THE BUNGALOWS at JUAN DOLIO DEVELOPMENT OVERVIEW 07 15 08
ELLIOTT HOSPITALITY & REAL ESTATE
FRED ELLIOTT Founder & Chairman Frederick C. Elliott is both Founder and Chairman of Elliott, the dynamic parent company that manages and operates Sun Village Resorts and Maxim Bungalows. Mr. Elliott has been a successful entrepreneur in the financial services industry since 1967 when he completed his training with Mutual of Omaha. In 1969, Mr. Elliott joined Investor Syndicate Limited. In 1987, Mr. Elliott took his real estate investment experience further and began to utilize international structures. By 1994, invest ing in incomegenerating resort properties in the Caribbean had become Mr. Elliott’s primary focus. Since 1996, Mr. Elliott has played a key role in developing the Elliott team.
DEREK ELLIOTT CEO Derek F.C. Elliott is the Chief Executive Officer of Elliott, the dynamic parent company that manages and operates Sun Village Resorts and Maxim Bungalows. Following the successful 2002 launch of the flagship Sun Village Resort & Spa in Cofresi Beach, Mr.Elliott spearheaded the projects of Maxim Bungalows Cofresi and Juan Dolio. Today, Mr. Elliott is positioning the company at the forefront of the luxury travel and hospitality category. He is also Co-Founder of the Elliott Foundation, a charitable agency that helps fund schools, orphanages and other relief projects related to the protection and welfare of children in the local communities of the Dominican Republic.
MIGUEL CODER President After a very impressive first year with the Elliott Group, Miguel Coder, was recently promoted to President of Hospitality & Real Estate. Mr. Coder has enjoyed a successful career managing hotels, resorts and timeshare properties throughout the United States, Europe, the Caribbean, Mexico, Africa, the Middle East and China. Coder’s diverse 30-year industry experience includes General Manager and President CEO for the Bestride Hotels and Resorts; COO of Allegro Hotels and Resorts; Senior Vice President for InterContinental Hotels Group; President of Sheraton Hotels for Mexico and the Caribbean; and Regional VP for International Hospitality Group.
GREG CLARK CFO Regarded for his 22-year managerial background in the International banking sector, Mr. Clark is a leading authority on the Caribbean monetary market. As manager of several large branches of the Canadian Imper ial Bank of Commerce, he worked closely with Canada’s Ministry of Education. Mr. Clark joined the Elliott Group in 1999, as an international corporate consultant and in 2005 became the Chief Financial Officer of the Group. The Canadianborn executive managed the real estate-based development company’s international finance and banking interests, as well as Elliott’s corporate structuring and business operations.
ELLIOTT EXECUTIVE TEAM
ELLIOTT EXECUTIVE TEAM
ENRIQUE DE MARCHENA Board Member & Senior Advisor Mr. de Marchena has served as the Honorary Jamaican Consul in the Dominican Republic, President of the National Hotels and Restaurants Association, President of the Duty Free Association of the Dominican Republic, President of the Tourism Promotion Council from 2002 - 2004, President of the Dominican - Canadian Chamber of Commerce from 1998 - 2004. At present Mr. de Marchena is a member of the Dominican Republic Bar Association; the National Association of Young Executives; the Interamerican Bar Association and the American Bar Association. He is the newly appointed President of the Caribbean Hotel Association 2008 - 2010.
JAY BURLEY VP of Development Mr. Burley has an impressive record of success in the world of resort building and development. Mr. Burley joined the Elliott team in 1993 and quickly became involved with major hotel construction projects throughout the Dominican Republic. Mr. Burley has played a major role in the development of hotels in the Dominican Republic over the course of the past 14 years, heading teams to build and renovate numerous resorts and hotels, restaurants, spas, wedding chapels, night clubs and many other key projects that have paved the way to the country’s current travel and real estate boom.
ED COUREY VP of Finance Mr. Courey is a qualified and well known finance executive. His background includes more than 30 years in a successful hospitality and tourism carrer. Mr Courey has worked for a diverse range of organizations, star-ups and hotel developments in the USA, Europe and the Caribbean, including Caicos Resorts and Amanyara Resort, in Turks and Caicos, Olsen Group in the Canary Islands, Casa de Campo, Marriott Corporation, the Condado Beach Trio and Sehraton Hotels. In his role as a Senior Finance Executive, he has been responsible for negotiations and securing with lenders various expansion and consolidation agreements.
