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N 5,250,000,000 TERM LOAN For THE FINANCE OF 5 STAR HOTEL IN ABUJA FINANCIAL MODEL Jul-10 HUDSON CONSULTING GROUP

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Financial Model for an hotel in Nigeria

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Page 1: Financial Model Hotel

N 5,250,000,000 TERM LOAN

For

THE FINANCE

OF 5 STAR HOTEL IN ABUJA

FINANCIAL MODEL Jul-10

HUDSON CONSULTING GROUP

Page 2: Financial Model Hotel

04/17/2023 2 document.xlsx

PROJECT INFORMATION:

Company Westin Nova

Sponsor: Treadstone Mall

1 TOTAL PROJECT COSTItems Percentage N

LAND 600,000,000

SUBSTRUTURE 300,000,000

FRAMES 300,000,000

UPPER FLOORS 300,000,000

Suspended ribbed slab

STAIRCASES 50,000,000

Staircases, Balustrading

WALLS 100,000,000

Reinforced Concrete Walls, Blockwall, Curtain Walling,

ROOF CONSTRCUTION & ROOF COVERING 60,000,000

Concrete roof slab, concrete fascia, longspan aluminium covering

ELECTRICAL INSTALLATIONS 810,000,000

MECHANICAL INSTALLATIONS 740,000,000

WINDOWS AND DOORS 250,000,000

Flush doors, Aluminium doors, Aluminium Windows, Sundries

FLOOR, WALL & CEILING FINISHINGS 570,000,000

Return to content table

Concrete Retaining Foundation, Walls & Pilling, Ground Beams, Ground Slap, Subsoil Investigation etc

Building frame, colums, beams, floor slaps, staircases, concrete vehicle ramps,lift shaft etc

Electrical equipment & installations, luminaries & light fittings, telephone, telex, TV, PABX, CCTV etc

Plumbing installations, Lift Installation, Air-conditioning, Fire Fighting Installation

Page 3: Financial Model Hotel

04/17/2023 3 document.xlsx

EQUIPMENT, FITTINGS & FURNITURE 370,000,000

PAINTING & DECORATING 270,000,000

EXTERNAL WORKS 80,000,000

TOWN PLANNING APPROVAL/DOCUMENTATION COST 800,000,000

PROFESSIONAL FEES 800,000,000

CONTIGENCIES - PRICING AND DESIGN RISKS (10%) 10% 500,000,000

Financing Fees 600,000,000

Other Professional Fees 0

ESTIMATED CONSTRUCTION AND DEVELOPMENT COST 7,500,000,000 7,200,000,000

2 FUNDING STRUCTURE% of capital

Equity contribution 30% 2,250,000,000

Debt finance (Project finance) 70% 5,250,000,000

Total 100% 7,500,000,000

FINANCING TERMS Naira

Debt Amount 5,250,000,000

Smooth Rendering, Vitrified Floor Tiles, Wall Tiles, Suspended Ceiling, Granolithic Floor

Bedrooms Furniture, Kitchen Fittings, Kitchen Equipment, Bar Reception, Restaurant

Concrete paving & kerbs, landscaping, borehole, water & sewage treatment plants, water & fuel storage tanks etc

Project Management, architectural, structural, mechanical & electrical and quantity surveying

Page 4: Financial Model Hotel

04/17/2023 4 document.xlsx

Equity Contribution 2,250,000,000

All-in Interest Rate 10%

Tenor (years) 10 years

Moratorium (on principal and interest capitalised for the period) 2 years

3 GENERAL ASSUMPTIONS

Base Exchange rate (=N=/$) 160

Tax rate 32%

Days in the year 365

Months in a year 12

Hours in days 24

Fund Raising Cost 7%

Building Depreciation rate 2%

Furniture, fittings and Equipment depreciation rate 20% Office rent per sqm

Occunpancy Rate for Hotels 65% 50,000

Occunpancy Rate for Offices 80%

Usable rate for car parks 90%

Percentage of Operation Cost to Revenue 28%

Escalation rate for revenues and expenses 10%

Dividend Policy 0

ACTIVITY AREA Number Price per day per unit

0 0

Deluxe Rooms 100 70,400

Deluxe Suites 23 250,000

Presidential Suite 2 450,000

0 0

15.0%

Food, Beverages and Drinks as percentage of other revenues 25%

Other Operated Departments as percentage of revenue

Page 5: Financial Model Hotel

04/17/2023 5 document.xlsx

300,000,000

67,500,000

Page 6: Financial Model Hotel

04/17/2023 6 document.xlsx

6000 300,000,000

Page 7: Financial Model Hotel

Construction 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

INFLOWS =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

Equity 2,250,000,000 - 67,500,000 - - - - - - - - - - Long Term Debt 5,250,000,000 - - - - - - - - - - - -

