Gross is not net
A two-bedroom unit in Bonapriso at XAF 185,000 a night looks like XAF 5.5m a month. It is not. At a realistic 62% occupancy it is XAF 3.4m, and housekeeping, linen, utilities including generator fuel, platform commission, maintenance reserve and management fee take roughly 38% of that in our operated portfolio.
The worked example
Gross at 62% occupancy: XAF 3,441,000. Housekeeping and linen: 410,000. Utilities and fuel: 285,000. Platform and payment fees: 240,000. Maintenance reserve: 170,000. Management at 22%: 757,000. Net to owner: approximately XAF 1,579,000 per month before tax — against roughly XAF 950,000 achievable on a conventional annual lease for the same unit.
The spread is real, but it is operational income, not passive income. It disappears the moment occupancy management stops.
Need this applied to a real deal?
Send us the asset and we will tell you, plainly, whether it holds up.
Talk to a partner