A clear understanding of potential returns and the factors influencing them is paramount for any real estate investment. At Kan Tulum, we believe in providing a transparent and realistic perspective grounded in our unique operational model and strategic market positioning.
ROI Projections in Context
Our financial models estimate potential net Return on Investment (ROI) for Kan Tulum residences ranging broadly from 5% to 20%, highly dependent on achieved annual occupancy rates (projections often shown for 30% up to 90% scenarios). While the Tulum market often sees optimistic forecasts (sometimes 8-15%+ quoted, often based on gross figures or unrealistic assumptions), achieving consistent double-digit net returns requires exceptional performance. Market analyses suggest realistic net ROI for well-managed Tulum properties might start around 4-5%, potentially growing towards 6-9% after stabilization.
Kan Tulum's strategy aims to outperform market averages within our projected range, focusing not just on potential highs, but on achieving reliability and optimized performance through tangible advantages.
Key Drivers of Financial Performance at Kan Tulum
- Premium Niche Targeting: Focusing on the luxury wellness and sustainability segment attracts discerning travelers often willing to pay premium rates, supporting higher ADR potential compared to the saturated standard market.
- Unique Asset Value: Exclusive features like the private natural cenote, integrated spa, and high-quality design create significant desirability, enhancing rental appeal, justifying premium pricing, and contributing to more stable occupancy.
- Operational Excellence & Efficiency: Our proven 5-star hotel management leverages professional marketing reach, sophisticated revenue management, high guest service standards (leading to better reviews and repeat visits), and efficient operations to optimize income and control costs.
Understanding Costs & Net Returns
Net ROI is calculated after deducting all relevant operating expenses from the gross rental income generated. Key factors influencing your net return include:
- Rental Management Fees: Fees associated with our comprehensive hotel management service, covering marketing, operations, guest services, and administration.
- HOA Fees: Monthly contributions covering the maintenance of common areas, shared amenities (pools, gym, security), landscaping, and potentially some utilities.
- Property Taxes (Predial): Annual municipal tax, historically very low in Quintana Roo (often around 0.1% of cadastral value).
- Utilities: Costs for electricity, water, internet consumed within the unit (allocation depends on rental agreement specifics).
- Fideicomiso Fees: Annual bank trust fees for foreign owners.
- Maintenance & Reserves: Accounting for routine upkeep within the unit and potential reserves for future furniture/fixture replacement (FF&E).
We provide detailed financial projections outlining anticipated income and expenses during the consultation process.
Long-Term Capital Appreciation
Beyond rental income, Tulum's growth trajectory, enhanced by infrastructure improvements, suggests continued potential for long-term capital appreciation. Investing in a high-quality, well-managed, uniquely positioned asset like Kan Tulum aims to maximize this potential future value.
Our focus is on providing a superior investment vehicle that balances strong return potential with operational reliability and long-term value preservation.