Project: Business Cases - Renovate and Accommodation

Client: DARP
Subject: Financial Model - Makkah

Dated: January 2020

Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject: Financial Model - Makkah
User Guide

Style Design Comment

Input A user driven input

Demo 100 Values calculated as a result of direct input

Empty_cell A cell that is left intentionally blank to avoid the risk of error

References Blue font Imported from another sheet

Unit / Info Text Explanatory text showing helpful information and the units/dim

Line Summary 100 The SUM() of everything to the right

Total The sum of elements above, including sub-totals

Balance The closing balance of a control account

Doubt To be completed, temporary, restructured, or deleted

To be Considered Values or logic to be reviewed

 avoid the risk of error

rmation and the units/dimensions of the calculations

g sub-totals

ured, or deleted
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject: Financial Model - Makkah
Dashboard

5 Star Hotel 4 Star Hotel 3 Star Hotel 2 Star Hotel 1 Star Hotel Unrated Class 5 Star Hotel 4 Star Hotel 3 Star Hotel 2 Star Hotel 1 Star Hotel 5 Star Hotel 4 Star Hotel 3 Star Hotel 2 Star Hotel 1 Star Hotel

Demand Keys Per Interval (Avg) 112,228 103,980 60,430 34,369 7,623 152,736 No of Keys per Hotel (Average) 1,260 1,127 1,050 700 560 ADR 820 648 529 433 357
Room Revenue
Supply (Existing Keys) 91,603 53,835 188,974 95,724 2,659 581,487 ADR 820 648 529 433 357 Revenue Assumptions
Occupancy 73% 72% 82% 88% 90%
Visitors Per Key 2.08 2.31 2.66 2.88 3.21 3.35 Occupancy (Avg) 73% 72% 82% 88% 90% F&B income (% of Room Revenue) 30% 30% 30% 30% 30%
Demand Visitors Per Interval (Avg) 233,435 240,194 160,743 98,984 24,469 510,903 Rev PAR 602 467 434 381 321 Other income (% of Room Revenue) 10% 10% 10% 10% 10%
Gap (20,625) (50,145) 128,544 61,355 (4,964) 428,751 Investment Highlights Operational Expenses
Departmental expenses (% of Total Revenue) 30% 30% 30% 30% 30%
Assumptions
Source: Existing Keys and Hotel Information - SCTH Capex (Avg)* ### 1,109,492,620 505,236,580 465,209,080 341,606,920 Undistributed Cost (% of Total Revenue) 34% 34% 34% 34% 34%
Capex ( in case of Land Leased) Land Acquisition cost (Charged on Land Area) 30,000 25,000 20,000 10,000 9,000
Total Build Up Area (sqm) 142,800 128,800 73,500 84,000 67,200 Land Lease Rentals (% of Land Price) in case leased. 5% 5% 5% 5% 5%
Required Hotels - Makkah Financial Viability Analysis Results Building Infrastructure cost ( Charged on Land Area) 2,865 2,865 2,865 2,865 2,865
ROI 5% 4% 12% 6% 5% Construction Cost (CC) - Building BUA 9,000 7,500 5,700 4,500 4,000
500,000 Capex Assumptions
ROI (in case of Land Leased) Construction Cost (CC) - Parking BUA 3,200 3,100 3,000 2,900 2,800
400,000 IRR 10% 8% 19% 11% 10% Project Soft Cost (% of CC) 8% 8% 8% 8% 8%
IRR ( in case of Land Leased) Project contingency Cost (% of CC and Soft Cost) 5% 5% 5% 5% 5%
300,000 Payback Period (Years) 11 11 10 11 11 Furniture & Fixtures % of Building Cost 0.17% 0.17% 0.17% 0.17% 0.17%
200,000 Payback Period (Years) (in case of Land Leased) Capitalization Rate Exit Yield 8.50% 8.50% 8.50% 8.50% 8.50%
Profitability Analysis
100,000 Avg Revenue in SR 389,147,819 270,325,553 233,638,421 136,484,741 91,901,348 WACC 8.50% 8.50% 8.50% 8.50% 8.50%
-
Gross Profit Margin 70% 70% 70% 70% 70%
5 Star Hotel 4 Star Hotel 3 Star Hotel 2 Star Hotel 1 Star Hotel Unrated Class EBITDA Margin 31% 30% 32% 32% 32%
(100,000) Net Profit Margin 18% 17% 25% 21% 20%
Net Profit Margin (in case of Land Leased)
Land Details
Land Ownership Leased Leased Leased Leased Leased
Land Area in sqm per hotel 12,000 11,500 7,500 10,000 8,000
Build Up Area (sqm) per hotel – Building 126,000 112,700 63,000 70,000 56,000
Avg BUA per key (sqm) 100 100 60 100 100
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject : Financial Model - 5 Star Hotel - Makkah

Construction Peri
2020

Income Statement

Room rental income SR -

F&B income SR -
Other income SR -
Total revenue SR -
Total Department Expenses SR -
Gross profit SR -
Total Undistributed Operating Expenses SR -
EBITDA (Operating Profit) SR -
Depreciation SR -
EBIT SR -
Finance Cost SR
Net profit before Zakat SR -
Provision for Zakat 2.50% -
Net profit after tax SR -

GP Margin 69.8%
EBITDA Margin 30.8%
EBIT Margin 20.3%
NP Margin 18.4%
ROI 5.1%

Valuation Results

Net present value

Free Cashflow to the firm
Cashflow from operating activities (EBITDA) SR -
CAPEX SR (18,000,000)
Free cash flow SR (18,000,000)
Terminal cash flows SR
Net Cashflow SR (18,000,000)

Net present value SR 19,328,625

Terminal growth rate % 8.5%
WACC % 9.6%

Project IRR % 9.8%

EIRR % 9.0%

Free Cashflow to the firm

Cashflow from operating activities (EBITDA) SR -
CAPEX SR (18,000,000)
Proceeds of long term borrowing SR -
Principal repayment of borrowing SR -
Interest paid SR
Free cash flow SR (18,000,000)
Terminal cash flows SR
Net Cashflow SR (18,000,000)

EIRR % 9.0%

Pay back period

Free cash flow SR (18,000,000)
Cumulative Cash flows - Full Investment SR (18,000,000)

1
(1)

Payback period Years 11.0

Complete years Years 11
Incomplete years Years 0.0

Assumptions - Input

Revenue Assumptions

Revenue from Room Department

Number of Keys No.
No of days in a year No.
Occupancy %
ADR SR

Revenue from Food and Beverage Department % of Room Revenue

Other income % of Room Revenue

Operating Cost Assumptions

DEPARTMENTAL EXPENSES % of Total Revenue

Direct Cost - Rooms % of Room Revenue
Direct Cost - F&B % of F&B Revenue
Direct Cost - Other % of Other Income

UNDISTRIBUTED OPERATING EXPENSES

Capex Assumptions

Land & Building Leased

Total Land Acquistion Sqm 12,000
Covered Area % of Total Land 70.00%
Total Covered Area Sqm 8,400
Number of Floors including Ground Floor No. 15.0
Build Up Area(BUA) - Building Sqm 126,000
No of Parking Floors No. 2
BUA- Parking and other Infrastructure Sqm 16,800
Total BUA Sqm 142,800

Per Key Build Up Area (Average) Sqm 100

Per Key Net Room Area (Average) Sqm 45

No of Keys No. 1260

Land Leased
Acquistion cost (Charged on Land Area) SR per sqm 30,000
Infrastructure cost ( Charged on Land Area) SR per sqm 2,865
Construction Cost (CC) - Building BUA SR per sqm 9,000
Construction Cost (CC) - Parking BUA SR per sqm 3,200

Project Soft Cost % of CC 8.00%

Project Contigency Cost % of (CC + Soft Cost) 5.00%

Interest During Construction (IDC)

Total Capex

Land Leased (in case) % of Land price 5.00%

Growth factor % 0.00%
Growth rates % 1.00

Acquistion Cost - Land % 0.00%

Esclation on Infrastructure cost % 0.00%
Esclation on Construction Cost % 0.00%
 Adjusted Growth rate
Acquistion Cost - Land No. 1.00
Esclation on Infrastructure cost No. 1.00
Esclation on Construction Cost No. 1.00

Plant, Property & Equipement

Furniture and Fixtures % of Building

Useful lives
Building 3% 35
Furniture and Fixtures 10% 10

Timing of Outflow
Land % 100%
Building % 0%
Furniture and Fixtures % 100%

Project Financing

Capital Structure to finance the Project Cost

Equity financing % 70.00%
Debt financing % 30.00%

Valuation Assumptions
Cost of Equity (REIT industry)
Risk free rate % 2.09%
Beta (Real Estate in KSA) No. 0.99
Market Return in KSA % 12.00%

Cost of Equity % 11.90%

Alpha Value (Size,Specifc Risk & CRP) % 0.00%
Cost of Equity % 11.90%

Cost of Debt after Zakat % 4.12%

SAIBOR % 2.23%
Spread % 2.00%

Cost of Capital
Cost of Equity % 8.33%
Cost of Debt % 1.24%
WACC % 9.57%

Capitalization Rate (For Terminal Value Payable) % 8.50%

Debt Assumptions

Total loan availed SR 441,607,755

Interest rate % 4.23%
Repayment %
Timing of Cash inflow

Workings

Revenue

Revenue from Room Department SR -

Revenue from Food and Beverage Department SR -
Other income SR -
Total income SR -

Operational Cost

Departmental Expenses
Direct Cost - Rooms SR -
Direct Cost - F&B SR -
Direct Cost - Other SR -
Total Departmental Expenses SR -

Undistributed Operating Expenses SR -

Land Lease Rental SR
Total Undistributed Operating Expenses SR -

Capital Expenditure

Interest During Construction (Estimated) 18,308,680

Land (Leased) 54,000,000 18,000,000

Land (Acquistion Cost) - -
18,000,000
Building
Infrastructure cost 34,380,000 -

Construction Cost - Building 1,134,000,000 -

Construction Cost - Parking and other 53,760,000 -
-
Project Management and Supervision Cost 95,020,800 -
Project Contigency Cost 64,139,040 -
Total Building Cost 1,381,299,840 -
Furniture and Fixtures 18,417,331 -
Total Capex 1,472,025,851 18,000,000

Depreciation during the year

Building 1,381,299,840
Furniture and Fixtures 18,417,331
-
Debt Schedule

Opening balance SR
Loan received during the year 441,607,755 -
Loan repaid during the year SR -
Closing balance SR -

Average Loan outstanding (for markup)

Interest Rate SR -
Finance Cost SR
SR -
Construction Period Operational Period
2021 2022 2023 2024 2025 2026

