Katerina Park Hotel. Moscow

Transcription

1 UMACO Group Katerina Park Hotel Moscow Investment Memorandum Moscow

2 Introduction Offer Potential investor is offered to acquire a Cyprus company which owns Moscow 240-key Katerina Park hotel located in the south of the city, 11 Kirovogradskaya str., in rapidly developing Moscow office district. The hotel is an operating business with existing cashflow, which may increase over time through hotel demand increase and management improvement. Asking price: to be discussed Key figures Year built: 1987 Full reconstruction: 2010 Operating start: September, 2010 Vendor: UMACO Group Management Company:UMACO Management General Contractor: UMACO Development Land area: 5,594 sq.m GBA: 11,000 sq.m Tenure: Building freehold Land till March 23, 2031 Stabilized EBITDA: $ 5 million Location & Site map Prazhskaya metro station 0,5 km Yuzhnaya metro station 0,7 km Varshavskoe highway 1 km Kremlin & Red Square 18,8 km Vnukovo Airport 30 км Domodedovo Airport 37,4 km Sheremetjevo Airport 58 km

3 Property description Status: Built 1987 Full reconstruction Areas: Guest rooms: Food & Beverages facilities: Conference & Meeting facilities: 12 floors above-ground + basement level Room area 5740 sq.m Management office 59 sq.m Lobby, public areas 105 sq.m Restaurant 200 sq.m Reception area 45 sq.m Kitchen 160 sq.m Fitness center 148 sq.m Technical services 830 sq.m (sauna, gym, relax area) Conference areas 312 sq.m Room type Rooms number Average room size MEDIUM Twin beds sq.m MEDIUM King-size bed sq.m LARGE sq.m Total 240 Facility Location Capacity (seats) Main Restaurant Level Reception / Lobby Bar Level 1 90 Total capacity 240 Room Area Capacity (seats) Bjork 128 sq.m 130 Gran 62 sq.m 75 Ronn 43 sq.m 40 Ek 25 sq.m 25 Coffee break area 54 sq.m Total 312 sq.m 270 Parking lots: Technical specifications: 100 outdoor parking lots on the secure land site adjacent to the hotel Precast concrete frame Heating, electric, sewage and water supply are provided by city utility companies Elevators 4 passengers elevators +1 food unit Fire protection fire alarm system throughout the hotel

4 Acquisition, Rebranding & Renovation terms Hotel development & renovation, realized by UMACO during February 2010 February 2011 ACQUISITION STEP December 2009 February 2010 UMACO signed the Letter of Intent December 17, 2009 Hotel Katerina Park bought by UMACO February 02, 2010 RECONSTRUCTION STEP 1 Main entrance & 1st floor March April 2010 Lobby & Reception area Lobby Bar Full reconstruction Full reconstruction Restaurant Full reconstruction Elevators hall Full reconstruction Katerina Park Grand Opening April 04, 2010 RECONSTRUCTION STEP 2 Conference floor creation (2nd floor) May July 2010 Bjork conference room New creation Gran conference room New creation Ronn conference room New creation Coffee break area New creation Katerina Park Conferences Grand Opening July 29, 2010 RECONSTRUCTION STEP 3 Basement level November December 2010 Fitness center Saunas and relax area, changing rooms New creation Gym room New creation Staff areas New creation New Guest Relax & New Staff Areas Official Opening December 20, 2010 Kitchen New creation January, 2011 Laundry storage New creation January, 2011 RECONSTRUCTION FINALIZED February 1, 2011

5 Hotel Renovation: Step 1 March April Exterior Yesterday Today

6 Hotel Renovation: Step 1 March April Reception area Yesterday Today

7 Hotel Renovation: Step 1 March April Lobby area Yesterday Today

8 Hotel Renovation: Step 1 March April Lobby bar area Yesterday Today

9 Hotel Renovation: Step 1 March April Restaurant Yesterday Today

10 Hotel Renovation: Step 2 May July Conference floor Elevators hall Coffee break area 54 sq.m Ronn 43 sq.m Gran 62 sq.m Bjork 128 sq.m

11 Hotel Renovation: Step 2 May July Conference floor A new brand conference floor: New building New design Conference rooms : 3 Total area: 320 sq.m Capacity: 240 pax Multifunctional: conferences, trainings, exhibitions banquets, weddings Innovative coffee break & relax area New technologies, powerful air-conditioning and ventilation systems Clever interior design inspiring productive meetings

12 Hotel Renovation: Step 3 November December Fitness center Yesterday Guest sauna Today 2 Saunas & Relax area

13 Hotel Renovation: Step 3 November December Fitness center Yesterday Stairs to the Fitness center Today Stairs to the Fitness center

14 Hotel Renovation: Step 3 November December Fitness center Yesterday Guest shower at sauna Today Shower in changing rooms

