B&B, Boutique for Sale and Rent in 480 Jalisco Esq. I. Ramirez, La Paz, B.c.s, Mexico

La Paz Boutique Hotel -- Beautiful Business -- Reduced!

HOTEL LA CASA JALISCO
LA PAZ, BCS, MEXICO
August 2005

This property is now fully developed and financially successful, and the Developer/Owners plan to proceed to their next project. If necessary, Owners will provide management consultation for a month to ease transition. It may be possible to structure financing or an earned interest program for percentage ownership above 60%, but the initial 60% must be cash. Of course, 100% is preferred.

Owners will pay for travel and lodging of legitimate prospective partners/buyers to La Paz for inspection of the business via credits against negotiated acquisition price.

This luxury-class hotel has successfully captured a high-quality niche market among Mexican business travelers, traveling groups and international tourists. La Casa Jalisco enjoyed the highest occupancy load factor (70%) in La Paz in 2004, and it is expected to increase further, to near 80% in 2005. Private events and swimming/garden parties are marketed to local and regional customers, and in combination, its several businesses are providing growing and diversified income streams.

For the investor, Hotel La Casa Jalisco represents (i) a great, fun-filled project for the retired couple, (ii) an increase in foreign content and portfolio diversification, (iii) a solid foundational business with very high potential due to its high quality client list, and (iv) either hands-on or arm chair management options.

The owner is the American-owned Mexican corporation, CEI Corp SA de CV. The hotel is sited on a 30 X 50 meter lot at the intersection of Jalisco and I. Ramirez streets, both of which are paved main traffic arteries for the city of La Paz. The airport is 10 minutes away: downtown La Paz, five minutes. Beaches are 5 to 40 minutes’ travel. All possible on-water activities in the Sea of Cortez are available via the hotel's concierge services.

The hotel features 10 rooms. With its varying bed sizes and configuration, up to 30 guests can be accommodated (more with roll-a-ways). Two of the rooms are quickly convertible to conference or spa/exercise spaces. The bathrooms are large and modern; the rooms are fitted with custom furniture, stylish appointments, top-of–the-line mattresses and warm décor using colors from the beautiful art of Diego Rivera. The pool is unmatched in La Paz, having a diving board and being deep enough for SCUBA lessons. The adjoining garden area, the site for special events such as weddings, graduations and 15-year parties, is adorned with cool grass and studded with coconut palms and a small golf putting green. Secure, off-street parking is provided. The hotel has a fully-equipped restaurant with a commercial kitchen dedicated solely to hotel guests.

The business traveler is a superior client for several reasons. They come to La Paz to conduct meetings and negotiations with their counterparts or the government. (La Paz is the county seat, the state capital and the second largest city in the Baja with over 240,000 residents.) This class of client pays its bills timely -- the hotel has zero collectables. He/she is away from the hotel all day, does not bring children and pets and is respectful of the quality furnishings in the hotel. This client appreciates the free continental breakfast available in the restaurant area, and requires no additional food service.

Some of the hotel’s major corporate clients are: AeroMexico, AeroCalifornia, CostCo, Soriana's, Nevada Chemicals, CCC, Aliser, Aquila, Coca Cola, Philip Morris, Pacifico/Modelo, Pemex, City Club, Bol La Paz, Mary Kay, Telefonica MOVISTAR, Ford, Volkswagen, UNIPAZ, Frito Lay/Sabritas, TELMEX, UPN, CiciMar, Unipaz, Tecate, TELCEL, BBVA Bancomer, CableTec, Ley Stores and CEMEX.

The travelling group customer consists of corporate employees/executives, with and without spouses, desiring a several-day conference or seminar in a private and self-contained luxury facility. As well, numerous clubs, organizations, associations, companies providing fishing/diving trips as rewards for their employees, and large families gathering for weddings and anniversaries are attracted to this facility, as is any cohesive group with similar purposes desiring a unique setting. We recently began a series of immersion Spanish lessons for US teachers and real estate agents.

No similar facility exists in Baja California Sur, Mexico. Certainly, the larger hotels also welcome the group client: the distinctive difference in favor of La Casa Jalisco is that the entire property and all its amenities can be dedicated to the private use of the customer group. The functional advantage of this ability is that all occupants can be in the company of their friends and associates, rather than strangers. Also, other hotels are unable to demonstrate the flexibility of La Casa Jalisco in terms of pricing, room configuration and even off-site recreational activities. This latter point is due to La Casa Jalisco having no exclusive arrangements with any rental car agency, or tour or recreation provider; instead, numerous low-cost choices are available for the guest. Uniquely, the Hotel does not take a commission for these guest services.