- - 216,937,130 232,238,692 248,528,069 265,865,786

- - 65,081,139 69,671,608 74,558,421 79,759,736
- - 21,693,713 23,223,869 24,852,807 26,586,579
- - 303,711,981 325,134,169 347,939,296 372,212,100
- - (96,537,023) (103,113,979) (106,867,070) (114,056,422)
- - 207,174,959 222,020,190 241,072,227 258,155,678
- - (124,299,193) (132,156,959) (138,399,057) (147,140,375)
- - 82,875,765 89,863,231 102,673,169 111,015,304
- - (39,695,926) (39,695,926) (39,695,926) (39,695,926)
- - 43,179,839 50,167,304 62,977,243 71,319,377
(8,406,004) (7,472,003) (6,538,003) (5,604,002)
- - 34,773,835 42,695,301 56,439,240 65,715,375
- - (869,346) (1,067,383) (1,410,981) (1,642,884)
- - 33,904,489 41,627,919 55,028,259 64,072,490

68.2% 68.3% 69.3% 69.4%

27.3% 27.6% 29.5% 29.8%
14.2% 15.4% 18.1% 19.2%
11.2% 12.8% 15.8% 17.2%
2.3% 2.8% 3.7% 4.4%

- - 82,875,765 89,863,231 102,673,169 111,015,304

(858,985,690) (576,622,829) (2,302,166) (2,302,166) (2,302,166) (2,302,166)
(858,985,690) (576,622,829) 80,573,599 87,561,064 100,371,003 108,713,137

(858,985,690) (576,622,829) 80,573,599 87,561,064 100,371,003 108,713,137

 - - 82,875,765 89,863,231 102,673,169 111,015,304
(858,985,690) (576,622,829) (2,302,166) (2,302,166) (2,302,166) (2,302,166)
220,803,878 220,803,878 - - - -
- - (44,160,776) (44,160,776) (44,160,776) (44,160,776)
(8,406,004) (7,472,003) (6,538,003) (5,604,002)
(638,181,813) (355,818,952) 28,006,820 35,928,285 49,672,225 58,948,359

(638,181,813) (355,818,952) 28,006,820 35,928,285 49,672,225 58,948,359

(858,985,690) (576,622,829) 80,573,599 87,561,064 100,371,003 108,713,137

(876,985,690) (1,453,608,520) (1,373,034,921) (1,285,473,857) (1,185,102,854) (1,076,389,716)

1 1 1 1 1 1
- - - - - -
(0.02) (1.52) 18.04 15.68 12.81 10.90
- - - - - -

1260 1,260 1,260 1,260

365 365 365 365
62% 65% 68% 71%
767 782 797 812

30% 30% 30% 30%

10% 10% 10% 10%

 32% 32% 31% 31%
35.0% 35.0% 34.0% 34.0%
25.0% 25.0% 24.0% 24.0%
20.0% 19.0% 18.0% 17.0%

35.0% 35.0% 34.5% 34.5%

Leased
Owned

Total Capex Capital Structure

54,000,000
- Debt 30% 436,082,556
34,380,000 Equity 70% 1,017,525,964
1,134,000,000 1,453,608,520
53,760,000 Check -

95,020,800
64,139,040

18,308,680
1,453,608,520

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

0.00% 0.00% 0.00% 2.00% 0.00% 2.00%
1.00 1.00 1.00 1.02 1.02 1.04

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0% 0% 0%
60% 40% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%
50.00% 50.00%

- - 216,937,130 232,238,692 248,528,069 265,865,786

- - 65,081,139 69,671,608 74,558,421 79,759,736
- - 21,693,713 23,223,869 24,852,807 26,586,579
- - 303,711,981 325,134,169 347,939,296 372,212,100

- - 75,927,995 81,283,542 84,499,543 90,394,367

- - 16,270,285 17,417,902 17,894,021 19,142,337
- - 4,338,743 4,412,535 4,473,505 4,519,718
- - 96,537,023 103,113,979 106,867,070 114,056,422

- - 106,299,193 113,796,959 120,039,057 128,413,175

18,000,000 18,360,000 18,360,000 18,727,200
- - 124,299,193 132,156,959 138,399,057 147,140,375

12,205,786 6,102,893

18,000,000 18,000,000
- - - - - -
18,000,000 18,000,000 - - - -

20,628,000 13,752,000 - - - -

680,400,000 453,600,000 - - - -
32,256,000 21,504,000 - - - -
712,656,000 475,104,000 - - - -
57,012,480 38,008,320 - - - -
38,483,424 25,655,616 - - - -
828,779,904 552,519,936 - - - -
 - - 2,302,166 2,302,166 2,302,166 2,302,166
858,985,690 576,622,829 2,302,166 2,302,166 2,302,166 2,302,166

39,465,710 39,465,710 39,465,710 39,465,710

230,217 230,217 230,217 230,217
- - 39,695,926 39,695,926 39,695,926 39,695,926

- 220,803,878 441,607,755 397,446,980 353,286,204 309,125,429

220,803,878 220,803,878 - - - -
- - (44,160,776) (44,160,776) (44,160,776) (44,160,776)
220,803,878 441,607,755 397,446,980 353,286,204 309,125,429 264,964,653

220,803,878 331,205,816 198,723,490 176,643,102 154,562,714 132,482,327

4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
9,340,004 14,010,006 8,406,004 7,472,003 6,538,003 5,604,002
Operational Period
2027 2028 2029 2030

284,315,955 303,946,476 324,829,259 347,040,455

85,294,786 91,183,943 97,448,778 104,112,136
28,431,595 30,394,648 32,482,926 34,704,045
398,042,336 425,525,066 454,760,963 485,856,637
(121,687,229) (125,833,841) (130,256,533) (135,692,818)
276,355,108 299,691,225 324,504,430 350,163,819
(154,061,594) (163,780,266) (169,172,862) (179,816,469)
122,293,513 135,910,959 155,331,568 170,347,350
(39,695,926) (39,695,926) (39,695,926) (39,695,926)
82,597,587 96,215,032 115,635,642 130,651,424
(4,670,002) (3,736,002) (2,802,001) (1,868,001)
77,927,585 92,479,031 112,833,641 128,783,423
(1,948,190) (2,311,976) (2,820,841) (3,219,586)
75,979,396 90,167,055 110,012,800 125,563,837

69.4% 70.4% 71.4% 72.1%

30.7% 31.9% 34.2% 35.1%
20.8% 22.6% 25.4% 26.9%
19.1% 21.2% 24.2% 25.8%
5.2% 6.1% 7.5% 8.5%

122,293,513 135,910,959 155,331,568 170,347,350

(2,302,166) (2,302,166) (2,302,166) (2,302,166)
119,991,347 133,608,792 153,029,402 168,045,183
1,977,002,159
119,991,347 133,608,792 153,029,402 2,145,047,342
122,293,513 135,910,959 155,331,568 170,347,350
(2,302,166) (2,302,166) (2,302,166) (2,302,166)
- - - -
(44,160,776) (44,160,776) (44,160,776) (44,160,776)
(4,670,002) (3,736,002) (2,802,001) (1,868,001)
71,160,570 85,712,015 106,066,625 122,016,407
1,435,487,143
71,160,570 85,712,015 106,066,625 1,557,503,550

119,991,347 133,608,792 153,029,402 168,045,183

(956,398,369) (822,789,577) (669,760,175) (501,714,992)

1 1 1 1
- - - -
8.97 7.16 5.38 3.99
- - - -

1,260 1,260 1,260 1,260

365 365 365 365
75% 78% 82% 87%
827 842 857 872

30% 30% 30% 30%

10% 10% 10% 10%

31% 30% 29% 28%
34.0% 33.0% 32.0% 31.0%
24.0% 23.0% 22.0% 22.0%
16.0% 15.0% 15.0% 15.0%

34.0% 34.0% 33.0% 33.0%

5.00% 5.00% 5.00% 5.00%

0.00% 2.00% 0.00% 2.00%
1.04 1.06 1.06 1.08

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0%
0% 0% 0% 0%
100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%

284,315,955 303,946,476 324,829,259 347,040,455

85,294,786 91,183,943 97,448,778 104,112,136
28,431,595 30,394,648 32,482,926 34,704,045
398,042,336 425,525,066 454,760,963 485,856,637

96,667,425 100,302,337 103,945,363 107,582,541

20,470,749 20,972,307 21,438,731 22,904,670
4,549,055 4,559,197 4,872,439 5,205,607
121,687,229 125,833,841 130,256,533 135,692,818

135,334,394 144,678,522 150,071,118 160,332,690

18,727,200 19,101,744 19,101,744 19,483,779
154,061,594 163,780,266 169,172,862 179,816,469

- - - -
- - - -

- - - -

- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
 2,302,166 2,302,166 2,302,166 2,302,166
2,302,166 2,302,166 2,302,166 2,302,166

39,465,710 39,465,710 39,465,710 39,465,710

230,217 230,217 230,217 230,217
39,695,926 39,695,926 39,695,926 39,695,926

264,964,653 220,803,878 176,643,102 132,482,327

- - - -
(44,160,776) (44,160,776) (44,160,776) (44,160,776)
220,803,878 176,643,102 132,482,327 88,321,551

110,401,939 88,321,551 66,241,163 44,160,776

4.2% 4.2% 4.2% 4.2%
4,670,002 3,736,002 2,802,001 1,868,001
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject : Financial Model - 4 Star Hotel - Makkah

Construction Peri
2020

Income Statement

Room rental income SR -

F&B income SR -
Other income SR -
Total revenue SR -
Total Department Expenses SR -
Gross profit SR -
Total Undistributed Operating Expenses SR -
EBITDA (Operating Profit) SR -
Depreciation SR -
EBIT SR -
Finance Cost SR
Net profit before Zakat SR -
Provision for Zakat 2.50% -
Net profit after tax SR -

GP Margin 69.8%
EBITDA Margin 30.0%
EBIT Margin 18.6%
NP Margin 16.6%
ROI 4.2%

Valuation Results

Net present value

Free Cashflow to the firm
Cashflow from operating activities (EBITDA) SR -
CAPEX SR (14,375,000)
Free cash flow SR (14,375,000)
Terminal cash flows SR
Net Cashflow SR (14,375,000)

Net present value SR (85,103,368)

Terminal growth rate % 8.5%
WACC % 9.6%

Project IRR % 8.1%

EIRR % 6.5%

Free Cashflow to the firm

Cashflow from operating activities (EBITDA) SR -
CAPEX SR (14,375,000)
Proceeds of long term borrowing SR -
Principal repayment of borrowing SR -
Interest paid SR
Free cash flow SR (14,375,000)
Terminal cash flows SR
Net Cashflow SR (14,375,000)

EIRR % 6.5%

Pay back period

Free cash flow SR (14,375,000)
Cumulative Cash flows - Full Investment SR (14,375,000)

1
(1)

Payback period Years 11.0

Complete years Years 11
Incomplete years Years 0.0

Assumptions - Input

Revenue Assumptions

Revenue from Room Department

Number of Keys No.
No of days in a year No.
Occupancy %
ADR SR

Revenue from Food and Beverage Department % of Room Revenue

Other income % of Room Revenue

Operating Cost Assumptions

DEPARTMENTAL EXPENSES % of Total Revenue

Direct Cost - Rooms % of Room Revenue
Direct Cost - F&B % of F&B Revenue
Direct Cost - Other % of Other Income

