The main idea of the project is to re-design the existing Tatinets Hotel and create an all-new country house hotel – TATINETS Park Hotel – featuring a large and comfortable area of 34.7 hectares in Nizhny Novgorod region, Russia. It is designed to be a family-friendly hotel, offering holiday accommodation for parents with children of all ages as well as various health leisure and entertainment facilities. Besides TATINETS Park Hotel is going to be an ideal venue for corporate leisure breaks, team building events, conferences and workshops.
According to the project, the main hotel building offers 120 comfortable hotel rooms to accommodate up to 350 people. The new ‘hybrid’-rating system allows for combination of 3- and 4-star rooms to meet all kinds of customer requirements as regards accommodation cost and food options. TATINETS Park Hotel offering best leisure facilities and great comfort is sure to become one of the market leaders in Nizhny Novgorod region.
The project aims to refurbish and create infrastructure – build 3500 square meters of new facilities and refurbish approx. 10,000 square meters of old buildings.
The project is initiated by the VPT-NN Company (TIN 5257150159, www.vpt-nn.ru
Tel:(831)299-87-01, E-mail: avk@tatinets.ru), which owns the hotel.
The project estimate investment is 535.2m. rubles, which includes acquisition of the assets from Nizhny Novgorod Mechanical Engineering Plant and covers the project costs to be incurred during the refurbishment period before start of operations of the new hotel. The owner has invested approx. 200m rubles (as of 1 January, 2018).
TATINETS Park Hotel Project Highlights:
Total investments require - EUR 7 182 thou. Level of planning capacity (67.3%) will be reached up to the sixth year of operation.
Year of operation |
||||||
1 |
2 |
3 |
4 |
5 |
6-th and later |
|
Exchange rate EUR/RUR* |
74,5 |
74,5 |
74,5 |
82,2 |
82,2 |
82,2 |
Average room occupancy,% |
0,0% |
75,0% |
85,0% |
90,0% |
95,0% |
100,0% |
Total income, thou. EUR |
0 |
2 299.9 |
2 362.3 |
2 501.2 |
2 640.2 |
2 779.1 |
EBITDA, thou. EUR |
-181 |
1 306.7 |
1 381.2 |
1 496.3 |
1 611.3 |
1 726.3 |
Key figures of room supply: |
|
|||||
Room occupancy, % |
0,0% |
50,5% |
57,2% |
60,6% |
63,9% |
67,3% |
ADR, EUR |
52 |
52 |
52 |
47 |
47 |
47 |
RevPar, thou. EUR |
0 |
26 |
30 |
29 |
30 |
32 |
Total number of guests, pers*days |
0 |
55 098 |
62 445 |
66 118 |
69 791 |
73 464 |
*according to basic predict of the Ministry of Finance of the RF for budget planning till 2035.
Name of figure |
unit |
VA |
Number of rooms |
Pcs |
118 |
Annual average room occupancy, % |
% |
67,3% |
ADR (Average daily room rate) |
EUR |
47 |
Average bill of additional cost per guest |
|
|
with accommodation |
EUR per day |
8.1 |
with accommodation – one day visit |
EUR per day |
12.1 |
Name of figure |
unit |
VA |
Total revenue, ann. |
EUR thou. |
2 779.1 |
EBITDA, ann. |
EUR thou. |
1 726.3 |
EBITDA margin |
% |
62.1% |
Discount rate |
% |
16.5% |
Calculation period |
years |
10 |
Pay-back period |
years |
5.67 |
Discounted pay-back period |
years |
9.75 |
Net present value (NPV) |
EUR thou. |
65.9 |
Internal rate of return (IRR) |
% |
16.8% |
Total volume of investments |
EUR thou. |
7 182.4 |
incl. current investments (till now) |
EURthou. |
2 818.0 |
Return on investments (ROI) |
% |
0.92% |
EBITDA accumulative for calculation period (10 years) |
EUR thou. |
12 286 |