Proposed 3 Star Hotel, Nairobi
The investment project entails refurbishment development of a 3 Star Hotel.
Key Points:
- 3 Star Hotel Development
- The overall cost of the Project is $2,500,000.00.
- Express interest is for Debt Financing is $2,000,000.00
- Internal rate of return is projected at 17% per annum.
- Equity multiple is 1.6X
- Targeted holding period is expected to be 6 years.
- Expected project commencement date is 2th April, 2018
Project Overview
Location
Nairobi NCBD
Type
Hotel Development
Feature Details
3 Star Hotel
Description
OVERVIEW OF EXECUTIVE SUMMARY
Market Findings:
The following are the main findings of the study:
- The site is favorably accessible, being located near various business activities.
- There is demand from the numerous diverse businesses around the project area.
Financial Analysis
The proposed venture is viable due to:
- A positive NPV.
- Projected positive Cash Flows through the first ten years.
- An IRR that is greater than the discount rate.
- A short payback period.
- A high return on investment
Investment Plan & Details
Capital Structure
Project Cost
$2,500,000.00
Owner's Equity
$500,000.00
Express Interest
$2,000,000.00
Offering Type
Offering Type
Debt
Project Type
Hotel Development
Return on Investment
Investor Returns(IRR)
17% p.a.
Equity Multiple
1.6X
Monthly Income
-
Payback Period
-
Investment Hold Period
Targeted Hold Period
6 Years
Inception Date
2019/04/01
Investments Documents
Document
High Level Business Case