FAQ

Who is AGHPL and what is this project all about in a nutshell?

Airport Grande Hospitality Private Ltd. (AGHPL) is formed by a consortium of investors whose experience vary from hospitality to marketing, project management to finance, with the primary focus being developing and operating the upcoming 4-star rated business hotel – Airport Grande.

 

AGHPL invites investors to be part of this prestigious project by purchasing an undivided share of the 3360 sq. m. suite area and a corresponding land area of the project with investments starting from just INR 7 Lakhs only per UNIT. Investors of 4 units and above are eligible for company shares as well. AGHPL offers FREE shares based on invested units until 31st December, 2024.

There are only limited units available for sale. 

What is Airport Grande project?

Airport Grande is one of a kind contemporary ‘4-STAR BUSINESS HOTEL’ strategically located near the Cochin International Airport, Kerala, India. 

How elaborate is the Airport Grande Investment plan?
  • Airport Grande Hospitality Private Ltd. (AGHPL) primarily welcomes investors
  1. To invest and own Suite Units and receive shared net income from Hotel Suite Business in floors 2 to 5 and also, 50% of the net income from the company’s business on the first floor.
  2. To invest subsidiarily in AGHPL company shares at par and receive shared dividend of the Company earned via its business on the ground floor and also, 50% of the net income from the business on the first floor.
  • The minimum investment for a Suite Unit consisting of 2.6 sq. m. carpet area of building from floor 1 to 5 and 1.67 sq. m. undivided land area, is just INR 7 Lakhs. 
  • Investment plan is detailed hereunder as published in the Company brochure and website.
  • Plan A – Investment in 1/2/3 Suite Unit(s). INR 7 Lakhs per Unit
  • Plan B – Investment in 4/5/6 Suite Units. INR 7 Lakhs per Unit. Subsidiarity, investor will be allotted company shares for INR 40,000/- per each Suite Unit.
  • Plan C – Investment in 7/8/9 Suite Units. INR 7 Lakhs per Unit. Subsidiarity, investor will be allotted company shares for INR 60,000/- per each Suite Unit.
  • Plan D – Investment in 10 or more Suite Units. INR 7 Lakhs per Unit. Subsidiarity Investor will be allotted company shares for INR 1 Lakh per each Suite Unit.
Do you have monthly progress report and work progress images?

Yes. Images are periodically shared among the existing investors. The same (excluding confidential data) can be shared separately to interested investors.

May I know how this project is beneficial for the current investors and how I can make use of it?

Yes. Images are periodically shared among the existing investors. The same (excluding confidential data) can be shared separately to interested investors.

Investors can benefit from :

  • Returns from the Business of Hotel Suites and Company’s (AGHPL) dividend, based on investor’s shared investment in each
  • Appreciation of investor’s assets and AGHPL share value
  • Incidental benefits viz., discounts and free stay in the Suites as published in the website.
Does AGHPL offer Return on Investment (ROI) guarantee?

AGHPL does not guarantee a specific percentage of ROI, as it is directly proportional to the suite occupancy revenue, as well as non-suite room revenues generated. However, the company is confident that it will generate significant ROI from this property owing to the location, historical travel trends in Kochi, international and domestic airport proximity, access to road and rail network as  well as market growth.

How does this investment work?

Investment works in the following ways:

  • Suite Units – Gross income from all the Suites business (1292 Suite Units) after deduction of Operating Charge of the Company and expenses (and 50% of the net income from first floor business) is divided equally for each Suite units, and paid to investors periodically.
  • Company Shares dividend – Net income of the Company business after deduction of expenses, i.e. 50% of revenue from the 24-hours coffee shop, restaurant, executive bar, conference hall, local bar etc., as well as management fees from operating the suites will be shared as dividend of the Company to its shareholders. 
What are the risks involved in this investment?

The direct risk is the potential ups and downs of the hospitality and travel/tourism business. However, indirect risks such as pandemic or other unforeseen circumstances, government policies, etc., in future, may potentially affect the investment.

How much can I expect to earn from this investment?

Experts in this field of operations have assessed and concluded that earnings may vary from 7% to 20% depending on the occupancy rate and non-room business offtake, which is still higher than the standard interest rates on bank deposits and inflation rates. However, the Company cannot guarantee any particular amount of earning.

How much does a minimum investment cost?

The minimum amount of investment is INR 7 Lakhs for each Suite Unit.

What are the costs to buy, hold and sell the investment?

