Metrospaces, Inc.(OTCPINK:MSPC) Announces Acquisition Of Lake-Front Lot To Build A 45-Room Luxury Boutique Hotel For $500,000 In Long-term Preferred Stock.
Rochester, NY -- (ReleaseWire) -- 02/19/2016 --Investor News Source Featured Company: Metrospaces, Inc. (OTCPINK:MSPC) announces acquisition of lake-front lot to build a 45-room luxury boutique hotel for $500,000 in long-term preferred stock.
Mr. Oscar Brito, Company CFO, stated: "With this acquisition, Metrospaces continues in its plan to acquire and develop world-class hotels in some of Latin America's most prestigious tourist sites. Lake Correntoso is located in Villa la Angostura, in the heart of the Argentinean Patagonia, thus giving us a hotel location is one of the hottest growing and breathtaking luxury destinations in the world, the Argentinean Patagonia. The plan is to develop a 45-room luxury boutique hotel. We expect to start architecture planning immediately, and look to obtain full planning approval within 10 months, at which time we will begin construction and development. This acquisition is being paid with non-recourse, long-term preferred stock, so it will be added to the company's net assets, thus creating additional shareholder value for our shareholders."
Metrospaces (OTCPINK:MSPC) is a New York-based real estate private equity firm focusing on luxury boutique hotel development and operation. The company operates in emerging markets, primarily Latin America, were senior management see amazing opportunities in this industry. Majority shareholders have been directly involved in over $450M worth of real estate projects. The most notable ones was the Bulgari London Hotel, were majority shareholders were the initial founding partners and developers and the Ikal del Mar now Viceroy Mayan Riviera. The company uses a mix of very low debt, own capital and presales of its units to finance the projects. This gives structure for deals that generate very high returns with very low risk.
Projects in Execution:
*Telmo & Tango Apart-Hotel: Originally launched as Chacabuco 1353 Residencies, this 26-unit apart-hotel project has been re-launched as Telmo & Tango Apart-Hotel. This new business plan allows Metrospaces to sell the units under a fractional sales strategy, expected to generate approximately 2X the original residency sales price. Additionally, the company will retain the hotel management business once the project has been completed. Expected revenue on the sale of the fractional sales strategy is approximately $3 million with a 25% EBITDA margin, and will generate approximately $550K in revenue and 25% EBITDA margin annually on the hotel management business.
*Ikal Wine and Lodge: Located in Mendoza, Argentina, Ikal Wine and Lodge is a 75-hectare wine producing land, with an approved planning to build a 28-room luxury boutique hotel, a world-class winery and 29 high-end villas to be sold in fractional ownership. Total turnover after sale of hotel and winery is expected to come in at over $100M with a 50% EBITDA margin. Construction is expected to begin 1Q of 2016. For more information: https://db.tt/A67AOmfj
*Hotel Santo Cristo de Pariaguan: Metrospaces owns a 1/3 equity interest in this 122 room, 4-star executive hotel, located in Pariaguan, Venezuela. Pariaguan is a city in the heart of the Orinoco Oil Basin, recently certified as the area with the most crude oil reserves in the world. This hotel will be one of the very few quality hotels in the area. This entire area is completely underserved with hotel offering. The hotel is in final stages of planning approval and construction is expected to begin 2Q of 2016. Once stabilized, the hotel is expected to generate approximately $2.8M in annual revenue, with a 38% EBITDA margin. Financing is expected to come from local commercial banks.
For more information: https://db.tt/PcJe9XIK
*Tulasi Hotel and Spa: This is a high-end luxury boutique hotel located in the Coche Island, Venezuela. Coche Island enjoys one of the highest occupancy rates in the Caribbean, boasting a 75% occupancy rate. The company owns a 60% interest in this project and consists of 34 rooms. The project will be an ultra-luxury hotel with spa and concierge services. Construction is expected to begin 1Q of 2016. Financing is expected to come from local commercial banks, and the Company has introduced several loan requests for commercial constructions loans. Once stabilized, the project is expected to generate approximately $1.5M in annual revenue with a 35% EBITDA margin.
For more information: https://db.tt/Ej7UjZV1
*El Naranjo Yunga Estates: Located in Salta Province, about 30 Km. away from the city of Rosario de la Frontera this project consists of approximately 7,400 hectares which will be sold as32 large estates of 112 acres each. It is located just were the amazon jungles ends, creating a breathtaking forest experience. The project will have 32 estates, with an 8-room luxury boutique hotel in the heart of the property to service the estates with luxury services such as spa, glamping, bird watching and many others. Total expected revenue in 7 years is approximately $18 million with a 45% EBITDA margin.
For more information: https://db.tt/jLu5ELre
*Quality of Life Boutique Hotel: The Company has executed and paid for an option to acquire a 22-rooom luxury boutique hotel in Morrocoy, Venezuela. The acquisition is for Bs.300 million which at the official exchange rate, represents approximately $1.5M. Currently, the hotel does about $300,000 in revenue with a 25% EBITDA margin. With our repositioning plan having been executed, we expect to bring it to about $700,000 in revenue with a 35% EBITDA. Financing is expected to come from Banco Bicentenary and to close within 120 days.
For pictures: https://db.tt/UVUyF3QN
Projects in Consideration:
* Vineyard in Bergerac, France: The Company is currently analyzing the acquisition of a 16-room luxury hotel and restaurant in Bergerac, France. This beautiful project is set in a 70 hectare producing vineyard. The plan is to acquire and refocus the project towards wine tourism. It will also develop 18 luxury villas that will be sold under fractional ownership.
*Growth by Acquisition: The Company is very actively looking to grow by acquisition of currently operating profitable hotels. The company has identified at least 4-5 luxury boutique hotels that can be rolled up into the company's hotel operation. This would increase EBITDA considerably by combining operations, administration and marketing.
*Company Operates in Very High-Growth Markets and Industries: Over the last 10 years, economic growth has been at twice the rate in Latin America than in mature markets. This has created an enormous demand in high-end real estate in trophy neighborhoods. The Company only develops in trophy neighborhoods in the cities it operates in.
*Management's Interests are lined up With Shareholders: The Company's Management team is a strong shareholder in the company. Salaries and monthly expenses are very low in comparison to industry standards. Management's incentives consist of execution bonus and restricted shares in the company.
*Emerging Stage Company: Even though the company has full funding for current projects, it is still an emerging stage company that can provide very high risk-adjusted returns for investors. Lots of shareholder value can be realized over the mid and long term. Latin America is still in developing stage as far as residential and hotel projects are concerned.
2016: $250.000, 2017: $2.550.000, 2018: $21.404.289, 2019: $67.337.156, 2020: $68.703.156
2016: $(9.467.500) , 2017: $(8.967.500), 2018: $8.402.332, 2019: $44.585.831 2020: $45.848.831
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