The document discusses plans to construct a new luxury hotel in Cadaques City, Spain. Currently, the 19 hotels in the small city are old and offer poor services. A plot of land in the city center has been acquired for development of a three-story hotel with 13 guest rooms, underground spa, wine bar, and restaurant. Financing of over 2 million euros will come from various sources. The hotel aims to be the only modern accommodation and provide a wide range of amenities, helping to address the lack of quality hotels in the historic tourist town.

1. Construction of a hotel in Cadaques City
Costa Brava, Spain
UPDATED August 18, 2015

2. Cadaques is one of the most famous cities of Europe primarily due to the
fact that there were often famous artists. There lived Salvador Dali. The town
is small but very visited by tourists from all over the world. It is located near
the border with France. The main source of revenue in the budget of the city
is the Tourism. In difference to the Figueres city where is the Salvador Dali
Museum, Cadaques is on the sea, tourists go there not only to visit the
house museum of Salvador Dali, but also relax on the coast. It is a quiet
beautiful area between the mountains on the shores of the Mediterranean
Sea with significant for Europe cultural heritage.

3. The city is quite old and picturesque. The total number of hotels
in it is 19. All hotels are old and offer a poor set of services,
most of them are budget hotels. The hotel owners have no
shortage of customers, because of huge flow of tourists all year
round, that’s why they don’t develop their portfolio of services.
The city is located in the National Park of Cap de Creus and
there’s no land for its expansion since the time of Dali. The
lack of land is almost insurmountable barrier to new hotel
projects. Is true, there are those who find other ways to
establish, for example, recently Russian investors bought an
old hotel with a view to demolish it and in its place build a new
luxury hotel. But the total number of hotels in the town does not
change.
Hotel Playa Sol
Hotel L´Horta D´En Rahola
Hotel Oktavia
Hotel S´Aguarda

4. The land plot of the project is situated in the heart of
the city. It has a view to the south, that is, on the
sunny side, which is a huge plus in this compact
city.
Official title land use:
First floor - Commercial;
The second and third - Residential.
Land area - 202.23 sq.m. Is permitted to build up
100% of its area. In total is permitted to build 3 floors
with a total area of 600 sq.m. Also is allowed to build
an underground floor, but as the height above sea
level is only 50 cm, requires water-insulation.
Although of course there’s a big meaning in this floor.

5. The plot topography

6. Incisions
It will be a three-story building with an
underground floor. In the ground floor will be
a restaurant and the hotel reception and one
double guest room. In the second and third
will be 13 guest rooms. In the underground
floor will be situated the SPA, the wine bar
and a store room.
We have a preliminar sketches of the
building and its facade. It meets all the city
construction standards. Here is presented
without design, but gives an insight of the
allowed for construction building structure.

7. Incisions

8. The underground floor
Wine bar
SPA

9. The ground floor
Restaurant

10. Second & third floors

11. The frontage
Facade in the style of Salvador Dali
Facade in the style of Gaudí
Will be a small cozy hotel in the town heart with a wide set of
services. The total quantity of guest rooms will be 13, 11 of
them double, 2 single.
Will be the only modern hotel in the town for long time ahead.

12. Financing
The total amount of investments VAT incl. is 2.564.934,88 €. Will be a VAT refund from the investments & expenses in
the amount of 269.126,03 €. So, the needed amount of investment is 2.308.040,68 € .
The following table shows the structure of investments by major articles.
* The VAT is not physically paid .

13. Financing
Investments by major articles, in %
25%
8%
33%
13%
2%
8%
4%
1%
6%
Investment articles Purchase of the land and Notary fees
Business concept, Financial investment Project, Projection, Technical
supervision of construction, Engineer cost, Construction license and
Construction insurance
Earthworks, Construction of a building
FF&E
Other expenses of the investment period
Working Cap
Project Management
Operating license
Payroll fund for 3 months

14. Financing
Financing sources and terms

15. Investment Ratios
Indicators of the investment efficiency

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