INFORMATION MEMORANDUM

Project Arpora, Goa

August-2020
CONTENTS
The Opportunity
Project Thesis
Location
Goa Operating Metrics
Project Location

Upper-Midscale Segment Rationale

About the Property

Property – Services & Utilities
Execution Team
Financial Forecast

Caravela Case Study

Indian Hotels Goa Case Study

Annexure
Opportunity

Legal Owner Royal Developers a Partnership Firm

Property
5,103 sq.m. corner plot
Description
Location Arpora, Goa

Coordinates 15°34'07.8"N 73°46'06.9"E

Zoning Non Agricultural

Address 54/1, Maina Bhatti, Arpora, Goa

Existing 2 Bungalows – 4,310 sq ft; hotel
Construction structure of 20,825 sq ft
Opportunity to come on board in an
Current under construction 124 room fully
offering equipped upper midscale category
hotel to become operational by Jan'22
 Project Thesis
1
 Tourist arrivals in Goa has been growing at CAGR of 18.5%1 (2014-18) to reach 8.0M
 Branded room occupancy level at 71.8% and RevPAR at 5,679 in 2018/192
Location  Consistent growth experienced in occupancy & RevPAR levels owing to growing domestic leisure
 Government focus on improving the infrastructure and new MOPA airport will positively contribute to
tourist influx

2
 Project Location - Prime North Goa location with multiple 4 & 5 star properties in 2 km radius
Unique  Positioned in Upper Midscale segment which has significant supply deficit
 Hotel Details – 124 rooms with a banquet hall, conference room, swimming pool and fitness centre
Project
 50% of civil work (25,135 sq ft) complete & bulk of administrative work underway
Dynamics  Strong Execution team with experience of 70+ years
 Considerable interest shown by leading international and domestic brands to manage and lease

3
Favourable  Amongst all micro markets North Goa recorded highest growth in both occupancy (3%) and ADR
(3.7%) in 2018/192
Demand
 Upper Midscale segment has ADR in range of mid INR 5,0003 in Goa, amongst best in India
Supply  COVID 19 Impact - domestic tourism to get considerable boost, Goa to attract traffic from driveable
Situation cities like Mumbai, Pune, Bangalore, Hyderabad

4
 124 room inventory and banquets allows capturing of multiple revenue streams including MICE
Strong  ADR of 5,500+ and occupancy of 70% is achievable given the location and the positioning in the first
Financial 5 years of operation
Profile  Expected GOP margin in excess of 35%
 Caravela beach resort case study exhibiting supreme return for equity shareholders

1. Goa Tourism Website

2. Hotelivate 2019 report
3. Horwath HTL 2019 report
 Goa remains India’s most preferred holiday
destination
Tourist Arrivals in Goa1  Permanent venue of the International Film
Festival of India (IFFI)
8.0M  No 6. on the list of top 10 nightlife cities in the
7.8M
world as rated by National Geographic3
6.3M
5.3M  Strong hospitality oriented lineage, besides being
4.1M a relaxing holiday destination, also offers leisure
and excursion options related to eco-tourism,
sun and sand tourism, heritage and culture
tourism
 Tourism contributes about 12.5% to the local
2014 2015 2016 2017 2018
Goa GDP4
Domestic Foreign

Occupancy Rates across major cities (2018-19)2 RevPAR (INR) across major cities (2018-19) 2

Goa 71.8% Goa 5,679

New Delhi 72.5% New Delhi 5,091

Kolkata 70.8% Gurugram 4,364
Hyderabad 70.3% Bengaluru 4,185
Pune 69.9% Kolkata 4,143
Gurugram 68.8% Agra 3,835
Jaipur 67.9% Hyderabad 3,668
Agra Noida 3,662
67.0%
Jaipur 3,597
Ahmedabad 66.0%
Pune 3,359
Chennai 65.0%
Chennai 3,280
Bengaluru 63.9%
Ahmedabad 2,926
Noida 60.0%

