Opportunity Snapshot
- Country: Chile
- Industry: Tourism, Recreation
- Stage: Start-up
- Investment size: $140,000 / min. $20,000
Investment Opportunity
Restaurant/Campground in Hornopiren, Patagonia, Chile
Investment needed $20.000.00-$1400000
Back to the nature, away from the noise and back to the family values. We will give great services and good food to nature lovers who like to hike in the beautiful Andes Mountain in Patagonia and enjoy nature, be with good friends, listen to birds and have good conversations in a harmonious surrounding. Funding is needed to start up and improve the facilities.
The Property is the last restaurant/campground immediately before the Hornopiren national park starts. Hornopiren is an amazing park with wonderful vegetation. The panqui leaves that are to be found in the park are the biggest we have ever seen. The park abounds in the famous alerce trees. Cut down almost to extinction in most other places, this, the second oldest living thing on earth, has found a safe haven here. The park offers basic camping facilities but getting to the camp sites is quite a challenge. The town of Hornopiren is about 11km from where the mountain starts hiking up. Hornopiren is also the departure point of the ferries going further south to Pumalin and Chaiten.
The restaurant was built but never used and it was not open for business since it was built few years ago. Even though the restaurant/campground was never used for business it needs some minor improvements and outside paint.
Property information:
The overall area is 6.000 square meters.
Each cabin is made of native wood lined with larch tiles and has an American kitchen, bathroom and two or three bedrooms. The cabins are completely equipped and working. There are 4 cabins altogether. The sizes of the cabins (built-up surface) are as follows: 1) 66 square meters 2) 40 square meters 3), and 4) 30 square meters (last three can be expanded to 48 square meters each). The cabins are perfect to harbor fishermen, vacationers, families, etc.
The restaurant is also made of native wood and the constructed surface is 91 square meters. Its location is very good, in front of the volcano Hornopiren and on the way to the National Park. It has a wide kitchen, 2 bathrooms, dining room, bar and living room, including all the services: natural gas, electricity, pure water.
Planned future improvements include:
- 3 Colorado Yurts, 30'diameter each, with a round swimming pool in the inner yard;
- 20x 250 watt solar cell panels and 1 kilowatt windmill to enable us produce ourselves eco-friendly power for the needs of the property.
We are bringing tourists over to Hornopiren from all over the world and showing them how beautiful Patagonia and Chile is. We are speaking several languages. Our restaurant will have Swiss cuisine, American cuisine, Philippine cuisine and Chilean cuisine. We will have very affordable prices for families, backpackers and adventurers. We have many contacts with travel agents from Europe, America and Australia. Hornopiren is located in a tax free trade area. There are no property taxes and the government will refund 20-25% on all new improvements and purchases. The Chilean government plans to replace the gravel/dirt road with an asphalt road to Hornopiren in 2014. This will raise the value of the property up to 35-50%.
We are looking for a 4-5 years payback period. It will be interesting for investors to get involved in a project for a beautiful area that will make use of the existent tourism in Hornopiren town and attract more tourism. It will bring a fast and very good return on the invested money. More and more tourists nowadays like to go to eco-friendly places and this is a way to do something for our beautiful planet.
The funding required is for the start-up and improvement of the property. We have the project planned and it's now ready to start.
Competitive Advantage
We are working with tourists our whole lives and we know what tourists want. I was in Alaska in the touristic gold panning industry as a business owner of a gold panning business. Before that I was in Switzerland in the Ski instructions business. My partner was a restaurant manager and a real estate agent.
Our advantage is that we have knowledge of the business and contacts from travel agents all over the world. Furthermore, we all speak minimum 2 languages from the following: English, German, Swiss-German, Spanish and Philippine, and our team is multicultural.
The place we have is small, we have only room for 28 people for sleeping there, but it gives us the chance to personally take care of our guests, guide them, plan everyone's trips and take care of their safety.
On the campground we also have place for tent campers. Our slogan is: take care for our nature and the nature will take care of us. What comes first for us is the happiness of our guests, and a happy guest will make you happy and bring you money.
Rationale for the deal
I love working and talking to people and seeing them happy and delighted by our services that they get for their hard earned vacation money. We will make very good money of this business. Especially, with regard to first class service we will give to our guests and the free electricity will be producing on our own. We have weekly rates that are normal in this area but our service will be better than everybody else's. We have our own with our personal car.
There are many examples from the practice proving that this can be a very successful business. I have a friend in Costa Rica who has a tree house campground with the same idea and he makes really very good money. I also saw a project in Alaska working with the same idea, which aslo was making very good returns.
There are 2 other places in Patagonia that are doing the same but they are on an island and have no National park with Volcanoes close by.
Use of financing
Investment is needed for buying and improving the facilities.
I'm looking for private investors because with them I'll get everything done faster and I'll be able to make money on my own. I don't have all the money yet because of some personal reasons (I had a divorce in Alaska and the court there is working slowly).
Payback is between 3-5 years. I am willing to pay to the right investor 15-20% from the profit every month.
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