HM Durmitor Zabljak

HM Durmitor

The company as HM Durmitor Zabljak (daughter company of Hotel Management

AG from Lichtenstein) acquired in June 2004 hotels Jezera and Zabljak, organic

farm with 2.500h of land, ski trail Stuoc with wire lifts, restaurant Momcilov grad

and few other properties in town centre.

HM Durmitor is management company and property developer aiming to

optimize its property portfolio with partnership arrangements and in

cooperation with IFI and Property funds. Organizational restructuring and

financial consolidation has been finalized in 2013 and HM Durmitor has

prepared strategic development investment plan with precisely defined goals.

HM Durmitor

Vision

To be recognized as synonym for synergy of quality in harmony with

Durmitor incredible natural resources and become a leader in the

region with unique touristic services combined with self produced

organic food.

Mission

In hearth of National park Durmitor, with it’s products and services

superb quality, stamp unforgettable impression to customer,

emphasizing constant care of environment as eternal value.

Tourism in Montenegro

2012 – visitors 1.440.000

Nights 9.150.000.

Average number of nights/visitor 6,4.

Average increase per year 5%.

From total visitors only 3.6% are visiting mountain centers.

25% of visitors use hotel accommodation.

No. of nights

Zabljak

National Park Durmitor is on UNESCO list of world natural heritage. Small town

Zabljak is situated in the middle of the massif of Durmitor on 1450m above the sea

and it is the highest urban place in Balkan Peninsula.

Zabljak is surrounded by 23 peaks over 2.200m above the sea level, 18 glacier lakes

and nearby the magnificent Tara canyon, the deepest canyon in Europe, very

popular throughout Europe with rafting tours at summer season. Durmitor has a

capacity to become a center of adventure tourism with fantastic preconditions for

all extreme sports and the logo of Montenegro touristic offer as a “Wild Beauty” is

real Dormitor's badge.

Touristic season on Zabljak lasts throughout the year. During the winter Durmitor is

covered with snow more than 120 days and has a longer ski season than other areas

in Balkan. There are several ski paths, ski and snow board’s schools, ski equipment

rentals, snow jet tours through Durmitor and Sinjajevina mountains.

Tourism on Zabljak

Durmitor – Montenegro leader in mountain tourism.

Distances:

Podgorica 100 km

Boka Kotorska 140 km

Beograd 430km

Dubrovnik 170km

Hotel capacities in Zabljak

Categorization No. No. of rooms No. of beds

Hotels

4* 3 52 187

3* 3 70 169

2* 4 205 459

Total 10 327 815

Camps 3* 1 108 216

Private 2* 40 144 221

TOTAL 1252

No. of tourist on Zabljak 2012

Foreign Local Total

Arrivals 16.312 8.788 25.100

Nights 30.156 25.542 55.698

Average 1,85 2,91 2,22

From total visitors, Durmitor has 1.7% and from

total nights 1.1%

From total visitors 65% are foreigners.

Hotel Jezera with 17 bungalows

Location - 400m from Zabljak town center

Gross surface – 6.480sqm + 1.190sqm

Plot surface - 30.000sqm

Accommodation capacity – 220 beds and 104 beds in bungalows

Estimated market value- €6mio

Estimated investment- €6mio (after reconstruction hotel will have 170 beds and gross

surface 7.850sqm)

Future market value for 4*hotel with wellness & spa center €15mio

Documentation and design has been provided and approved by Authorities

In cooperation with strategic partner management and staff should be provided

Investment repayment in hotel Jezera and 17 bungalows

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Hotel revenues 1,404,000 1,579,500 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,404,000 1,579,500

Restaurant revenues 292,000 277,400 321,200 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 292,000 277,400

Salaries -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000 -504,000

Mat. expenses -540,000 -567,000 -594,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -735,000 -540,000 -567,000

Payment capacity 652,000 1,437,900 2,416,100 3,282,100 4,148,100 5,014,100 5,880,100 6,746,100 7,612,100 8,478,100 9,344,100 10,210,100 11,076,100 11,942,100 652,000 1,437,900

