HORNBY ISLAND RESORT VACATION SUITES
PRO-FORMA REVENUE AND EXPENSES
$
RENTAL REVENUE 105,000
OPERATING EXPENSES – 38% 40,000
NET INCOME 65,000
LIST PRICE (includes $ 35,000 furniture package) 1,050,000
CAPITALIZATION RATE 6.2%
Notes:
1. Saratoga Beach House, at Saratoga Beach, 2 bedroom units of approx. the same size, 1,000 sq.ft., are
currently listed for $ 725 per day in the summer, up to $ 825 on long weekends, and $ 350 in off season.
2. Parksville Beach Club, 1 bedroom hotel units, no kitchen, rent for $ 389, or $ 778 to get 2 bedrooms.
3. Glamping tents on Hornby Island, 2 person, no bathroom, no kitchen, no security, rent for $ 240 – 260 in
summer.
4. Using $ 600 as a conservative summer rent, 16 weeks x 7 days x $ 600 = $ 67,200
This assumes 100% occupany which is normally the case on Hornby Island.
Destination BC average occupancy rates for the North Island, first 5 months of 2023 was 58.42 %.
This is 18 days per month. Using a conservative 12 days , (4 – 3 day weekends) at $ 350 per day,
revenue is 36 weeks x 3 days x $ 350 = 37,800.
5. Expenses such as property taxes, utilities, strata fees, etc. run an average of 38%.
This includes management of 20%. Housekeeping is recoverd by a charge on top of the daily rent.
Summer season is minimum 1 week at a time.
6. These units are not part of the 5 month vacation rental restriction currently in place on Hornby Island.
7. Participation in the Vacation Rental Management Program is required and includes a
furniture and fixtures package estimated at $ 35,000.