financial model hotel
DESCRIPTION
Financial Model for an hotel in NigeriaTRANSCRIPT
N 5,250,000,000 TERM LOAN
For
THE FINANCE
OF 5 STAR HOTEL IN ABUJA
FINANCIAL MODEL Jul-10
HUDSON CONSULTING GROUP
04/17/2023 2 document.xlsx
PROJECT INFORMATION:
Company Westin Nova
Sponsor: Treadstone Mall
1 TOTAL PROJECT COSTItems Percentage N
LAND 600,000,000
SUBSTRUTURE 300,000,000
FRAMES 300,000,000
UPPER FLOORS 300,000,000
Suspended ribbed slab
STAIRCASES 50,000,000
Staircases, Balustrading
WALLS 100,000,000
Reinforced Concrete Walls, Blockwall, Curtain Walling,
ROOF CONSTRCUTION & ROOF COVERING 60,000,000
Concrete roof slab, concrete fascia, longspan aluminium covering
ELECTRICAL INSTALLATIONS 810,000,000
MECHANICAL INSTALLATIONS 740,000,000
WINDOWS AND DOORS 250,000,000
Flush doors, Aluminium doors, Aluminium Windows, Sundries
FLOOR, WALL & CEILING FINISHINGS 570,000,000
Return to content table
Concrete Retaining Foundation, Walls & Pilling, Ground Beams, Ground Slap, Subsoil Investigation etc
Building frame, colums, beams, floor slaps, staircases, concrete vehicle ramps,lift shaft etc
Electrical equipment & installations, luminaries & light fittings, telephone, telex, TV, PABX, CCTV etc
Plumbing installations, Lift Installation, Air-conditioning, Fire Fighting Installation
04/17/2023 3 document.xlsx
EQUIPMENT, FITTINGS & FURNITURE 370,000,000
PAINTING & DECORATING 270,000,000
EXTERNAL WORKS 80,000,000
TOWN PLANNING APPROVAL/DOCUMENTATION COST 800,000,000
PROFESSIONAL FEES 800,000,000
CONTIGENCIES - PRICING AND DESIGN RISKS (10%) 10% 500,000,000
Financing Fees 600,000,000
Other Professional Fees 0
ESTIMATED CONSTRUCTION AND DEVELOPMENT COST 7,500,000,000 7,200,000,000
2 FUNDING STRUCTURE% of capital
Equity contribution 30% 2,250,000,000
Debt finance (Project finance) 70% 5,250,000,000
Total 100% 7,500,000,000
FINANCING TERMS Naira
Debt Amount 5,250,000,000
Smooth Rendering, Vitrified Floor Tiles, Wall Tiles, Suspended Ceiling, Granolithic Floor
Bedrooms Furniture, Kitchen Fittings, Kitchen Equipment, Bar Reception, Restaurant
Concrete paving & kerbs, landscaping, borehole, water & sewage treatment plants, water & fuel storage tanks etc
Project Management, architectural, structural, mechanical & electrical and quantity surveying
04/17/2023 4 document.xlsx
Equity Contribution 2,250,000,000
All-in Interest Rate 10%
Tenor (years) 10 years
Moratorium (on principal and interest capitalised for the period) 2 years
3 GENERAL ASSUMPTIONS
Base Exchange rate (=N=/$) 160
Tax rate 32%
Days in the year 365
Months in a year 12
Hours in days 24
Fund Raising Cost 7%
Building Depreciation rate 2%
Furniture, fittings and Equipment depreciation rate 20% Office rent per sqm
Occunpancy Rate for Hotels 65% 50,000
Occunpancy Rate for Offices 80%
Usable rate for car parks 90%
Percentage of Operation Cost to Revenue 28%
Escalation rate for revenues and expenses 10%
Dividend Policy 0
ACTIVITY AREA Number Price per day per unit
0 0
Deluxe Rooms 100 70,400
Deluxe Suites 23 250,000
Presidential Suite 2 450,000
0 0
15.0%
Food, Beverages and Drinks as percentage of other revenues 25%
Other Operated Departments as percentage of revenue
04/17/2023 5 document.xlsx
300,000,000
67,500,000
04/17/2023 6 document.xlsx
6000 300,000,000
Construction 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
INFLOWS =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
