HUDSON CONSULTING GROUP

N 5,250,000,000 TERM LOAN

For

THE FINANCE
OF 5 STAR HOTEL IN ABUJA

FINANCIAL MODEL Jul-10

CONSULTING GROUP
Return to content table

PROJECT INFORMATION:
Company Westin Nova
Sponsor: Treadstone Mall

1 TOTAL PROJECT COST

Items Percentage N
LAND 600,000,000

SUBSTRUTURE 300,000,000
Concrete Retaining Foundation, Walls & Pilling, Ground Beams, Ground
Slap, Subsoil Investigation etc
FRAMES 300,000,000
Building frame, colums, beams, floor slaps, staircases, concrete vehicle
ramps,lift shaft etc
UPPER FLOORS 300,000,000
Suspended ribbed slab
STAIRCASES 50,000,000
Staircases, Balustrading
WALLS 100,000,000
Reinforced Concrete Walls, Blockwall, Curtain Walling,
ROOF CONSTRCUTION & ROOF COVERING 60,000,000
Concrete roof slab, concrete fascia, longspan aluminium covering
ELECTRICAL INSTALLATIONS 810,000,000
Electrical equipment & installations, luminaries & light fittings, telephone,
telex, TV, PABX, CCTV etc
MECHANICAL INSTALLATIONS 740,000,000
Plumbing installations, Lift Installation, Air-conditioning, Fire Fighting Installation

WINDOWS AND DOORS 250,000,000

Flush doors, Aluminium doors, Aluminium Windows, Sundries
FLOOR, WALL & CEILING FINISHINGS 570,000,000

09/17/2017 3 366104467.xlsx
 Smooth Rendering, Vitrified Floor Tiles, Wall Tiles, Suspended Ceiling, Granolithic
Floor
EQUIPMENT, FITTINGS & FURNITURE 370,000,000
Bedrooms Furniture, Kitchen Fittings, Kitchen Equipment, Bar Reception,
Restaurant
PAINTING & DECORATING 270,000,000

EXTERNAL WORKS 80,000,000

Concrete paving & kerbs, landscaping, borehole, water & sewage
treatment plants, water & fuel storage tanks etc

TOWN PLANNING APPROVAL/DOCUMENTATION COST 800,000,000

PROFESSIONAL FEES 800,000,000

Project Management, architectural, structural, mechanical & electrical and
quantity surveying
CONTIGENCIES - PRICING AND DESIGN RISKS (10%) 10% 500,000,000

Financing Fees 600,000,000

Other Professional Fees 0

ESTIMATED CONSTRUCTION AND DEVELOPMENT COST 7,500,000,000 7,200,000,000

2 FUNDING STRUCTURE
% of capital
Equity contribution 30% 2,250,000,000
Debt finance (Project finance) 70% 5,250,000,000
Total 100% 7,500,000,000

FINANCING TERMS Naira

Debt Amount 5,250,000,000

09/17/2017 4 366104467.xlsx
 Equity Contribution 2,250,000,000
All-in Interest Rate 10%
Tenor (years) 10 years
Moratorium (on principal and interest capitalised for the period) 2 years

3 GENERAL ASSUMPTIONS

Base Exchange rate (=N=/$) 160

Tax rate 32%
Days in the year 365
Months in a year 12
Hours in days 24
Fund Raising Cost 7%
Building Depreciation rate 2%
Furniture, fittings and Equipment depreciation rate 20% Office rent per sqm
Occunpancy Rate for Hotels 65% 50,000
Occunpancy Rate for Offices 80%
Usable rate for car parks 90%
Percentage of Operation Cost to Revenue 28%
Escalation rate for revenues and expenses 10%
Dividend Policy 0

ACTIVITY AREA Number Price per day per unit

0 0
Deluxe Rooms 100 70,400
Deluxe Suites 23 250,000
Presidential Suite 2 450,000
0 0
Other Operated Departments as percentage of revenue 15.0%
Food, Beverages and Drinks as percentage of other revenues 25%

09/17/2017 5 366104467.xlsx
 300,000,000

67,500,000

09/17/2017 6 366104467.xlsx
 6000 300,000,000

09/17/2017 7 366104467.xlsx
Return to Table of Content
Construction 30-December 30-December 30-December
Period Year 1 Year 2 Year 3
INFLOWS =N= =N= =N= =N=
Equity 2,250,000,000 - 67,500,000 -
Long Term Debt 5,250,000,000 - - -
Revenue from Operations - 3,972,984,120 4,370,282,532 4,807,310,785

