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www.redplanetindonesia.com
PT RED PLANET INDONESIA TBK
PUBLIC EXPOSE
Le Meridien Hotel, Jakarta
15 December 2014
RED PLANET INDONESIA TBK
2
At A Glance
The RPI business model has been designed to be scalable with an online reservation and dynamic
revenue management system, modular hotel design, disciplined development, and streamlined
operational processes.
Profitability is on-track to be superior for the industry: (i) rooms-only business model, (ii) modular
design can be accommodated to varying sites and allows for rapid construction, (iii) online dynamic
pricing drives high occupancy rates and revenue, (iv) 5-star sleeping experience at a reasonable
price, (v) ownership of assets as opposed to “management contracts business model” of competitors.
RPI’s management team benefit from years of international hotel management experience, in the
budget, as well as luxury, sectors.
RPI intends to add another 20 hotels to its portfolio by 2020, focused primarily on the Greater Jakarta
area.
Unparalleled Platform
& Scalable Business
Model
The demand for high quality value accommodation in Asia is booming, driven mostly by (i) rising
domestic leisure travel (+8 to +16% CAGR between 2005-11 in SEA) due to increasing standards of
living, (ii) booming SME business travel, (iii) rise in internet travel booking in the region.
The value segment of the hotel industry serves the largest demographic of customers and is
underserved. The margins for the value segment are also the highest in the hotel industry: EBITDA
margins north of 50% are readily achievable.
Large & Fast
Growing Market
PT Red Planet Indonesia Tbk (“RPI”), formerly called PT Pusako Tarinka Tbk, is the leading
developer/owner/operator of internationally branded budget hotels in Indonesia. IDX Ticker: “PSKT”.
Major asset acquisition of budget hotel portfolio completed in June 2014, resulting in RPI being the
only listed budget hotel company. It currently owns and operates 8 hotels.
RPI is listed on the Bursa Efek Indonesia.
RPI’s main business is ownership and operations of budget hotels – main competitors only manage
hotels.
The Company
IDX Ticker: PSKT
3
4
On 20 May 2014, a press conference was held at the Ritz-Carlton Jakarta where more than
50 members of the local and regional media attended to cover PT Pusako Tarinka’s
acquisition of the Red Planet Hotels’ Indonesian platform, with the company to be renamed
PT Red Planet Indonesia
Left to right: Mark Reinecke (Red Planet Hotels, CIO), Hapsoro (Red Planet
Indonesia, President Commissioner), Suwito (Red Planet Indonesia, President
Director), Tim Hansing (Red Planet Hotels, CEO)
Portfolio Acquisition Press Conference
Budget Hotel Portfolio Development
5
H2 2012 2013
18 March 2013
Pekanbaru hotel opened
(second hotel in Indonesia)
2014
31 August 2013
Solo hotel opened
(third hotel in Indonesia)
19 December 2013
Bekasi hotel opened
(fourth hotel in Indonesia)
1 March 2014
Makassar hotel opened
(sixth hotel in Indonesia)
27 February 2014
Palembang hotel opened
(fifth hotel in Indonesia)
3 hotels opened in 2014
12 July 2012
Pasar Baru hotel opened
(first hotel in Indonesia)
2 July 2014
Surabaya hotel opened
(seventh hotel in Indonesia)
All budget hotel assets acquired
in June 2014
RPI Corporate Structure
6
PT Red
Planet Hotels
Indonesia
PT Red
Planet Hotel
Pekanbaru
PT Red
Planet Hotels
Tangerang
PT Red
Planet Hotel
Surabaya
PT Red
Planet Hotel
Makassar
PT Red
Planet Hotel
Palembang
PT Planet
Merah
Delapan
PT Planet
Merah
Sembilan
PT Planet
Merah
Sepuluh
PT Red
Planet Hotel
Bekasi
PT Planet
Merah
Depok
PT Red
Planet
Hotels Solo
PT Red Planet Indonesia Tbk (PSKT)
(Listed Company)
PT Solusi
Bintang
Cemerlang
400
450
500
550
600
650
700
750
800
850
900
2-Jan-14 2-Feb-14 2-Mar-14 2-Apr-14 2-May-14 2-Jun-14 2-Jul-14 2-Aug-14 2-Sep-14 2-Oct-14 2-Nov-14 2-Dec-14
(Ru
pia
h)
PSKT Share Performance
Pre-asset acquisition Rights Offering Period PSKT trading as Red Planet Indonesia
Red Planet Indonesia (PSKT) Share Price Trend
7
Budget hotel
portfolio acquisition
after Rights Offering
PSKT begins trading as
Red Planet Indonesia
Board of Commissioners
8
Hapsoro
President
Commissioner
Hapsoro is an accomplished
business personality, holding
various positions as
Commissioner and Director in
numerous well-known
Indonesian companies
operating in the energy and
infrastructure sectors.