Equity 2,250,000,000 - 67,500,000 - - - - - - - - - - Long Term Debt 5,250,000,000 - - - - - - - - - - - -
Revenue from Operations - 3,972,984,120 4,370,282,532 4,807,310,785 ### ### ### ### ### ### ### ### 11,335,387,366
TOTAL INFLOWS 7,500,000,000 3,972,984,120 4,437,782,532 4,807,310,785 ### ### ### ### ### ### ### ### ###
OUTFLOWS
Capex 7,500,000,000 - - - - - 407,000,000 - - - - 407,000,000 -
Direct Cost 1,112,435,554 1,242,579,109 1,346,047,020 ### ### ### ### ### ### ### 2,885,371,329 3,173,908,462
Indirect Cost (Operating Expenses) 749,183,448 822,399,217 998,683,544 ### ### ### ### ### ### ### 2,273,136,989 2,500,450,688
Debt Repayment - 1,177,787,606 1,177,787,606 1,177,787,606 ### ### ### ### ### - - - - TOTAL OUTFLOW 7,500,000,000 3,039,406,608 3,242,765,932 3,522,518,170 ### ### ### ### ### ### ### ### ###
Net Cashflow - 933,577,512 1,195,016,600 1,284,792,615 ### ### ### ### ### ### ### ### 5,661,028,215
Cumulative Net Cashflow - 933,577,512 2,128,594,112 3,413,386,727 ### ### ### ### ### ### ### ### ###
Debt Service Coverage Ratio - 2.43 2.71 2.94 3.23 3.56 3.57 4.30 4.73 - - - -
GEARED VALUATION Year 0 1 2 3 4 5 6 7 8 9 10 11 12
FCF (7,500,000,000) 2,111,365,118 2,372,804,206 2,462,580,222 2,689,032,542 2,905,002,586 2,788,502,845 3,515,053,129 3,866,558,442 4,253,214,287 4,678,535,715 4,739,389,287 5,661,028,215
Cumulative Net Cash Flow (5,388,634,882) (3,015,830,676) (553,250,454) 2,135,782,088 5,040,784,674 7,829,287,519 11,344,340,649 15,210,899,091 19,464,113,377 24,142,649,093 28,882,038,379 34,543,066,595
GEARED VALUATION
First Year Cashflow Positive 4
Payback Period 3.21 years
NPV 26.78 Billion
IRR 37%
UNGEARED VALUATION Year 0 1 2 3 4 5 6 7 8 9 10 11 12
FCFE (2,250,000,000) 933,577,512 1,195,016,600 1,284,792,615 1,511,244,936 1,727,214,980 1,610,715,239 2,337,265,523 2,688,770,836 4,253,214,287 4,678,535,715 4,739,389,287 5,661,028,215
Cumulative Net Cash Flow (1,316,422,488) (121,405,888) 1,163,386,727 2,674,631,663 4,401,846,643 6,012,561,881 8,349,827,404 11,038,598,240 15,291,812,527 19,970,348,242 24,709,737,528 30,370,765,744
UNGEARED VALUATION
First Year Cashflow Positive 3
Payback Period 2.09 years
NPV 37.71 Billion
IRR 59%
WACC calculations:
Risk Free Rate (Avg rate on 20 Year FGN & US 10.00%
Assumed beta 1.20
Equity Risk Premium 6.00%
Cost Of Equity 17.20%
After Tax Debt cost 6.66%
Ratio of equity 30%
Ratio of debt 70%
WACC 9.82%
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30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707 20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370 39,132,831,507 43,046,114,658
### ### ### ### ### ### ### ### ### ### ### ### ### ###
- - - 407,000,000 - - - - 407,000,000 - - - - -
3,491,299,309 3,840,429,240 4,224,472,164 4,646,919,380 5,111,611,318 5,622,772,450 6,185,049,695 6,803,554,664 7,483,910,130 8,232,301,144 9,055,531,258 9,961,084,384 10,957,192,822 12,052,912,104
2,750,495,757 3,025,545,333 3,328,099,866 3,660,909,852 4,027,000,838 4,107,540,854 4,189,691,672 4,273,485,505 4,358,955,215 4,446,134,319 4,535,057,006 4,625,758,146 4,718,273,309 4,812,638,775
- - - - - - - - - - - - - - ### ### ### ### ### ### ### ### ### ### ### ### ### ###
6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ###
- - - - - - - - - - - - - -
13 14 15 16 17 18 19 20 21 22 23 24 25 26
6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841 23,457,365,376 26,180,563,779