UNDISTRIBUTED OPERATING EXPENSES

Capex Assumptions

Land & Building Leased

Total Land Acquistion Sqm 11,500
Covered Area % of Total Land 70.00%
Total Covered Area Sqm 8,050
Number of Floors including Ground Floor No. 14
Build Up Area(BUA) - Building Sqm 112,700
No of Parking Floors No. 2
BUA- Parking and other Infrastructure Sqm 16,100
Total BUA Sqm 128,800

Per Key Build Up Area (Average) Sqm 100

Per Key Net Room Area (Average) Sqm 45

No of Keys No. 1127

Land Leased
Acquistion cost (Charged on Land Area) SR per sqm 25,000
Infrastructure cost ( Charged on Land Area) SR per sqm 2,865
Construction Cost (CC) - Building BUA SR per sqm 7,500
Construction Cost (CC) - Parking BUA SR per sqm 3,100

Project Soft Cost % of CC 8.00%

Project Contigency Cost % of (CC + Soft Cost) 5.00%

Interest During Construction (IDC)

Total Capex

Land Leased (in case) % of Land price 5.00%

Growth factor % 0.00%
Growth rates % 1.00

Acquistion Cost - Land % 0.00%

Esclation on Infrastructure cost % 0.00%
Esclation on Construction Cost % 0.00%
 Adjusted Growth rate
Acquistion Cost - Land No. 1.00
Esclation on Infrastructure cost No. 1.00
Esclation on Construction Cost No. 1.00

Plant, Property & Equipement

Furniture and Fixtures % of Building

Useful lives
Building 3% 35
Furniture and Fixtures 10% 10

Timing of Outflow
Land % 100%
Building % 0%
Furniture and Fixtures % 100%

Project Financing

Capital Structure to finance the Project Cost

Equity financing % 70.00%
Debt financing % 30.00%

Valuation Assumptions
Cost of Equity (REIT industry)
Risk free rate % 2.09%
Beta (Real Estate in KSA) No. 0.99
Market Return in KSA % 12.00%

Cost of Equity % 11.90%

Alpha Value (Size,Specifc Risk & CRP) % 0.00%
Cost of Equity % 11.90%

Cost of Debt after Zakat % 4.12%

SAIBOR % 2.23%
Spread % 2.00%

Cost of Capital
Cost of Equity % 8.33%
Cost of Debt % 1.24%
WACC % 9.57%

Capitalization Rate (For Terminal Value Payable) % 8.50%

Debt Assumptions

Total loan availed SR 337,040,022

Interest rate % 4.23%
Repayment %
Timing of Cash inflow

Workings

Revenue

Revenue from Room Department SR -

Revenue from Food and Beverage Department SR -
Other income SR -
Total income SR -

Operational Cost

Departmental Expenses
Direct Cost - Rooms SR -
Direct Cost - F&B SR -
Direct Cost - Other SR -
Total Departmental Expenses SR -

Undistributed Operating Expenses SR -

Land Lease Rental SR
Total Undistributed Operating Expenses SR -

Capital Expenditure

Interest During Construction (Estimated) 18,308,680

Land (Leased) 43,125,000 14,375,000

Land (Acquistion Cost) - -
14,375,000
Building
Infrastructure cost 32,947,500 -

Construction Cost - Building 845,250,000 -

Construction Cost - Parking and other 49,910,000 -
-
Project Management and Supervision Cost 71,612,800 -
Project Contigency Cost 48,338,640 -
Total Building Cost 1,048,058,940 -
Furniture and Fixtures 13,974,119 -
Total Capex 1,123,466,739 14,375,000

Depreciation during the year

Building 1,048,058,940
Furniture and Fixtures 13,974,119
-
Debt Schedule

Opening balance SR
Loan received during the year 337,040,022 -
Loan repaid during the year SR -
Closing balance SR -

Average Loan outstanding (for markup)

Interest Rate SR -
Finance Cost SR
SR -
Construction Period Operational Period
2021 2022 2023 2024 2025 2026

- - 150,525,078 161,264,221 172,665,072 184,765,440

- - 45,157,524 48,379,266 51,799,522 55,429,632
- - 15,052,508 16,126,422 17,266,507 18,476,544
- - 210,735,110 225,769,909 241,731,101 258,671,617
- - (66,983,660) (71,601,314) (74,245,981) (79,264,374)
- - 143,751,450 154,168,595 167,485,120 179,407,243
- - (88,132,288) (93,681,968) (98,059,730) (104,197,458)
- - 55,619,161 60,486,627 69,425,390 75,209,785
- - (30,119,218) (30,119,218) (30,119,218) (30,119,218)
- - 25,499,944 30,367,409 39,306,173 45,090,567
(6,415,557) (5,702,717) (4,989,878) (4,277,038)
- - 19,084,387 24,664,692 34,316,295 40,813,529
- - (477,110) (616,617) (857,907) (1,020,338)
- - 18,607,277 24,048,075 33,458,388 39,793,191

68.2% 68.3% 69.3% 69.4%

26.4% 26.8% 28.7% 29.1%
12.1% 13.5% 16.3% 17.4%
8.8% 10.7% 13.8% 15.4%
1.7% 2.1% 3.0% 3.5%

- - 55,619,161 60,486,627 69,425,390 75,209,785

(655,416,150) (439,701,469) (1,746,765) (1,746,765) (1,746,765) (1,746,765)
(655,416,150) (439,701,469) 53,872,397 58,739,862 67,678,625 73,463,020

(655,416,150) (439,701,469) 53,872,397 58,739,862 67,678,625 73,463,020

 - - 55,619,161 60,486,627 69,425,390 75,209,785
(655,416,150) (439,701,469) (1,746,765) (1,746,765) (1,746,765) (1,746,765)
168,520,011 168,520,011 - - - -
- - (33,704,002) (33,704,002) (33,704,002) (33,704,002)
(6,415,557) (5,702,717) (4,989,878) (4,277,038)
(486,896,140) (271,181,458) 13,752,838 19,333,143 28,984,746 35,481,980

(486,896,140) (271,181,458) 13,752,838 19,333,143 28,984,746 35,481,980

(655,416,150) (439,701,469) 53,872,397 58,739,862 67,678,625 73,463,020

(669,791,150) (1,109,492,620) (1,055,620,223) (996,880,361) (929,201,736) (855,738,716)

1 1 1 1 1 1
- - - - - -
(0.02) (1.52) 20.59 17.97 14.73 12.65
- - - - - -

1127 1,127 1,127 1,127

365 365 365 365
62% 64% 67% 70%
595 610 625 640

30% 30% 30% 30%

10% 10% 10% 10%

 32% 32% 31% 31%
35.0% 35.0% 34.0% 34.0%
25.0% 25.0% 24.0% 24.0%
20.0% 19.0% 18.0% 17.0%

35.0% 35.0% 34.5% 34.5%

Leased
Owned

Total Capex Capital Structure

43,125,000
- Debt 30% 332,847,786
32,947,500 Equity 70% 776,644,834
845,250,000 1,109,492,620
49,910,000 Check -

71,612,800
48,338,640

18,308,680
1,109,492,620

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

0.00% 0.00% 0.00% 2.00% 0.00% 2.00%
1.00 1.00 1.00 1.02 1.02 1.04

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0% 0% 0%
60% 40% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%
50.00% 50.00%

- - 150,525,078 161,264,221 172,665,072 184,765,440

- - 45,157,524 48,379,266 51,799,522 55,429,632
- - 15,052,508 16,126,422 17,266,507 18,476,544
- - 210,735,110 225,769,909 241,731,101 258,671,617

- - 52,683,777 56,442,477 58,706,125 62,820,250

- - 11,289,381 12,094,817 12,431,885 13,303,112
- - 3,010,502 3,064,020 3,107,971 3,141,012
- - 66,983,660 71,601,314 74,245,981 79,264,374

- - 73,757,288 79,019,468 83,397,230 89,241,708

14,375,000 14,662,500 14,662,500 14,955,750
- - 88,132,288 93,681,968 98,059,730 104,197,458

12,205,786 6,102,893

14,375,000 14,375,000
- - - - - -
14,375,000 14,375,000 - - - -

19,768,500 13,179,000 - - - -

507,150,000 338,100,000 - - - -
29,946,000 19,964,000 - - - -
537,096,000 358,064,000 - - - -
42,967,680 28,645,120 - - - -
29,003,184 19,335,456 - - - -
628,835,364 419,223,576 - - - -
 - - 1,746,765 1,746,765 1,746,765 1,746,765
655,416,150 439,701,469 1,746,765 1,746,765 1,746,765 1,746,765

29,944,541 29,944,541 29,944,541 29,944,541

174,676 174,676 174,676 174,676
- - 30,119,218 30,119,218 30,119,218 30,119,218

- 168,520,011 337,040,022 303,336,019 269,632,017 235,928,015

168,520,011 168,520,011 - - - -
- - (33,704,002) (33,704,002) (33,704,002) (33,704,002)
168,520,011 337,040,022 303,336,019 269,632,017 235,928,015 202,224,013

168,520,011 252,780,016 151,668,010 134,816,009 117,964,008 101,112,006

4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
7,128,396 10,692,595 6,415,557 5,702,717 4,989,878 4,277,038
Operational Period
2027 2028 2029 2030

197,605,195 211,226,378 225,673,316 240,992,746

59,281,559 63,367,913 67,701,995 72,297,824
19,760,520 21,122,638 22,567,332 24,099,275
276,647,273 295,716,929 315,942,642 337,389,844
(84,575,023) (87,447,720) (90,495,000) (94,228,163)
192,072,250 208,269,208 225,447,643 243,161,680
(109,015,823) (115,798,621) (119,515,937) (126,898,611)
83,056,427 92,470,588 105,931,706 116,263,069
(30,119,218) (30,119,218) (30,119,218) (30,119,218)
52,937,209 62,351,370 75,812,488 86,143,852
(3,564,198) (2,851,359) (2,138,519) (1,425,679)
49,373,011 59,500,011 73,673,969 84,718,173
(1,234,325) (1,487,500) (1,841,849) (2,117,954)
48,138,686 58,012,511 71,832,120 82,600,218

69.4% 70.4% 71.4% 72.1%

30.0% 31.3% 33.5% 34.5%
19.1% 21.1% 24.0% 25.5%
17.4% 19.6% 22.7% 24.5%
4.3% 5.2% 6.4% 7.4%

