
• What are the costs for different layouts?
• How much capital will you need up front for construction?
• Have the key parties (especially the developer) been identified?
You should also make a case for the strength of your brand and highlight whatever competitive differentiators you might have. Do you have the backing of a major hotel chain? Are you a lifelong industry insider with the ability to deliver a special breed of villa? If you have designs or blueprints feel free to share them; also, don't shirk on the market data, as the locale in which the villas will be built foretells your likelihood of selling out the construction. What draws tourists to the region? What are the forecasts for growth? How stable is the local economy now? Get all the research you can and use it to inform the financial pro forma, which needs to show 5 years. Want help with the business plan model or the data digging? MasterPlans has written plans for resort villas many times before and can help you get your plan together. Call for a free consultation: 877-453-2011.