40,770,197,632 47,620,041,772 55,154,870,327 63,036,181,737 72,153,324,288 82,504,341,161 94,219,062,990 107,440,432,336 121,918,817,456 138,641,457,506 157,392,052,306 178,380,511,147 201,837,876,523 228,018,440,302
13 14 15 16 17 18 19 20 21 22 23 24 25 26
6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551 10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841 23,457,365,376 26,180,563,779
36,597,896,781 43,447,740,921 50,982,569,476 58,863,880,886 67,981,023,437 78,332,040,310 90,046,762,139 103,268,131,485 117,746,516,605 134,469,156,655 153,219,751,455 174,208,210,296 197,665,575,672 223,846,139,451
Projected Revenue 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
REVENUE =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
Revenue 3,972,984,120 ### ### ### ### ### ### ### ### ### ###
Rental Income 3,972,984,120 ### ### ### ### ### ### ### ### ### ###
EXPENSES
TOTAL OPEX 1,861,619,002 ### ### ### ### ### ### ### ### ### 5,158,508,319
Depreciation 216,600,000 216,600,000 216,600,000 216,600,000 216,600,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000
TOTAL OPERATING EXPENSES 2,078,219,002 ### ### ### ### ### ### ### ### ### ###
EARNINGS BEFORE INTEREST AND TAX 1,894,765,118 ### ### ### ### ### ### ### ### ### ###
Interest Expense 620,283,258 565,647,832 505,658,134 439,789,446 367,465,626 288,054,072 200,860,185 105,121,298 0 0 0
PROFIT BEFORE TAX 1,274,481,860 1,590,556,374 1,740,322,088 2,032,643,097 2,320,936,960 2,683,448,773 3,090,192,944 3,537,437,144 4,029,214,287 4,454,535,715 4,922,389,287
Provision for Tax 407,834,195 508,978,040 556,903,068 650,445,791 742,699,827 858,703,607 988,861,742 ### ### ### 1,575,164,572
PROFIT AFTER TAX 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715
Distributed As Follows
Dividend - - - - - - - - - - -
Retained Earnings 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715
Return On Investment(%) 11.56% 14.42% 15.78% 18.43% 21.04% 24.33% 28.02% 32.07% 36.53% 40.39% 44.63%
48%22%
Projected Balance Sheet 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
Net Book Value Of Assets 7,283,400,000 7,066,800,000 6,850,200,000 6,633,600,000 6,417,000,000 6,600,000,000 6,376,000,000 6,152,000,000 5,928,000,000 5,704,000,000 5,887,000,000 Cash and Marketable Securities 933,577,512 2,128,594,112 3,413,386,727 4,924,631,663 6,651,846,643 8,262,561,881 10,599,827,404 13,288,598,240 17,541,812,527 22,220,348,242 26,959,737,528
Total Assets 8,216,977,512 9,195,394,112 ### ### ### ### ### ### ### ### ###
Deffered tax Liabilities 407,834,195 916,812,235 1,473,715,303 2,124,161,094 2,866,860,921 3,725,564,529 4,714,426,271 5,846,406,157 7,135,754,729 8,561,206,157 10,136,370,729
Short Term Debt 0 0 0 0 0 0 0 0 0 0 0
Long-Term Debt 5,771,916,652 5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308 0 0 0 0
Total Liabilities 6,179,750,847 6,076,589,112 5,961,362,708 5,873,810,338 5,806,188,185 5,775,158,258 5,787,092,579 5,846,406,157 7,135,754,729 8,561,206,157 ###
Net Total Assets 2,037,226,665 3,118,804,999 4,302,224,019 5,684,421,325 7,262,658,458 9,087,403,623 ### ### ### ### ###
Financed By Share Capital 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 Share Premium 0 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 Cummulative Retained Earnings (212,773,335) 868,804,999 2,052,224,019 3,434,421,325 5,012,658,458 6,837,403,623 8,938,734,825 11,344,192,083 14,084,057,798 17,113,142,084 20,460,366,799