As to advertising and publicity, the integrity and quality of the business at La Casa Jalisco is its own best advertising. In guest exit surveys, the hotel usually receives a "10" with cleanliness, comfort and competent staff most frequently cited.

Communication of the features and advantages of La Casa Jalisco is accomplished via the following elements of the current marketing program:
• An attractive web site -- -- enabling on-line reservations,
• A contract with GenaRes for custom emailing of special offerings to thousands of clients, as well as for enabling on-line reservations via Saber, Travelocity, Amadeus, Expedia, and Worldspan. The hotel also uses Orbitz, , webreservations and others.
• A position on the La Paz municipal web-site, .
• A unique color brochure, designed by the La Paz artist, Leonardo Diaz.
• A contract with Helms Brisco, the largest group travel arranger in the world.
• Printed flyers providing current information for constantly changing hotel and special events offerings.
• Canned press releases for immediate dissemination.
• Newspaper articles and ads placed periodically in newspapers and other publications in Mexico City, Gualalajara, Monterrey, Los Mochis, Culuiacan, Hermosillo and Tijuana, as well as San Diego, Phoenix and other southwestern U.S. publications.


Rates and Tariffs: The following "rack rates" are applicable for single or double occupancy:

Room Class Room Nos No. Beds Capacity om Rate

Standard 1, 5, 6, 9 1 ea. Queen or King 2 Persons $60 US
Executive 3,4,8,10 2 ea. Queen or Full 4 Persons $75
Luxury 2, 7 1 ea. King/ 2 persons $85

Totals 10 Rooms 14 Beds 30 Persons

The charge for each extra person is $20. Continental breakfasts are provided at no charge. Three days' notice is required for cancellation.

Discounts to $53 per are available to preferred corporate clients staying for extended periods. Management has recently initiated tariffs for monthly rentals, and two rooms are now in this program.

The hotel is available as a complete package for private use of related guests for $1200 per night. The entire property, including the pool area, restaurant and all services and amenities are included in this price.

In Baja California Sur, the applicable IVA tax is 10%: there is also a 2% hospitality tax levied to fund the Hotel/Restaurant Association in La Paz.

The other main source of income for the hotel is Special Events – graduations, weddings, 15-year debutante parties, family reunions, and the like. Each event, held on the spacious patio around the pool, produces a net income for the hotel of between $500 and $1000. At least two such events are scheduled in a typical summer weekend. Most are with local citizens, though there have been weddings from as far away as Guadalajara and Los Angeles, and fishing parties from Colorado.

Available in the hotel offices is a summary of the income and expenses for the property since its opening June 1, 2002. Profits were booked from the very beginning, though income sources have shifted month-to-month. This hotel is less subject to seasonal variances than are other hotels dependant upon tourism, which is why La Casa Jalisco enjoys the highest occupancy load factor in La Paz.

The Hotel is managed by the Mexican corporation, Casa Jalisco Mexico S de R L de C V. As the permanent staff of this young business is trained and assumes more direct responsibility, there is a real consciousness of the economic dangers of over-staffing. This is because in Mexico the labor laws are very much in favor of the employee. Increasingly, the management of La Casa Jalisco uses services contracts. A great degree of flexibility is gained by this approach, and overall labor costs are reduced. The manager lives on-site.

The weekly payroll is approximately $700 U.S. Two additional persons work exclusively on Special Events on their own schedules. Their pay is commission only (5-10%).

Office “equipment” consists of a desk-top and two laptop computers with state-of-the-art programs and systems. They are connected via an internal network, through which Internet access is gained using DSL with TelMex. Credit card charges (AmEx, Visa and Mastercard) are made using the VeriSign and Merchant e-Solutions world-wide electronic networks on the computers – there are no “swipe” machines. Credit card services are important to a certain client group, but overall, the business is about 70% cash-based.

The business is supported by high-quality local attorneys (Eduardo Gurgo) and accountants (Arnaut Castro).

The experienced Management Company can ensure trouble-free changeover and continuing operation by competent staff members.

Contact the Owner via email at culebra444@ for more details.

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