Ischia · Income-Producing
Income-Producing Guest House
Executive summary
The opportunity
A small, trading guest house near Forio with thermal-season demand and an owner ready to retire.
Investment thesis
- The thermal season extends letting well beyond the summer months.
- Existing trading history reduces underwriting uncertainty.
- Light refurbishment repositions the asset a tier higher.
Project cost
- Acquisition price
- €850,000
- Purchase costs
- €63,000
- Renovation budget
- €90,000
- Furnishing / setup
- €35,000
- Total project cost
- €1,038,000
Renovation timeline
Trading from completion; phased upgrade across the first two winters.
Scenarios
Three sets of assumptions.
Conservative
- Projected ADR
- €210
- Projected occupancy
- 55%
- Projected revenue
- €126,500
- Operating costs
- €62,000
- Projected NOI
- €64,500
- Gross yield
- 12.2%*
- Net yield
- 6.2%*
Base
- Projected ADR
- €235
- Projected occupancy
- 62%
- Projected revenue
- €159,500
- Operating costs
- €70,000
- Projected NOI
- €89,500
- Gross yield
- 15.4%*
- Net yield
- 8.6%*
Optimistic
- Projected ADR
- €260
- Projected occupancy
- 70%
- Projected revenue
- €199,200
- Operating costs
- €80,000
- Projected NOI
- €119,200
- Gross yield
- 19.2%*
- Net yield
- 11.5%*
*Illustrative projections based on assumptions. Returns are not guaranteed and do not constitute financial advice.
Risks
- Operating businesses carry staffing and compliance obligations.
- Building compliance history must be verified before exchange.
- Ferry dependency affects shoulder-season demand.
Exit considerations
Income-producing island assets sell on yield, giving a clearer exit route than purely lifestyle property.
Included in the memorandum
- Photo gallery
- Floorplan
- Map
- Cost breakdown
- Scenario model
- Timeline
Related opportunities
The market
A long thermal season extends letting beyond the summer months. Income-producing small hotels and B&Bs appear more frequently here than elsewhere in the region.
Property in IschiaInvestment advisory
Discuss this opportunity.
We will walk you through the assumptions line by line, including the ones we are least confident about.