South India-based Hospitality chain company is looking to sellout.
BUSINESS BRIEF
Project Hotel is a hospitality chain company. They are operators of 3 star hotels on an asset light model through a mix of lease & joint ventures. It is a South India based company. Founder has rich experience of more than 3 decades in the management functioning of the hospitality & service industry.
- They have 8 hotels with 354 keys as on date.
- The properties shortlisted are all strategically located with quick access to major IT parks, business hubs, city centres, etc.
- The revenue earned has a unique mix of corporate and individual clients which complement each other. 55% of the revenue earned is from corporate bookings, 30% from travellers and 15% from direct walk-ins.
Opportunity:
- The Company is proposing a Sale & Lease back of the 2 Hotels.
- The combined Fair Value of the hotels is ~Rs. 37 crores.
- The tenure of the lease between the Company & the Investor shall be a minimum of 15 years.
- The Incoming Investor shall be offered a monthly rental of INR 28.72 lakhs.
- The lease payment shall undergo 10% Escalation every 3 years.
- In addition to the Agreement Value, the Investor shall also be required to bear the cost of Brokerage (2%), Stamp Duty (6.67%) and Other Miscellaneous Charges.
- The Investor shall receive an Annual Rental Yield of 9% on the Net Investment Amount (inclusive of Stamp Duty, Brokerage, Other Charges and net of the Security Deposit)
Hotel 1:
- The hotel is in close proximity to many Fortune 500 companies, tech parks, metro station, high street shopping and entertainment hub of the city.
- The hotel features a total of 40 rooms, consisting of 12 Deluxe rooms and 28 Executive rooms.
- This hotel has a staff of 25, including 6 kitchen staff, 3 F&B service personnel, 3 front office staff, 8 housekeeping staff, 2 security personnel, 1 unit manager, and 2 maintenance workers.
Hotel 2:
- It is a business hotel with 40 keys.
- The hotel is in close proximity to IT companies, banks, and other commercial establishments.
- Project Hotel acquired this hotel in 2021 and started operations in Q4 of FY21.
- It has multiple dining outlets, Spa, Salon, Health Club and well equipped Meeting Facilities, 31 Deluxe rooms and 9 Executive rooms
- This hotel has a staff of 27, including 6 kitchen staff, 3 F&B service personnel, 4 front office staff, 8 housekeeping staff, 2 sales staff, 2 security personnel, and 2 maintenance workers.
Proposal
Industry
Hospitality
Sub Industry
Hotels
Deal Size
INR 35 - 38 Cr
Motives For Sellout
Strategic Realignment
Management is open to continue with the business for handholding the new investor/buyers
Business Operation Information
Industry
Hospitality
Sub-Industry
Hotels
Division
Division`s Buyers/Customers
Division`s Products/Services
Financial Information |
2020 (in Cr) | 2021 (in Cr) | 2022 (in Cr) | 2023 (in Cr) |
---|---|---|---|---|
Sales |
N.D | INR 1.2 Cr | INR 3.77 Cr | INR 6.47 Cr |
EBITDA |
N.D | N.D | N.D | N.D |
PAT |
N.D | N.D | N.D | N.D |
TOTAL DEBT |
N.D | N.D | N.D | N.D |
Business Documents
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