Revenue from Operations - 3,972,984,120 4,370,282,532 4,807,310,785 ### ### ### ### ### ### ### ### 11,335,387,366

TOTAL INFLOWS 7,500,000,000 3,972,984,120 4,437,782,532 4,807,310,785 ### ### ### ### ### ### ### ### ###

OUTFLOWS

Capex 7,500,000,000 - - - - - 407,000,000 - - - - 407,000,000 -

Direct Cost 1,112,435,554 1,242,579,109 1,346,047,020 ### ### ### ### ### ### ### 2,885,371,329 3,173,908,462

Indirect Cost (Operating Expenses) 749,183,448 822,399,217 998,683,544 ### ### ### ### ### ### ### 2,273,136,989 2,500,450,688

Debt Repayment - 1,177,787,606 1,177,787,606 1,177,787,606 ### ### ### ### ### - - - - TOTAL OUTFLOW 7,500,000,000 3,039,406,608 3,242,765,932 3,522,518,170 ### ### ### ### ### ### ### ### ###

Net Cashflow - 933,577,512 1,195,016,600 1,284,792,615 ### ### ### ### ### ### ### ### 5,661,028,215

Cumulative Net Cashflow - 933,577,512 2,128,594,112 3,413,386,727 ### ### ### ### ### ### ### ### ###

Debt Service Coverage Ratio - 2.43 2.71 2.94 3.23 3.56 3.57 4.30 4.73 - - - -

GEARED VALUATION Year 0 1 2 3 4 5 6 7 8 9 10 11 12

FCF (7,500,000,000) 2,111,365,118 2,372,804,206 2,462,580,222 2,689,032,542 2,905,002,586 2,788,502,845 3,515,053,129 3,866,558,442 4,253,214,287 4,678,535,715 4,739,389,287 5,661,028,215

Cumulative Net Cash Flow (5,388,634,882) (3,015,830,676) (553,250,454) 2,135,782,088 5,040,784,674 7,829,287,519 11,344,340,649 15,210,899,091 19,464,113,377 24,142,649,093 28,882,038,379 34,543,066,595

GEARED VALUATION

First Year Cashflow Positive 4

Payback Period 3.21 years

NPV 26.78 Billion

IRR 37%

UNGEARED VALUATION Year 0 1 2 3 4 5 6 7 8 9 10 11 12

FCFE (2,250,000,000) 933,577,512 1,195,016,600 1,284,792,615 1,511,244,936 1,727,214,980 1,610,715,239 2,337,265,523 2,688,770,836 4,253,214,287 4,678,535,715 4,739,389,287 5,661,028,215

Cumulative Net Cash Flow (1,316,422,488) (121,405,888) 1,163,386,727 2,674,631,663 4,401,846,643 6,012,561,881 8,349,827,404 11,038,598,240 15,291,812,527 19,970,348,242 24,709,737,528 30,370,765,744

UNGEARED VALUATION

First Year Cashflow Positive 3

Payback Period 2.09 years

NPV 37.71 Billion

IRR 59%

WACC calculations:

Risk Free Rate (Avg rate on 20 Year FGN & US 10.00%

Assumed beta 1.20

Equity Risk Premium 6.00%

Cost Of Equity 17.20%

After Tax Debt cost 6.66%

Ratio of equity 30%

Ratio of debt 70%

WACC 9.82%

Return to Table of Content

C13
Wale: Yr 0 Opex and Staff Cost Capitalised
D13
Benjamin: 50% Yr 1 Opex and Staff Cost Capitalised
Page 8: Financial Model Hotel

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26

=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707 20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370 39,132,831,507 43,046,114,658

### ### ### ### ### ### ### ### ### ### ### ### ### ###

- - - 407,000,000 - - - - 407,000,000 - - - - -

3,491,299,309 3,840,429,240 4,224,472,164 4,646,919,380 5,111,611,318 5,622,772,450 6,185,049,695 6,803,554,664 7,483,910,130 8,232,301,144 9,055,531,258 9,961,084,384 10,957,192,822 12,052,912,104

