Viwa Island Resort, Yasawa Islands, Fiji Contact: Chris Ardill-Guinness Phone + 61 403054022 Email: firstname.lastname@example.org
The chance of a lifetime to live your dream The moment you step ashore - catch the fragrance of tropical fruit and bougainvillea - cast your eyes back across the opalescent lagoon and pearl white beach; you know this is a holiday destination you never want to leave. A destination that you could own and turn into a substantial living. Opened in 2008, this impeccable boutique resort, comprising of 11 bures and infrastructure is now regrettably on the market. At an asking price for outright sale of US$1,950,000 this is an amazing price for a resort that cost in excess of US$ 5 million dollars to build, stock, promote and staff. This property will not last long at this revised price and it is only on the market because the owner recently had medical advice he needs to slow down. The Fiji governments incentive program whereby there would be no tax paid until the resort profit exceeds F $3.5 million additionally leverage this asking price
Resort is constantly booked 90% occupancy Travel cognoscenti have been quick to recognise the destinationâ€™s allure. The resort is regularly booked out and forced to turn away guests. Bookings for the remainder of 2012 are between 70-90 per cent of capacityâ€Śeven in the quiet months of May and June. Guests who have stayed at the resort continue to eulogise it on travel websites like Trip Advisor.
An environmentally friendly resort on a pristine coastline Hugging the beach, the resort is set amongst substantial organic vegetable gardens which are fed from two deep bores through coral and limestone providing near potable water which is further treated in a desalination plant. Set on close to 12 acres, the resort has a 99-year lease and is gifted with two local villages that provide trained staff to run the facility. Most of the hard work for this enviable resort has been done. There is a state of the art waste treatment plant installed at a cost of A$250,000. It has sufficient capacity to deal with the planned expansion of 9 additional bures along the foreshore, bringing the capacity of the resort to 20 bures on the beachfront. The owners feel the resort is now so highly regarded by international travel brokers that an extension is prudent as the resort is running at near 90% capacity and being forced to turn away clients. The resort complies with all facets of the Environmental Impact Study commissioned at a cost of $30,000. The owner has invited international chefs to share their secrets with the locals and as a result the kitchen turns out some mouth-watering dishes. There are island specialties like Kokoda Fiji's unofficial national dish. Raw walu, or spanish mackerel, marinated in lime and chilli, swimming in a coconut cream garnished with finely chopped onions and tomatoes. Some of the sweets too are unforgettable…and the cocktails dispensed from the bar with great flourish never fail to get patrons in high spirits !!
Bar, lounge, restaurant and 30 foot infinity pool. The main pavilion, which borrows from tribal design, is the entertainment hub of the resort comprising a spacious restaurant, bar and lounge area. At the rear is a recreation area, office and reception booth. Guests can drink in the bar, dine inside or outside on the large deck with views of the lagoon, the Yasawa island chain and the 30 foot infinity pool. The coconut and frangipani scented breezes drifting in are quite bewitching to the senses. The resort has many attractions but the Dive Master continues to be very busy. Many of the guests come to dive the outer reef, which has crystal clear balmy water and teeming fish life. There are two dive compressors at the resort, up to date dive equipment for 10 guests at any one time and a 30-foot dive boat with a 225HP Yamaha engine.
Elegant rooms, with inside outside bathrooms With floors from polished mahogany and plantationshuttered windows to catch the breeze - the eight single and three double bures are both elegant and comfortable. The inside/outside bathrooms add a touch of romance. You can shower and watch the clouds scudding by. Each room has its own mini-bar, electronic safe, air-conditioning and ceiling fan. The bures are nearby but far enough away for complete privacy. Two 75KVA generators housed in the maintenance area on the resortâ€™s fenced boundary provide power for the bures and the main pavilion. All of buildings within the resort have been built to sustain heavy weather. There have been a number of severe storms in the area but the resort emerged unscathed.
Infrastructure built for the long term The resort was originally conceived to have 20 bures so the infrastructure was built to accommodate them. Fortunately after three days drilling two underground springs were located that provide near potable water. This is passed through a reverse osmosis system desalination plant which can provide water for drinking at a rate of 17,000 litres per day. There are five 10,000 litre tanks to provide ample storage of water when usage drops off. The sewage system runs through a separate reverse osmosis system returning it to grey water which used on the veggie gardens. The resort is almost entirely self sufficient when it comes to seasonal vegetables and fruits. Power is provided by two 75Kva generators worth around F$30,000 each and diesel comes in by barge once every two weeks.
