Industry Archives: Hospitality


Seeking Equity Investor for Hotel and Office Complex in Prague

This Development is located on the riverbank in central Prague. The land is part of Smichov, which is widely recognised as the 2nd centre of Prague. The area contains the Andel Retail complex as well as commercial and entertainment areas. The Andel shopping complex is seen as Prague’s premier shopping mall and is located just a 5 minute walk away from the site. Transport links are very close by with Smichov railway station and Smichov and Andel metro stations within short walking distance.

The area is rapidly growing with office accommodation built by Skanska reaching full occupancy prior to completion and a new Schmicov City planned to start late 2015 bringing employment, accommodation and more retail into the area.

The land has been on purchase option whilst they secured change of use, planning and zoning to develop a large luxury 360 bed conference hotel. Intercontinental Hotels had agreed terms for a 20 year operating lease. Vinci, one of the largest construction companies in the world had committed to purchase the construction work for the hotel taking on all risk to deliver a turnkey solution to a set construction deadline.

Changes in the market have seen the hotel market move away from large hotel real estate instead preferring smaller hotels. Intercontinental are still committed to the site but on a smaller hotel footprint. My clients have embraced this and are now looking to change the planning to a 50/50 split hotel and office or hotel and residential development offering marina facilities to the owners.

My clients have already contributed more than €1m+ and a significant commitment in time to gain planning consents and source contractors to fund the site and developers to purchase the site. and clients for the site. The want to purchase the land outright with an equity partner to realise the planning gain.

Project Details
CBRE have recently valued the hotel project sale at €54m with a profit of €19m. Vinci are still interested in purchasing construction contract which would fund the development for circa 5% pa. The demand for such a large hotel may not be readily available and therefore one of the following options is preferred.

Further Options
Hotel and Office
As a large hotel is already consented it will take less time to gain planning for a smaller hotel of 160-180 bedrooms and a small office block. Intercontinental Hotel Group are still interested in purchasing a smaller hotel on this site. CBRE have estimated the sale price for this would be €45m with a profit of €18m.

Hotel and Residential
This option needs full building consent which would take approx. 12 months to gain the necessary permissions before any sales can be effected. The sales value and profit do reflect this with sales value at €50m and a profit projection of €30m.

Investment Requirements
An equity investor will need to contribute €1m initially to secure their stake which will be held in an Escrow account and detail the investment agreement. At the point of sale the remaining €8m will be required to purchase the land outright.

Exit Options
Once the land is purchased the land can be held in the investment agreement and the developers brought in to build out the development at the pre-agreed finance rates with the contractor. This will maximise the profit potential.

Alternatively the land can be sold to a developer with the planning consents for a €18-19m. This gives the quickest return for an investor.

Much more detail is available to serious investors who have the equity available immediately.
Deal Contact:
Finance for Property Developers Limited
Sue Jonas
[email protected]

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Seven Branded Hotels development in Africa

The Company, in collaboration with a UK based developer, is leveraging the gap of quality branded hotels in Africa through a JV initiatives to develop seven mid-size branded hotels for an investment of $350 million USD.

The Company is an African Hospitality investment and Financing Firm that invest and leverages hospitality gap in Africa. The Company facilitates title to the site (usually freehold), hire architect for concept design, assist with costing for the project from quantity surveyor, conduct investment appraisal & feasibility, and facilitate the Tendering of the construction contract and project management. The Company is headquarters in Nigeria, and has offices in Dubai, and the USA.

The UK based developer and EPC contractor is a professional partner combining unique experience in delivering hotel development in Sub-Saharan region, using a four phase structured development process proven modular build system to achieve brand standard, and single point of responsibility for development delivery. Moreover, efficiency of delivery, provides enhanced returns, and control of costs and risks. Through their ability to deliver projects the firm has established working relationships with brands such as Park Inn, Novotel, Ibis, Holiday Inn, Marriott Courtyard and Hilton Garden Inn.

The estimated cash-on-cash return is approximately 30%, and IRR is approximately 25% by the end of the first three years of operations, and the NOI ratio is estimated at 15%.

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Small Hotel Opportunity in Burgeoning Area of Mexico

Canadian based company is looking for investment from potential stakeholders or other financing options to provide funding capital for a unique small hotel opportunity in an area of Mexico that is both safe and prepared to grow significantly.

The funds generated from the sale of shares (equity) or other financing methods will be used solely for the purchase of 100% ownership (including buildings, property, brand name, internet rights, all assets and fixtures) of this hotel facility.

The strategy is to develop the full potential of this property as it exists at present increasing the present occupancy rate via a series of marketing methods, both traditional and through modern technology such as the internet.

