The purchase of a proportion (minimum 1/13th) of a hotel room in a soon to be developed luxury boutique 5* hotel in the Ponta do Pargo Resort in western Madeira.

£6,750 all-inclusive entry price. All-inclusive means that all set-up costs and legal fees are included in this price.

The total price is £17,914*, including the initial payment.  The remainder is divided into 5 affordable stage payments of €2,590 (£2,233*) between exchange of contracts and completion of the hotel (April 2012).

* based on an exchange rate of £1 = €1.16

A yield in excess of 12.4% is estimated, based upon an occupancy level of 66.5%.

Once the hotel opens, investors start earning rental income from their room at the rate of 50% of the revenue generated during their 28 night allocated period e.g. based on revenue of €250, the investor would receive €125. The remainder goes towards the upkeep and running of the hotel. This is a fully-managed investment and the investor has the peace of mind that they will not receive any additional on-going charges. Service charges, maintenance fees and all repairs/renewals are for the account of the Hotel Management Company.

When the hotel is sold, investors will receive a percentage return from the sale proceeds of the whole hotel.

This investment is asset backed. The land was acquired for the development of this project in 2008 and underpins the value of the company - and therefore your investment.

The land was acquired prior to further increases in land and commercial property in 2008/9.

Against a backdrop of falling prices Madeira produced outstanding gains in 2008/9, in part due to the Government zoning a high percentage of the island as green.

If the development is not started then the investors are assured of a full refund of all investment monies.

No limit is placed on the number of units you can buy. Many investors acquire multiple units - they determine the correct for their investment portfolio which is right for them.

According to The Sunday Times Travel Magazine, Madeira is "the perfect island for a fashionable short break".

Statistics for hotels in Madeira were impressive for 2008 - the number of hotel guests went up by 4.8% and nights spent in hotel accommodation by 3.6%. In Calheta, the number of nights spent in hotels grew by over 10%.

The Madeiran hotel industry places great emphasis on high-end establishments. All new hotels built on the island must be at least 4-star and most 3-star hotels are being upgraded.

Mirroring the island's booming tourism sector, Madeira's hotel industry is buoyant and demand is high. Annual occupancy on this year-round holiday destination is good with average room rates at approximately €250 a night, reflecting the fact that hotels are predominantly high-end.

In the region of Calheta, where the Ponta do Pargo resort is situated, there are currently just three hotels, all 4-star. The Ponta do Pargo Resort will be the only 5-star hotel in this area.

Madeira is a well-established port of call for cruise liners - 10 dock at Funchal daily in high season.

Morgan Forbes ensures that the investment process is hassle-free by administering all aspects of the investment from entry to exit

All clients need to do is:-

• Instruct your broker
• Sign and return the contract we send you
• Provide the money laundering documentation
• Permit the funds
• Liaise with your broker, as your dedicated representative keeps you appraised of the progress, with regular updates, of this stunning opportunity.

This is one of the underlying benefits of this opportunity. Due to the low entry level and small stage payments, the need for a mortgage or release of equity is not required.

On the island of Madeira, just outside the charming town of Ponta do Pargo on the western most point.

Google co-ordinates - 32°48'14.93"N 17°14'47.40"W

The land is owned by Morgan Forbes. A copy of the land deed is available to our clients for inspection on request.

When the full payment is received a share certificate will be issued in the name of the individual or company entering into the purchase contract. This is a proof of ownership document.

The spacious 5-star hotel consists of 61 Master Suites, all boasting an average 42m² and 7 Presidential Suites with an average of 81m²

Luxury facilities include a spa, gymnasium, treatment rooms, ocean-facing infinity pool, Madeiran-hallmark tropical gardens, restaurants and bars.

Flight time from the United Kingdom to Funchal Airport is around 3.5 hours (1.5 hours from Lisbon).

Funchal Airport has a wide range of direct flights daily from several countries including the UK and Portugal. For example, Easyjet offers flights from London Gatwick and Stansted, Bristol and Lisbon airports.

Road infrastructure has recently improved substantially with the completion of the motorway between Funchal and the north of the island. Also, the motorway from the capital to Ponta do Pargo is due for completion during 2010, reducing travel time from the airport from 1 hour to under 40 minutes.

Architects for the Ponta do Pargo Resort are MSB Aquitectura, based in Funchal. The firm, established in 2004, comprises a team of four architects with wide experience in designing residential and hotel projects in Madeira. Contemporary, modern design is the main characteristic behind MSB's extensive portfolio.

The project is scheduled to complete in April 2012, to coincide with the opening of the Sir Nick Faldo designed golf course and by which time the motorway between Funchal and Ponta do Pargo will have been completed.

The developers, Morgan Forbes are a Madeiran-based property and leisure company, managed by three partners whose combined experience brings over 50 years of expertise to the company. Morgan Forbes (UK) Limited, the UK based marketing arm of the project, has its office in Canary Wharf, London.