The Hilton Garden Inn will be offering 100-150 rooms in each of the locations. These purpose-built, stylish, upscale rooms will all be appointed with King or Double Double bed and an additional sofa bed.
Each room will be large and luxurious, each laid out with meticulous attention to detail and benefiting from the best contemporary design in order to offer ultimate comfort.
Rooms are designed for both relaxation and productivity, catering for guests with any purpose. Features of each room include a sofa (in some rooms oversized lounge chair), large desk, an ergonomic desk chair, high-definition LCD Television and complimentary high-speed internet.
The total development cost of each hotel is estimated to be between $18m - $24m, depending on the location and size of the hotel.
Fee Investment Structure
Fees for managing the fund will be at commercial rates. It is intended that Investors in the Fund will not be charged entry or exit fees.
Hotel Development Group will charge a fee for developing and managing the operations of the hotels. The HDG fees are:
- 1.5% of the total development cost until opening; and
- $75,000 per hotel per annum to act as the owners' representative.
The Hospitality Group, under franchise to Hilton Garden Inn, will manage the hotel post opening and, again, their fees are below market average.
Third party costs related to the Fund will either be borne directly, or recharged, to the fund.
Returns to investors will comprise distributions from the unit trust and dividends from the company.
It is intended the units trusts will be taxed on a flow-through basis such that neither the Fund, nor the Trustee should be liable to Australian income tax in respect of the income of the Fund. Investors will bear Australian income tax on their share of the income of the Fund.
The company will be liable to Australian income tax on its taxable profits at 30% and will pay franked dividends to its investors.