JOAQUIN DUEÑAS Corporate S&M Director Mr. Duenas joined the Elliott Team in 2007 with incredible experience and enthusiasm. Before joining the Elliott Team he was the Corporate Marketing Director of Royal Resorts in Cancun, Mexico where he proposed and implemented marketing programs to surpass US$ 100 million in timeshare sales for the first time in the company’s history, as well drove sales and occupancy to new heights. His background also includes work with El Cid Golf & Country Club, El Pueblito Beach Resort and Blue Parrot Inn in Mexico, as well as Dadeland Marriott (Miami) and Sociconsulte (Lisbon, Portugal).
Dominican Republic
According to the world tourism organization, the
Dominican Republic is the Caribbean’s number “ONE” tourist destination. Discriminating tourists will love the island for a beautiful romantic destination.
The Dominican Republic has become one of the hottest spots for golf in the caribbean, if not the world. Here, golfers will find 28 courses with oceanfront fairways and coconut palms. They’ll also find courses designed by legends including Pete Dye, Jack Nicklaus, Arnold Palmer, Robert Trent Jones, Gary Player, Tom Fazio and Nick Faldo. For tourist who are history buffs, the Domincan Republic has much to offer. Christopher Columbus discovered the island on his first voyage to the new world. Santo Domingo, the capital city, features the America’s first cathedral, first hospital and first university. Official Language: Spanish, however, english is widely spoken in tourist areas.
Why the Dominican Republic?
Climate: Tropical maritime with little seasonal temperature variation. rainy season: may to november. Annual temperature range: From 21 C (70 F) in the mountain regions to 25 C (77 F) in the plains and at the coast. National currency: The Dominican peso (RD$), although the US dollar is acceptable in some places, specially tourist oriented shops and hotels. 2007 Hotel Occupancy: Average Dominican Republic – 73% Average Santo Domingo – 57.4% Average Juan Dolio – 60.9% Average Punta Cana – 70.8%
THE BUNGALOWS AT JUAN DOLIO ELLIOTT HOSPITALITY & REAL ESTATE
Juan Dolio re-emerges stronger than ever ... the south beach of the DR Juan Dolio is re-emerging with a new look and new onlookers. A favorite spot among locals, the city is quickly becoming the next big tourism and real estate development destination in the Dominican Republic. Ambitious projects plan to make it
the next “South Beach” of the Caribbean.
The initiative to regenerate Juan Dolio is the talk of the town. The joint effort between the State Secretariat of Tourism and the Association for the
Tourism Development of Juan Dolio, has repositioned the area as the most thriving tourism site in the Dominican Republic. Once known as the pioneer of all inclusive hotel complexes, it has become the most successful location for the development of real estate tourism projects, among them THE BUNGALOWS. And to think it really all started with a round of golf. The Metro Country Club began working on a project to build out a golf course, villas and apartments on the area. The idea was such a huge hit, it wasn’t long before Guavaberry Country Club came to par. Seemingly overnight, Juan Dolio became a paradise for Santo Domingo golfers, offering two courses within minutes and, as an added perk, you could also buy a second home – or a new first home. You could own part of the action.
In fact, every day more people have made Juan Dolio their home. So much so, a third golf course, this time a seaside one designed by a prominent golfer, will go into construction very soon. In addition, there is talk of a fourth golf course by the end of the year. To keep up with these transformations, the hotel industry has strengthened its niche, among them
THE BUNGALOWS – JUAN DOLIO. The new THE BUNGALOWS features more than 200 unique accommodations with spectacular ocean views. The exclusive restaurants, lounges and pool scene are hailed to be the center of attention, even with the company of elite properties nearby, like: Barcelo Capella, Coral Costa Caribe, and Barcelo Talanquera. Worldclass cuisine, specialty cocktails and incredible music are said to keep people coming back. The pristine beach is a huge draw. During the last few years, the regeneration of the beach has caused a tide of real estate development that started with Grupo Metro’s project Costa del Sol. Thousands of seaside luxury apartments are being built in the area. There are two other beachfront projects underway as well, Costa del Sol II and Marbella. These are the first real estate
complexes to break the mold, with constructions of skyscrapers, up to 20 stories tall, on the beach. So who are these people seeking golfing and beach by day and buying properties along Juan Dolio’s shoreline? National and foreign tourists that have visited this beach for years and finally chose to buy a piece of paradise. Still, it’s rumored that time may erode interest in returning to the same property, leaving it unused; however, there are several efficient rental
systems – managed by the property administrators – that allow owners to rent the villa or apartment for several weekends a year, if they can manage to temporarily part ways. This system also provides a source of income for the maintenance of the property. In fact, the advantages of this option have led some ambitious investors to buy multiple properties just for rent, such is the case with THE BUNGALOWS, where properties tend to quickly sell in groups of two or more. These trends have complemented
the already rich offerings in the area and doubled it, creating even more growth.
