INVEST
€ 10 180
raised
€ 20 000
goal
12.00%
rate
24 MONTHS
duration
Cash-flow
project type
Monthly
% distribution
Commercial pledge
collateral
Digitus SIA
borrower
10
days left
€ 16 000
MIN amount
Overall risk level
A
B
Financial health
A
Management
A
Company’s record
CALCULATOR
LOAN AMOUNT
RETURN
+
INTEREST
%
DURATION
M
Solar panel installation in Guest house Garoza
Solar panel installation in Guest house Garoza

Guest house Garoza is located 100m from the sea (the Gulf of Riga) and 70km from Riga. It has 11 rooms with bathrooms for 23 people with possibility to create extra 20 bed spaces. There is possibility to organise celebrations for up to 70 guests. Guest house was refurbished during last winter and is open for guests. Due to the plan to become more sustainable and leave the least possible carbon footprint the Guest house will put a solar panels on the roof.





INVEST
€ 10 180
raised
€ 20 000
goal
12.00%
rate
24 MONTHS
duration
Cash-flow
project type
Instantly
% distribution
Commercial pledge
collateral
Digitus SIA
borrower
10
days left
€ 100
MIN amount
Overall risk level
A
B
Financial health
A
Management
A
Company’s record
learn more how we grade our projects


ANALYST SUMMARY

We evaluate the Company with a grade A – company have stable financials, growing turnover and decreasing operational expenses. Company has enthusiastic and determined owners, who co-finance Guest house refurbishment. We believe that the Company would be able to repay principal and interest according to the schedule also in the future

GENERAL INFORMATION

·  The Company established in 05.12.2008,

·  Owners of the Company have more than 20 years of experience in real estate and hospitality,

·  In 2020 came new investor and the Guest house was fully redesigned and refurbished. Now it can accommodate more guests and is more stylish.

·  In 2021 the ownersbuilt a sauna house,

·  Price for a room range from EUR 130 to EUR 270 for a double room,

·  Guest house Garoza is only place in a neighbourhood that offer rooms for accommodation,

·  There are available rooms with double bed, luxury room, rooms with a view to the garden and sea, room with a terrace, family room and double room. It has a tiny house available for accommodation as well

·  Guest house Garoza is located 5km from highway "Via Baltica" (route E67), and 100m from sea.

SWOT ANALYSIS
STRENGHTS
- Low price for 1 night accommodation
- Only 3min walk to the sea
- Possibility to create celebrations for up to 50 people
- Cosy atmosphere and friendly service, unique design
- Outdoor kitchen, campfire place, hot tub, children playground
- Variety of rooms to choose
WEAKNESSES
- Not directly located next to the sea
Competition to other accommodation opportunities
- Gravel road to reach the guest house
OPPORTUNITIES
- Not far from Estonian border or Riga - the capital of Latvia, thus attracting Estonian travellers
- Increase of local tourism, thus more locals interested in accommodation opportunities in Latvia
- Beautiful coast of the sea and surrounding environment
- Organising events to attract guests to the Guest house
THREATS
- Rivals opening guest house in a close neighbourhood
- Change in tourists’ preferences, needs and tastes


COMPANY’S FINANCIALS
Until 2019 the Company demonstrated a stable turnover and was EUR 240th on average, the Gross margin was 35% and Net margin 18%. In 2021 the turnover continued to decline due to Covid-19 and closure of the Guest house during renovation.  However, based on operational data provided, the turnover during 9M 2022 has exceeded the turnover of 9M 2019 and most probably will exceed EUR 250th in 2022
OUTLOOK OF LATVIA

Travel and tourism industry direct contribution to the world economy is around 10%. Until tourism industry was hit by Covid-19 crisis, it grew for more than 10 years.

In Latvia tourism industry does not have less contribution to economy compared to other countries, for example, Spain, Italy, France or UK. However, since 2009 when travel and tourism industry experienced dip due to Financial crisis, tourism in Latvia has been growing more than in World on average.
The guest housing business depend on domestic and international travel that last more than 1 day. In 2020 tourism industry took a hit due to restrictions with an aim to limit Covid-19 spread. However, despite restrictions the number of Latvian guests in hotels and guest houses did not drop dramatically and in 2021 started to recover. In 2022 the tourism has almost recovered.

Based on the statistics foreign travellers are vising Latvia more often, but activity of Latvian travellers is declining, especially for those who choose travel in Latvia. In 2019 majority of foreign travellers were Lithuanians and Estonians (34,5 and 18% respectively). Increase of guests (2010 - 2019) in Latvian hotels and other tourists accommodation represents overall development of Latvian tourism industry.

Now there is no restrictions to travel and tourism industry is almost reaching pre-covid levels. But citizens are more conservative about their travelling habits due to geopolitical situation and forecasted energy crisis. Nevertheless, in summer 2023 the tourism should continue to increase and travel industry (including accommodation services) to grow.  

DOCUMENTS