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The Cube
How is
the Return on Investment Calculated?
The room revenue
from all of the apartments within The Cube will be pooled to achieve
the Gross Revenue. From this ALL OF THE COSTS associated with
the management, maintenance and running of the building are deducted
leaving the Net Operating Profit.
The Net Operating
Profit is then split 50% to the hotel management company and 50%
to you the owners. The return on investment owners receive will
be proportionate to the level of your investment against the total
investment value of all of the apartments within the building.
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For
Example:
Percentage
ownership of the building exactly equals the percentage
share of the profits.
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Facts Supporting
High Levels of ROI at The Cube
• BMG
Middle East will appoint a hotel operator / management group with
proven experience in the 5 Star sector that will maximize occupancy
through its brand name, reservation system and the necessary advertising
and marketing.
• The
objective for all parties involved in the management and running
of The Cube is to maximize revenue at all times.
• Dubai’s
hotels for the last 4yrs have consistently earned on average more
per room than any other hotel worldwide.
• The
Cube occupies the very best location in Dubai Sports City in the
very heart of the sporting action and overlooking the lake.
• The
Cube will be finished and furnished to the highest possible standards,
delivering both 5 Star quality and luxury.
• The
architecture & design of The Cube is tailored towards high
profile guests such as the sports personalities, athletes, sporting
associations and sports celebrities; clientele that can support
high end prices.
• According
to our investment model, the revenue stream has been underestimated
using very conservative market figures and the associated costs
have been inflated – even assuming these parameters The Cube
can still achieve 10% ROI
Capital
Appreciation
In line with
capital appreciation averages (12%) as quoted by the Dubai municipality
it is largely accepted that projects will appreciate by at least
10% per annum.
During the
2yr development phase of The Cube we therefore anticipate 20%
capital appreciation between now and completion.
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