There is now a large group of owners that go out to lunch at noon or shop the local supermarket and eat in. The community of Juan Dolio, as well as the neighboring city of San Pedro de Macoris, are reaping the benefits of theses visitors and fattening up… as are their investors.
THE BUNGALOWS PERSONAL CONCIERGE SERVICE will be available before and during each guest stay. The Manager and hosts will seek to surprise and delight each and every guest, so their vacation is unforgettable. Every room at The Bungalows – Juan Dolio offers a special intimacy without exception: The SUPERIOR Bungalow The PENTHOUSE Bungalow The RESIDENCE KING Bungalow The RESIDENCE DOUBLE Bungalow The ONE BEDROOM SUITE Bungalow The TWO BEDROOM SUITE Bungalow The GRAND SUITE Bungalow
The Bungalows will cater
to the individual...every need... every whim...every desire.
The PRESIDENTIAL PENTHOUSE Bungalow The PRESIDENTIAL VILLA Experience THE BUNGALOWS lifestyle in luxury accommodations, featuring an array of Flat screen TV
Custom designed mirrors
Jacuzzi Tub
Custom made furniture
iHome stereo
PPV
King or Double beds
Internet access
Kitchenettes
Ocean views
Marble tiles
Island views
Granite counter-tops
The finest bedding and linens Double pillow top mattress
THE ONE BEDROOM SUITE BUNGALOW
THE RESIDENCE DOUBLE BUNGALOW
THE RESIDENCE KING BUNGALOW
THE PENTHOUSE BUNGALOW
THE SUPERIOR BUNGALOW
THE TWO BEDROOM SUITE BUNGALOW (tower 1)
THE TWO BEDROOM SUITE BUNGALOW (tower 2)
T-C3
T-C3
PRESIDENTIAL VILLA
THE PRESIDENTIAL PENTHOUSE BUNGALOW
THE BUNGALOWS in Juan Dolio is committed to bringing the finest cuisine, most distinguished
The Restaurants
chefs, an array of restaurants and 24 hour in-room dining options to this new five-star, luxury resort. THE
BUNGALOWS will feature exclusive and elegant restaurant settings, unique anddecadent dishes, an extensive cocktail menu and impressive wine and champagne bottle service. The bar and lounge scene at THE BUNGALOWS will invite the guest to sit back and sip their martini by the sea as he enjoys one of the city’s most talked about nightlife scenes with one of the most notable restaurant options in the Dominican Republic
This state-of-the-art Spa features a variety of treatments for mind, body and soul. Guests can choose from a variety of massages, facial, Barber Shop services or salon services to help them get
THE SPA AT THE BUNGALOWS
Spa services will be there to be enjoyed in luxurious treatment rooms, on the beach or in the privacy of each bungalow, for the most unique and relaxing spa experience. even more relaxed in paradise.
Guests will also be able to work out independently in a complete Fitness Center or take part in specialized fitness classes. Yoga, water aerobics and personal trainers will be available to all The Bungalows guests. The Spa will feature the exclusive Kerstin Florian line of spa products.
As the market moves into a new era of meeting and convention planning, the need for state-of theart equipment and highly trained personnel become a necessity. The Bungalows – Juan Dolio is able to meet these specialized needs, both in space and technology. The
Bungalows are the experts that clients can count on to make their meeting a success. Our meeting professionals will approach every event, large or small, with the same dedication, delivering the comfort level clients deserve.
Conference Center Meetings and Conventions
A meeting held at The Bungalows may just be the easiest gathering clients will ever plan. Everything will always be first rated: Meeting Space Setups and private functions Wireless Internet access Fine dining Top-shelf drinks And, of course, the friendly, attentive personal service that The Bungalows will be renowned for.
The Bungalows Juan Dolio -Construction Update The Construction at the Bungalows is progressing. Sales Office opening October 2008.
