Quintessencia Capital provides accredited investors access to investment participation in luxury resort developments, an asset class previously only available to the large, institutional investors.
The Fund’s mandate is to invest in a portfolio of geographically diversified, luxury boutique resorts, in spectacular, irreplaceable sites in Europe, South East Asia, the Bahamas, Barbados, Maldives, and elsewhere.
Each portfolio resort company is a separate entity domiciled in the geography of the particular resort. Each portfolio resort company owns its land holdings and its resort assets. All of our asset backed investments yield superior returns with capital repatriated through real estate sales and thereafter provided with ongoing, recurring revenue from resort operations. Resort real estate sales proceeds eliminate debt, return equity principal amounts to our investors, and significantly raise enterprise value.
As recently reported by Jones Lang Lasalle luxury resort investment is set to build stronger than before due to pent-up frustrated travel demand and high levels of vaccination. Even during the pandemic, interest in luxury hotels was resilient. Since March 2020 investment deals have been signed in Europe worth a total of €3 billion. Revenue metrics are rising faster for luxury resorts than for any other sub-sector. There is significant confidence in long term demand with luxury resorts considered as safe options for wealth preservation and as an inflation hedge.
Investment Strategy
Multiple Sources of Liquidity
A Disciplined Business Model
Our strategy and approach is focussed on the investment and development of luxury resorts that combine elegant hotel suites retained on balance sheet with luxurious, fully furnished apartment and villa inventory developed for sale and rental. Our singular focus on luxury resorts provides a debt free asset post villa sales, with ongoing recurring revenue and annuity income from operations.
Our strategy harnesses the arbitrage between: selling prices and development costs; short construction times of 12 to 16 months motivating real estate closings and sales absorption; intimate scale, outstanding service and low operating costs; and the combination of both retained, on balance sheet and divested rental pool inventory.
A Disciplined Business Model
Multiple Sources of Liquidity
A Disciplined Business Model
Our business model for all of our luxury resort investments is:
1. The development of branded hotel room inventory with luxury fully furnished apartments and villas for sale and rental, so as to provide
2. A debt free property post construction and closing of villa sales, together with
3. An ongoing recurring revenue and annuity stream from hotel and hospitality operations, utilizing
4. Preferred equity and convertible debt structures providing controls and superior returns, facilitated by
5. The utilization of the top resort real estate marketers engaged in our developments that have a track record in multi-million $ project pre-sales of resort real estate.
Multiple Sources of Liquidity
Multiple Sources of Liquidity
Multiple Sources of Liquidity
Our business model repays all equity capital within a 3 to 4 year time horizon from placement. This is initially accommodated through real estate sales.
Ongoing liquidity and returns following repayment of equity principal amounts are provided from recurring revenue. Annuity cash flows from resort operations come from multiple sources including rooms, F&B, spa and wellness, retail, and resort activities.
Subsequent phases of real estate development and sales provide further investment returns. Investors may also participate in divestments. Resort companies typically trade on a price to FCF ratio of circa. 30x to 50x due to the inherent annuity of recurring operating profit.