15 Hotel Renovation: Step 3 November December Fitness center A new Fitness center: New building New design Areas: - 2 saunas - Relax area - Changing rooms - Gym room

16 Hotel Renovation: Step 3 November December Staff areas New Staff areas & Kitchen: New building New design New staff areas: - Changing rooms - Shower rooms - Staff canteen - Staff stairs for employees safety News kitchen area: - Separate hot and cold kitchen rooms - Elevator for food between ground and 1 st (restaurant) floor - Stainless shelves, working tables and other necessary kitchen equipment

17 Interior design Today MEDIUM room Lobby Bar Reception LARGE room Restaurant Coffee break area Relax area, Fitness center Ronn room, 43 sq.m Bjork room, 128 sq.m

18 Executive summary Investment opportunity Opportunity to acquire a 4 star operational Katerina Park business-hotel of 240 keys located in the Moscow city business district. Key financial figures Type of the Property: 4 star Business Hotel Size of Property: 240 rooms The Target is located in a rapidly developing Moscow office segment (450,000 sq.m of office area in 5 km around Katerina Park) which has a capability to expand over the forthcoming years. Clean share purchase deal with established Cyprus holding structure. Estimate Purchase Price (VAT excl.) Stable operating figures: To be discussed Stabilization year 2014 GOP Margin 64% EBITA Margin 48% RevPar 124 USD ADR 188 USD Occupancy 66%

19 Site allocation 1 2 M Katerina Park hotel building (240 keys) Outdoor parking (100 places) Prazhskaya metro station 0,3 km Surroundings & Community A large city park is located just across the road for strolls Kirovogradskaya street 1 2 Varshavskoe highroad Many shopping and entertainment centers are within walking distance from the hotel A natural-historic park Bitsevsky forest, the second-largest specially protected natural site in Moscow, with the largest Bitsa horse and sport complex in Europe at 1,8 km distance Tsarytsino Open Air History and Architectural Museum at 2,9 km distance M M

20 Katerina Park Business district Gross office supply (existing and under construction) in the area 445,000 sq.m (mainly Class B+) in 5-km radius from Katerina Park 1 VARSHAVKA Sky (opening in Q1 2012) is a new multifunctional business and sports centre, located on the first line of Varshavskoye highroad only in 1 km from Katerina Park hotel, will provide office and retail areas for rent to a great number of Russian and foreign companies. 2 Varshavskiy Office Park 3 Business Park Solutions (office & retail complex) Kharkovskiy Office & Warehouse complex Business Center Meridio Nakhimov Business Center Platimum Business Center Office center m. Ulitsa Akademika Yangelya 9 Business center m. Anino 8 Other Office centers STUPINO Industrial Park is a rapidly developing industrial center of ha total area. Located south of Moscow, it has investment potential for industrial and warehouse developers. 9 Key Tenants with manufacturing in Stupino: Mars Pepsi Scovo household products Kimberly Clark (factory is under construction) Keramogranit Campina Knauff

21 Competitors map Katerina Park Hotel Primary Competition 1 Milan 4* Ibis Moscow Paveletskaya 3* Izmailovo 3* Kosmos 3* 7 5 Korston 3* Holiday Inn Sokolniki 4* 7 Holiday Inn Sushevskiy 4* 8 Novotel Moscow Center 4* 5 2 Secondary Competition (hotels in the area): 1 Berlin 2* Sevastopol 2* Bitsa 2* Eridan 2* 5 AGK Moskomsporta 2* 1 6 Rus-otel 2* 5 6

22 Katerina Park and Moscow Hotel Market dynamics 2010 Main hotel results 2010 My Property: Katerina Park Hotel # Comp Set: Hotel Cosmos #132543, Korston Hotel Moscow #132628, Holiday Inn Moscow Suschevsky #139624, Holiday Inn Moscow Sokolniki #140504, Katerina Park Hotel #171877, Excludes Subject Property Currency: RUB - Russian Rubles Occupancy ADR RevPAR Date This Year This Year Last Year % Chg This Year This Year Last Year % Chg This Year This Year Last Year % Chg My property Comp Set Comp Set Comp Set My property Comp Set Comp Set Comp Set My property Comp Set Comp Set Comp Set Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL This is a publication of STR Global Limited and is intended solely for use by subscribers. Reproduction or distribution of this report, in whole or part, without written permission of STR Global Limited is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the report and its contents are subject to the terms set forth in the contract you have entered into with STR Global Limited. Source 2011 STR Global, Limited

23 Katerina Park and Moscow Hotel Market dynamics 2011 Main hotel results 2011 My Property: Katerina Park Hotel # Comp Set: Hotel Cosmos #132543, Korston Hotel Moscow #132628, Holiday Inn Moscow Suschevsky #139624, Holiday Inn Moscow Sokolniki #140504, Excludes Subject Property Currency: RUB - Russian Rubles Occupancy ADR RevPAR Date This Year % Chg Index This Year % Chg Index This Year % Chg Index My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL This is a publication of STR Global Limited and is intended solely for use by subscribers. Reproduction or distribution of this report, in whole or part, without written permission of STR Global Limited is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the report and its contents are subject to the terms set forth in the contract you have entered into with STR Global Limited. Source 2011 STR Global Limited