Technical Details: 5 Passenger elevators and 3 service elevators ready for installation. Boiler already operational 1,250 Kw generator already installed Fire protection system, including sprinklers, smoke detectors and fire alarm to be installed
Building still requires finishing. All pool equipment already on site. The Beach has been completely re-habilitated with new sand brought in. Rooms: All plumbing, electrical, painting and new floor tiles have been installed. Bathrooms: News tubs and most already have the new marble work done. All rooms require finishing work.
Opening Schedule: The entire Building still requires finishing work and is scheduled for opening in winter 2009.
MARKET ANALYSIS
THE DOMINICAN REPUBLIC has had a very dynamic economy in the last decades, with growth driven by attractive policies and laws although innovation has been
Lack of coordination and strategy minimizes
low. The economy has been very dependant on tourism, with successful positioning as low-income tourism destination, but the sector has reached a saturation of its assets and has not maximized linkages throughout the rest of the economy. This has been largely because of an All-Inclusive enclave model and a focus on volume over productivity. Punta Cana provides evidence that it is possible to move beyond this, and that productivity can be improved both by increasing spend on the same assets (such as hotels) and making going off-property attractive to tourists. The country needs to improve its policies to attract high-end, non-All-Inclusive resorts that will bring higher spending tourists to the country. This should trigger spillovers throughout the economy, driving diversification and linkages.
the Ministry of Tourism shows room for improving
marketing efficacy: weak presence of IFCS and marketing activities for segmenting and attracting tourists. In addition, a comprehensive strategy for upgrading the tourism industry in cooperation with the private sector can provide effective development plans. The lack of current policy means there is a quick win available. Expand hotel procurement regionally to increase international exports: the current procurement law requires companies to source locally instead of importing when similar products of similar quality and price are available. If this policy is appropriately
OPPORTUNITIES:
High value-added services, not only in hotels
linked to tourism-related industries, there are a lot
Proximity to North America and strength of
but also in related industries and improved
of chances to increase exports based on souvenirs
airport: the Dominican Republic has an advantage
infrastructure, can be a possibility to attract upper
and reputation.
in geographical proximity to North America and in
segments of tourists.
its efficient use of the airports compared to other
RECOMMENDATIONS:
Caribbean countries, providing an opportunity
Historical, natural assets underutilized: since
Actively recruit development of high-end, non-All
to market shorter getaways for tourists. Strong
Christopher Columbus visited the Dominican
Inclusive properties since big hotel developers
relationship with European Market:
Republic, a lot of historical heritage has been
usually follow each other. This kind of property
consumption habits of Europeans, which are
accumulated but underutilized for tourism. Eco-
increases productivity of land and labor with higher
different from North Americans, can diversify
tourism to enjoy the country’s biodiversity has just
revenues per asset as well as supporting industries
revenue sources regarding tourism industry and
started and should be encouraged. Golf gaining
because of better-quality supplies procured.
galvanize related industries.
in popularity: tourists, especially, those who are drawn to the island’s consistently comfortable
Sponsor scholarships for Hospitality study abroad
High productivity trajectory in Punta Cana:
climate, may begin to visit the golf courses in the
in order to improve the quality of labor, increase
current success in Punta Cana, not dependant on
Dominican Republic. This is an option to attract
the level of education, and to acquire international
the All-Inclusive model, suggests the future path
tourists not just for sun and sea but also for inland
standards.
for increasing productivity.
activities.
2. Sensitivity to Product Pricing
leveraging proximity to these countries and a
THE BUNGALOWS – JUAN DOLIO – MARKET SUMMARY.
spanish-speaking population.
The Bungalows has been conceived as a seaside
a successful marketing plan. It is particularly crucial
resort hotel that is not dependent on tourism for
with The Bungalows, given the fact that a high
Leverage Dominicans living abroad (especially
its primary business. However, the opportunity
percent of the annual inventory is expected to be
higher-income and in the USA) with “Come Back
exists to create a compelling tourism hotel product
sold at a secured, but reduced, bulk rate per room
Home” campaigns.
that attracts a market which pays a higher average
per night in the first years of operation. Rack rates
daily rate. If marketing costs can be kept to a
must be set high enough to reinforce values to
Promote Golf Vacations, this is environmentally
minimum, tourism guests could be a very attractive
guests. It is significantly better that a client feels
sustainable and develops high-growth, high
auxiliary market. Furthermore, in the event that the
he has received a generous discount on a quality
revenue attractions for the wealthy tourist segment.
convention market does not meet its projections
product than fair pricing on a middle-of-the-road
for any reason, the tourist market can be depended
product.
