About My Client - Canada's #1 Extended Stay Provider
The most recognized and trusted name in the industry, my client provides a comfortable, affordable alternative to conventional hotels for executives that are relocating, traveling on temporary assignment or training programs for extended stays (30 days or more). With revenues approaching $30 million, My client is the only coast-to-coast provider of four star extended stay accommodations in Canada. Demand for my client's product is evidenced by its explosive growth. Revenues have grown at an average annual rate of more than 40%.
The properties are comfortable, elegant and carefully selected to make their guests feel at home. They are typically located in up-scale residential areas near entertainment, shopping, transportation and close to major business districts. By offering biweekly housekeeping they are able to personally inspect each of the properties in their portfolio and immediately address maintenance issues when repairs are required.
They work with landlords to acquire these properties in one of two ways: Traditional Lease or Furnished Accommodations Agreement.
Under the Traditional Lease Program, my client signs a lease agreement with a landlord for a fixed term. They then furnish the property to our four-star standard and sub-let the furnished accommodation to executives for a shorter term (generally 30 days or more). Travelling executives are AAA tenants and landlords come to appreciate their relationship with my client. Landlords that work with them under the traditional lease program benefit from a steady income stream in a care-free relationship as my client is inspecting and maintaining the property regularly.
Furnished Accommodations Agreement
For those landlords looking for greater returns and willing to take on more risk, my client will enter onto a Furnished Accommodations Agreement. The landlords my client works with under this agreement furnish their suites to a four-star standard. The agreement takes the form of a master commercial lease. They then sublet the property for a term of thirty days or more to travelling executives under a reservation agreement. The financial arrangement between my client and our landlords typically takes the form of revenue sharing in favor of the landlord at 70%. Under this agreement the landlord is paid when the property is occupied. Premiere's national average monthly rate is $3,150. Under the Furnished Accommodations Agreement, the landlord would be paid 70% or $2,205 for the month.
If you wold like additional information regarding investment opportunities with my client, please contact me.