Timothy Hansing
Commissioner
A hotelier by training, Tim has
held numerous senior
management positions within
the hospitality industry
including Movenpick Hotels &
Resorts, Arthur Andersen, and
Pannell Kerr Forster. Before
founding Red Planet Hotels,
Tim was Director of
Development for Kingdom
Hotels in Dubai, overseeing the
development of a global hotel
portfolio.
Suganto Gunawan
Commissioner
Suganto joins the Board of
Commissioner of RPI as
Independent Commissioner
with broad experience in
financial advisory, research,
investments, and operations.
He has previously worked with
PT Kim Eng Securities, PT
Semesta Indovest, PT Asia
Electric Industries and is
presently Director of Corporate
Finance for PT Geo Link
Nusantara.
Adang Ruchiatna
Commissioner
Prior to being appointed as
Independent Commissioner
at RPI, Adang has had a
distinguished military career
attaining the rank of Major
General. In addition to
numerous command roles,
he was also Inspector
General for the Ministry of
Social Affairs and serves as
member of House of
Representatives
Commission VIII.
Board of Directors
9
Ng Suwito
President Director
Prior to being appointed as
President Director of RPI,
Suwito founded Republik
Capital Management Limited in
2004 – a leading real estate
advisor, manager, and investor.
Prior to that, he was Chief
Operating Officer of CB
Richard Ellis (CBRE), where he
oversaw CBRE’s business
operation in Greater Asia.
Mark Reinecke
Director
Mark is a founder of Red
Planet Hotels, and has
previously served in senior
positions for numerous private
equity financed businesses as
well as being a director of
several listed companies.
Educated at the London
School of Economics, Mark
started his career with
Indosuez W.I. Carr Securities
and Barings Securities.
Dyakso
Director
Dyakso has held a number
of senior positions in
prominent companies
before being appointed as
Director of RPI. He is
currently the President
Director of PT Multiperkasa
Teguh, Commissioner of PT
Taman Puri Indah and
President Director of PT
Panen Arta Leasing.
Rivo Pamuji
Director
Rivolinggo has held a wide
range of senior positions in the
human resource, corporate
management, property
management and hospitality
operations. He is currently the
President Director of the Centra
Taum Seminyak Hotel (Bali) as
well as the Operations Director
of the Teraskota Entertainment
Center and Santika Hotel,
Tangerang Selatan.
RPI Management
10
Louis Poisson
Director of
Operations
With a strong and
distinguished hospitality
background from various
senior hotel operational
management positions with
market leading brands
including Radisson, Crown
Plaza, Ibis, Holiday Inn, his
last position prior to joining
RPI was the General
Manager of Harris Hotel &
Conventions Bekasi.
Nancy Nataleo
Chief Financial
Officer and
Corporate Secretary
Nancy began her career at
Pricewaterhouse Coopers
Jakarta, and has spent more
than 23 years in senior
management roles across
numerous disciplines including
accounting, finance, legal, HR
and operations in various
market leading firms, including
Ecolab, ISS, and Elang
Mahkota Teknologi Tbk.
Binariyanti
Sembiring
Director of Sales
and Marketing
Bina has more than 20 years’
experience in hotel sales and
marketing departments for both
local and international hotel
chains including Starwood,
Aston, and Accor. Her most
recent position was as Corporate
Director of Sales for Best
Western International Indonesia
prior to joining Red Planet
Indonesia.
RPI Management
11
Widyana
Wirahaditenaya
Human Resource
Manager
Widyana has more than 25
years of experience in the
hospitality industry through
various management roles in
the Areowisata Group, a
subsidiary of Garuda Indonesia,
including her most recent role
as a Human Resources
Development Manager for Hotel
Management.
