Tourism and Real Estate Investment - Amazon Web Services€¦ · Hotel Odijo D'Agua 2% 1% -1% Dunas...

Tourism and Real Estate Investment

Intelligent Property Investments in Cape Verde

Imagine all the future

May 2018

Travel and Tourism

▰  Travel and Tourism is one of worlds Largest Economic Sectors

▰  Accounts for over 1/10th of Global GDP (10.4%) and grown by 4.6% over last year

▰  9.9% of Global jobs (313 million employed by Travel and Tourism sector)

▰  Growing Demand for Hospitality Real Estate

▰  Key Investment Opportunities Depend on…………….

2

Location, Location, Location

3

Cape Verde - stable, emerging economy •  Ten un-spoilt tropical Islands off the coast of West Africa

•  Population of c.525k people

•  Politically, environmentally and economically stable

•  Former Portuguese Colony

•  Stable Democratic government

•  Economy geared towards tourism

Why Cape Verde? – Strong Fundamentals

4 Imagine all the future

•  9,5% CAGR in tourist arrivals (2000 / 2015)

•  13.6% Growth in 2017

•  Tourist arrivals forecast to double by 2024

•  Nearly 44% of Cape Verde GDP attributable to tourism

Strong growth in tourism…

100k

-

200k

500k

600k

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Num

ber o

f tou

rists

300k

400k

Source:CapeVerdeMinistryforEconomyandEmployment,WorldDevelopmentIndicators(inrespectof2009and2010),WorldTourismTravelEconomic impact2016.

Why Cape Verde? – Strong Fundamentals


0bn

60bn

80bn

100bn

120bn

140bn

2026

Cap

e Ve

rdea

n Es

cudo

2015 2016 Direct Indirect Induced

0%

40bn 10%

20bn

20%

30%

40%

50%

…with significant government backing…

Total contribution of travel and tourism to Cape Verdean GDP 160bn 60%

2026

% o

f GD

P

2015 2016

Direct Indirect Induced

Operator 10 years ago Now % Change TRG 0% 46% +46%

Riu 47% 22% -25%

Oasis 16% 14% -2%

Crioula 11% 5% -6%

Bravo Club 10% 5% -5%

Morabeza 6% 3% -3%

Hotel Odijo D'Agua 2% 1% -1%

Dunas de Sal Hotel 2% 1% -1%

Leading market share Market Share of 4 and 5 Star

Operators in Cape Verde

Source:CapeVerdeMinistryforEconomyandEmployment,WorldDevelopmentIndicators(inrespectof2009and2010),WorldTourismTravelEconomic impact2016.

The Resort Group PLC – Strategic Partnerships

The Resort Group PLC is a leading

world-class luxury Resort hospitality

company specialized in creating and

operating 5 –Star holiday Resort and

Hotels in Cape Verde with partners such

as Melia Hotels International, Hilton

Worldwide, TUI and Deutsche Hospitality.


The Resort Group PLC – Current Portfolio

7

Operational Resorts Under Construction

Hilton Boa Hotel

Boa Vista, Cape

Verde

Hilton Praia

Santiago, Cape

Verde

Pre Sales, Planning & Design Stage

5 Resorts, Boa Vista,

Cape Verde

Development Projects

Future Plans European

Acquisitions

Returns are guaranteed and underpinned by the World’s Largest Tour Operator. Four Resorts already completed and operational with 2228 rooms. Imagine all the future

The Resort Group PLC – Actual & Future


The Resort Group PLC

9

•  Development revenue driven by pre-sales

•  Growing Hospitality Revenue

•  Melia Tortuga (2011)

•  Melia Dunas (November 2014)

•  Melia Llana (December 2016)

•  Improving proportion of Hospitality to Development EBITDA


The Resort Group’s business model is able to generate income from three revenue streams: ü  Operation of hotels, including minimum guaranteed

revenues and occupancy rates from tour operators

ü  Sale of new build developments through fully regulated investment products and cash sales

ü  Commercial activities e.g. beach club, boutiques, food and drink sales and non-lodging activities.

The Resort Group PLC – Some Interesting Figures


The Group is the premier developer in Cape Verde with three award winning hotels and a 5-star project pipeline in excess of 6500 hotel rooms. As we look to the future, The Resort Group PLC maintains a set of principles that are still relevant and prevalent in our thinking today.

€50 €203M 2228

74% 27% Now 39% Projected 60%

Guaranteed revenue from TUI

for next three years

Margin per occupied room

2016

Operating rooms in 2016

Average room occupancy for

2016

Return on Resort assets in

2016

Market share of 4 and 5 Star Operators in Cape Verde

Market share of 4 and 5 Star Operators in Cape Verde

Proposed Capital Raise

▰ €50,000,000 ▰ Accelerate Build Program for Cape Verde Pipeline of Resorts

▰ Bring Forward Operating Hotel Revenues

▰ Grow the Asset Base for TRG

▰ Deliver Exceptional Returns to Investors

11

What the Investors get..

12

An attractive Investment ▰  7% annual net yield, during 8 Years

▰  Capital returned on maturity

▰  Closed fund for Private Qualified Investors


A diversified Investment in real economy ▰  An income of big international hotel’s brands (Melia Hotels International, Hilton Worldwide, TUI, Deutsche Hospitality)

▰  Benefit from managers long track-record (10 Years operation with 5 Resorts opened)

Through Capital Venture Fund

(CVF), based in Portugal,

audited by Portuguese authorities

Fund managed by The Resort Group &

Lynx Asset Managers

Fund Operability


Provide NAV

Relation with the Portuguese

Supervisors and Tax Authorities

Custodian

Pay Agent

Companies Management

Assured the Investment

Policy

Portuguese Stock Exchange Regulator

FUND

LYNX Fund

Manager

Supervision

The Resort Group Asset

Manager

Depositary and

Custodian Bank

Buy and Sell Assets

Operation Responsibility

Fund Auditors

Bank Of Portugal

Investment Process


Fund

Unit Holders €50M

SPV Cape Verde Local Resort

7% Yield


q  Investors will buy Units of the Fund (Unit Shares)

q  The Fund will invest in Hospitality in Cape Verde, by acquiring Companies (SPV) to The Resort Group,

q  The SPV will be managed The Resort Group

q  Yearly the Fund will deliver all incomes to the Unit Holders

Investment Policy


Fund

Unit Holders €50M


7% Yield


Annual amount payed : 7% yield + Fund’s Operating Costs

The Fund Sells back the SPV to the initial holder every year during the fund lifetime (through shares of capital)

Last Tranche (7% Yield +

Equity) 7% 7% 7%

Investment Process – 8 Years Later


Fund

Unit Holders €50M


7% Yield

The Resort Group PLC Last Payment

The SPV returns to the Resort Group or other Investment vehicle

Fund details


Regulated by Portuguese Authorities

Management Fee (all in): Max. 0,50%

Target Return 7%

year Fund’s life:

8 Years

Subscription Period: 2 Years

(Starting May/June 2018)

Qualified Investors ( Min €500 K)

Fund Size:

€ 50 M

Focused Management

18


More than 10 Years of experience Operating since 2007 with a good performance

Lynx Asset Managers +351 211 534 090


The Resort Group PLC +351 916 554 155

Tourism and Real Estate Investment - Amazon Web Services€¦ · Hotel Odijo D'Agua 2% 1% -1% Dunas...

Documents

Transcript of Tourism and Real Estate Investment - Amazon Web Services€¦ · Hotel Odijo D'Agua 2% 1% -1% Dunas...