TOTAL INFLOWS 7,500,000,000 3,972,984,120 4,437,782,532 4,807,310,785

OUTFLOWS
Capex 7,500,000,000 - - -
Direct Cost 1,112,435,554 1,242,579,109 1,346,047,020
Indirect Cost (Operating Expenses) 749,183,448 822,399,217 998,683,544
Debt Repayment - 1,177,787,606 1,177,787,606 1,177,787,606
TOTAL OUTFLOW 7,500,000,000 3,039,406,608 3,242,765,932 3,522,518,170

Net Cashflow - 933,577,512 1,195,016,600 1,284,792,615

Cumulative Net Cashflow - 933,577,512 2,128,594,112 3,413,386,727

Debt Service Coverage Ratio - 2.43 2.71 2.94

GEARED VALUATION Year 0 1 2 3

FCF (7,500,000,000) 2,111,365,118 2,372,804,206 2,462,580,222
Cumulative Net Cash Flow (5,388,634,882) (3,015,830,676) (553,250,454)

GEARED VALUATION
First Year Cashflow Positive 4
Payback Period 3.21 years
NPV 26.78 Billion
IRR 37%
UNGEARED VALUATION Year 0 1 2 3
FCFE (2,250,000,000) 933,577,512 1,195,016,600 1,284,792,615
Cumulative Net Cash Flow (1,316,422,488) (121,405,888) 1,163,386,727

UNGEARED VALUATION
First Year Cashflow Positive 3
Payback Period 2.09 years
NPV 37.71 Billion
IRR 59%

WACC calculations:

Risk Free Rate (Avg rate on 20 Year FGN & US Bond 10.00%
Assumed beta 1.20
Equity Risk Premium 6.00%
Cost Of Equity 17.20%
After Tax Debt cost 6.66%
Ratio of equity 30%
Ratio of debt 70%
WACC 9.82%
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732

5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732

- - 407,000,000 - - - -
1,480,651,722 1,628,716,894 1,791,588,583 1,970,747,442 2,167,822,186 2,384,604,405 2,623,064,845
1,118,357,600 1,283,126,570 1,411,439,227 1,552,583,149 1,707,841,464 1,878,625,611 2,066,488,172
1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 - -
3,776,796,928 4,089,631,070 4,787,815,417 4,701,118,198 5,053,451,257 4,263,230,015 4,689,553,017

1,511,244,936 1,727,214,980 1,610,715,239 2,337,265,523 2,688,770,836 4,253,214,287 4,678,535,715

4,924,631,663 6,651,846,643 8,262,561,881 10,599,827,404 13,288,598,240 17,541,812,527 22,220,348,242

3.23 3.56 3.57 4.30 4.73 - -

4 5 6 7 8 9 10
2,689,032,542 2,905,002,586 2,788,502,845 3,515,053,129 3,866,558,442 4,253,214,287 4,678,535,715
2,135,782,088 5,040,784,674 7,829,287,519 11,344,340,649 15,210,899,091 19,464,113,377 24,142,649,093
 4 5 6 7 8 9 10
1,511,244,936 1,727,214,980 1,610,715,239 2,337,265,523 2,688,770,836 4,253,214,287 4,678,535,715
2,674,631,663 4,401,846,643 6,012,561,881 8,349,827,404 11,038,598,240 15,291,812,527 19,970,348,242
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
10,304,897,605 11,335,387,366 12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707

10,304,897,605 11,335,387,366 12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707

407,000,000 - - - - 407,000,000 -
2,885,371,329 3,173,908,462 3,491,299,309 3,840,429,240 4,224,472,164 4,646,919,380 5,111,611,318
2,273,136,989 2,500,450,688 2,750,495,757 3,025,545,333 3,328,099,866 3,660,909,852 4,027,000,838
- - - - - - -
5,565,508,319 5,674,359,151 6,241,795,066 6,865,974,572 7,552,572,029 8,714,829,232 9,138,612,156

4,739,389,287 5,661,028,215 6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551

26,959,737,528 32,620,765,744 38,847,896,781 45,697,740,921 53,232,569,476 61,113,880,886 70,231,023,437

- - - - - - -

11 12 13 14 15 16 17
4,739,389,287 5,661,028,215 6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551
28,882,038,379 34,543,066,595 40,770,197,632 47,620,041,772 55,154,870,327 63,036,181,737 72,153,324,288
 11 12 13 14 15 16 17
4,739,389,287 5,661,028,215 6,227,131,037 6,849,844,141 7,534,828,555 7,881,311,410 9,117,142,551
24,709,737,528 30,370,765,744 36,597,896,781 43,447,740,921 50,982,569,476 58,863,880,886 67,981,023,437
30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24
=N= =N= =N= =N= =N= =N= =N=
- - - - - - -
- - - - - - -
20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370