Total Shareholders' Equity 2,037,226,665 3,186,304,999 4,369,724,019 5,751,921,325 7,330,158,458 9,154,903,623 ### ### ### ### ###
Pat growth Rate 0% 25% 9% 17% 14% 16% 15% 14% 14% 11% 11%
Difference - (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000)
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30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
5,674,359,151 6,241,795,066 6,865,974,572 7,552,572,029 8,307,829,232 9,138,612,156 9,730,313,304 ### ### ### ### ### ### ### ###
224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5,437,028,215 6,003,131,037 6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 ### ### ### ### ### ### ### ### ###
1,739,849,029 1,921,001,932 2,120,270,125 2,339,465,137 2,580,579,651 2,845,805,616 3,240,645,399 3,677,030,985 4,159,158,191 4,691,643,239 5,279,564,816 5,928,510,336 6,644,626,829 7,434,676,920 8,306,100,409
3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 ### ### ### ### ###
- - - - - - - - - - - - - - -
3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 ### ### ### ### ###
49.30% 54.43% 60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84% 132.93% 149.59% 167.97% 188.26% 210.65% 235.34%
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
5,663,000,000 5,439,000,000 5,215,000,000 4,991,000,000 5,174,000,000 4,950,000,000 4,726,000,000 4,502,000,000 4,278,000,000 4,461,000,000 4,237,000,000 4,013,000,000 3,789,000,000 3,565,000,000 3,422,400,000 32,620,765,744 38,847,896,781 45,697,740,921 53,232,569,476 61,113,880,886 70,231,023,437 80,582,040,310 92,296,762,139 ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
11,876,219,758 13,797,221,690 15,917,491,815 18,256,956,952 20,837,536,604 23,683,342,220 26,923,987,619 30,601,018,605 34,760,176,795 39,451,820,034 44,731,384,850 50,659,895,186 57,304,522,015 64,739,198,935 73,045,299,344
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
### ### ### ### ### ### ### ### ### ### ### ### ### ### 73,045,299,344
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000
24,157,545,986 28,239,675,091 32,745,249,106 37,716,612,524 43,200,344,282 49,247,681,217 56,134,052,691 63,947,743,535 72,785,954,690 82,755,696,571 93,974,771,805 ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
10% 10% 10% 10% 10% 10% 14% 13% 13% 13% 13% 12% 12% 12%
(67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) 13,900,000
30-December 30-December 30-December 30-December 30-December
FINANCIAL SUMMARY Y1 Y2 Y3 Y4 Y5
N N N N N
Revenue 3,972,984,120 ### 4,807,310,785 ### ###
Total Operating Expenses 2,078,219,002 ### 2,561,330,564 ### ###
1,894,765,118 ### 2,245,980,222 ### ###
Net Profit/(Loss) 866,647,665 ### 1,183,419,020 ### ###
Cumulative Net Cashflow 933,577,512 ### 3,413,386,727 ### ###
Return On Invested Capital 11.56% 14.42% 15.78% 18.43% 21.04%
GEARED VALUATION UNGEARED VALUATION
Payback Period 2.09 years Payback Period 3.21 years
NPV 37.71 Billion NPV 26.78 Billion
IRR 59% IRR 59%
Return on Equity 39% 48% 53% 61% 70%
Residual Valuation (Dollars) ###
Return to content table
Earnings Before Interest & Tax
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
RevenueNet Profit/(Loss)Cumulative Net Cashflow
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
RevenueNet Profit/(Loss)Cumulative Net Cashflow
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13
N N N N N N N N
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###