83,056,427 92,470,588 105,931,706 116,263,069

(1,746,765) (1,746,765) (1,746,765) (1,746,765)
81,309,662 90,723,823 104,184,941 114,516,305
1,347,250,642
81,309,662 90,723,823 104,184,941 1,461,766,947
 83,056,427 92,470,588 105,931,706 116,263,069
(1,746,765) (1,746,765) (1,746,765) (1,746,765)
- - - -
(33,704,002) (33,704,002) (33,704,002) (33,704,002)
(3,564,198) (2,851,359) (2,138,519) (1,425,679)
44,041,461 54,168,462 68,342,420 79,386,623
933,960,272
44,041,461 54,168,462 68,342,420 1,013,346,895

81,309,662 90,723,823 104,184,941 114,516,305

(774,429,054) (683,705,231) (579,520,291) (465,003,986)

1 1 1 1
- - - -
10.52 8.54 6.56 5.06
- - - -

1,127 1,127 1,127 1,127

365 365 365 365
73% 77% 80% 84%
655 670 685 700

30% 30% 30% 30%

10% 10% 10% 10%

31% 30% 29% 28%
34.0% 33.0% 32.0% 31.0%
24.0% 23.0% 22.0% 22.0%
16.0% 15.0% 15.0% 15.0%

34.0% 34.0% 33.0% 33.0%

5.00% 5.00% 5.00% 5.00%

0.00% 2.00% 0.00% 2.00%
1.04 1.06 1.06 1.08

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0%
0% 0% 0% 0%
100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%

197,605,195 211,226,378 225,673,316 240,992,746

59,281,559 63,367,913 67,701,995 72,297,824
19,760,520 21,122,638 22,567,332 24,099,275
276,647,273 295,716,929 315,942,642 337,389,844

67,185,766 69,704,705 72,215,461 74,707,751

14,227,574 14,574,620 14,894,439 15,905,521
3,161,683 3,168,396 3,385,100 3,614,891
84,575,023 87,447,720 90,495,000 94,228,163

94,060,073 100,543,756 104,261,072 111,338,648

14,955,750 15,254,865 15,254,865 15,559,962
109,015,823 115,798,621 119,515,937 126,898,611

- - - -
- - - -

- - - -

- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
 1,746,765 1,746,765 1,746,765 1,746,765
1,746,765 1,746,765 1,746,765 1,746,765

29,944,541 29,944,541 29,944,541 29,944,541

174,676 174,676 174,676 174,676
30,119,218 30,119,218 30,119,218 30,119,218

202,224,013 168,520,011 134,816,009 101,112,006

- - - -
(33,704,002) (33,704,002) (33,704,002) (33,704,002)
168,520,011 134,816,009 101,112,006 67,408,004

84,260,005 67,408,004 50,556,003 33,704,002

4.2% 4.2% 4.2% 4.2%
3,564,198 2,851,359 2,138,519 1,425,679
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject : Financial Model - 3 Star Hotel- Makkah

Construction Peri
2020

Income Statement

Room rental income SR -

F&B income SR -
Other income SR -
Total revenue SR -
Total Department Expenses SR -
Gross profit SR -
Total Undistributed Operating Expenses SR -
EBITDA (Operating Profit) SR -
Depreciation SR -
EBIT SR -
Finance Cost SR
Net profit before Zakat SR -
Provision for Zakat 2.50% -
Net profit after tax SR -

GP Margin 69.8%
EBITDA Margin 32.3%
EBIT Margin 26.5%
NP Margin 25.0%
ROI 11.6%

Valuation Results

Net present value

Free Cashflow to the firm
Cashflow from operating activities (EBITDA) SR -
CAPEX SR (7,500,000)
Free cash flow SR (7,500,000)
Terminal cash flows SR
Net Cashflow SR (7,500,000)

Net present value SR 328,283,851

Terminal growth rate % 8.5%
WACC % 9.6%

Project IRR % 19.2%

EIRR % 21.4%

Free Cashflow to the firm

Cashflow from operating activities (EBITDA) SR -
CAPEX SR (7,500,000)
Proceeds of long term borrowing SR -
Principal repayment of borrowing SR -
Interest paid SR
Free cash flow SR (7,500,000)
Terminal cash flows SR
Net Cashflow SR (7,500,000)

EIRR % 21.4%

Pay back period

Free cash flow SR (7,500,000)
Cumulative Cash flows - Full Investment SR (7,500,000)

1
(1)

Payback period Years 10.0

Complete years Years 10
Incomplete years Years 0.0

Assumptions - Input

Revenue Assumptions

Revenue from Room Department

Number of Keys No.
No of days in a year No.
Occupancy %
ADR SR

Revenue from Food and Beverage Department % of Room Revenue

Other income % of Room Revenue

Operating Cost Assumptions

DEPARTMENTAL EXPENSES % of Total Revenue

Direct Cost - Rooms % of Room Revenue
Direct Cost - F&B % of F&B Revenue
Direct Cost - Other % of Other Income

UNDISTRIBUTED OPERATING EXPENSES

Capex Assumptions

Land & Building Leased

Total Land Acquistion Sqm 7,500
Covered Area % of Total Land 70.00%
Total Covered Area Sqm 5,250
Number of Floors including Ground Floor No. 12
Build Up Area(BUA) - Building Sqm 63,000
No of Parking Floors No. 2
BUA- Parking and other Infrastructure Sqm 10,500
Total BUA Sqm 73,500

Per Key Build Up Area (Average) Sqm 60

Per Key Net Room Area (Average) Sqm 45

No of Keys No. 1050

Land Leased
Acquistion cost (Charged on Land Area) SR per sqm 20,000
Infrastructure cost ( Charged on Land Area) SR per sqm 2,865
Construction Cost (CC) - Building BUA SR per sqm 5,700
Construction Cost (CC) - Parking BUA SR per sqm 3,000

Project Soft Cost % of CC 8.00%

Project Contigency Cost % of (CC + Soft Cost) 5.00%

Interest During Construction (IDC)

Total Capex

Land Leased (in case) % of Land price 5.00%

Growth factor % 0.00%
Growth rates % 1.00

Acquistion Cost - Land % 0.00%

Esclation on Infrastructure cost % 0.00%
Esclation on Construction Cost % 0.00%
 Adjusted Growth rate
Acquistion Cost - Land No. 1.00
Esclation on Infrastructure cost No. 1.00
Esclation on Construction Cost No. 1.00

Plant, Property & Equipement

Furniture and Fixtures % of Building

Useful lives
Building 3% 35
Furniture and Fixtures 10% 10

Timing of Outflow
Land % 100%
Building % 0%
Furniture and Fixtures % 100%

Project Financing

Capital Structure to finance the Project Cost

Equity financing % 70.00%
Debt financing % 30.00%

Valuation Assumptions
Cost of Equity (REIT industry)
Risk free rate % 2.09%
Beta (Real Estate in KSA) No. 0.99
Market Return in KSA % 12.00%

Cost of Equity % 11.90%

Alpha Value (Size,Specifc Risk & CRP) % 0.00%
Cost of Equity % 11.90%

Cost of Debt after Zakat % 4.12%

SAIBOR % 2.23%
Spread % 2.00%

Cost of Capital
Cost of Equity % 8.33%
Cost of Debt % 1.24%
WACC % 9.57%

Capitalization Rate (For Terminal Value Payable) % 8.50%

Debt Assumptions

Total loan availed SR 153,428,685

Interest rate % 4.23%
Repayment %
Timing of Cash inflow

Workings

Revenue

Revenue from Room Department SR -

Revenue from Food and Beverage Department SR -
Other income SR -
Total income SR -

Operational Cost

Departmental Expenses
Direct Cost - Rooms SR -
Direct Cost - F&B SR -
Direct Cost - Other SR -
Total Departmental Expenses SR -

Undistributed Operating Expenses SR -

Land Lease Rental SR
Total Undistributed Operating Expenses SR -

Capital Expenditure

Interest During Construction (Estimated) 18,308,680

Land (Leased) 22,500,000 7,500,000

Land (Acquistion Cost) - -
7,500,000
Building
Infrastructure cost 21,487,500 -

Construction Cost - Building 359,100,000 -

Construction Cost - Parking and other 31,500,000 -
-
Project Management and Supervision Cost 31,248,000 -
Project Contigency Cost 21,092,400 -
Total Building Cost 464,427,900 -
Furniture and Fixtures 6,192,372 -
Total Capex 511,428,952 7,500,000

Depreciation during the year

Building 464,427,900
Furniture and Fixtures 6,192,372
-
Debt Schedule

Opening balance SR
Loan received during the year 153,428,685 -
Loan repaid during the year SR -
Closing balance SR -

Average Loan outstanding (for markup)

Interest Rate SR -
Finance Cost SR
SR -
Construction Period Operational Period
2021 2022 2023 2024 2025 2026

- - 134,631,126 143,039,915 151,832,063 161,023,003

- - 40,389,338 42,911,974 45,549,619 48,306,901
- - 13,463,113 14,303,991 15,183,206 16,102,300
- - 188,483,576 200,255,880 212,564,888 225,432,205
- - (59,910,851) (63,509,722) (65,287,787) (69,078,868)
- - 128,572,725 136,746,158 147,277,101 156,353,336
- - (73,469,252) (77,739,558) (80,984,886) (85,577,111)
- - 55,103,474 59,006,600 66,292,214 70,776,226
- - (13,346,773) (13,346,773) (13,346,773) (13,346,773)
- - 41,756,700 45,659,827 52,945,441 57,429,452
(2,920,515) (2,596,013) (2,271,512) (1,947,010)
- - 38,836,185 43,063,814 50,673,930 55,482,442
- - (970,905) (1,076,595) (1,266,848) (1,387,061)
- - 37,865,281 41,987,218 49,407,081 54,095,381

68.2% 68.3% 69.3% 69.4%

29.2% 29.5% 31.2% 31.4%
22.2% 22.8% 24.9% 25.5%
20.1% 21.0% 23.2% 24.0%
7.4% 8.2% 9.7% 10.6%

- - 55,103,474 59,006,600 66,292,214 70,776,226

(298,362,526) (199,374,053) (774,047) (774,047) (774,047) (774,047)
(298,362,526) (199,374,053) 54,329,427 58,232,554 65,518,168 70,002,179

(298,362,526) (199,374,053) 54,329,427 58,232,554 65,518,168 70,002,179

 - - 55,103,474 59,006,600 66,292,214 70,776,226
(298,362,526) (199,374,053) (774,047) (774,047) (774,047) (774,047)
76,714,343 76,714,343 - - - -
- - (15,342,869) (15,342,869) (15,342,869) (15,342,869)
(2,920,515) (2,596,013) (2,271,512) (1,947,010)
(221,648,184) (122,659,710) 36,066,044 40,293,672 47,903,788 52,712,301

(221,648,184) (122,659,710) 36,066,044 40,293,672 47,903,788 52,712,301

(298,362,526) (199,374,053) 54,329,427 58,232,554 65,518,168 70,002,179

(305,862,526) (505,236,580) (450,907,153) (392,674,599) (327,156,431) (257,154,252)

