• LA CHIC - Downtown

  • Hotel Investment Overview:

    Welcome to the Suites Hotel Investment Plan, located in the heart of Downtown, Cabo San Lucas. This Boutique Hotel, featuring 21 independent charming rooms, is strategically situated just half a block away from the Bustling Tourist Center along Blvd De La Marina.

    The property is a 5-level building, with each of the first four floors containing 5 suites, and the fifth level boasting a single master suite with a spacious terrace. An exciting feature of this property is that each unit has its own electrical meter, offering both cost savings and the potential to market individual suites as 1 bedroom apartments. Furthermore, there is room for expansion at the front of the property, along with prime commercial retail space.

  • Adjacent Property Opportunity:

    The hotel's owner also possesses an adjoining property, currently leased to a renowned restauranteur with eight years left on a ten-year lease. Acquiring this property, with its revenue-generating potential of 10%, provides a unique opportunity to complement the hotel's offerings, as well as future expantion. The presence of the restaurant further enhances the hotel's appeal. It is being currently offered at $950,000.00, with the purchase of the hotel.

  • Value of Surrounding Properties:

    Adjacent properties are available for acquisition, with the front property listed at $12 million and the adjoining, which requires redevelopment, at $2.5 million. The neighboring building, considered a tear-down, is valued at $6.5 million.

  • Investment Strategies:

    1. Dynamic Pricing: Implement flexible pricing strategies to maximize revenue, such as adjusting rates during holidays and peak seasons, and charging a flat rate per room, rather than occupancy-based rates. This adjustment alone is expected to increase net revenue from 11.3% to 15.3%.

    2. Renovation: Invest approximately $450,000 to give the property a modern and chic makeover, potentially doubling room rates to a net of 30.5%, and enhancing guest experience.

    3. Fractional Ownership: Explore selling 10 of the suites as fractional ownership, covering the building's acquisition cost, plus a 33% profits while retaining more then half of the revenue generated, including management fees from sold units.

  • Returns and Incentives:

    Investors can anticipate dividends ranging from 11.3% to 15.3% under current conditions. Additionally, the property's value is projected to more than double over the next five years.

  • Our Expertise:

    We offer a comprehensive range of expertise, including Architectural Design, Construction, Interior Design, Sourcing, Furniture Manufacturing, and Legal and Tax Knowledge in Mexico. With this robust support, we can Streamline Operations and Maximize Profits while Reducing your Administrative Burden.

  • Investment Summary:

    • Property Price: $1.8 million
    • Property Size: 5,500 square feet
    • Construction: 9,000 square feet
    • 21 CFE Meters (individual electrical meters)
    • High Occupancy Rate: 87%
    • Additional Value Sources: Lease for Parking, Bar, 2 Liquor Licenses
    • Room Rates: $66 for single occupancy, $76 for double occupancy
    • Average Daily Rate: 2021 ($58.32), 2022 ($66.37)
    • Supplementary Services: Italian Restaurant, Laundry, Pharmacy
    • 20,000-liter Cisterna for water storage
    • 4 stories with a potential 16-room addition approved by the municipality
    • Hotel condo fractional ownership opportunity
    • Gross Revenue (2022): $338,000.00
    • Net Revenue (2022): $203,000.00
    • 21 Units (2 never rented)
    • Additional Management Fee (Not on Books): $41,600 MX ($2,360.00) per month
    • Adjoining property approximately 3,250 square feet
    • Room sizes: 250 square feet
    • Penthouse: 500 square feet
    • Retail space: 250 square feet (leased at $1,000.00 per month)
    • Reception: 250 square feet
    • 7 Person Payroll: 24,000.00 pesos per week ($1,375.00)
    • 22 bathrooms

  • Note:

    The current pricing does not account for the income generated by two suites personally occupied by the existing owner.

    Additionally, the property includes access to a restaurant, bar, and grill, a laundry facility, a 20,000 Ltr cistern for water storage, and two liquor licenses. Covered parking for up to four cars is also available. All of these amenities will be offered to the new owner on a long-term lease at a minimal rent. The current rental rates are already posted.

