Save up to 8 x compared average hotel construction.
"The average cost of building a hotel in the USA ranges from $8 to $20 million. Even building a house typically costs no less than $3 million. However, building a 10-barrel house will cost you approximately $1 to $1.5 million.
Start hotel business with lower investment
You may need to invest approximately $20 million to start a hotel business. However, barrel lodges offer a cost-effective (starting from $92000 for each) yet premium alternative, with cozy barrels sure to amaze your visitors and enhance your hotel's appeal.
Generate around 60,000$ extra sales each month.
Depending on the occupancy rate of your accommodation, you can generate additional sales for your wine business. With an average occupancy rate of 20 days per month and a nightly rate of $300, there's significant revenue potential with 10 barrel hotel.
Why should you invest in Barrel hotels?
Wine tourism plays a crucial role for wineries, offering additional profits and opportunities to promote their products to visitors. Nearly all California wineries, at 99%, engage in wine tourism to explore new prospects.
Recent data from the Wine Institute (WI), drawing on the Destination Analyst Inc.'s State of the American Traveler (DA) survey, indicates that California wineries attract around 23 million visitors annually.
In Napa Valley, hotel prices within vineyards average between $200 and $450. However, with hotel construction costs averaging around $22 million, this option is often unaffordable for many wineries.
Sales to investment ratio is around 66%
Our proposal for developing accommodation involves an investment of around $92,000-$109,000 per barrel lodge. This represents an excellent investment opportunity for your wine business.
Sales to investment Ratio in this business will be around 66%.
More wine sales inside wine barrels
Additionally, visitors are likely to purchase more wine products during their stay in your Barrel Lodges.
Easy transportation and possibility to resale or carry another place.
Another benefit of barrel lodges is their resale value. These modular constructions are easily transportable and can be sold if needed.
​
In summary, compared to traditional hotel construction, barrel lodges offer a cost-effective and authentic alternative.
Occupancy | Price | Income per lodge (in USD) | # of Lodges build in winery | Total income per month | % of net profit | Profit in each month | 12 months profit | Total investment to 10 barrels | Extra in room sales each month | Min alternative investment to hotel construction | Savings |
|---|---|---|---|---|---|---|---|---|---|---|---|
25 | 300 | 7500 | 10 | 76,500 | 14.5% | $11,092 | $133,100 | $980,000 | 1500 | 7,000,000 | +6,020,000 |
20 | 300 | 6000 | 10 | 61,200 | 14.5% | $8,874 | $104,400 | $980,000 | 1200 | 7,000,000 | +6,020,000 |
15 | 300 | 4500 | 10 | 45,900 | 14.5% | $6,655 | $78,300 | $980,000 | 900 | 7,000,000 | +6,020,000 |