Chototel Introduces the World's First "Super Budget Hotel" Priced From Just $2 Per Night
London, United Kingdom (PRWEB UK) 13 September 2016 -- The Chototel concept has been created by Rhea Silva, who, aged 24, is a third generation social entrepreneur with experience in building affordable housing and hotels. The idea to disrupt the housing market has attracted strong support and, Rhea has been joined by Chris Phillips, aged 66, who has enjoyed a successful city career chairing a number of companies listed in the United Kingdom and Germany and is set to become Non-Executive Chairman. He is currently the Chairman of Places for People, one of the largest property and leisure management, development and regeneration companies in the UK, which owns or manages over 143,000 homes with assets in excess of £3 billion.
To give global context to the housing crisis - access to decent, affordable shelter is embedded in the UN Declaration of Human Rights and yet according to a 2014 McKinsey Global Institute report it is still estimated that 440 million households or 1.6 billion people (a third of the urban population) will occupy crowded, inadequate and unsafe housing by 2025.
Founder and Managing Director Rhea Silva comments: “In light of this social issue, we have developed what we believe to be an innovative and scalable business model, aimed at disrupting the current housing market. We have termed the concept: ‘super budget hotels’. Once the initial proof of concept and financial model has been validated in India, we hope to tackle issues generated by the global accommodation crisis by rolling the concept out to other countries affected, including the UK.”
The concept seeks to offer accommodation starting from just US$2 per night and to use the latest technology to provide residents with all the services they need – paying only for what they consume – encouraging people to consider their environmental impact and to behave responsibly and sustainably. The US$2 rent can be potentially shared by up to four residents. Electricity, water and gas will be charged on a consumption basis, which will discourage wastage. The cost of utilities per room is not expected to exceed US$0.50 per day, as the equipment in each room has been optimally sized to maximise efficiency.
Rhea Silva explains further: “The first hotel is currently under construction on a 1.5-acre site at Nagothane, 75 kilometres south of Mumbai and is expected to open later this month. The area is at the centre of a vibrant industrial area which is home to a number of heavy industry employers, the majority of whom employ ‘informal workers’. Typically, such workers are paid the equivalent of US$4-6 per day, and do not appear on the payrolls of companies. They are not entitled to health or any other employment benefits.
“The second project, for which land has been identified, is planned to be in the Chakan Area of Pune District, one of India’s major industrial cities, at the heart of the country’s fastest growing industrial corridor.”
Investors who wish to share in the founder’s vision will have the opportunity to invest in these first two projects, as in the coming weeks Chototel intends to seek admission to trading on the Social Stock Exchange segment of London’s ISDX Growth Market of Chototel Cell A IC Limited (“the Cell Company”). The Cell Company, intends to raise US$ 5 million via a subscription for shares to invest in the first two projects.
Chris Phillips, Non-Executive Chairman of Chototel commented: “The Cell Company intends to generate appropriate returns for its stakeholders, whilst at the same time delivering demonstrable economic, social and environmental impact in the areas where it operates. As an important member of the impact investor community we understand that profit and good can go hand in hand and we look forward to social impact investors participating in our vision.”
He added: “Our financial model is based on the premise that first we will use any available distributable profits to return capital to investors via the payment of regular dividends to pay back their initial subscription and thereafter enable them to benefit from a healthy projected yield. Investment in the Cell Company is a great way for investors to share in the wider vision of Chototel and its founders.”
Tomas Carruthers, CEO of the Social Stock Exchange added: “All our members must demonstrate that they have the drive to deliver a social or environmental impact at the heart of their business. Chototel delivers on both these counts and we wholeheartedly support their vision to create affordable housing solutions - wherever they are needed.”
FOR FURTHER INFORMATION PLEASE VISIT: http://www.chototel.com or contact:
Belvedere Communications
Kim van Beeck/John West
Office: 020 3567 0510
Mobile: 07477 967 446
Belvedere Communications Kim van Beeck/John West, Chototel, http://www.chototel.com, +44 7477 967 446, [email protected]
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