20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370

- - - 407,000,000 - - -
5,622,772,450 6,185,049,695 6,803,554,664 7,483,910,130 8,232,301,144 9,055,531,258 9,961,084,384
4,107,540,854 4,189,691,672 4,273,485,505 4,358,955,215 4,446,134,319 4,535,057,006 4,625,758,146
- - - - - - -
9,730,313,304 10,374,741,366 11,077,040,169 12,249,865,346 12,678,435,463 13,590,588,264 14,586,842,530

10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841

80,582,040,310 92,296,762,139 105,518,131,485 119,996,516,605 136,719,156,655 155,469,751,455 176,458,210,296

- - - - - - -

18 19 20 21 22 23 24
10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841
82,504,341,161 94,219,062,990 107,440,432,336 121,918,817,456 138,641,457,506 157,392,052,306 178,380,511,147
 18 19 20 21 22 23 24
10,351,016,873 11,714,721,829 13,221,369,346 14,478,385,120 16,722,640,050 18,750,594,800 20,988,458,841
78,332,040,310 90,046,762,139 103,268,131,485 117,746,516,605 134,469,156,655 153,219,751,455 174,208,210,296
30-December 30-December
Year 25 Year 26
=N= =N=
- -
- -
39,132,831,507 43,046,114,658

39,132,831,507 43,046,114,658

- -
10,957,192,822 12,052,912,104
4,718,273,309 4,812,638,775
- -
15,675,466,131 16,865,550,879

23,457,365,376 26,180,563,779

199,915,575,672 226,096,139,451

- -

25 26
23,457,365,376 26,180,563,779
201,837,876,523 228,018,440,302
 25 26
23,457,365,376 26,180,563,779
197,665,575,672 223,846,139,451
Return to content table

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Projected Revenue
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
REVENUE =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
Revenue 3,972,984,120 4,437,782,532 4,807,310,785 5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605
Rental Income 3,972,984,120 4,437,782,532 4,807,310,785 5,288,041,864 5,816,846,050 6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605

EXPENSES
TOTAL OPEX 1,861,619,002 2,064,978,326 2,344,730,564 2,599,009,321 2,911,843,464 3,203,027,810 3,523,330,591 3,875,663,650 4,263,230,015 4,689,553,017 5,158,508,319
Depreciation 216,600,000 216,600,000 216,600,000 216,600,000 216,600,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000
TOTAL OPERATING EXPENSES 2,078,219,002 2,281,578,326 2,561,330,564 2,815,609,321 3,128,443,464 3,427,027,810 3,747,330,591 4,099,663,650 4,487,230,015 4,913,553,017 5,382,508,319

EARNINGS BEFORE INTEREST AND TAX 1,894,765,118 2,156,204,206 2,245,980,222 2,472,432,542 2,688,402,586 2,971,502,845 3,291,053,129 3,642,558,442 4,029,214,287 4,454,535,715 4,922,389,287

Interest Expense 620,283,258 565,647,832 505,658,134 439,789,446 367,465,626 288,054,072 200,860,185 105,121,298 0 0 0
PROFIT BEFORE TAX 1,274,481,860 1,590,556,374 1,740,322,088 2,032,643,097 2,320,936,960 2,683,448,773 3,090,192,944 3,537,437,144 4,029,214,287 4,454,535,715 4,922,389,287
Provision for Tax 407,834,195 508,978,040 556,903,068 650,445,791 742,699,827 858,703,607 988,861,742 1,131,979,886 1,289,348,572 1,425,451,429 1,575,164,572
PROFIT AFTER TAX 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715
Distributed As Follows
Dividend - - - - - - - - - - -
Retained Earnings 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133 1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715

Return On Investment(%) 11.56% 14.42% 15.78% 18.43% 21.04% 24.33% 28.02% 32.07% 36.53% 40.39% 44.63%

48%
22%
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Projected Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
Net Book Value Of Assets 7,283,400,000 7,066,800,000 6,850,200,000 6,633,600,000 6,417,000,000 6,600,000,000 6,376,000,000 6,152,000,000 5,928,000,000 5,704,000,000 5,887,000,000
Cash and Marketable Securities 933,577,512 2,128,594,112 3,413,386,727 4,924,631,663 6,651,846,643 8,262,561,881 10,599,827,404 13,288,598,240 17,541,812,527 22,220,348,242 26,959,737,528
Total Assets 8,216,977,512 9,195,394,112 10,263,586,727 11,558,231,663 13,068,846,643 14,862,561,881 16,975,827,404 19,440,598,240 23,469,812,527 27,924,348,242 32,846,737,528

