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Switch On Ukraine
Switch On Ukraine
Kyiv 01601 Ukraine Phone: +380 44 281 9975 Fax: +380 44 281 9975 natali-marchenko@i.ua 2012ukraine@ukr.net
Switch on Ukraine
Imprint
With the support of the Ukrainian German Development Cooperation, Kiev/Berlin March 2011 Cooperation Partner: Centre for Tourism Development
Explanation Part 2 of this booklet contains two different kinds of information about investment projects in Ukraine seeking for international partners. Section A is a list of projects with very detailed information that are supposed to allow a potential investor a judgement to what extent the project meets vital criteria for making decisions. Section B contains more general information about projects arranged according to geographical criteria. We have translated and published the information in the way we received it and did not do further editing. If you have questions or would like to clarify facts, please contact directly the contact person provided or call the below given address. The editors
For more information please contact us. We help you finding your suitable project and partner: National Agency on Holding and Preparation of Euro 2012 Department of Infrastructure Development 2 Mechnikova Str. Kyiv 01601 Ukraine Phone: +380 44 281 9975 Fax: +380 44 281 9975 natali-marchenko@i.ua 2012ukraine@ukr.net
Disclaimer: All information has been compiled with due diligence. We cannot take any guarantees or liabilities on the correctness of data presented.
Contents
Foreword by Vice Minister Mr Borys Kolesnikov Lets switch on Tourism! ........................................... 5 6 6 7 7 7 8 8 9 9 10 10 10 10 11 12 12 13 13 14 14
Investments in development of the hotel infrastructure .................................................................. 15 Economic Program shows results ....................................................................................................... 16 Annual growth rate of 4 percent expected .................................................................................... 16 Foreign Trade ................................................................................................................................... 16 Views from outside Investment climate improves ........................................................................... Legal Framework of Investment Activities ..................................................................................... National Target Programme for Euro 2012 ................................................................................... Attractive conditions for investments ............................................................................................ Indicators for doing business in Ukraine....................................................................................... 18 18 18 19 19
Contents
Part 2: Investment Projects in Ukraine
Section A Detailed Investment project descriptions ......................................................................... Project Cosmopolit, Kharkiv............................................................................................................ Project Radgospna, Kharkiv............................................................................................................ Project Adome, Donetsk.................................................................................................................. Project Artemivsk, Donetsk ........................................................................................................... Project Golden Ring of Health, Crimea ......................................................................................... Project Kalamitska Bay, Crimea.................................................................................................... Project Prague, Kyiv ........................................................................................................................ Project Crowne Plaza, Kyiv ............................................................................................................. Project Lytvynovka, Kyiv region ..................................................................................................... Project Obukhiv, Kyiv region .......................................................................................................... Project Glybochychka, Kyiv region ................................................................................................ Project Morshin-Absolyut, Lviv region ........................................................................................... Project Kashtan, Lviv region .......................................................................................................... Project Pomirky, Lviv region .......................................................................................................... Project Koljarevskogo, Lviv ............................................................................................................ Project Olymp, Lviv ......................................................................................................................... Project Kristal and Almaz, Lviv ................................................................................................... Project Strijska, Lviv ....................................................................................................................... Project Volosianka Village, Lviv region ......................................................................................... Project Fortress of Hetmans, Tchernivti region ............................................................................. Project Amadeus, Khmelnytsk region ........................................................................................... Project Arkadia Zhemchuzhina, Odessa ....................................................................................... Section B Projects General Information ............................................................................................ Project Arena, Kharkiv region ........................................................................................................ Project Temp, Kharkiv ................................................................................................................... Project Central, Donetsk ............................................................................................................... Project Ukraina, Donetsk .............................................................................................................. Project Grand-Hotel, Donetsk region ............................................................................................ Project Druzhba, Donetsk ............................................................................................................. Project Staro, Kyiv .......................................................................................................................... Project Boryspil Plaza, Kyiv region ................................................................................................ Project Morshyn, Lviv ..................................................................................................................... Project Villa Shevchenko, Lviv region ........................................................................................... Project Villa Oksana, Lviv region ................................................................................................... Project Villa Maria, Lviv region ...................................................................................................... Project Lypynskogo, Lviv ............................................................................................................... 21 21 31 39 45 51 55 57 63 69 79 89 97 103 111 117 123 133 139 145 155 165 170 174 174 176 178 180 182 184 186 188 190 192 194 196 198
Foreword
25,4
20,7
21,1
2008
2009 2010
Currently, every year between 20 and 25 million people visit the country. Ukraine's tourism industry recovers from the crisis and shows a clear upward trend. Visitors come mainly from neighbouring countries, the lion's share from Russia. Crimea and Kiev attract some 60 percent of the inbound tourism. In the West it is Lwiw (Lemberg) that sticks out with some one million visitors per year. In rankings of the World Tourism Organization, Ukraine was in 2008 among the top 10 of international destinations. This brochure is meant to give an overview on latest market developments in Ukraine. It is based on figures provided by the National Statistical Office of Ukraine.
One of the conditions for Ukraines hosting Euro 2012 finals is the qualitative and timely preparation of the hotel enterprises. Ukraines major task in preparing the accommodation infrastructure is meeting all UEFA requirements on the quantity of the hotel rooms in regards with the categories 3*, 4* to 5* to accommodate UEFA family. According to UEFA requirements Ukraine is to provide 15.555 rooms in category 3*-5* hotels for accommodation of UEFA target groups. 366 hotels are to be secured
by the end of November 2011. In order to do that it is planned to reconstruct 267 operating hotels and to finish the construction of 99 hotels. In particular, 45 hotels should be built in Kyiv, 24 in Lviv and 15 hotels in Donetsk and Kharkiv each, with the total capacity of 15.137 rooms. The state provides attractive incentives for investors and operators. All hotels with more than a 3 stars category have begun to modernize in 2011 and will be finished in September 2012. The hotels will enjoy profit tax vacation for 10 years.
CIS countries 15,4 million EU countries Other countries 5,3 million 458,1 million
Decrease of the incoming tourists from the EU countries occurred mostly due to the descent number of travellers from Poland, Great Britain, Denmark and Romania. Increase of the incoming tourist from the Commonwealth of Independent States (CIS) occurred mostly due to the rising of the number of travellers from Azerbaijan, Belarus, Kyrgyzstan, Uzbekistan and Russia.
Business trip 0,7 million Organized tourism Private tourism 1,2 million 19,2 million
1 Russia 7 881 321 2 Moldova 4 057 678 3 Belarus 3 056 157 4 Poland 2 085 245 5 Hungary 941 240 6 Rumania 909 553 8 Slovakia 609 279 7 Germany 225 356 9 USA 122 955 10 Uzbekistan 104 719 Total for 10 countries 19 993 503
Georgia (by 32 percent or 7.700 persons), Belarus (by 9 percent or 98.800 persons), Kazakhstan (by 63 percent or 1.900 persons), Russia (by 5 percent or 251.900 persons) and Turkmenistan (by 42 percent or 2.800 persons). Table 5 Rating of the main 10 countries of the outgoing tourism:
Total for 2010 persons 17 180 034 share 100 % 30 % 23 % 11 % 10 % 7% 3% 3% 2% 2% 2% 93 % 2010/2009 + 12 % +5% + 35 % -5% + 12 % +9% -8% +4% +2% 2 times + 39 %
1 Russia 5 233 972 2 Poland 3 999 602 3 Moldova 1 889 724 4 Hungary 1 789 308 5 Belarus 1 135 094 6 Romania 503 195 7 Turkey 459 061 8 Slovakia 383 961 9 Germany 383 325 10 Egypt 328 623 Total for 10 countries 16 105 865
Increase of the outgoing tourist stream from the EU countries was mostly due to the increase of the number of Ukrainian tourists travelling to the following countries: Poland (by 35 percent or 1 million persons), Germany (2 times or by 193.300 persons), Italy (by 13 percent or 13.100 persons), Greece (by 61 percent or 24.000 persons), Hungary (by 12 percent or 186.700 persons). Increase of the outgoing tourist stream from the CIS countries was mostly due to the increase of the number of Ukrainian tourists travelling to the following countries:
In 2009 there were 1.684 different hotel facilities comprising 174.400 accommodation units in Ukraine. According to the functional structure of the hotel enterprises on the territory of Ukraine the temporary accommodation services in 2009 were provided by: 858 hotels, 26 motels, 5 hotel and office centres, 9 campsites, 54 youth tourist camps and mountain shelters, 184 hostels, 548 other places for temporary residence. The number of hotels in Ukraine has increased by 20 enterprises or 2,4 percent in comparison to the year of 2008. Despite of this growth Ukraine is still a good deal behind his neighbour Poland. In comparison Poland in 2009 there are 1.809 Hotels and in 2010 1.900 Hotels and figures will go up to 2.100 hotels. (Source: Germany trade and invest) Germany, one of the leading countries in hotel business has about 17.800 Hotels. The most widespread form of accommodation in Ukraine are hotels (51,0 percent of overall quantity of hotel enterprises) and other places for temporary residence (32,6 percent), the latter along with the traditional hotel enterprises offer to their clients the full range of services on reception, accommodation, food and serving. In some regions, especially during vacation season, other places for temporary residence are able to accommodate more clients than the main hotel enterprises. They include season recreation zones, little summer houses, cottages etc., that seem to provide temporary accommodation during the vacation period. In 2009 there were 407 such enterprises or 74,3 percent of overall quantity of other places for temporary residence. Most of them were in Kherson (99), Mykolajiv (93), Louhansk (42), Cherkassy (25), Dnipropetrovsk (22) and Chernihiv (19) regions. Hostels occupy third place in systematization of hotel enterprises by type. In 2009 there were 184 enterprises comprising 11.900 accommodation units. Other types of enterprises, such as motels, hotel and office centres, campsites, youth tourist camps and mountain shelters that due to their accommodation capacity and functionality are widespread in many countries and play an important role in the branch development, in fact are not well developed in Ukraine.
1 All data are from the Ukrainian National Statistic Office 2011
Table 6 Quantity of hotel enterprises by type, their single and average accommodation capacity in 2009
Quantity, units All types enterprises rooms Hotel Motel 1684 858 76019 42798 467 62 100,0 174398 51,0 1,5 0,3 0,5 3,2 10,9 32,6 77610 910 102 504 5753 11878 77641 by type, percent In N Capacity in of beds average of enterprises rooms beds 45 50 18 12 24 43 25 47 104 90 35 20 56 107 65 142
Youth tourist 9 220 camp and mountain shelter Hostel 54 2334 Other places 184 4609 for temporary residence 548 25529
The increase in the hotel quantity was observed in the Lviv region by 7 hotels, in the Crimea region by 5 hotels; in Transcarpathian and Donetsk regions and in the city of Kyiv by 4 hotels in each one respectively; in Kyiv, Mykolajiv and Chernivtsi regions by 2 hotels respectively; in Zaporizhya, Ivano-Frankivsk, Cherkassy regions and in the city of Sevastopol by one hotel in each listed area respectively. Along with that fact there was a decrease in the number of hotels comparing with 2008 in Louhansk region by 3 hotels; in Poltava, Kharkiv, Khmelnytskyi and Chernihiv regions by 2 hotels in each region respectively; in Vinnytsya, Zhytomyr and Odesa regions by one hotel in each one respectively. The decrease in the number of hotels mostly occurred due to their sale to some physical persons or transfer for reconstruction of housing, offices and medical buildings.
The total accommodation capacity of Ukrainian hotels from 2000 to 2004 inclusive was constantly reducing while using less than one third of the accommodation reserve. Significant improvement of the situation is being observed starting from 2006 and this positive tendency still remains.
The coefficient of the hotel capacity usage in 2000 2009
0,4 0,25 0,32 0,34 0,23 02 2000 2003
2006
2009
10
The efficiency of the hotel usage depends on many factors: service quality, star category of hotels, and presence of structural subdivisions that provide additional services, comfort and technical equipment of the rooms. In 2009, there were 42.800 rooms (in 2008 42.200) in the country hotels, in the whole their living space increased comparing to 2008 by 44,2 thousand meters square and was 975,800 meters square. The average living space of one hotel room was 22,8 meters square (in 2008 22,1 meter square). The increase in the number of rooms and their living space was connected with the growth of hotel quantity in some regions. Thus, in comparison to 2008 the room number in Dnipropetrovsk region increased by 265 hotel rooms or 11,2 percent, in the Crimea by 227 rooms or 5,4 percent, in Kyiv region by 173 rooms or 15,2 percent, in Lviv region by 158 rooms or 4,8 percent, in IvanoFrankivsk region by 146 rooms or by 11,8 percent and in Zaporizhya region 141 rooms or by 11,9 percent. Along with those facts there was some reduction in the room quantity in some regions that mainly occurred because of the hotels bouilding up, sale to some physical persons, reconstruction of rooms for housing, offices or rooms for medical purposes. But the decrease in the number of rooms did not necessarily involve the respective decrease in the size of their living space. Thus, in Donetsk region the number of rooms reduced by 97 units, but the living space of rooms increased by 3994,0 metres square, in Louhansk region the number of rooms reduced by 46 units, while the living space increased by 19,9 sqm, in Vinnytsya region the number of rooms reduced by 25 units, and the living space increased by some 4.000 sqm. It proves that hotels were rebuilt and reconstructed in order to increase the living space of the rooms, to improve the room layout and to provide more convenient and comfortable condition for living. The average room capacity in Ukraine did not changed in 2009 compared to 2008 and was 1,8, from 1,5 to 1,6 in Zaporizhya, Donetsk, Kirovograd, Louhansk and Kharkiv regions, from 2,0 to 2,4 in the Crimea and the regions of Vinnytsya, Transcarpathians, Rivne, Ternopol, Ivano-Frankivsk and in the city of Sevastopol.
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Along with those facts there was an increase in the number of triple and extra bed rooms in the hotels of 8 regions of Ukraine in 2009 in Rivne and Ivano-Frankivsk regions and the Crimea (by 44, 29 and 27 rooms respectively in comparison to 2008) with the new hotels functioning on these territories. 3.622.200 persons were provided with the accommodation services in 2009 in Ukraine that was less than in 2008 by 21,1 percent; among them 2.753.100 persons or 76,0 percent of the whole number of visitors were accommodated in hotels. In Ukraine during 20002007 (except insignificant decrease in 2002 and 2005) the number of persons using hotel services tended to grow in a positive way. As from 2008 this number began reducing. And in 2009 this quantity reduced by 874.000 persons or by 24, 1 percent comparing to 2008.
The number of persons accommodated in hotels in 20002009 (per thoussand)
4.000 2.839 3.107 3.528 2.753 2.000 2000 2003
795.000 persons (21,9 percent), 745.000 of them stayed in the hotels that is less than in 2008 by 198,500 or 21,0 percent. Though practically the whole territory of Ukraine has potential for a developed tourism industry. However, the intensity of foreign visits differs in its particular regions. 72,2 percent of foreign tourists have stayed in the hotels of Kyiv, the Crimea, and Lviv and Odessa regions. But the duration of their staying period decreased in 2009 comparing to 2008 by 204.000 persons per day or by 13,3 percent. The main reason for the decrease was the rise in hotel prices, and the accommodation prices in particular.
2006
2009
Poland
USA
Belarus
Turkey Others
7,2%
6,9%
5,4%
3,1%
3,1%
3,1%
2,7%
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The volume of services provided by all types of accommodation enterprises comprised 73, 5 million US dollars or 73, 8 percent of overall scope of export of accommodation services in 2009. The level of comfort is one of the most important quality characteristics of accommodation. The criteria for assignment to certain categories of hotels are quality of rooms and public facilities, availability of shower and bathrooms, furnishing standards, kindness, quantity and quality of technical equipment, premises design, personnel quantity and qualification, level and range of food service etc. For now, there is a national standard ISO 4269:2003 Tourism services. Classification of hotels and hotels and motels have 5 category classification (rating from one to five stars).
additional services. Practically three quarters (74,1 percent) of overall quantity of hotels listed the following as the objects of services restaurants, cafes and bars. Most dining places like in 2008 ., functioned in Kyivs hotels 100 units or 15,7 percent of total quantity of all restaurants, cafes and bars functioned at the premises of Ukrainian hotels, in Lviv region 84 or 13,2 percent, the Crimea 63 or 9,9 percent, Donetsk region 48 7,5 percent, Odesa region 45 or 7,1 percent and Transcarpathian region 40 or 6,3 percent. Each hotel in the Crimea, the regions of Donetsk, Ivano-Frankivsk, Lviv, Odesa, Kharkiv, Chernivtsi and Transcarpathian region, Kyiv and Sevastopol had a dining place. Practically each second hotel in 13 regions of Ukraine had a functioning restaurant, caf and bar. Each third hotel in Zaporizhya region had at least one restaurant, while each forth hotel in Rivne region had a caf and a bar at its premises. Along with that the hotels of some regions do not have dining spots at all; on each eighth hotel in Louhansk region and each ninth one in Chernihiv region had a restaurant, a caf or a bar.
Hotel Services
More than one third of hotels (37, 3 percent) had parking places, and a bit more than a half (57, 8 percent) saunas and laundries. The significant number of parking places function near the hotels in the Crimea 60 or 18,8 percent of overall number of parking sites near hotels, in Kyiv 28 units or 8,8 percent, in Lviv region 23 units or 7,2 percent, in Donetsk and Odessa regions 19 units or 5,9 percent in each one, and in the Transcarpathian region 18 or 5,6 percent. IvanoFrankivsk, Odessa, Soumy, Kharkiv and Transcarpathian regions are the best parking secured regions, each second hotel had a parking place there. At the same time in some regions there were no parking places on the territory of hotels, because only each sixth in Chernihiv region and each eighth in Louhansk and Rivne regions had such objects. The significant number of saunas and laundries functioned in the hotels of the Crimea 62 or 12,5 percent of overall number, in Lviv region 56 or 11,3 percent, in Kyiv 54 or 10,8 percent, in Donetsk region 41 or 8,3 percent and in the Transcarpathians 37 or 7,5 percent. At the same time the saunas and laundries are practically absent in the hotels of some regions: only each fifth hotel in Mykolajiv and Rivne regions and each 14th one of Louhansk region had such service item in their list of services.
Unfortunately, at present the hotel infrastructure of Ukraine does not meet demand for hotel services either by quantity or by quality; material base and technical equipment of majority of hotels are physically and morally out of date and do not respond to international standards. The list of additional services of Ukrainian hotels is significantly poorer than in the majority of European hotels that offer more than 80 items of
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The income of the accommodation enterprises of Ukraine in 2009 comprised 4, 5 billion Hrivnas (approximately 450 million Euro) (taxes excluded), and 90,0 percent of that sum was the income of the hotels, the rest 10,0 percent was earned by the accommodation enterprises of other types. The total hotel income excluding taxes decreased in 2009 by 208 million Hrivnas or 4, 8 percent in comparison to 2008 and it was 44, 5 billion Hrivnas (approximately 450 million Euro). Almost half of the total income (44,1 percent) was received from the main activities accommodation price, 17,4 percent from providing with the additional services, 38 percent, and 5 percent from other activities. In comparison to 2008, the structure of the hotel income underwent some insignificant changes. Thus, along with the decrease of the income from the main activities by 0,9, there was the increase of income from the additional services by 0, 5 and from other activities by 0,4. This suggests that in the conditions of the worlds economic crisis the hotels losing income from their main activities, so that the hotels have to offer some additional services and facilities in order to generate income.