Increase marketing to the rest of Latin America,
Improve restaurant presence by attracting Celebrity
Competitive pricing is always a key component of
upon to utilize the hotel’s full inventory.
Chefs, and promoting of Local Cuisine.
3. Recognition of Diversity of Buyer Needs PRIMARY FACTORS FOR SUCCESS
In the case of this hotel, it will be particularly
Improve ease of travel and find ways around
There are four primary factors that will determine
important to remember that the ultimate decision-
restrictive international travel laws (by providing, for
a successful long-term convention and tourism
maker for guests is most likely most influenced by
example, travel-size liquids on arrival).
accommodations venture.
price points. However, the tourism guest, who is his own decision-maker, is heavily influenced by a
Improve marketing of historic sites in the
1. Implementation of Product Quality
variety of personal preferences. These preferences
Dominican Republic.
The product must be of sufficient quality so that
naturally include price and value
it delivers on the marketing promise and creates Move towards higher market segments and
a satisfied buyer. In the case of The Bungalows,
4. Conservation of Marketing Expenses
reinforce marketing to attract non-all-inclusive
this buyer may at times be particularly discerning.
The average daily rate for The Bungalows is not
tourists and / or higher spending visitors.
In the best case scenario, the buyer’s expectations
such that it should be used to support typical
in the product and related services should be
marketing campaigns for the Resort. The potential
exceeded, creating the highest degree of goodwill
niche appeal of the Convention component
and potential of future business. Although the bulk
represents an opportunity to garner positive press
of the hotel’s guests will not be the one footing the
in the travel, incentive and entertainment industries
bills, their impressions and reactions will reflect
and this should be exploited. A strong public
favorably or unfavorably on the products offered by
relations firm should be procured to launch the
The Bungalows and could positively or negatively
property and assist with selective marketing.
affect future business.
PRODUCT OFFERED
MARKET ANALYSIS
As a result of market analysis findings and
The successful operation of The Bungalows is the essential part of the overall strategy. The tight management of room inventory, the advance scheduling of the Vacation Club program, the success of the Convention Market, and the opening of room inventory to tourism markets are crucial components. If well done, it could in fact result in the creation of a product featuring almost 100% annual occupancy. Markets. There are three primary markets to be considered in marketing and operation. They are complementary but have different needs that don’t always overlap. Fortunately it is expected that in most cases the usage will not in fact overlap and that the hotel will play host to one group or the other as dictated by seasons and sales.
the experience in planning and developing of the ELLIOTT EXECUTIVE TEAM, the following recommendations should be followed: 1. Limit Risk Exposure Through Pursuit of Four Markets The complete product composed by four main areas: Real Estate, Vacation Club, Convention Market and Tourism. Thus, in the event that market conditions change there is a tourism fallback position. This allows the developer and the operator to secure the primary business form alternate demonstrable sources and to introduce
At times, the three are likely to have some overlap depending on the hotel occupancy and careful attention must be made to address the slightly varied needs of the three markets. 1. Convention Market Usage
2. Tourist Usage
The first and foremost use of The Bungalows is
Tourism guests are likely to stay from two days to
2. Generate Land & Product Value
to support Meetings, Conventions and Incentive
four days in most cases and require entertainment
The presence of the resort facility makes possible
Travel. We estimate that this number will account
on a daily basis. Non-American guests will typically
the combination of residential condominium
for up to 40% of total available annual occupancy.
have longer stays. The average stay can be
together with a Vacation Club program, which
The resort will be marketed aggressively to
increased by offering longer stay packages through
creates value in the land and the product itself.
companies planning to use the Conference Center
wholesalers.
desirable real estate products in the Market Mix.
facilities. The outstanding advantage of this use is 3. Differentiate Product Through Market Niche
the predictable nature of the Convention schedule,
Although relationships will be pursued with select
Juan Dolio, the Dominican Republic and the
thus allowing other usage to be booked in the time
tour operators. A strong public relations campaign,
Convention Market provide the opportunity to
when convention use is low or non-existent.
focusing on exclusivity and limited inventory
promote The Bungalows as an exclusive and
The Convention guests are likely to be staying
will target tourists. This campaign will strive to
compelling property. Its location creates a sense
for short periods and being busy during that time
encourage direct booking through the hotel and
of exclusivity. Every effort should be made to
frame. They will also have time to enjoy the social
may save it from providing an inordinate number of
minimize expensive marketing campaigns and
facilities and in some cases they will just require a
agent commissions and wholesaler discounts.
stick to targeted aggressive media relations, a
place to sleep and eat. They are likely to be more
comprehensive professionally designed website and
self-sufficient than the tourism guest but at times
very limited advertising as needed in feeder markets.
may also have greater demands for their comfort and convenience.
