How Bona Vita Structures Deals to Target Luxury Real Estate Investment Returns
At Bona Vita, our investment strategy is designed to pursue luxury real estate investment returns by combining premium property selection with hospitality-grade operations and disciplined financial planning. We focus on high-demand international destinations where we can acquire standout villas, deliver a curated guest experience, and generate strong cash flow and long-term appreciation. In this post, we’ll walk through an example Caribbean deal to illustrate how our model is built to support targeted annual cash-on-cash returns of 10–13% and a net equity multiple between 1.6x and 1.8x over a 3–5 year hold.
Snapshot: Returns from a Recent Caribbean Deal
This representative investment—a newly constructed 8-bedroom villa in a high-end Caribbean resort enclave—was based on an all-cash acquisition and has a five-year hold strategy.
Here’s how the projected returns align with our target framework:
- Hold period: 3–5 years
- Target investor IRR: 11%
- Target cash-on-cash return: 10%–13% annually, averaged over the hold
- Target net equity multiple: 1.6x–1.8x
These figures are based on conservative projections and reflect the type of international real estate investing performance we aim for by being highly selective in where, what, and how we invest.
Strategic Market Selection Supports Strong Fundamentals
We target countries and communities that we believe offer investor-friendly policies, robust infrastructure, and rising demand for affluent short-term rentals. In this case:
- Annual tourism growth averaged 12% since 2019
- Average stays exceeded 8 nights
- Luxury villa occupancy ranged from 70–80%, peaking near 95% in high season
- Foreign ownership laws allowed full property rights and capital repatriation
This kind of environment supports both passive income potential and long-term appreciation. These are essential drivers of the luxury real estate investment returns that our model is designed to pursue.
Property Characteristics Designed for Premium Demand
Each Bona Vita property is selected to meet the needs of today’s high-net-worth vacation rental guest:
In this case, the home was:
- Over 8,000 square feet
- Designed for large groups and retreats
- Outfitted with luxury amenities like a private pool, expansive indoor/outdoor spaces, and full-service staffing capabilities
These features are what power our ability to achieve higher average daily rates and repeat bookings—critical to maximizing real estate cash flow in global resort markets. Properties like this allow us to target premium travelers who are looking for full-service villa experiences rather than hotel rooms. That demand profile is key to driving both occupancy and nightly rate potential.
Operational Precision Enhances Margins and Protects Brand Value
Bona Vita manages each property with a hybrid approach that balances on-the-ground service and centralized oversight. Our operating playbook includes:
- Local teams delivering a curated guest experience
- Dynamic pricing models that adapt to seasonal and competitive trends
- On-site services such as private chefs and wellness offerings that generate ancillary revenue
In this case, the villa was modeled to achieve average nightly rates in the $1,800–$2,200 range, with peaks during holiday and event periods. While these numbers are illustrative only, they show how turnkey vacation rentals in the right markets can outperform traditional real estate investments.
Multi-Channel Marketing with a Built-In Advantage
Marketing isn’t an afterthought—it’s a core capability. Every Bona Vita property benefits from:
- Listings on luxury platforms like Airbnb Luxe, Plum Guide, and onefinestay
- SEO-driven direct booking via our in-house media team
- Partnerships with high-end travel advisors
- A proprietary database of thousands of luxury renters, built through direct-to-consumer marketing
That last piece is critical: we aren’t starting from scratch. We already have a qualified audience looking for exactly what we offer.
Thoughtful Exit Strategy Built into Every Deal
We plan each acquisition with multiple potential outcomes, and pursue the path that offers the best return relative to risk. Options include:
- Sale to a private buyer or boutique hospitality operator
- Refinance to return investor capital while retaining cash flow
- Ongoing operation or exploration of a fractional model
This flexibility allows us to adapt based on market conditions and pursue the best risk-adjusted outcomes for our investors.
The Bona Vita Formula, Illustrated
This Caribbean case study illustrates the core elements of the Bona Vita approach:
- Global market selection driven by tourism, ownership rights, and limited inventory
- Property-level strategy designed to attract premium guests
- Operations and marketing aligned to maximize net operating income
- Exit flexibility that supports both short-term and long-term goals
Our aim is to build a portfolio of affluent investor opportunities that offer access to turnkey international rental properties—the kind that can deliver not just a place to stay, but a strategy to grow wealth. If you are an accredited investor and would like to get access to our current offerings, click here.