24.33% 28.02% 32.07% 36.53% 40.39% 44.63% 49.30% 54.43%
81% 93% 107% 122% 135% 149% 164% 181%
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
RevenueNet Profit/(Loss)Cumulative Net Cashflow
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
RevenueNet Profit/(Loss)Cumulative Net Cashflow
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Y14 Y15 Y16 Y17 Y18 Y19 Y20
N N N N N N N
### ### ### ### ### ### ###
### ### ### ### ### ### ###
### ### ### ### ### ### ###
### ### ### ### ### ### 8,838,211,155
### ### ### ### ### ### ###
60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84%
200% 221% 244% 269% 306% 347% 393%
30-December 30-December 30-December 30-December 30-December 30-December
Y21 Y22 Y23 Y24 Y25 Y26
N N N N N N
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132.93% 149.59% 167.97% 188.26% 210.65% 235.34%
443% 499% 560% 628% 702% 784%
Initial Loan
Initial Loan Amount (NGN) 5,250,000,000 Amortised InterestLoan Amount (NGN) 6,329,421,000 Interest Rate (%) 10%Loan Life (Years) 10Repayment Period (Years) 8Moratorium (Years) 2
Annual Repayment (NGN) 1,177,787,606
Year 1 Year 2 Opening balance 5,250,000,000 6,329,421,000 5,771,916,652Interest (to P&L) 1,079,421,000 620,283,258 565,647,832Principal Repayment 557,504,348 612,139,774Annual Repayment 1,177,787,606 1,177,787,606Closing Debt (to BS) 6,329,421,000 5,771,916,652 5,159,776,877
Year Year-Start AnnualBalance Payment
1 6,329,421,000 1,177,787,6062 5,771,916,652 1,177,787,6063 5,159,776,877 1,177,787,6064 4,487,647,405 1,177,787,606
2,832,589,388 5 3,749,649,244 1,177,787,6066 2,939,327,264 1,177,787,6067 2,049,593,729 1,177,787,6068 1,072,666,308 1,177,787,6069
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Construction Period
151617181920
Year 3 Year 4 Year 5 Year 6 Year 7 5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729
505,658,134 439,789,446 367,465,626 288,054,072 200,860,185672,129,472 737,998,161 810,321,980 889,733,535 976,927,421
1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,6064,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308
Interest Principal Year-endComponent Repaid Balance620,283,258 557,504,348 5,771,916,652565,647,832 612,139,774 5,159,776,877505,658,134 672,129,472 4,487,647,405439,789,446 737,998,161 3,749,649,244367,465,626 810,321,980 2,939,327,264288,054,072 889,733,535 2,049,593,729200,860,185 976,927,421 1,072,666,308105,121,298 1,072,666,308 0
Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 1,072,666,308
105,121,2981,072,666,3081,177,787,606
Year 16 Year 17 Year 18 Year 19 Year 20
HOTEL FEASIBILITYAnalysis of Operating Expenditure
Power Year 1 Year 2 Year 3 Year 4 Year 5 Generating Capacity 500KVA 500KVA 500KVA 500KVA 500KVA No of Locations 2 2 2 2 2 Standard Fuel Consumption lt/hr 15.0 15.0 15.0 15.0 15.0Hours in Use 15 15 15 15 15 Fuel Cost 165 182 200 220 242 Days 365 365 365 365 365
Diesel Cost 27,101,250 29,811,375 32,792,513 36,071,764 39,678,940
Total Diesel Cost 27,101,250 29,811,375 32,792,513 36,071,764 39,678,940
Generator Maintenance and Service Year 1 Year 2 Year 3 Year 4 Year 5
Cost per Service 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 Months 6 6 6 6 6 Annual Service 6,000,000 6,600,000 7,260,000 7,986,000 8,784,600 Annual Maintenance 150,000 165,000 181,500 199,650 219,615 No of generator 2 2 2 2 2
12,300,000 13,530,000 14,883,000 16,371,300 18,008,430