Assistance to transition into a new lifestyle The owners are willing to stay on in a transition period to bed in the new ownership. The resort has built an enviable list of suppliers and trade contacts, which would be helpful to streamline the initial trading period if the owners are out of area. Importantly the owners would also welcome a substantial investor that would take over some of the heavy lifting either with finance (paying out the bank loan and leases) or taking over some of the managerial tasks or a mixture of both. The major drag on profitability is the bank loan and leasesâ€Śthese consume around US$30,000 per month. Once these overheads are paid off the resort would begin to throw off some very encouraging figures. With additional bures the profit potential jumps considerably. (Please request additional material) Turnover in high season is around A$70,000 per week. Facilities include: 1.
Industrial kitchen with 20 foot refrigerated container and freezer room.
Staff quarters with eight large rooms able to accommodate three full time staff members.
Three boats which include: - A forty foot Ramco design transport boat with twin 350 HP Yamaha engines - Fishing and dive boat (30 foot) with 225 HP Yamaha engine - All-purpose longboat with 60 HP Yamaha engine.
Six kayaks (two doubles and four singles)
Question and Answer The reason for sale is the owner and his family have built the resort from scratch over the last six years and it has taken its toll. We can supply you with full detailed financials. Currently the resort is full with bookings through to February 2013 The resort when full turns over approximately A$70,000 per week which includes accommodation, liquor and dive outings. There are approved plans for another 9 bures which would certainly enhance the numbers. At the moment the resort is forced to turn away customers because of rooms.
Viwa. The ferry ride costs F$140 one way, this is the guests expense. The trip from Waya to the island is part of the tariff absorbed by the resort. You can also take a helicopter from Nadi to the resort. It is around US$600 one way per person for the 30 minute journey. The twin Yamaha's on the ocean going vessel burn through around 35 litres of fuel each for the return journey.
Insurance seems high. Is that specific to the Yasawas? What does it cover? Insurance is by Lloyds of London negotiated through AON Risk...one of the largest brokers in the world. The resort is covered for everything except tsunamis. The resort is very substantially built.
What is the average room rate and what is the high and low season with occupancy rates (average)? There are 11 bures... three of them are double bedrooms. they are renting for F$ 3600.00 per week. multiply that by four for a month and you have F $39,600.00 and by four for the month and you have F$158,400. The average occupancy from July to December has been in fact around 90%. The bookings for January 2012 were around 90% full and February...a seasonally quiet time came in at 82%. . They are also getting a lot of diving activity since the waters are pristine and coral reefs luxuriant and beautiful.. What does it cost to get from mainland to Viwa Resort? There are two components for the journey for most guests. A fast ferry ride from Denaru in Nadi Fiji which takes guests to Waya in the Yasawas ( takes about two hoursÂ )They are then picked up by the resort's 10 metre ocean going vessel for the 20-30 minute trip to
to you. They also have good contacts with the government instrumentalities. The owner's daughter is also the Dive master and has considerable experience with the dive sites, currents, weather etc. Recall there are two compressors plus dive gear for around 10 people at the resort. The owner would also be valuable in sourcing the building materials and contractors to complete the next stage of the resort.
Fuel also seems high. How many units did you say there were? Are they powered up 24 / 7? What is the power setup? Have you considered a green alternative?
Can you please explain the proposed transition plan and staffing in more detail? The transition plan is flexible and up for discussion. The owner and his family obviously have considerable experience dealing with the local people and with the various service suppliers on the mainland which might be valuable
Fuel is fairly high but until recently the generators were running 24/7. They are now running the generators until 2am I believe and starting up at 6am to save fuel. As for "green" alternatives they have considered solar since there is plenty of sunshine but as yet nothing has been initiated. As regards the extra bures the current generator set up and sewerage/desalinator are large enough to cater for the extra facilities.The main pavillion is plenty big enough as is the pool.
Question and Answer continued How and where do you do your marketing? The resort has built up a network of wholesalers worldwide. They include ATS Pacific, Infinity, Qantas, Flight Centre, McCoy Travel ( Hawaii) and Destination World (L.A.) They also have placed ads in magazines and newspapers. The resort has also been visited by a number of TV travel shows.
