Rental Price Calculation Formula
Our Unified Pricing Model
Rawness uses a single, transparent pricing formula for all stays. It ensures every property is comparable and that investors can verify how we set weekly rental prices and expected returns.
Our model is built on conservative operating assumptions but includes the fiscal optimisation we apply in practice (interest-bearing shareholder loans, depreciation, holding structure).
This results in a realistic effective tax rate of about 20 % — the level we achieve legally in most EU countries (including Portugal) through standard deductions and the Dutch holding regime.
For how profits flow after tax (no dilution from reinvestment and buybacks that are cancelled), see our Evergreen Profit Allocation Model.
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1. Baseline & 50 % Occupancy Target
We define our baseline as 50 % annual occupancy (26 rented weeks: 10 High + 10 Mid + 6 Low).
At this baseline we set the High Season weekly price (H) so that the project can:
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Cover all fixed operating costs (management, insurance, utilities, maintenance),
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Cover edible garden maintenance,
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Pay ~20 % effective corporate tax (after interest & depreciation),
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Deliver a 5 % annual net dividend to investors.
This calibration makes each project financially healthy even at modest occupancy.
Calibration step:
We set the High-season weekly price (H) so that at 50 % occupancy the net profit after tax × 0.75 = 5 % of the total invested capital.
The 26 baseline weeks equal 21.6 H (10 H + 10 × 0.8 H + 6 × 0.6 H), so
H = Required Revenue ÷ 21.6.
2. Cost Structure: Fixed + Variable
We divide operating expenses into:
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Fixed OpEx: ≈ 35 % of baseline revenue (covered once 50 % occupancy is reached)
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Variable OpEx: ≈ 10 % of revenue (applies to every rented week beyond baseline)
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Total OpEx assumption = 45 % of revenue
Edible Garden cost is an additional fixed line item:
Cost = €35 × guest capacity × 52 weeks
Example for 6 persons: 6 × €35 × 52 = €10,920 / year
Once 50 % occupancy is reached, fixed costs + edible garden cost are considered “covered.”
Additional revenue beyond that point only bears the 10 % variable cost.
Fixed OpEx 35–45% (property-specific) + Variable OpEx 10–20% of revenue (guidance).
Annual recalibration: if realised OpEx deviates structurally, we recalibrate for the next season or adjust scope/mix. We do not guarantee price increases where occupancy already delivers ≥ the 5% anchor.
3. Seasonal Pricing & Week Allocation
We employ three seasonal price levels (no dynamic yield management), fixed for every stay:
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High season = base weekly price, denoted H
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Mid season = 80 % of High (0.8 × H)
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Low season = 60 % of High (0.6 × H)
Under baseline 50 % occupancy:
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10 High weeks
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10 Mid weeks
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6 Low weeks
When occupancy rises, extra weeks fill High first (to max 12), then Mid (to max 12), then Low — matching how premium stays usually book.
4. Revenue, Tax & Profit Distribution
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Revenue = (H × #High) + (0.8 H × #Mid) + (0.6 H × #Low)
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From revenue, subtract:
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Fixed OpEx (35 % of baseline revenue)
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Variable OpEx (10 % of actual revenue)
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Edible garden cost
→ This yields Earnings Before Tax (EBT)
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Apply ~20 % effective corporate tax
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The net profit after tax is split as follows (Phase 1 — Market entry (Years 0–5)):
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75 % → Investors (dividends)
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25 % → Rawness (retained and then allocated per our Profit Allocation Model: reinvestment in new stays, resilience & impact, and buyback reserve; repurchased shares are cancelled; no new shares are issued for reinvestment)
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​Explicit calculation:
EBT=R−0.35R−0.10R−Garden cost
Net profit=EBT×(1−tax rate)
Dividend=Net profit×0.75
Where:
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R = total revenue = H×#High+0.8H×#Mid+0.6H×#Low
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Garden cost = €35 × capacity × 52
This yields the net dividend after local tax but before any withholding tax at the Dutch holding level.
At the holding level:
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No additional Dutch corporate tax (participation exemption).
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Dutch dividend withholding tax (currently 15 %) may apply when profits are paid out to individual investors, but this can often be reduced or reclaimed depending on tax treaties.
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5. ROI Curves & Drivers
Rawness designs pricing so that 50 % occupancy covers all fixed operating costs and edible gardens and already delivers the target 5 % net dividend to investors (after ~20 % effective corporate tax and the 75 / 25 profit split).
Once this break-even point is reached, each additional rented week generates very high margin — only about 10 % variable operating cost, then tax and the 75 / 25 split.
Because “ROI” can be defined in two ways, we show both perspectives for clarity:
A. Total Dividend Yield (Cash ROI on Total Investment)
(the true annual net return investors can expect on their full invested capital)
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50 % occupancy → ~5 % Net Dividend Yield
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60 % occupancy → ~6.8 % Net Dividend Yield
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70 % occupancy → ~8.1 % Net Dividend Yield
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80 % occupancy → ~9.6 % Net Dividend Yield
Definition:
Annual dividend paid to investors (after corporate tax, after 75 % investor share) ÷ total invested capital. All fixed costs and gardens are included every year, so this is the true cash yield used in financial planning and comparable across projects.
B. Incremental Profit After 50 % (Illustrative Uplift)(helps explain why additional occupancy is so valuable)
If we look only at the marginal profit beyond 50 %, assuming extra weeks book High → Mid → Low, then each extra week is almost pure margin.