  • Hotel Activity, Los Cabos

    Rates Continue To Rise As Occupancy Approaches 90%

    Los Cabos Didn’t See An Offseason In 2022
    According to data released by Lilzi Orcí of the Cabo hotels association, Los Cabos hotels and resorts were occupied at an average rate of 70 to 71% throughout the entire year. Effectively meaning that there was no true off-season for Los Cabos in 2022. This has led the most popular resort town in the Mexican Pacific to put up historic numbers when it comes to the number of visitors to the region. 

    In turn, that has also caused the average night at Cabo hotels to increase continuously. It currently sits at a bit over 450 dollars a night. As previously stated, rates are expected to go up in 2023. The worst days of the year for local hotels coincided with storms that hit the region. Even in those cases, the hotel occupancy rate sat at around 40%.   

    Los Cabos Occupancy Levels Have Allowed Average Nightly Rates To Rise 73% Since 2019
    Currently, the average nightly rate in Los Cabos, according to the hotels association, is even over 450 dollars. That price is 73% higher than it was in 2019, before the pandemic. At that time, the average nightly rate at Cabo hotels was a seemingly more reasonable 260 dollars. 

    There are certainly multiple factors that have contributed to such a massive increase. For starters, Cabo hotels operated in a limited capacity through 2020. Into 2022, the limited supply of rooms quickly drove up their price. Since demand remained steady even as hotels were able to open up more rooms for guests, there was no reason for the price to drop.

    Average daily occupied rooms

  • *figures from January to July 31

    The room occupancy percentage from Jan to July 2022 in Los Cabos San Lucas was 79.4%. The average hotel rate is US$455, the highest in Mexico.

    Three Year Increase: 129%

  • Hotel Numbers

  • Financial Insights and Investment Potential

    Kindly acknowledge that the following metrics have been derived from a brief analysis. Our study draws upon data from the current owner, real estate associations, and the Los Cabos Hotel association, spanning a comprehensive three-year period from 2019 through 2022.

    The entirety of this project has been scoped by our team, leveraging our profound professional expertise in architecture, construction, renovations, interior design, furnishings, decor, manufacturing, restaurant ownership, retail boutiques, and entrepreneurship.

    These figures serve as a glimpse into the substantial potential inherent in this investment. We strongly recommend the engagement of a reputable accounting firm to conduct a thorough examination and organization of all financial data.

    Recognizing the inherent unpredictability in any project, unforeseen factors or miscalculations may surface, potentially influencing the figures in either direction. Therefore, we advise considering a 20% variance allowance to accommodate such contingencies.

    We are confident that this venture presents a remarkable, gratifying, and prosperous business opportunity.

  • PROJECT ONE

  • (A) Purchase of existing hotel business with current performance returns.

    • Investment: $1,800,000.00
    • Gross Revenue: $338,000.00 per annum
    • Net Revenue: $203,000.00 (11.3% per annum)

  • (B) Rent the 2 suites that are currently set aside for family & friends.

    • Gross Profit Gain: 10.5%
    • Gross Return: $338,000.00 + 10.5% + $35,500.00 = $373,500.00
    • Net Return: $238,500.00 = 13.2%

  • (C) Manage suite rates not based on occupancy of 1 or 2 guests, as well as fluctuating room rates through seasons.

    • Gross Profit Gain: 10%
    • Gross Return: $373,500.00 + 10% + $37,350.00 = $411,000.00
    • Net Return: $276,000.00 = 15.3%

  • (D) Dividend Appreciation

    If the net revenue of $276,000.00 doubles in value over 5 years, the final value is $552,000.00

    Therefore, the annual increase is $55,200.00.

    Year 1: $55,200.00 = $331,200.00
    Year 2: $55,200.00 = $386,400.00
    Year 3: $55,200.00 = $441,600.00
    Year 4: $55,200.00 = $496,800.00
    Year 5: $55,200.00 = $552,000.00

  • Accumulated Growth: $2,208,000.00

  • (E) Asset Appreciation

    If the investment of $1,800,000.00 doubles in value over 5 years, the final value is $3,600,000.00

    Therefore, the annual increase is $360,000.00.