Power Sub-Total 39,401,250 43,341,375 47,675,513 52,443,064 57,687,370
Telephone Bills Year 1 Year 2 Year 3 Year 4 Year 5 No of Phones 8 8 8 8 8 Bill /month/phone 200,000 240,000 288,000 345,600 414,720
Annual Bill 19,200,000 23,040,000 27,648,000 33,177,600 39,813,120
Year 1 Year 2 Year 3 Year 4 Year 5
Other Operating expensesPHCN Bill 10,000,000 12,000,000 14,400,000 17,280,000 20,736,000 General maintenance 30,000,000 36,000,000 43,200,000 51,840,000 62,208,000 Recruitment Expenses 30,000,000 Internet & Web support 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Marketing Expenses 150,000,000 180,000,000 216,000,000 259,200,000 311,040,000 Media & Advertising (Launching Inclusive) 29,787,643 14,626,277 13,516,285 13,225,910 13,559,841 Travelling Expenses (Transport) 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Travelling Expenses (Accormodation) 10,000,000 11,000,000 12,100,000 13,310,000 14,641,000 Stationery and Consumables 12,000,000 13,200,000 14,520,000 15,972,000 17,569,200 Transportation (Local) 15,000,000 18,000,000 21,600,000 25,920,000 31,104,000 Audit and Professional Services 30,000,000 36,000,000 43,200,000 51,840,000 62,208,000
346,787,643 356,826,277 421,736,285 500,427,910 595,274,041
Insurance Costs Year 1 Year 2 Year 3 Year 4 Year 5 at 5% of Asset Costs
97,500,000 107,250,000 117,975,000 129,772,500 142,749,750
Year 1 Year 2 Year 3 Year 4 Year 5 Motor Vehicle Running Costs
fueling Costs (50lts) petrol 6,000 6,600 7,260 7,986 8,785 Frequency 104 104 104 104 104 No. of Vehicles 10 20 25 30 30
6,240,000 13,728,000 18,876,000 24,916,320 27,407,952
Servicing Costs 25,000 27,500 30,250 33,275 36,603 Frequency 4 4 4 4 4 No of Vehicles 10 20 25 30 30
1,000,000 2,200,000 3,025,000 3,993,000 4,392,300
Total 7,240,000 15,928,000 21,901,000 28,909,320 31,800,252
Year 1 Year 2 Year 3 Year 4 Year 5 Miscellaneous (% Total Opex) 10% 10% 10% 10% 10%Total Opex 510,128,893 546,385,652 636,935,797 744,730,394 867,324,533
Miscellaneous 51,012,889 54,638,565 63,693,580 74,473,039 86,732,453
Grand Total 561,141,782 601,024,217 700,629,377 819,203,433 954,056,986
Year 1 Year 2 Year 3 Year 4 Year 5 Pre-operation Expenses
Consultant Fee 300,000,000 Other pre - operating cost 100,000,000
400,000,000
400,000,000 - - - -
PERSONNEL COSTS
Number in employmentSalary Year 1 Year 2 Year 3 Year 4 Year 5
1 Managing Director/CEO 30,000,000 1 1 1 1 1 2 Chief Operating Officer 20,000,000 1 1 1 1 1 3 Head Business Development 15,000,000 1 1 1 1 1 4 Head Admin/HR & Logistics 10,000,000 1 1 1 1 1 5 Banquet Manager 10,000,000 1 1 1 1 1 6 F&B Manager 10,000,000 1 1 1 1 1 7 Marketing 8,000,000 4 8 12 12 16 8 Head Support Services 6,000,000 1 1 1 1 1 9 Account Officers 4,000,000 2 2 4 4 4
10 Customer Service Officer 2,000,000 2 2 4 4 4 11 Research & Data Officer 2,400,000 1 1 2 2 2 12 Drivers 600,000 2 2 4 4 5 13 Card Officers 960,000 2 2 2 3 3 14 OTHER Personnell 1,000,000 30 30 30 30 30
Total SalaryTraining CostsTotal Personnel Cost 50 54 65 66 71
AssumptionsSalaries increase from 3rd & 5th year percentage 10.0%December Bonus is a percentage of Salaries 5.0%
Total SalaryYear 1 Year 2 Year 3 Year 4 Year 5
Managing Director/CEO 30,000,000 30,000,000 33,000,000 33,000,000 36,300,000 Chief Operating Officer 20,000,000 20,000,000 22,000,000 22,000,000 24,200,000 Head Business Development 15,000,000 15,000,000 16,500,000 16,500,000 18,150,000 Head Admin/HR & Logistics 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000 Banquet Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000 F&B Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000