Adding that incremental gain on top of the 5 % baseline produces a steeper “uplift” curve:
50 % occupancy → ~5 % Incremental Uplift Curve*
60 % occupancy → ~11–12 % Incremental Uplift Curve*
70 % occupancy → ~18 % Incremental Uplift Curve*
80 % occupancy → ~24–25 % Incremental Uplift Curve*
*This curve illustrates the break-even effect — it shows how every week beyond 50 % is highly profitable once fixed costs are absorbed. It is not a full P&L cash yield, but a way to visualise the upside potential when demand increases.
6. Conservative ROI Curve — “Low-Season Only” Scenario
To illustrate downside risk, we also model an ultra-conservative booking pattern:
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Baseline (50%): 10 High + 10 Mid + 6 Low weeks (these already cover all fixed operating costs and edible gardens and pay a 5% net dividend after ~20% corporate tax and the 75/25 split).
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Beyond 50%: all additional weeks are assumed to rent only at Low-season pricing (60% of High).
Because fixed costs and edible gardens are already covered at 50%, extra Low weeks still add profit — but at a much lower rate than the realistic High→Mid→Low mix.
The resulting Total Dividend Yield (full P&L cash yield on total investment) is approximately:
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50 % occupancy → ~5 % Net Dividend Yield
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60 % occupancy → ~6,3 % Net Dividend Yield
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70 % occupancy → ~7,5 % Net Dividend Yield
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80 % occupancy → ~9,1 % Net Dividend Yield
Why these numbers?
Once the 50% baseline is reached, each additional Low week contributes roughly ~0.25 percentage points of ROI (only ~10% variable cost, then ~20% tax, then 75/25 split). So +5 Low weeks (≈60%) add ~1.25 pp (≈6.3% total), +10 Low weeks (≈70%) add ~2.5 pp (≈7.5%), and +16 Low weeks (≈80%) add ~4.0 pp (≈9.1%). Small deviations can occur depending on capacity vs. investment (edible garden cost as a % of capex), but the pattern is very consistent.
Takeaway: This is a worst-case booking pattern used as a conservative guardrail. In reality, demand for high-end regenerative stays tends to fill High and Mid weeks first, which produces the higher returns shown in Section 5’s realistic curve.
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7. Example: €1 M Investment — 6-Guest Stay
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Total project cost: €1,000,000
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Capacity: 6 guests
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Edible garden cost: €10,920/year (6 × €35 × 52)
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Operating costs: 35 % fixed + 10 % variable
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Corporate tax: 20 %
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Seasonal pricing: H = base, Mid = 80 % H, Low = 60 % H
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Baseline occupancy: 10 High + 10 Mid + 6 Low weeks
We set the High weekly price (H) so that at 50 % occupancy the property:
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Covers all fixed + edible garden costs,
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Pays 20 % tax, and
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Distributes a 5 % dividend (€50,000/year on €1 M).
Baseline revenue = 21.6H.
Solve 0.55R−Edible Garden=EBT, apply tax (20 %), then 75 % → Dividend = €50k:
0.75×((0.55R−10,920)×0.8)=50,000,R=21.6H
This yields:
High ≈ €7,934 / week (€1,133 / night)
Mid ≈ (0.8×H): €6,347 / week (€907 / night)
Low ≈ (0.6×H): €4,760 / week (€680 / night)
If occupancy increases, ROI follows the expected curve (realistic fill High→Mid→Low):
≈ 11–12 % at 60 %, ≈ 18 % at 70 %, ≈ 24–25 % at 80 %.
Notes: ROI figures are net after 20% effective local corporate tax and before any personal withholding. At the holding level, no additional Dutch corporate tax applies (participation exemption). Dutch dividend withholding (currently 15%) may apply to distributions to individual investors and can often be reduced or reclaimed under tax treaties. Reinvested profits do not create new shares (no dilution); buybacks are executed at Holding NAV per share and repurchased shares are cancelled.
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8. Key Assumptions Recap
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50 % baseline = 10 High / 10 Mid / 6 Low
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Fixed costs (35 %) + edible gardens fully covered at baseline
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Extra weeks: only 10 % variable cost
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Extra weeks fill High first, then Mid, then Low
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~20 % effective corporate tax (after interest & depreciation)
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75 % net profit → investors, 25 % → Rawness (Phase 1 — Market Entry, Years 0–5; Phase 2 glides toward ~50 % distributions; see Profit Allocation Model) with retained profits allocated to reinvestment, resilience & impact, and buyback reserve (no new shares; buybacks cancelled).
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NL holding structure: no extra corporate tax; 15 % dividend withholding may apply depending on investor jurisdiction
Sensitivity: Local taxes, utilities or regulatory costs can change the required High price (H) slightly.
Each Rawness project page states the exact tax rate and any deviations so investors can verify the calculation.
9. Phase logic (per stay)
New stays use an introductory ADR in Phase 1 (first 3–5 years) to accelerate occupancy; investor payout is 75% to help anchor ~5% at 50% occupancy. Once time + performance thresholds are met (e.g., ≥36 months and ≥65% TTM occupancy), the stay moves to Phase 2, ADR normalises with brand maturity, and the payout glides toward ~50%.
Holding blend
Holding-level distributions are the weighted result of all SPVs in Phase 1 vs Phase 2; we publish the phase mix in our quarterly factsheet.