In 2009 comparing to 2008 the income for foreign tourism decreased by 1,8 million Hrivna and was 913,7 million Hrivna. (42,3 percent of overall income from the main activity). The hotels of Kyiv earned the highest income for foreign tourism 574,5 million Hrivna. or 62,9 percent of the total income received from foreign tourists. A significant contribution to Ukraines overall foreign income was made by the hotels in the Crimea (7,6 percent of the overall income), as well as the hotels of Lviv, Odesa, Kharkiv and Donetsk regions (from 6,8 to 3,2 percent). The hotel economy is the business sphere where only those hotels can compete who offer high quality services to their clients, which is impossible without professionally trained personnel. In 2009, the hotel personnel included 27, 1 thousand persons, which are 1.903 persons or 6,6 fewer than in 2008. The reduce of personnel quantity was connected with job cuts because of the economic crisis. It was an inevitable step for the sake of cost cuts on staff wages. Thus, the countrys average quantity of personnel in one hotel was 32 persons. An average monthly wage of a person decreased in comparison to 2008 by 26,2 Hrivna and was about 1.800 Hrivna or about 180 Euro per month.
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temporary accommodation services was also received by entrepreneurs in Dnipropetrovsk region - 25,7 million Hrivna. or 7,7 percent of overall incomes from the hotel enterprises run by physical persons in Ukraine. The income of entrepreneurs in Kyiv was 7,3 percent of overall income from private hotels, in Odesa and Donetsk regions 7,2 percent to 6,9 percent respectively.
Obviously, the hotel economy is an important component of tourism industry. Its effective function indicates positive changes in the countrys economy. It is also the important precondition of intensification of international relations and country integration into the world community. Improvement of accommodation quality in Ukraine according to the international standards is the priority in development of hotel industry; along with improve of tourism technologies, introduction of new kind and forms of servicing that will allow satisfying the needs of clients to a greater extent.
Distribution of the direct foreign investments in development of hotels and other places for temporary residence by January, 1st 2010
Cyprus
Great Britain Switzerland Russian Federation USA Others British Virgin Islands
18,7%
14,7%
9,8%
9,0%
5,4%
13,0%
3.407 accommodation units were put in operation in Ukraine in 2009, 1.662 of them in 36 brand new hotels. Reconstruction of already functioning buildings helped to increase the number of accommodation units by 1.745; almost half of them (49,3 percent) were put in operation in the city of Kyiv and the Crimea. The tourist camps for 353 accommodation units also began to run. Since January 2010, the direct foreign investment in the development of hotels and other places for temporary residence have amounted to 258,9 million US dollars which was 0,7 percent of the total direct investment in Ukraine.
31 countries of the world have invested in Ukraines economy. The biggest investments for the development of the hotel economy of Ukraine were made by Cyprus 76,1 million US dollars, Great Britain 48,5 million US dollars, Switzerland 38,2 million dollars, Russian Federation 25,3 million US dollars, USA 23,2 million US dollars and British Virginian Islands - 14,0 million US dollars.
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Foreign Trade
Russia and the European Union are responsible for more than half of Ukraine's trade. The USA is a relatively small trade partner, accounting for only 2.9 percent of exports and 3.3 percent of imports. In 2008, metals accounted for more than 41.2 percent of Ukraines exports, however, due to decline in the global demand, the share of metals in the exports structure declined to 33.4 percent in 2009. Ukraine is a member of the International Monetary Fund (IMF), the World Bank, and the European Bank for Reconstruction and Development (EBRD). Ukraine also cooperates with the Organisation for Economic Highly Positive Reforms/Actions Taken by Ukraine between 2000 and 2008
WTO accession (and all reforms embedded in this process) Reduction of non-payment and barter transactions, especially in budget-related transactions and the energy sector New Joint Stock Company law that brings corporate g overnance closer to OECD standards Agricultural land titling Allowing entry of foreign banks Adoption of the Budget Code, establishment of the budget classification system and introduction of equalization formula into inter-governmental fiscal relations Establishment of the Treasury system, including Treasury Single Account that services the budgets of all levels of government Creation of internal audit function and improvement of available fiscal information Reduction of tax expenditures, including dismantling Free Economic Zones (FEZ) loopholes Introduction of flat rate for personal income tax The implementation of the Trends in International Mathematics and Science Study (TIMMS) and independent evaluation/ examination in schools.
Source: Ukraine. Country Economic Memorandum. Strategic Choices to Accelerate and Sustain Growth, WB, 2010
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Cooperation and Development (OECD), but is not a member. Since May 2008 Ukraine is a member of the WTO. In addition, Ukraine has concluded a number of bilateral agreements concerning trade, avoidance of double taxation, and mutual guarantees of investments. Table 8 Key Macroeconomic Indicators
Indicator Nominal GDP, UAH billion Real GDP, % change Consumption, % change Fixed Investment, % change Export, % change Import, % change GDP deflator, % change CPI, % change eop Current Account Balance, % GDP Terms of Trade, % change Budget revenues, % GDP Budget expenditures, % GDP Fiscal balance (with Naftogaz, w/o bank recap), % GDP External debt, % GDP Public and Guaranteed Debt, % GDP 2005 441.5 2.7 15.7 3.9 -12.2 6.4 24.6 10.3 2.9 8.3 41.8 44.1 -2.3 45.3 17.7 2006 544.1 7.3 12.4 21.2 -5.6 6.8 14.8 11.6 -1.5 4.9 43.7 45.1 -1.3 50.4 14.8 2007 720.7 7.9 13.6 23.9 3.3 21.5 22.7 16.6 -3.7 9.8 42.3 44.3 -2.0 58.6 12.4
It also has a free trade agreement with Russia, as well as countries of the Commonwealth of Independent States (CIS).In 2008, Ukraine and the European Union launched negotiations on a free trade agreement.
2008 949.9 2.1 9.0 1.6 5.2 17.1 29.2 22.3 -7.2 6.1 43.9 47.0 -3.1 83.6 20.1
2009 914.7 -15.1 -12.1 -46.2 -25.6 -38.6 13.7 12.3 -1.6 -6.8 40.7 49.4 -8.7 90.8 34.7
2010 1081.9 4.3 6.5 3.2 6.5 10.8 13.4 9.8 -2.2 1.4 43.2 49.7 -6.5 82.2 7 41.6
2011 F 1243.3 4.0 3.2 5.5 5.5 5.7 10.5 10.7 -3.1 0.0 41.6 45.1 -3.5 7.7 42.8
2012F 1417.5 4.5 4.2 7.6 5.1 5.7 9.1 8.9 -3.4 0.5 40.7 43.2 -2.5 72.4 42.6
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The Government has taken on ambitious activities aiming at improving the current situation in practically all the economy sectors from metallurgy to building and construction. A number of laws and Cabinet resolutions have been elaborated and adopted to resolve issues in various sectors. These specifics include resolutions to provide favourable environment for investments in the construction sector, improve and cheapen licensing and permit-issuing procedures, implement a competitive framework for land plot and related development rights acquisition, provide incentives for the use of alternative energy sources and fuels, expanding the domestic market for local machine-building, agro industrial etc. companies.
4 billion 605.8 million US dollars (76.9 percent of the total volume), CIS countries invested 849.2 million US dollars (14.2 percent), and other countries of the world 531.0 million US dollars (8.9 percent). Investment was made mainly in the form of cash contributions, which sum up to 5 billion 684.8 million US dollars (95.0 percent of invested amount). Increase in the total foreign capital in the economy, given its revaluation, losses, exchange rates, etc., amounted to 4 billion 655.0 million US dollars for 2010. Increase in foreign capital was observed at enterprises engaged in financial activities (in the amount of 2 billion 628.5 million US dollars), real estate transactions, leasing, engineering and provision of services to entrepreneurs (485.6 million US dollars), trade, repair of motor vehicles, household goods and items of personal consumption (447.9 million US dollars), as well as at industrial enterprises (766.2 million US dollars). Both domestic and foreign investors still encounter difficulties at a practical level. These do not relate specifically to the issue of foreign ownership or investment, but rather to enforced arbitrarily administrative hurdles, or random delays. Foreign investments are not to be subject to nationalisation, expropriation, requisition, or any other measure of similar effect, except it is in the public interest. In such cases, compensation must be provided to the investor based on the market value of the property. (source: Source: PriceWaterhouseCoopers)
Source: Ukraines rank acc. to International Financial Corporations Doing Business 2011 Annual Report
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1.3.
Hotel classification (stars): 1.4. 1.5. 1.6. Type of hotel: Number of rooms: Room category: Type Single Twin with two separate bed With extra bed 1.7.
Approximate price (room price for one person): Single .................................................90-150 EUR Twin .................................................. 135-200 EUR Suite ................................................. 250-350 EUR Apartment ......................................................... EUR Note: Armani and DSquared theme interior in the suite rooms. Restaurant: 1 Conference-hall Swimming pool Fitness centre Sauna Medical care Business-centre Parking Currency exchange
1.8.
Note: Buildings are designed in such a way that crossings of guests and personnel flows are minimized to let the former freely conduct their activities: whether participating in business meetings or attending SPA centre simply in slippers and bathrobe directly from their rooms.
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1.9.
Restaurants: Type Total number of seats Cuisine Italian and national Price Average cheque: 50 EUR Average cheque: 15 EUR Interior Venice hall, Anieri library-hall Lounge style Other
1. Restaurant de luxe 3 halls, DaVinci belongs to 150 seats restaurant chain Kozyrna karta 2.Lounge-hall bar 50 seats
Theme bar
3. Breakfast hall
90 seats
1.10. Conference-hall: Type Conference hall in building console Total number of seats 200 Quality Price 90 EUR/hour 450 EUR/day Interior 5* hotel interior. Exit to the roof where open terrace is located. Technical equipment Projector, presentation board, monitor, Wi-Fi, sound system, of synchronized interpreting.
Room for negotiations 10 in the hotel building Conference hall in the 120 building of business centre
5* hotel interior Presentation board, monitor, Wi-Fi Business class interior Projector, presentation board, monitor, Wi-Fi, sound system, system of synchronized interpreting. Presentation board, Wi-Fi Presentation board, Wi-Fi, sound system
Room for meetings and seminars Hall for trainings and seminars.
12 30
1.11. Fitness centre: Note: Situated near the SPA zone, exit to the swimming pool, 5.3 m height.
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2. LOCATION
2.1. 2.2. 2.3. Address: 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 GPS-coordinates: 36.278984 Place characteristics: 50.04488 Business centre Park zone
Note: Business complex is located in the park city zone along the entry road from 105 highway Moscow-Kharkiv to Sumska central street. Distance to: City centre : ................................6 km The nearest airport: ............. 18,5 km The nearest railway station: . 10,7 km 105 highway : ......................0,5 km 2.4. Transport connections (types of public transport): Underground..................... Yes 6 km Bus/Trolleybus ..................Yes directly Tram ...................................... Yes 1 km River tram ........................................No Route taxi ..........................Yes directly Note: There is transport connection from the railway station to the city centre and some parts of the city. The opening of the new route is being negotiated; it will connect business centre, airport and Metalist stadium. 2.5. Map:
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3.2.
3.4.
3.5.
If building/ reconstruction is on, please describe state of building: State of object: Building state: Modernizing reconstruction and new construction. First phase of project: Reconstruction of Business centre - 7 storeys (S=7 882 m2) 100% (acting Business centre) Construction of hotel-restaurant - 4 storeys (S=2473 m2) 100% (acting Cosmopolit hotel and DaVinci restaurant) Second phase of project: Planning stage (before the start of construction) 100% Construction stage 6% Business complex in the whole 61% Present building expenses: First phase of project: Equity of 2890 thousand EUR and TULCO loan (Swiss company TULCO Holding AG), the rest of which comprises 4444,4 thousand EUR for 01.01.11. Second phase of project: Equity of 370 EUR used: Planning stage (before the start of construction)92,6 thousand EUR Construction stage...77,4 thousand EUR
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If building/ reconstruction is on, please describe state of building? Does constructing continue\ or is it stopped? Construction works continue. Present situation with contractual agreement: Contract with building company is valid
What permits/licenses would you need to get? We already have all permits and licenses. Is the land purpose in line/will it be in line with project implementation of hotel construction? Present land purpose 1. Operating and maintaining administrative buildings and constructions. 2. Operating and maintaining economic block and the entry to a non-residential building Future land purpose 1. Operating and maintaining the hotel building, administrative buildings and constructions 2. Operating and maintaining the hotel building.
5.
What land rights have you got at the moment? Rights Land ownership Building ownership Kharkiv City Bureau of Technical Inventory 22.05.2002 15.04.2005 14.07.2010 14.07.2010 13.12.2002 05.11.2003 01.06.2027 01.10.2028 Own property Given by? When? Valid till Notes Leasing The entry to a non-residential building, office, restaurant, hotel;
Land leasing
Leasing of building 5.1. Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership?
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14.
What is your experience in hotel/ tourist/ restaurant business? Managing the five star hotel for 5 years. Managing Class de luxe restaurant for 6 years. What is your motivation for implementing this hotel project? Holding the leading position on the market of commercial real estate of Kharkiv. Increasing current capitalization up to ~ $29 million. Including in to worlds brand hotel network (ex. Mariott, Radisson). Satisfying UEFA demands on the 5* accommodation in Kharkiv during Euro 2012.
15.
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4.
Loan: Foreseen for the project in total:..................... 9260 EUR Available ........................................... EUR Already invested in the project ........................ EUR
Note: 9260 thousand EUR loan is planned to use in parts, 4444,4 thousand EUR for refinancing TULCO loan, and - 4815,6 thousand EUR for financing the second construction phase. 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? Planned payback term - 6,2 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? Average operating expenses during 2011-2018 (current production and maintenance) -1716765 EUR annually (loan costs excluded). Please see p. III.6. for details. 6. What annual turnover can be expected after completion? What annual turnover will be in the future? 3417615 EUR on average during 2011-2018 annually. Year 2011 2012 2013 2014 2015 2016 2017 2018 Total Income, EUR 1 494 000 2 912 401 3 140 885 3 418 493 3 721 086 4 050 912 4 410 421 4 192 719 27 340 918 Expenses, EUR 973 779 1 444 063 1 478 506 1 520 354 1 867 575 2 102 156 2 204 972 2 142 711 13 734 116 Net operating profit, EUR 520 221 1 468 339 1 662 379 1 898 139 1 853 511 1 948 755 2 205 450 2 050 007 13 606 801 Operating profitability 53% 102% 112% 125% 99% 93% 100% 96% 99%
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.
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2.
What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor(<50 %) Managing partner Creditor (Loan) Brand partner Building company Architecture/engineering company Preferred Acceptable Objectionable
3.
What amount should be invested and what are the investors rights in this connection? Profit distribution between the investor and the enterprise proportionally according to share of registered capital.
4.
Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine.
V. MARKET ANALYSIS
1. GUESTS
1.1. Hotel target group: Business clients ................................... ~ 40 % Show business ..................................... ~ 5 % State officers, including top ones ....... ~ 20 % Tourist or private visits......................... ~ 35 % 1.2. Average room price for one person: Opening ..................120 EUR* In 5 years ...............100 EUR* * - Euro currency change in 1,6 times during 5 years. What occupancy do you predict? 1.3. January ................................... 40 % February .................................. 45 % March ...................................... 45 % April ......................................... 50 % May .......................................... 60 % June ......................................... 50 % July ......................................... 50 % August.................................... 45 % September ............................ 55 % October .................................. 60 % November .............................. 60 % December.............................. 40 % Ukraine ....................~ 30 % CIS............................~ 20 % Europe .....................~ 30 % USA ..........................~ 15 % Other ......................... ~ 5 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Avrora - 4* , 37 rooms, Aristokrat restaurant ZS Club - 4* , 15 rooms Britania - 4* , 33 rooms, Britania restaurant
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2.2.
Are there some other hotels being built in the near? Yes: the 5 star hotel of DCH group of companies the 5 star Superior Golf Club hotel What marketing steps are you planning for hotel popularization? Own website............................................................................................ Yes Cooperation with tourist companies night stay ................................... Yes Cooperation with aircraft companies budget trips .............................. Yes Cooperation with aircraft companies ................................................... Yes Advertising .......................................................newspaper, tv and internet Corporative clients ................................................................................. Yes Loyalty programme ................................................................................. Yes Participation in the activities of Premier hotel network. .................. Yes
2.3.
2.4.
What are the weak and the strong points of the project? Weak points Time restriction (-2012) Strong points Project included in the base of strategically important investment projects of Ukraine. www.in.gov.ua/index.php?lang=ua&get=571&id=2602 Project included in the target programme on Euro 2012 on different stages; State resolution of the Cabinet of Minister 937 of 16.10.08 and 357 of 14.02.10 Regional resolution of 61 session of regional council of15.09.10 unicipal resolution of 48 session of municipal council of 22.09.10)
2.5.
Contact person:
Demjanenko Svitlana Ph. 38057 7 199 536, fax: 38057 7 199 535 E-Mail: S.Demyanenko@telesensventures.com
2.6.
Who filled in the form? Experts of the management company. Date: Languages: 10.02.2011. interpreter/translator available
Who is the current contact person of the project? Demjanenko Svitlana Ph. 38057 7 199 536, fax: 38057 7 199 535 E-Mail: S.Demyanenko@telesensventures.com Date: Languages: 10.02.2011. interpreter/translator available
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I.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
1. GENERAL INFORMATION
Hotel rating (stars): First (****) Hotel theme: No. of rooms: Room categories:
Note: 17 doubles, seven executives, 2 suites of rooms. Doubles for individuals with special needs (17,9 m2 area) are located in the left wing. Executive suite areas range from 42 to 54 m2; the area of a suite of rooms makes 90 m2 1.8. Indicative price (of the room, per one person): Single ...........................................EUR 60 Double..........................................EUR 100+ Executive ......................................EUR 200 Suite of rooms .............................EUR 300 Note: all rooms have jetties. The suites of rooms are two-storey with two bathrooms on each floor. 1.9. Hotel servicing facilities: Restaurants (no.): .......................150 seats Conference hall ...........................30 seats (83 m2 area) Swimming pool: ...........................a big summer swimming pool with bar Fitness centre (in the spa salon) Sauna (hammam) First-aid post Parking lot (for 30 cars) Currency exchange desk Note: The land plot area allocated for new development makes 0.868 ha; it adjoins the already built club of the ARADA Hotel (three-star) with the 1.2 ha area. Hence, the total Project area with adjacent territory makes for around two hectares.
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1.10. Restaurant: Type 1.European 2.Hunters 3.National 4.Summer Total seats 150 30 Up to 50 Cuisine national, Asian, French, Mediterranean Price Up to EUR20 UR 15/20 UR 15/20 UR 15/20 Interior design Classic Wood, fur, arms, rarities On a river bank with a fireplace On a river bank with a fireplace Other EUR15/20 (w/out strong spirits) Already built Already built Already built
1.11. Conference Hall: Type 1.Business Total seats Up to 100 Quality Supreme Price EUR300 Interior design Modern Technical support Presentation equipment (overhead, presentation board, monitor), Wi-Fi Internet access
1.12. Fitness centre: Note: The fitness centre located on the second floor of the spa salon; hammam, two massage parlours; hairdressers; a swimming pool with Jacuzzi and heating.
2. LOCATION
2.1. 2.2. Location: 3 Radgospna St., Dzerzhinsky District, Kharkiv, Ukraine (Oleksiivsky meadow park) Location outline: Beach Park area Note: The facility is located in the recreation area on the beach of the Lopan River in a picturesque beach locality. There are five summer swimming pools, 15 hotel rooms, three restaurants, a concert place and summer bars developed and operating within the area. 2.3. Distance from: The downtown area: .........................7 km Nearest airport: ............................. 15 km Nearest railroad terminal: ...............7 km Motorway: ...................................... 0.5 km 2.4. Commuting options (public transport): Underground ............................... Yes 2 km Bus/trolley bus ........................Yes 1.5 km Tram ..........................................Yes 0.5 km Minibus taxi..............................Yes 0.5 km Note: Asphalt road laid via the park area to communicate with the facility location
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1.5.
Map:
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3.5.
Specific features: Type Electricity Natural gas Drinking water Sewage Medium pressure line Q-ty Condition Features
1.6.