Deffered tax Liabilities 407,834,195 916,812,235 1,473,715,303 2,124,161,094 2,866,860,921 3,725,564,529 4,714,426,271 5,846,406,157 7,135,754,729 8,561,206,157 10,136,370,729
Short Term Debt 0 0 0 0 0 0 0 0 0 0 0
Long-Term Debt 5,771,916,652 5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308 0 0 0 0
Total Liabilities 6,179,750,847 6,076,589,112 5,961,362,708 5,873,810,338 5,806,188,185 5,775,158,258 5,787,092,579 5,846,406,157 7,135,754,729 8,561,206,157 10,136,370,729

Net Total Assets 2,037,226,665 3,118,804,999 4,302,224,019 5,684,421,325 7,262,658,458 9,087,403,623 11,188,734,825 13,594,192,083 16,334,057,798 19,363,142,084 22,710,366,799

Financed By
Share Capital 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000
Share Premium 0 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000
Cummulative Retained Earnings (212,773,335) 868,804,999 2,052,224,019 3,434,421,325 5,012,658,458 6,837,403,623 8,938,734,825 11,344,192,083 14,084,057,798 17,113,142,084 20,460,366,799
Total Shareholders' Equity 2,037,226,665 3,186,304,999 4,369,724,019 5,751,921,325 7,330,158,458 9,154,903,623 11,256,234,825 13,661,692,083 16,401,557,798 19,430,642,084 22,777,866,799

Pat growth Rate 0% 25% 9% 17% 14% 16% 15% 14% 14% 11% 11%

Difference - (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000)
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
11,335,387,366 12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707 20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370 39,132,831,507 43,046,114,658
11,335,387,366 12,468,926,102 13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707 20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466 29,401,075,513 32,341,183,064 35,575,301,370 39,132,831,507 43,046,114,658

5,674,359,151 6,241,795,066 6,865,974,572 7,552,572,029 8,307,829,232 9,138,612,156 9,730,313,304 10,374,741,366 11,077,040,169 11,842,865,346 12,678,435,463 13,590,588,264 14,586,842,530 15,675,466,131 16,865,550,879
224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000 224,000,000
5,898,359,151 6,465,795,066 7,089,974,572 7,776,572,029 8,531,829,232 9,362,612,156 9,954,313,304 10,598,741,366 11,301,040,169 12,066,865,346 12,902,435,463 13,814,588,264 14,810,842,530 15,899,466,131 17,089,550,879

5,437,028,215 6,003,131,037 6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 10,127,016,873 11,490,721,829 12,997,369,346 14,661,385,120 16,498,640,050 18,526,594,800 20,764,458,841 23,233,365,376 25,956,563,779

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5,437,028,215 6,003,131,037 6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 10,127,016,873 11,490,721,829 12,997,369,346 14,661,385,120 16,498,640,050 18,526,594,800 20,764,458,841 23,233,365,376 25,956,563,779
1,739,849,029 1,921,001,932 2,120,270,125 2,339,465,137 2,580,579,651 2,845,805,616 3,240,645,399 3,677,030,985 4,159,158,191 4,691,643,239 5,279,564,816 5,928,510,336 6,644,626,829 7,434,676,920 8,306,100,409
3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 11,219,075,234 12,598,084,464 14,119,832,012 15,798,688,456 17,650,463,370

- - - - - - - - - - - - - - -
3,697,179,186 4,082,129,105 4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882 11,219,075,234 12,598,084,464 14,119,832,012 15,798,688,456 17,650,463,370

49.30% 54.43% 60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84% 132.93% 149.59% 167.97% 188.26% 210.65% 235.34%

30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26
=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=
5,663,000,000 5,439,000,000 5,215,000,000 4,991,000,000 5,174,000,000 4,950,000,000 4,726,000,000 4,502,000,000 4,278,000,000 4,461,000,000 4,237,000,000 4,013,000,000 3,789,000,000 3,565,000,000 3,422,400,000
32,620,765,744 38,847,896,781 45,697,740,921 53,232,569,476 61,113,880,886 70,231,023,437 80,582,040,310 92,296,762,139 105,518,131,485 119,996,516,605 136,719,156,655 155,469,751,455 176,458,210,296 199,915,575,672 226,096,139,451
38,283,765,744 44,286,896,781 50,912,740,921 58,223,569,476 66,287,880,886 75,181,023,437 85,308,040,310 96,798,762,139 109,796,131,485 124,457,516,605 140,956,156,655 159,482,751,455 180,247,210,296 203,480,575,672 229,518,539,451

11,876,219,758 13,797,221,690 15,917,491,815 18,256,956,952 20,837,536,604 23,683,342,220 26,923,987,619 30,601,018,605 34,760,176,795 39,451,820,034 44,731,384,850 50,659,895,186 57,304,522,015 64,739,198,935 73,045,299,344
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11,876,219,758 13,797,221,690 15,917,491,815 18,256,956,952 20,837,536,604 23,683,342,220 26,923,987,619 30,601,018,605 34,760,176,795 39,451,820,034 44,731,384,850 50,659,895,186 57,304,522,015 64,739,198,935 73,045,299,344

