Overview
International Hotel Brand Franchised 5-Star Hotel Project, is seeking developers to take over the project. The project spans 2600 sq. yards and has received Expressions of Interest from leading 3 x international hotel brands. With a proposed development budget of ₹60+ crore, the plan includes a modern G+9 building featuring 80-100 keys, 2 conference halls, 2 event halls, 1 lounge, 2 restaurants, and a luxury spa, ensuring a complete high-end hospitality experience. Financial projections are strong, with a payback period of 5 years and an ROI ranging from 33% to 57% within 5 years. The project is profitable at a low 37% occupancy, generating ₹20+ crore revenue and 33% EBT, with potential EBT rising to 57% at higher occupancy. Located in a district with no existing 4- or 5-star competitors, the market potential is robust, supported by Kerala’s tourism base of 22 lakh annual visitors, while requiring only 1.5 lakh visitors to break profitability. Developer will benefit with a majority equity stake, dedicated to building an internationally branded luxury hotel.
Business Details
Describe Property
26000sft bare land, consisting of 3000 sft of unoccupied structure. 3 phase Electric connection and water supply is available.
Competition / Market
No 4 or 5 Star hotel in entire district. TAM of 22 lac tourists come to Kerala very year, requires only a SOM of 1.5 lac to generate revenues of +20cr and EBT of 33% - Business Research Report done by hotels is available - Financials based on research report is available
Products & Services
Hospitality 2 x Restaurants 1 x Lounge Bar 2 x Event Halls 2 x Conference Halls
Growth Potential
1.Urbanized locals, where district has highest bank deposits in the state, indicating high spending power. 2.Tourism is main stay of state, and 22 lac tourists visit Kerala every year. While total tourists in India are at 90 lacs, a huge supply gap exists. 3.No competition in the district, while the urbanized locals would prefer a star category restaurant and bar in the district. 4.Upmarket Sabrimala temple traffic can be accommodated, with Stay and proximity to temple is 60km while Kochi and Trivandrum are about 150km away. 5.No star category standardized Event halls and conference facilities in the district.
Reason For Sale
Liquidate interest in favour of business looking at developing the hotel to be managed by the international 5 star hotel management
Financial Details
How the Acquisition Process Works
- 01Contact SellerContact Seller
- 02Teaser/Information MemorandumTeaser/Information Memorandum
- 03Valuation ReportValuation Report
- 04FinancialsFinancials
- 05Schedule an Advisory MeetingBook Your Consultation