1 1 1 1 1 1
- - - - - -
(0.03) (1.53) 9.30 7.74 5.99 4.67
- - - - - -

1050 1,050 1,050 1,050

365 365 365 365
74% 76% 78% 81%
476 491 506 521

30% 30% 30% 30%

10% 10% 10% 10%

 32% 32% 31% 31%
35.0% 35.0% 34.0% 34.0%
25.0% 25.0% 24.0% 24.0%
20.0% 19.0% 18.0% 17.0%

35.0% 35.0% 34.5% 34.5%

Leased
Owned

Total Capex Capital Structure

22,500,000
- Debt 30% 151,570,974
21,487,500 Equity 70% 353,665,606
359,100,000 505,236,580
31,500,000 Check -

31,248,000
21,092,400

18,308,680
505,236,580

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

0.00% 0.00% 0.00% 2.00% 0.00% 2.00%
1.00 1.00 1.00 1.02 1.02 1.04

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0% 0% 0%
60% 40% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%
50.00% 50.00%

- - 134,631,126 143,039,915 151,832,063 161,023,003

- - 40,389,338 42,911,974 45,549,619 48,306,901
- - 13,463,113 14,303,991 15,183,206 16,102,300
- - 188,483,576 200,255,880 212,564,888 225,432,205

- - 47,120,894 50,063,970 51,622,901 54,747,821

- - 10,097,334 10,727,994 10,931,909 11,593,656
- - 2,692,623 2,717,758 2,732,977 2,737,391
- - 59,910,851 63,509,722 65,287,787 69,078,868

- - 65,969,252 70,089,558 73,334,886 77,774,111

7,500,000 7,650,000 7,650,000 7,803,000
- - 73,469,252 77,739,558 80,984,886 85,577,111

12,205,786 6,102,893

7,500,000 7,500,000
- - - - - -
7,500,000 7,500,000 - - - -

12,892,500 8,595,000 - - - -

215,460,000 143,640,000 - - - -
18,900,000 12,600,000 - - - -
234,360,000 156,240,000 - - - -
18,748,800 12,499,200 - - - -
12,655,440 8,436,960 - - - -
278,656,740 185,771,160 - - - -
 - - 774,047 774,047 774,047 774,047
298,362,526 199,374,053 774,047 774,047 774,047 774,047

13,269,369 13,269,369 13,269,369 13,269,369

77,405 77,405 77,405 77,405
- - 13,346,773 13,346,773 13,346,773 13,346,773

- 76,714,343 153,428,685 138,085,817 122,742,948 107,400,080

76,714,343 76,714,343 - - - -
- - (15,342,869) (15,342,869) (15,342,869) (15,342,869)
76,714,343 153,428,685 138,085,817 122,742,948 107,400,080 92,057,211

76,714,343 115,071,514 69,042,908 61,371,474 53,700,040 46,028,606

4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
3,245,017 4,867,525 2,920,515 2,596,013 2,271,512 1,947,010
Operational Period
2027 2028 2029 2030

170,628,752 180,665,924 191,151,762 202,104,150

51,188,626 54,199,777 57,345,528 60,631,245
17,062,875 18,066,592 19,115,176 20,210,415
238,880,253 252,932,294 267,612,466 282,945,810
(73,029,106) (74,795,693) (76,651,856) (79,022,723)
165,851,147 178,136,602 190,960,610 203,923,087
(89,022,286) (93,956,040) (96,271,174) (101,490,358)
76,828,861 84,180,561 94,689,436 102,432,729
(13,346,773) (13,346,773) (13,346,773) (13,346,773)
63,482,088 70,833,788 81,342,663 89,085,955
(1,622,508) (1,298,007) (973,505) (649,003)
61,859,579 69,535,782 80,369,158 88,436,952
(1,546,489) (1,738,395) (2,009,229) (2,210,924)
60,313,090 67,797,387 78,359,929 86,226,028

69.4% 70.4% 71.4% 72.1%

32.2% 33.3% 35.4% 36.2%
26.6% 28.0% 30.4% 31.5%
25.2% 26.8% 29.3% 30.5%
11.8% 13.3% 15.3% 16.9%

76,828,861 84,180,561 94,689,436 102,432,729

(774,047) (774,047) (774,047) (774,047)
76,054,814 83,406,515 93,915,389 101,658,682
1,195,984,496
76,054,814 83,406,515 93,915,389 1,297,643,178
 76,828,861 84,180,561 94,689,436 102,432,729
(774,047) (774,047) (774,047) (774,047)
- - - -
(15,342,869) (15,342,869) (15,342,869) (15,342,869)
(1,622,508) (1,298,007) (973,505) (649,003)
59,089,438 66,765,640 77,599,016 85,666,810
1,007,844,827
59,089,438 66,765,640 77,599,016 1,093,511,637

76,054,814 83,406,515 93,915,389 101,658,682

(181,099,437) (97,692,922) (3,777,533) 97,881,149

1 1 1 -
- - - 1
3.38 2.17 1.04 0.04
- - - 0.04

1,050 1,050 1,050 1,050

365 365 365 365
83% 86% 88% 91%
536 551 566 581

30% 30% 30% 30%

10% 10% 10% 10%

31% 30% 29% 28%
34.0% 33.0% 32.0% 31.0%
24.0% 23.0% 22.0% 22.0%
16.0% 15.0% 15.0% 15.0%

34.0% 34.0% 33.0% 33.0%

5.00% 5.00% 5.00% 5.00%

0.00% 2.00% 0.00% 2.00%
1.04 1.06 1.06 1.08

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0%
0% 0% 0% 0%
100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%

170,628,752 180,665,924 191,151,762 202,104,150

51,188,626 54,199,777 57,345,528 60,631,245
17,062,875 18,066,592 19,115,176 20,210,415
238,880,253 252,932,294 267,612,466 282,945,810

58,013,776 59,619,755 61,168,564 62,652,286

12,285,270 12,465,949 12,616,016 13,338,874
2,730,060 2,709,989 2,867,276 3,031,562
73,029,106 74,795,693 76,651,856 79,022,723

81,219,286 85,996,980 88,312,114 93,372,117

7,803,000 7,959,060 7,959,060 8,118,241
89,022,286 93,956,040 96,271,174 101,490,358

- - - -
- - - -

- - - -

- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
 774,047 774,047 774,047 774,047
774,047 774,047 774,047 774,047

13,269,369 13,269,369 13,269,369 13,269,369

77,405 77,405 77,405 77,405
13,346,773 13,346,773 13,346,773 13,346,773

92,057,211 76,714,343 61,371,474 46,028,606

- - - -
(15,342,869) (15,342,869) (15,342,869) (15,342,869)
76,714,343 61,371,474 46,028,606 30,685,737

38,357,171 30,685,737 23,014,303 15,342,869

4.2% 4.2% 4.2% 4.2%
1,622,508 1,298,007 973,505 649,003
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject : Financial Model - 2 Star Hotel - Makkah

Construction Peri
2020

Income Statement

Room rental income SR -

F&B income SR -
Other income SR -
Total revenue SR -
Total Department Expenses SR -
Gross profit SR -
Total Undistributed Operating Expenses SR -
EBITDA (Operating Profit) SR -
Depreciation SR -
EBIT SR -
Finance Cost SR
Net profit before Zakat SR -
Provision for Zakat 2.50% -
Net profit after tax SR -

GP Margin 69.8%
EBITDA Margin 31.8%
EBIT Margin 22.6%
NP Margin 20.8%
ROI 6.2%

Valuation Results

Net present value

Free Cashflow to the firm
Cashflow from operating activities (EBITDA) SR -
CAPEX SR (5,000,000)
Free cash flow SR (5,000,000)
Terminal cash flows SR
Net Cashflow SR (5,000,000)

Net present value SR 36,040,195

Terminal growth rate % 8.5%
WACC % 9.6%

Project IRR % 11.0%

EIRR % 10.6%

Free Cashflow to the firm

Cashflow from operating activities (EBITDA) SR -
CAPEX SR (5,000,000)
Proceeds of long term borrowing SR -
Principal repayment of borrowing SR -
Interest paid SR
Free cash flow SR (5,000,000)
Terminal cash flows SR
Net Cashflow SR (5,000,000)

EIRR % 10.6%

Pay back period

Free cash flow SR (5,000,000)
Cumulative Cash flows - Full Investment SR (5,000,000)

1
(1)

Payback period Years 11.0

Complete years Years 11
Incomplete years Years 0.0

Assumptions - Input

Revenue Assumptions

Revenue from Room Department

Number of Keys No.
No of days in a year No.
Occupancy %
ADR SR

Revenue from Food and Beverage Department % of Room Revenue

Other income % of Room Revenue

Operating Cost Assumptions

DEPARTMENTAL EXPENSES % of Total Revenue

Direct Cost - Rooms % of Room Revenue
Direct Cost - F&B % of F&B Revenue
Direct Cost - Other % of Other Income

UNDISTRIBUTED OPERATING EXPENSES

Capex Assumptions

Land & Building Leased

Total Land Acquistion Sqm 10,000
Covered Area % of Total Land 70.00%
Total Covered Area Sqm 7,000
Number of Floors including Ground Floor No. 10
Build Up Area(BUA) - Building Sqm 70,000
No of Parking Floors No. 2
BUA- Parking and other Infrastructure Sqm 14,000
Total BUA Sqm 84,000

Per Key Build Up Area (Average) Sqm 100

Per Key Net Room Area (Average) Sqm 45

No of Keys No. 700

Land Leased
Acquistion cost (Charged on Land Area) SR per sqm 10,000
Infrastructure cost ( Charged on Land Area) SR per sqm 2,865
Construction Cost (CC) - Building BUA SR per sqm 4,500
Construction Cost (CC) - Parking BUA SR per sqm 2,900

Project Soft Cost % of CC 8.00%

Project Contigency Cost % of (CC + Soft Cost) 5.00%

Interest During Construction (IDC)

Total Capex

Land Leased (in case) % of Land price 5.00%

Growth factor % 0.00%
Growth rates % 1.00

Acquistion Cost - Land % 0.00%

Esclation on Infrastructure cost % 0.00%
Esclation on Construction Cost % 0.00%
 Adjusted Growth rate
Acquistion Cost - Land No. 1.00
Esclation on Infrastructure cost No. 1.00
Esclation on Construction Cost No. 1.00

Plant, Property & Equipement

Furniture and Fixtures % of Building

Useful lives
Building 3% 35
Furniture and Fixtures 10% 10

Timing of Outflow
Land % 100%
Building % 0%
Furniture and Fixtures % 100%

Project Financing

Capital Structure to finance the Project Cost

Equity financing % 70.00%
Debt financing % 30.00%

Valuation Assumptions
Cost of Equity (REIT industry)
Risk free rate % 2.09%
Beta (Real Estate in KSA) No. 0.99
Market Return in KSA % 12.00%