26,407,545,986 30,489,675,091 34,995,249,106 39,966,612,524 45,450,344,282 51,497,681,217 58,384,052,691 66,197,743,535 75,035,954,690 85,005,696,571 96,224,771,805 108,822,856,269 122,942,688,281 138,741,376,737 156,473,240,107

2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000
67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000 67,500,000
24,157,545,986 28,239,675,091 32,745,249,106 37,716,612,524 43,200,344,282 49,247,681,217 56,134,052,691 63,947,743,535 72,785,954,690 82,755,696,571 93,974,771,805 106,572,856,269 120,692,688,281 136,491,376,737 154,141,840,107
26,475,045,986 30,557,175,091 35,062,749,106 40,034,112,524 45,517,844,282 51,565,181,217 58,451,552,691 66,265,243,535 75,103,454,690 85,073,196,571 96,292,271,805 108,890,356,269 123,010,188,281 138,808,876,737 156,459,340,107

10% 10% 10% 10% 10% 10% 14% 13% 13% 13% 13% 12% 12% 12%

(67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) (67,500,000) 13,900,000
Return to content table

30-December 30-December 30-December 30-December 30-December

FINANCIAL SUMMARY Y1 Y2 Y3 Y4 Y5
N N N N N
Revenue 3,972,984,120 4,437,782,532 4,807,310,785 5,288,041,864 5,816,846,050

Total Operating Expenses 2,078,219,002 2,281,578,326 2,561,330,564 2,815,609,321 3,128,443,464

Earnings Before Interest & Tax 1,894,765,118 2,156,204,206 2,245,980,222 2,472,432,542 2,688,402,586

Net Profit/(Loss) 866,647,665 1,081,578,335 1,183,419,020 1,382,197,306 1,578,237,133

Cumulative Net Cashflow 933,577,512 2,128,594,112 3,413,386,727 4,924,631,663 6,651,846,643

Return On Invested Capital 11.56% 14.42% 15.78% 18.43% 21.04%

GEARED VALUATION UNGEARED VALUATION

Payback Period 2.09 years Payback Period 3.21 years
NPV 37.71 Billion NPV 26.78 Billion
IRR 59% IRR 59%

Return on Equity 39% 48% 53% 61% 70%

Residual Valuation (Dollars) 138,000,000.00 14,000,000,000

12,000,000,000

10,000,000,000

8,000,000,000 Revenue
Net Profit/(Loss)
6,000,000,000 Cumulative Net Cashflow

4,000,000,000
14,000,000,000

12,000,000,000

10,000,000,000

8,000,000,000 Revenue
Net Profit/(Loss)
6,000,000,000 Cumulative Net Cashflow

4,000,000,000

2,000,000,000

-
 30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13
N N N N N N N N
6,398,530,655 7,038,383,721 7,742,222,093 8,516,444,302 9,368,088,732 10,304,897,605 11,335,387,366 12,468,926,102

3,427,027,810 3,747,330,591 4,099,663,650 4,487,230,015 4,913,553,017 5,382,508,319 5,898,359,151 6,465,795,066

2,971,502,845 3,291,053,129 3,642,558,442 4,029,214,287 4,454,535,715 4,922,389,287 5,437,028,215 6,003,131,037

1,824,745,166 2,101,331,202 2,405,457,258 2,739,865,715 3,029,084,286 3,347,224,715 3,697,179,186 4,082,129,105

8,262,561,881 10,599,827,404 13,288,598,240 17,541,812,527 22,220,348,242 26,959,737,528 32,620,765,744 38,847,896,781

24.33% 28.02% 32.07% 36.53% 40.39% 44.63% 49.30% 54.43%

81% 93% 107% 122% 135% 149% 164% 181%

Revenue
Net Profit/(Loss)
Cumulative Net Cashflow
Revenue
Net Profit/(Loss)
Cumulative Net Cashflow
30-December 30-December 30-December 30-December 30-December 30-December 30-December 30-December
Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21
N N N N N N N N
13,715,818,713 15,087,400,584 16,596,140,642 18,255,754,707 20,081,330,177 22,089,463,195 24,298,409,515 26,728,250,466

7,089,974,572 7,776,572,029 8,531,829,232 9,362,612,156 9,954,313,304 10,598,741,366 11,301,040,169 12,066,865,346

6,625,844,141 7,310,828,555 8,064,311,410 8,893,142,551 10,127,016,873 11,490,721,829 12,997,369,346 14,661,385,120

4,505,574,016 4,971,363,417 5,483,731,759 6,047,336,935 6,886,371,474 7,813,690,844 8,838,211,155 9,969,741,882