Goa ranks amongst the best in the country in both occupancy rates & RevPAR
1. Goa Tourism website 2. Hotelivate 2019 report
3. https://www.nationalgeographic.com/travel/top-10/nightlife-cities/ 4. Department of Planning, Statistics & Evaluation, Government of Goa
 Goa: Sustained growth in operating metrics
Upward trend in Average Room ..and an increasing RevPAR (INR)
Rate yoy
71.8% 5,679
71.3%
5,544
70.2% 70.0% 5,378
69.7%
68.7%
7,920 7,912 4,928
7,538 4,752
4,601
6,819 7,020
6,692

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
Average Rates (INR) Occupancy Rates

Both Occupancy and RevPAR have been constantly increasing over the years owing to :

 Domestic leisure witnessed marked Y-o-Y improvements, and contributes a higher share of room nights
than the foreign segment
 M.I.C.E2 (including weddings) has been a consistently growing demand generating segment with
potential for expansion
 Infrastructure investments such as the upcoming Mopa International Airport, conversion of the Konkan
railway tracks from single to double lining, development of bridges towards easing travel times across the
state and the development of several highways linking Goa to its neighbouring states have been made
 Amongst all micro markets North Goa recorded highest growth in both occupancy (3%) and ADR (3.7%)
in 2018/19

Hotelivate 2019 report

2. Meetings, incentives, conferences and exhibitions
 Upper-Midscale segment:
Rationale
 In 2017-18, 59% of the branded chain
affiliated hotel rooms were positioned Growing share of Upper Midscale
between Upper Midscale and Economy 85% segment
Segment 80%
 Supposed to further increase to 63% by 75%
2022-23 70%
65%
 Segment experienced major demand
60%
supply gap in the last 5 years 55%
 Expected to widen further leading to 50%
improved occupancy in these segments FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
 Significantly lower room inventory in North Industry Upper Midscale Midscale & Economy
Goa in this se.gment compared to Upper
Upscale and Economy
 Goa’s ADR amongst the highest PAN ..Demand Growth forecasted to
India in this segment outpace supply growth during FY17-21

19%
16%
Project positioned in Upper Midscale 12% 13%
8% 8%
segment, which has significant supply
deficit in North Goa
Midscale & Economy Upper Midscal Hotels Total Hotels
Hotels

Demand growh Supply growth

Hotelivate 2019 report
Project Location
 Arpora is centrally located between
the famous beach belt of North Goa
− Within 5 km radius from famous
Baga, Calangute and Anjuna
 High density of branded 4 star and 5
star hotels in 2 km radius
− Park Regis
− The Park Double Tree by Hilton
− Double Tree By Hilton
− Resort Rio
Fairfield by Marriott
− Lazy Lagoon by Sarovar
− Fairfield by Marriott Anjuna Beach Park Regis
 Distance to the Airport
− Existing in Vasco – 54 km Lazy Lagoon
− Reduced to 29 km from
upcoming MOPA airport The Park

 Distance to Panjim City – 15 km Project

Location
Resort Rio
Project is strategically
located close to the popular Baga Beach
North Goa beach belt
optimizing the proximity to
the upcoming MOPA airport Calangute Beach
About the Property
Location Segment Spread
Arpora, Upper across
North Goa Midscale 5,103 m2
Consistent growth in ADR Significant Supply Gap Ensuring abundant Open
and occupancy Y-o-Y spaces

 Rooms – 124
 Banquet Hall
 Conference Room
 Fitness Centre
 Lawns
 Swimming Pool
 Recreational Area
 Parking Area Double Height Lobby Swimming Pool – 370 m2
 Fully Equipped BOH

Architecture
inspired by Goan
heritage equipped
with modern best
in class amenities
124 Fully equipped rooms, average room size – 32m2
Property: Services & Utility
Accommodation Wellness Centre
Number m2/room m2/floor space
Standard Room 16 28
Gym / Yoga 60
Standard Pool View 24 28
Treatment Area 100
Deluxe Rooms 48 32
Recreational room 50
Deluxe Rooms Pool View 16 32
Swimming Pool 370
Private Villa Residences 12 42
Total 210
Total 124

