Description

Evaluate the project below, develop a robust financial model and presentation to our Board of Directors.

Project Value Proposition: Eco focused super luxury resort located along the Red Sea Coast. This mixed-use project includes world class hospitality as well as branded residential components for sale. Amaala is seeking to create a feasibility study to present to its board of directors. Below is a high-level summary of the proposed assets.

Hotel 1: (Strategy: Develop and Operate)

-          59 rooms – 65 sqm GFA each

-          26 suites – 150 sqm GFA each

-          9,500 sqm of GFA for all non – room areas

o   (inclusive of all front of house, back of house, circulation areas)

Hotel 2: (Strategy: Develop and Operate)

-          38 rooms – 65 sqm GFA each

-          17 suites – 150 sqm GFA each

-          7,000 sqm of GFA for all non – room areas

o   (inclusive of all front of house, back of house, circulation areas)

Hotel 2 - Branded Residences (Strategy: Develop and Sell + Rental Pool)

-          8 x 3-bedroom villa at 300 sqm GFA each

-          18 x 4-bedroom villa at 400 sqm GFA each

-          4 x 5-bedroom villa at 500 sqm GFA each

Rental Pool Mechanism

-          60% of branded residence inventory are assumed to enter into a rental pool mechanism

o   The rental pool inventory units will be operated in the same way as the hotel units

-          50% of room revenue of rental pool units will be distributed to the residence owners.

-          Remaining income will form part of the HOTEL 2’s cash flow

Development Model

·         Develop a project area program based on the initial guidelines above

o   Expand on the non-room areas by specifying the facilities and amenities that would be required in a super luxury resort destination.

·         Develop a flexible financial model based on the area program you develop

o   Develop P&Ls and project cash flows per component and on consolidated level

o   Build in a debt mechanism and assumptions into the cash flows

o   Advise on achievable project capital structure (debt, equity, pre-sales)

o   Calculate KPIs: Project IRR, Equity IRR, NPV, Payback, debt service coverage.

·         Make appropriate Revenue, CAPEX, OPEX and Financing assumptions. Support them with market research and/or benchmarks wherever available. If information is not available, make an educated assumption.

Board of Directors Report

·         Summarize the results of your research and model in an executive report to the Board

·         The report should show an area program summary (one slide), brief qualitative description of the asset’s components (one slide), project financials and KPIs and underlying market research