Contact: Jaime Jensen

Contact:
Jaime Jensen
[email protected]
jaimejensen.com
+011.415.992.8060 USA
+549.11.3885.9270 Buenos Aires
1
Confidentiality and Conditions
THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use in considering whether to
pursue negotiations for the Martin Pescador Boutique Hotel (the “Hotel”) located in Enseada do Gancho, 15-A,
in Manguinhos in Armação dos Búzios, Rio de Janeiro, Brazil and is not intended to be an offer for the sale of the
Property.
This confidential memorandum, which contains brief, selected information pertaining to the business and affairs
of the Hotel, has been prepared by Opus8, Inc. (“O8”). This confidential memorandum does not purport to be allinclusive or to contain all of the information, which a prospective buyer may desire. Neither seller nor O8 nor any
of their officers, employees, or agents make any representation or warranty, expressed or implied, as to the
accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed
or shall be implied with respect thereto.
By acknowledgement of your receipt of this confidential memorandum, you agree that the memorandum and its
contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not, directly or
indirectly, disclose or permit anyone else to disclose this memorandum or its contents to any other person, firm or
entity without prior written authorization of the Seller, and that you will not use or permit to be used this
memorandum or its contents in any fashion or manner.
If you do not wish to pursue negotiations leading to this opportunity, or if in the future you discontinue such
negotiations, you agree to return this confidential memorandum to O8.
THIS CONFIDENTIAL MEMORANDUM SHALL NOT BE DEEMED A REPRESENTATION OF THE STATE OF AFFAIRS OF
THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS
OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THIS MEMORANDUM.
Date: April, 2012
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Table of Contents
• Confidentiality and Conditions
2
• Table of Contents
3
• Executive Summary
4
• Photo Gallery
7
• Property Location
11
• Property Description
13
• Brazilian Macroeconomic Outlook
17
• Lodging Markets
19
• Financial Analysis
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Executive Summary
This offering is comprised of the fee simple interest in the
Martin Pescador Boutique Hotel (the “Hotel”), located 165
km (2.5 hours) northeast of Rio de Janiero on the edge of
Manguinhos Beach on the northern coast of Armação dos
Búzios. The property sits on 3,260 m2 in the beach section of
Buzios, RJ, Manguinhos, Brazil. The hotel, which was
renovated in 2007, contains 18 suites, all featuring a private
balcony and view of the sea. In addition to access to the
Manguinhos Beach, the Hotel offers a swimming pool,
sauna, and beauty and body treatments. The hotel is being
offered unencumbered by both management and brand.
Asking price:
Timing:
U$1,800,000
Immediate
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The Martin Pescador Boutique Hotel:
Established in 1981, the Martin Pescador Boutique Hotel is one
of the first hotels built in Armação dos Búzios, one of the most
beautiful and sophisticated tourist destinations in Brazil. For
those seeking tranquility, privacy, or a romantic and magical
getaway, the Martin Pescador Boutique Hotel offers the
following amenities:
•
Beautiful oceanfront location on Manguinhos Beach
•
Private oceanfront balconies with expansive views of the
sea below in every suite
•
18 suites, either standard or deluxe (larger with 2 living
environments)
•
All suites have a queen size bed that is slightly elevated so
guests never lose sight of the sea, as well as cable TV, air
conditioning, free wireless Internet (Wi-Fi), telephone,
minibar, safe with key, and DVD player (Luxury Suites).
•
Swimming pool
•
Sauna
•
Beauty and body treatments that can be enjoyed in the
rooms or in sessions outside facing the beach
•
Waterfront bar
•
Waterfront lounge
•
Upstairs bar
•
Air conditioning in all guest suites
•
Game room (billiards table)
•
Outdoor beds
•
Proximity to the shopping, fine dining, and nightlife of
Buzios
•
Unencumbered by both management and brand.
Location:
The Martin Pescador Boutique Hotel is located in
Enseada do Gancho, 15-A, in Manguinhos in Armação
dos Búzios, Rio de Janeiro, Brazil on the northern coast
of Armação dos Búzios. The Hotel is situated off of
Avenida José Bento Ribeiro Dantas, the main street
through Buzios, and is located 165km (2.5 hours) from
Rio de Janiero. The property is 2.7 miles from the
Umberto Modiano Airport and only 14 miles from the
Cabo Frio International Airport.