The cost to buy an investment is as per the investment plan detailed above and elsewhere in the website. Additionally, the investor shall bear the charges for registration. Other recurring costs such as electricity, water consumption, maintenance, duties, and taxes, etc. shall be considered as part of the operating expenses. The investor is free to sell their Suite Units (except company shares) to any interested third party, accepting company’s terms and conditions, as per the decision of the board of directors. Preference shall be given to the existing investors. No investor shall be permitted to hold company shares alone.

What is the payment plan?

An advance of 10% of total sale amount shall be paid on booking. Balance 70% within 1 month and the remaining balance within 2 months of signing the booking agreement.

What is the paid-up capital and/or authorised capital of the AGHPL company?

The authorized capital of Airport Grande Hospitality Private Limited (AGHPL) is INR 10 Crores. 

What are the reasonable ROI expectations, and over what timeframe?

The ROI expectation is between 7% to 20% depending on the occupancy rate which may range from 40% to 80%. The occupancy rate is expected to stabilise within 3 years of successful operations.

Is there is any plan to outsource Hotel Management to any Franchise Partner?

Outsourcing will be considered only if the Company is confident on the proposed partner’s pre-qualification proving efficient and optimum operation at standard costs as well as compatibility on management principles such as transparency and efficiency.

Is it possible to receive financing from a conventional lender in this project?

AGHPL does not arrange financing for proposed investors. Investors will need to assess their options with their banks or other finance providers, as it is a commercial property investment.

Is there any buy-back guarantee available more than the original price if I am buying a Hotel suite unit?

AGHPL does not offer any buy-back guarantees, however, company will facilitate opportunities if and when available. It is estimated that the market valuation of each unit which is linked to the undivided share of land will increase over time.

How to legally register the percentage of ownership rights that correspond to my number of shares?

The Hotel Suite unit’s carpet area and corresponding land area will be registered in the name of the Investor immediately upon obtaining the Building Completion Certificate from the relevant regulatory authorities. Company shares are certified as per the Company’s Act (India). 

What are the benefits if I am buying company shares along with Unit share?

It will give the opportunity to have twin earning streams – one from rental income and the other from the Company shares’ dividend based on the profitability of the Company’s own business (non-room business on ground floor and 50% of first floor).

Is it possible to invest only in company share?

Company shares shall be issued only as per the investment plan detailed above. To obtain company shares, the investor must first be an investor of Suite Units. AGHPL do not provide shares alone to parties.

Are there caveats or regulations that the investors should know?

Investor must mandatorily enter into a lease agreement with the Company for operating the company’s Suites and other businesses as a profitable venture. Investors shall not interfere with the operation of the business. Investors cannot avail any freebies other than that specified in the agreement. Investors shall not act on behalf of the Company, without  authorisation

What is the major attracting factor of this project that can guarantee profitable outcomes?

Airport Grande is located at a distance of 4 km from the Cochin International Airport Limited, that can serve as one of the best possible advantages of the project. Tourists and others landing at the Airport can enjoy their short or long stay at Airport Grande  with its proximity to the CIAL golf course, CIAL exhibition center and the national highway as well as the port city Kochi.

How much growth can I expect within 3 years of the project’s inception?

With the attractive number of facilities offered by Airport Grande, including the fully-furnished, rent-ready 84 Hotel Suite Rooms, Restaurants, Bars, Lounge, Bouquet Halls, Party facilities, etc., the Company envisions an exponential growth within 3 years of its inception. The prime and convenient location is sure to attract potential customers who can help accelerate the promotion of Airport Grande. Further, the company has multiple plans on growth acceleration to be actioned, once the facility is operational in 2024.

What are the benefits of investing in a commercial property in Kochi such as the Airport Grande?

Today, the city of Kochi has a booming real-estate market in India. Easy access to the airport, the metro-rail, career opportunities and commercial enhancement through tourism, port-based industry, foreign investment and a burgeoning IT industry are important highlights of the smart city. Moreover, the land appreciation value has risen to 50%-150% in residential, commercial and agricultural sectors. This makes investment in Airport Grande an important deal with the never-before variety of offers by the Company and such a low entry price point of just INR 7 Lakhs. 

What are the amenities offered by Airport Grande for the customers to ensure maximum profit?

The project targets customers with a variety of amenities beginning with the premium class suite rooms, restaurant, bars, lounge, gym, board room and a 24-hour café. Customers will be attracted to these facilities while staying at the hotel, ensuring maximum publicity and promotion through word-of-mouth.