Translating revenue streams into tangible returns, our appraisal calculates an annual contract value by multiplying the average monthly revenue by 12 and applying the reliability factor. Against a 6 billion IDR investment, this yields a pre-tax ROI of 4.61%, offering a clear benchmark for investor expectations.
Expense transparency bolsters confidence in this investment ROI. Fixed costs—covering routine maintenance, insurance, and management fees—persist regardless of booking volume. Variable costs scale directly with guest nights, encompassing utilities, consumables, and turnover cleaning. This bifurcated approach ensures that net profit estimates remain rooted in real-world operations.
Finally, the ROI framework empowers side-by-side assessments: even properties within the same Ungasan enclave can diverge substantially in returns based on design nuances, management quality, and amenity mix. By anchoring decisions in a disciplined, data-driven property appraisal, investors can target optimal investment ROI outcomes with precision.