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Region (Buzios)
Búzios (officially known as Armação dos Búzios), an
8km peninsula, a former fishing village located in
Região dos Lagos, in the state of Rio de Janeiro,
Buzios is about 165km from the city of Rio de
Janeiro. The peninsula was popularized by legendary
movie star Brigitte Bardot in the 1960s and is now
one of the top resort destinations in all of Brazil.
Búzios has 23 beaches, each one with its own unique
characteristics – sandy or rocky, large or small, and
windy or calm. The main strip, Rua das Pedras, is the
home of the shopping, fine dining, and nightlife of
Buzios. The peninsula also has two nature reserves:
the Emerências Reserve, where you'll find the purest
Atlantic Forest vegetation, with exotic plants,
bromeliads and the last golden tamarin monkeys in
the region, and the Taua Reserve, where you can see
over 300 species of butterflies and 60 types of birds.
Opportunity
The opportunity now exists to purchase the
Martin Pescador Boutique Hotel unencumbered
by both management and brand. With some
renovation the property will be positioned as
one of the top upscale boutique hotels in the
Buzios Market.
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Photo Gallery
7
Martini Lounge
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Romantic Escape
9
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Property Location
The Martin Pescador Boutique Hotel was built in 1981
in Armação dos Búzios, one of the most beautiful and
sophisticated tourist destinations in Brazil. Armação
dos Búzios is a popular resort town located in the state
of Rio de Janeiro. The peninsula was made popular by
the legendary movie star Brigitte Bardot and has 23
beaches and 18 islands in its vicinity.
The west of the peninsula offers clear and calm coast for a
quiet relaxing vacation, while the east side offers wild
adventures such as windsurfing and other water sports.
Each beach offers a different experience, and every
personality is bound to find a suitable beach here. Some of
the popular beaches in the area include João Fernandinho,
Azeda, Ferradura, and Manguinhos. While João Fernandinho
is known for its seafood and drinks, Manguinhos is known
for water sports, especially wind surfing. In addition to
beaches, the peninsula also has an active scene of
restaurants and nightlife.
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Martin Pescador Boutique hotel is located
in Enseada do Gancho, 15-A, in
Manguinhos in Armação dos Búzios, Rio
de Janeiro, Brazil on the northern coast of
Armação dos Búzios. Located 2 and half
hours from Rio de Janeiro, Martin
Pescador is the only hotel situated on the
edge of the calm and crystalline waters of
Manguinhos beach.
The hotel is close to many transportation
points and tourist attractions. It is about 2
mile (5 minute on cab) from Rua Das
Pedras, the cobblestone street that is the
center to all the restaurants, bars,
shopping, and nightlife.
Transportation
Tourist Attractions
Bus Station Auto Viação 1001: 2.2 mi
Rua Das Pedras: 2.0 mi
Three Fishermen: 2.5 mi
Umberto Modiano Airport: 2.7 mi
Bardot Seashore : 2.0 mi
City Centre: 2.6 mi
Cabo Frio International Airport: 14 mi
Gran Cine Bardot: 2.1 mi
Brigitte Bardot Statue: 3 mi
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Property Description
Address:
Enseada do Gancho, 15-A, in Manguinhos in Armação dos
Búzios, Rio de Janeiro, Brazil
Property Overview:
Established in 1981, the Martin Pescador Boutique Hotel
is one of the first hotels built in Armação dos Búzios, one
of the most beautiful and sophisticated tourist
destinations in Brazil. Located 2 1/2 hours from Rio de
Janeiro, on the edge of the calm and crystalline waters of
Manguinhos beach, the hotel, which was renovated in
2007, offers 18 individually decorated suites, all featuring
a balcony and view of the sea - a beautiful setting where
guests can enjoy the orange Sunset and calm reflection of
the moonlight night.
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• 5 buildings in total: main building, waterfront
building, 3 bedroom house, laundry building, and
lounge building
• 18 guest rooms: 7 luxury suites and 11 standard
suites, all ocean view with balconies
• 3,260 m2 in total
• Swimming pool, sauna, TV room, bar right next to
the beach
• Beauty, body treatment, relaxing massages
available in rooms or on beach
• Proximity to beach area as well as Rua Das Pedras,
the main street with restaurants, bars, and
nightlife
• Offers privacy, tranquility and intense contact
with nature
• The only hotel on Manguinhos Beach
• Large windows provide breath-taking views
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Dining:
The hotel has one restaurant. The cuisine
combines the best of Mediterranean and Brazilian
cuisine of the region, such as seafood, tropical
salads, meat and pasta, and appetizers that can be
delivered in the guestrooms, or offered in the
hotel restaurant, or outdoors.