45,697,740,921 53,232,569,476 61,113,880,886 70,231,023,437 80,582,040,310 92,296,762,139 105,518,131,485 119,996,516,605

60.07% 66.28% 73.12% 80.63% 91.82% 104.18% 117.84% 132.93%

200% 221% 244% 269% 306% 347% 393% 443%

30-December 30-December 30-December 30-December 30-December
Y22 Y23 Y24 Y25 Y26
N N N N N
29,401,075,513 32,341,183,064 35,575,301,370 39,132,831,507 43,046,114,658

12,902,435,463 13,814,588,264 14,810,842,530 15,899,466,131 17,089,550,879

16,498,640,050 18,526,594,800 20,764,458,841 23,233,365,376 25,956,563,779

11,219,075,234 12,598,084,464 14,119,832,012 15,798,688,456 17,650,463,370

136,719,156,655 155,469,751,455 176,458,210,296 199,915,575,672 226,096,139,451

149.59% 167.97% 188.26% 210.65% 235.34%

499% 560% 628% 702% 784%

Return to content table

Initial Loan

Initial Loan Amount (NGN) 5,250,000,000

Amortised Interest
Loan Amount (NGN) 6,329,421,000
Interest Rate (%) 10%
Loan Life (Years) 10
Repayment Period (Years) 8
Moratorium (Years) 2

Annual Repayment (NGN) 1,177,787,606

Construction
Period Year 1 Year 2
Opening balance 5,250,000,000 6,329,421,000 5,771,916,652
Interest (to P&L) 1,079,421,000 620,283,258 565,647,832
Principal Repayment 557,504,348 612,139,774
Annual Repayment 1,177,787,606 1,177,787,606
Closing Debt (to BS) 6,329,421,000 5,771,916,652 5,159,776,877

Year Year-Start Annual

Balance Payment
1 6,329,421,000 1,177,787,606
2 5,771,916,652 1,177,787,606
3 5,159,776,877 1,177,787,606
4 4,487,647,405 1,177,787,606
2,832,589,388 5 3,749,649,244 1,177,787,606
6 2,939,327,264 1,177,787,606
7 2,049,593,729 1,177,787,606
8 1,072,666,308 1,177,787,606
9 0 0
10 0 0
11 0 0
12 0 0
13 0 0
14 0 0
15 0 0
16 0 0
17 0 0
18 0 0
19 0 0
20 0 0
 Year 3 Year 4 Year 5 Year 6 Year 7
5,159,776,877 4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729
505,658,134 439,789,446 367,465,626 288,054,072 200,860,185
672,129,472 737,998,161 810,321,980 889,733,535 976,927,421
1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606 1,177,787,606
4,487,647,405 3,749,649,244 2,939,327,264 2,049,593,729 1,072,666,308

Interest Principal Year-end

Component Repaid Balance
620,283,258 557,504,348 5,771,916,652
565,647,832 612,139,774 5,159,776,877
505,658,134 672,129,472 4,487,647,405
439,789,446 737,998,161 3,749,649,244
367,465,626 810,321,980 2,939,327,264
288,054,072 889,733,535 2,049,593,729
200,860,185 976,927,421 1,072,666,308
105,121,298 1,072,666,308 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
1,072,666,308 0
105,121,298 0
1,072,666,308 0
1,177,787,606 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
Year 16 Year 17 Year 18 Year 19 Year 20

0 0 0 0 0
0 0 0 0 0
HOTEL FEASIBILITY
Analysis of Operating Expenditure

Power Year 1 Year 2 Year 3

Generating Capacity 500KVA 500KVA 500KVA
No of Locations 2 2 2
Standard Fuel Consumption lt/hr 15.0 15.0 15.0
Hours in Use 15 15 15
Fuel Cost 165 182 200
Days 365 365 365

Diesel Cost 27,101,250 29,811,375 32,792,513

Total Diesel Cost 27,101,250 29,811,375 32,792,513

Generator Maintenance and Service

Year 1 Year 2 Year 3
Cost per Service 1,000,000 1,100,000 1,210,000
Months 6 6 6
Annual Service 6,000,000 6,600,000 7,260,000
Annual Maintenance 150,000 165,000 181,500
No of generator 2 2 2