Cost of Equity % 11.90%

Alpha Value (Size,Specifc Risk & CRP) % 0.00%
Cost of Equity % 11.90%

Cost of Debt after Zakat % 4.12%

SAIBOR % 2.23%
Spread % 2.00%

Cost of Capital
Cost of Equity % 8.33%
Cost of Debt % 1.24%
WACC % 9.57%

Capitalization Rate (For Terminal Value Payable) % 8.50%

Debt Assumptions

Total loan availed SR 141,290,325

Interest rate % 4.23%
Repayment %
Timing of Cash inflow

Workings

Revenue

Revenue from Room Department SR -

Revenue from Food and Beverage Department SR -
Other income SR -
Total income SR -

Operational Cost

Departmental Expenses
Direct Cost - Rooms SR -
Direct Cost - F&B SR -
Direct Cost - Other SR -
Total Departmental Expenses SR -

Undistributed Operating Expenses SR -

Land Lease Rental SR
Total Undistributed Operating Expenses SR -

Capital Expenditure

Interest During Construction (Estimated) 18,308,680

Land (Leased) 15,000,000 5,000,000

Land (Acquistion Cost) - -
5,000,000
Building
Infrastructure cost 28,650,000 -

Construction Cost - Building 315,000,000 -

Construction Cost - Parking and other 40,600,000 -
-
Project Management and Supervision Cost 28,448,000 -
Project Contigency Cost 19,202,400 -
Total Building Cost 431,900,400 -
Furniture and Fixtures 5,758,672 -
Total Capex 470,967,752 5,000,000

Depreciation during the year

Building 431,900,400
Furniture and Fixtures 5,758,672
-
Debt Schedule

Opening balance SR
Loan received during the year 141,290,325 -
Loan repaid during the year SR -
Closing balance SR -

Average Loan outstanding (for markup)

Interest Rate SR -
Finance Cost SR
SR -
Construction Period Operational Period
2021 2022 2023 2024 2025 2026

- - 82,573,757 86,684,664 90,869,532 95,129,428

- - 24,772,127 26,005,399 27,260,859 28,538,828
- - 8,257,376 8,668,466 9,086,953 9,512,943
- - 115,603,260 121,358,530 127,217,344 133,181,199
- - (36,745,322) (38,487,991) (39,073,899) (40,810,525)
- - 78,857,938 82,870,539 88,143,446 92,370,675
- - (45,461,141) (47,575,485) (48,989,984) (51,149,514)
- - 33,396,797 35,295,053 39,153,462 41,221,161
- - (12,411,995) (12,411,995) (12,411,995) (12,411,995)
- - 20,984,802 22,883,059 26,741,467 28,809,166
(2,689,461) (2,390,632) (2,091,803) (1,792,974)
- - 18,295,341 20,492,426 24,649,664 27,016,192
- - (457,384) (512,311) (616,242) (675,405)
- - 17,837,957 19,980,116 24,033,422 26,340,787

68.2% 68.3% 69.3% 69.4%

28.9% 29.1% 30.8% 31.0%
18.2% 18.9% 21.0% 21.6%
15.4% 16.5% 18.9% 19.8%
3.8% 4.2% 5.1% 5.6%

- - 33,396,797 35,295,053 39,153,462 41,221,161

(276,346,026) (183,863,053) (719,834) (719,834) (719,834) (719,834)
(276,346,026) (183,863,053) 32,676,963 34,575,219 38,433,628 40,501,327

(276,346,026) (183,863,053) 32,676,963 34,575,219 38,433,628 40,501,327

 - - 33,396,797 35,295,053 39,153,462 41,221,161
(276,346,026) (183,863,053) (719,834) (719,834) (719,834) (719,834)
70,645,163 70,645,163 - - - -
- - (14,129,033) (14,129,033) (14,129,033) (14,129,033)
(2,689,461) (2,390,632) (2,091,803) (1,792,974)
(205,700,864) (113,217,890) 15,858,469 18,055,555 22,212,792 24,579,320

(205,700,864) (113,217,890) 15,858,469 18,055,555 22,212,792 24,579,320

(276,346,026) (183,863,053) 32,676,963 34,575,219 38,433,628 40,501,327

(281,346,026) (465,209,080) (432,532,116) (397,956,897) (359,523,269) (319,021,942)

1 1 1 1 1 1
- - - - - -
(0.02) (1.53) 14.24 12.51 10.35 8.88
- - - - - -

700 700 700 700

365 365 365 365
85% 86% 87% 87%
381 396 411 426

30% 30% 30% 30%

10% 10% 10% 10%

 32% 32% 31% 31%
35.0% 35.0% 34.0% 34.0%
25.0% 25.0% 24.0% 24.0%
20.0% 19.0% 18.0% 17.0%

35.0% 35.0% 34.5% 34.5%

Leased
Owned

Total Capex Capital Structure

15,000,000
- Debt 30% 139,562,724
28,650,000 Equity 70% 325,646,356
315,000,000 465,209,080
40,600,000 Check -

28,448,000
19,202,400

18,308,680
465,209,080

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

0.00% 0.00% 0.00% 2.00% 0.00% 2.00%
1.00 1.00 1.00 1.02 1.02 1.04

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0% 0% 0%
60% 40% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%
50.00% 50.00%

- - 82,573,757 86,684,664 90,869,532 95,129,428

- - 24,772,127 26,005,399 27,260,859 28,538,828
- - 8,257,376 8,668,466 9,086,953 9,512,943
- - 115,603,260 121,358,530 127,217,344 133,181,199

- - 28,900,815 30,339,632 30,895,641 32,344,005

- - 6,193,032 6,501,350 6,542,606 6,849,319
- - 1,651,475 1,647,009 1,635,652 1,617,200
- - 36,745,322 38,487,991 39,073,899 40,810,525

- - 40,461,141 42,475,485 43,889,984 45,947,514

5,000,000 5,100,000 5,100,000 5,202,000
- - 45,461,141 47,575,485 48,989,984 51,149,514

12,205,786 6,102,893

5,000,000 5,000,000
- - - - - -
5,000,000 5,000,000 - - - -

17,190,000 11,460,000 - - - -

189,000,000 126,000,000 - - - -
24,360,000 16,240,000 - - - -
213,360,000 142,240,000 - - - -
17,068,800 11,379,200 - - - -
11,521,440 7,680,960 - - - -
259,140,240 172,760,160 - - - -
 - - 719,834 719,834 719,834 719,834
276,346,026 183,863,053 719,834 719,834 719,834 719,834

12,340,011 12,340,011 12,340,011 12,340,011

71,983 71,983 71,983 71,983
- - 12,411,995 12,411,995 12,411,995 12,411,995

- 70,645,163 141,290,325 127,161,293 113,032,260 98,903,228

70,645,163 70,645,163 - - - -
- - (14,129,033) (14,129,033) (14,129,033) (14,129,033)
70,645,163 141,290,325 127,161,293 113,032,260 98,903,228 84,774,195

70,645,163 105,967,744 63,580,646 56,516,130 49,451,614 42,387,098

4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
2,988,290 4,482,436 2,689,461 2,390,632 2,091,803 1,792,974
Operational Period
2027 2028 2029 2030

99,465,435 103,878,650 108,370,182 112,941,157

29,839,631 31,163,595 32,511,055 33,882,347
9,946,544 10,387,865 10,837,018 11,294,116
139,251,609 145,430,110 151,718,255 158,117,620
(42,571,206) (43,005,761) (43,456,443) (44,159,993)
96,680,403 102,424,349 108,261,812 113,957,628
(52,547,547) (54,752,277) (55,373,064) (57,590,975)
44,132,856 47,672,071 52,888,748 56,366,652
(12,411,995) (12,411,995) (12,411,995) (12,411,995)
31,720,861 35,260,077 40,476,753 43,954,657
(1,494,145) (1,195,316) (896,487) (597,658)
30,226,716 34,064,760 39,580,266 43,356,999
(755,668) (851,619) (989,507) (1,083,925)
29,471,048 33,213,141 38,590,759 42,273,074

69.4% 70.4% 71.4% 72.1%

31.7% 32.8% 34.9% 35.6%
22.8% 24.2% 26.7% 27.8%
21.2% 22.8% 25.4% 26.7%
6.3% 7.1% 8.2% 9.0%

44,132,856 47,672,071 52,888,748 56,366,652

(719,834) (719,834) (719,834) (719,834)
43,413,022 46,952,237 52,168,914 55,646,818
654,668,450
43,413,022 46,952,237 52,168,914 710,315,268
 44,132,856 47,672,071 52,888,748 56,366,652
(719,834) (719,834) (719,834) (719,834)
- - - -
(14,129,033) (14,129,033) (14,129,033) (14,129,033)
(1,494,145) (1,195,316) (896,487) (597,658)
27,789,844 31,627,889 37,143,394 40,920,128
481,413,266
27,789,844 31,627,889 37,143,394 522,333,394

43,413,022 46,952,237 52,168,914 55,646,818

(275,608,920) (228,656,683) (176,487,769) (120,840,951)

1 1 1 1
- - - -
7.35 5.87 4.38 3.17
- - - -

700 700 700 700

365 365 365 365
88% 89% 90% 91%
441 456 471 486

30% 30% 30% 30%

10% 10% 10% 10%

31% 30% 29% 28%
34.0% 33.0% 32.0% 31.0%
24.0% 23.0% 22.0% 22.0%
16.0% 15.0% 15.0% 15.0%

34.0% 34.0% 33.0% 33.0%

5.00% 5.00% 5.00% 5.00%

0.00% 2.00% 0.00% 2.00%
1.04 1.06 1.06 1.08

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0%
0% 0% 0% 0%
100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%

99,465,435 103,878,650 108,370,182 112,941,157

29,839,631 31,163,595 32,511,055 33,882,347
9,946,544 10,387,865 10,837,018 11,294,116
139,251,609 145,430,110 151,718,255 158,117,620

33,818,248 34,279,954 34,678,458 35,011,759

7,161,511 7,167,627 7,152,432 7,454,116
1,591,447 1,558,180 1,625,553 1,694,117
42,571,206 43,005,761 43,456,443 44,159,993

47,345,547 49,446,237 50,067,024 52,178,815

5,202,000 5,306,040 5,306,040 5,412,161
52,547,547 54,752,277 55,373,064 57,590,975

- - - -
- - - -

- - - -

- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
 719,834 719,834 719,834 719,834
719,834 719,834 719,834 719,834

12,340,011 12,340,011 12,340,011 12,340,011

71,983 71,983 71,983 71,983
12,411,995 12,411,995 12,411,995 12,411,995

84,774,195 70,645,163 56,516,130 42,387,098

- - - -
(14,129,033) (14,129,033) (14,129,033) (14,129,033)
70,645,163 56,516,130 42,387,098 28,258,065

35,322,581 28,258,065 21,193,549 14,129,033

4.2% 4.2% 4.2% 4.2%
1,494,145 1,195,316 896,487 597,658
Project: Business Cases - Renovate and Accommodation
Client: DARP
Subject : Financial Model - 1 Star Hotel - Makkah