Recreational Facilities:
Martin Pescador Boutique Hotel offers swimming
pool, sauna, TV room, games room, bar with direct
access to the beach, and gazebos for guests to
relax on the beachfront. The hotel also offers
beauty and body treatments. Manicure, pedicure
and hair stylists are available to guests, who can
also enjoy relaxing massages in the rooms or in
sessions outside facing the beach.
Mechanical Systems:
There is no central HVAC systems but each room has
individual window air conditioning units. The house
also has 2 brand new larger window units. Plumbing
throughout all the buildings are in good condition.
Hotel Management Agreement:
There is no management agreement. The hotel is
owned and managed by Sunscreen Group Limitada, a
Brazilian limited liability entity.
Zoning By-Laws:
The town of Armação dos Búzios has been a popular
resort destination for many years and currently has
no zoning or by-laws that affects the establishment.
Property Construction
Real Estate Taxes:
The building was built in 1981 and is in excellent
condition. It is constructed with100% masonry. The
building has Spanish-style white stucco exterior
featuring wood-frame hinged windows and terra
cotta roofing.
There are annual Real Estate Taxes and Waterfront
Taxes at 8,000 Reals and 21,000 Reals respectively.
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Environmental Analysis:
Target Market:
Ownership has revealed no environmental issues or
hazardous waste issues that would impact the subject
property.
The target market ranges, but is primarily people
from Rio de Janeiro region and other cities in
Brazilian cities. The hotel also attracts South
Americans from generally from Argentina, Chile,
Venezuela, and Columbia. During the summer
months the hotel attracts European and North
American travelers.
Guestroom Description:
There are two types of suites that make up the total of 18
guestrooms: 11 Standard, with queen size double bed,
and 7 Luxury, more spacious with two rooms. Both types
of suites are equipped with color television, air
conditioning, telephone, minibar, safe, and free wireless
Internet (Wi-Fi), available throughout the entire property,
including bedrooms. Each of the 18 individually
decorated suites offer balconies with expansive views of
the sea below.
Lease and Service Agreements:
The subject property is subject to minor service and
lease agreements such as water, electric and
utilities, and pest control. All actual expenses are
reflected on the Profit and Loss statement, and all
contracts will be provided to interested parties.
Additional Information:
There is an adjacent property immediately to
subject property’s West which is a vacant
commercial lot. The owner of the lot has expressed
interest in selling, and interested parties could
purchase and expand.
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Brazil Macroeconomic
Trends
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Brazil Macroeconomic Outlook
Demand in the Brazilian market continues to grow,
increasing about 8% (YTD, Feb 2010), and the
appreciating Brazilian Real caused the ADR growth
as the exchange rate altered (e.g. from 2.37 Real to
the Dollar in February 2009 to 1.86 Real to the
Dollar in February 2010.
(Source: STR Global)
The expectation is of strong GDP expansion (+5.35
percent), a stable exchange rate, and an increase in
SELIC rate (The Brazilian Central Bank’s Overnight
lending rate). While the global economy has shown
no signs of recovery, Brazil has emerged as an
option: foreign direct investment (FDI) for 2010
(projected at US$37.5 billion) will be at its secondhighest level in history, despite the expected
reduction in global FDI.
(Source: HVS Brazilian Hotel Market Overview
2009/2010)
The favorable situation has made the Brazilian hotel
industry especially attractive. Large international
hotel chains have set up development teams in
Brazil. There are other reasons for the attention
besides Brazil’s economic power:
• The country will be hosting the 2014 World Cup
and the 2016 Olympics – events that induce demand,
increase international visibility, and set a deadline for
the execution of large public investments, thereby
increasing executive confidence and ensuring strong
economic activity.
• Creation of Pro-Copa line of credit, which will make
available R$1 billion for the renovation and
expansion of the hotel supply, with attractive
interest rates and terms (starting at 6.9 percent, in
up to 18 years), through the Brazilian Development
Bank – BNDES. The new financing conditions will
make projects more feasible and give developers and
owners good mechanisms for financial leveraging.