12,300,000 13,530,000 14,883,000

Power Sub-Total 39,401,250 43,341,375 47,675,513

Telephone Bills Year 1 Year 2 Year 3

No of Phones 8 8 8
Bill /month/phone 200,000 240,000 288,000

Annual Bill 19,200,000 23,040,000 27,648,000

Year 1 Year 2 Year 3

Other Operating expenses

PHCN Bill 10,000,000 12,000,000 14,400,000
General maintenance 30,000,000 36,000,000 43,200,000
Recruitment Expenses 30,000,000
Internet & Web support 15,000,000 18,000,000 21,600,000
Marketing Expenses 150,000,000 180,000,000 216,000,000
Media & Advertising (Launching Inclusive) 29,787,643 14,626,277 13,516,285
Travelling Expenses (Transport) 15,000,000 18,000,000 21,600,000
Travelling Expenses (Accormodation) 10,000,000 11,000,000 12,100,000
Stationery and Consumables 12,000,000 13,200,000 14,520,000
Transportation (Local) 15,000,000 18,000,000 21,600,000
Audit and Professional Services 30,000,000 36,000,000 43,200,000

346,787,643 356,826,277 421,736,285

Insurance Costs Year 1 Year 2 Year 3

at 5% of Asset Costs
97,500,000 107,250,000 117,975,000

Year 1 Year 2 Year 3

Motor Vehicle Running Costs

fueling Costs (50lts) petrol 6,000 6,600 7,260

Frequency 104 104 104
No. of Vehicles 10 20 25
6,240,000 13,728,000 18,876,000

Servicing Costs 25,000 27,500 30,250

Frequency 4 4 4
No of Vehicles 10 20 25
1,000,000 2,200,000 3,025,000

Total 7,240,000 15,928,000 21,901,000

Year 1 Year 2 Year 3

Miscellaneous (% Total Opex) 10% 10% 10%
Total Opex 510,128,893 546,385,652 636,935,797

Miscellaneous 51,012,889 54,638,565 63,693,580

Grand Total 561,141,782 601,024,217 700,629,377

Year 1 Year 2 Year 3

Pre-operation Expenses

Consultant Fee 300,000,000

Other pre - operating cost 100,000,000
400,000,000
400,000,000 - -
 Year 4 Year 5
500KVA 500KVA
2 2
15.0 15.0
15 15
220 242
365 365

36,071,764 39,678,940

36,071,764 39,678,940

Year 4 Year 5
1,331,000 1,464,100
6 6
7,986,000 8,784,600
199,650 219,615
2 2

16,371,300 18,008,430

52,443,064 57,687,370

Year 4 Year 5
8 8
345,600 414,720

33,177,600 39,813,120

Year 4 Year 5

17,280,000 20,736,000
51,840,000 62,208,000

25,920,000 31,104,000
259,200,000 311,040,000
13,225,910 13,559,841
25,920,000 31,104,000
13,310,000 14,641,000
15,972,000 17,569,200
25,920,000 31,104,000
51,840,000 62,208,000

500,427,910 595,274,041

Year 4 Year 5

129,772,500 142,749,750

Year 4 Year 5

7,986 8,785
104 104
30 30
24,916,320 27,407,952

33,275 36,603
4 4
30 30
3,993,000 4,392,300

28,909,320 31,800,252

Year 4 Year 5
10% 10%
744,730,394 867,324,533

74,473,039 86,732,453

819,203,433 954,056,986

Year 4 Year 5
- -
 PERSONNEL COSTS

Number in employment
Salary Year 1 Year 2 Year 3 Year 4 Year 5
1 Managing Director/CEO 30,000,000 1 1 1 1 1
2 Chief Operating Officer 20,000,000 1 1 1 1 1
3 Head Business Development 15,000,000 1 1 1 1 1
4 Head Admin/HR & Logistics 10,000,000 1 1 1 1 1
5 Banquet Manager 10,000,000 1 1 1 1 1
6 F&B Manager 10,000,000 1 1 1 1 1
7 Marketing 8,000,000 4 8 12 12 16
8 Head Support Services 6,000,000 1 1 1 1 1
9 Account Officers 4,000,000 2 2 4 4 4
10 Customer Service Officer 2,000,000 2 2 4 4 4
11 Research & Data Officer 2,400,000 1 1 2 2 2
12 Drivers 600,000 2 2 4 4 5
13 Card Officers 960,000 2 2 2 3 3
14 OTHER Personnell 1,000,000 30 30 30 30 30

Total Salary
Training Costs
Total Personnel Cost 50 54 65 66 71

Assumptions
Salaries increase from 3rd & 5th year percentage 10.0%
December Bonus is a percentage of Salaries 5.0%