Please provide characteristic of the building in the event of construction/renovation commencement: Development project condition (new development; refurbishment; modernisation): The new land plot allocation area is at 0.868 ha (for new development). The maximum development ratio is at 26.4%. The maximum land plot development density is at 2,288 m2 useful area per one hectare. The height of the recreational facility is 19.3 m and of the spa salon, 8 m. Development phase (foundation pit, erected structure (e.g., 20%), ready erected structure): Foundation works. Funds spent to date: $40,000 Building works continue/halted? Not commenced yet. Current situation with the work and labour contract: Contract with development company is effective: n/a Contract with development company has been terminated: n/a
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4.3.
Does/will the designated use of the land plot comply with the hotel development project implementation? Current designated use of the plot Yes (in compliance) Future designated use of the plot Yes (will be in compliance)
4.4.
What land title do you currently have (Please specify the land title you have (property right to land; longterm lease) and the type of documentary proof of that)?: Title Land plot tenancy agreement Property lease agreement Acquired from When? Valid through Notes We already have the land lease agreement for 25 years (until 2032) for the plot with 1.2 ha area and the title to properties developed on it. Which we will obtain after day 20ieth of February, 2011 by decision of Kharkiv City Councils session on the development of a new recreational facility and spa salon.
4.5.
In absence of the title to land plot, will it be possible to buy/acquire ownership of that land plot? The land plot can be purchased whenever the right of tenancy of that land plot exists, and we have it. Yes, we can purchase this land plot.
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11.
Are there any contractual relations related to Project implementation to date? There currently exist contractual relations in respect of the granting of architectural, engineering and technical expert in public catering services.
12.
Do you (or your employees/contractual partners) have previous experience of participation in similar projects? Yes. I had a recreational club, a casino and a restaurant of my own. What is your experience in hotel/tourism/restaurant business? 15 years. What motivates you to implement the above hotel development project? EURO-2012; also, a modern 4-star club-type 40-room hotel in a recreational beach area with 100% load round the year. There is just one smaller hotel with a small swimming pool in Kharkiv.
13. 15.
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5.
Financing model: Please describe your financial considerations regarding the Project. Provide answers to the following questions: What is the envisaged term of investment depreciation? 4.5 to 5 years What current manufacturing (electricity, staffing) and operational (current repairs/ major repairs) costs have been envisioned? Current repairs
6.
What annual turnover amounts can be expected after the completion of development? What will the annual turnover be in future? EUR400,000 500,000 (after the completion of development) 500,000 600,000 (future turnover) Will there be a depreciation fund for operational expenses established or the funding will be provided from current turnover? Pending agreement with investor
What funds the investor will have to invest and what rights related to such investment he/she will obtain? An investor who will invest $5,000,000 will become a founder of PAKMAYA, LTD with 50% share in the company. The invested funds will be used for developing a new building comprising a recreational facility for 26 rooms, a spa salon, a swimming pool, and a bar.
4.
Will the investment have to be a direct one in Ukraine or executed via offshore companies? Not important
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1.2.
Average room price per one person: At opening .................................EURO 60 through EUR300 Five years after opened ...........EURO 60 through EUR300
1.3.
What are your hotel occupancy rate forecasts? January ........................ 100 % February ....................... 80 % March ........................... 80 % April .............................. 90 % May ............................... 100 % June .............................. 100 % July ............................... 100 % August .......................... 100 % September................... 100 % October ........................ 90 % November .................... 80 % December .................... 100 %
COMPETITIVENESS Please provide description of three nearby hotels: MIR, a two-star hotel developed back in Soviet times; Four-star Baden Baden Hotel for 20 rooms located beyond town limits (eight kilometres from the town). Are there any other hotels developed/scheduled for development nearby? No What marketing tools have been planned for hotel promotion purposes? Own web site ...................................................................................... Yes Via tourism companies (as overnight accommodation) ................... Yes Via tourism companies (for economy-class tours) ............................ Yes Collaboration with air carriers ............................................................ Yes Advertising: ...................................................printed media, TV, Internet
2.4.
What are the strong and the weak points of this Project? There are no weak points as it is Kharkivs only hotel & club facility with six swimming pools, three saunas and a concert place. The entrance to the area in summer is fee-based (EUR8-10); stars with show programmes come there on weekends.
2.5. 2.6.
Contact person: +380675702526 Volodymyr Bilyi Name of the person who has filled out the Questionnaire: Name: Filling-out date: Command of languages: Name: Volodymyr Bilyi 11.02.2011 Russian, Ukrainian, German (secondary school level), Turkish Volodymyr Bilyi
Who is the current contact person for the Project? 2.7. Other All the rooms have been booked out by TUE TRAVEL Company (UK) for UEFA Family for the duration of EURO -2012 Football Championship. Disco parties and concert shows are attended by up to 1,000 visitors. 100 to 500 persons pay daytime recreational visits to the poolside. Saunas and restaurants work in winter time. A conference hall for 100 seats is being developed beside the hotel and, in absence of other accommodation facility for visitors, they will accommodate them at ours.
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I.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6.
1. GENERAL INFORMATION
1.7.
1.8.
1.9.
Quality
Price
Interior
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1.10. Fitness centre: Note: Sports resort complex includes fitness centre, sauna, massage and cosmetology facilities.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address: GPS-coordinates Place characteristics: Distance to: City centre, Business centre City centre: ........................................ km The nearest airport: ...................14 km The nearest railway station: ......11 km Highway: .......................................10 km 87, Artema str., Donetsk
Transport connections (types of public transport) Underground ...................................... Bus/Trolleybus ............................ 0,1. Tram ........................................... 0,1 River bus ........................................... Route taxi .................................... 0,1 2.5. Map:
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41
Cost for building and settlement ...........................................1,55 EUR 2. 3. Justification of costs: (table with all important cost figures) Equity: Foreseen for project in total: .............1,75 mio EUR Available: .............................................0,00 mio EUR Already invested in the project .................. 1,75 mio Foreseen for project in total: .............1,55 mio EUR
4.
Loan:
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5.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 7 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? 14 400 000,00 UAH
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target group: Entrepreneurs and business partners Opening 75,0 EUR In 5 years 87,0 .EUR 1.3. What occupancy do you predict? January ............................... 35 % February .............................. 53 % March .................................. 55 % April ..................................... 61 % May ...................................... 65 % June ..................................... 61 % July .....................................73 % August ................................70 % September .........................80 % October ..............................73 % November .......................... 71 % December ..........................82 % Average room price for one person:
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2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Atlas and Victoria hotels seem to the main competitors. Are there some other hotels being built in the near? Second phase of construction Donbass Palace hotel, Poushkinskyi hotel 2.2. What marketing steps are you planning for hotel popularization? Own website......................................................................................Yes Cooperation with tourist companies (night stays) .........................Yes Cooperation with tourist companies (budget trips) .......................Yes Cooperation with aircraft companies .............................................Yes Advertising: ....................................................newspapers, tv, internet 2.3. What are the weak and the strong points of the project? Advantages: Convenient location Expansion of additional services. Sports and resort complex, sauna, beauty salon, internet, conference hall, cafe, coffee bar, pub etc Weak points of the project: none 2.4. 2.5. Contact person: ............................................................. Lebedev Vadim Who filled in the form? .................................................. Lebedev Vadim Date: ............................................................................... 11.02.2011 . Who is the current contact person of the project? .... Lebedev Vadim Date: ............................................................................... 11.02.2011
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I.
1. GENERAL INFORMATION
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
Note: double rooms of two categories (standard and student). 1.8. Approximate price (room price for one person):: Single from 20 EUR. Double from 30 standard (student from 20) EUR. Suite from 50 EUR. Apartments from 100 EUR. Note: Price is the the subject to change depending on inflation and room equipment: 1.9. The hotel can offer the following facilities: Restaurant: 1. Bar: 1. Conference-hall: 1. Fitness centre: 1. Sauna: 1. Medical care: 1. Business centre: 1. Parking. Currency exchange. Note: equipment on agreement with investor. 1.8. Restaurant: Type Total number of seats 1.Restaurant - club 40 (with open terrace) Cuisine mixed Price Interior Other 238700 National Live music Restaurant with theme played by DJ. open terrace) Club type service, (140 sq.m. +94 sq.m) club cards, Kitchen complex mixed cuisine, (107 sq.m.) cocktail bar. mixed 63000 National Caf at day time (60 sq.m. ) theme club at night, live DJ music, various menu.
2.Cocktail bar
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1.9.
Conference-hall: Type
Quality standard
Interior Business-like
1.12. Fitness center: 49000 (70 sq.m.). Note: on agreement with investor.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address: GPS-coordinates: 2, Chaikovskogo str., Artemivsk, Donetska oblast, Ukraine. 48.604312,37.996902 City centre
Note: distance to the bus station 0,7 m, - railway station 0,5 km. City centre: ................................ 2,5 m. The nearest airport : ................ 90 m. The nearest railway station: .... 0,5 m. Highway ....................................... 0,7m. 2.5. Transport connections (types of public transport): Underground ...................................... No Bus/Trolleybus ..................Yes (0,05m) Tram ................................................... No River bus ............................................ No Route taxi .......................................... Yes 2.6. Map:
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Waste water
3.6.
If building/ reconstruction is on, please describe state of building: Is constructing continue\ stopped? : construction has begun yet.
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4.3.
What land rights have you hot at the moment?: Right Land ownership Given by? Ministry of Defence When? 2007 2007 Valid till permanently permanently Note Owner Artemivsk municipal administration Owner Artemivsk municipal administration
4.4.
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Land territory is in constant use of Artemivsk municipal administration.
Are there any daughter enterprises, subsidiaries? no Who is the contact person for this project? Name and contact information: What are his/her functions?: Reva Olexiy mayor of city
What is the investment strategy of Ukrainian partner? construction and operation. Are there currently any contractual relationships on the project? Local officials will favour prompt document preparation. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes, we have (15 foreign partners with foreign capital successfully cooperate with Artemivsk municipal administration). What is your experience in hotel/ tourist/ restaurant business?? 4 city hotels. What is your motivation for implementing this hotel project? Attracting tourists using historic and cultural site of the region.
14.
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V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: tourism, business, sports events, Euro 2012 Average room price for one person After opening 58 EUR. In five years will depend on inflation index. 1.3. What occupancy do you predict? January ....................................80 % February ...................................35 % March .......................................35 % April ..........................................40 % May ...........................................35 % June ..........................................40 % July ........................................55 % August ...................................30 % September ............................80 % October .................................45 % November .............................65 % December .............................60 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: 1. Ukraina hotel. Room number: 107. Hotel classification 2(stars). Average room price: 40. 2. tlantik hotel. Room number:23. Hotel classification: 3 ( stars). Average room price: 50. 3. mega hotel. Room number: 11. Hotel classification: 3 (stars). 2.2. 2.3. Are there some other hotels being built in the near? No What marketing steps are planned for hotel popularization? Own website.........................................................................Yes Cooperation with tourist companies (nights stay) ............Yes Cooperation with tourist companies (budget trips) ..........Yes Cooperation with air-craft companies................................Yes Advertising ........................................Newspapers, tv, internet 2.1. What are the weak and the strong points of the project? Strong points: Political will; developed transport network; presence of tourist sites on the territory. Weak points: 2.2. 2.3. Contact person: insufficient infrastructure level for tourism. Reva Olexiy. Date:11.02.2011 Languages: Name: Date: Languages: Ukrainian, Russian Zhouchenko Iryna. 11.02.2011 Ukrainian, Russian Who is the current contact person for the project?
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I.
1.1. 1.2.
1. GENERAL INFORMATION
2. LOCATION
2.1. 2.2. Location: northwestern part of the city, territory adjacent to Moynaki Lake. Nature of terrain: Moynaki Lake is located within city boundaries. The lake stretches from the south to the north perpendicularly to the sea coastline and forms a rectangle 1.85 km long, 840-890 m wide, having an area of 1800 thousand square meters. The length of the whole coastline equals approximately 6 km. Curative muds, Moynaki Lake brine, thermal springs, mineral waters, shady trees in the park and the air infused of healingl steppe herbs all these turned Yevpatoria into first-class climatic and spa health resort. The general plan of the city development by 2025 stipulates the integrated development of the territory around Moynaki Lake. Sector . The zone of natural landscapes The territory of the recreational forest is attractive for those who prefer dispersed radiation to the bright sun. The sunbeams penetrate through the openwork of crowns of the spread trees. The flows of the fresh air enriched with the iodic fumes of the coastal salt lake mix with the aroma of the park flowers and the resinous smell of the coniferous trees. Air in the park comprises a salubrious mixture and breathing it is quite useful for treatment of the respiratory apparatus diseases. The concept stipulates: 1. Beautification of the recreational forest, equipping of the walkways and health paths. 2. Creation of the infrastructure for the short-term rest in the countryside, spending the leisure time and doing sports. 3. Setting up the sports grounds, bicycle and runners paths, including also devices for moving in the wheelchair. 4. Opening of the car park. Territory of the beach zone: development of salutary beaches. Sector B. The zone of sanatoria and health resorts. The concept stipulates: 1. Construction of recreational objects. 2. Construction of two therapeutic and recreational thermal complexes: SPA centers with the stream, massage and hydromassage rooms, swimming pools and balneological sections using the thermal water of the wells No. 3 and No. 4; building of the servicing institutions. 3. Reconstruction and modernization of Moynaki Mud Treatment Center in accordance with the Concept adopted by the decision of the Executive Committee of the City Council dd. 12 December 2008 No. 863. 4. Reconstruction and improvement of Rodina sanatorium. 5. Construction of a family recreation center.
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6. Construction of servicing institution which will comprise a first-aid emergency station, office of sporting equipment rent, retail outlets. 7. Reconstruction of high-voltage substation. 8. Improvement sewage-pump station of the third boost and water-supply pump hole No. 10. Green plantations. Small green plantations. Sector C. The zones of sports institutions of the health-resort zone. The concept stipulates: 1. Construction of sports buildings: sports-entertaining center; stadium; swimming pool; fitness center; sports center for sports games.
2. Reconstruction with enlargement of tennis courts. 3. Reconstruction of the sports hall for sports games. 4. Construction of open sports grounds for mini-golf, basketball, volleyball, badminton, trainings in tourism technics, handball, as well as for obstacle course, alpinist walls, etc. 5. Construction of a recreational center. Technical and engineering infrastructure: improvement of water-pressure station; improvement of water-supply pump hole No. 4. Parkland: improvement of Moynaki park and construction of terraces; improvement of woodland park, of park area neighboring with sanatorium-and-spa institutions. Territory of the beach zone: development of salutary beaches; allocation of retail outlets; construction of 7 bath-houses along the salutary beach of Public Utility Company Panatseya, sports city and sports grounds. Distance from: Centre of the city: ........................3.0 km Nearest airport: ............................50 km Nearest railway station: ..............2.5 km Autobahn: ......................0.01 0.02 km 2.3. Traffic (Means of mass transport): Bus ......................................................Yes Tram.....................................................Yes Fixed-run taxi ......................................Yes Commentary: there are two-way hard-surface city highways from the tree sides of Moynaki Lake. Pipelines and networks: Electric power .....................................Yes Gas ......................................................Yes Drinking water ....................................Yes Sewage water .................................... Yes
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2.4. Map:
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2.4.
Main Conclusions. The Concept suggested for considering will make it available to utilize more efficiently the potential available in the city, to create the health resort infrastructure while saving natural resources. In terms of recreation, the territory around Moynaki Lake is little-developed. Thus, taking into consideration the peculiarities of natural therapeutic factors of the lake and potential for development will help to create a positive marketing strategy of implementation of efficient means of attracting investments for promoting both Recreational Place Golden Ring of Health and the whole city in general. The strategic plan of Yevpatoria city development stipulates the year-round functioning of the resort, with the main role of the treatment institution played by Moynaki Mud Treatment Center, on the basis of which the creation of a modern all-resort centre for medical rehabilitation of children and adult is planned. Available free areas around Moynaki Lake will make it possible to create SPA centers, hotels and sports buildings which will enable people to combine treatment, rehabilitation, health improvement, recreation and sporting events all over the year. The concept has been developed by employees of the Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council. Contact telephone number: +38 06569-445-15 Telephone/fax: +38 06569-445-14 Contact person: Zoya Nikolaievna Povshenko, Deputy Head of Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council, Head of Section for Strategic Planning and Investment Policy.
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I.
1.1.
1. GENERAL INFORMATION
1.2.
2.
2.1. 2.2.
LOCATION
Location: Nature of terrain: City of Yevpatoria, Kalamitska Bay Centre of the city
Commentary: Kalamitska Bay, or rather part of it, is a cosy place for moorage, Yevpatoria bay with depths up to 10 metres bulged-in into sloping sandy banks almost by 1.5 kilometres. 2.3. Distance from: Centre of the city: .....................2.0 km Nearest airport: ..................... 50.0 km Nearest railway station: ...........1.0 km Autobahn: ................................0.01 km 2.4. Traffic (Means of mass transport): Tram ...................................Yes 0.3 km Fixed-run taxi .....................Yes 0.1 km 2.5. Map:
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I.
1. GENERAL INFORMATION
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
1.8.
The hotel can offer the following facilities: Restaurants: 2 Conference-hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency exchange
1.9.
Restaurant: Type 1. Main 2. Total number of seats 130 70 Cuisine National Mediterranean Price 20 EUR 20 EUR Interior Modern design Modern design Other
Quality
Price
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2. LOCATION
2.1. 2.2. 2.3. 2.4. 2.5. Place characteristics: Distance to: City centre Note: central part of Kyiv downtown City centre:...............................................0 km The nearest airport: ........................... 30 km The nearest railway station: .............. 3 km Highway: .............................................. 3 km 2.6 Transport connections ( types of public transport): Underground: .............................+ Yes 0,2 Bus/Trolleybus ...........................+ Yes 0,2 Tram ...........................................+ Yes 3,0 Route taxi ...................................+ Yes 0,1 Map: Address Kyiv GPS-coordinates: 5002659.58 north langitude, 3003052.32 east longitude.
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3.5.
Features:
Type Electricity Gas Drink water Waste water Amount Status Description
14.
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15.
Management of hotel and resort complex JSC Truskavetskurort that includes resorts, villas and medical facilities. (www.truskavetskurort.ua). What is your motivation for implementing this hotel project? Business expansion and financial results.
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V. MARKET ANALYSIS
1. GUESTS
1.1. Target client group: foreign tourists, Ukrainian citizens coming from other cities to Kyiv, businessmen etc. Average room price for one person: After opening - 200 EUR In 5 years - 230 EUR 1.2. What occupancy do you predict? January ------------------------------------80 % February -----------------------------------60 % March ---------------------------------------55 % April ------------------------------------------65 % May -------------------------------------------80 % June ------------------------------------------80 % July .................................... 80 % August ............................... 80 % September ........................ 65 % October ............................. 55 % November ......................... 50 % December ......................... 70 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: Radisson SAS, Xyatt Regency, InterContinental. Are there some other hotels being built in the near? Yes, Hilton hotel. What marketing steps are you planning for hotel popularization? Own website ......................................................................Yes Cooperation with tourist companies (night stays) .........Yes Cooperation with tourist companies (budget trips) .......Yes Cooperation with aircraft companies ..............................Yes Advertising .....................................newspapers, tv, internet GDS systems, tourist portals, on-line booking systems Corporative clients POST-terminals 2.3. What are the weak and the strong points of the project? Strong points: 1. Location in the historical and business centre of Kyiv. 2. Active development of the market of hotel services in Kyiv. 3. Construction of the new building with unique faade, parking available, convenient entry roads. 4. Hotel capacity and infrastructure according to the standards of international hotel operators. 5. On-line booking via GDS, ADS, IDS-systems and thus creating the base of clients all over the world. 6. Experience in sale of services and forming client bases; 7. Professional management; Weak points: 1. A big amount of investment; 2. Involving of loans decreases the level of financial independence and liquidity of the enterprise; 3. High competitive level. 2.4. Contact person: Igor Shklyarouk e-mail: truskavec@gmail.com mob.+38(098)786-86-86 2.5. Who filled in the form? Name: Date: Languages: Name: Date: Languages: Igor Shklyarouk 03.02.2011 English, Ukrainian, Russian. Igor Shklyarouk 03.02.2011 English, Ukrainian, Russian.
