Investment · Underwriting
A PROFESSIONALLY UNDERWRITTEN PATH.
Forward-looking projections and assumptions for a fully renovated, seven-stay direct-oceanfront property. These are not historical operating results.
Investment snapshot · Projected
7
Oceanfront suites
36
Maximum guests
~$515K
Base-case stabilized annual room revenue
~54%
Base-case stabilized occupancy
~$241K
Projected stabilized NOI
~47%
Projected NOI margin
$425K–$610K
Projected stabilized annual room-revenue range
*Forward-looking projections based on current market conditions, seasonal pricing assumptions, anticipated occupancy, unit mix and projected operating expenses. Projections are estimates only, are subject to change, and are not guarantees of future performance. The property is newly renovated and these figures should not be represented as historical operating results.
Property · Unit mix
SEVEN ACCOMMODATIONS.
ONE OCEANFRONT ADDRESS.
Fully renovated direct-oceanfront boutique hospitality property with seven total accommodations and maximum capacity for 36 guests.
4 ×
One-Bedroom
- 419 sq ft
- 1BR / 1BA
- Sleeps 4
- King + Sofa Sleeper
2 ×
Two-Bedroom
- 720 sq ft
- 2BR / 2BA
- Sleeps 6
- King + 2 Twins + Sofa Sleeper
1 ×
Penthouse
- 1,139 sq ft interior
- 500+ sq ft private oceanfront terrace
- 3BR / 2BA
- Sleeps 8
- King + Queen + 2 Twins + Sofa Sleeper
- Private laundry room
Total maximum capacity · 36 guests
Base-case stabilized revenue · Projected
UNIT-LEVEL UNDERWRITING.
| Accommodation | Units | Annualized ADR | Revenue / unit | Combined revenue |
|---|---|---|---|---|
| One-bedroom suites | 4 units | ~$281 | ~$55,400 | ~$221,600 |
| Two-bedroom suites | 2 units | ~$415 | ~$81,800 | ~$163,700 |
| Penthouse | 1 unit | ~$657 | ~$129,600 | ~$129,600 |
| Total base-case stabilized room revenue | ~$515,000 | |||
These ADR figures are annualized underwriting averages, not fixed nightly rates. Actual nightly pricing is expected to fluctuate substantially with season, weekday versus weekend, local demand, holidays, booking lead time, property occupancy, remaining inventory, local events and length of stay.
Three-case underwriting · Projected
DOWNSIDE. BASE. UPSIDE.
The base case reflects management's current stabilized underwriting. The upside case is illustrative only and is not expected or guaranteed.
Downside case
- Projected annual room revenue
- ~$425,000
- Approximate stabilized occupancy
- ~49%
- Projected NOI
- ~$175,000
Softer-than-expected demand, lower realized ADR and/or higher operating costs.
Base case
- Projected annual room revenue
- ~$515,000
- Approximate stabilized occupancy
- ~54%
- Projected NOI
- ~$241,000
- Projected NOI margin
- ~47%
Management's current stabilized underwriting case.
Upside case
- Projected annual room revenue
- ~$610,000
- Approximate stabilized occupancy
- ~59%
- Projected NOI
- ~$300,000+
Assumes successful premium positioning, strong guest reviews, disciplined dynamic pricing, increased direct bookings, high peak-season rate capture and effective shoulder-season demand generation.
NOI is a property-level operating metric. It is not distributable cash flow, and no debt service, loan terms, distributions or investor-level returns are presented here.
Why the model works
SEVEN STAYS.
MULTIPLE DEMAND PROFILES.
The Dive Inn's unit mix allows the property to serve multiple segments of the Cherry Grove vacation market from a single oceanfront address.
Four one-bedroom suites provide inventory for couples and smaller families. Two two-bedroom, two-bath suites expand capacity for families and groups.
The three-bedroom Penthouse creates a premium product with sleeping capacity for eight and a 500+ sq ft private oceanfront terrace. Together, the seven accommodations can host up to 36 guests while remaining individually rentable.
Pricing strategy
PRICED FOR THE SEASON.
OPTIMIZED FOR THE NIGHT.
The financial model does not assume flat year-round pricing. Peak summer ADR is expected to materially exceed the annualized ADR, while shoulder and off-season pricing prioritizes profitable occupancy without positioning The Dive Inn as a discount accommodation.
- Peak summer demand
- Shoulder-season demand
- Weekends
- Holidays
- Local events
- Booking lead time
- Remaining inventory
- Property occupancy
- Length of stay
- Last-minute availability
Distribution
BUILDING A DIRECT-BOOKING ENGINE.
The long-term operating strategy emphasizes growing direct bookings. A larger direct share can reduce reliance on high-cost third-party distribution channels and strengthen guest relationships. No specific direct-booking percentage is claimed; actual mix will be reported once operating data exists.
- The Dive Inn website
- Repeat guests
- Email marketing
- Organic search
- AI and search discovery
- Social media
- Referral traffic
- Branded search
- Remarketing
Whole-property opportunity
TAKE OVER THE DIVE INN.
Seven suites. One oceanfront address. Room for up to 36. Whole-property bookings may help consolidate occupancy and create additional shoulder-season revenue opportunities.
No separate revenue has been added to the base-case underwriting for whole-property buyout premiums. This represents potential upside rather than revenue already embedded in the projections.
- Family reunions
- Wedding groups
- Surf trips
- Retreats
- Multigenerational vacations
- Friend groups
- Milestone celebrations
Potential ancillary revenue
NOT INCLUDED IN THE PROJECTIONS.
The ~$515,000 room-revenue projection contains no ancillary income. The following are potential future opportunities only and are excluded from projected NOI unless separately underwritten later.
- Pet fees
- Early check-in
- Late checkout
- Premium group packages
- Merchandise
- Other approved guest services
Financial information presented on this website includes forward-looking projections and assumptions prepared for illustrative purposes. Actual operating results may differ materially due to occupancy, nightly rates, seasonality, competition, economic conditions, operating expenses, weather, insurance costs, taxes, regulatory changes and other factors. Nothing presented constitutes a guarantee of future performance, an appraisal, investment advice, tax advice, legal advice, or an offer to sell securities.