What the hotel
builds beyond itself.
Tigmi, Douar Tagadirt, the growth fund, and the riad possibility.
Tigmi. Douar Tagadirt, Al Haouz. 25 minutes from Marrakech. At the foot of the Atlas.
The site is an existing hotel (25 keys, two pools, hammam, 7 000 m²), acquired and transformed into a 30-key property under the Toile Blanche brand. Total project budget: 3 200 000 EUR. Acquisition 1 600 000 EUR. Renovation envelope 1 600 000 EUR. The 10 Founders provide 2 000 000 EUR in obligations. LB contributes 400 000 EUR. Bank loan of 500 000 EUR and GO SIYAHA grant of 300 000 EUR, both conditional, complete the stack.
Michelin Key target. SLH affiliate. Contemporary art programme. Residency. Restaurant.
Leroy Brothers do not visit the territory. They live and work there. The studio is a spatial element of the programme, open to residents by invitation. The presence of the artists on-site is what distinguishes a declaration from a decoration. This distinction determines the room rate, the press, and eventually the exit multiple.
The village was struck by the 2023 Atlas earthquake. The Tigmi property survived. The surrounding territory is in reconstruction. The project is consequential in a way that most hospitality projects are not: the GO SIYAHA institutional commission, the ecological infrastructure, the artistic programme. These are conditions of the site, not marketing positions.
La Semaine: four times per year, collectors and art lovers invited for five days in the presence of Leroy Brothers. L'Atelier: long-term residencies for artists and makers. Les Sessions: wider openings, art, music, conversation. One invited artist per year leaves a work on the territory, permanently.
These publications cover projects with a real story. A hotel declared a work of art by an internationally recognised collective, with a working studio, a residency programme, and genuine eco-infrastructure in a post-earthquake territory: this is the kind of story they pursue without being solicited.
What the hotel builds
beyond itself.
As the Growth Fund builds units and adds them to the hotel pool, founders will have the possibility to convert their equity into a long-term riad lease. Those who do, and those who do not, both benefit.
Two funds sit inside the waterfall. One belongs to the village. One belongs to founders who want something more tangible than a dividend. The hotel funds both.
Ten percent of the distributable result flows to the Fondation Tagadirt. It funds the restoration and development of public spaces, common infrastructure, and shared amenities in Douar Tagadirt and the surrounding territory. The village infrastructure. The things that belong to everyone.
This is not philanthropy bolted onto a hotel investment. It is the institutional logic of the project. A territory declared a work of art requires a foundation to steward what the community shares. The Fondation Tagadirt is that structure.
Fifteen percent of the distributable result flows into the Growth Fund TB Maroc. It stays in Al Haouz and is used for one purpose: acquiring abandoned and demolished houses in Douar Tagadirt, rebuilding them from scratch at hotel suite standard, and adding them to the operated room pool.
The fund is self-reinforcing. As the hotel grows, the fund grows faster. Each unit sold returns a 51 000 EUR margin to the fund, accelerating the pace of construction. By Year 3, the first unit. By Year 5, three. By Year 10, ten. No additional capital call. No promise. The fund either accumulates or it does not, and you will see it in the annual accounts.
"The Fondation Tagadirt funds what the village shares. The Growth Fund funds what founders can inhabit. The hotel funds both."
| Year | GF annual | Units built | Margin returned | GF cumulative | Total units |
|---|---|---|---|---|---|
| Y1 | 121 000 | - | - | 121 000 | 0 |
| Y2 | 165 000 | - | - | 286 000 | 0 |
| Y3 | 204 000 | 1 | 51 000 | 242 000 | 1 |
| Y4 | 254 000 | 1 | 51 000 | 248 000 | 2 |
| Y5 | 270 000 | 1 | 51 000 | 270 000 | 3 |
| Y6 | 280 000 | 2 | 102 000 | 54 000 | 5 |
| Y7 | 289 000 | 1 | 51 000 | 95 000 | 6 |
| Y8 | 298 000 | 1 | 51 000 | 145 000 | 7 |
| Y9 | 307 000 | 1 | 51 000 | 204 000 | 8 |
| Y10 | 316 000 | 2 | 102 000 | 24 000 | 10 |
Tadelakt, cedar, zellige, stone, brass. One original artwork curated by Leroy Brothers from the annual commissioned artist. Built by local artisans under LB supervision. Indistinguishable in finish from the hotel's best suites.
Construction cost per unit: 299 000 EUR. Sub-lease acquisition price: 350 000 EUR. The 51 000 EUR margin returns to the Growth Fund and funds the next unit.
Foreigners cannot buy property in a village like Douar Tagadirt. The hotel can. TB RAK INVEST SAS holds a long-term bail emphytéotique with the Moroccan landowner. What we can offer founders, as units become available, is a sub-lease of 20 years on a fully renovated unit.
The sub-lease is made legally possible by a simultaneous bail commercial with the hotel, qualifying the arrangement as a commercial operation under Moroccan law. The hotel manages the rental. The founder owns the use rights and receives the income.
This is not available today. It becomes possible as the Growth Fund builds inventory. When a unit is ready and a founder wants it, the conversation can happen.
183 rentable nights per year at 500 EUR ADR, after 60 nights reserved for personal use. Gross rental revenue 91 500 EUR. After 30% operating costs and a 50/50 split with the hotel: 32 000 EUR per year to the sub-lease holder.
Amortised over 20 years the 350 000 EUR acquisition cost is 17 500 EUR per year. The rental income is 32 000 EUR. The net after amortisation is 14 500 EUR per year, before personal use. Over 20 years total rental income is 640 000 EUR against a net cash outlay of 281 000 EUR after the equity credit.
A 9.1% yield on acquisition price. An 11.4% yield on net cash committed after equity conversion.
Every unit added to the hotel pool increases total revenue. More revenue means a larger distributable result. A larger distributable result means a higher equity dividend for every founder, whether or not they convert into a riad.
The founders who stay in the equity benefit from the growth funded by the founders who convert. The founders who convert benefit from a rental income stream that grows with the hotel's reputation. The structure is designed so that every decision, convert or hold, builds the institution.
This is a territorial vision funded by operating results, not a contractual commitment. No unit exists yet. No lease is offered today. What exists is a fund, a formula, a legal structure, and a clear intention. We wanted founders to understand what we are building toward, because it changes the nature of what they are entering.