Charter Business

[Kadinger]

Are there people here who are familiar with the charter business?



I have the option to purchase a 2001 Astondoa 95 for 750k (all amounts in euros). Of this 150k would be due immediately, the rest as an interest free vendor loan. 2 engines have to be exchanged, the total refit amounts to a maximum of 250k.

2 sessions in Croatia and the Caribbean are planned. I was told that we can ask for 50k net per week in Croatia and 60-80k in the Caribbean.



Transportation costs to the Caribbean are probably 150k now and 100k in the future if we have more lead time for booking. Depends on the situation in the Middle East.

Need captain, engineer, cook and 2 stewardesses.

Insurance should be 0.7% of the value of the boat.



Do these figures sound realistic?

Are there any pitfalls that I have not considered?

 

[aniglo22]

Did you include the charter brokers commission (around 10–20%) in your calculation ?
Also don't forget VAT in Croatia .
And also what type of coverage is your insurance ?
And also MTU or MAN ?

 

[Kadinger]

All amounts are net, both expenses and income.



So far I have not factored in the broker costs, as I do not yet have a realistic idea of the workload (I am currently calculating an average of 10 weeks for Croatia) and I have a larger network to fall back on. The surveyor and subsequent administrator is a friend of my lawyer, and his daughter has a charter company for yachts >100m in Spain.

3x MAN 1200 HP. My surveyor calculated with around 80k for 2 overhauled engines. Also net.

Insurance is full coverage with discount of my surveyor, well known German insurance.

 

[aniglo22]

All amounts are net, both expenses and income.



So far I have not factored in the broker costs, as I do not yet have a realistic idea of the workload (I am currently calculating an average of 10 weeks for Croatia) and I have a larger network to fall back on. The surveyor and subsequent administrator is a friend of my lawyer, and his daughter has a charter company for yachts >100m in Spain.

3x MAN 1200 HP. My surveyor calculated with around 80k for 2 overhauled engines. Also net.

Insurance is full coverage with discount of my surveyor, well known German insurance.

What type of overhaul ?
And also how many hrs on the engines.

And also did you get the engines surveyed by a independent 3rd party ?

 

[shimo]

The figures you have given seem realistic, but don't be too optimistic in your calculations!

Also don't forget additional costs such as maintenance, management, self-marketing, off-season storage and marina fees. In addition, unforeseen mechanical failures often occur - you should always have €50k-€100k to burn!

 

[aniglo22]

I would definitely recommend recruiting your crew from the Philippines.
Cheap, high English proficiency and good work ethic.
For example: https://crewasia.ph/

 

[Kadinger]

What type of overhaul ?
And also how many hrs on the engines.

And also did you get the engines surveyed by a independent 3rd party ?

Something i have to figure out today.

 

[Kadinger]

The figures you have given seem realistic, but don't be too optimistic in your calculations!

Also don't forget additional costs such as maintenance, management, self-marketing, off-season storage and marina fees. In addition, unforeseen mechanical failures often occur - you should always have €50k-€100k to burn!

I calculate with 90k per year for maintenance.

The other option would be buy it, do a refit it and resell it, my lawyer sees the sellprice after that at 1.3 - 1.5 Million.


And my surveyor sugested a english captain because of the “victorian” behavior.

I should perhaps be a little more precise, when I talk about my “surveyor”, I mean a 70-year-old man who has sailed around the world several times, worked for several decades as a salesman for a well-known French boat manufacturer and has been selling and managing luxury yachts for many years. 100-footers are usually the chase boats.

 

[aniglo22]

I calculate with 90k per year for maintenance.

The other option would be buy it, do a refit it and resell it, my lawyer sees the sellprice after that at 1.3 - 1.5 Million.


And my surveyor sugested a english captain because of the “victorian” behavior.

I should perhaps be a little more precise, when I talk about my “surveyor”, I mean a 70-year-old man who has sailed around the world several times, worked for several decades as a salesman for a well-known French boat manufacturer and has been selling and managing luxury yachts for many years. 100-footers are usually the chase boats.

Yeah, but an English captain will run you around €8,000 to €13,000 a month.
It’s just stuff that old people say.

Seems sketchy

The other option would be buy it, do a refit it and resell it, my lawyer sees the sellprice after that at 1.3 - 1.5 Million.

If it were an easy flip, they would have already done it.
I would definitely get a marine surveyor and have the engine checked.