Riga, Latvia based company operating 7 200 sqm/180 rooms/350 beds hostel is planning total rooms renovation and refurbishment including new room furniture, efficient LED lighting, all-building up-to-date Wi-Fi, new kitchens, shower and toilets.
Presently they are finalizing the renovation of the first floor and have done the full clean up and waste removal on the second and third floors from the first collected 200,000 EUR on Crowdestor from the project “The LakeHouse Hostel”, so the last two floors are prepared for further works.
Today they are happy to report their success and to share the outline plan till the end of 2020 including the opening of the second round financing of 450,000 EUR for 12 months’ period. The loan will carry a 15% annual interest rate paid monthly.
Minimum target: EUR 100 000,00.
Maximum target: EUR 450 000,00.
Loan term: 12 months.
Interest rate: 15 % per annum.
Interest payments: paid monthly.
Loan repayment: In full at the end of the Loan Term.
Crowdestor BuyBack fund: Yes.
Collateral: The loan is secured by a guarantee of the borrower company and company owner.
Remember - interest rate payments start calculating from the day you make your investment!
By now, we have finalized the architectural renovation project and are ready to submit it for approval. As the renovation project does not touch any major walls, the renovation and building works have already begun in May. Given the size of the building the best decision was to move in stages, i.e. floor by floor. Presently we are finalizing the renovation of the first floor and have done the full clean up and waste removal on the second and third floors, so those are prepared for further works. At this stage the team has the clear vision on the scope of the renovation that will include the following: replacement of all doors, new electrical and heating systems including LED lamps and heaters, thermal insulation of the inner side of the outer walls, 16 new showers instead of six old broken ones, new fittings for kitchens, new furniture in all rooms.
Our team has created and fitted The Domo Room. Please find the visuals along the presentation. What is more, you can check out a short video of the outstanding lake shore location and building view.
The website of the project is being developed and will soon start its work. We are preparing a launch marketing campaign and have set a budget for online marketing.
The primary target client of the project remains the same: a foreign worker in Riga, regional work migration to the capital of the country, students, and business travelers.
For more detailed information we present the cashflow facts and forecast from the beginning of the project in May, 2019 until the end of the project in December, 2020. The plan is to launch the first floor into operation in September, 2019. The third floor in its turn will be launched into operation not later than in January, 2020. The replacement of Crowdestor by bank financing will happen as soon as the project starts generating the first cash flow.
[video width="4096" height="2160" mp4="https://crowdestor.com/wp-content/uploads/2019/07/VIESNĪCA_1.mp4"][/video]
The Borrower - SIA SPADE is an active company incorporated in 2007. Annual turnover in 2018 was 220 000 EUR, the company equity is 195 000 EUR.
Three months have passed since our their team has collected the first 200,000 EUR on Crowdestor and started the project called The LakeHouse Hostel (Riga, Kisezers). Today they are happy to report their success and to share the outline plan till the end of 2020 including the opening of the second-round financing for 450,000 EUR.
Since Latvia join EU in 2004, it is experiencing continuous migration of workforce to more developed EU members. The last global economical crises had added greatly to that. The blue-collar workers are in great demand in Riga, but salaries are not that appealing so to bring those needed back from the UK, Ireland or Norway to Latvia.
Latvian government estimates that there are 35 000 vacancies that cannot be filled, the private sector estimates this number to be double at least. In 2014 there were around 3000 working permits issued by Latvia to non-EU residents, in 2018 it was 18 000. The two-digit growth continues in 2019.
All these people need to find some living space in Riga. Usual apartment rent is too expensive and often refused to unknown foreigners. Our hostel offers a low-budget/long-term accommodation solution for this growing demand.
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