Iqbal Prastowo
Director Of
Investor Relations
Starting his career in
Hospitality Operations,
particularly in F&B and C&C
department, Iqbal has crossed
industry borders to various
fields including Mining, Media,
and Financial Services as
Investor Relations Manager
for public listed companies
such as Timah (Persero) and
MNC Investama.
Wibowo Tedjowana
Project Director
Wibowo has more than 20
years of experience in
construction management and
property development . Prior to
joining RPI, he was General
Manager of Business
Development for PT Matahari
Putra Prima and responsible
for overseeing the development
of hotel, apartment ,and
shopping mall projects.
RPI’s Budget Hotels Locations
12
Operating hotels
On the planning stages
Tune Hotel Pasar Baru 168 rooms; Opened 12 July 2012
13
Tune Hotel Pekanbaru 140 rooms; Opened 18 March 2013
14
Tune Hotel Solo 153 rooms; Opened 30 August 2013
15
Tune Hotel Bekasi 157 rooms; Opened 19 December 2013
16
Tune Hotel Palembang 147 rooms; Opened 27 February 2014
17
Tune Hotel Makassar 144 rooms; Opened 1 March 2014
18
Tune Hotel Surabaya 156 rooms; Opened 2 July 2014
19
BUSINESS PLAN
20
Attractive Returns Profile
Favourable Indonesian
travel trends
Strong Corporate Backing
De-risked Platform
Positioned for Growth
Fast & Superior
Build Quality
Company Highlights
21
Red Planet
Indonesia
5 Star Sleeping Experience at a 1-Star Price
5-Star Beds. Beds feature high quality spring
mattress beds with duck down pillows and 250-
thread count sheets, pillow cases, and duvets,
custom-made by bed makers who supply 5-star
hotels - the basis of our promise for a 5-star
sleeping experience
Power Showers. Each of the rooms feature
attached private bathrooms with high-pressure
power showers
Central & Convenient Locations. All hotels are
strategically located close to major shopping,
sightseeing, and business destinations. Inside each
hotel, guests will find established convenience store
operators and branded food & beverage outlets
providing reliable facilities within easy reach
Clean Environment. Hotels provide daily
housekeeping services to ensure guests have a
clean and pleasant stay
24-Hour Security. Hotels use electronic key card
access into rooms, CCTV cameras throughout the
hotel, round-the-clock on-duty security guards, and
no access to the main lobby without a keycard past
midnight
22
Business Strategy
Ownership of hotels (gaining ALL hotel cashflows) and not just
management contracts (only small fee income streams)
Internet-based system allows for highly-centralised control and low-cost
distribution
Modular property design and construction approach is geared towards
efficiency, low costs, and rapid build-out
Strategic
partnerships
Continued focus on budget airline customers who are significant drivers of
demand for limited service / budget accommodation
Development growth along high-traffic route network in Indonesia
Partnerships with other budget airlines to market our hotels
Scalable and
profitable business
model
Focus on
operational
efficiency
Operating model focus on core sleep/shower demand
Rooms-only model with limited amenities and no F&B services
Ancillary revenues through the sale of advertising space, leasing of retail
space, and extra services (e.g. air conditioning, TV, Wi-Fi, bathroom
amenities, etc.)
Opportunistic
growth
Opportunities to acquire refurbishment assets for less than replacement
costs
The ability to capitalise on these opportunities will further enhance the
Company’s returns profile
23
Asian Limited Service Hotel Industry Overview
Limited service hotels target value-conscious customers seeking affordable
and comfortable lodging
Typical hotels are smaller, offer limited services, and are cheaper to
construct compared to hotels which offer a full suite of services such as
restaurants, room-service, gyms, conference facilities, and full in-room
amenities
What are limited
service hotels?