3. Vacation Club Usage
Projected Rack Rates
A very important component of the Market Mix
In The Bungalows first year of operation, expected
will be the guests that but into the “Right to Use”
in late 2009 or early 2010, an average rack rate of
Vacation Club usage. This will be guests that will
US$ 216 is projected. Discounts as much as half
return year after year or will exchange will other
the rack rate can reduce a negotiated rate into the
Vacation Club users from around the world through
US$ 126 to US$ 132 range- an acceptable per unit
an affiliation with Interval International. Vacation
price – while still maintaining the overall value of
Club guests will stay 7 nights, checking in on
the resort accommodations, allowing the usage
saturday and checking out a week later, they will
by other groups to come in at a higher rate and
require lots of attention. Most of the Vacation Club
bringing in qualified leads to purchase the Real
market will be Americans. Both the Convention
Estate product or the Vacation Club program.
Market and the Tourist Market will produce buyers for the Vacation Club program, and will be
Projected Occupancy
replacing the need for Tourist usage.
An occupancy rate of 39 percent has been projected for the first year of hotel operations. This
Hotel Operations
rate is projected to climb annually until it reaches
The Bungalows will be operated by EMI Resort
the occupancy of 77 percent, by which time
Management, an independent hotel operator
operations should be stabilized.
with Dominican Republic experience let by hotel management veteran Mr. Miguel Coder.
MARKET PRODUCTS
The project has been sold to fractional owners
Fractional Ownership
Owners have signed “Rental Management Agreements� Elliott has developer promissory receivable notes in many units Management contract on all re-sales
10 Year Term of Agreement - Rental Manager will have the option to renew for an additional 10 years Floating Rental Ownership - The use of the Residential Beneficial Interest (fraction) is based on a floating structure
Fractional Rental Management Agreement
High-tech Rental Software - Software to fairly distribute rental opportunities in terms of time and tracking each Rental Week Real Estate Ownership with No Cost - Costs covered by the Rental Manager. US$ 200 daily base fee includes all costs related to the operations and management of each unit, including insurance, maintenance, sales & marketing and realty taxes. Net Revenue after the US$ 200 fee has been applied will be split 50% between the owner and the developer
Sale of 7 night stays for a period of 30 years at a discounted rate
Vacation Club
213 units (52 weeks) - total of 11,076 memberships Floating weeks (week 17 to week 50) Fixed weeks (week 51 to week 16) Average Price - US$ 11,286 per week Financing Available - 20% down plus closing costs Total Sales Projection - US$ 17,606,760 Yearly Maintenance Fee - US$ 470 per week per interval
Travel Agent network reserving Elliott Hospitality Resorts. Elliott preferred travel agent program designed to maximize occupancy and revenues 15% commission on bookings
Elliott Preferred Travel Agent Program
Bonus per reservation FAM Trips Awards Training
On-line suppliers: Expedia.com
Orbitz.com
Bookit.com
Travelocity.com
Hotels.com
Tourism Tour Operators: GoGo
Cotsco
Travel Impressions
Express Travel
Mark Travel
FINANCIAL HIGHLIGHTS
Price List by Phase THE BUNGALOWS juan dolio
Fractional Property
For your information, we provide below summaries of the The Bungalows Juan Dolio Fractional Interest Pricing, for each Phase of the Sales Program GRAND OPENING PHASE
Property sold as “Fractional Ownership” US$ 28,000,000 receivable from Fractional Sales Requires US$ 15,000,000 to complete Current appraisal US$ 59,000,000
