Contact: Jaime Jensen
Transcription
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 2 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 22 3 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 4 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. 5 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. 6 Photo Gallery 7 Martini Lounge 8 Romantic Escape 9 10 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. 11 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 12 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. 13 • 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 14 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. 15 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. 16 Brazil Macroeconomic Trends 17 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) 18 Competitive Lodging Market 19 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. 20 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 21 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 21 Financial Analysis 22 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. 23 24 Jaime Jensen www.jaimejensen.com +011.415.922.9060 USA +549.11.3885.9270 Buenos Aires [email protected] 25