Pool + wellness terrace. Total upgrade budget — $123K — recoverable in 1.8 years on base case.
01Rooftop terrace expansion + plunge pool$65K+$48 ADR2.1 yr
02Primary suite refresh + linens$22K+$22 ADR1.4 yr
03Outdoor kitchen / fire pit$28K+$18 ADR2.2 yr
04Pro photography + LRM staging$8K+8% occ0.6 yr
Upgrade summary
$123K
Total recommended capex
ADR uplift (Y2)
+$88 / night
Blended payback
1.8 years
§ 05
LRM management strategy
The four-phase operator playbook applied to every property on the platform.
PHASE 01
Acquisition
—Title clearance via Mexican notary
—Fideicomiso setup (60 days)
—Inventory + condition audit
PHASE 02
Stabilization
—LRM design refresh (90 days)
—Pro photo + 360° tour
—OTA listings + direct site live
PHASE 03
Operations
—24/7 guest concierge (bilingual)
—Dynamic pricing — adjusted weekly
—Quarterly owner reporting
PHASE 04
Optimization
—Annual ADR & occupancy review
—Upgrade ROI tracking
—Tax-efficient distribution planning
22%
LRM mgmt fee
4–6 wks
To first guest
47
Active LRM properties
18%
RevPAR vs. owner-op
§ 06
Risks & considerations
What could go wrong, and how we've underwritten around it.
RISK 01
Regulatory
SMA municipality is reviewing short-term rental licensing. We model 6% annual licensing/registration cost as a contingency, even though current law does not require it.
RISK 02
FX exposure
Owner P&L is reported in MXN. We hedge 50% of distributions via forward contracts; net peso volatility historically ±4% annualized on yields.
RISK 03
Concentration
A material portion of demand originates from US/Canada. We model a 12% revenue haircut in a recession scenario but historical SMA performance has decoupled from US metro markets.
RISK 04
Operator dependency
Property economics rely on LRM (or comparable) management. Owner-operator path is supported but reduces projected RevPAR by ~18%.
§ 07
Comparable transactions
Five trades within 1 km, last 12 months. First three shown — full set with addresses, brokers, and seller motivation in the gated package.
Subject · $/m²
$3,333
List basis
Cohort median · $/m²
$3,533
5 trades, 12 mo
Variance to median
−5.7%
Subject below comps
Days on market · avg
42
Cohort, off-market
RefAddressDist.m²BDSold$/m²DateΔ vs subj.
COMP-ACuna de Allende 10490.3 km5756$1.94M$3,381Feb '26+8.0%
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The page above is a teaser — sized for diligence, not for closing. The full package goes line-by-line through assumptions, comps, capex, structure, and tax. We send it within 48 hours after a 10-minute qualification call.
Disclaimer · Revenue estimates and ROI projections shown on this site are directional and not guaranteed. They exclude operating expenses, property taxes, financing costs, sales commissions, owner personal-use days, and any future regulatory changes. Past performance does not predict future results. Information is for educational purposes and is not investment, legal, or tax advice. InvestSMA is operated by Luxury Rental Management.
