Rental Comparison
The table below shows typical room rates for 5 Star accommodation in St Lucia with prices quoted in sterling:
| Accommodation | Current Price per night** |
| Hotel Studio | £130 |
| 1 Bed Apartment | £180 |
| 2 Bed Apartment | £250 |
- Based on a studio apartment priced at £95,000 with a 10% Rental Guarantee you would receive £9,500 per year for the first 2 years
- Thereafter, a 50:50 split of the net room rate shared with the hotel.
- Lets's assume a conservative room rate of £130 per studio per night
If we also assume a conservative occupancy rate of 65%* the rent receivable would be as follows:
£130 x 365 x 65% = £30,800
£30,800 split 50:50 with the hotel provides a gross income for the investor of:
£15,400 per annum
If you were to do the same calculation for a 1 bedroom and a 2 bedroom apartment the figures would be as follows:
| Rent per annum | Gross Yield per annum*** | |
| Hotel Studio purchased at £95,000 | £15,400 | 16.21% |
| 1 bed apartment purchase price £125,000 | £21,300 | 17.04% |
| 2 bed apartment purchase price £150,000 | £29,650 | 19.77% |
With gross yields from buy to let investments in the UK averaging around 5% per annum the conservative figures above really do make interesting reading!
* The average occupancy rate for similar developments in St Lucia is believed to be 80 to 85%.
** Figures quoted at current room rates, which we fully expect to increase over the development period.
*** Note: the gross yield figures do not allow for the rolled up interest on the stage payments and deposit (if chosen).
