Like any real estate investment, your capital is secured against a tangible asset and since we paid cash, there is very little risk. The property will increase in equity once we have finished construction and since it’s an operating luxury hotel on the beach it is also worth 2-5x more than just the value of the real estate. The biggest risk - as with all real estate - is that this is not a liquid asset. You must first offer your shares to the other shareholders and then you can offer them to somebody else. But in all honesty, if you’re making 15%(1) and the asset is appreciating, are you really going to want to sell it?
Your investment is 100%+ secured the day you invest with us, because we acquire below-market beachfront properties in up-and-coming markets that are worth more than the original capital investment once we have finished construction. Along with the immediate construction value, we will have premium appreciation in these markets. Additionally, being part of an internationally-affiliated hotel brand company adds tremendous value. We are also operating the Fund as if it were a publicly traded company, with monthly reporting to shareholders, quarterly Shareholder conference calls, an annual Shareholder meeting, as well as an annual audit by KPMG.
The worst case scenarios are:
Geo-Political — KASA Hotel Collection has chosen to open hotels in stable countries where the risk of the government taking your property away is basically zero.
Hotel Fails — If guests no longer wish to stay in a particular hotel and revenue plummets as a result, we could:
- Sell it for a profit.
- Turn it into condos and sell them.
- Turn it into long term rentals.
Keep in mind that these scenarios are highly unlikely, however, due to the fact that we only invest in premium beachfront property located in up-and-coming real estate markets.
Because hotels make more than this amount. Traditionally, these types of investments are only offered to high-net-worth individuals or financial institutions. You will receive a 5%(1) Internal Rate of Return IRR during the first 18 months, then 15%(1) ROI each year thereafter. Just like any real estate investment, every property we develop will have immediate equity once it is open, coupled with fantastic appreciation.
With each of the locations where we are planning to open hotels, the minimum is $420 per night, increasing very quickly to $800+ per night. Incidentally, $420 is the worldwide average that other hotels affiliated with Small Luxury Hotels of the World achieve. Their average occupancy rate is 72%, so with these numbers our Shareholders with be very happy with the returns.
Nothing in life is guaranteed except for death and taxes, but this experienced management team and luxury hotel company are Shareholders just like you and we do not make money unless you do.
When you invest your money, it will be assigned to a particular hotel that is in process of construction and being opened. Until this assigned hotel is open, you will receive 5%(1) IRR. Once the hotel is open you will - for perpetuity - receive your share of profits from the entire portfolio of hotels that are open for business. The 5%(1) will be paid no later than the end of year three for the assigned hotel.
KASA thought that it was only fair to pay shareholders 5%(1) during development, but the IRR cannot be paid until the hotels are open, since we have to make a profit to be able to pay it. In fact, the FUND has until the end of year three to pay the 5%(1).
Yes, you can and it has never been easier! Simply roll over your existing IRA into a Self-Directed IRA and purchase shares. There are zero tax implications, since you are not cashing out the assets in your IRA, but are simply transferring your money from your existing custodian to a new custodian.
The Shareholders of KASA are made up of the Executive Team and private investors. All management decisions are made by the Executive Team, comprised of leading industry professionals with decades of experience in hotel development and management. They only make money if we also generate profits for Shareholders.
The hotel business is very academic, similar to practicing medicine or law. One of the most internationally recognized hotel management graduate programs in the world is Cornell University, and both our CEO and Operations Manager are faculty members. They, along with our other team members, have opened hotels internationally such as Hyatt, Rosewood, Savoy, Shangri La, Marriott and Intercontinental, as well as smaller boutique hotels as part of Small Luxury Hotels of the World. The other members of our team include experienced investment advisors, construction project managers, and human resources professionals. Additionally, our Spa Director has won “Best Spa” a few times for Palmilla and Capella in Cabo San Lucas, Mexico.
KASA’s first five hotels are based in Mexico and so is the main office. There is very good qualified labor available in Mexico at a fraction of the cost you will find in many other countries.
Many clients have pondered this same question. This is a hands-off investment in the form of a well-diversified international portfolio of luxury beachfront hotels, managed by an incredible team who will only make money when you make money. Your principal is 100% secured, just as if you had invested in your own hotel, but with none of the day-to-day headaches that come with managing this type of real estate investment.
