DAODESIGN

MINI HOTEL SON TRA H-VA

Da Nang, Viet Nam

INVESTMENT CONSIDERATIONS & LONG-TERM ECONOMIC EFFICIENCY FOR A 5-STORY BUILDING ON CHAU THI VINH TE STREET, DA NANG

The story begins with a couple, Mr. V. and Mrs. T., who are engaged in family business operations. They own a prime piece of land on Chau Thi Vinh Te Street and desire a more luxurious and spacious living environment. Additionally, they want their new home to be profitable, leveraging its prime location.

With an initial investment of VND 5 billion, the couple hopes to start seeing profits within five years of operation. This goal is crucial for them and serves as a measure of success for BK Villa to meet their expectations.

BUSINESS STRATEGY FOR THE PRIME LAND ON CHAU THI VINH TE STREET, DA NANG

Here are some details about the property:

Total land area: 102m²

Building regulations: 1.2m setback from the road boundary

Target customer segment: Upper-middle class

Bài toán kinh doanh bắt đầu khi ngưỡng đầu tư tối đa mà chủ nhà đưa ra là 5 tỷ đồng. Chủ đầu tư đặt ra mục tiêu thu hồi vốn và chi phí đầu tư trong vòng 5 năm.

BK VILLA’S SOLUTION

After careful calculation and market analysis, the architects and engineers at BK Villa proposed a creative design and construction solution. The project is a 5-story building with the following layout:

Top floor: Private living space for Mr. V., Mrs. T., and their two children. Lower floors: Divided into two sections:

Section #1: Ground floor and mezzanine designed for a café business, with a monthly rental price ranging from VND 15-17 million.

Section #2: Floors 2, 3, and 4, intended for lodging business (single and double rooms).

Each floor contains 1 single room and 2 double rooms. The average rental prices for single and double rooms are VND 6 million and VND 9 million, respectively. Thus, the total maximum monthly rental value for the entire building is VND 99 million.

With this scenario, assuming regular occupancy, the steady income over the next five years will be:
99 million VND x 12 months x 5 years = 5.94 billion VND.

Cost Calculation:

Total design and permit costs: VND 170 million (including fire safety permits)

Construction and interior decoration costs: Estimated at VND 4.2 billion

Equipment costs: VND 650 million

→ Total construction investment: VND 5.02 billion

Given the projected income and expense fluctuation, the investment could be recovered within four years. Moreover, with high-quality construction and standards, BK Villa confidently addresses the balance between investment and economic efficiency, ensuring long-term profitability for the investors of the Chau Thi Vinh Te project.