2,750,495,757 3,025,545,333 3,328,099,866 3,660,909,852 4,027,000,838 4,107,540,854 4,189,691,672 4,273,485,505 4,358,955,215 4,446,134,319 4,535,057,006 4,625,758,146 4,718,273,309 4,812,638,775

- - - - - - - - - - - - - - ### ### ### ### ### ### ### ### ### ### ### ### ### ###

6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 ### ### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ### ### ### ### ### ###

- - - - - - - - - - - - - -

13 14 15 16 17 18 19 20 21 22 23 24 25 26

6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841 23,457,365,376 26,180,563,779

40,770,197,632 47,620,041,772 55,154,870,327 63,036,181,737 72,153,324,288 82,504,341,161 94,219,062,990 107,440,432,336 121,918,817,456 138,641,457,506 157,392,052,306 178,380,511,147 201,837,876,523 228,018,440,302

13 14 15 16 17 18 19 20 21 22 23 24 25 26

6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841 23,457,365,376 26,180,563,779

36,597,896,781 43,447,740,921 50,982,569,476 58,863,880,886 67,981,023,437 78,332,040,310 90,046,762,139 103,268,131,485 117,746,516,605 134,469,156,655 153,219,751,455 174,208,210,296 197,665,575,672 223,846,139,451

Page 9: Financial Model Hotel

Projected Revenue 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

REVENUE =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

Revenue 3,972,984,120 ### ### ### ### ### ### ### ### ### ###

Rental Income 3,972,984,120 ### ### ### ### ### ### ### ### ### ###

EXPENSES

TOTAL OPEX 1,861,619,002 ### ### ### ### ### ### ### ### ### 5,158,508,319

Depreciation 216,600,000 216,600,000 216,600,000 216,600,000 216,600,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000

TOTAL OPERATING EXPENSES 2,078,219,002 ### ### ### ### ### ### ### ### ### ###

EARNINGS BEFORE INTEREST AND TAX 1,894,765,118 ### ### ### ### ### ### ### ### ### ###

Interest Expense 620,283,258 565,647,832 505,658,134 439,789,446 367,465,626 288,054,072 200,860,185 105,121,298 0 0 0

PROFIT BEFORE TAX 1,274,481,860 1,590,556,374 1,740,322,088 2,032,643,097 2,320,936,960 2,683,448,773 3,090,192,944 3,537,437,144 4,029,214,287 4,454,535,715 4,922,389,287

Provision for Tax 407,834,195 508,978,040 556,903,068 650,445,791 742,699,827 858,703,607 988,861,742 ### ### ### 1,575,164,572

PROFIT AFTER TAX 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715

Distributed As Follows

Dividend - - - - - - - - - - -

Retained Earnings 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715

Return On Investment(%) 11.56% 14.42% 15.78% 18.43% 21.04% 24.33% 28.02% 32.07% 36.53% 40.39% 44.63%

48%22%

Projected Balance Sheet 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

Net Book Value Of Assets 7,283,400,000 7,066,800,000 6,850,200,000 6,633,600,000 6,417,000,000 6,600,000,000 6,376,000,000 6,152,000,000 5,928,000,000 5,704,000,000 5,887,000,000 Cash and Marketable Securities 933,577,512 2,128,594,112 3,413,386,727 4,924,631,663 6,651,846,643 8,262,561,881 10,599,827,404 13,288,598,240 17,541,812,527 22,220,348,242 26,959,737,528

Total Assets 8,216,977,512 9,195,394,112 ### ### ### ### ### ### ### ### ###

Deffered tax Liabilities 407,834,195 916,812,235 1,473,715,303 2,124,161,094 2,866,860,921 3,725,564,529 4,714,426,271 5,846,406,157 7,135,754,729 8,561,206,157 10,136,370,729

Short Term Debt 0 0 0 0 0 0 0 0 0 0 0

Long-Term Debt 5,771,916,652 5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308 0 0 0 0

Total Liabilities 6,179,750,847 6,076,589,112 5,961,362,708 5,873,810,338 5,806,188,185 5,775,158,258 5,787,092,579 5,846,406,157 7,135,754,729 8,561,206,157 ###

Net Total Assets 2,037,226,665 3,118,804,999 4,302,224,019 5,684,421,325 7,262,658,458 9,087,403,623 ### ### ### ### ###