Investment 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

No. of beds 250

Total capacity 25.550

Price HB € 65

Av. occupancy 30%

No. guest/year 27.000

No. guest/day 74

No. of employees 60 -€ 2,000,000

€ 0

€ 2,000,000

€ 4,000,000

€ 6,000,000

€ 8,000,000

€ 10,000,000

€ 12,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Hotel revenues

Restaurant revenues

Salaries

Mat. expenses

Payment capacity

Investment

Hotel Zabljak

Location - town center

Hotel surface– 2.500sqm

Plot surface -5.000sqm

Accommodation capacity – 54 beds

Reconstruction in final phase (additionally invested €1,7mio)

Estimated market value four stars hotel– €5mio

Management and staff has been provided by HM

Investment repayment in hotel Zabljak

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Net sales 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000

Credit -178,426 -178,426 -178,426 -178,426 -178,426 -178,426 -178,426 -178,426 0 0 0 0 0 0 0 0

Mat. expenses -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000 -231,000

Salaries -170,000 -190,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000 -200,000

Payment capacity 145,574 449,579 565,154 680,728 796,302 911,876 1,027,451 1,143,025 1,437,025 1,731,025 2,025,025 2,319,025 2,613,025 2,907,025 3,201,025 3,495,025

Investment 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000

No. of beds 70

Total capacity 91.250

Price HB € 40

Av. occupancy 35%

No. guest/year 9.000

No. guest/day 25

No. of employees 28 € (500,000)

€ -

€ 500,000

€ 1,000,000

€ 1,500,000

€ 2,000,000

€ 2,500,000

€ 3,000,000

€ 3,500,000

$1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Net sales

Credit

Mat. Expenses

Salaries

Payment capacity

Investment

Grand opening scheduled for June, 2013

Location – 6km from town center, 3km with new wire transportation

Land surface – 200.000sqm

Austrian company Doppelmayer design detail plan for erection of 15km

trails with complete infrastructure.

Planned investment - €10mio

Restaurant is on the top of ski trail

Availability of erection of exclusive ski resort

Management and staff has been provided by HM

Stuoc ski trail with restaurant Momcilov grad

Location - 5km from town center

Runway length 1.800m, width 100m

Estimated investment value €10mio

Airport Durmitor

Owner of 2.000ha of several land plots on Durmitor.

Possibility of erection of individual villas and apartments on exclusive

selected plots with enchanting Mountain View and natural surroundings

(HM Durmitor will obtain construction permits and licenses).

Possibility of intensive agriculture development, especially organic

production and beef, sheep and goat breeding

Estimated market value aprox . €200mio.

Target: increase asset value by two times

Land plots owned by HM Durmitor

Existing status of Farm HM Durmitor

Location 2km from the town center

150ha land plot with the fence for animal breeding

350ha of agricultural land for feed production, vegetable and grain growing

1.000 sheep

Cheese production and slaughter with cold box total surface 500sqm

Activity - animal breeding, organic production of sheep and goat cheese, beef, sheep and goat meet

Organic certificate and support of veterinary service from the state veterinary

in Zabljak

Management and labor provided by local owner

Development plan in agribusiness of HM Durmitor

Investment plan in phases that will be determined by executive development plan:

Phase 1.

Purchasing 70 milking cows (Brown Swiss), 200 pregnant heifers (Angus), 1.000 sheep and 200 goats.

Introducing HACCP in daily operation

Phase 2.

Fencing another 200ha and acquiring Angus beef potential in cooperation with Illinois State University from United States.

Improving the land status for agriculture production with modern organic production technologies

Branding products with logo: Organic made on top of Durmitor.

Phase 3.

Optimizing value chain with new added value products.

Structure, linkage and investment plans

Hotels and restaurants

Hotel Zabljak

Market value €5mio

Hotel Jezera

NPV €6mio

Planned investment €6mio

Future market value €15mio

Restaurant Momcilov grad

Market value €1,5mio

Ski

Stuoc ski center

Planned investment €10mio

Airport

Planned investment €10mio

Agribusiness

Land

2.500ha - €250mio

Farm

Processing facilities

E

q

u

i

t

y

i

n

c

r

e

a

s

e

PPP IPA funds

P

a

r

t

n

e

r

s

h

i

p

Management of HM Durmitor will coordinate this process with strategic partners, IFI, Commercial banks and EU IPA funds.

Geographic position