The intention of the company is to use some of the financing to implement potential food & beverage services on location, obtain licensing for such activities, create an event or events to attract new and returning customers, branding, merchandizing and possible expansion of the facility to increase the amount of rooms offered to customers or to acquire more land or business opportunities in the local area.

A full and complete prospectus including background of area and investment including experience, capabilities and successes, is available.

Pete Rainville
Revolution Investments Limited
[email protected]
+1 613 913 8796

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Turkish Companies Invest in Five-Star Hotel in Dagestan

Moscow Times July 15, 2014
Turkish companies are planning to build a five-star hotel complex in Makhachkala, the capital of Russia’s restive southern region of Dagestan, at a price of more than $100 million.

Named Sarir after a medieval kingdom that once resided in the mountains of present-day Dagestan, the five-star complex will contain a 250-room hotel, a 2,000-seat conference center and therapeutic baths that can receive up to 150 patients a day, according to a statement on the republic of Dagestan’s website.

It will also boast an an 18-hole golf course “of an international level,” the statement said.

A Turkish delegation traveled to Dagestan for a meeting Monday with the republic’s head, Ramazan Abdulatipov, who during the meeting underscored the value of Turkish investors’ experience in establishing top-class tourism facilities in their own country.

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Luxury resort and villas with golf courses in South Africa and Zambia

The Project consists of three estates located on game farms of 10,000 hectares, 20,000 hectares and 8,000 hectares respectively situated in Baviaanskloof, Eastern Cape, South Africa, Nvimbi on the borders of Malawi and Mozambique, and Lake Kariba in Zambia.

The three game farms will have 200 luxury fully furnished villas available, ranging from four to fifteen bedrooms with a selling price of USD 3 million to USD 18 million per unit, giving buyers the opportunity to own a piece of real estate within a these private wildlife estates, managed by professionals.

The Project includes the development of sixty two-bedroom beach front apartments in Jeffreys Bay, Eastern Cape, South Africa, with conference facilities available for functions and venues. Each will carry a selling price of USD 670,000. The Project will also develop four luxury hotels at each site consisting of two 120 room hotels, and eighty room hotel and a 300 room hotels. Luxury villas will be available for hunters and those preferring their privacy with isolation. Mountain hiking trails will be earmarked for hiking and fishing spots for residents and tourists.The game farm in Zambia also has two kilometer landing strip.

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Central California Beach Front Hotel Project Seeking Investor

The principals have about USD 7 million invested in this 121 room beach front hotel project in a good location in Central California. The project has full entitlement, and is shovel ready for vertical construction. The project has permits ready to go. The owner is seeking and investor to provide USD 14 m of a total cost of about USD 39 m. The owner has a business summary with pro-forma projections, a resume of partners, and construction cost break down for interested parties.

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Dubai’s ICD to buy stake in hotel manager Kerzner

DUBAI, April 3 (Reuters)
Investment Corp of Dubai (ICD), the emirate’s sovereign wealth fund, has agreed to buy about 46 percent of hotel management company Kerzner International, sources aware of the deal said. The sources, speaking on condition of anonymity because the matter is not yet public, did not reveal the price of the deal. Executives from ICD could not immediately be reached to comment.

The stake will be bought from the founders, the sources said. Istithmar World, a unit of state-owned conglomerate Dubai World, already owns 25 percent of Kerzner, while Goldman Sachs also has a stake. Among its properties, Kerzner manages the global Atlantis and One & Only resort chains; much of its business is now focused on Dubai.

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André Balazs sells majority stake in Standard hotel brand

Reuters Sept 4 – Hotelier André Balazs has sold a majority interest in his Standard hotel brand and said the brand’s High Line property in New York was looking for new investors. Continue Reading →

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Travel Website Buys U.S. Hotel Booking Site

Moscow Times from RIA Novosti
WASHINGTON — The U.S. hotel-booking website DealAngel has been purchased by the Russian travel site OneTwoTrip, the technology news website VentureBeat reported this week.

San Francisco-based DealAngel, which opened for business early last year, is a site that analyzes hotel pricing data to help users get the best deal for a room. The sale to Moscow-based OneTwoTrip was announced August 6 by both companies, VentureBeat reported Tuesday.

The terms of the deal were not disclosed.

OneTwoTrip is expanding rapidly, having raised $25 million in capital since its founding two years ago, VentureBeat reported. The Russian firm has focused primarily on flight bookings, and the DealAngel purchase is intended to improve its hotel services, OneTwo Trip chief executive Peter Kutis said in a statement.
The Moscow Times

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7 Days Group Expects to Go Private Soon
7 Days Group Holdings Limited SVN will possibly complete the privatization and get delisted from the New York Stock Exchange (NYSE) within a month. Continue Reading →

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