Financed By Share Capital 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 Share Premium 0 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 Cummulative Retained Earnings (212,773,335) 868,804,999 2,052,224,019 3,434,421,325 5,012,658,458 6,837,403,623 8,938,734,825 11,344,192,083 14,084,057,798 17,113,142,084 20,460,366,799

Total Shareholders' Equity 2,037,226,665 3,186,304,999 4,369,724,019 5,751,921,325 7,330,158,458 9,154,903,623 ### ### ### ### ###

Pat growth Rate 0% 25% 9% 17% 14% 16% 15% 14% 14% 11% 11%

Difference - (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000)

Return to content table

Page 10: Financial Model Hotel

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26

=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

5,674,359,151 6,241,795,066 6,865,974,572 7,552,572,029 8,307,829,232 9,138,612,156 9,730,313,304 ### ### ### ### ### ### ### ###

224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5,437,028,215 6,003,131,037 6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 ### ### ### ### ### ### ### ### ###

1,739,849,029 1,921,001,932 2,120,270,125 2,339,465,137 2,580,579,651 2,845,805,616 3,240,645,399 3,677,030,985 4,159,158,191 4,691,643,239 5,279,564,816 5,928,510,336 6,644,626,829 7,434,676,920 8,306,100,409

3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 ### ### ### ### ###

- - - - - - - - - - - - - - -

3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 ### ### ### ### ###

49.30% 54.43% 60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84% 132.93% 149.59% 167.97% 188.26% 210.65% 235.34%

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26

=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

5,663,000,000 5,439,000,000 5,215,000,000 4,991,000,000 5,174,000,000 4,950,000,000 4,726,000,000 4,502,000,000 4,278,000,000 4,461,000,000 4,237,000,000 4,013,000,000 3,789,000,000 3,565,000,000 3,422,400,000 32,620,765,744 38,847,896,781 45,697,740,921 53,232,569,476 61,113,880,886 70,231,023,437 80,582,040,310 92,296,762,139 ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

11,876,219,758 13,797,221,690 15,917,491,815 18,256,956,952 20,837,536,604 23,683,342,220 26,923,987,619 30,601,018,605 34,760,176,795 39,451,820,034 44,731,384,850 50,659,895,186 57,304,522,015 64,739,198,935 73,045,299,344

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

### ### ### ### ### ### ### ### ### ### ### ### ### ### 73,045,299,344

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000

24,157,545,986 28,239,675,091 32,745,249,106 37,716,612,524 43,200,344,282 49,247,681,217 56,134,052,691 63,947,743,535 72,785,954,690 82,755,696,571 93,974,771,805 ### ### ### ###

### ### ### ### ### ### ### ### ### ### ### ### ### ### ###

10% 10% 10% 10% 10% 10% 14% 13% 13% 13% 13% 12% 12% 12%

(67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) 13,900,000

Page 11: Financial Model Hotel

30-December 30-December 30-December 30-December 30-December

FINANCIAL SUMMARY Y1 Y2 Y3 Y4 Y5

N N N N N

Revenue 3,972,984,120 ### 4,807,310,785 ### ###

Total Operating Expenses 2,078,219,002 ### 2,561,330,564 ### ###

1,894,765,118 ### 2,245,980,222 ### ###

Net Profit/(Loss) 866,647,665 ### 1,183,419,020 ### ###

Cumulative Net Cashflow 933,577,512 ### 3,413,386,727 ### ###

Return On Invested Capital 11.56% 14.42% 15.78% 18.43% 21.04%

GEARED VALUATION UNGEARED VALUATION

Payback Period 2.09 years Payback Period 3.21 years

NPV 37.71 Billion NPV 26.78 Billion

IRR 59% IRR 59%

Return on Equity 39% 48% 53% 61% 70%

Residual Valuation (Dollars) ###

Return to content table

Earnings Before Interest & Tax

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

RevenueNet Profit/(Loss)Cumulative Net Cashflow

Page 12: Financial Model Hotel

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

RevenueNet Profit/(Loss)Cumulative Net Cashflow

Page 13: Financial Model Hotel

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December

Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13

N N N N N N N N

### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ###

24.33% 28.02% 32.07% 36.53% 40.39% 44.63% 49.30% 54.43%

81% 93% 107% 122% 135% 149% 164% 181%

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

RevenueNet Profit/(Loss)Cumulative Net Cashflow

Page 14: Financial Model Hotel

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

RevenueNet Profit/(Loss)Cumulative Net Cashflow

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30-December 30-December 30-December 30-December 30-December 30-December 30-December

