Chapter 403: Property Ownership Hotel

Just as Su Jie finished speaking, before Chen Jianhai could respond, Su Jie denied his own suggestion.

"If you lease land from real estate developers to build a hotel, the property rights last only 40 years. In the long run, it's too passive. It's more reassuring to buy the land and build the hotel yourself."

Chen Jianhai sighed, "You're right, but negotiating to buy the land will be quite costly for me."

Su Jie asked, "How big do you plan to make this hotel?"

Chen Jianhai replied gloomily, "I haven't decided yet, but as big as possible, the bigger, the better."

After all, the system's task was to expand the land area without specifying how much. He worried that if he didn't expand enough, it might not meet the system's requirements.

However, his current cash flow was very limited.

Even if Zaomen city agreed to sell him the land, raising the necessary funds would be a major challenge.

And besides the funds, the most difficult part was the points.

Building a small island hotel had cost him nearly 80,000 points.

Now, he only had 31,987 points, which wasn't enough for anything substantial.

In short, it was tough!

After a long silence, Su Jie asked, "Boss Chen, have you considered the route of a property ownership hotel?"

Chen Jianhai was puzzled, "What is a property ownership hotel?"

Su Jie explained, "A property ownership hotel means that each room in your hotel has its own independent property rights. You can sell the property rights of the rooms like you would sell real estate."

"This way, investors buy your hotel rooms as an investment, similar to purchasing a house."

"For example, if you sell a room for 300,000 yuan, the investor can stay there for 21 days a year. Moreover, they can stay in any hotel under the Langai Hotel brand, and at the end of the year, they receive a share of the hotel's profits."

"Of course, this is just an example. Before the year 2000, it was 300,000 yuan; now, it's certainly more."

"This way, even if your hotel is still in the planning stage, you can recover the funds and quickly raise capital."

Chen Jianhai looked at Su Jie, bewildered. Apart from the last part about recovering funds while the hotel was still in the planning stage, he didn't understand anything.

"Brother Su, I don't get it. If I'm an investor, does spending 300,000 yuan mean I can only stay for 21 days a year?" Chen Jianhai asked in confusion.

"If 300,000 yuan is the cost per year, isn't that too expensive? Over 10,000 yuan a day—who would want to stay there?"

After all, his most expensive room, the water villa at the island hotel, was 9,999 yuan a night.

No matter how impressive the Magic Century Theme Park was, it wouldn't warrant someone spending 10,000 yuan a night!

Su Jie rolled his eyes and, feeling exasperated, said, "Boss Chen, sometimes I wonder how you became a big boss with this kind of thinking!"

"The 300,000 yuan isn't for one year; as long as your hotel exists, investors can keep staying there. And they can stay for 21 days a year for free. Beyond 21 days, they have to pay the cost price to continue staying."

"For easy management, you can implement a point system. Each owner gets 21 points a year. During peak times like Chinese New Year, points are tripled; during off-peak times, it's 0.5-0.7 points; normally, it's 1 point per room per night with breakfast included."

"If the hotel is ever demolished and rebuilt, you can repurchase the rooms at market price."

"After all, once the hotel is gone, the investment rights are gone too. It's just an investment product."

Chen Jianhai was still confused but understood the point system part.

Thinking it over, he asked, "What about the profit sharing? Is it from the room or total revenue?"

Su Jie explained, "It's from the room revenue. For example, if your hotel has 120 rooms and annual room revenue is 12 million yuan, averaging 100,000 yuan per room, the profit share is 5%, which is 5,000 yuan per room."

"For you, it means recovering funds during construction."

"For the owner, it's commercial real estate with a property certificate. They can't rent it out, but they can sell, mortgage, get a loan, receive annual dividends of a few thousand to tens of thousands of yuan, and stay 20 days to a month for free."

"It's a win-win situation. Would you consider it?"

...

Leaving Su Jie's office, Chen Jianhai boarded bus route 63 along the coastal road and started searching for information on "property ownership hotels" on his phone.

Fortunately, Su Jie had patiently explained it in simple terms; otherwise, the technical terms alone would have been challenging.

"Looking at it this way, a property ownership hotel seems quite attractive..." Chen Jianhai thought, becoming interested.

He could sell the rooms at a low price to his employees as a benefit, providing them with an extra bonus at the end of the year.

"Ding!"

"System patch repair completed. Please open the system panel."

Suddenly, a familiar cold voice rang in his mind.

Chen Jianhai was stunned, "System patch repair? The system can have patches?"

He quickly opened the system panel.

The familiar sky-blue interface appeared, with a small red-dot envelope flashing in the bottom right corner, waiting to be opened.

Chen Jianhai opened the envelope, and a simple dialog box popped up on the system screen:

"After matching with the host's real situation, to ensure better completion of the Luxury Star Hotel construction task, an emergency system repair was performed at 19:24 on March 15, 2022, as follows:"

"Due to the host's current financial incapacity to support the high land prices for the task of expanding the hotel's land area, the system will automatically cover the related costs."

Chen Jianhai: ?!?!?

Chen Jianhai's eyes widened as he carefully reread the last sentence.

"System automatically covers related costs? Does that mean the system will pay for the land, and I only need to handle the preliminary negotiations?"

Chen Jianhai was thrilled!

What he lacked most now was money!

Su Jie had suggested various options like finding real estate developers and property ownership hotels, all because of the lack of money!

If the system could cover the land purchase costs, he could proceed without financial constraints.

"Just as well, I didn't get a chance to open the points redemption package with Xiao Lang last time. Now I can see if there are any good items!"

Excited, Chen Jianhai opened the system—Personal—Backpack.

He selected the golden edition Zaomen exclusive city points redemption package and opened it.

"Ding!"

"Congratulations to the host for obtaining 200,000 points."