This is my first update to shareholders and the investment community. I feel it is a great way to keep everyone updated on what we are doing in between news releases.
As we have reported, in news releases, the latest being the update on 29 November, we expect to have the Luxuria completed by late January of this upcoming year.
The completion of the Luxuria, which is our flagship luxury floating home and the first one of its class, will completely change our circumstances.
First, the completed Luxuria will put over a million dollars in asset value in our Company. More importantly, we have a strategy in place to monetize this asset.
When the Luxuria is complete, we will berth the vessel at a prestigious marina here in South Florida. I have spoken to a number of marina owners who are interested in berthing the vessel. While, we have not finalized anything yet, we will have an excellent location for the Luxuria.
Sales versus Rental
The Luxuria will go up for sale with a price of $1.5 million. However, in the meantime, we are working with a number of entities to make the vessel available for rental. These entities include oceanfront hotels as well as specialty rental companies.
With regard to renting the vessel, we expect to get $1000-1500 per night and in some instances, during special events, up to $2000 per night.
If we do not sell the Luxuria, we expect an annual rental income of over $200,000 at 50 percent occupancy calculated at the mid-point of $1250 per night. The busy season is obviously during the cooler months from October through April but, South Florida is busy year round and provides one of the best locations in the US as our base of operations.
If in fact we do sell the Luxuria, that would have its advantages too. This would give us the capital to begin work on additional Luxuria class vessels.
As things stand now, the sale of the Miss Leah in Boston will give us the needed funds to pay off our short-term debt and begin construction of a second Luxuria class vessel.
During the month of December, we are working on advertising and public relations efforts to drive awareness of the availability of the Luxuria beginning in February of 2017. This date is right around the corner and will be here before we know it.
We have been attending boat shows and other events here in South Florida over the last couple of months to promote the Luxuria. We are increasing these efforts this month and will be attending additional shows next year.
In summary, we have a really good situation here. We expect Global Boatworks income to increase substantially with the availability of the Luxuria. Regardless if we sell or rent the vessel, it will move our Company to the next level and give us the leverage needed to grow the Company.
CEO, Global Boatworks Holdings, Inc.