Y14 Y15 Y16 Y17 Y18 Y19 Y20

N N N N N N N

### ### ### ### ### ### ###

### ### ### ### ### ### ###

### ### ### ### ### ### ###

### ### ### ### ### ### 8,838,211,155

### ### ### ### ### ### ###

60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84%

200% 221% 244% 269% 306% 347% 393%

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30-December 30-December 30-December 30-December 30-December 30-December

Y21 Y22 Y23 Y24 Y25 Y26

N N N N N N

### ### ### ### ### ###

### ### ### ### ### ###

### ### ### ### ### ###

### ### ### ### ### ###

### ### ### ### ### ###

132.93% 149.59% 167.97% 188.26% 210.65% 235.34%

443% 499% 560% 628% 702% 784%

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Initial Loan

Initial Loan Amount (NGN) 5,250,000,000 Amortised InterestLoan Amount (NGN) 6,329,421,000 Interest Rate (%) 10%Loan Life (Years) 10Repayment Period (Years) 8Moratorium (Years) 2

Annual Repayment (NGN) 1,177,787,606

Year 1 Year 2 Opening balance 5,250,000,000 6,329,421,000 5,771,916,652Interest (to P&L) 1,079,421,000 620,283,258 565,647,832Principal Repayment 557,504,348 612,139,774Annual Repayment 1,177,787,606 1,177,787,606Closing Debt (to BS) 6,329,421,000 5,771,916,652 5,159,776,877

Year Year-Start AnnualBalance Payment

1 6,329,421,000 1,177,787,6062 5,771,916,652 1,177,787,6063 5,159,776,877 1,177,787,6064 4,487,647,405 1,177,787,606

2,832,589,388 5 3,749,649,244 1,177,787,6066 2,939,327,264 1,177,787,6067 2,049,593,729 1,177,787,6068 1,072,666,308 1,177,787,6069

1011121314

Return to content table

Construction Period

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151617181920

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Year 3 Year 4 Year 5 Year 6 Year 7 5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729

505,658,134 439,789,446 367,465,626 288,054,072 200,860,185672,129,472 737,998,161 810,321,980 889,733,535 976,927,421

1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,6064,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308

Interest Principal Year-endComponent Repaid Balance620,283,258 557,504,348 5,771,916,652565,647,832 612,139,774 5,159,776,877505,658,134 672,129,472 4,487,647,405439,789,446 737,998,161 3,749,649,244367,465,626 810,321,980 2,939,327,264288,054,072 889,733,535 2,049,593,729200,860,185 976,927,421 1,072,666,308105,121,298 1,072,666,308 0

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Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 1,072,666,308

105,121,2981,072,666,3081,177,787,606

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Year 16 Year 17 Year 18 Year 19 Year 20

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HOTEL FEASIBILITYAnalysis of Operating Expenditure

Power Year 1 Year 2 Year 3 Year 4 Year 5 Generating Capacity 500KVA 500KVA 500KVA 500KVA 500KVA No of Locations 2 2 2 2 2 Standard Fuel Consumption lt/hr 15.0 15.0 15.0 15.0 15.0Hours in Use 15 15 15 15 15 Fuel Cost 165 182 200 220 242 Days 365 365 365 365 365

Diesel Cost 27,101,250 29,811,375 32,792,513 36,071,764 39,678,940

Total Diesel Cost 27,101,250 29,811,375 32,792,513 36,071,764 39,678,940

Generator Maintenance and Service Year 1 Year 2 Year 3 Year 4 Year 5

Cost per Service 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 Months 6 6 6 6 6 Annual Service 6,000,000 6,600,000 7,260,000 7,986,000 8,784,600 Annual Maintenance 150,000 165,000 181,500 199,650 219,615 No of generator 2 2 2 2 2

12,300,000 13,530,000 14,883,000 16,371,300 18,008,430

Power Sub-Total 39,401,250 43,341,375 47,675,513 52,443,064 57,687,370

Telephone Bills Year 1 Year 2 Year 3 Year 4 Year 5 No of Phones 8 8 8 8 8 Bill /month/phone 200,000 240,000 288,000 345,600 414,720

