Rental Program

Buying a Tree Top Villa at naked Stables involves signing a Sale and Purchase Agreement with the development company and a Lease and Management Agreement and Deed of Conditions with the Hotel Management Company. The Management Agreement requires the purchaser to lease the property back to the Hotel Management Company to manage on the owner’s behalf. There are two different plans available to buyers.

Owner Usage Rights
Zero usage restrictions
Early reservations are required to secure villas, especially during prime and peak seasons. If a Villa Owner does not provide the required advanced notice for a reservation, the resort may be required to offer the owner a different unit. The worst case scenario is no availability.
Rental Revenue
a. Revenue
Whilst not in residence, the owner will be eligible to earn a pro rata 36% of the room revenue generated by the resort during their absence. (i.e. The daily revenue generated by the entire resort is divided amongst the owners not in residence on that day. When owners are in residence, they forfeit their opportunity to earn revenue.)
b. Monitoring your returns
Owners will receive regular financial information in the form of an electronic or hard copy statement including: owner record of stays, amounts spent, revenue generated, etc. Owners may request to receive these statements daily, weekly or monthly. Should the owner wish to ‘cash out’ and withdraw cash generated from their villa ownership, this is available bi-annually, at the end of June and at the end of December.
c. Cashing out your returns
Owners will be able to cash out their returns twice a year. If owners choose not to cash out their returns, the resort allows them to use their returns at the resort (where they own property). This option allows owners to deduct returns pretax.
Discounted Resort Services
All services available at the resort are offered to owners and their guests at a 20% discount off listed prices. These services include restaurants, spa and activities.
Services Fee
When owners are in residence, the resort continues to offer services on their behalf. These services include: butler, concierge, housekeeping and room service. In addition to these, the resort offers water, electricity, wireless Internet and telecom services. The fee is RMB 400 per room per night, charged on all rooms regardless of which are in use.
Maintenance
4% of the resort room revenue will be reserved for ongoing building maintenance. This will be deducted from the owner’s share of total room revenue.
Option comparison
Flexible refers to the usage and the return. Your investment returns on your Tree Top Villa are influenced by the success of the resort and the number of days you use your villa.

Usage	Have unlimited usage rights to your own villa
Rental return	Earn 36% of the pooled returns from the entire resort whilst not in residence
Resort discount	20% discount on all resort amenities and activities (including spa and restaurants)
Service fee	RMB 400 per room per night whilst in residence
Maintenance	4% of all room revenue is retained for villa maintenance

Total Permitted Usage	Prime Peak Season¹	Peak Season²	Off Season³	Blackout⁴
40 days per year	No occupancy permitted	Up to 20 days per year, limited to 7 consecutive days per stay	Up to 20 days per year, limited to 7 consecutive days per stay	No occupancy permitted

¹ Prime Peak Season: To be published by naked Retreats in accordance with government notification every year, includes Chines New Year (Jan/Feb), Tomb Sweeping (Apr), Labour Day (May), Mid-Autumn Festival (Sept), National Holiday (Oct), excluding Blackout dates.² Peak Season: 10 weekends and 10 weekdays from March to November, excluding Prime Peak Season and Blackout dates.³ Off Season: 20 days from December to February, excluding Prime Peak Season and Blackout dates.⁴ Blackout: Peak demand dates such as holidays, sporting events, groups and city-wide conventions, local cultural events, as specified by naked Retreats from time to time.

Rental Revenue
a. Revenue
Regardless of your usage of your property, your rental return will be fixed at 5% for the first 5 years of operation. After this period you will automatically migrate to the Flexible plan.
b. Monitoring your returns
Owners will receive regular financial information in the form of an electronic or hard copy statement including: owner record of stays, amounts spent, revenue generated, etc. Owners may request to receive these statements daily, weekly or monthly. Should the owner wish to ‘cash out’ and withdraw cash generated from their villa ownership, this is available bi-annually, at the end of June and at the end of December.
c. Cashing out your returns
Owners will be able to cash out their returns twice a year. If owners choose not to cash out their returns, the resort allows them to use their returns at the resort (where they own property). This option allows owners to deduct returns pretax.
Discounted Resort Services
All services available at the resort are offered to owners and their guests at a 20% discount off listed prices. These services include restaurants, spa and activities.
Services Fee
When owners are in residence, the resort continues to offer services on their behalf. These services include: butler, concierge, housekeeping and room service. In addition to these, the resort offers water, electricity, wireless Internet and telecom services. There is no service fee for Villa Owners on the Fixed rental program.
Maintenance
Of the 5% guaranteed return generated from your property during the period you are not in residence, the management company will retain 4% toward ongoing villa maintenance. The maintenance fund will be pooled and used for all villas in the resort.
Option comparison
Fixed implies both your returns and annual usage rights to your property are fixed. Regardless of how well the resort operates, your returns will remain the same. Equally, you will only have a fixed number of days allowed in residence.

Usage	40 days per year
Rental return	5% guaranteed return on investment, regardless of resort performance
Resort discount	20% discount on all resort amenities and activities (including spa and restaurants)
Service fee	Not applicable
Maintenance	4% of all room revenue is retained for villa maintenance

For inquiries, please contact Jacqueline Ding

400-9200-518

jacqueline.ding@livenaked.com

Rental Program

Flexible

Fixed

Owner Usage Rights

Zero usage restrictions

Rental Revenue

a. Revenue

b. Monitoring your returns

c. Cashing out your returns

Discounted Resort Services

Services Fee

Maintenance

Option comparison