Professional Documents
Culture Documents
For
THE FINANCE
OF 5 STAR HOTEL IN ABUJA
PROJECT INFORMATION:
Company Westin Nova
Sponsor: Treadstone Mall
SUBSTRUTURE 300,000,000
Concrete Retaining Foundation, Walls & Pilling, Ground Beams, Ground
Slap, Subsoil Investigation etc
FRAMES 300,000,000
Building frame, colums, beams, floor slaps, staircases, concrete vehicle
ramps,lift shaft etc
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
Electrical equipment & installations, luminaries & light fittings, telephone,
telex, TV, PABX, CCTV etc
MECHANICAL INSTALLATIONS 740,000,000
Plumbing installations, Lift Installation, Air-conditioning, Fire Fighting Installation
09/17/2017 3 366104656.xlsx
Smooth Rendering, Vitrified Floor Tiles, Wall Tiles, Suspended Ceiling, Granolithic
Floor
EQUIPMENT, FITTINGS & FURNITURE 370,000,000
Bedrooms Furniture, Kitchen Fittings, Kitchen Equipment, Bar Reception,
Restaurant
PAINTING & DECORATING 270,000,000
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
09/17/2017 4 366104656.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
09/17/2017 5 366104656.xlsx
300,000,000
67,500,000
09/17/2017 6 366104656.xlsx
6000 300,000,000
09/17/2017 7 366104656.xlsx
Return to Table of Content
Construction 30-December 30-December 30-December
Period Year 1 Year 2 Year 3
INFLOWS =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
OUTFLOWS
Capex 7,500,000,000 - - -
Direct Cost 1,112,435,554 1,242,579,109 1,346,047,020
Indirect Cost (Operating Expenses) 749,183,448 822,399,217 998,683,544
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
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
FCFE (2,250,000,000) 933,577,512 1,195,016,600 1,284,792,615
Cumulative Net Cash Flow (1,316,422,488) (121,405,888) 1,163,386,727
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 Bond 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%
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732
- - 407,000,000 - - - -
1,480,651,722 1,628,716,894 1,791,588,583 1,970,747,442 2,167,822,186 2,384,604,405 2,623,064,845
1,118,357,600 1,283,126,570 1,411,439,227 1,552,583,149 1,707,841,464 1,878,625,611 2,066,488,172
1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 - -
3,776,796,928 4,089,631,070 4,787,815,417 4,701,118,198 5,053,451,257 4,263,230,015 4,689,553,017
4 5 6 7 8 9 10
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
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
4 5 6 7 8 9 10
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
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
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
10,304,897,605 11,335,387,366 12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707
407,000,000 - - - - 407,000,000 -
2,885,371,329 3,173,908,462 3,491,299,309 3,840,429,240 4,224,472,164 4,646,919,380 5,111,611,318
2,273,136,989 2,500,450,688 2,750,495,757 3,025,545,333 3,328,099,866 3,660,909,852 4,027,000,838
- - - - - - -
5,565,508,319 5,674,359,151 6,241,795,066 6,865,974,572 7,552,572,029 8,714,829,232 9,138,612,156
- - - - - - -
11 12 13 14 15 16 17
4,739,389,287 5,661,028,215 6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551
28,882,038,379 34,543,066,595 40,770,197,632 47,620,041,772 55,154,870,327 63,036,181,737 72,153,324,288
11 12 13 14 15 16 17
4,739,389,287 5,661,028,215 6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551
24,709,737,528 30,370,765,744 36,597,896,781 43,447,740,921 50,982,569,476 58,863,880,886 67,981,023,437
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
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
- - - 407,000,000 - - -
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
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
- - - - - - -
9,730,313,304 10,374,741,366 11,077,040,169 12,249,865,346 12,678,435,463 13,590,588,264 14,586,842,530
- - - - - - -
18 19 20 21 22 23 24
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
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
18 19 20 21 22 23 24
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
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
30-December 30-December
Year 25 Year 26
=N= =N=
- -
- -
39,132,831,507 43,046,114,658
39,132,831,507 43,046,114,658
- -
10,957,192,822 12,052,912,104
4,718,273,309 4,812,638,775
- -
15,675,466,131 16,865,550,879
23,457,365,376 26,180,563,779
199,915,575,672 226,096,139,451
- -
25 26
23,457,365,376 26,180,563,779
201,837,876,523 228,018,440,302
25 26
23,457,365,376 26,180,563,779
197,665,575,672 223,846,139,451
Return to content table
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Projected Revenue
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 4,437,782,532 4,807,310,785 5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605
Rental Income 3,972,984,120 4,437,782,532 4,807,310,785 5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605
EXPENSES
TOTAL OPEX 1,861,619,002 2,064,978,326 2,344,730,564 2,599,009,321 2,911,843,464 3,203,027,810 3,523,330,591 3,875,663,650 4,263,230,015 4,689,553,017 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 2,281,578,326 2,561,330,564 2,815,609,321 3,128,443,464 3,427,027,810 3,747,330,591 4,099,663,650 4,487,230,015 4,913,553,017 5,382,508,319
EARNINGS BEFORE INTEREST AND TAX 1,894,765,118 2,156,204,206 2,245,980,222 2,472,432,542 2,688,402,586 2,971,502,845 3,291,053,129 3,642,558,442 4,029,214,287 4,454,535,715 4,922,389,287
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 1,131,979,886 1,289,348,572 1,425,451,429 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%
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Projected Balance Sheet
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 10,263,586,727 11,558,231,663 13,068,846,643 14,862,561,881 16,975,827,404 19,440,598,240 23,469,812,527 27,924,348,242 32,846,737,528
