• Location: The plot is very close to downtown Porto, with just a 10-minute walk from the ‘Faria Guimarães’ and Marquês metro stations, providing quick access to the historic center in 2–3 metro stations.

• Approval: The building has an approved PIP (Prior Information Request) from the Municipality, indicating that the plans for the development are officially endorsed.

• Hotel Specifications: The project is for a 4-star hotel with 90 rooms, designed to offer modern accommodations with easy access to Porto’s city center and tourist attractions.

• SHARE DEAL POSSIBILITY ( with the proposed tennancy agrement of €1.1m pa mentioned above):

Offering a share deal for the development of Hotel Antero Quental with a €6,000,000 asking price would involve structuring a partnership or investment opportunity for potential investors. Here’s how such a deal could be framed:

1. Overview of the Share Deal:

• The asking price of €6,000,000 represents the total value of the project or the required investment to fund the hotel development.

• A share deal would mean offering investors equity stakes in the project. In return, investors would provide capital for construction, planning, and other costs, potentially in exchange for a proportional share of the hotel’s future profits and/or an equity stake in the overall asset value.

2. Share Structure:

• The percentage of shares offered to investors would depend on the amount of capital they are willing to invest.

• For example, if €6,000,000 is needed for the total development, an investor contributing €1,000,000 could receive a 16.67% equity stake in the project (depending on the deal's structure and terms).

The equity share should be clear in terms of:

• Ownership: How much ownership each investor gets in terms of the hotel property and its future profits.

• Profit Distribution: How profits from the hotel (room rates, events, food & beverage, etc.) will be shared among investors.

• Exit Strategy: What happens if an investor wants to sell their share in the future (e.g., a buyout option, resale to other investors, etc.).

3. Investment Breakdown:

• The €6,000,000 asking price could cover various aspects of the project, including:

  • Land acquisition (if not already owned).

  • Construction and development costs: As the project already has PIP approval, this would likely include building materials, labor, architectural and design fees, interior outfitting, etc.

  • Licensing and legal fees: Costs for final approvals, permits, and legal consultations.

  • Pre-opening costs: Marketing, branding, and staffing required prior to opening.

4. Risk and Return:

• Risk: Development projects always come with risks (e.g., construction delays, unforeseen costs, changes in market conditions, etc.). The investors will need to assess these risks before proceeding.

• Return: The return for investors comes through revenue generation (from bookings, food and beverage sales, and events). In addition, the value of the property might appreciate as Porto continues to develop as a popular tourist destination, providing potential for capital gains.

  • Operating profits: The 4-star hotel can generate steady income from bookings and additional services (spa, restaurant, etc.), with revenue growing as the hotel becomes established.

  • Capital appreciation: As the hotel builds brand recognition and begins operating successfully, the value of the property may increase, giving investors the potential for long-term capital gains.

5. Investor Benefits:

• Attractive Location: The location is close to Porto’s historic center, a major tourist destination, and well-connected to the rest of the city, making the hotel an attractive option for tourists.

• Stable Revenue Streams: A 4-star hotel in a prime location can generate stable revenue from business and leisure travelers.

• Exit Opportunities: Investors may eventually sell their shares in the hotel, either through a public listing (if the project is incorporated into a larger entity) or through private negotiations with other investors or hotel management companies.

6. Possible Deal Terms:

• Equity Stake: Define the percentage of ownership for each investor based on their contribution. The equity structure might be flexible, depending on the number of investors and the capital they can provide.

• Profit Sharing: Agreements on how profits will be divided. It might be a pro-rata basis (based on the amount invested) or could include additional incentives for early investors.

• Management and Operational Control: Decide whether investors will have a say in the hotel’s day-to-day operations or if a professional hotel management team will handle the operational side.

• Exit Strategy: Define the duration of the investment period and the mechanism for exit (e.g., sale of the hotel, refinancing, or IPO).

7. Due Diligence & Financial Projections:

• Investors will likely require financial projections for the hotel, including estimated room rates, occupancy levels, operating costs, and projected revenue. The market feasibility of the hotel will be assessed, considering the growing tourism demand in Porto.

• Due diligence on the legal status of the land, the PIP approval process, and any existing liabilities should also be part of the offer.

Conclusion:

A €6,000,000 share deal for the Hotel Antero Quental project presents an opportunity for investors to become part of a potentially lucrative hospitality project in the heart of Porto. The success of the deal would hinge on creating clear terms for profit distribution, understanding the financial risks involved, and capitalizing on Porto's thriving tourism market. The overall structure could involve different types of investors, from those seeking active involvement to passive investors looking for long-term returns.

Would you like assistance in creating detailed financial projections or investment documents for such a deal?

If you're interested in further details, such as potential investment opportunities, the development timeline, or information on the surrounding area, feel free to ask!