Your success in the stock market depends on when you invest your capital along with the whim of the market. Most investors are lucky to see 5% returns over the course of their investing years, and that’s without the principal being secured. Our Fund provides diversification against stock market volatility and the imminent market correction that is coming. The Fund will return 15%+(1) per year, with your capital 100% secured.
As a Shareholder, you may stay in any of the KASA hotels at cost, which is typically about $50 per night. You will be treated as a VIP guest, complete with room upgrades, invitations to any social activities and discounts for on-site restaurants, bars and the spa. In fact, you will be treated like a King! We appreciate all of our Shareholders and want them to enjoy all of the locations. However, we cannot have some Shareholders taking money from other Shareholders, so if the hotel is full you will have to pay the full rack rate. We also have manager’s quarters on each property that are designed to be used as overflow, for Shareholders and management to use when the hotel is full.
Yes, of course we do! Just like any other hotel, we have a CAPITAL EXPENDITURE RESERVE (CAPEX) so that at year 7 we can completely remodel each hotel, including rooms, restaurants and bars. This is accounted for in our projections.
Being part of an internationally-recognized brand reassures our guests that we have the luxury standards of a 5-star hotel. SLH gives our reservations department access to Hyatt’s 13 Million members, SLH’s 300,000 active members, more than 25,000 luxury travel agents in 28 countries 24/7, as well as members of all airlines, AMEX and MASTERCARD members + points.
As part of our business model, we intend to acquire enough land to develop private villas that can be sold. The profits from this will increase profits for Shareholders, since these villas will also be rented out via the hotel, helping to increase both revenue and profits. Additionally, these profits have not been taken into account for our projections and are instead considered “icing on the cake.”
No no no, this is nothing like timeshare. With the Fund, you actually own Shares of a company and make money. Instead, this is a private stock offering or a soft IPO and the Fund is designed to make money for its Shareholders, who may also use the properties when they are available.
The KASA Hotel Collection pipeline has 10 hotels and branded residences, with more than 500 guest rooms slated to open by the end of 2023. These hotels are going to open with or without investors, but working with investors allows KASA to open more hotels faster, making more money sooner for everyone involved.
Since most of the world’s most beautiful places are in either a hurricane path, close to a volcano or in an earthquake zone, it’s always a challenge wherever we open new hotels. The combination of high-quality construction and a good insurance policy helps mitigate this risk. Hotel insurance policies have a binder for loss of income during any reconstruction period.
(1) Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. These returns may include income, appreciation and profits from sales of any private villas. All investments involve risk and may result in significant losses. This represents an estimated, unrealized annualized internal rate of return (IRR) for the FUND and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date. “Annual ROI” represents an annual target return of investment and "term" represents the estimated term of the investment. Such target returns and estimated term are projections of the returns or term and may ultimately not be achieved. Actual returns and term may be materially different from such projections. These targeted returns and estimated term are based on the underlying agreement between the Investor and the FUND.
No communication by KASA Hotel Collection S.A. de C.V. or any of its affiliates (collectively, “KASA”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in KASA Investment Fund 1, S.A.P.I. ( herein after, “FUND”). Any investment information contained herein has been secured from sources that KASA believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by KASA or any other party, and MAY lose value.
Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investment in the FUND speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors will receive illiquid shares that may be subject to holding period requirements and/or liquidity concerns. Investments in the FUND is highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss KASA or relate to information contained herein, but KASA does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by KASA of the linked or reproduced content.Investing in the FUND listed on KASA pose risks, including but not limited to risk of a recession, guests leaving bad reviews, interest rate risk therefore
effecting property prices, depreciation of property prices, risk of construction material and labor prices increasing, risk of a labor strike, risk from terrorism, political instability in countries where the hotels are located and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks; and (3) consult with your own investment, tax, financial and legal advisors. An investment such as the FUND is only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in the FUND requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the FUND and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities.
No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. KASA is not registered as a broker-dealer. KASA does not make any representation or warranty to any prospective investor regarding the legality of an investment in the FUND.