Total Salary
Year 1 Year 2 Year 3 Year 4 Year 5
Managing Director/CEO 30,000,000 30,000,000 33,000,000 33,000,000 36,300,000
Chief Operating Officer 20,000,000 20,000,000 22,000,000 22,000,000 24,200,000
Head Business Development 15,000,000 15,000,000 16,500,000 16,500,000 18,150,000
Head Admin/HR & Logistics 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000
Banquet Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000
F&B Manager 10,000,000 10,000,000 11,000,000 11,000,000 12,100,000
Marketing 32,000,000 64,000,000 105,600,000 105,600,000 116,160,000
Head Support Services 6,000,000 6,000,000 6,600,000 6,600,000 7,260,000
Account Officers 8,000,000 8,000,000 17,600,000 17,600,000 19,360,000
Customer Service Officer 4,000,000 4,000,000 8,800,000 8,800,000 9,680,000
Research & Data Officer 2,400,000 2,400,000 5,280,000 5,280,000 5,808,000
Drivers 1,200,000 1,200,000 2,640,000 2,640,000 2,904,000
Card Officers 1,920,000 1,920,000 2,112,000 3,168,000 3,484,800
30,000,000 30,000,000 33,000,000 33,000,000 36,300,000
- - - -
Total Salary 180,520,000 212,520,000 286,132,000 287,188,000 315,906,800
December Bonus 7,521,667 8,855,000 11,922,167 11,966,167 13,162,783
Total Personnel Cost 188,041,667 221,375,000 298,054,167 299,154,167 329,069,583
Abuja Mixed Use Feasibility Study
Sensistivity Analysis -- Occupancy Rate
In Millions of Naira

Pre-Const. Ending
& Const. Year 1 Year 2 Year 3 Year 4 Year 5 Valuation

Base Case-Feasibility Study 8-11-10

Average Occupancy 74% 78% 82% 84% 85%
Revenue 3,515 4,108 4,767 5,530 6,241
Net Income (390) 840 1,081 1,350 1,843 2,155
Operating Cashflow (8,740) 385 1,199 1,479 1,943 2,274 39,209
IRR 36%
Financing Need 8,840

Scenario 1
Average Occupancy 50% 70% 80% 85% 85%
Revenue 2,375 3,657 4,598 5,374 5,911
Net Income (392) 395 903 1,282 1,774 2,012
Operating Cashflow (8,743) (61) 1,023 1,411 1,874 2,132 36,752
IRR 33%
Financing Need 8,904

Scenario 2
Average Occupancy 50% 50% 50% 50% 50%
Revenue 2,375 2,612 2,874 3,161 3,477
Net Income (392) 395 498 613 841 985
Operating Cashflow (8,743) (61) 616 742 940 1,104 19,042
IRR 18%
Financing Need 8,904

Scenario 3
Average Occupancy 70% 70% 70% 70% 70%
Revenue 3,272 3,599 3,959 4,355 4,791
Net Income (390) 746 883 1,036 1,346 1,541
Operating Cashflow (8,740) 290 1,002 1,165 1,446 1,661 28,631
IRR 29%
Financing Need 8,840

Scenario 5
Average Occupancy 80% 80% 80% 80% 80%
Revenue 3,721 4,093 4,502 4,952 5,447
Net Income (390) 920 1,075 1,247 1,598 1,819
Operating Cashflow (8,740) 465 1,193 1,376 1,698 1,938 33,411
IRR 33%
Financing Need 8,840

Scenario 3
Average Occupancy 85% 85% 85% 85% 85%
Revenue 3,945 4,339 4,773 5,251 5,776
Net Income (390) 1,007 1,170 1,352 1,724 1,957
Operating Cashflow (8,740) 552 1,289 1,481 1,824 2,076 35,801
IRR 35%
Financing Need 8,840
Pre-Design Estimates Land Building and Site Im Soft Costs FF&E

3 Star 9.0% 65.0% 11.0% 12.0%

4 Star 10.0% 64.0% 10.0% 12.0%

5 Star 13.0% 59.0% 14.0% 10.0%

Super Luxury 15.0% 59.0% 13.0% 10.0%

4 Star 10.0% 64.0% 10.0% 12.0%

Naira
Program Management 0.8% 52,164,000.00

Architecture 4.1% 279,864,000.00

Structural 2.1% 148,212,000.00

Mechanical 1.5% 100,188,000.00

Electrical 1.5% 100,188,000.00

QS 2.1% 141,588,000.00

Financial Consultants 5.0% 345,000,000.00

Reimbursables 1.0% 69,000,000.00

Total 17.9% 1,236,204,000.00

Expected Project Cost Preliminaries Development Costs

8,000,000,000.00 1,100,000,000.00 6,900,000,000.00

86%

64%

22%

1,780,000,000.00
Pre-Opening & Working Capital Total Cost Per Room

3.0% 100% 117,300.00

4.0% 100% 250,100.00 182

4.0% 100% 360,000.00

3.0% 100% 538,000.00

600,000.00

4.0% 100%

Dollars
347,760.00

1,865,760.00

988,080.00

667,920.00

667,920.00

943,920.00

2,300,000.00

460,000.00

8,241,360.00

Project Is Over Costed By 1.7B

Dollar Naira

45,518,200.00 7,282,912,000.00