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I.
1. GENERAL INFORMATION
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. Type of project: Name of project: Term of project implementation: Hotel classification (stars): Type of hotel: Number of rooms: Room category: Construction Crowne Plaza hotel complex 4* Construction starts in the first quarter of 2011. Operating from the 3rd quarter of 2012. First class (****) business - hotel 225 Single, Double, Suite, Apartments Restaurant, bars: 3 Conference-hall: 2 Business-centre Parking Beauty salon Shops 1.10. Restaurant: Type Number of seats 45 60 50 Number of seats Quality Price Interior Movable partitions Movable partitions Technical equipment Cuisine Price Interior Other 1. Restaurant (main hall) 2. Restaurant (buffet) 3. Lobby-bar 1.11. Conference-hall: Type 1. Conference-hall, 519 sq.m. 2. Conference-hall, 248 sq. m.
Approximate price (room price for one person): verage room cost 242 Euro The hotel can offer the following facilities:
2. LOCATION
2.1. 2.2. 2.3. Address: a corner of Korolenkivska str. (16-20, 22) and Fizkultury str. (23, 30). GPS-coordinates: Latitude: 50.43154093298215 Longitude: 30.50830364227295. Place characteristics: Business-centre
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PART 2: INVESTMENT PROJECTS IN UKRAINE hotel complex 4* Crowne Plaza Crowne Plaza
2.4.
Distance to:
City centre: ....................................... 2 km The nearest airport: ...................... 34 km The nearest railway station: ........ 2,1 km Highway: ........................................... 50 m
2.5.
Transport connections (types of public transport): Underground ............................Yes 600 m Bus/Trolleybus ...........................es 300 m Route taxi ................................Yes 300 m
2.6.
Map:
Building/decoration characteristics: Glass-fronted hotel is connected to the office building and parking by the stylobate. Type and state of technical equipment: The hotel will be equipped in line with the latest energy-saving and renewable technologies. Features: Type A. Electricity B. Gas C. Drink water D. Waste water Amount 2 W 1,5 W 100 m3/day 100 m /day
3
Status -
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Note: Construction permit will be given in April 2011 when the capital contruction begins. Preparatory works are being carried out at the moment. 4.2. Is the land purpose in line/will be in line with project implementation of hotel construction? Yes, it is Present land purpose: 4.3. Construction of commercial and office complex with Crowne Plaza hotel complex 4* Issued by? Kyiv state municipal administration Kyiv state municipal administration When? 24.09.2010 25.12.2010 Valid till Note Purchase and sale contract Land lease contract (with amendments for 0, 18 hector of adjusting territory.)
What land rights have you got at the moment? Right Land ownership Building ownership Land leasing
Building leasing
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66
3.
Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: Business-tourists, persons attending conferences and other mass events, tourists. Average room price for one person: Since opening 242 EUR In 5 years 274 EUR 1.3. What occupancy do you predict? 1 year .......... 65 % 2 year .......... 68 % 3 year ...........71 % 4 year .......... 75 % 5 year .......... 79 % 6 year .......... 83 % 7 year .......... 83 % 8 year .......... 83 % 9 year .......... 83 % 10 year ........ 83 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Premier Palace 5* hotel Address: 5-7/29, bulvar Shevchenka Opening Year: 2005 The hotel is location in the business and cultural centre of Kyiv, capacity -289 rooms. Infrastructure: 2 restaurants, 3 bars, cafe, 3conference-halls, shops, fitness club, business centre, underground parking, beauty salon. Strong points: Weak points: Opera 5* hotel Address: 53, Khmelnytskogo str. Opening year: 2006 The hotel is located in the centre of Kyiv, capacity - 138 rooms. Infrastructure: restaurant, 2 bars, 6 conference-halls, beauty salon, parking, fitness centre, Strong points: Weak points: Relates to association Leading hotels of the world Very high tariffs. Relation to Premier Palace hotel chain. Location in the city centre. Very high tariffs.
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Natsionalnyi4* hotel Address: 5, Lypska str. Opening year: 2003 . "Natsionalnyi" hotel is located in the downtown Kyiv, capacity - 85 rooms. Infrastructure: restaurant, bar, conference-hall, hairdressers, shop. Strong points: Convenient location; Recently reconstructed; Provides reception of official delegation of Ukrainian government. Service and rooms
Are there some other hotels being built in the near? Yes, Holiday Inn 4*hotel, operator of InterContinental Hotels Group. What marketing steps are you planning for hotel popularization? Own website........................................................... Yes Cooperation with tourist companies .................... Yes Cooperation with aircraft companies .................. Yes Advertising .......................... newspapers, tv, internet Operator of InterContinental Hotels Group will be carrying out marketing and PR, and implement specially elaborated programme that is to start one year before the opening; The hotel will be included to the programme Priority Club Rewards the most widespread programme of clients loyalty with 48 million users.
2.4.
What are the weak and the strong points of the project? Strong points (Advantages) Good location in the Kyiv downtown. Cooperation with InterContinental Hotels Group. Included in the state list of objects of target programme for Euro-2012 preparations Stage of completion of project works, own investments. Resolved land issues Strong external points (opportunities) Restricted number of category 4* hotels. Exemption from income tax for 10 years. Well-known brend Crowne Plaza. Weak external points (threats) Political and legislative risks that can decrease activity and attractiveness for business. Increasing competition. The threat of the second wave of the global recession. Weak internal points (Risks) Working volume
2.5.
Who filled in the form? Name: Anisimova Anna, Date of filling-in: 25.01.2011 Languages: Ukrainian, English. Who is the current contact person of the project? Name: Anisimova Anna, Date of filling-in: 25.01.2011 Languages: Ukrainian, English.
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I.
1. 2. 3. 4.
1. GENERAL INFORMATION
Type of hotel: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc). Number of rooms: Room category: 250 + 12 Single, Double, Semi-suite, Apartments
5. 6.
Note: 100 standard rooms ( 25 sq.m. each), 150 semi-suite (50 sq.m.), 12 bungalow apartmaents (175 sq.m. each) .7. Approximate price (room price for one person): Single .................170 $ Double ...............220 $ Semi-suites ......300/350 $ (one person/two persons) Apartments ......- 450 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 8. The hotel can offer the following facilities: Restaurants: 3 Conference halls: 3 Swimming pool: is foreseen in the resort complex near the hotel Fitness centre: 1 Sauna: is foreseen in the resort complex near the hotel Medical care: 1 Business centre: 1 Parking: 30 + 1500 resort complex Currency exchange Note: As the hotel relates to the resort complex some hotel facilities are provided there in the resort complex. 9. Restaurant: Type 1. Restaurant buffet 2. Restaurant a la carte 3. Lobby-bar a la carte Number of seats 250 Cuisine European and Ukrainian national European and Ukrainian national Starters, alcohol and non-alcohol drinks Price Average 25$/for one person Average 34- 40$/for one person Average 25$/for one person Interior Standard for the four star restaurant Standard for the five star restaurant Standard for the four star hotel Other
60
100
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10.
Conference-hall: Type Number of seats 1.Conference-hal 2. Conference-hall 3. Conference-hall 130 130 130
Price 25$/m
2
Interior
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc). All necessary conference equipment including speaker microphones and LCD-monitors.
25$/m2 25$/m2
Conference service will include a business centre and three conference hall (100 sq.m.each) with possible connection into one big hall. Also there will be used a complex arena for conference purposes during bigger events. 11. Fitness centre: Note: Fitness centre will be located in SPA-centre (connected to hotel with glass tunel), equipped according to the latest technologies, free for hotel guests. Location 12. 13. 14. 15. Address: Litvinovka village, Vyshgorodsky region, Kyivska oblast GPS-coordinates: 5072'40'' north langitude 3022'36'' east longitude Place characteristics: Suburbs Distance to: City centre: ..................................... 40 km The nearest airport: : .................. 80 km The nearest railway station: ........ 46 km Highway: ....................................... 7,6 km 16. Transport connections ( types of public transport): Route taxi ................................ Yes 0,5 km Note: Easy to get by straight entry 17. Map :
Note: Object is located on 19,6 h territory 35km from Kyiv in the most picturesque place of Ukraine.
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18.
What is the base of building? Construction and settlement will be done in accordance with all norms and requirements. Architecture and planning elements should be in line with DBH .2-9-99 requirements. It is plan to use concrete, metal and glass construction and other high quality and ecologically clean materials. Technical information: Building ground: Number of storeys: 15000 m2 + 8000 m2 hotel -5, bungalow-1
19.
Building/decoration characteristics: Multifunctional suburban resort complex of sports , entertaining and healing destination implies zone organization of land territory, where all infrastructure objects are business units intended for specific use of clients. Resort-recreational zone of the complex includes the hotel complex of unique design, family bungalow, SPA-complex, restaurant complex, classical bath complex, swimming pools and safari parks with alleys for warking. Sports-entertaing zone implies availability of multifunctional arena, tennis club, football pitch and all-year ski facility.
20.
Type and state of technical equipment : It is planned to used of renewable energy sources and latest technology that provide environmental protection.
21.
Features: Type Electricity Gas Drink water Waste water Quantity N/A* N/A* N/A* N/A* Status Supply chain in the territory Supply chain in the territory Supply chain in the territory Supply chain in the territory Description N/A* N/A* N/A* N/A*
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3.
What permits/licenses would you need to get? The project of land us should be approved, we also miss the state expertise, the construction permit, permit from Sanitary epidemiological station, the fire safety permit, and licenses for organization of accommodation facilities.
4.
Is the land purpose in line/will be in line with project implementation of hotel construction? Present land purpose Individual gardening Future land purpose Partially individual gardening, partially commercial use Given by? When? Valid till Notes
5.
What land rights have you got at the moment?: Right Land ownership Building ownership Land leasing Building leasing Long term contract on leasing of 70 hectors of adjusting territory for organization of safari-park (till ). Other Land territory is in permanent property (State act on the property right of the land territory 708434).
6.
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land?
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7.
Are there any daughter enterprises, subsidiaries? Yes Euroshina Ltd..................................................................www.euroshina.com.ua Anna Bublik fashion house...............................................www.annabublik.com urobud ............................................................................ www.euro-bud.com.ua urotextile Ltd .................................................................... www.euro-textile.com Ukrainian postal systems Ltd ..................................................www.uaps.net.ua Tire.ua Ltd .......................................................................................... www.tire.ua
8.
Who is the contact person for this project? Name and contact information: Grankin Vladyslav, mob: +38 (067) 509 60 62 vlgrankin@euro-bud.com.ua What are his/her functions? Finance director
9.
What is the investment strategy of Ukrainian partner? Project developing, long-term management with participation of strategic investor. Possible partial or complete object sale. (depending on implementation stage)
10.
Are there currently any contractual relationships on the project? Agreements on architect services (OJSC "Ukrainian zonal scientific reseach institute on civil constructions"), on technical expertise (Horwath HTL, WingField Corporation), pre-agreement with building enterprise of potential general subcontractor Altis Holding
11.
Have you (your colleagues or contractual partner) got previous experience in similar projects? Horwath HTL and WingField Corporation are considered to be the most experienced in implementating similar projects abroad (in particular, park network Centerparcs and many other hotels thoughout the world. Altis Holding and OJSC "Ukrainian zonal scientific reseach institute on civil constructions" are the leading building companies of Ukriane experienced in implementating big infrastructural , commercial and housing project. The latter is not only one of the leaders among project institutes of Ukraine and also a successful leader in unique non-typical projects using latest technologies.
12.
What is your experience in hotel/ tourist/ restaurant business? Holding related Housewille Villa Holidays company is dealing with organization of villa vacations of middle class, premium class and de luxe in Tailand, Italy, Greece, France and others. This experience will be used for this project.. Also promotion company of our holding is dealing with organization of international competitions, reception of sports delegations, stars and vip-guests. Thus our managers are greatly experienced in cooperation with Ukrainian and international hotels, analyzing their level, strong and weak points, advantages and risks. Besides the owner of this project is a business man and spends a lot time on international trips. He was learning and analyzing all exiting propositions on hotel services for many years that help to create this project using the worlds best experience.
13.
What is your motivation for implementing this hotel project Examples of successfully functioning analogue projects all over the world and the need of Ukrainians and citizans of Kyiv primarily in qualitative tourist-entertaining services. The main purpose of project: implementation the first for Ukraine project based on international standard quality, organization of highly profitable business, favourable influence of development of the region and tourism branch of the country.
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Average cost of per one sq.m. - 570 $ Cost of design works - 41 $/ sq.m. Settlement costs 794 $/ sq.m. 3. Equity: Capital foreseen for project in general: 10403000 $ Available: 0 Already invested in the project 10403000 $ 4. Loan: Foreseen for project in general: 74263000 $, 26837806 $ Available 0 Already invested in the project 0 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments?
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Note : full payback - 2 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
What annual turnover can be expected after completion? What annual turnover will be in the future? Amortization excluded
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Armotization fund will be established.
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II.
1.
MARKET ANALYSIS
Target client group: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Target group of the resort complex includes: total working population of Ukraine (21,2 million people excluding population of Kyiv); all foreign tourists coming to Ukraine (23,1 million people per year); total working population of Kyiv (1,6 million people).
1. GUESTS
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2.
Average room price for one person: Single 170 $ Double 220 $ Semi-suite 300/350 $ (one/two persons) Apartments - 450 $
Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 3. What occupancy do you predict? January .....................................55 % February ....................................55 % March ........................................55 % April ...........................................60 % May ............................................60 % June ...........................................60 % July ........................................... 65 % August ...................................... 65 % September ............................... 65 % October .................................... 60 % November ................................ 55 % December ................................ 65 %
2. COMPETITIVENESS
1. Please describe three nearest hotels: LITVINOVKA Entertainment is potentially the first multifunctional resort complex in Ukraine. But let us analyze competitiveness of some of its services. We considered the objects with similar to Litvinovka main characteristics, formating principles, positioning, volume capacity and closeness to the object of research.
Koncha Zaspa Boujmerovka Vyshegrad Litvinovka
Glebovka
Dozvillya
Admiral
Lisova
No.
1 2 3 4 5 6 7 8 9 10 11 12
Services
Accommodation (hotel, bungalow) Catering facilities (restaurants, bars) Recreation facilities (SPA) Entertaining infrastructure (casino, bowling) Sports activities (tennis, fishing, football) Water services (swimming pools, sauna) Business services (office, conference hall) Logistics level (class of enterprise) Service level Service multifunctionality (complex servicing) Modern engineering systems (heating, internet) Additional facilities (laundry, parking) Average points
4 1 1 2 1 3 1 2 1 3 2 1 1
1 2 1 2 2 3 0 2 1 2 3 1 1
1 2 0 2 0 4 0 2 1 2 3 2 1
4 5 1 3 4 3 3 4 3 4 4 3 3
4 2 4 5 4 4 4 3 5 4 3 3
4 2 4 2 3 3 4 4 4 4 4 4 3
4 1 1 2 3 0 2 2 2 2 0 3 1
Vorzel
3 2 3 3 4 3 3 2 2 3 1 2 2
5 5 5 5 5 5 5 5 5 5 5 5 5
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2. 3.
Are there some other hotels being built in the near? What marketing steps are you planning for hotel popularization? Own website........................................................................................Yes Cooperation with tourist companies (night stays) ...........................Yes Cooperation with tourist companies (budget trips) .........................Yes Cooperation with aircraft companies ...............................................Yes Advertising ....................................................... newspapers, tv, internet
4. 5.
What are the weak and the strong points of the project? SWOT Analysis of project Strong points Only potential competitors; Closeness to the capital city; Political support due to relation to Euro 2012 State target programme; Wide scope of facilities diversify risks; All seasonable.
6.
Opportunities Reduce in prices for building materials due to economic crisis; Purchase of neignbouring territories (at the moment 16 hector in property); Opportunity to accommodate several football teams during Euro 2012; Forming international brand LITVINOVKA Entertainment and inclusion to national tourist routes; Providing clients with service packages and establishing loyalty programme; Participating in the state support programmes for sports, tourism and youth. Putting into operation during the period of active increase of Ukraines after-crisis economics. Weak points Difficulties to attract financing; The need to conduct highly expensive marketing campaign; The need to change land purpose of part of the object. Short period of time for implementation (before start of Euro 2012); High volume of funds (though typical for the industry). Decrease of population income. Political instability; Non-availability of financial resources during constructing period; Possible Ukraines deprival of hosting Euro 2012.
7.
8.
Risks
9.
Contact person: Grankin Vladyslav, mob: +38 (067) 509 60 62 vlgrankin@euro-bud.com.ua Who filled in the form? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English Who is the current contact person of the project? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English
10.
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I.
1. 2. 3. 4. 5.
1. GENERAL INFORMATION
6.
Note: 20 standard rooms (25 m2 each), 5 (50 m2 each), 2 apartments (130 m2 each) 7. Approximate price (room price for one person): Single 160 $ Double 200 $ Semi-suite 300/330 $ (for one/two persons) Apartments - 440 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 8. The hotel can offer the following facilities: Restaurants: 2 Conference-hall: 1 Swimming: is foreseen in the sports resort complex near the hotel Fitness centre: 1 Sauna: is foreseen in the sports resort complex near the hotel Medical care: 1 Business centre: 1 Parking: 300 Currency exchange: 1 Note: The hotel is a part of the sports resort complex so some of its facilities are provided in the complex premises
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9.
Restaurant: Type 1. Restaurant buffet 2. Restaurant a la carte 3. Lobbi-bar Number of seats 250 60 100 Price Average cheque for one person 25$ European and Average cheque Ukrainian nationanal for one person 35-40$ Starters, alcohol Average cheque and non-alcohol for one person drinks 25$ Cuisine European and Ukrainian national Interior Standard for the four star restaurant. Standard for the five star restaurant Standard for the four star hotel Other
10.
Quality Class
Price 25$/m
2
Interior
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc). All necessary conference equipment including speaker microphones and LCD-monitors.
11.
Conference service will include a business centre and three conference hall (100 sq.m.each) with possible connection into one big hall. Also there will be used a complex arena for conference purposes during bigger events. Fitness centre:
Note: Fitness centre will be located in SPA-centre (connected to hotel with glass tunel), equipped according to the latest technologies, free for hotel guests. .
2. LOCATION
2.1 2.2 2.3 2.4 Address: Obukhiv, Kyivska oblast GPS-coordinates: 50 9'11.16" north. latitude, 3040'5.85" east. longitude. Place characteristics : Suburbs .......................... Distance to : City centre : ..................................... 43 km The nearest airport: ........................ 82 km The nearest railway station : ......... 47 km Highway: ............. Right along the highway 2.5 Transport connections (types of public transport): Route taxi .................................. Yes 0,5 Note: Easy to get by the straight entry from the Kyiv-Louhansk road.
Note: The object is located on 3,7 h territory 37km from Kyiv in one of the most picturesque place of Ukraine.
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2.6 Map :
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4.
Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations: 34911645 Extract from EDRPOU is in the annex of this form Yes Founders (for juridical person): Serhijenko Olexander and Drachouk Olga Governing body: LLC Director Main activities of Ukrainian partner: Institute for land relations and investment projects LLC is a company making business in the hotel and restaurant sphere. The hotel and restaurant complex Goudvin can serve as a good example of such object.
5. 6. 7.
8. 9.
Registered capital:
paid-in:
Are there any daughter enterprises, subsidiaries?Yes SPA Horizont LLC (Land survey and research) Tedox LLC (Projects and constructions) Brend LLC (Restaurant and entertaining business)
10.