Annual Bill 19,200,000 23,040,000 27,648,000 33,177,600 39,813,120

Year 1 Year 2 Year 3 Year 4 Year 5

Other Operating expensesPHCN Bill 10,000,000 12,000,000 14,400,000 17,280,000 20,736,000 General maintenance 30,000,000 36,000,000 43,200,000 51,840,000 62,208,000 Recruitment Expenses 30,000,000 Internet & Web support 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Marketing Expenses 150,000,000 180,000,000 216,000,000 259,200,000 311,040,000 Media & Advertising (Launching Inclusive) 29,787,643 14,626,277 13,516,285 13,225,910 13,559,841 Travelling Expenses (Transport) 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Travelling Expenses (Accormodation) 10,000,000 11,000,000 12,100,000 13,310,000 14,641,000 Stationery and Consumables 12,000,000 13,200,000 14,520,000 15,972,000 17,569,200 Transportation (Local) 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Audit and Professional Services 30,000,000 36,000,000 43,200,000 51,840,000 62,208,000

346,787,643 356,826,277 421,736,285 500,427,910 595,274,041

Insurance Costs Year 1 Year 2 Year 3 Year 4 Year 5 at 5% of Asset Costs

97,500,000 107,250,000 117,975,000 129,772,500 142,749,750

Year 1 Year 2 Year 3 Year 4 Year 5 Motor Vehicle Running Costs

fueling Costs (50lts) petrol 6,000 6,600 7,260 7,986 8,785 Frequency 104 104 104 104 104 No. of Vehicles 10 20 25 30 30

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6,240,000 13,728,000 18,876,000 24,916,320 27,407,952

Servicing Costs 25,000 27,500 30,250 33,275 36,603 Frequency 4 4 4 4 4 No of Vehicles 10 20 25 30 30

1,000,000 2,200,000 3,025,000 3,993,000 4,392,300

Total 7,240,000 15,928,000 21,901,000 28,909,320 31,800,252

Year 1 Year 2 Year 3 Year 4 Year 5 Miscellaneous (% Total Opex) 10% 10% 10% 10% 10%Total Opex 510,128,893 546,385,652 636,935,797 744,730,394 867,324,533

Miscellaneous 51,012,889 54,638,565 63,693,580 74,473,039 86,732,453

Grand Total 561,141,782 601,024,217 700,629,377 819,203,433 954,056,986

Year 1 Year 2 Year 3 Year 4 Year 5 Pre-operation Expenses

Consultant Fee 300,000,000 Other pre - operating cost 100,000,000

400,000,000

400,000,000 - - - -

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PERSONNEL COSTS

Number in employmentSalary Year 1 Year 2 Year 3 Year 4 Year 5

1 Managing Director/CEO 30,000,000 1 1 1 1 1 2 Chief Operating Officer 20,000,000 1 1 1 1 1 3 Head Business Development 15,000,000 1 1 1 1 1 4 Head Admin/HR & Logistics 10,000,000 1 1 1 1 1 5 Banquet Manager 10,000,000 1 1 1 1 1 6 F&B Manager 10,000,000 1 1 1 1 1 7 Marketing 8,000,000 4 8 12 12 16 8 Head Support Services 6,000,000 1 1 1 1 1 9 Account Officers 4,000,000 2 2 4 4 4

10 Customer Service Officer 2,000,000 2 2 4 4 4 11 Research & Data Officer 2,400,000 1 1 2 2 2 12 Drivers 600,000 2 2 4 4 5 13 Card Officers 960,000 2 2 2 3 3 14 OTHER Personnell 1,000,000 30 30 30 30 30

Total SalaryTraining CostsTotal Personnel Cost 50 54 65 66 71

AssumptionsSalaries increase from 3rd & 5th year percentage 10.0%December Bonus is a percentage of Salaries 5.0%

Total SalaryYear 1 Year 2 Year 3 Year 4 Year 5

Managing Director/CEO 30,000,000 30,000,000 33,000,000 33,000,000 36,300,000 Chief Operating Officer 20,000,000 20,000,000 22,000,000 22,000,000 24,200,000 Head Business Development 15,000,000 15,000,000 16,500,000 16,500,000 18,150,000 Head Admin/HR & Logistics 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000 Banquet Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000 F&B Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000

Marketing 32,000,000 64,000,000 105,600,000 105,600,000 116,160,000 Head Support Services 6,000,000 6,000,000 6,600,000 6,600,000 7,260,000 Account Officers 8,000,000 8,000,000 17,600,000 17,600,000 19,360,000 Customer Service Officer 4,000,000 4,000,000 8,800,000 8,800,000 9,680,000 Research & Data Officer 2,400,000 2,400,000 5,280,000 5,280,000 5,808,000 Drivers 1,200,000 1,200,000 2,640,000 2,640,000 2,904,000 Card Officers 1,920,000 1,920,000 2,112,000 3,168,000 3,484,800

