Stop Scammers

Contact

The First Group – Returns On Investment

2 mins read

If you are an investor with TFG and have experience with the returns on investments with them, we would love to hear from you. Tell us where and when you invested, and what your actual returns where so far.

Please note the 🚩 Red Flags on ROI presented by The First Group Dubai to people:

  • The First Group presents its returns on investment at around 7-10% year. This indeed would be some great returns if they were real. Before signing and paying them anything, we recommend a simple math:
  • check on hotel reservation websites for hotel prices in Dubai, in the area of TFG hotels and similar star rating. Make a note on the price per night (for simplicity of the math, we will consider the same price all year long, but note that during summer there are not many tourists in Dubai, and hotel rooms are both empty and rates per night are very low)
  • now deduct the hotel reservation website fee from the hotel rate per night noted (around 10-20%)
  • now deduct 5% VAT in Dubai (taxes that goes towards the Dubai government)
  • now deduct 7% city tax in Dubai (as in any city, these are taxes applied to tourists, charged at hotel payment)
  • at this point you will end up with a hotel rate per night at 70-75% at best from the price you pulled from the reservation website
  • having the new net hotel rate / night, you can now multiply it with the number of nights expected to be rented. Check Dubai hotel occupancy rate. At around 70%, this means you can multiply that rate/night by 255 (70% of 365 days per year)
  • at this point you will get the total net revenues your investment with TFG will do. BUT…
  • out of the total net revenues, you will only receive 40% – check the pre-sale contractual clauses where it will state that 40% of the revenues goes towards the hotel chain operator (for operational costs), 20% goes to The First Group, and you will get the rest of the 40%
  • red flagtherefore, with 100% of your investment, you will get 40% in returns, and by applying the math above, you will see that in best case scenarios you will get 1-2% ROI (completely different from their presentation), meaning you will recover your investment in 50-100 years!

With all these deceptive practices and presentation from TFG, we must STOP these SCAMMERS!