Who is the contact person for this project? Name and contact information: Omeljanenko Valerij , mob: +38 (067)466-87-11, tedox@ukr.net Position: Head manager of the project
11.
What is the investment strategy of Ukrainian partner? Project developing, long-term management with participation of strategic investor.Possible partial or complete object sale. (depending on implementation stage)
12.
Are there any current contractual relationships on the project? Agreements on architect services (" -III "LLC ) and with building company Tedox(potential general contractor).
13.
Have you (your colleagues or contractual partner) got previous experience in similar projects? Our colleagues developed and implemented projects on cottage cities: Sonychyi bereg, Sosnovyi bor, Grin-Zund and Karolina. They are also experienced in construction of micro regions, for instance, in Obukhiv, Vyshgorod, Ukrainka, Kagarlyk and Boguslav. What is your experience in hotel/ tourist/ restaurant business? Institute for land relations and investment projects LLC has four year experience in hotel and restaurant business.
15.
What is your motivation for implementing this hotel project? Increase in Ukrainian demands for high quality hotel and entertaining services greatly motivates us in constructing complex that will provide high standard services on accommodation and entertainment on the territory of Kyiv region.
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Average price for one square meter 650 $ Costs for design works 42,0 $/ sq. m. Settlement costs 980 $/ sq.m. 3. Equity: Foreseen for project in general: 2 100 000 $ Available 0 Already invested in the project 2 100 000 $ 4. Loan: Foreseen for project in general : 52 797 500 $, for constructing hotel complex Available 0 Already invested in the project 0 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? Note: full payback of the complex in 7,5 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
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Operating expenditure of the Project Food and alcohol drinks Materials Staff wages Charges for FOP Advertising Transport expenses Municipal expenses Administrative expenses Total operating expenditure 6.
Total for 8 years $2 151 528,48 $4 331 800,50 $4 315 720,00 $1 627 026,44 $18 300,00 $48 000,00 $181 832,00 $159 936,00 $12834 143,42
Share in total expenditure 16,8% 33,8% 33,6% 12,7% 0,1% 0,4% 1,4% 1,2% 100%
What annual turnover can be expected after completion? What annual turnover will be in the future? Amortization excluded Income Restaurant Hotel sector Townhouses Roller-drom/ disco Bar Billiards Rent of conference halls etc. Fitness SPA services Mini-golf Mini-football Tennis Commercial premises rent Total Total for 8 years $11 330 346,43 $2 789 640,00 $5 898 900,00 $7 641 720,00 $3 769 908,00 $603 720,00 $1 624 912,00 $24 598 800,00 $57 088 950,00 $728 960,00 $1 122 000,00 $406 320,00 $1 537 500,00 $119 141 676,43 Total income share 9,51% 2,34% 4,95% 6,41% 3,16% 0,51% 1,36% 20,65% 47,92% 0,61% 0,94% 0,34% 1,29% 100%
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Armotization fund will be established.
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2.
What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architecture/engineering company Preferred Acceptable Objectionable According to agreement of the parties
3.
What amount should be invested and what are the investors rights in this connection? Information above, please see p.1. Investor will be granted the bigger share to own the project.
4.
Should investment be made directly to Ukraine or via some off-shore companies? No difference
V. MARKET ANALYSIS
1. GUESTS
1.1 Target group: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Target group of the resort complex includes: total working population of Ukraine (21,2 million people excluding population of Kyiv); all foreign tourists coming to Ukraine (23,1 million people per year); total working population of Kyiv (1,6 million people). 1.2 Average room price for one person: Single .............................................................160 $ Double ...........................................................200 $ Semi-suite ...... 300/330 $ (for one/two persons) Apartments................................................. - 440 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 1.3 What occupancy do you predict? January .....................55 % February ....................55 % March ........................55 % April ...........................60 % May ............................60 % June ...........................60 % July .....................................65 % August ................................65 % September .........................65 % October ..............................60 % November ..........................55 % December ..........................65 %
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2. COMPETITIVENESS
2.1. Please describe three nearest hotels: The project of hotel with 250 person capacity is a unique opportunity of constructing comfortable zone for active sports and entertainment taking into account all weak points of similar objects on the Dnipro river near Kyiv. No. 1 Name of object Visit hotel complex Location Obukhiv region. located on the Kozynka river 29 km from Kyiv. Facilities On the territory: - parking; - 35 rooms; - sauna, swimming pool; - mangal spot Facilities:- billiards; - caf, bar. Business facilities: - conference hall for 25-30 persons. On the territory: - a building for 20 persons; - a wooden building for 16 persons; - Fire place hall; - several types of sauna; - bath complex. Business facilities: - conference hall. On the territory: - a building for 176 persons. Facilities: - football, volleyball; - big tennis, basketball; - paintball. Business facilities: - conference hall. - Restaurant with European cuisine. - Large summer terrace. - Hotel of 13 rooms. - Outdoor games: chess, darts, cricket, badminton, , mini-football, table tennis. - Event organization for children. - hotel of 22 rooms , Louhansk highway. - SPA-centre, - restaurant, - conference hall.
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2.2 2.3
Are there some other hotels being built in the near? no What marketing steps are you planning for hotel popularization? Own website........................................................................... Yes Cooperation with tourist companies (night stays) .............. Yes Cooperation with tourist companies (budget trips) ............ Yes Cooperation with aircraft companies .................................. Yes Advertising .......................................... newspapers, tv, internet
2.4
What are the weak and the strong points of the project? SWOT Analysis of project Strong points Only potential competitors; Closeness to the capital city; Wide scope of facilities diversify risks; All seasonable Opportunities Reduce in prices for building materials due to economic crisis; Purchase of neignbouring territories (additional ownership of 1,0 acre territory); Providing clients with service packages and establishing loyalty programme; Participating in the state support programmes for sports, tourism and youth. Putting into operation during the period of active increase of Ukraines after-crisis economics. Weak points Difficulties to attract financing; The need to conduct highly expensive marketing campaign. High volume of funds (though typical for the industry). Risks Decrease of population income. Political instability; Non-availability of financial resources during constructing period;
2.5 2.6
Contact person:
Who filled in the form? Name: Omeljanenko Valerij Date: 09.02.2011. Languages: Ukrainian, Russian, Spanish Who is the current contact person of the project? Name: Omeljanenko Valerij Date: 09.02.2011 . Languages: Ukrainian, Russian, Spanish.
2.7
Other There is a detailed business plan with all necessary calculations for this project. It is possible to add water sports facilities to this project as there is a beautiful site of Stougna river shore overlooking the Dnipro , or some other services according to the investors wishes.
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I.
1.1. 1.2. 1.3. 1.4.
1. GENERAL INFORMATION
Construction Construction of the three-star hotel at 16, Hlybochitska str.
Type of hotel: business, tourist, for long staying period. Number of rooms: Room category:
Note: 100 single rooms (25 m each), 100 double rooms (50 m2), 50 suites (100 m2 each). Each category will also have subcategory (standard, medium comfort, business class). 1.8. Approximate price (room price for one person): Single 90-115 USD Double 120-170 USD Suite 185-380 USD 1.9. The hotel can offer the following facilities: Restaurants: 2 restaurants, 2 bars Conference-halls - 2 Swimming pool - 1 Fitness centre 1 Sauna - 1 Medical care 1 Business centre - 1 Parking 200 cars Currency exchange Note: Office centre can be added to hotel facility structure. 1.9. Restaurant: Type 1.Restaurant buffet 2.Restaurant a la carte 3. Coffee-bar Number of seats 250 Cuisine European and Ukrainian traditional European and Ukrainian traditional Starters, alcohol and non-alcohol drinks Starters, alcohol and non-alcohol drinks Price, USD Average 6-12/for one person Average 40-50/for one person Average 15/for one person Average 25-30/for one person Interior Standard 3* Other Breakfast, business lunch
60
Standard 5* Standard 3*
30
4.Lobbi-bar
30
Standard 5*
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Quality Class
Interior Standard 4*
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc) . All necessary conference equipment including speaker microphones and LCD-monitors.
2.Small hall
50
Class
500/250
Standard 3*
Note: All additional equipment available under additional request and at extra price. 1.11. Fitness centre. Note: 100 sq,m,, all professional equipment, men/women separately, shower cabin etc.
1. Location
1.1. 1.2. 1.3. 1.4. Address: GPS-coordinates: Place characteristics Distance to: 16, Hlybochitska str., Kyiv 504601- north lang., 305033- east long. City centre, Business centre City centre: Khreschatyk str. 2, 8 m. The nearest airport: : Kyiv...............6, 7 m. The nearest railway station .............2, 4 m. Highway: Kyiv Odesa ....................... 12, 3 m. 1.5. Transport connections ( types of public transport: Underground................................. Yes 486 m. Bus/Trolleybus ............................. Yes 486 m. Tram ...............................................Yes 270 m. Route taxi ..................................... Yes 200 m. 1.6. Map :
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1.4.
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2.4.
What land rights have you got at the moment?: Right Land leasing Given by? 1. Land leasing contract When? 06.09.07 Valid till For 25 years Square of 1 660 sq.m . .For 5 years. Square of 312 sq.m. Notes Tenant Boukhkalov V.B. Tenant Boukhkalov V.B.
06.09.07
Notes: Documentation for the land leasing of 2939,9 sq.m. is being prepared. 2.5. 2.6. Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Yes, I do Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Yes, I do
8. 9.
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11.
Are there any current contractual relationships on the project? Agreements on architect services (OJSC "Ukrainian zonal scientific reseach institute on civil constructions"), on technical expertise (Horwath HTL); agreement with Geoexpert company on conducting geo-engineering research of construction site; The Center of city planning and architecture and Kyiv municipal executive council have approved M1: 500 topoplan of the construction site and all underground communications; Ukrainian National science methodological center for scientific heritage developed and agreed along with the head of Chief protection of cultural heritage the urban and historical grounding; pre-agreement with building enterprise of potential general subcontractor Altis Holding. Have you (your colleagues or contractual partner) got previous experience in similar projects? Horwath HTL and WingField Corporation are considered to be the most experienced in implementating similar projects abroad (in particular, park network Centerparcs and many other hotels thoughout the world. Altis Holding and OJSC "Ukrainian zonal scientific reseach institute on civil constructions" are the leading building companies of Ukriane experienced in implementating big infrastructural , commercial and housing project. The latter is not only one of the leaders among project institutes of Ukraine and also a successful leader in unique non-typical projects using latest technologies.
12.
What is your experience in hotel/ tourist/ restaurant business? Holding related Housewille Villa Holidays company is dealing with organization of villa vacations of middle class, premium class and de luxe in Tailand, Italy, Greece, France and others. This experience will be used for this project.. Also promotion company of our holding is dealing with organization of international competitions, reception of sports delegations, stars and vip-guests. Thus our managers are greatly experienced in cooperation with Ukrainian and international hotels, analyzing their level, strong and weak points, advantages and risks. Besides the owner of this project is a business man and spends a lot time on international trips. He was learning and analyzing all exiting propositions on hotel services for many years that help to create this project using the worlds best experience.
13.
What is your motivation for implementing this hotel project? The main motivations are lack of three star hotels of international standards in Kyiv that is a significant disadvantage of tourist and business attractiveness of the city. It results in unadequate prices in the already operating hotels; the need of Ukrainians and citizans of Kyiv primarily in qualitative touristentertaining services; quick payback of the project due to its convenient location in Kyiv.
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2.
3.
Equity: Foreseen for project in general : .........................................7,5 EUR Already invested in the project ...........................................7,5 EUR
4. 5.
Loan: Foreseen for project in general: ...........................27 921 950 EUR Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 4 years. What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? - Total expenses for one year. ( See p.2).
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Yes.
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V. MARKET ANALYSIS
1. GUESTS
Target client group : First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Average room price for one person: Single ................... 90-115 USD Double................ 120-170 USD Suite ...................185-380 USD 1.1. : Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%.
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1.2.
What occupancy do you predict? January ............................... 55 % February .............................. 55 % March .................................. 55 % April ..................................... 60 % May ...................................... 60 % June ..................................... 60 % July .......................................65 % August ..................................65 % September ...........................65 % October ................................60 % November ............................55 % December ............................65 %
2.
2.1.
COMPETITIVENESS
Please describe three nearest hotels: Lybid 3* - average 3 points due to inequality of prices and service quality; Intercontinental 5* - average 5 points due to high quality of services, Khreschatyk 3* - average 4 points due to excessive price as for a three star hotel. Are there some other hotels being built in the near? No What marketing steps are you planning for hotel popularization? Own website.............................................................................. Yes Cooperation with tourist companies (night stays) ................. Yes Cooperation with tourist companies (budget trips) ............... Yes Cooperation with aircraft companies ..................................... Yes Advertising ..............................................newspapers, tv, internet
2.2. 2.3.
2.4.
What are the weak and the strong points of the project? Weak points: Difficulties to attract financing Building on the territory Location in the resort zone. Exceeding noise level (tram and road connections nearby) High land costs during preparation of land register documents Central location Closeness to Kyiv downtown, transportation Great size of land territory that will allow to create whole hotel complex or office and hotel complex in perspective. No competitors, as there are no three star hotels with high level of servicing in the region. Simple relief of the construction site. Beautiful view from window. Grankin Vladyslav, mob: +38 (067) 509 60 62, vlgrankin@euro-bud.com.ua Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English ho is the current contact person of the project? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English
Strong points :
2.5. 2.6.
Contact person:
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I.
1.1. 1.2. 1.3. 1.5 1.4. 1.5. 1.6. 1.7.
1. GENERAL INFORMATION
Room category: Single: 17, Double: 18, Suite: 4 with three beds each Approximate price (room price for one person): Single ...................... 45 EUR Double .................... 35 EUR Suite........................64 EUR
1.8.
The hotel can offer the following facilities: Restaurant:....................... 1 Conference-hall ................ 1 Swimming pool ................ 1 Fitness centre .................. 1 Sauna ............................... 1 Medical care .................... 1 Business centre ............... 1 Parking........................... 50 Currency exchange .......... 1
1.9.
Restaurant: Type 1.Theme restaurant Number of seats 40 Cuisine European and national Price, USD Interior Other
Quality
Interior
1.1.
Fitness centre.
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Location Address GPS-coordinates Place characteristics: Park zone, beach Distance to: City centre ........................................0,5 The nearest airport:: ..................... 100 The nearest railway station: ...........0,2 Highway: ..........................................0,1 20, Proliskova, Morshin, Lvivska oblast, Ukraine
1.5.
Transport connections ( types of public transport): Bus/Trolleybus ...................................... Yes River tram .............................................. Yes
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3.3.
Type and state of technical equipment: Features: Type Electricity Gas Drink water Waste water Amount 63187W per month 54720 m .per month
3 3
Status
Description possible
3.4.
If building/ reconstruction is on, please describe state of building: State of building: .............................................................................. new construction Building state: .................................................................... construction ready 30% Is constructing continue\ stopped?: ........................................ construction stopped Present situation with contractual agreement (its not concluded yet): ..........Contract with building company is valid
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II.
1.
UKRAINIAN PARTNER
Name of juridical person/physical person-entrepreneur: President of nergoresurs-invest corporation Ivan Nironovych. Address, phone/fax number, e-mail address, other contacts: 131, Zelena str., Lviv 79035 Ukraine, ph.(032)260-12-97, fax 032-225-54-39, info@energoresurs.com
2. 3. 4. 5. 6. 7. 8. 9.
Date of foundation (for juridical person):. Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): Extract from EDRPOU is in the annex of this form Founders ( for juridical person): Governing body: Main activities of Ukrainian partner: Registered capital: nominal: paid-in: Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information: Position:
What is the investment strategy of Ukrainian partner? development, construction, long-term operation. Are there any current contractual relationships on the project? projects developed and partners determined. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? Having relation to hotel/ tourist/ restaurant business. What is your motivation for implementing this hotel project?
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3.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? ..building and main components -12,5 years ...furniture, basic room equipment 2,5 years ...office equipment, survey and access equipment -1,8 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? ...electricity -7000 kW monthly .....staff -46 persons.
4.
What annual turnover can be expected after completion? What annual turnover will be in the future? ..1st year 504000 euro ..Next years 800000 euro
5.
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover?
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group:tourists coming for vacation and medical treatment Average room price for one person : After opening ..................................... 43 EUR In 5 years.......................................... 54 EUR
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1.3.
What occupancy do you predict? January ---------------------------------------- 100 % February ------------------------------------------ 70% March --------------------------------------------- 75 % April ------------------------------------------------ 80 % May ------------------------------------------------- 85 % June ------------------------------------------------ 90 % July ........................................ 90 % August................................... 90 % September ........................... 80 % October ................................. 75 % November ............................. 60 % December............................. 95 %
2. COMPETITIVENESS
2.1. What marketing steps are you planning for hotel popularization? Own website.......................................................................................Yes Cooperation with tourist companies ................................................Yes Cooperation with aircraft companies ..............................................Yes Cooperation with aircraft companies ..............................................Yes Advertising ...................................................... newspapers, tv, Internet
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I.
1. GENERAL INFORMATION
SPA hotel, tourist, sports, for medical treatment and long staying period. 184 Single/double/twin: 165 / Suites: 17 / Apartments: 2
Approximate price (room price for one person): Single/double/twin .,.,.,.,.,. 70 EUR Suite.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.100 EUR Apartments,.,.,.,.,.,.,.,.,.,.,.130 EUR
Note 1.8.
Including accommodation, breakfast and SPA-facilities. The hotel can offer the following facilities: Restaurants: 3 Conference hall: 2 Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency
Note
The hotel project foresees reception zone (entry lobby), commercial zone, restaurant and entertaining zones (night club etc), aqua zone (25x9m swimming pool and zone for children), administration zone, rooms zone. Roofed connection to Med-Palace medical complex including diagnostics centre, water treatment and SPA centre.
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1.9.
Restaurants: Type 1. Lobby bar Number of seats 70 Cuisine European Price, 5 EUR Interior Modern design and elegant furniture Modern design Modern design Technical equipment All necessary for conducting conferences Other
2. LOCATION
2.1. 2.2. 2.3. Address: GPS-coordinates: Truskavets 4901645.97n. latitude., 2303018.73 east. longitude
Note: Located in the historic city centre near the main infrastructure objects (mineral natural source, central park) 2.4. Distance to: City centre : ........................................ 0,2 The nearest airport : ......................... 100 The nearest railway station : ............. 0,5 Highway ................................................ 25 2.5. Transport connections (types of public transport): Underground Bus/Trolleybus Tram River bus Route taxi Note: The airport is located 100 km away from Truskavets at Lviv.
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2.6.
Map:
Building/decoration characteristics: The hotel is connected to Med-Palace medical complex by a covered passage, (Total square of medical complex - 11000 m2)
3.3. 3.4.
Type and state of technical equipment: All innovative technologies are applied to the heating system. Features: Type Electricity Gas Drink water Waste water Quality Status Description
105
What permits/licenses would you need to get? Present land purpose Constructing and maintaining the resort complex
Is the land purpose in line/will it be in line with project implementation of hotel construction?
3.4.
What land rights have you got at the moment? Right Land ownership + Building ownership + Land leasing Building ownership Other Given by? When? Valid till Note
3.5.
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? - Yes.
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7. 8. 9.
Main activities of Ukrainian partner: resort services. Registered capital: nominal: + paid-in: Are there any daughter enterprises, subsidiaries? CJSC Truskavetskurort includes: Resorts: Almaz, Kristal, Rubin, Yantar, Vesna, Beriska, Kashtan; Medical centres: 1, 2 3 Med-Palace; Daughter enterprise Apteka; hydro-geological regime operating station; Shevchenko Palace of culture; affiliates - Logistics enterprise, Auto transport enterprise Diet catering Veselka, Truskavetskurortteproenergo, Supporting manufacturing enterprises.
10.