Food & Beverage Meeting & Function Spaces

m2/floor space m2/floor space

Roof Top Restaurant 330 Lawns 1,400

Conference Hall 52
Bar – Lobby – Pool 144
Parking Space 520
Banquet Area 482
Total 2,342

Efficient use of space ensuring fully equipped hotel with BOH in 463 m2
Execution Team

Projects Delivered
Gautam & Associates • Radisson Zirakpur
Chief Architect & • Gautam Gupta • Best Western, Zirakpur
Interior Designer • Experience – 30 Years • Sarovar Portico, Baddi
• Sarovar Portico, Palampur

Projects Delivered
• Royal Enfield Café, Goa (25,000 Ft2)
EDIFICE CONSULTANTS
• ITC Seven Miles, Hoshiarpur (Under
MEP Consultant • Dinesh Sharma
Construction)
• Experience – 17 Years
• Centrade Business Park, Noida
(Under Construction)

Projects Delivered
• Currently serves as OSD for Revenue
Administrative Head & • Laxmikant Naik
Minster, Goa
Chief Contractor • Experience – 23 Years
• Prior was project engineer for Adwal
Palkar, owner SinQ hotels
 Market Landscape: North Goa
Upper Upscale Hotels # of rooms # of hotels
1,464 11
• Saturated market with
143 142 abundant branded supply
121
104 • Almost all the hotels with
100+ rooms
160 143 149 167 135 • ADR – c. INR 11,0001
104 96
Marriott IHCL Accor Hotels Hilton Worldwide Hyatt Hotels Hard Rock Park Regis
International

Upper Midscale Hotels # of rooms # of hotels

• Substantial growth
511 8
potential - least cluttered
78
segment
96 • Only 1 hotels with 100+
34 28 52
rooms
128 • ADR, INR 5,3001+ amongst
65 30
Carlson Rezidon HG LTH The Park Louvre HG the best in the country

Midscale Economy Hotels # of rooms # of hotels

1,106 14
47
111 • Saturated market with
52 occupancy below
197 52 National average1
125 125 130 46 43 39 34 • 5 hotels have 100+ rooms
85
20 • ADR of c. INR 3,6001
LTH Bloom Accor Hotels Louvre HG Marriott Royal Orchid Fern Hotels Sarovar Clarks In Cygnett
International

Source Company Website

# of rooms Hotel 1 # of rooms Hotel 2 # of rooms Hotel 3
Includes only Operational Rooms 1. STR
 COVID-19 Impact

 Quicker rebound is expected owing to it being – Motorable Leisure market

Impact on  #1 drive to destination for Mumbai, Pune, Bangalore, Hyderabad
 Branded Supply to see faster recovery
Goa  With work from home being part of new normal, average length of stay to increase
 Properties with open areas to be likely to be preferred by the guests

 Domestic tourists will be major demand drivers

 The ~25 Mn outbound Indian travelers to shift to the domestic leisure market
Outlook for  A large number of weddings and corporate conferences planned at international
Demand destinations will relocate to domestic destinations
 Leisure Upscale expected to recover faster than economy segment
 Expected demand CAGR 2020-24 : 3.3%

 Muted Market conditions will likely lead to delayed openings; some projects may
be on hold pending recovery
Outlook for  Financing challenges on account of negative sentiment for the sector is likely to
delay projects
Supply  Some properties may close on account of financial stress and not reopen for an
extended period of time, resulting in negative supply growth
 Expected supply CAGR 2020-24 : 2.8%

HVS Report
 Financial Projections – Revenue
Forecast
FY’231 FY’24 FY’25 FY’26 FY’27
Rooms 124 124 124 124 124
Occupancy 58% 64% 66% 68% 70%
Average Rate (INR) 4,800 5,040 5,292 5,557 5,834

INR Lacs
Room Income 1,267 1,450 1,571 1,716 1,854
F&B Income 253 290 314 343 371
Other Income 127 145 157 172 185
Total Revenue 1,647 1,886 2,043 2,230 2,410

Occupancy assumed to Average rate in FY23 F&B Income includes

reach 70% in 5th year of assumed at INR 4,800 banqueting revenue
operation up from 58% in which is at a discount of Other income includes
first full year of operations a ongoing rate in the area for services like pickup, drop,
gradual increase similar properties sight seeing etc.