Affordable lodging which provides high-quality products and services
Efficient reservation and effective sales channels
Consistent product and service features across the chain
Qualities of a
successful limited
service hotel
Travellers who either cannot afford, do not want, or do not need, the
services of more expensive mainstream hotels
Weekday stays are driven by value conscious business travellers from the
rapidly increasing small to medium sized enterprises
Primary weekend guests are leisure travellers, including extended families,
students, and young adults
Target customers
Fast-growing and fragmented industry with no dominant pan-Asian chain
Incumbents are primarily fragmented “mom and pop” operators
Ownership
24
Favourable East Asian Tourism Trends
Domestic travel is a significant driver of demand for low price hotels
As per WTTC, domestic travel and tourism spending in Red Planet’s
geographic markets has grown at a 2005-2013CAGR of between 7.8% to
15.8%
Proliferation of low
cost airline carriers
A significant budget airline airlift exists to Red Planet’s proposed hotel
locations: Tiger, Jetstar, Nok, Cebu Pacific, One-Two-Go, Firefly, Lion,
Linus, Mandala Airlines, and Adam Air
These airlines are all on established growth paths and have passenger
demographics of a typical Red Planet hotel customer
Growing domestic
travel trend
Opportunity to
bundle the Tune
Hotel offering with
other low cost
carriers
Budget carriers other than Air Asia, starting with Tiger, have begun
promoting Red Planet’s hotels on their websites
Offers include bundled airfare/room package to provide a more affordable
travel package
Red Planet’s budget hotels are well positioned to capitalise on favourable industry dynamics and
become the leading pan-Asian limited service hotel chain
25
Key Competitive Strengths to Build Scale
Different to other budget hotel chains which manage other people’s hotels for small fees
– Red Planet is the developer, owner, and operator of all its hotels
Large budget carrier route network in Indonesia underpins demand for Tune Hotels
Key destinations in Southeast Asia
Located within very close proximity to key demand generators, allowing multiple hotels in
one destination
Model allows refurbishment opportunities, which requires half of the capex of a new build
Not competing with other developers for prime sites
Model is tremendously scalable in mega-cities such as Jakarta
26
Fixed costs are only 26% of total operational costs, variable costs are 74% of total
operational costs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% Land Lease Payment
Insurance (% of Hard Cost)
Property Taxes (% of TGR)
MRSF
Employee Expenses
Admin & General
FF&E Reserve (% of TGR)
Others
POMEC*
Franchising Fee
Marketing
Rental & Advertising
Ancillary
Rooms
Variable
Costs
Fixed
Costs
(Monthly Revenue Service Fee)
(Property Operations, Maintenance and Energy Costs)
27
RPI Hotels - High Component of Variable Costs
COMPETITION &
RPI’S DIFFERENTIATING FACTOR
28
29
Competition Analysis
Our Competition Why We Are Different
Only international listed budget hotel operator in Indonesia
RPI develops, owns, and manages ALL its hotels
Superior service standards on par with 5-star hotels
Regional network – Red Planet Hotels can be found in Indonesia, Thailand, Philippines, and Japan
5-star beds – same sleep quality as you would experience in a 5-star hotel
All hotels managed by RPI, no franchisees. Hence, we manage service quality standards
Consistency – anywhere you travel in Southeast Asia, all Red Planet Hotels will deliver same products and services
FINANCIAL REVIEW
30
31
YTD P&L Statement – Full Budget Hotel Portfolio
Red Planet Hotels
Comparative Profit & Loss Statements
INDONESIA
Month SEPTEMBER Year To Date Growth
Local currency: IDR Actual Last Year Y-o-Y
Hotel capacity
1,050
460 128%
Total Available Room Nights
210,353
80,114 163%
Total Rooms Sold
124,918
40,752 207%
Revenues 28,420,916,329 10,314,454,820 176%
Expenses 5,504,651,613 1,582,248,879 248%
GA, Utilities, Marketing 13,415,432,841 4,603,270,406 191%
Gross Operating Profit 9,500,831,875 4,128,935,535 130%
EBITDA 8,599,381,856 3,856,541,990 123%
32