VALUE PER FRACTION
DEPOSIT AMOUNT
FINANCE AMOUNT
GRAND OPENING PHASE
The Superior Bungalow
55,689
55,689
0
55,689.00
The Penthouse Bungalow
66,825
66,825
0
66,825.00
The Residence King Bungalow
69,795
69,795
0
69,795.00
The Residence Double Bungalow
74,250
74,250
0
74,250.00
The One Bedroom Suite Bungalow
74,250
74,250
0
74,250.00
The Two Bedroom Suite Bungalow
89,100
89,100
0
89,100.00
The Grand Suite
132,000
132,000
0
132,000.00
The Presidential Penthouse
244,200
244,200
0
244,200.00
The Presidential Villa
509,300
509,300
0
509,300.00
Passport Superior Condo
42,188
21,094
10,547
55,689.00
Passport Residence Penthouse
50,625
25,313
12,656
66,825.00
Passport Residence Condo King
52,875
26,438
13,219
69,795.00
Passport Residence Condo Double
56,250
28,125
14,063
74,250.00
One Bedroom Grand Suite
56,250
28,125
14,063
74,250.00
Two Bedroom Grand Suite
67,500
33,750
16,875
89,100.00
Grand Presidential Blender Suite
N/A
N/A
N/A
N/A
Grand Presidential Penthouse
N/A
N/A
N/A
N/A
Grand Presidential Villa
N/A
N/A
N/A
N/A
Passport Superior Condo
28,125
14,063
7,031
33,750
55,689.00
Passport Residence Penthouse
16,875
8,438
35,250
66,825.00
Passport Residence Condo King
17,625
8,813
37,500
69,795.00
Passport Residence Condo Double
18,750
9,375
37,500
74,250.00
One Bedroom Grand Suite
18,750
9,375
45,000
74,250.00
Two Bedroom Grand Suite
22,500
11,250
N/A
89,100.00
Grand Presidential Blender Suite
N/A
N/A
Grand Presidential Penthouse
N/A
N/A
N/A
N/A
N/A
N/A
Grand Presidential Villa
N/A
N/A
N/A
Passport Superior Condo
18,750
9,375
9,375
55,689.00
Passport Residence Penthouse
22,500
11,250
11,250
66,825.00
Passport Residence Condo King
23,500
11,750
11,750
69,795.00
Passport Residence Condo Double
25,000
12,500
12,500
74,250.00
One Bedroom Grand Suite
25,000
12,500
12,500
74,250.00
Two Bedroom Grand Suite
30,000
15,000
15,000
89,100.00
Grand Presidential Blender Suite
N/A
N/A
N/A
N/A
Grand Presidential Penthouse
N/A
N/A
N/A
N/A
Grand Presidential Villa
N/A
N/A
N/A
N/A
PHASE TWO
PHASE ONE
Property has applied for Law-158 a Tourism Incentive which can include tax free imports for development and possibly a 10 year tax exemption on revenues.
FOUNDER’S PHASE
N/A= Not Available
Loan Amount - US$ 7,500,000
First Mortgage
Annual Interest Rate - 8.0% Amortization in years - 9 Payments per year - 12
First Year’s Cash flow 2010
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
1,257,089
1,382,977
1,355,162
1,321,168
1,487,574
1,402,530
1,260,951
Monthly Balance
1,843,405
1,677,829
1,996,590
1,719,699
1,170,513
Accumulated Cashflow
1,843,405
3,521,235
5,517,825
7,237,523
8,408,0377 9,665,126
11,048,103 12,403,265 13,724,433
15,212,008 16,614,538
17,875,489
First Year’s Revenue (2010)
First Year’s Expenses (2010)
Revenues Rooms Food Beverage Others Servi-bar Spa Vacation Club TOTAL REVENUE
7,497,343 2,862,841 1,030,623 214,490 144,022 795,015 17,570,620 30,114,953
Expenses Cost of Sales Personnel Other Expenses Undistributed Expenses Personnel Administrative Marketing Maintenance Utilities TOTAL EXPENSES
25% 10% 3% 1% 0% 3% 58%
1,365,667 2,057,408 9,204,147
35% 7% 31%
1,192,911 3,168,269 1,780,168 1,610,195 1,608,794 21,987,558
4% 11% 6% 5% 5%
First Year’s Results (2010)
First Year’s Statistics (2010)
Operating Department Profit Rooms Food & Beverage Others Servi-Bar Spa Vacation Club Gross Operating Income Gross Operating Profit
Daily Rooms Available Days Open Yearly Rooms Available Rooms Occupied % Occupancy Occupancy Ratio Average Room Rate Total Number of Guests G.O.P. EBITDA REVPAR
6,311,713 907,010 214,490 32,960 375,287 9,646,270 17,487,731 8,127,395