Marketing 32,000,000 64,000,000 105,600,000 105,600,000 116,160,000 Head Support Services 6,000,000 6,000,000 6,600,000 6,600,000 7,260,000 Account Officers 8,000,000 8,000,000 17,600,000 17,600,000 19,360,000 Customer Service Officer 4,000,000 4,000,000 8,800,000 8,800,000 9,680,000 Research & Data Officer 2,400,000 2,400,000 5,280,000 5,280,000 5,808,000 Drivers 1,200,000 1,200,000 2,640,000 2,640,000 2,904,000 Card Officers 1,920,000 1,920,000 2,112,000 3,168,000 3,484,800
30,000,000 30,000,000 33,000,000 33,000,000 36,300,000
- - - - Total Salary 180,520,000 212,520,000 286,132,000 287,188,000 315,906,800 December Bonus 7,521,667 8,855,000 11,922,167 11,966,167 13,162,783 Total Personnel Cost 188,041,667 221,375,000 298,054,167 299,154,167 329,069,583
Abuja Mixed Use Feasibility StudySensistivity Analysis -- Occupancy RateIn Millions of Naira
Pre-Const. Ending
& Const. Year 1 Year 2 Year 3 Year 4 Year 5 Valuation
Base Case-Feasibility Study 8-11-10Average Occupancy 74% 78% 82% 84% 85%Revenue 3,515 4,108 4,767 5,530 6,241 Net Income (390) 840 1,081 1,350 1,843 2,155 Operating Cashflow (8,740) 385 1,199 1,479 1,943 2,274 39,209 IRR 36%Financing Need 8,840
Scenario 1Average Occupancy 50% 70% 80% 85% 85%Revenue 2,375 3,657 4,598 5,374 5,911 Net Income (392) 395 903 1,282 1,774 2,012 Operating Cashflow (8,743) (61) 1,023 1,411 1,874 2,132 36,752 IRR 33%Financing Need 8,904
Scenario 2Average Occupancy 50% 50% 50% 50% 50%Revenue 2,375 2,612 2,874 3,161 3,477 Net Income (392) 395 498 613 841 985 Operating Cashflow (8,743) (61) 616 742 940 1,104 19,042 IRR 18%Financing Need 8,904
Scenario 3Average Occupancy 70% 70% 70% 70% 70%Revenue 3,272 3,599 3,959 4,355 4,791 Net Income (390) 746 883 1,036 1,346 1,541 Operating Cashflow (8,740) 290 1,002 1,165 1,446 1,661 28,631 IRR 29%Financing Need 8,840
Scenario 5Average Occupancy 80% 80% 80% 80% 80%Revenue 3,721 4,093 4,502 4,952 5,447 Net Income (390) 920 1,075 1,247 1,598 1,819 Operating Cashflow (8,740) 465 1,193 1,376 1,698 1,938 33,411 IRR 33%Financing Need 8,840
Scenario 3Average Occupancy 85% 85% 85% 85% 85%Revenue 3,945 4,339 4,773 5,251 5,776 Net Income (390) 1,007 1,170 1,352 1,724 1,957 Operating Cashflow (8,740) 552 1,289 1,481 1,824 2,076 35,801
IRR 35%Financing Need 8,840
Pre-Design Estimates Land Building and Site Soft Costs FF&E
3 Star 9.0% 65.0% 11.0% 12.0%
4 Star 10.0% 64.0% 10.0% 12.0%
5 Star 13.0% 59.0% 14.0% 10.0%
Super Luxury 15.0% 59.0% 13.0% 10.0%
4 Star 10.0% 64.0% 10.0% 12.0%
NairaProgram Management 0.8% 52,164,000.00
Architecture 4.1% 279,864,000.00
Structural 2.1% 148,212,000.00
Mechanical 1.5% 100,188,000.00
Electrical 1.5% 100,188,000.00
QS 2.1% 141,588,000.00
Financial Consultants 5.0% 345,000,000.00
Reimbursables 1.0% 69,000,000.00
Total 17.9% 1,236,204,000.00
Expected Project Cost Preliminaries Development Costs
8,000,000,000.00 1,100,000,000.00 6,900,000,000.00
86%
64%
22%
1,780,000,000.00
Pre-Opening & Working Capital Total Cost Per Room
3.0% 100% 117,300.00
4.0% 100% 250,100.00 182
4.0% 100% 360,000.00
3.0% 100% 538,000.00
600,000.00
4.0% 100%
Dollars 347,760.00
1,865,760.00
988,080.00
667,920.00
667,920.00
943,920.00
2,300,000.00
460,000.00
8,241,360.00
Project Is Over Costed By 1.7B
Dollar Naira
45,518,200.00 7,282,912,000.00