Who is the contact person of the project? Name and contact information: Igor Shklyarouk 5-7, Studentska str., Kyiv 04050, ph. +38(044) 5869809, mob.+38(098)7868686 e-mail: truskavec@gmail.com Position Deputy head of Survey council board of CJSC Truskavetskurort
What is the investment strategy of Ukrainian partner? Shareholding and management. Are there any current contractual relationships on the project? All agreements available. The hotel construction is under way. Have you (your colleagues or contractual partner) got previous experience in similar projects? We are experienced in constructing and operating hotel and office premises in Kyiv and Truskavets. What is your experience in hotel/ tourist/ restaurant business? Managing resort complex CJSC Truskavetskurort that includes resorts, villas, medical centres. www.truskavetskurort.ua
15.
What is your motivation for implementing this hotel project? Business expansion and financial result.
4.
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5.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? - 13 years. What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? 1. Municipal expenses 2. Staff wages 3. Manufactured goods. 4. Food. 5. Maintenance expenses.
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? Average annual turnover - 4 300000 EUR (including VAT) Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.
108
V. MARKET ANALYSIS
1. GUESTS
1.1. Target group: People with digestion diseases, problems on urinology, genecology, diabetes, those hardworking who would like to get rid of stress, to go on rehabilitazation. Corporative clients. 1.2. 1.3. Average room price for one person: What occupancy do you predict? Opening- 63EUR In 5 years 115 EUR 2012 67%, 2016 73%
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels : Geneve, Chalet-Graal, Rixos Are there some other hotels being built in the near? Yes, some small ones. What marketing steps are you planning for hotel popularization? Own website ................................................................................ Yes Cooperation with tourist companies (night stays).................... Yes Cooperation with tourist companies (budget trips) ................. Yes Cooperation with aircraft companies ........................................ Yes Advertising .............................................. newspapers, tv, internet GDS systems, tourist portals, on-line booking systems .......... Yes Corporative clients ............................................................................ POST-terminals.................................................................................. 2.4. What are the weak and the strong points of the project? The main advantages: 1. Unique mineral water sources of well known balneal resort (Naftousya, Maria, Sofia and others), Truskavets is the only one resort in Europe which main medical profile to treat urine diseases among many other health problems. 2. Well known brand Truskavetskurort; 3. Own medical base. 4. Covered passages to different buildings. 5. Good location in the historical centre. 6. Closeness to the most important infrastructure objects.
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Weak points: 1. A large investment amount; 2. Loans reduce the level of financial indecency and liquidity of an enterprise; 3. Repair will require the hotel to be closed for a while; 4. Thus financial loss; 5. Absence of an official 4* classification; 2.5. Contact person: Shklyarouk Igor e-mail: truskavec@gmail.com mob.+38(098)786-86-86 2.6. 2.7. Who fill in the form? Name: Shklyarouk Igor Date: 03.02.2011 Languages: English, Ukrainian, Russian. 2.8. Who is the current contact person of the project? Name: Date: Languages: . Shklyarouk Igor 03.02.2011 English, Ukrainian, Russian.
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I.
1.1. 1.2.
1. GENERAL INFORMATION
1.3.
Note: Including 66 single rooms, 142 double rooms, 8 suites and 2 apartments. Approximate price (room price for one person): Single .................................. 100,00 EUR Double .................................. 60,00 EUR Suite.................................... 200,00 EUR partments ........................ 300,00 EUR 1.8. The hotel can offer the following facilities: Restaurants: 2 (two) Conference hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency change Note: Bank dept., shops, beauty salon, sports resort centre are planned additionally. 1.9. Restaurants: Type 1. Ethno-restaurant 2. Restaurant 1.10. Conference hall: Type 1.Universal 1.11. Fitness centre: Note: All modern equipment Total number of seats 150 Quality high Price Interior Technical equipment Modern technologies Total number of seats 150 430 Cuisine national European Price Interior Other
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2. LOCATION
2.1. 2.2. 2.3. Address: Territories of the council of Stanyliv village, Drohobytskyi region, Lvivska oblast. Place characteristics: Distance to Suburbs City centre: ...................................... 5 km The nearest airport: .................. 100 km The nearest railway station: ......... 5 km Highway: .......................................... 5 km 2.4. Transport connections (types of public transport): Bus/Trolleybus .................................. Yes Route taxi ........................................... Yes 2.5. Map:
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If building/ reconstruction is on, please describe state of building: CONSTRUCTION PERMITS AND LAND RIGHTS What permits for construction/licenses have you got? Type Project of land use Project documentation Sanitary epidemiological station Fire safety Ecology inspection Issued 05.10.2004 29.12.2010 17.05.2004 07.05.2004 05.05.2004 Construction permit Valid till Note
4.2. 4.3.
What permits/licenses would you need to get? Is the land purpose in line/will it be in line with project implementation of hotel construction? Yes, it is Present land purpose Constructing hotel resort complex (360 person capacity) Future land purpose Constructing hotel resort complex (360 person capacity) Given by? 10.01.2007 When? 10.01.2012 Valid till Note
4.4.
What land rights have you got at the moment? Right Land leasing Drohobychi state region administration
4.5.
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? Yes.
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Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information Position Director
What is the investment strategy of Ukrainian partner? Equity participation, management etc. Are there any current contractual relationships on the project? Architect, engineer and technical expert services. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your motivation for implementing this hotel project? Profit gain
114
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target group: Average room price for one person: Opening ........................................100,00 EUR In 5 years ....................................150,00 EUR 1.3. What occupancy do you predict? January ..................................100 % February ................................... 75 % March ....................................... 75 % April .......................................... 80 % May ........................................... 85 % June .......................................... 90 % July ............................................100 % August.......................................100 % September..................................95 % October .......................................90 % November ...................................75 % December...................................70 % Vacation on balneo resort
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2.
2.1. 2.2. 2.3.
COMPETITIVENESS
Please describe three nearest hotels: Karpatyresort, Perlyna Prykarpattya, International clinic of rehab treatement. Are there some other hotels being built in the near? No What marketing steps are you planning for hotel popularization? Own website..................................................................................Yes Cooperation with tourist companies night stays ........................Yes Cooperation with tourist companies budget trips......................Yes Cooperation with aircraft companies..........................................Yes Advertising .................................................newspapers, tv, Internet
2.4.
What are the weak and the strong points of the project? Location in the park and forest resort zone, large territory, Water basin nearby turning forest zone into dendropark.
2.5. 2.6.
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Note: Including 72 single rooms, 21 double rooms, 75 suites and 11 apartments. Approximate price (room price for one person): Single .................................100,00 EUR Double .................................. 80,00 EUR Suite ..................................200,00 EUR Apartments ........................300,00 EUR 1.9. Approximate price (room price for one person): Restaurant: 1 Conference hall 974,1 m2 swimming pool Fitness centre Sauna and Turkish bath Medical care Business centre Underground parking for 35 cars, ground parking for 19 cars Currency exchange Note: Bank, shops, beauty salon and sports centre are foreseen additionally. 1.10. Restaurants: Type 1.Restaurant 2.Cocktail bar 3.Buffet 1.11. Conference hall: Type 1.Universal 1.12. Fitness centre: Note: All modern equipment Total number of seats 156 Quality high Price Interior Technical equipment Modern technologies Total number of seats 140 8 Cuisine Price European Interior Other
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2. LOCATION
2.1. 2.2. 2.3. Address: Truskavets, Lvivska oblast. Place characteristics: Distance to: City centre: ................................................ 0,5 km The nearest airport: .................................. 80 km The nearest railway station: .........................2 km Highway: ..................................................... 40 km 2.4. Transport connections (types of public transport): Bus/Trolleybus ..................................................Yes Route taxi ..........................................................Yes 2.5. Map: City centre
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3.3.
Features: Type Electricity Gas Drink water Waste water Quantity 1700,0 kW 300,0 m3/hour 213,3 m3/day 206,0 m3/day New building Foundation The works continue Status of supply chains Description
3.4.
If building/ reconstruction is on, please describe state of building: Object state: Building state):
Present situation with contractual agreement: Contract with building company is valid.
Is the land purpose in line/will it be in line with project implementation of hotel construction?
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? Yes.
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120
V. MARKET ANALYSIS
1.
1.1. 1.2.
GUESTS
Target group: Vacation on balneo resort Opening ................... 100,00 EUR In 5 years................. 150,00 EUR Average room price for one person:
1.3.
What occupancy do you predict? January ................................ 100 % February ................................. 75 % March ..................................... 75 % April ........................................ 80 % May ......................................... 85 % June ........................................ 90 % July .................................... 100 % August............................... 100 % September ......................... 95 % October ............................... 90 % November ........................... 75 % December........................... 70 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: resorts: Vesna, Yantar, Kryshtalevyi Palats What marketing steps are you planning for hotel popularization? Own website ................................................................. Yes Cooperation with tourist companies night stays ....... Yes Cooperation with tourist companies budget trips ..... Yes Cooperation with aircraft companies ......................... Yes Advertising................................. newspapers, tv, Internet 2.3. 2.4. 2.5. What are the weak and the strong points of the project? Construction of hotel in the city centre, It is also planned to start constucting modern aquapark. Contact person: Name: Date: Languages: Ivanischev Boris, (067) 3831081 Ivanischev Boris. 02.02.2011 Ukrainian, Russian Who filled in the form?
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Remark: double junior suites are also planned. Approximate prices: double .................................................. 90 EUR junior suite ......................................... 110 EUR superior .............................................. 150 EUR Remark: the price includes breakfast; 1.9. Hotel facilities: rstaurants number: cnference hall swimming pool sauna parking currency exchange Remark: parking space for 20 cars on the adjacent territory Additional services: Lobby bar SPA, hairdresser Booking on the phone and on the Internet Communications (telephone, fax, Internet, Wi-Fi, e-mail) Excursion services Dry cleaning Credit cards accepted
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1.10. Restaurants: Type 1. Restaurant with open view Total number of seats 50 seats Cuisine European Price UAH 180 Interior Interior and concept are to be presented by the network Kosyrna karta Classical Other Restaurant to be managed by the network Kosyrna karta. Partnership terms revenue is shared 50/50 Not only for hotel guests, but also for outside visitors. Venue and waiting place. The menu is to include cold and hot appetizers, alcoholic and non-alcoholic beverages, fresh and original desserts. Cigar menu is a must
2. Lobby bar
80 seats
European
UAH 80
1.11. Conference hall: Type 1. Total number of seats 50 seats Quality Price UAH 800 per hour Interior Technical equipment Fully equipped with wired and wireless devices for conferences, seminars and trainings
1.12. Fitness centre: Remark: Finnish and Romanian saunas with a small pool and rest-rooms are to be arranged fpr the guests. Capacity: 6 to 8 persons. Sauna services will be available for outside visitors as well.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address GPS-data: Distance: Lviv, 1 Zehova str. 4905056.65 N 2400127.03 E
Description of the location: city centre City centre: .................................... 1 km Closest airport: ............................. 6 km Closest railway station: ................ 4 km Highway: ........................................ 3 km
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2.5.
Access by public transport: Subway .................................................. No Bus / trolley-bus ....................Yes 0,01 km Tram ............................................. Yes 1 km River tram ............................................... No Line taxi ..................................Yes 0,01 km
2.6.
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3.4.
Equipment: The heating room is to be equipped with two up to date high-efficiency water boilers. These are low-temperature boilers operated with low-pressure gas. The boilers have fan ignition and are equipped with automatical security and regulation systems. The heating room is to be placed in the attic floor. Other technical features include chemical water cleaning for filling the system, water meters, gas consumption meters and temperature control for smoke gases. Optimal selection of pumps for water supply. Hot water pipelines are insulated against heat losses. Electricity consumption is streamlined with various measures like luminescent lamps. Automation of the processes and ventilation systems. Measures for securing moderate climate conditions in the rooms.
3.5. 3.6.
Specific features: Type ................................Amount Condition (connection with supply networks) ............... Data In case constructions/refurbishing works should start, please describe the condition oft he building: Condition of the building: New building Current stage of the construction works: The monolithic skeleton is complete. The floor surface is ready, stairs and, partly, inner walls are complete. The general construction works are 75% ready. Costs incurred so far: EUR 1518519 The works have been suspended. Is the construction contract still valid: Yes The contract with the building company is terminated The construction works are under way or have they been stopped?
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4.3.
Does/will the purpose of use of the land correspond to the project of hotel building? Current purpose of use for the land Construction of commercial property Future purpose of use for the land
4.4.
What property rights for the land do you have presently?: Right Property right for the land Property right for the building Office for technical inventory and expert assessment City council of Lviv .......................... 02.04.2008, No.18339496 20.09.2004 08.07.2014 Granted by whom? When? Valid till Remark
Other: cadastre number of the lot 4610136600:03.004:0010 4.5. If the property right for the land is missing: is it possible to buy/receive property rights for the land? After putting the object into service it is possible to buy the land
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12.
Are there any contracts regarding the implementation of the project? A contract for the construction works was signed with the building company TVD (Lviv)
13.
Do you (or your employees/partners) already have any experience regarding implementation of such projects? LLC Shuvar has experience in building and operating hotels What experience in hotel/tourism/restaurant business do you have? As a customer only What is your motivation to implement this hotel project? Study of the hotel market and following trends and developments: Implementation of state programs for tourism development; Lviv is a traditional centre for tourism and is a destination for tourists from Russia, Ukraine, Poland and other European countries; Lviv is a business hub for Western Ukraine; Consumers tend to pay more attention to quality than to price now; Main competitors are not in position to meet quality and service standards; Positive development dynamics of tourism in Ukraine.
14. 15.
Favourable conditions for the implementation of the project: Good location of the hotel for the main customers; Positive expectations on the market due to the upcoming EURO2012; Numerous potential customers; Available infrastructure. Main expectations: Completion of the constructions works started in 2008; Putting the hotel into operation; Making revenues and making the project profitable.
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2.
Costs breakdown: (sheet with the main costs) No. 1. 2. 3. 3.1. 3.2. 3.3. 4. 4.1. 5. 6. 7. 8. 9. 10. 11. 12. 13. 13.1. 13.2. 13.3. 13.4. Issuing project documents Renovation of the existing infrastructure (electric power plant, communications, renovation of auxiliary facilities etc.) Construction and mounting works Construction and mounting works, arranging infrastructure Glass Elaborating hotel design, inner decoration works, connection to the infrastructure Decorating the rooms Furniture, equipment, textiles ffice, cleaning and other equipment Saunas and swimming pool Corridors, halls, administrative and other staff rooms Restaurant Hall and lobby-bar Conference-hall Hotel outside territory Computers and software for hotel management Working capital Selection of staff, training Marketing program Purchase of raw materials Paying off credit interest rates Total costs 22 222 14 815 7 407 162 963 4 670 370 303 704 44 444 81 481 44 444 222 222 37 037 22 222 14 815 74 074 1 296 296 740 741 1 259 259 Works Costs, EUR 25 926 296 296
3.
Your own investment: Total sum for the entire project: EUR 1600000 Invested in the project so far EUR 1423000
4. 5.
Debt capital: Total sum for the entire project: EUR 3085000 Financing model: Please present your considerations regarding financing the project. Please answer the following questions: What is the expected term for investment depreciation? 10 operational years What current production and operational costs are to be considered? Production costs food supply, wages for the staff, personal utilities in the bath-rooms, electricity, water supply, heating; Operational costs management costs, payments for communal services, maintenance, guard, licences and permits, average EUR 740000 per year in total
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6.
What annual turnover can be expected after the completion? What is the annual turnover expected to be in the future? Expected turnover after the completion of the construction works: EUR 1200000 per year rising to EUR 1350000 in the future. Are you planning to make a depreciation fund for financing operational costs or do you want to cover these costs from the annual turnover? The operational costs are to be covered from the current turnover, there will also be a depreciation fund for paying off the investment costs.
IV. NVESTOR
1. What can you offer to investors? The company is looking for an investor who can supply a credit for this project against the available property for 10 years. The interest rate should be 10% per year and will be paid off on monthly basis. 2. What kind of investor are you looking for? nvestor Creditor (loan) 3. 4. Preferred preferred Acceptable Unacceptable
What sum should an investor put in and what rights is he supposed to receive in return? EUR 3085000 against property. Should investments be transferred directly to Ukraine or via off-shore companies? Makes no difference
V. MARKET ANALYSIS
1. HOTEL CUSTOMERS
1.1. Customers classification: Business travelers; Tourists who visit Lviv on their own; Organized tourist groups, Ukrainian as well as foreign visitors (mainly from Poland); Corporate customers (conferences, seminars, trainings). Average room price per person: After putting into operation: EUR 110 5 years after putting into service: EUR 110 1.2. What occupancy rate are you expecting? January ....................... 60 % February ...................... 50 % March .......................... 50 % April ............................. 70 % May .............................. 70 % June ............................. 70 % July ...............................70 % August ..........................70 % September ...................70 % October ........................80 % November ....................80 % December ....................90 %
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2. COMPETITION
2.1. Please describe 3 neighboring hotels: 1. Hotel Leopolice. Most expensive and still one of the most popular hotels in the city. It counts 40 rooms and 3 superior suites. The occupancy depends on the season and varies between 60% and 80%. Its positioned as an elite European style hotel with 4 stars. The management plans to increase the number of rooms to 80-120 and to apply for the 5-star status. The main advantage of the hotel is its comfortable location in the centre of the city between the central square and the Svobody avenue. The main drawback is the lack of parking space and slow construction of the second part of the building. The hotel management is pursuing its marketing rather actively. The main marketing tools of this hotel: Internet, sales to travel companies, distribution of catalogues, external advertising. Room prices (www.leopolishotel.com/prices/) Room category Double Junior suite Superior Deluxe suites EUR per night 215 235 340 450 Additional services: Restaurant, bar Library lobby-bar Conference hall with 40 seats Car rental Dry cleaning
2. Hotel Dnister. Large hotel complex built in the Soviet time, positioned as a 4-star hotel. The hotel is part of the network Premier. The hotel has 150 rooms (12 superior rooms, 55 junior suites, 83 standard rooms). Despite the inconvenient location (approx. 2 km away from the city centre) and a low-scale marketing the hotel enjoys rather high occupancy rates thanks to its established brand. Room prices: Room category Standard Junior suite Superior EUR per night 80 90 141 Additional services: 3 conference-halls with capacity from 30 to 180 seats (EUR 100200 per day) 2 meeting rooms (EUR 100 per day) Lobby-bar Business centre Restaurant, bar Beauty room, hairdresser Solarium, sauna Dry cleaning Bank subsidiary
3. Hotel Opera. The main advantage of this hotel is its location in the heart of the city opposite to the opera. Thanks to this the hotel has high occupancy rate without investing too much in marketing and advertising. The hotel positions itself as a 4-star facility of European level. The hotel has 51 rooms (5 superiors, 15 junior suites and 31 standard rooms). Room prices (www.hotel-opera.com.ua/en/nomeri/vartist-prozhivanna:) Room category Standard Junior suite Superior EUR per night 123 144 222 Additional services: 2 restaurants, bar Business centre Conference-hall (EUR 60 per hour), equipment is provided against additional payment Meeting-room (EUR 10 per hour) Dry cleaning
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2.2. 2.3.
Are there plans to build other hotels close to the project location? What kinds of marketing are to be applied?
No
Own website ................................................................................................Yes Travel agencies (promotional stays) ..........................................................Yes Travel agencies (low-cost travels) ..............................................................Yes Cooperation with airlines ...........................................................................Yes Advertising ..............................................................newspapers, TV, nternet Internet-based booking systems (gds/ads/ids) .......................................Yes Pinted materials ...............catalogues, brochures, booklets, posters, cards promotional videos .....................................................................................Yes direct postal distribution ............................................................................Yes souvenirs .....................................................................................................Yes PR-measures...............................................................................................Yes loyalty programs for corporate partners and customers .........................Yes 2.4. Advantages and drawbacks of the project? Advantages: convenient location close to the city centre and to the motorway from Kyiv hotel quality is in line with the market needs (4 stars), low competition in this market segment tax exemption for 10 years wide offer of services, which helps to reduce market and seasonal risks Drawbacks relatively small number of rooms and hence higher maintenance costs; 2.5. 2.6. Contact person: Name: Filled in on: Language skills: Name: Filled in on: Language skills: Telegin Oleg Vitaliyovych Telegin Oleg Vitaliyovych 15.02.2011 Ukrainian, Russian Telegin Oleg Vitaliyovych 15.02.2011 Ukrainian, Russian Who filled in this questionnaire?