30,000,000 30,000,000 33,000,000 33,000,000 36,300,000

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- - - - Total Salary 180,520,000 212,520,000 286,132,000 287,188,000 315,906,800 December Bonus 7,521,667 8,855,000 11,922,167 11,966,167 13,162,783 Total Personnel Cost 188,041,667 221,375,000 298,054,167 299,154,167 329,069,583

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Abuja Mixed Use Feasibility StudySensistivity Analysis -- Occupancy RateIn Millions of Naira

Pre-Const. Ending

& Const. Year 1 Year 2 Year 3 Year 4 Year 5 Valuation

Base Case-Feasibility Study 8-11-10Average Occupancy 74% 78% 82% 84% 85%Revenue 3,515 4,108 4,767 5,530 6,241 Net Income (390) 840 1,081 1,350 1,843 2,155 Operating Cashflow (8,740) 385 1,199 1,479 1,943 2,274 39,209 IRR 36%Financing Need 8,840

Scenario 1Average Occupancy 50% 70% 80% 85% 85%Revenue 2,375 3,657 4,598 5,374 5,911 Net Income (392) 395 903 1,282 1,774 2,012 Operating Cashflow (8,743) (61) 1,023 1,411 1,874 2,132 36,752 IRR 33%Financing Need 8,904

Scenario 2Average Occupancy 50% 50% 50% 50% 50%Revenue 2,375 2,612 2,874 3,161 3,477 Net Income (392) 395 498 613 841 985 Operating Cashflow (8,743) (61) 616 742 940 1,104 19,042 IRR 18%Financing Need 8,904

Scenario 3Average Occupancy 70% 70% 70% 70% 70%Revenue 3,272 3,599 3,959 4,355 4,791 Net Income (390) 746 883 1,036 1,346 1,541 Operating Cashflow (8,740) 290 1,002 1,165 1,446 1,661 28,631 IRR 29%Financing Need 8,840

Scenario 5Average Occupancy 80% 80% 80% 80% 80%Revenue 3,721 4,093 4,502 4,952 5,447 Net Income (390) 920 1,075 1,247 1,598 1,819 Operating Cashflow (8,740) 465 1,193 1,376 1,698 1,938 33,411 IRR 33%Financing Need 8,840

Scenario 3Average Occupancy 85% 85% 85% 85% 85%Revenue 3,945 4,339 4,773 5,251 5,776 Net Income (390) 1,007 1,170 1,352 1,724 1,957 Operating Cashflow (8,740) 552 1,289 1,481 1,824 2,076 35,801

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IRR 35%Financing Need 8,840

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Pre-Design Estimates Land Building and Site Soft Costs FF&E

3 Star 9.0% 65.0% 11.0% 12.0%

4 Star 10.0% 64.0% 10.0% 12.0%

5 Star 13.0% 59.0% 14.0% 10.0%

Super Luxury 15.0% 59.0% 13.0% 10.0%

4 Star 10.0% 64.0% 10.0% 12.0%

NairaProgram Management 0.8% 52,164,000.00

Architecture 4.1% 279,864,000.00

Structural 2.1% 148,212,000.00

Mechanical 1.5% 100,188,000.00

Electrical 1.5% 100,188,000.00

QS 2.1% 141,588,000.00

Financial Consultants 5.0% 345,000,000.00

Reimbursables 1.0% 69,000,000.00

Total 17.9% 1,236,204,000.00

Expected Project Cost Preliminaries Development Costs

8,000,000,000.00 1,100,000,000.00 6,900,000,000.00

86%

64%

22%

1,780,000,000.00

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Pre-Opening & Working Capital Total Cost Per Room

3.0% 100% 117,300.00

4.0% 100% 250,100.00 182

4.0% 100% 360,000.00

3.0% 100% 538,000.00

600,000.00

4.0% 100%

Dollars 347,760.00

1,865,760.00

988,080.00

667,920.00

667,920.00

943,920.00

2,300,000.00

460,000.00

8,241,360.00

Project Is Over Costed By 1.7B

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Dollar Naira

45,518,200.00 7,282,912,000.00