24 Katerina Park and Moscow Hotel Market dynamics 2012 Main hotel results 2012 My Property: Katerina Park Hotel # Comp Set: Hotel Cosmos #132543, Korston Hotel Moscow #132628, Holiday Inn Moscow Suschevsky #139624, Holiday Inn Moscow Sokolniki #140504, Excludes Subject Property Currency: RUB - Russian Rubles Occupancy ADR RevPAR Date This Year % Chg Index This Year % Chg Index This Year % Chg Index My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL This is a publication of STR Global Limited and is intended solely for use by subscribers. Reproduction or distribution of this report, in whole or part, without written permission of STR Global Limited is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the report and its contents are subject to the terms set forth in the contract you have entered into with STR Global Limited. Source 2012 STR Global Limited

25 Katerina Park and Moscow Hotel Market dynamics 2013 Main hotel results 2013 My Property: Katerina Park Hotel # Comp Set: Hotel Cosmos #132543, Korston Hotel Moscow #132628, Holiday Inn Moscow Suschevsky #139624, Holiday Inn Moscow Sokolniki #140504, Excludes Subject Property Currency: RUB - Russian Rubles Occupancy ADR RevPAR Date This Year % Chg Index This Year % Chg Index This Year % Chg Index My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set My Prop Comp Set Jan Feb TOTAL This is a publication of STR Global Limited and is intended solely for use by subscribers. Reproduction or distribution of this report, in whole or part, without written permission of STR Global Limited is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the report and its contents are subject to the terms set forth in the contract you have entered into with STR Global Limited. Source 2013 STR Global Limited

26 Katerina Park hotel rating on TripAdvisor.com Recommended by Travelers from over the world: Ranked # 4 of 231 hotels in Moscow

27 Katerina Park Hotel Rewards on TripAdvisor.com TOP 25 Hotels in Russia 12 Moscow hotels listed: #1 Swissotel Krasnye Holmy 5* #2 Lotte Hotel Moscow 5* #3 Mercure Arbat Moscow (Accor) 4* #5 Katerina Park 4* #9 Ritz Carlton 5* #10 Ararat Park Hyatt Moscow 5* #13 InterContinental Moscow Tverskaya 5* #15 Radisson Royal Moscow 5* #16 Katerina City 4* #17 Moscow Marriott Royal Aurora 5* #18 Hilton Moscow Leningradskaya 5* #19 Savoy Moscow 5*

28 Transaction schedule Transaction schedule Holding structure The Buyer is offered to acquire 100% SPV, which owns Katerina Park hotel. The deal benefits from a clean SPV with an efficient tax structure and high book value. Upon agreeing a Term Sheet the Seller expects due diligence process and transactions documents to be finalized within a 40 day period and closing to take no more than 10 days thereafter. Holding vehicle UPG 100% SPV Asking Price to be discussed Subject of Sale Cyprus SPV Efficient Tax Structure High Book Value Holding level Transaction level 100% LLC Katerina Park

29 Development team profile VENDOR UMACO Group Founded: 1997 Company profile: Development and management of real estate. Territorial presence: Russian Federation UMACO forms a group of companies, each specializing in a particular industry in real estate of commercial purpose. OPERATOR UMACO Management One of the established hotel operators in Russia Solid 12-yaers track-record of hotel management, innovative hotel concept creation, delivering exceptional results for the shareholders Properties under current management: - Katerina City (120 keys) - Katerina Park (239 keys) - Katerina Alpik (160 units) Previously managed properties: - Iris Congress Hotel, Moscow (195 keys + 44 units), ARCHITECT SWECO AVISTA The leading European architectural and design company. Projects: - Annual creation more than projects - Baltic Pearl complex (St. Petersburg) project creation - More than 375 hotels created during 100-years history GENERAL CONTRACTOR UMACO Development Leading Russian hotel development company, specializing in the creation and construction of hotels on local real estate market. 10 year experience developing hotels in Russia alongside leading international architectural and design companies. Creation of innovative hotel concepts with both optimized layout and guest comfort. Projects: - Hotel Katerina City Moscow (opened in 1998) - Hotel Katerina City Yelabuga (opened in 2008) - Hotel Katerina City Krasnodar (building stage) - Condo hotel Katerina Alpik Krasnaya Polyana (opened in 2007)

30 Contact UMACO Group Shluzovaya nab. 6, build. 1-2, , Moscow, Russia Tel / Fax: +7 (495) office@umaco.org Hotel Katerina City Moscow 6, Shluzovaya Naberezhnaya