    Year 1: $360,000.00 = $2,160,000.00
    Year 2: $360,000.00 = $2,520,000.00
    Year 3: $360,000.00 = $2,880,000.00
    Year 4: $360,000.00 = $3,240,000.00
    Year 5: $360,000.00 = $3,600,000.00

  • 5 Year Accumulated Dividends + Asset Appreciation:
    $2,208,000.00 + $3,600,000.00 = $5,808,000.00 (3.2X)

  • PROJECT TWO

  • Investment In Upgrading Hotel

    By upgrading the hotel from a cheap, sleepy, outdated Mexican boutique hotel to 'LA CHIC, Downtown; we shall double the new suites' daily room rates, introduce a new lobby, add a CHIC Lounge, restaurant/bar for additional revenue, use retail space to create a 'CHIC Gift Shop,' and CHIC Scooter Rentals, among other activities to dramatically increase revenues.

  • (A) LA CHIC, Downtown

    • Investment Upgrade: $450,000.00 (25% Additional Investment)

    • Total Investment: $2,250,000.00

    • Gross Profit On Suites: $411,000.00 x 2 = $822,000.00, Double Gross Revenues To 36.5%

    • Net Profit: $687,000.00 = 30.5%


    • Property Value Appreciation
$1,800,000.00 X 2 = $3,600,000.00



    Note: Fixed overhead remains the same.

Investment Return On $450,000.00

    • Gross Profit Gain: $411,000.00

    • Net Return: $411,000.00 = 91% Return

  • (A1) Dividend Appreciation

    If the net revenue of $687,000.00 doubles in value over 5 years, the final value is $1,374,000.00

    Therefore, the annual increase is $137,400.00

    Year 1: $137,400.00 = $824,400.00
    Year 2: $137,400.00 = $961,800.00
    Year 3: $137,400.00 = $1,099,200.00
    Year 4: $137,400.00 = $1,236,600.00
    Year 5: $137,400.00 = $1,374,000.00

  • Accumulated Growth: $5,496,000.00

  • (A2) Asset Appreciation

    New value of investment of $3,600,000.00 doubles in value over 5 years, the final value is $7,200,000.00

    Therefore, the annual increase is $720,000.00.

    Year 1: $720,000.00 = $4,320,000.00
    Year 2: $720,000.00 = $5,040,000.00
    Year 3: $720,000.00 = $5,760,000.00
    Year 4: $720,000.00 = $6,480,000.00
    Year 5: $720,000.00 = $7,200,000.00

  • 5 Year Accumulated Dividends + Asset Appreciation: $5,496,000.00 + $7,200,000.00 = $12,696,000.00 (5.6X)

    Thus the investment of $450,000.00 in upgrading the hotel to LA CHIC, Downtown generates $4,188,000.00 (9.3X).

  • (B) CHIC Boutique


    Convert the leased street-front retail space to a stylish 'CHIC Gift Shop' to increase revenues

    Investment: $40,000.00

    • Gross Revenue: $30,000.00 month ($1,000.00 a day) x 12 = $360,000.00 annually - minus lease revenue $12,000.00 = $348,000.00
    • Net Revenue: $104,400 = 30%

  • (B1) Dividend Appreciation

    If the net revenue of $104,000.00 increases 50% in value over 5 years, the final value is $156,600.00

    Therefore, the annual increase is $10,440.00

    Year 1: $10,440.00 = $114,840.00
    Year 2: $10,440.00 = $125,280.00
    Year 3: $10,440.00 = $135,720.00
    Year 4: $10,440.00 = $146,160.00
    Year 5: $10,440.00 = $156,600.00

  • Accumulated Growth: $678,600.00

  • (C) CHIC Lounge

    On the second level street side upper terrace create a simple restaurant bar that does not exist on the property called 'CHIC Lounge.'