Summary Financial Performance
9M14 9M13 Growth
Market Cap - period end Billion Rupiah 927 84 1,004%
Gross Profit Margin % 62 58 7%
Liabilities to Total Assets % 56 23 143%
Revenues Million Rupiah 28,421 10,314 176%
Gross Operating Profit Million Rupiah 9,501 4,129 130%
EBITDA Million Rupiah 8,599 3,856 123%
Cash & Cash Equivalent Million Rupiah 12,480 3,785 230%
Revenue Million Rupiah 50,878 28,547 78%
Total Assets Million Rupiah 573,461 30,773 1,764%
Total Liabilities Million Rupiah 320,754 6,951 4,515%
Equity Million Rupiah 252,707 23,822 961%
SUMMARY OF OPERATING STATISTICS
33
1,050 Rooms and Growing
34
168
308
618
909
8 Hotels - 1,050 Rooms
0
200
400
600
800
1,000
1,200
H2 2012 H1 2013 H2 2013 H1 2014 H2 2014
Total No. of Rooms in Indonesia
10-month RevPAR CAGR at 61%
35
Lebaran
Effect
60,000
80,000
100,000
120,000
140,000
160,000
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14
Re
vP
AR
(ID
R)
Indonesia Portfolio RevPAR (Jan-Oct 2014)
RevPAR
36
Jan-Dec Average Daily Nights Booked +258%
211
212
334
401
546 580 596
713
617
745 781
757
467
-
200
400
600
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nights Booked/Day Trend
Nights Booked/Day Month Avg YTD Avg/Day
37
Jan-Dec Average Daily Revenue Booked +249%
48.1
55.1
83.1
96.2
112.9 120.6 121.5
170.0
136.2
152.2 157.3
168.1
85.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
IDR
millio
n
Revenue Booked/Day Trend
Revenue Booked/Day Month Avg YTD Avg/Day
* USD/IDR exchange rate as of 8 Dec 2014
0
1,000
2,000
3,000
4,000
5,000
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14
Monthly Rooms Sold
Pasar Baru
Pekanbaru
Solo
Bekasi
Palembang
Makassar
Surabaya
38
Jan-Nov Same-Store-Basis Rooms Sold +60%
Lebaran
Effect
* Same Store indicates first 3 hotels operational for more than a year (Pasar Baru, Pekanbaru, and Solo)
0
200
400
600
800
1,000
1,200
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14
IDR
millio
n
Monthly Total Revenue
Pasar Baru
Pekanbaru
Solo
Bekasi
Palembang
Makassar
Surabaya
39
Jan-Nov Same-Store-Basis
Monthly Total Revenue +66%
* Same Store indicates first 3 hotels operational for more than a year (Pasar Baru, Pekanbaru, and Solo)
Lebaran
Effect
Higher Rooms Volume Driving GOP Optimisation
40
0
20,000
40,000
60,000
80,000
100,000
120,000
0
6,000
12,000
18,000
24,000
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14
GO
P/O
ccu
pie
d R
oo
m (
IDR
)
No
. o
f R
oo
ms
So
ld
Rooms Sold and GOP Trend
Rooms Sold GOP/Occupied Room
Lebaran
Effect
EBITDA Levels Reaching Optimum Levels
41
1.49 1.44
2.42 2.81
3.25 3.63 3.67
5.06 4.64
5.13
31%
9%
13%
25%
30%
36%
30%
39%
36%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1.00
2.00
3.00
4.00
5.00
6.00
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14
EB
ITD
A %
IDR
bil
lio
n
Total Revenue and EBITDA %
Total Revenue EBITDA %
Lebaran
Effect
CORPORATE SOCIAL RESPONSIBILITY
42
43
City Beautification Project (March 2013)
44
City Beautification Project (March 2013)
45
Brighten the Day of a Child (November 2013)
46
Teddy Bear’s Picnic (May 2014)
THE FUTURE
47
2015 Corporate Strategy
RPI, formerly a single-asset hotel company, has repositioned its business in
2014 through the acquisition of a leading budget hotel portfolio
RPI will build out its hotel portfolio aggressively, concentrating on Greater
Jakarta
RPI will continue to be a hotel developer, owner, and operator – a clear
differentiating factor when compared to other budget hotel operators, whose
only source of income is management fees
RPI will increase the liquidity of its stock, and broaden the ownership base,
through roadshows and public forums in 2015
RPI’s stock shall be more widely covered by analysts in 2015
48
Jakarta Focused Pipeline
RPI will continue to build a solid pipeline of strategic locations in central Jakarta
Locations identified and in negotiations for 1Q 2015 are:
Jakarta Airport
Jl. Tendean
Kelapa Gading, Cikini, Tebet, and Tanah Abang among other locations where
sites are being sourced
RPI will also actively look for sites in Greater Jakarta and key locations in
Indonesia such as Yogyakarta, Bandung, and Medan
49
Big Focus on Jakarta
50
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