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Price
Technical equipment All necessary for conducting conferences: Projector, presentation board, monitor, Wi-Fi, sound system, system of synchronized interpreting.
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1.12. Fitness centre: yes Note: there will be a sports area on the hotel territory.
2. LOCATION
2.1. 2.2. 2.3. Address: Truskavets, historic part of the city. GPS-coordinates: 4901631.32north. latitude., 2302926.46 east. longitude. Place characteristics: City centre Park zone Notes: The hotels are located at the mountain part of resort opposite the beautiful park near the natural source of mineral water. 2.4. Distance to: City centre: ........................................1km The nearest airport: .................... 100 km The nearest railway station: .........1,3 km Highway: ........................................ 25 km Transport connections (types of public transport) Route taxi ............................................ Yes Note: The airport is located 100 km away from Truskavets at Lviv. 2.5. Map:
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Building/decoration characteristics: hotels connected to the balneal clinic by a covered passage. Type and state of technical equipment: The hotels will be equipped in line with the latest energy-saving and renewable technologies. Features: Type Electricity Gas Drink water Waste water Quantity Status of supply chains Description
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4.
Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations)): 30322940 Extract from EDRPOU is in the annex of this form: Yes / No
5. 6. 7. 8. 9.
stockholders. Board of survey council, council board of directors, Director General. nominal
Main activities of Ukrainian partner: resort services. Are there any daughter enterprises, subsidiaries? CJSC Truskavetskurort includes: Resorts: Almaz, Kristal, Rubin, Yantar, Vesna, Beriska, Kashtan; Medical centres: 1, 2 3 Med-Palace; Daughter enterprise Apteka; hydro-geological regime operating station; Shevchenko Palace of culture; affiliates - Logistics enterprise, Auto transport enterprise Diet catering Veselka, Truskavetskurortteproenergo, Supporting manufacturing enterprises.
10.
Who is the contact person of the project? Name and contact information: Igor Shklyarouk 5-7, Studentska str., Kyiv 04050, ph. +38(044) 5869809, mob.+38(098)7868686 e-mail: truskavec@gmail.com Position Deputy head of Survey council board of CJSC Truskavetskurort Shareholding and management.
What is the investment strategy of Ukrainian partner? Are there any current contractual relationships on the project? Agreement on architect service. Have you (your colleagues or contractual partner) got previous experience in similar projects? We are experienced in constructing and operating hotel and office premises in Kyiv and Truskavets. What is your experience in hotel/ tourist/ restaurant business? Managing resort complex CJSC Truskavetskurort that includes resorts, villas, medical centres. www.truskavetskurort.ua
15.
What is your motivation for implementing this hotel project? Business expansion and financial result.
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What is in your opinion the term to amortize investments? 7 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? 1.Municipal expenses 2.Staff wages 3.Manufactured goods. 4.Food. 5.Maintenance expenses. Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.
V. MARKET ANALYSIS
1. GUESTS
1.1. Target group: People with digestion diseases, problems on urinology, genecology, diabetes, those hardworking who would like to get rid of stress, to go on rehabilitazation. Corporative clients. Opening 49 EUR In 5 years 83 EUR
1.2.
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1.3.
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels: Are there some other hotels being built in the near? Karpaty, Perlyna Prykarpattya, Shakhtar. Yes, some small villas.
What marketing steps are you planning for hotel popularization? Own website ........................................................................... Yes Cooperation with tourist companies (night stays) .............. Yes Cooperation with tourist companies (budget trips) ............ Yes Cooperation with aircraft companies ................................... Yes Advertising newspapers, tv, internet GDS systems, tourist portals, on-line booking systems ..... Yes Corporative client POST-terminals
2.4.
What are the weak and the strong points of the project? The main advantages: 1. Unique mineral water sources of well known balneal resort (Naftousya, Maria, Sofia and others), Truskavets is the only one resort in Europe which main medical profile to treat urine diseases among many other health problems. 2. Well known brand Truskavetskurort; 3. Own medical base. 4. Covered passages to different buildings. 5. Absence of medical complexes of category 2-3* at the acceptable price.. 6. Good location in the historical centre. 1. A large investment amount; 2. Loans reduce the level of financial indecency and liquidity of an enterprise; 3. Repair will require the hotel to be closed for a while; 4. Thus financial loss; 5. Absence of an official 2-3* classification; Shklyarouk Igor e-mail: truskavec@gmail.com mob.+38(098)786-86-86
2.7.
2.5.
Contact person :
2.6. 2.7.
Who fill in the form? Name: Shklyarouk Igor Date: 03.02.2011 Languages: English, Ukrainian, Russian. Who is the current contact person of the project? Name: Date: Languages: Shklyarouk Igor 03.02.2011 English, Ukrainian, Russian.
2.8.
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2. LOCATION
2.1. 2.2. Address: Place characteristics: 121, Stryiska str., Lviv, Ukraine Suburbs
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2.3.
Distance to:
City centre: .................................................. 7 km The nearest airport:: .................................. 4 km The nearest railway station: ...................... 5 km Highway:0,4 km
Transport connections ( types of public transport): Bus/Trolleybus ....................................Yes 0,2 Route taxi ........................................................ Yes 2.4. Map :
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If building/ reconstruction is on, please describe state of building: State of building: Building state: Expenses at present: New building Construction has not begun yet 400.000 Euro
Is constructing continue\ stopped? : construction has not begun yet. Present situation with contractual agreement: Agreement with building company has not being reached yet.
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right for land? Yes.
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7. 8. 9.
Registered capital:
Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information: Ivan Loun mob. +380 50 3375010 What are his/her functions? Head of project, hotel consultant Shareholding, management render to hotel operator.
What is the investment strategy of Ukrainian partner? Are there currently any contractual relationships on the project? Agreement on intentions for cooperation with hotel operator. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? 9 years of operation activities and project-management in hotel business.
14.
What is your motivation for implementing this hotel project? Commercial interest.
1.
Total investment: Planning stage (before construction starts) ...............................60,000 EUR Building stage ......................................................................... 6,000,000 EUR Funds for construction ........................................................... 4,000,000 EUR Funds for settlement .............................................................. 2,000,000 EUR
2.
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3.
Equity: Foreseen for project in general: .......................................... 6,000,000..EUR Available .....................................................................................100,000..EUR Already invested in the project ................................................500,000..EUR Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 5 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? See the table above.
4.
5. 6.
What annual turnover can be expected after completion? What annual turnover will be in the future? 1,700,0000 EUR Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Yes, according to requirements of hotel operator.
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: Business and vacation budget tourists Average room price for one person: Since opening .................. 50,00 EUR In 5 years .......................... 58,00 EUR 1.3. What occupancy do you predict? 63 per cent annually
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels: Jockey hotel and Grand resort hotel. Are there some other hotels being built in the near? No. What marketing steps are planned for hotel popularization? All measures taken by hotel operator.
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2.4.
What are the weak and the strong points of the project? Budget hotel positioning that is rare for Lviv market, good road connections, closeness to the ring road and the airport.
2.5. 2.6.
Ivan Loun Ivan Loun 15.02.2011. Ukrainian, Russian, English Ivan Loun
2.7.
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Project type (new development, renovation, further construction etc.): New development. Project name: Hotel facility of suite type (160 places) in Saddle Stow, Volosianka Village, Skoliv Raion, Lviv Oblast Scheduled commissioning date: 2Q/2012. Hotel rating (stars): (see: www.hotelstars.eu): Business (**) Hotel theme: (business, sports, tourist, long-stay accommodation etc..) suite type with a spa facility and mixed-use park area. No. of rooms: Room categories: 84 rooms(with an option to add 19 additional rooms). Single (studio): 39 / Double: 19 / Executive: 18 / Suite of rooms: 8 Single High season: Midterm: Low season: Holidays: EUR80 EUR44 EUR28 EUR120 Double EUR110 EUR68 EUR52 EUR160 Conference hall: 1 Swimming pool: 1 Fitness centre: 1 Saunas: 2 Business centre: 1 Parking lot: 1 Executive EUR152 EUR72 EUR56 200EUR Suite of rooms EUR184 EUR112 EUR80 EUR240
1.9.
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Note: as per proprietary concept, the hotel facility will have other premises, e.g.: cloak rooms for individual storage of skis; sports inventory hire; massage parlours etc. 1.10. Fitness centre: a full set of fitness stations. Note: The hotel facility concept envisions a kitchen in every suite of rooms.
2. LOCATION
2.1. 2.2. 2.3. Location: GPS-coordinates: Location outline: Saddle Stow, Volosianka Village, Skoliv Raion, Lviv Oblast. 48.80391, 23.44476 . Suburbs, Park area
Note: the hotel facility is located in the recreational area of the Carpathian mountains and has a park of its own with the total area of 2.9 ha. 2.4. Distance from: The downtown area: ............................ 3 km Nearest airport: Lviv ....................... 130 km Nearest railroad terminal: .................. 3 km Motorway (Kyiv Chop): ....................31 km 2.5. Commuting options (public transport): Bus/trolley bus ..........................Yes 0.5 km Minibus taxi ................................ Yes 0.5.km Note: In accordance with the Plan of Preparations for EURO 2012, the auto road Skole-Volosianka is currently refurbished. .2.6. Map:
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3.3.
Development/interior design features (e.g., availability of adjacent buildings; special facade etc.): Hotel with spa centre. Boiler house Parking lot Maintenance facility (administration, storage areas and other support premises) Technological site Hydrotechnical facilities Facade finishing is a combination of water-resistant stucco, natural stone and face brick.
3.4.
Type and condition of utility installations (e.g., use of renewable energy sources; sewage water recycling etc.): System for utility and drinking cold and hot water supply, circulation water supply system, household, industrial sewage and storm collectors have been designed. Heating, ventilation and air conditioning systems, including emergency smoke evacuation systems, have been designed in accordance with applicable requirements.
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3.5.
Specific features: Type Electricity Q-ty Condition The following electric technical fixtures in the hotel facility have been envisioned: 1.Working electric lighting (emergency lighting from rechargeable battery, 2. Power equipment 3.Phone network, 4.Radio network, 5.TV receivers and acoustic alarm. Hook-up to the existing medium-pressure gas supply line Features As per U 131-2006/2, of 07.04.2008.
Natural gas
Medium pressure gas supply line U 33-222, of 07.04.2008: supply to modular heat generator of TM type. No gas supply to the hotel building envisaged. From artesian well (please refer to the Hydrogeological Opinion by ZAKHIDUKRGEOLOGIA, SE).
Drinking water
The source of water supply to the hotel are water-supply wells of own intake facility (please refer to the Hydrogeological Opinion by ZAKHIDUKRGEOLOGIA, SE). For sewage disposal, a separate system of household, industrial sewage disposal and storm collectors has been envisioned with sewage evacuation into designed external sewage networks
Sewage
1st phase comprises local treatment plants at Vedmezha Vezha Hotel Facility (U No.200, of 20.01.2009); 2nd phase includes local treatment plants of Biotal type.
3.6.
Please provide characteristic of the building in the event of construction/renovation commencement: Development project condition (new development; refurbishment; modernisation): The new hotel facility development project consists of a building that comprises four sections separated by vertical contraction joints. Development phase (foundation pit, erected structure (e.g., 20%), ready erected structure): Already completed: the arrangement of foundations for Blocks , , and D; also one storey of Block A and two storeys of Block D complete with brickwork. Project availability percentage-wise is around 20% overall.
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EUR 845,000
Building works continue/halted? The construction works continue but at a slow pace. Current situation with the work and labour contract: Contract with development company is effective
Note: Positive comprehensive State Expert Assessment Opinion by LvivDerzhBudExpertiza, No. 1376, of 2008. 4.2. 4.3. What permits/licenses do you still need to obtain? All permits and licenses obtained. Does/will the designated use of the land plot comply with the hotel development project implementation? Current designated use of the plot Developing and servicing hotel facility 4.4. Future designated use of the plot Developing and servicing hotel facility
What land title do you currently have (Please specify the land title you have (property right to land; long-term lease) and the type of documentary proof of that): Title Property right to land plot Estate in freehold Land plot tenancy agreement From Company co-founders 02.10.08 For 49 years Registered with the Land Administration Authority on 08.10.08 Acquired from When? Valid through Notes
Property lease agreement Other (e.g., the right to use the land of another) 4.5. In absence of the title to land plot, will it be possible to buy/acquire ownership of that land plot? The Company has the priority right to acquire the land plot.
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Registration date (for legal entity): 26 March 2007 Registration ID (USREOU): Founders (for legal entity): The excerpt from USREOU attached hereto
6. 7.
Managing bodies:
Who is the contact person for the Project (name, contact details, experience) Oleksandr Sviatoslavovych Abramovych Phone: 044-499-50-11, 050-384-44-44 Functional responsibilities within the company? Manager, co-founder
11.
What is the Ukrainian partners investment strategy within the Project? Strategy of the Ukrainian partner is, as follows: to attract investments in order to accelerate the hotel facility development and commissioning; long-term management with optional further sale of rooms and general-use areas.
12.
Are there any contractual relations related to Project implementation to date? 2. Main Development Contract. 3. Designers Development Servicing Contract 4. Development Technical Supervision Contract
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13.
Do you (or your employees/contractual partners) have previous experience of participation in similar projects? The Company co-founders have under their belts a number of development projects successfully implemented on the territory of Bulgaria (two suite-type hotel facilities at ski resorts; villas for summer vacations). The Project won a prestigious International Europe and Africa Property Awards 2009 Competition dedicated to searches of best real estate professionals worldwide.
14.
What is your experience in hotel/tourism/restaurant business? The Company co-founders have previous experience of suite-type hotel facilities operation in Bulgaria via a company of their own and tourism operators.
15.
What motivates you to implement the above hotel development project? To implement a trendy development project and to receive stable profits.
Cost certification: (table with all important cost indicators): [Table] is annexed to this Questionnaire. Calculations include the building phase and the one of further hotel facility operation within five years.
3.
Envisioned for the whole project, in general: EUR200,000 (as contributions to the Authorised Fund); Available: EUR100,000 (as a contribution to the Authorised Fund); Currently invested in the Project: EUR20,000, as of 01 February, 2011 (the Authorised Fund fully paid).
4.
Borrowed funds:
Envisioned for the whole project, in general: EUR6,415,000 Available: EUR1,800,000 (planned drawing as per investment agreements after the completion of construction) Currently invested in the Project: EUR1,670,000 (of this amount, EUR845,000 directly invested into construction and assembly works)
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5.
Financing model: What is the envisaged term of investment depreciation? The planned return on investments has been envisaged in five to six years depending on the financial model of facility operation and feasibility of subsequent sale of the premises. What current manufacturing (electricity, staffing) and operational (current repairs/major repairs) costs have been envisioned? As per indicators in the Table.
6.
What annual turnover amounts can be expected after the completion of development? What will the annual turnover be in future? As per indicators in the Table. Will there be a depreciation fund for operational expenses established or the funding will be provided from current turnover? The financing shall be provided from the annual turnover.
What funds the investor will have to invest and what rights related to such investment he/she will obtain? Additional investment of EUR2,800,000 for five years. The investor will obtain property rights on 50% unsold premises and 80%, on profits received from their further operation + 49% from profits received from overall operation of the facility. Will the investment have to be a direct one in Ukraine or executed via offshore companies? Not important
3.
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V. MARKET RESEARCH
1. GUESTS
1.1. Target structure of hotel visitors: The hotel facility is meant for renting out suites and general-purpose premises round the year (private vacations, ski resort, recreational activities, sightseeing, active leisure, mass events: business meetings, forums, trainings, various corporate events etc.). 1.2. 1.3. Average room price: At opening: EUR80 Five years after opened: EUR100 What are your hotel occupancy rate forecasts? January ................................ 100 % February ................................ 80 % March ..................................... 60 % April ........................................ 30 % May ......................................... 40 % June ........................................ 60 % July .......................................... 80 % August ..................................... 90 % September .............................. 50 % October ................................... 30 % November ............................... 30 % December ............................... 80 %
2. COMPETITIVENESS
2.1. Please provide description of three nearby hotels: There is Vezha Vedmezha Hotel Facility beside our development project. It has 25 executive and positions itself as a hotel for VIP visitors. The average daily price of room is at EUR120. Zakhar Berkut Hotel is located at the entrance to the facility territory and comprises a five-storey building built in 2005. Has 24 rooms of various categories, of them eight Standard, 12 semi deluxe, and four de luxe rooms. There are no other objects potentially competing with our hotel nearby. 2.2. Are there any other hotels developed/scheduled for development nearby? Given the individual development concept (a suite-type hotel), no similar projects will be developed in the region in the nearest future. 2.3. What marketing tools have been planned for hotel promotion purposes? Own web site .........................................................................................Yes Via tourism companies (as overnight accommodation) .....................Yes Via tourism companies (for economy-class tours) ..............................Yes Collaboration with air carriers ............................................................... No Advertising: .....................................................printed media, TV, Internet Note: the partner office in the UK guarantees wide attraction of English-speaking customers.
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2.4.
What are the strong and the weak points of this Project? The Project, while unique for the region, in the same time embodies successful experience of similar European projects.
2.5. 2.6.
Command of languages: Ukrainian, Russian Who is the current contact person for the Project? Name: Filling-out date: Oleksandr Sviatoslavovych Abramovich 15 february 2011.
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Note: Hotel complex will include suite, semi-suite, standard rooms and hostel. It is planned to design rooms and decoration in Middle age style, they will reflect the style of people inhabiting Khotyn fortress. 1.8. Approximate price (for the room for one person): from 8 to 50 uro per day, depending on the room class Note: One of complex exposition (barracks) will be used as hostel at night. All rooms will be decorated with stone, wood and forged products. The hotel can offer the following facilities: Restaurants: 3 Conference hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency exchange Note:. Turkish bath; Museum expositions (150m2): Fortresses of Ukraine- 14 (reconstructed 1:50 with descriptions); Diaram of Khotyn battle of 1621; Hall of Khotyn fortress history of Moldovian, Turkish, Polish, Russian and Kozaks periods.; Expositions will include pictures, manekens, clothes, armour, flags.. Fortress court with viewing platform 17 century-styled. Exposition of soldier barracks (Polish, Kozaks, Turkish and Russian); Museum prison; Chapel; It is plan to place sculpture composition of heroes of Khotyn fortress before the fortress (Turkish sultan, Russian marshal, Polish kings Khodkevych, Sobesky, Ukrainian Hetmans: Khmelytsky, Orlyk, Moldovian host Shtefan The Great. Two fortresses with viewing platform are 17 century-styled.
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1.9.
Restaurants: Restaurant complex: Capacity - 120 seats Banquet hall (conference hall) 120 seats Banquet hall - 16 seats Fast food cafe - 100 seats They are also 17 century-styled having expositon on the history of Hetmans Petro Sagaidachnyi and Jan Sobeskyi. Cuisine, personnel clothes are all Kozaks styled.. Products are received from the farmers, menu and prices in regards to different clients group. Pizeria - Hachapuri 60 seats Turkish style, all meals are being preprared in front of clients. Wine cellar/banquet hall 12 seats.