242 365 88,330 34,774 39.3% 1.3 US$ 215.77 45,171 27% 17.4% US$ 84.88
84% 25% 17% 23% 47% 55% 58% 27%
10 Years Strategic Plan 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Total Revenues
30,114,953
32,801,533
36,066,315
38,590,957
41,292,324
44,182,787
47,275,582
50,584,873
54,631,663 60,094,829
Total Cost of Sales
1,365,667
1,399,809
1,434,804
1,470,674
1,507,441
1,545,127
1,583,755
1,623,349
1,663,933
1,705,531
Total Personnel Expenses
2,057,408
2,108,843
2,161,564
2,215,603
2,270,994
2,327,768
2,385,963
2,445,612
2,506,752
2,569,421
Total Other Expenses
9,204,147
9,434,251
9,670,107
9,911,860
10,159,656
10,413,648
10,673,989
10,940,838
11,214,359
11,494,718
Gross Operating Income
17,487,731
19,858,630
22,799,840
24,992,820
27,354,234
29,896,244 32,631,876
35,575,074
39,246,619 44,325,159
Undistributed Personnel Expenses 1,192,911
1,192,911
1,222,734
1,253,302
1,284,635
1,316,751
1,349,670
1,383,411
1,417,997
1,453,447
Undistributed Other Expenses
8,167,425
8,371,611
8,580,901
8,795,423
9,015,309
9,240,692
9,471,709
9,708,502
9,951,214
10,199,995
Gross Operating Profit
8,127,395
10,264,285
12,965,637
14,912,762
17,022,174
19,305,883
21,776,755
24,448,576
27,841,958
32,635,382
Incentive Fees Over G.O.P.
812,740
1,026,429
1,296,564
1,491,276
1,702,217
1,930,588
2,177,676
2,444,858
2,784,196
3,263,538
Total Fix Expenses
2,064,702
2,362,900
2,812,419
3,280,999
3,834,722
4,488,624
5,260,304
6,170,345
7,267,017
8,587,359
EBITDA
5,249,953
7,901,385
10,153,218
11,631,763
13,187,452
14,817,259
16,516,452
18,278,231
20,574,941
24,048,023
Interest and Amortization
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
3,413,868
PROFIT BEFORE TAXES
1,836,086
4,487,518
6,739,350
8,217,895
9,773,585
11,403,392
13,102,584
14,864,363
17,161,074
20,634,155
APPRAISAL
Elliott Hospitality & Real Estate requested
This appraisal is generated at market price current
Holsteinson y Asociados to perform a market
on February 2008 with a local currency exchange
appraisal of The Bungalows property at Juan
rate of RD$34/US$ 1.00.
Dolio, which is under complete reconstruction and
For additional information, clarification or original
upgrading program. An extract of the Appraisal
copies of the complete Appraisal please contact:
Summary is as follows:
Holsteinson y Asociados, S.A. Gem谩tica, administraci贸n de obras costeras y civiles, planificaci贸n de terrenos, golf y resorts
Based on construction cost for ground level of US$ 1,100 per square meter of Condos net areas build plus US$ 650 for furnishing we get to US$ 1,750/m2. This unit price increases US$ 100/m2 for additional level increased due to the added cost of handling
Ing. Alexander Holsteinson President Holsteinson y Asociados, S.A. Wenceslao Alvarez # 62, Apt. 3-B Zona UASD Santo Domingo, D.N. Republica Dominicana tel 809.686.3215 fax 809.686.7914
and carrying materials. The same goes for construction cost for ground level of US$ 1,250 per square meter of Penthouse net areas build plus US$ 800 for furnishing we get to US$ 2.050 / m2. This unit price increases US$ 100/ m2 for additional level increased due to the added cost of handling and carrying the materials. For the shared or common area the ground level is biased since it has all the main amenities so its unit cost is US$ 1,950 / m2 while the second level start at US$ 1,350 / m2 increasing US$ 100 / m2 for each additional level. The 3 basements unit cost include the excavation in rock as well as waterproofing all surfaces to cope with underground water level, corrosion and ventilation system plus furnishing at US$ 1,975 / m2.
Total appraisal parcel land cost Completed Project Value Actual Status Project Value
24,223.64
$850.00
US$ 20,590,094 US$ 80,013,474 US$ 59,215,291