POTENTIAL RENTAL RETURN – OVERVIEW

The following details are to be viewed as a potential guide only, to what could be achieved
on the 50-50 room rate spilt with the hotel group. This coming in to affect in year three and
onwards of property ownership. Years one and two, having the rental guarantee.

* St Lucia Hotel Room Rates 2008, taken from a variety of sites on the internet

* Research has shown quality Caribbean hotels achieving around 85% annual occupancy,
Oasis Resorts consistently achieves nearer 90%
* St Lucia quality hotel room rates from the internet - £118 to £352 per night.
* Rates will differ due to time of year, the room, location and amenities available.

Example 1.
Room rate based on £150.00 per night
Studio Purchased at £105,000. *Finance based on £115,000

£150.00 x365 days = £54,750 pa.

(85% Occupancy Rate)£46,665 pa.
Worst case scenario 60% occupancy £32,760
Divide this 50-50 with Hotel would be £16,380

*Probable Interest Only Finance at 7% £ 8,050
Income per year after paying mortgage £ 8,330 (less any management fees expected to be £100 p.m)
Annual nights needed to cover mortgage repayments & M.F- £9,250 divide by £150 = 124 nights with 50-50 split

*Worst Case - Interest Only Finance at 8.5% £ 9,775
Income per year after paying mortgage £ 6,605 (less M.F)
Annual nights needed to cover mortgage repayments & M.F- £10,125 divide by £150 = 147 nights with 50-50 split

Example 2.
One Bedroom Villa using the Cap Masion Resort Price of £307 to £432 per night
Room rate based on £307.00
Property Price £205,000. *Finance based on £225, 500

£307.00 x 365 days = £112,055
(85% Occupancy Rate) £95,246
Worst case scenario 60% occupancy £67,233
Divide this 50 – 50 with Hotel would be £ 33,616

*Probable Interest Only Finance at 7% £ 15,785
Income per year after paying mortgage £ 17831 (less M.F £2400 pa)
Annual nights needed to cover mortgage repayments & M.F - £18,185 divide by £307 = 119 nights with 50-50 split

*Worst Case - Interest Only Finance at 8.5% £ 19,125
Income per year after paying mortgage £ 14,491 (Less M.F)
Annual nights needed to cover mortgage repayments & MF - £21,525 divide by £307 = 140 nights with 50-50 split

* 35% Annual Occupancy Could Cover Mortgage Repayment & M.F. 365 Days per year x 35% = 128 days

* Theses details are to be viewed strictly as a guide only with no contractual value.
* The information is to assist clients mid to long term investment appraisal.