OFFER FOR INVESTOR Hotel and Wellness Center on Krasnaya Polyana 1. The essence of the proposal Residence “Laura” is a unique complex located on 1.2 hectares of landscaped area on the southern mountainside of Krasnaya Polyana (Sochi). The residence includes: the main house on 3 floors, a guest house on 2 floors, a bath complex on 2 floors and a garage (4 buildings with a total area of 1,063 sq. M); separate building (tennis court) 683 sq.m; helipad The development plan for the Residence implies the construction of a Hotel and Recreation Complex: ● Hotel with 60 rooms (there is an architectural solution) ● SPA and beauty salon ● Pool ● Restaurant ● Wellness center (on the site of a tennis court) The complex involves the conduct of educational and corporate events, the development of services in the field of entertainment and sports entertainment. 2. Financial investments for the 1st year 1 Construction of a recreation center: hotel, spa, restaurant, swimming pool, turnkey wellness center 7.500.000 EUR 2 Large-scale marketing and sales department 200.000 EUR 3 Management and staff 400.000 EUR 4 Other costs 150.000 EUR Total 8.250.000 EUR 3. Profitability model Source number 1 - a hotel with 60 rooms. In the calculations, we proceed from the average cost of living per day, taking into account seasonality and the load factor of standard / vip numbers (after deducting VAT) = 150 Eur (expenses for personnel, service, etc. are included in the investment management expenses plan), this season can reach 300 Eur Hotel occupancy on average for the year = 40% Annual income = 150 X 24 X 365 = 1.314.000 EUR Source number 2 - wellness center. Average bill for services / 10 days = 2.600 Eur Profit less SS, depreciation and taxes = 1.800 Eur Or for 1 day stay = 180 Eur Considering that the services are used by ¼ guests and 1 client arrives for recuperation purposefully = 7 customers per day, 408.000 Eur per year Source number 3 - SPA services, swimming pool, restaurant, entertainment During the year the number of tourists (according to the pessimistic scenario of hotel occupancy) = 8760 residents + 1500 guests = 10260 people Assuming that on average a client uses services for 100 Eur during the day, and minus the “cost of services”, the profit is 50 Eur (expenses for personnel, management, marketing are included in the investment plan), for the year the profit will be = 50 X 10260 = 513.000 Eur Source number 4 - secondary income. Organizing various events, renting the main house (for ~ 5.000 Eur per day), organizing flights by helicopter, other entertainment. Potentially additional income from this direction may be from 300.000 Eur per year. 4. Basic financial model EUR 2019 (¼ active days) 2020 2021 2022 improvements 2023 2024 improvements 1 Annual expenses (marketing, sales, management, personnel) 750.000 750.000 750.000 1.200.000 850.000 1.200.000 2 Main income 558.750 2.235.000 2.300.000 2.500.000 2.750.000 2.900.000 4 Revenue (net of VAT) - 191.250 + 1.485.000 + 1.550.000 + 1.300.000 + 1.900.000 + 1.700.000 5 Return on investment - 7.691.250 - 6.206.000 - 4.656.000 - 3.356.000 - 1.456.000 - 244.000 Investment can pay off within 6 years! When developing a complete business model, we look forward to a return on investment of up to 7 years. With an optimistic scenario and organization at a high level, it is possible to achieve a payback period of 5-6 years. 5. Buying a residence for an investment project The cost of the Residence is 5.85 Mln Euro (470 million rubles).