(Source: HVS Brazilian Hotel Market Overview
2009/2010)
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Competitive Lodging
Market
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Competitive Lodging Market
The Martin Pescador is a midscale boutique hotel
with a superior location to most in its competitive
set. A unique opportunity exists to purchase the
hotel and reposition it as a top luxury hotel in the
region.
Pousada Corais e Conchas is located approximately 2
kilometers south along the peninsula on the
southern side of the Buzios peninsula. The Pousada
Corais e Conchas offers 28 spacious bungalows with
balconies and hammocks in a secluded green area.
The property is proximate to both Downtown and
Geribá, one of Búzio’s most lively beaches known for
its beach sports and bars.
Pousada Amancay is located approximately 5
kilometers further east along the northern side of
the Buzios Peninsula. Pousada Amancay offers 16
rooms all with ocean views. It is situated on Joao
Fernandes Beach, a popular local beach. The hotel is
also within walking distance of Downtown.
Hibiscus Beach Pousada is located approximately 6
kilometers northwest on the northern side of Buzios
peninsula. The hotel is set on a hillside overlooking
the popular Joao Fernandes Beach. Hibiscus Beach
Pousada offers 14 bungalows with ocean views and
are set adjacent to a tropical gardens.
Pousada Byblos is located approximately 4
kilometers further east along the north side of the
Buzios peninsula in close proximity to the Pousada
Corais e Conchas. Pousada Byblos offers 21 rooms
with dazzling views of Armacao Beach. The hotel is
proximate to Downtown and numerous popular
beaches.
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Key Market Indices
• The competitive market has been able to mitigate
periods of economic downturn as it is considered a
“drive-to” destination and will continue to benefit
from this orientation. As such the local lodging
market will continue to draw from major cities in
Brazil.
• The natural beauty of the Buzios coastal region provides
the perfect backdrop for beachfront properties.
• Buzios remains a seasonal market with high season
stemming from December to March and low season from
April to November.
Competitive Hotel Summary
Pousada Corais e
Conchas
Distance to Subject
Property
Type of Facility
AAA Guide Rating
Rooms
Season
Waterfront Location
Amenities
1.6 km
Bed & Breakfast
Not Rated
28
Dec-Mar
Yes
Wireless Internet,
Restaurant, Bar,
Outdoor Pool,
Television, AC
Pousada Byblos
Pousada Amancay
Hibiscus Beach
Pousada
4.2 km
5.6 km
6.5 km
Bed & Breakfast
Bed & Breakfast
Bed & Breakfast
Not Rated
Not Rated
Not Rated
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16
14
Dec-Mar
Dec-Mar
Dec-Mar
Yes
No
Yes
Outdoor Pool,
Outdoor Pool,
Wireless Internet,
Restaurant, MiniRestaurant, MiniOutdoor Pool, Bike
Fridge, Television, AC Fridge, Television, AC Rental, Car rental,
Mini-Fridge,
Television, AC
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Financial Analysis
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Projected Occupancy Rate
And Average Daily Rate
Projected Occupancy
As stated previously, the hotel is
located in one of the most
picturesque locations on the
Brazilian Coast. With a focused
renovation, repositioning, and
marketing effort as an upscale
boutique hotel, along with the
benefits associated with stable
ownership it is anticipated that
demand levels will increase
considerably, by recapturing
demand lost demand. Given these
factors, a stabilized occupancy rate
of 36 percent in 2011 is
reasonable.
Average Daily Rate
Projected Cash Flows
The hotels average rate herein
assumes that the property will
achieve a stabilized average daily
rate of $225.56 in 2011. Assuming
significant renovations,
repositioning, and aggressive
marketing we anticipate significant
rate gains allowing the property to
compete with upper-tier lodging
products in the Buzios region.
The projections herein utilized the
financial performance of the
subject property over the last
three years and assumes that the
property will undergo significant
renovation and marketing
repositioning as an upscale
boutique hotel.
Presented below is a 5-year pro
forma for the subject property
including base year 2009 for
reference.
The projections assume a
repositioning to an upper-tier
boutique hotel. The projections are
based on a standard calendar year
January 1 to December 31.
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Jaime Jensen
www.jaimejensen.com
+011.415.922.9060 USA
+549.11.3885.9270 Buenos Aires
[email protected]
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