    Investment: $40,000.00

    • Gross Revenue: $30,000.00 month ($1,000.00 a day) x 12 = $360,000.00 annually
    • Net Revenue: $144,000.00 = 40%

  • (C1) Dividend Appreciation

    If the net revenue of $144,000.00 increases 50% in value over 5 years, the final value is $216,000.00

    Therefore, the annual increase is $28,800.00

    Year 1: $28,800.00 = $172,800.00
    Year 2: $28,800.00 = $201,600.00
    Year 3: $28,800.00 = $230,400.00
    Year 4: $28,800.00 = $259,200.00
    Year 5: $28,800.00 = $288,000.00

  • Accumulated Growth: $1,152,000.00

  • (D) CHIC Scooters

    Offer moped rentals from our street-front garage, stylishly personalized in red with La Chic branding

    Investment: $15,000.00

    • Gross Revenue: $120,000.00
    • Net Revenue: $82,800.00
    • Additional Timeshare: $36,000.00
    • Total Net: Total Net: $118,800.00 = 99%

  • (D1) Dividend Appreciation

    If the net revenue of $118,800.00 increases 50% in value over 5 years, the final value is $178,200.00

    Therefore, the annual increase is $11,880.00

    Year 1: $11,880.00 = $130,680.00
    Year 2: $11,880.00 = $142,560.00
    Year 3: $11,880.00 = $154,440.00
    Year 4: $11,880.00 = $166,320.00
    Year 5: $11,880.00 = $178,200.00

  • Accumulated Growth: $772,200.00

  • Renovations along with an increase in new business additions will reflect in the value of the property.


  • COMBINED BUSINESS NUMBER RESULTS

  • (1) Hotel Net Earnings:

    • Year 1: $824,400.00
    • Year 2: $1,786,200.00
    • Year 3: $2,885,400.00
    • Year 4: $4,122,000.00
    • Year 5: $5,496,000.00

  • (2) Small Businesses Net Earnings Accumulation

    • Year 1: $418,320.00
    • Year 2: $887,760.00
    • Year 3: $1,408,320.00
    • Year 4: $1,980,000.00
    • Year 5: $2,602,800.00

  • (3) Hotel & Small Businesses Net Earnings Accumulation Total

    • Year 1: $1,242,720.00
    • Year 2: $2,673,960.00
    • Year 3: $4,293,720.00
    • Year 4: $6,102,000.00
    • Year 5: $8,098,800.00

  • (4) Hotel Real Estate Appreciation

    • Year 1: $4,320,000.00
    • Year 2: $5,040,000.00
    • Year 3: $5,760,000.00
    • Year 4: $6,480,000.00
    • Year 5: $7,200,000.00

  • (5) Grand Total Of Accumulation

    • Year 1: $5,562,720.00
    • Year 2: $7,713,960.00
    • Year 3: $10,053,720.00
    • Year 4: $12,582,000.00
    • Year 5: $15,298,800.00

  • PROJECT THREE

  • (A) CHIC Ownership

    Offer units as a fractional property in 1-month segments.


    Fractional Structure    : 1 Month Ownership: $25,000.00, 12 Blocks: $300,000.00, 10 Units of 12 Blocks: $3,000,000.00

    The project generates a return of $3,000,000.00 million for a $2,250,000.00 investment, yielding $750,000.00 with a gain of 33%, while retaining more than 52.5% of the hotel units with 11 suites, the hotel property for expansion, management income, retail benefits, rentals, and the restaurant bar.

  • (B) Net Revenue after the sale of 10 suites as fractional:

    • 21 Suites Revenue: $687,000.00
    • 21 Suites - 10 = 47.5% = $326,325.00
    • Remaining 11 Suites: $360,675.00
    • Fractional Suites Revenue Value: $326,325.00
    • Management Fee Over Fractional: 30% = $97,897.50
    • Fractional Return: $228,427.50

    • Ownership: $360,675.00 + $97,897.50 = $458,572.50

  • The net income, after the sale of the 10 suites, recovery of the initial investment in full, plus a financial gain of $750,000.00.

  • The anticipated time length for all of this to take place is between 36 and 48 months.

  • CONCEPT - LA CHIC - Downtown

  • Indulge in the allure of LA CHIC Boutique Hotel Downtown, an extraordinary haven nestled in the heart of Cabo San Lucas. Whether you're here for business or an opulent vacation, this unique gem offers unparalleled convenience. Immerse yourself in the vibrant pulse of the town; stroll to the marina, beaches, restaurants, and bars, all without the need for a car or taxi.

