Exit Strategy

Exit Strategy

Solid Exit Strategy (SES): Key features

  • Deposit protection – deposit protected investment, invest with peace of mind knowing your investment is only drawn against in 4 stages and the monies employed are only used and supported with invoices for items purchased for the chosen venue
    • 20% annual returns – relax knowing your SES investment returns are contractual and you are the first to be paid from the venue income (after all Legal requirements are met).

 

  • Defined exit strategybe confident the Hostel business and the fixture & fitting, will be worth greater than the sum invested via the following options of disposal:
    1. The original investment can be sold on to the partial franchise.

 

    1. It can be sold to another investor who is looking for a solid returns record.

 

    1. If the venue is managed directly the existing manager in situe may also be happy to purchase your original investment

 

    1. As the Asia hostel market becomes more mature (there expected to be 1.5 billion people from this region in the next 10 years who fall within our likely guest category) larger Hotel companies will be looking to secure hostel units at prime locations. With very few to no existing competitors, we may receive attractive offers to be bought over by larger hoteliers, offering another attractive and profitable exit possibility.

 

  1. Sell the investment back to Asia BackPackers.
    • Hedge against slow rate of sale and market decline – don’t panic if the market stagnates. Asia BackPackers must resell or repurchase your investment within a maximum 24 – 36 month period and assume any difference between purchase and resale price. With the SES your original invest monies is always maintained

 

    • Low capital outlay – don’t feel out of your depth. You are only required to commit between 1 – 2 million Baht of the actual proposed venue.

 

    • Minimal associated risks – Our investors are not alone, Asia BackPackers and any Partial Paid franchisee are also at risk in the capital they have invested along with the time (time is money) and effort we put into each and every venue. The investor is also paid their returns each quarter ahead of our royalty payments and therefore it is in our interest, that all venues achieve high level of returns.

 

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