1.10. Conference hall: Type Total number of seats 120 Quality Price Interior Technical equipment Will be fully equipped for conducting conferences, meetings etc. 1. Conference hall
1.11. Fitness centre: Note: fitness centre will also include therapeutic exercises.
2. LOCATION
2.1 2.1. 1, Fortechna str., Khotyn, Chernivetska oblast. Ukraine Place characteristics: Park zone
Note: Land for complex neighbouring tot he territory of state museum zone Khotyn Fotress. Accoding to marketing data 380 thousand tourists visited museum Khotyn Fortress, one million tourists visited Kamjanets-Podilska Fortress 25 km from Khotyn. 2.2. Distance: City centre: ...................................................1.km Nearest airport : ..................................... 60. km Nearest railway station: ......................... 25. km Highway: ......................................................2 km 2.3. Transport connections (( types of public transport ): Bus/Trolleybus ................................................Yes Route taxi .......................................................Yest Note:. City of Khotyn is situated at the junction oft he four regions, at the crossroads of internal and international routes: Romania, Moldova, Belarus, Poland Chernivtsi Kyiv route Chernivtsi Chishinau route Dnister reservoir is one of the biggest and beautiful in Europe, it is plan to organize here new water routes and other services.
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2.4.
Map :
Building/decoration characteristics:
157
The first one where you can see the different appliances, dishes, which were made in ancient times. The second will present the ancient recipes of products that are in place to try or buy. Museum shop or restaurant. Workshops: Forge Pottery Embroideries Weaving basket weaving Woodcarving Art in these workshops can be seen as manufactured products and can immediately purchase or order. 3.4 Type and state of technical equipment: When choosing the place it was taken into accaount availability of convenient roads, gas and electricity networks, drind and waste water. 3.4. Features: To secure saving energy and environmental protection project documentation contains system of minimization of natural resourses use and all modern technologies of new technologies in the construction of clearage facilities and heating. Type Electricity Gas Drink water Waste water Amount Status Description
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4.4.
What land rights have you got in the moment? Right Land ownership Given by? Sold by the private person in 2009 When? Valid till Note Available state ownership certificate.
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12.
What is your experience in hotel/ tourist/ restaurant business? More than 9 year experience in building and operation of recreation zones and mountain-ski complex.
13.
What is your motivation for implementing this hotel project? Tourist business nowadays is one of the most perspective business branches. Mother Nature has created all conditions for developing tourism in our region: mountains, lakes. Rivers, historical sites and cultural sites and quite not poluted ecology. There is an opportunity to take an advantage of current touristic flow more that 300 thousand tourists annually. There is no analogue for this project taking into account its concept that will help attract a vast amount of tourists from different countries.
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Preparation of documents:.............................................................................- 290 000 EUR - putting into operation - complex launch - advertising (during constructing) - staff training - staff uniform Total project costs: ........................................................................................- 11 880 000 EUR. Note 3. Subject to change due to change of dollar and market prices. Equity: Foreseen for project in general:..............................5 950 000.EUR Available .....................................................................5 950 000 EUR Already invested in the project ...............................1 020 000.EUR 4. 5. Loan: Finance model: PLANNED INCOME: 1. Accommodation (hotel, hostel)80 persons. 15 EUR 250 days = ..................................................300 000. EUR 2. Meals (fast food ) - 400000 p. 3 EUR = ............................................ 1 200 000 EUR 3. Meals (restraurants, pizzeria) - 180 persons./day 15 EUR 300 days = .............................................. 810 000 EUR 4. Hot bath - 100 persons 150 days 1,5 EUR = ......................................... 22500 EUR 5. Sauna - 4 persons. 11 EUR 200 days = ...................................................8800 EUR 6. Services (billiards, shops, photo salon etc) - 30000 persons. 1,5 EUR. = ...................................................................450 000 EUR 7. Historical exposition 500000 persons. 3 EUR = .................................. 1500 000 EUR 8. Host court 300000 persons. 2,5 EUR = ................................................750 000 EUR 9. Toilets: - 300000 persons. 1hryvnia = ...........................(300 000hrvn) 28 000 EUR Gross income : ................................................................................................... - 5 070 000 EUR Expenses: ........................................................................................................... - 2 015 000 EUR Profit: .................................................................................................................. - 3 055 000 EUR EXPECTED FINANCIAL FLOWS: 1 year - construction ................................................................................................................0 2 year construction, operations ........................................................................................0% 3 year - operation .............................................................................................................. - 80% 4 year ......................................................................................of planned profitability Note Provided planned profitability: Total income for 3 year operation .............................................................. ~ 11 660 000 EUR Total profit .........................................................................................................- 7025 000 EUR 100% 5 year- ................................................................................................................................ 120% Foreseen for project in general ........................... 11 900 000EUR
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PROJECT PAYBACK - 4 YEARS. Profitablity can increase and payback period will reduce provided good advertising and good control and organization of work. Total profit for 3 years ........................................................................... - 7 025 thousand EUR Market price of completed business .............................................................- 19 million EUR
V. MARKET ANALYSIS
1. GUESTS
1.1. Target client group: Tourist coming for 2-4 hours (about 350000 persons visited Khotyn fortress in 2007) Tourists coming for 3-7 day tours. Locals (week-end tours, holiday tours) Hotel and restaurant services to travellers (1-2 days) Schools of the region 1.2. Average room price for one person: After opening ......................... 16 EUR In five years after opening ..........EUR 1.3. What occupancy do you predict? January ...............................30 % February ..............................30 % March ..................................30 % April .....................................60 % May ................................... 100 % June .................................. 100 % July ........................................... 60 % August...................................... 60 % September............................... 70 % October .................................... 70 % November ................................ 30 % December ................................ 30 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: The nearest hotel cannot compete because of their capacity is 3-8 rooms and low level of service. Are there some other hotels being built near? 2.3 What marketing steps are planned for hotel popularization? Own website .....................................................................Yes Cooperation with tourist companies (nights stay) .........Yes Advertising ..................................... newspapers, tv, internet Commentary: minimal risks (tourist flow of more that 350 thousand persons per year and is increasing), no competitiveness
It is plan to increase tourist flow by means of services, advertising and well-khnown tourist routes. reduce of building costs (company has workshops for producing building material and design organization of business sphere, providing with other services. investment in liquid main funds big amount of services provided in one complex attracting tourists from nearest recreation zones etc. 200 jobs will be created that will affect positively social state of region.. 2.3. What are the weak and the strong points of the project? Advantages: unique, no analogue; close to state museum zone Khotyn Fortress; big amount of services provided in one place; no analogue to the size of land territory; no one in the near to compete Risks: Un-timely financing will lead to freezing of funds for construction Unstable political and economical situation in Ukraine. All other risks were carefully considered and recognized as not affecting profitability. 2.4. 2.5. Contact person:Vakoula Vitaly mob: (050) 519 46 71. Who filled in the form? Name: Date: Languages: Name: Date : Languages: Vakoula Vitaly, Fortress of Hetmans Ltd., Director 02.02.11 Ukrainian, Russian Halan Valeriy, Fortress of Hetmans Ltd , co-owner 02.02.11 Ukrainian, Russian, Czech.
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2.6.
Other: Already carried out works: Prepared documentation; Purchase of 1 hector land territory; All project documentation; External and internal Design Historical exposition approved; Territory prepared; Communications; Trachea ready 80 60 2; Purchase of building material (20%); All historical items are being produced in the workshops; Presentation of the project; Launch of website Monitoring of similar tourist objects, cooperation with Ukrainian and European experts. Annex business plan of Fortress of Hetmans Ltd.
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Note: a room with two separated beds and the one with one double bed for two persons, extra bed also available 1.7 1.7. Approximate price (room price for one person): The hotel can offer the following facilities: Restaurants: 3 Conference-hall Sauna Business centre Parking 1.8. Restaurants: Type 1.lobby bar 2.main restaurant 3.Beer pub 1.9. Conference-hall: Type Total number of seats 100 Quality Price Interior Technical equipment Equipment for making presentations, wireless internet, 1. Conference-hall High quality lighting, 20 EUR/ minimalism ventilation and hour conditioning sound system Total number of seats 30 100 60 Cuisine minimalism National, European Beer menu, starters minimalism National theme, European Used for breakfasts Price Interior Other Double/Twin 40 EUR Note: extra bed is paid extra.
1.12. Place characteristics: Centre of old city Notes: centre of National historic-architecture zone Podilski Tovtry
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City centre: ...................................................2 m The nearest airport: .............. 85 m (Chernivtsi) The nearest railway station: ....................... 4 m Highway: ........................................................ 3 m
1.14. Transport connections (types of public transport): Route taxi ..........................................................Yes Note: taxi (for instance to railway station -2 EUR) 1.15. Map:
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Note: Permit for preparatory works on reconstruction the lost historic building. What permits/licenses would you need to get? Present land purpose Commercial not housing funds 3.2. Right Land leasing Other: tender 3.3. Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? It is impossible to purchase land as it belongs to National historic-architecture reservation. Is the land purpose line/will be in line with project implementation of hotel construction? Future land purpose Commercial not housing funds Given by and when? Valid till Note
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11.
What is your experience in hotel/ tourist/ restaurant business? 8 years. Last 3 years we have our own project Amadeus club. Architecture&design - consulting operator of hotel and restaurant business. A member of Ukrainian tourist association since2001. What is your motivation for implementing this hotel project? Economics
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V. MARKET ANALYSIS
1. COMPETITIVENESS
1.1. 1.2. Please describe three nearest hotels: Club ****; Kleopatra ****; Hetman; Taras Bulba. What marketing steps are planned for hotel popularization? Own website .................................................................................... Yes Cooperation with tourist companies (nights stay) ........................ Yes Cooperation with tourist companies (budget trips) ...................... Yes Cooperation with air-craft companies ........................................... Yes Advertising .................................................... newspapers, tv, internet 1.3. 1.4. Contact person: Borusevich Olga ph. +380 67 401 36 65, e-mail:olgaborus@yandex.ru Who filled in the form? Name: Borusevich Olga Date: 31.01.2011 Who is the current contact person for the project? Name: Lastovetskyi Andriy Date: 31.01.2011 Languages: English, German
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Term of project implementation (please give the predicted dates of start of construction and opening):
Approximate price (for the room for one person): 150 euro The hotel can offer the following facilities: Restaurants: 3 Conference hall 3 Swimming pool 2 Fitness centre Sauna Medical care Business centre Parking Currency exchange
1.9.
Conference hall: Type Total number of seats 20-600 Quality Price Interior Technical equipment all
2. LOCATION
10 minutes from the center of Odessa, 50 m from sea Address 1 Arkadia Odessa Ukraine 2.1. 2.2. Place characteristics: Beach Distance: City centre: 10 min Nearest airport : 30 min Nearest railway station: 10 min Highway: 25 min
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What is the investment strategy of Ukrainian partner? Investment for constructing and operating Are there currently any contractual relationships on the project? No
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Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? 6 years of operating of the hotel What is your motivation for implementing this hotel project? Profit
V. MARKET ANALYSIS
1. GUESTS
1.1. Average room price for one person: After opening: In five years after opening: 1.2. What occupancy do you predict? 150 EUR 200-250 EUR 60% in a year
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: small hotels for 20-40 rooms? No hotels with its own beach What marketing steps are planned for hotel popularization? Own website .......................................... www.arkadia-project.com.ua Cooperation with tourist companies (nights stay) .........................Yes Cooperation with tourist companies (budget trips) .......................Yes Cooperation with air-craft companies ............................................Yes 2.3. What are the weak and the strong points of the project? There are no weak points. The strong point is its location and situation with the hotels in Odessa 2.4. 2.5. Contact person: Buhmarin Ilya Who filled in the form? Buhmarin Ilya Languages: Name: Date : Languages: Russian English Ilya Buhmarin 02.24.2011 Russian, English Who is the current contact person for the project?
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Purpose of project Main tasks to be accomplished during project implementation Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.)
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Total investment, (thousand dollars USA), including: Own funds, the need for additional financing Method (form) of investment: Offer to investor
Equity 850 thousand dollars USA, the need for loan of 300 plus 500 thousand dollars USA Credit or shareholding 1. To provide with finance and logistical support. 2. To complete the object and fulfill contract obligations. 1. Tourist accommodation 2. Possibility to sell premises for commercial use on the the 2,02 acre territory. Various agreements are possible. According to agreements. 10 -100% 10 - 90% Various agreements are possible 5 -20
Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved) Term Interest rate expected schedule of selected tranches of credit line repayment schedule ensuring Payback period of project in years
10-20 years 5-7% 100 thousand dollars USA each quarter of the year. After three year period Mortgage of already built premises It depends on the income: 1. from accommodation 10 years 2. about 5 years in case of premises sale. 2 274328.08 hrvn 3,05 18,5
Net present value, NPV Profit index, PI Internal rate of return, IRR, %
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Director Zajizhaj Pavlo +380573152018 Director Zajizhaj Pavlo +380573152018 Physical culture and sports 202,6 30 103,9 Construction of 4* hotel Temp for 90 rooms 16, Batumska str, Kharkiv 61070 Expansion of ski-base infrastructure
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Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula) Internal rate of return, IRR, %
15 000,00 116,9 14 883,1 Credit Investor invests into the project, mutual maintenance and operation of the project. Hotel facilities Depends on the amount of investment Mixed variant is possible. 6
10 years. 15% Deferred payment 6 month with equal parts Starting from the 3rd year of operation Real estate 6 5 250 000 1.7 70 33,56
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Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.) Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years
Insufficient financing is the main problem at the moment. The object is practically in perfection stage.
7-10 years 8% in hryvnia No more than 0,1 % 0,00 hryvnia. 6 months credit vacations, after that monthly. 2011. (from February) Last credit year Unfinished construction 7-10 years
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Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: - credit - concessions - leasing - rent - other (please specify)
180
Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Internal rate of return, IRR, %
2011 11115 2012 2013 2014 2015 28815 27829 25406 21073 2016 14147 2017 4098
5 -10
2011 2012 141400 11900 2011 2012 3000 2013 9000 2014 2015 17500 23400 2016 45200 2017 49200
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Physical person entrepreneur Makejev I.O. 0676200055 Physical person entrepreneur Makejev I.O. 0676200055
Hotel services, restaurant activity The second phase construction of Grand-Hotel hotel complex 6, Korolenka str., Mariupol, 87505 The second phase construction of Grand-Hotel hotel complex 2500 1000 1250 credit 5 years 7-10 % 0,5-1 % monthly
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February 2011.- 3 million hrvn., April-May 2011. 2 million hrvn., June July 2011. 5 million hrvn. First year repayment of credit interests, from 2nd year repayment of the credit interests and credit itself. The first phase construction of Grand-Hotel hotel complex Six years
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List of expected results Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing
184
Method (form) of investment: - credit - concessions - leasing - rent - other (please specify) Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula)
Investor should attract finance Hotel services and other activities. Will be negotiated. All variants will be considered, including sale of the object.
All variants will be considered. All variants will be considered. Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ 6 8 years 2 412 thousand 1,1 26,17 % (income without taxes) Funds profitability 37,85% (net profit/ Investment profitability 34,04% (net profit /investment) 17,6
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5-B, Aviatora Antonova str., Kyiv, 03186 044-351-12-29 / 351-12-33 sergestaro@gmail.com Private enterprise
Director Starodubtsev Sergiy 044-351-12-29 Director Starodubtsev Sergiy 044-351-12-29 Rent of non-residential buildings 2 500,0 8 64,0 A four star hotel complex 34, Kostyantynivska str, Kyiv. Putting into operation
Credit of 4 052,0 dollars USA To secure financing Putting hotel into operation According to agreement
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Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula) Internal rate of return, IRR, %
According to agreement
Will be determined in case of getting investment 5 238,0 Will be determined in case of getting investment Will be determined in case of getting investment Will be determined in case of getting investment
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Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Offer to investor
81000 8000 73000 credit A private investor should secure timely financing according to agreement and the project owners in their turn will provide management of the project, its successful implementation. Hotel services; SPA complex in the hotel, conference facilities. In direct proportion to the part of each of the parties. 30-100%
Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line
5-10 years
- repayment schedule
10 year 8% annually 0,1% absent During 10 years annuities Q1 2011 10,950 Mln. USD Q2 2011 18,250 Mln. USD Q3 2011 18,250 Mln. USD Q4 2011 18,250 Mln. USD Q1 2012 7,300 Mln. USD Total:73 Mln. USD From 2013 to 2023monthly annuities at the amount of 885691 USD (includes credit body and % __). Total repayment will be 106282972 USD, 73000000 USD credit body, 33282972 USD interests. Land territories of _._._____ LLC of total 4,279 acre square, also unfinished building. 7,5 years.
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President of EnergoResurs-Invest Corporation Ivan O. Nironovych 032-225-54-37, 260-12-97 Corp. President Ivan O. Nironovych (032) 260-12-97 Preinsulated pipes and heat piping network components; modular waste treatment facilities; industrial development; assembly and installation 12.6 450 25,000 The project envisions the development of the 5-star Absolute Hotel facility in the town of Morshyn Morshyn, Lviv Oblast Development Commissioning of the 5-star Absolute Hotel facility Design specifications and estimates developed
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Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate) Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
Investor finances development project implementation; The Company undertakes for the building and the commissioning of the five-star Absolut Hotel Tourism 50% / 50% - 50% share in sales volume - 50% share in earned profits
10 years
7 years 10% On a monthly bases With a grace period Deferred equal payments Development project Five years
20%
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Ownership form: Legal status: Government property share (in %) Company manager:
Principal product of the Company: Authorised fund of the Company, in USD thousand: Number of employees: Corporate primary production turnover, in USD thousand Project description: Investment object location: Project objective: Key tasks to be resolved throughout Project implementation: List of expected results: Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.) Total investment (USD thousand), incl.: Equity capital (USD thousand): Need for additional financing (USD thousand): Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate)
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Design specifications and estimates ready
192
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate) Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in % 7 Sales of hotel accommodation and related services
7 years 11% (in USD) N/a N/a In two years as of the commencement financing date On a quarterly basis in proportions of 25-30% of the loan amount In proportions starting from year three as of the commencement financing date Mortgage 5
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Ownership form: Legal status: Government property share (in %) Company manager:
Principal product of the Company: Authorised fund of the Company, in USD thousand: Number of employees: Corporate primary production turnover, in USD thousand Project description: Investment object location: Project objective: Key tasks to be resolved throughout Project implementation: List of expected results: Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.) Total investment (USD thousand), incl.: Equity capital (USD thousand): Need for additional financing (USD thousand): Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate)
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Ready for interior facing works
194
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
7 years 11% (in USD) N/a N/a In two years as of the commencement financing date On a quarterly basis in proportions of 25-30% of the loan amount In proportions starting from year three as of the commencement financing date Mortgage 5
195
Ownership form: Legal status: Government property share (in %) Company manager:
Principal product of the Company: Authorised fund of the Company, in USD thousand: Number of employees: Corporate primary production turnover, in USD thousand Project description: Investment object location: Project objective: Key tasks to be resolved throughout Project implementation: List of expected results: Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.) Total investment (USD thousand), incl.: Equity capital (USD thousand): Need for additional financing (USD thousand): Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate)
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Ready for interior facing works
196
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in % 7 Sales of hotel accommodation and related services
7 years 11% (in USD) N/a N/a In two years as of the commencement financing date On a quarterly basis in proportions of 25-30% of the loan amount In proportions starting from year three as of the commencement financing date Mortgage 5
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Ivan Yu. Lun, Advisor to Lviv Mayor on municipal hotel infrastructure issues Phone.: +380 50 337 5010 Serghiy I. Kiral, Manager of Foreign-economic Relations and Investments Department, Phone: 38 (032) 254 60 06, Mob.: (050) 313 02 21 Delivery of hotel services As per the laws in force 100
Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.)
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Total investment (USD thousand), incl.: - equity capital/budget appropriations; - need for additional financing Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate) Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
UAH7,698,680
Establishment of a joint venture; share capital payment Hotel operation To be determined during negotiations To be determined during negotiations
10
10 15 % 1% N/a 9 years On a quarterly basis Within ten years The developed project Five years 0 (on five-year basis) ROE on a nine-year basis at 19.01% calculated as per the following formula (EBIT/authorised fund) -
199