Divestment of Hospitality Assets in Maldives
Project Overview
Project: Divestment of Hospitality Assets in Maldives
Location: Maldives
Duration: Jul. 2009 to Dec. 2009
Client: Villa Shipping and Trading Company (P) Limited
Brief Description of the Project
Divestment of seven (7) Hospitality Assets in Maldives owned by a private entity based in Maldives. These assets were already running / new property island beach resorts and beach hotels which were on a leasehold basis with the private entity from the Government of Maldives. The client wanted to transfer leasehold rights to the prospective investor(s) at an upfront premium. Tourist Resorts with its unique One-island-One-resort concept continue to be the most attractive type of accommodation in Maldives. Hoteliers like Four Seasons, Banyan Tree, Taj, Starwood, Hilton, Marriott & Intercontinental have been operating in Maldives.
Services Provided
- Study of Physical Characteristics of the region such as Location, Connectivity & distances of project site (air, rail, road), Approach from major cities / sites, Site photographs, Layout plan and Availability of support infrastructure (power, water, communication, any encroachment).
- Study of Project Profile including Project Area / Profile, Project Status, Project ownership details / client details, Current operating parameters of the assets (e.g. ARRs, Occupancy, revenues, expenses, balance sheets, if any), Valuation of Property and any project report or valuation model.
- Market Research on data related to Tourist & significance of the place. (Pilgrimage/ recreation/ adventure/ business), Type of hotels / resorts in the region and its occupancy, ARR, etc., Any building restrictions as per Applicable laws of land esp. building bye-laws, Relevant laws of Maldives applicable to tourism / hotel sector, etc.
- Development of Project Term Sheet which consisted of Terms of Divestment, Type of contract – Lease (short-term / long-term) / Out-right sale / Management contract / Any other contract.
- Financial analysis including projected cashflow statements.
- Development of pitch presentation and reaching out to strategic investors / partners.
- Support in concluding the transaction.