- Country: India
- Industry: Tourism, Recreation
- Stage: Initial growth (first revenues)
- Investment size: $10,000,000 / min. $1,000,000
We are a Hotel Management Company operating as a franchisee of one of the big brands in the global hotel industry. We have a Master Franchise Licence for using their brand name throughout Asia and Africa. We will be operating hotels, restaurants, bars, resorts, and casinos. We will also get certain percentage of the hotels' shares. The initial investment is depending on our growth.
Due to the Master Franchise Licence we are quite popular and we can easily approach potential clients.
We are planning to operate at least 50 hotels, restaurants and bars throughout Asia and become Asia’s largest hotel chain. We can return the owners’ cash within a period for 2- 3 years maximum.
The owner can expect a minimum of 25% interest rate per annum and a lifetime income opportunity. We offer investors the opportunity to become part of the booming hospitality and tourism industry and help us achieve our growth rate goal of 10- 15 hotels per year.
We can easily get management contracts for hotels in the market. Lots of investors and big real estate companies are entering into the hospitality industry by establishing/acquiring hotels but they don’t know how to run and manage this type of business. Therefore, they seek big brands and give their hotels to them to run and manage on the hotels on their behalf. This is mainly what we do. We also get a share in the business.
We are using the big brand banner to attract the hotel owners and we already have talks going on with more than 40 Hotels throughout Asia. However, since we are new to Asia and our funds are limited, we were unable to get this deal. We can use the funding to open offices throughout Asia, hire good employees, get the hotels on lease or even pay some fees to consultants. With such a base we will have a huge team and support from international players to get these hotels, and to manage them on behalf of the owners. This will be a good opportunity for an investor to get a huge return and a long term income.
We have a lot of competitors, from well-established to new ones, but our advantage over them is the brand Licence which we have. Furthermore, we work cost-effectively and can offer the best deals to suit for the owner’s interest. Other brands cannot provide the same due to the huge expenses. Moreover, we are good in cracking the deals quickly, so we can get as many deals as there are available. We also offer the owners a risk-free package where we guarantee good returns. Even if we are not able to achieve what we aimed at and we don’t take our profits, we still get the management fees, so we are risk free.
Rationale for the deal
All hotel brands own hardly 1 or 2 hotels, the rest are franchisees. They are charged a lot for the management of the hotels, whereas we as a big brand still manage the hotels at low fees, at the same time charging enough to be profitable. Our profit will vary - 30 % in the first year and then 100 % from the third year. Hence, we will be able to take back the money which we have invested.
Use of financing
We need finance to grow. In particular, we need funding for infrastructure, software, call centre set up, office setup, hiring new staff, running costs, etc. We will take hotels on lease to make it easy for the immediate market. The reason is that we want to grow up like others and we have a plan to bring the company into the Indian and other market listings within 4yrs. We can pay instalments from the third with a good return.
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