Construction Peri
2020

Income Statement

Room rental income SR -

F&B income SR -
Other income SR -
Total revenue SR -
Total Department Expenses SR -
Gross profit SR -
Total Undistributed Operating Expenses SR -
EBITDA (Operating Profit) SR -
Depreciation SR -
EBIT SR -
Finance Cost SR
Net profit before Zakat SR -
Provision for Zakat 2.50% -
Net profit after tax SR -

GP Margin 69.8%
EBITDA Margin 31.6%
EBIT Margin 21.7%
NP Margin 19.8%
ROI 5.4%

Valuation Results

Net present value

Free Cashflow to the firm
Cashflow from operating activities (EBITDA) SR -
CAPEX SR (3,600,000)
Free cash flow SR (3,600,000)
Terminal cash flows SR
Net Cashflow SR (3,600,000)

Net present value SR 47,790

Terminal growth rate % 8.5%
WACC % 9.6%

Project IRR % 9.6%

EIRR % 8.6%

Free Cashflow to the firm

Cashflow from operating activities (EBITDA) SR -
CAPEX SR (3,600,000)
Proceeds of long term borrowing SR -
Principal repayment of borrowing SR -
Interest paid SR
Free cash flow SR (3,600,000)
Terminal cash flows SR
Net Cashflow SR (3,600,000)

EIRR % 8.6%

Pay back period

Free cash flow SR (3,600,000)
Cumulative Cash flows - Full Investment SR (3,600,000)

1
(1)

Payback period Years 11.0

Complete years Years 11
Incomplete years Years 0.0

Assumptions - Input

Revenue Assumptions

Revenue from Room Department

Number of Keys No.
No of days in a year No.
Occupancy %
ADR SR

Revenue from Food and Beverage Department % of Room Revenue

Other income % of Room Revenue

Operating Cost Assumptions

DEPARTMENTAL EXPENSES % of Total Revenue

Direct Cost - Rooms % of Room Revenue
Direct Cost - F&B % of F&B Revenue
Direct Cost - Other % of Other Income

UNDISTRIBUTED OPERATING EXPENSES

Capex Assumptions

Land & Building Leased

Total Land Acquistion Sqm 8,000
Covered Area % of Total Land 70.00%
Total Covered Area Sqm 5,600
Number of Floors including Ground Floor No. 10
Build Up Area(BUA) - Building Sqm 56,000
No of Parking Floors No. 2
BUA- Parking and other Infrastructure Sqm 11,200
Total BUA Sqm 67,200

Per Key Build Up Area (Average) Sqm 100

Per Key Net Room Area (Average) Sqm 45

No of Keys No. 560

Land Leased
Acquistion cost (Charged on Land Area) SR per sqm 9,000
Infrastructure cost ( Charged on Land Area) SR per sqm 2,865
Construction Cost (CC) - Building BUA SR per sqm 4,000
Construction Cost (CC) - Parking BUA SR per sqm 2,800

Project Soft Cost % of CC 8.00%

Project Contigency Cost % of (CC + Soft Cost) 5.00%

Interest During Construction (IDC)

Total Capex

Land Leased (in case) % of Land price 5.00%

Growth factor % 0.00%
Growth rates % 1.00

Acquistion Cost - Land % 0.00%

Esclation on Infrastructure cost % 0.00%
Esclation on Construction Cost % 0.00%
 Adjusted Growth rate
Acquistion Cost - Land No. 1.00
Esclation on Infrastructure cost No. 1.00
Esclation on Construction Cost No. 1.00

Plant, Property & Equipement

Furniture and Fixtures % of Building

Useful lives
Building 3% 35
Furniture and Fixtures 10% 10

Timing of Outflow
Land % 100%
Building % 0%
Furniture and Fixtures % 100%

Project Financing

Capital Structure to finance the Project Cost

Equity financing % 70.00%
Debt financing % 30.00%

Valuation Assumptions
Cost of Equity (REIT industry)
Risk free rate % 2.09%
Beta (Real Estate in KSA) No. 0.99
Market Return in KSA % 12.00%

Cost of Equity % 11.90%

Alpha Value (Size,Specifc Risk & CRP) % 0.00%
Cost of Equity % 11.90%

Cost of Debt after Zakat % 4.12%

SAIBOR % 2.23%
Spread % 2.00%

Cost of Capital
Cost of Equity % 8.33%
Cost of Debt % 1.24%
WACC % 9.57%

Capitalization Rate (For Terminal Value Payable) % 8.50%

Debt Assumptions

Total loan availed SR 103,732,069

Interest rate % 4.23%
Repayment %
Timing of Cash inflow

Workings

Revenue

Revenue from Room Department SR -

Revenue from Food and Beverage Department SR -
Other income SR -
Total income SR -

Operational Cost

Departmental Expenses
Direct Cost - Rooms SR -
Direct Cost - F&B SR -
Direct Cost - Other SR -
Total Departmental Expenses SR -

Undistributed Operating Expenses SR -

Land Lease Rental SR
Total Undistributed Operating Expenses SR -

Capital Expenditure

Interest During Construction (Estimated) 18,308,680

Land (Leased) 10,800,000 3,600,000

Land (Acquistion Cost) - -
3,600,000
Building
Infrastructure cost 22,920,000 -

Construction Cost - Building 224,000,000 -

Construction Cost - Parking and other 31,360,000 -
-
Project Management and Supervision Cost 20,428,800 -
Project Contigency Cost 13,789,440 -
Total Building Cost 312,498,240 -
Furniture and Fixtures 4,166,643 -
Total Capex 345,773,563 3,600,000

Depreciation during the year

Building 312,498,240
Furniture and Fixtures 4,166,643
-
Debt Schedule

Opening balance SR
Loan received during the year 103,732,069 -
Loan repaid during the year SR -
Closing balance SR -

Average Loan outstanding (for markup)

Interest Rate SR -
Finance Cost SR
SR -
Construction Period Operational Period
2021 2022 2023 2024 2025 2026

- - 54,961,093 57,955,628 60,978,735 64,030,623

- - 16,488,328 17,386,688 18,293,620 19,209,187
- - 5,496,109 5,795,563 6,097,873 6,403,062
- - 76,945,530 81,137,879 85,370,228 89,642,873
- - (24,457,686) (25,732,299) (26,220,856) (27,469,137)
- - 52,487,844 55,405,580 59,149,373 62,173,735
- - (30,530,935) (32,070,258) (33,124,729) (34,672,231)
- - 21,956,908 23,335,323 26,024,644 27,501,504
- - (8,980,604) (8,980,604) (8,980,604) (8,980,604)
- - 12,976,304 14,354,718 17,044,040 18,520,900
(1,974,540) (1,755,147) (1,535,753) (1,316,360)
- - 11,001,764 12,599,572 15,508,286 17,204,540
- - (275,044) (314,989) (387,707) (430,114)
- - 10,726,720 12,284,583 15,120,579 16,774,427

68.2% 68.3% 69.3% 69.4%

28.5% 28.8% 30.5% 30.7%
16.9% 17.7% 20.0% 20.7%
13.9% 15.1% 17.7% 18.7%
3.1% 3.6% 4.4% 4.9%

- - 21,956,908 23,335,323 26,024,644 27,501,504

(203,304,730) (134,702,189) (520,830) (520,830) (520,830) (520,830)
(203,304,730) (134,702,189) 21,436,078 22,814,492 25,503,813 26,980,674

(203,304,730) (134,702,189) 21,436,078 22,814,492 25,503,813 26,980,674

 - - 21,956,908 23,335,323 26,024,644 27,501,504
(203,304,730) (134,702,189) (520,830) (520,830) (520,830) (520,830)
51,866,034 51,866,034 - - - -
- - (10,373,207) (10,373,207) (10,373,207) (10,373,207)
(1,974,540) (1,755,147) (1,535,753) (1,316,360)
(151,438,696) (82,836,155) 9,088,331 10,686,139 13,594,853 15,291,107

(151,438,696) (82,836,155) 9,088,331 10,686,139 13,594,853 15,291,107

(203,304,730) (134,702,189) 21,436,078 22,814,492 25,503,813 26,980,674

(206,904,730) (341,606,920) (320,170,842) (297,356,350) (271,852,536) (244,871,862)

1 1 1 1 1 1
- - - - - -
(0.02) (1.54) 15.94 14.03 11.66 10.08
- - - - - -

560 560 560 560

365 365 365 365
88% 89% 89% 90%
305 320 335 350

30% 30% 30% 30%

10% 10% 10% 10%

 32% 32% 31% 31%
35.0% 35.0% 34.0% 34.0%
25.0% 25.0% 24.0% 24.0%
20.0% 19.0% 18.0% 17.0%

35.0% 35.0% 34.5% 34.5%

Leased
Owned

Total Capex Capital Structure

10,800,000
- Debt 30% 102,482,076
22,920,000 Equity 70% 239,124,844
224,000,000 341,606,920
31,360,000 Check -

20,428,800
13,789,440

18,308,680
341,606,920

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

0.00% 0.00% 0.00% 2.00% 0.00% 2.00%
1.00 1.00 1.00 1.02 1.02 1.04

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0% 0% 0%
60% 40% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%
50.00% 50.00%

- - 54,961,093 57,955,628 60,978,735 64,030,623

- - 16,488,328 17,386,688 18,293,620 19,209,187
- - 5,496,109 5,795,563 6,097,873 6,403,062
- - 76,945,530 81,137,879 85,370,228 89,642,873

- - 19,236,382 20,284,470 20,732,770 21,770,412

- - 4,122,082 4,346,672 4,390,469 4,610,205
- - 1,099,222 1,101,157 1,097,617 1,088,521
- - 24,457,686 25,732,299 26,220,856 27,469,137

- - 26,930,935 28,398,258 29,452,729 30,926,791

3,600,000 3,672,000 3,672,000 3,745,440
- - 30,530,935 32,070,258 33,124,729 34,672,231

12,205,786 6,102,893

3,600,000 3,600,000
- - - - - -
3,600,000 3,600,000 - - - -

13,752,000 9,168,000 - - - -

134,400,000 89,600,000 - - - -
18,816,000 12,544,000 - - - -
153,216,000 102,144,000 - - - -
12,257,280 8,171,520 - - - -
8,273,664 5,515,776 - - - -
187,498,944 124,999,296 - - - -
 - - 520,830 520,830 520,830 520,830
203,304,730 134,702,189 520,830 520,830 520,830 520,830

8,928,521 8,928,521 8,928,521 8,928,521

52,083 52,083 52,083 52,083
- - 8,980,604 8,980,604 8,980,604 8,980,604

- 51,866,034 103,732,069 93,358,862 82,985,655 72,612,448

51,866,034 51,866,034 - - - -
- - (10,373,207) (10,373,207) (10,373,207) (10,373,207)
51,866,034 103,732,069 93,358,862 82,985,655 72,612,448 62,239,241

