Sustainable Investment Opportunity For Stunning Green Hotel/Villa Hospitality Development Business in Bali, Indonesia
Location: The Aura House, their first project is at Ayung River gorge, 30 minutes South of Ubud, Bali, Indonesia. The company’s offices are in Singapore
Name: Guadua Pte, owners of Aura House Balia with plans for much more
Guide Price: Investment Required: US$5m – $10m
To Develop:
Hospitality / Villas Ownership : Ownership of 6 new flagship houses within 10 years (each in new locations)
Hospitality / Booking Services: Build a team, and provide this service to up to 850 properties in Bali, and in Asia/Europe within 10 years
Property development: The plan is to build and sell 100 properties within 10 years. This will also feed the booking services activity.
Media & Digital Services : Build a team specialized in digital marketing for the hospitality industry, create an affiliated program, generate revenues from their media activity, and support our other activities through content creation.
The Opportunity:
Two French partners, Damien Fleurance and Julien Vilaine, set up this 32-Key hotel/concept, spli into 11 Villas, in 2018/19 and have their first project off the ground – literally! eco-friendly doesn’t even touch this, in the flagship, and most popular, house (as pictured above).
Each and every guest coming to Aura house can enjoy the following:
2 bedrooms with en-suite bathroom and air conditioning. Both beds are king size and can accommodate 4 adults or 2 adults and 3 children
Wifi
Complimentary breakfast on the first day of your stay
A fully equipped kitchen with utensil provided, coffee and tea
A private pool overlooking the forest
Daily cleaning
24/7 security
Parking
Every house is different but stunning in its own way. One of the houses, Sharma Springs, has been recently features on Apple TV to millions of viewers.
Other available services are massage, room service, transportation services, and bamboo related workshops and tours. We were wowed by the concept when we wrote about them in November 2020.
Their success is based on several factors & activities: Designer architecture, strong digital communication, sustainability, flexible hospitality model – with ownership and booking services.
Aura House has gone viral across multiple media channels thanks to it’s designs combined to an efficient marketing & communication strategy. They have had more than 300 million views across all media channels, and are one of the most popular sustainable hospitality brand in Bali.
They are now looking to expand our activity worldwide, across our three revenue channels, by raising $5M USD against equity in Guadua PTE, with a financial forecast of 19% IRR over a 10-year period.
They say “Aura House is much more than a classic hospitality company. We started Aura House, building designer houses and promoting them using strong digital social marketing, across all media channels (Instagram, TikTok, Apple TV etc). The objective is to boost our revenues streams across all activities (for a very low marketing budget). We then understood this approach is also very valuable for others in the hospitality industry, who mostly lack skills in doing so. This is why we are now offering this as a service: combining rental & digital social marketing services.
Our objective is to build a diversified business model, creating synergies between our three activities: hospitality, media & digital services – hospitality & travel-focused and property development.”
The current architect used by Aura House is a world-renowned architect team called IBUKU – however they do not restrict themselves to one architect. They are always looking for new designs & concepts.
IBUKU is a world renowned team of designers, architects and engineers ground-breaking exploring ways of using bamboo to build homes, hotels, schools, and event spaces in Bali, Indonesia. Ibuku has built over 60 bamboo structures in Bali, Indonesia, and around the region.
Completed key projects include the Green School, Green Village (18 villas), Sharma Springs and Bambu Indah Hotel, which have appeared in international publications like Architectural Digest, Vogue, TedTalk, Apple TV, and the Huffington Post. Upcoming projects are underway in West Africa, Lombok, and Bali.
Guadua Pte, the vehicle looking for the investment, currently operates the following activities :
Hospitality/villas ownership: ownership of the flagship house Aura.
Hospitality/booking services: Provides this services to 10 other sustainable houses, from 1 to 5 bedrooms – from 150 USD to 1250 USD per night.
Media & Digital Services: Aura House has built strong communication channels gathering a community of 100K followers across all social media. We do not charge for this service at the moment. We use this as a relay of communication for our all activities. Our houses have been featured on Apple TV+, TED, CondeNast, Instagram, TikTok, ELLE, ArchiDaily, etc… generating more than 300m views across all channels.
Property development: We have just launched the development of 5 new houses in Green Village, Bali (5x 2 bedrooms). We intend to sell them after completion, but keep the management of the rentals.
Post-Covid the prospects for 2022 are looking strong
Strong revenues YoY despite Covid:
Bali reopened in April 2022.
Strong recovery: More than 330K USD of bookings (sales) in the portfolio for 2022-2023 generated in 2 months. Some houses are fully booked 8 months ahead
Revenues supported by continuous marketing campaign
Set up across multiple channels: Direct booking, Airbnb, Booking.com
Cross-selling with additional services
The property development project is expected to generate revenues from 2023 onwards
The full IM is available from THPT
Flag & Management: By the current owners
Current Owners: Guadua Pte – Damien Fleurance – background in Finance in London; and Julien Vilaine – background in finance – London, Singpaore and Geneva
Main Photo: The fab three-storey Villa at Aura
Financials: IM
Agent: THPT are direct with Guadua Pte
Date Posted: June 2022
THPT Comment: Fab opportunity to get involved with these two enterprising and vibrant duo, with some great sustainable concepts. A natural for a private investor that likes their ideas and ideals
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