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 10,136,370,729
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 11,188,734,825 13,594,192,083 16,334,057,798 19,363,142,084 22,710,366,799
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 11,256,234,825 13,661,692,083 16,401,557,798 19,430,642,084 22,777,866,799
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)
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=
11,335,387,366 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
11,335,387,366 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
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 10,374,741,366 11,077,040,169 11,842,865,346 12,678,435,463 13,590,588,264 14,586,842,530 15,675,466,131 16,865,550,879
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
5,898,359,151 6,465,795,066 7,089,974,572 7,776,572,029 8,531,829,232 9,362,612,156 9,954,313,304 10,598,741,366 11,301,040,169 12,066,865,346 12,902,435,463 13,814,588,264 14,810,842,530 15,899,466,131 17,089,550,879
5,437,028,215 6,003,131,037 6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 10,127,016,873 11,490,721,829 12,997,369,346 14,661,385,120 16,498,640,050 18,526,594,800 20,764,458,841 23,233,365,376 25,956,563,779
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 10,127,016,873 11,490,721,829 12,997,369,346 14,661,385,120 16,498,640,050 18,526,594,800 20,764,458,841 23,233,365,376 25,956,563,779
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 11,219,075,234 12,598,084,464 14,119,832,012 15,798,688,456 17,650,463,370
- - - - - - - - - - - - - - -
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 11,219,075,234 12,598,084,464 14,119,832,012 15,798,688,456 17,650,463,370
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 92,296,762,139 105,518,131,485 119,996,516,605 136,719,156,655 155,469,751,455 176,458,210,296 199,915,575,672 226,096,139,451
38,283,765,744 44,286,896,781 50,912,740,921 58,223,569,476 66,287,880,886 75,181,023,437 85,308,040,310 96,798,762,139 109,796,131,485 124,457,516,605 140,956,156,655 159,482,751,455 180,247,210,296 203,480,575,672 229,518,539,451
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
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
26,407,545,986 30,489,675,091 34,995,249,106 39,966,612,524 45,450,344,282 51,497,681,217 58,384,052,691 66,197,743,535 75,035,954,690 85,005,696,571 96,224,771,805 108,822,856,269 122,942,688,281 138,741,376,737 156,473,240,107
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 93,974,771,805 106,572,856,269 120,692,688,281 136,491,376,737 154,141,840,107
26,475,045,986 30,557,175,091 35,062,749,106 40,034,112,524 45,517,844,282 51,565,181,217 58,451,552,691 66,265,243,535 75,103,454,690 85,073,196,571 96,292,271,805 108,890,356,269 123,010,188,281 138,808,876,737 156,459,340,107
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
Return to content table
Earnings Before Interest & Tax 1,894,765,118 2,156,204,206 2,245,980,222 2,472,432,542 2,688,402,586
12,000,000,000
10,000,000,000
8,000,000,000 Revenue
Net Profit/(Loss)
6,000,000,000 Cumulative Net Cashflow
4,000,000,000
14,000,000,000
12,000,000,000
10,000,000,000
8,000,000,000 Revenue
Net Profit/(Loss)
6,000,000,000 Cumulative Net Cashflow
4,000,000,000
2,000,000,000
-
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
6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605 11,335,387,366 12,468,926,102
Revenue
Net Profit/(Loss)
Cumulative Net Cashflow
Revenue
Net Profit/(Loss)
Cumulative Net Cashflow
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21
N N N N N N N N
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
Initial Loan
Construction
Period Year 1 Year 2
Opening balance 5,250,000,000 6,329,421,000 5,771,916,652
Interest (to P&L) 1,079,421,000 620,283,258 565,647,832
Principal Repayment 557,504,348 612,139,774
Annual Repayment 1,177,787,606 1,177,787,606
Closing Debt (to BS) 6,329,421,000 5,771,916,652 5,159,776,877
0 0 0 0 0
0 0 0 0 0
HOTEL FEASIBILITY
Analysis of Operating Expenditure
36,071,764 39,678,940
36,071,764 39,678,940
Year 4 Year 5
1,331,000 1,464,100
6 6
7,986,000 8,784,600
199,650 219,615
2 2
16,371,300 18,008,430
52,443,064 57,687,370
Year 4 Year 5
8 8
345,600 414,720
33,177,600 39,813,120
Year 4 Year 5
17,280,000 20,736,000
51,840,000 62,208,000
25,920,000 31,104,000
259,200,000 311,040,000
13,225,910 13,559,841
25,920,000 31,104,000
13,310,000 14,641,000
15,972,000 17,569,200
25,920,000 31,104,000
51,840,000 62,208,000
500,427,910 595,274,041
Year 4 Year 5
129,772,500 142,749,750
Year 4 Year 5
7,986 8,785
104 104
30 30
24,916,320 27,407,952
33,275 36,603
4 4
30 30
3,993,000 4,392,300
28,909,320 31,800,252
Year 4 Year 5
10% 10%
744,730,394 867,324,533
74,473,039 86,732,453
819,203,433 954,056,986
Year 4 Year 5
- -
PERSONNEL COSTS
Number in employment
Salary 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 Salary
Training Costs
Total Personnel Cost 50 54 65 66 71
Assumptions
Salaries increase from 3rd & 5th year percentage 10.0%
December Bonus is a percentage of Salaries 5.0%
Total Salary
Year 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 Study
Sensistivity Analysis -- Occupancy Rate
In Millions of Naira
Pre-Const. Ending
& Const. Year 1 Year 2 Year 3 Year 4 Year 5 Valuation
Scenario 1
Average 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 2
Average 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 3
Average 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 5
Average 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 3
Average 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 Im Soft Costs FF&E
Naira
Program Management 0.8% 52,164,000.00
QS 2.1% 141,588,000.00
86%
64%
22%
1,780,000,000.00
Pre-Opening & Working Capital Total Cost Per Room
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
45,518,200.00 7,282,912,000.00