51,866,034 77,799,052 46,679,431 41,492,828 36,306,224 31,119,621

4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
2,193,933 3,290,900 1,974,540 1,755,147 1,535,753 1,316,360
Operational Period
2027 2028 2029 2030

67,111,506 70,221,598 73,361,112 76,530,266

20,133,452 21,066,479 22,008,334 22,959,080
6,711,151 7,022,160 7,336,111 7,653,027
93,956,109 98,310,237 102,705,557 107,142,372
(28,723,725) (29,071,741) (29,417,806) (29,923,334)
65,232,384 69,238,495 73,287,751 77,219,038
(35,690,517) (37,245,829) (37,713,183) (39,253,739)
29,541,867 31,992,666 35,574,568 37,965,300
(8,980,604) (8,980,604) (8,980,604) (8,980,604)
20,561,263 23,012,062 26,593,964 28,984,696
(1,096,967) (877,573) (658,180) (438,787)
19,464,296 22,134,489 25,935,784 28,545,909
(486,607) (553,362) (648,395) (713,648)
18,977,689 21,581,126 25,287,390 27,832,261

69.4% 70.4% 71.4% 72.1%

31.4% 32.5% 34.6% 35.4%
21.9% 23.4% 25.9% 27.1%
20.2% 22.0% 24.6% 26.0%
5.5% 6.2% 7.3% 8.0%

29,541,867 31,992,666 35,574,568 37,965,300

(520,830) (520,830) (520,830) (520,830)
29,021,037 31,471,836 35,053,738 37,444,469
440,523,168
29,021,037 31,471,836 35,053,738 477,967,638
 29,541,867 31,992,666 35,574,568 37,965,300
(520,830) (520,830) (520,830) (520,830)
- - - -
(10,373,207) (10,373,207) (10,373,207) (10,373,207)
(1,096,967) (877,573) (658,180) (438,787)
17,550,863 20,221,055 24,022,351 26,632,476
313,323,244
17,550,863 20,221,055 24,022,351 339,955,720

29,021,037 31,471,836 35,053,738 37,444,469

(215,850,826) (184,378,990) (149,325,252) (111,880,783)

1 1 1 1
- - - -
8.44 6.86 5.26 3.99
- - - -

560 560 560 560

365 365 365 365
90% 90% 91% 91%
365 380 395 410

30% 30% 30% 30%

10% 10% 10% 10%

31% 30% 29% 28%
34.0% 33.0% 32.0% 31.0%
24.0% 23.0% 22.0% 22.0%
16.0% 15.0% 15.0% 15.0%

34.0% 34.0% 33.0% 33.0%

5.00% 5.00% 5.00% 5.00%

0.00% 2.00% 0.00% 2.00%
1.04 1.06 1.06 1.08

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00
1.00 1.00 1.00 1.00

0.17% 0.17% 0.17% 0.17%

0% 0% 0% 0%
0% 0% 0% 0%
100% 100% 100% 100%
 4.23% 4.23% 4.23% 4.23%
10.00% 10.00% 10.00% 10.00%

67,111,506 70,221,598 73,361,112 76,530,266

20,133,452 21,066,479 22,008,334 22,959,080
6,711,151 7,022,160 7,336,111 7,653,027
93,956,109 98,310,237 102,705,557 107,142,372

22,817,912 23,173,127 23,475,556 23,724,382

4,832,028 4,845,290 4,841,833 5,050,998
1,073,784 1,053,324 1,100,417 1,147,954
28,723,725 29,071,741 29,417,806 29,923,334

31,945,077 33,425,481 33,892,834 35,356,983

3,745,440 3,820,349 3,820,349 3,896,756
35,690,517 37,245,829 37,713,183 39,253,739

- - - -
- - - -

- - - -

- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
 520,830 520,830 520,830 520,830
520,830 520,830 520,830 520,830

8,928,521 8,928,521 8,928,521 8,928,521

52,083 52,083 52,083 52,083
8,980,604 8,980,604 8,980,604 8,980,604

62,239,241 51,866,034 41,492,828 31,119,621

- - - -
(10,373,207) (10,373,207) (10,373,207) (10,373,207)
51,866,034 41,492,828 31,119,621 20,746,414

25,933,017 20,746,414 15,559,810 10,373,207

4.2% 4.2% 4.2% 4.2%
1,096,967 877,573 658,180 438,787
Visitors Per Key 16.45
Number of Visitors 7,137,969

Demand - Number of Keys

Stars 2019
Weights 3%
5 29,307
4 17,671
3 63,900
2 29,203
1 120,342
-
-
Total Star Hostels 260,424
Accumulated 260,424
Base Assumed 309,523
(49,099)

Unrated 70537.6

Total Incl Unrated 330,961

Accumulated 330,961

Supply - Number of Keys

Stars 2019
5 309,523
4
3
2
1

Total Star Hostels 309,523

Accumulated 309,523
Base Assumed 309,523
-

Unrated 107200

Total Incl Unrated 416,723

Accumulated 416,723
Supply - Number of Keys
Stars Occupany 2017 2019
5 73% 39923
4 72% 24506
3 82% 77897
2 88% 33223
1 90% 133974

Total Star Hostels 309,523

Unrated 107200

Total Incl Unrated 416,723

GAP - Number of Keys

Stars 2019
5 (10,616)
4 (6,835)
3 (13,997)
2 (4,020)
1 (13,632)
-
-
Total Star Hostels (49,099)
Accumulated (49,099)
Base Assumed 309,523
(358,622)

Unrated (36,662)

Total Incl Unrated (85,762)

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 16.45 16.45 16.45 16.45
8,800,000 11,500,000 15,000,000 16,073,754
1.23 1.61 2.10 2.25
Addition in Demand
2020 2021 2022 2023
3% 3% 3% 3%
36,131 47,217 61,587 65,995
21,786 28,470 37,135 39,793
78,779 102,950 134,283 143,895
36,003 47,049 61,369 65,762
148,363 193,883 252,892 270,994
- - - -
- - - -
321,062 419,569 547,264 586,439
581,485 1,001,054 1,548,319 2,134,758

321,062 419,569 547,264 586,439

652,023 1,071,592 1,618,856 2,205,295

Addition in Supply - Upcoming Projects

2020 2021 2022 2023
3,228
972

- - 4,200 -
309,523 309,523 313,723 313,723

- - 4,200 -
416,723 416,723 420,923 420,923
 Cummulative
2020 2021 2022 2023
39,923 39,923 43,151 43,151
24,506 24,506 25,478 25,478
77,897 77,897 77,897 77,897
33,223 33,223 33,223 33,223
133,974 133,974 133,974 133,974
- - - -
- - - -
309,523 309,523 313,723 313,723

107200 107200 107200 107200

416,723 416,723 420,923 420,923

Shortage
2020 2021 2022 2023
(3,792) 7,294 18,436 22,844
(2,720) 3,964 11,657 14,315
882 25,053 56,386 65,998
2,780 13,826 28,146 32,539
14,389 59,909 118,918 137,020
- - - -
- - - -
11,539 110,046 233,541 272,716
(37,561) 72,485 306,027 578,743

(107,200) (107,200) (107,200) (107,200)

(95,661) 2,846 126,341 165,516

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 This chart isn't available in your version of Excel.

t will permanently break Editing this shape or saving this workbook into a different file format will permanently break the chart.

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 16.45 16.45 16.45 16.45 16.45
17,225,121 18,459,732 19,783,631 21,203,298 22,725,687
2.41 2.59 2.77 2.97 3.18

2024 2025 2026 2027 2028

3% 3% 15% 15% 15%
70,723 75,792 81,227 87,056 93,307
42,643 45,700 48,977 52,492 56,260
154,202 165,255 177,106 189,816 203,444
70,472 75,523 80,940 86,748 92,976
290,406 311,221 333,541 357,476 383,142
- - - - -
- - - - -
628,446 673,490 721,791 773,587 829,130
2,763,204 3,436,694 4,158,485 4,932,072 5,761,202

628,446 673,490 721,791 773,587 829,130

2,833,741 3,507,231 4,229,023 5,002,610 5,831,740

2024 2025 2026 2027 2028

- - - - -
313,723 313,723 313,723 313,723 313,723

- - - - -
420,923 420,923 420,923 420,923 420,923
 2024 2025 2026 2027 2028
43,151 43,151 43,151 43,151 43,151
25,478 25,478 25,478 25,478 25,478
77,897 77,897 77,897 77,897 77,897
33,223 33,223 33,223 33,223 33,223
133,974 133,974 133,974 133,974 133,974
- - - - -
- - - - -
313,723 313,723 313,723 313,723 313,723

107200 107200 107200 107200 107200

420,923 420,923 420,923 420,923 420,923

2024 2025 2026 2027 2028

27,572 32,641 38,076 43,905 50,156
17,165 20,222 23,499 27,014 30,782
76,305 87,358 99,209 111,919 125,547
37,249 42,300 47,717 53,525 59,753
156,432 177,247 199,567 223,502 249,168
- - - - -
- - - - -
314,723 359,767 408,068 459,864 515,407
893,466 1,253,233 1,661,301 2,121,165 2,636,572

(107,200) (107,200) (107,200) (107,200) (107,200)

207,523 252,567 300,868 352,664 408,207

nently break the chart.

nently break the chart.

anently break the chart.

 1824213.7653949
16.45 16.45 16.45 16.45
24,358,256 26,109,006 27,986,518 30,000,000
3.41 3.66 3.92 4.20

2029 2030 2031 2032

15% 15%
100,010 107,198 114,907 123,174 90,765
60,302 64,636 69,284 74,269 54,728
218,059 233,732 250,540 268,565 197,902
99,656 106,818 114,500 122,738 90,444
410,666 440,183 471,837 505,783 372,705
- - - -
- - - -
888,693 952,568 1,021,068 1,094,528 806,543
6,649,896 7,602,464 8,623,532 9,718,060

888,693 952,568 1,021,068 1,094,528

6,720,433 7,673,002 8,694,069 9,788,598

2029 2030 2031 2032

- - - -
313,723 313,723 313,723 313,723

- - - -
420,923 420,923 420,923 420,923
 2029 2030 2031 2032
43,151 43,151 43,151 43,151
25,478 25,478 25,478 25,478
77,897 77,897 77,897 77,897
33,223 33,223 33,223 33,223
133,974 133,974 133,974 133,974
- - - -
- - - -
313,723 313,723 313,723 313,723

107200 107200 107200 107200

420,923 420,923 420,923 420,923

2029 2030 2031 2032

56,859 64,047 71,756 80,023
34,824 39,158 43,806 48,791
140,162 155,835 172,643 190,668
66,433 73,595 81,277 89,515
276,692 306,209 337,863 371,809
- - - -
- - - -
574,970 638,845 707,345 780,805
3,211,543 3,850,388 4,557,733 5,338,538

(107,200) (107,200) (107,200) (107,200)

467,770 531,645 600,145 673,605

1.0011904762
84,885.73
51,182.87
185,083.01
84,585.18
348,562.94

754,299.73
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