Corner Hotel VIII

The Corner Hotel VIII project from Lithuania is raising investments of 100,000 euros for Working capital with an expected annual return of 10-11.25%. The loan term is 18 months, meaning the borrower must repay the loan amount and interest within 18 months after receiving the loan.

The project's risk level on the platform is rated B-. The platform states that there are 10 different risk ratings ranging from "A+" to "D". Around 9% of projects on the platform have ratings of "A+", "A", "A-", while the majority, about 58%, have ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", comprising around 30%, with the remaining projects rated D. Ratings A and B indicate lower expected investment risk compared to investing in credits rated C or D, but the returns will be lower accordingly when investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 61%, which is within the set maximum value of 61%. LTV restrictions are set to reduce risks for the lender and ensure a more stable financial position for the project. For instance, the lower the LTV, the lower the default risk, as the borrower has more equity in the project.

The project's internal number is P00001163-8 on the licensed crowdfunding platform Profitus from Lithuania. The ESMA license is quite complex, as out of over 1000 platforms in Europe at the beginning of 2024, only 150 managed to obtain this license.

Please note that the platform specifies that this information should not be construed as a recommendation, indication, or invitation to use a specific investment service and is not considered the basis or part of subsequent transactions. Investing always carries the risk of losing part or all of the investments. I agree with Profitus platform and also recommend approaching investments responsibly by diversifying your investments.