    LA CHIC epitomizes sophistication, providing an upscale and charming alternative at a fraction of the average room rate in Los Cabos. Unveiling a one-bedroom suite at a mere $150.00 per night, a staggering 70% below the regional average of $455.00, this haven promises an exceptional experience. This irresistible blend of affordability and luxury positions LA CHIC as the epitome of chic indulgence, ensuring its status as the most alluring choice in Cabo. Embrace the extraordinary at LA CHIC Boutique Hotel Downtown, where every moment is a celebration of opulence and allure.

  • CHIC Boutique

  • We carry top tier items as found in the Most Exclusive shops around the world, with a twist by offering as well the most Unique Items
  • HERMANUS&Co

  • INDULGE in the World of unparalleled Luxury at HERMANUS, where Opulence knows no bounds. Our collection is a haven of Allure, inviting you to explore a tantalizing array of the most Exquisite Global Brands.

  • STEP into a realm of Decadence, where every piece is a MASTERPIECE. Discover the allure of unique accessories, and decor that will seduce your senses. Immerse yourself in igniting in both sight and emotion.
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  • ADORN Yourself with the Finest Jewelry & Accessories from the HERMANUS Collection, an Embodiment of pure Elegance. Our collection of Unique Apparel and Accessories, including summer dresses, tee shirts, and polos, exude an irresistible charm.
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  • As a True Testament to the Extraordinary, we proudly showcase authentic one-of-a-kind art from Masters like Picasso, Salvador Dali, Tamayo, and many others. These artistic treasures, a blend of passion and inspiration, await your discerning eye at HERMANUS, the Epitome of Sophistication and Allure.

  • CHIC Lounge

  • Indulge in the allure of sophistication at CHIC Lounge, nestled on the second floor of the 'LA CHIC' Boutique hotel. Immerse yourself in the enticing rhythm of soothing lounge music as you savor delectable barbecue delights, from a simple hamburger to exquisite tapas. Our chic terrace garden, perched above the bustling street, exudes an intimate coziness that captivates the senses.

    Elevate your experience with Mixology masterpieces and morning smoothies, each crafted to perfection. Our service, accompanied by bowtie-clad elegance, adds a touch of glamour to the simplicity. The tantalizing aroma of barbecue wafts through the air, beckoning passersby and drawing a crowd of anticipation.

    CHIC Lounge is more than a destination; it's a magnet for attention, luring in not only hotel guests but also those seeking an unforgettable culinary escape. Before and after dining at the adjacent Italian restaurant, let the allure of CHIC Lounge leave an indelible mark on your senses. Welcome to the epitome of chic indulgence at 'LA CHIC.'

  • CHIC Yachts & Scooters

  • We recognize our Strategic Advantage, nestled in the Heart of Los Cabos, and we leverage this Unique Location within this prime real estate to enhance Our Profitability. This expansion encompasses Yacht Brokerage and our own Rental Services, complemented by stylish Italian Scooter rentals that contribute to building our brand, fortifying our profit base, and expanding our Investor Network. These elements synergize harmoniously to cultivate a thriving Business Emporium, committed to "Creating Beauty Through Harmony." After all, why settle for less when you can truly "Have it All"?

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  • HERMANUS&Co Red Vespa Scooters

  • Why Choose Us:

    HERMANUS Investment Group is not your typical company. Our unique approach aligns our interests with those of our investors. We charge a 2% fee on the acquisition to ensure that the purchase is executed in the most protective and tax-advantageous manner.

    Hermanus I.G. charges a 20% of profits derived as a management company, but in return, we provide a comprehensive package of services, including architectural expertise, construction know-how, marketing support, and cost-saving strategies. Our unwavering commitment is to maximize your investment's potential, ensuring its success while delivering a hassle-free experience. We harness our collective expertise to benefit the entire group and secure wholesale pricing for all services, guaranteeing maximum returns for our investors.

  • Get in touch with us to explore this promising investment opportunity and experience the advantages of partnering with a dedicated and committed team.