You will see from the projection that with perfectly attainable occupancy figures the resort would turnover in excess of $4 million. Total expenses would come in around $2.8 million allowing for a approximately $1.1 million profit. And those initial profits would be tax free because of the Fiji governments incentive program There would NO TAX paid until the resort profits exceed F $3.5million. Where will the proposed bures be built and how did you come up with a price of A$160-180K per bungalow? The proposed bures would be set on the beach front as the other 11 have been. The plans are approved by the Fiji government and theÂ Naiebale people who are the traditional owners of the island. The resort has 93 years left to run on the lease and it is conceivable that that could be extended. But most of the major companies who have invested in islands and resorts are on leasehold land.
With the infusion of additional capital what is the potential upside with 20 bures? Figures must be an extrapolation but the resort turned away over 300 people during the last six months because there was no room for them. That would substantiate the value in building more bures. (Please see attached Excel spreadsheet projection figures)
There are very few islands actually for sale...certainly nothing around this price range. As for the price you could budget for A$ 170,000 as a contingency. The bures are built solid for hurricane force winds but the owner believes the figure would come in somewhere between the two quotes. (Unfortunately the way currencies are gyrating and commodity costs soaring we might need to have a more exact quote. This can be furnished) The arrangement with theÂ Naiebale (the local people ) is they get an annual 3.5% of gross profits but never less than F
$20,000.00 They also get F$3000 each year for the fishing rights for the resort and the guests.
Question and Answer continued What activities are there for guests? Are there any future activities possible that do not currently exist? As for activities there are currently kayaking in the lagoon, snorkelling in the lagoon and on the outer reef, beach volleyball (very enthusiastically attended ) scuba diving, fishing and walks across the island to the two native villages. Both provide traditional ornaments , paintings and cultural ceremonies for the guests. Oh and there are traditional Kava ceremonies a couple of nights each week for the guests. Kava is a root vegetable that when powdered into a paste and mixed with water provides calming psychoactive properties. Given how tranquil guests become there after a week, Kava is hardly necessary but everyone enjoys the traditional ceremony and there is a lot of hooting and hollering going on mid-way through the ceremony. There is also a substantial swimming pool. As for other activities an obvious one might be windsurfing or small catamarans in the lagoon that sometimes get a decent breeze. There could also be game fishing but that would need a specially equipped vessel. The transport vessel would not suffice for this although one of the three vessels owned by the resort currently is more than adequate for fishing for the resort and the guests. Fishing for barracuda and other billfish does however require a specially equipped vessel. If the money was available a small yacht to sail with guests around the island or to nearby islands might be a very attractive option.
Could you give me more information about the relationship with the indigenous people on the island? The Fijian chiefly system follows the Polynesian system where the position is hereditary. The Fijian village is made up of several yavusa - the largest social unit for Fijians. The yavusa is basically a family group going back to one original member of that migration. If the founder of the yavusa had only one son then after his death, the son succeeded him as chief of that yavusa. If there were two or more sons - then the succession was from brother to brother. When the last brother died, then the eldest son of the senior brother became chief. Each member of the family of brothers then formed his branch of the yavusa called mataqali. The mataqali acquired a distinct name and identity and became the custodian of a particular task. In a fully developed yavusa, there are several mataqali. They are as follows: - The turaga or chiefly mataqali who were the most direct line of
descent (through patriachal links) to the ancestor. The chief of the village is chosen from this mataqali. - The sauturaga or executive mataqali - who were next in rank to the chiefs of blood. The chief's second in command they carry out his commands and support him. - The mata ni vanua or diplomatic mataqali are the official heralds and masters of ceremony. – The bete or priestly mataqali performed the religious rites and were the mouthpiece through which the kalou-vu spoke. - The bati or warrior mataqali. The smallest unit in the Fijian village is the tokatoka, a subdivision of the mataqali. The tokatoka is made up of closely related families with the same blood relative as their head. Each yavusa is part of a village, with that village being part of a district and that district being part of a province. How does the current political situation in Fiji effect the resort? As tourism is so important to the people and government of Fiji, considerable effort goes into ensuring that there are no disruptions to the tourist industry regardless of day to day political event. The Fiji Government will grants Fijian citizenship to support investment in the country.
Further information available:
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- Financial statements 2010 - Financial statements 2011 - Profit projection for 20 bures
Contact: Chris Ardill-Guinness Phone + 61 403054022 Email: email@example.com