For running the operations, management contract to be signed with any of the
leading brand. This shall ensure relatively robust revenue stream and efficient
operations
1. First full year of operations, scheduled to start in Jan’22
 Financial Projections – Expenses
Forecast
INR Lac FYE'231 FYE'24 FYE'25 FYE'26 FYE'27
Total Revenue 1,647 1,886 2,043 2,230 2,410
Employee Benefit Expenses 328 351 375 402 430
% of total income 20% 19% 18% 18% 18%
Power & Fuel 142 163 176 192 208
% of total income 9% 9% 9% 9% 9%
F&B Raw Material Consumed 89 102 110 120 130
% of F&B income 35% 35% 35% 35% 35%
Repairs & Maintenance 126 144 157 171 185
% of total income 8% 8% 8% 8% 8%
Stores & Supplies 86 98 106 116 125
% of total income 5% 5% 5% 5% 5%
Rent,Rates,Taxes & Insurance 22 25 27 30 32
% of total income 1% 1% 1% 1% 1%
Administrative & General 132 151 163 178 193
% of total income 8% 8% 8% 8% 8%
Advertisement & Sales Promotion 33 38 41 45 48
% of total income 2% 2% 2% 2% 2%
Other expenses 82 94 102 112 120
% of total income 5% 5% 5% 5% 5%
Total OPEX 1,040 1,166 1,258 1,365 1,471
Gross Operating Profit 608 720 785 865 939
Operating Margin 37% 38% 38% 39% 39%

1. First full year of operations, scheduled to start in Jan’22

 Case Study – Caravela Beach
Resort, Goa
INR 11,749 82.8%
210 Rooms
RevPAR Occupancy

Consistent increase in After Tax Consistent upward trend in RevPar

Return on Equity and Occupancy

2018/19 20.9%
82.8%
79.7% 79.2%
2017/18 18.1%
11,749
71.7% 72.0%
2016/17
11,018
21.4% 67.1%
10,367
10,110
2015/16 17.0%
9,042 9,030
2014/15 10.6%

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

2013/14 6.8%
RevPar Occupancy Rates

Listed Company, operating a single hotel –

Generating excellent returns for equity shareholders
1. IHCL 2019 Annual Report
 Case Study – Indian Hotels: Goa
Footprint
#9 72% 1,319
Hotels Occupancy Rooms

Maximum number for a Maximum amongst Maximum by a single

region PAN India2 Leisure destinations operator in Goa
PAN India

# of Operating Occupancy Rates across major cities

Hotel Name Location
Rooms Model in FY 203
Taj Fort Aguada North Goa 143 Owned
Goa 72.0%
Taj Holiday Village North Goa 142 Owned
Taj Exotica, Benaulim South Goa 140 Owned Ahmedabad 72.0%
Ginger Panjim Central Goa 135 Owned NCR 69.0%
Pune 67.0%
Ginger Madgao South Goa 57 Owned Benagluru 65.0%
Taj Hotel & Convention Central Goa 299 Managed Pan India 64.0%
SeleQtions Cidade De Kerala 63.0%
Central Goa 207 Managed Chennai
Goa 62.0%
Vivanta Panjim Central Goa 172 Managed Hyderabad 61.0%
Jaipur 60.0%
Ginger Dona Paula Central Goa 24 Managed Kolkata 59.0%
Total 1,319

Goa amongst the top performing geography on all operational metrics

in IHCL’s portfolio
1. IHCL 2020 Annual Report 2. NCR taken as Delhi and rest of NCR 3. Mumbai occupancy at 75%
Annexure

Property Renderings

Property Area Statement

Site Layout

Property Images

About the Property Owners – Royal Developers

Survey Plan
Property Renderings: Facade
Property Renderings: Lobby
Property Renderings: Swimming Pool
Property Renderings: Accommodation
Property Renderings: Accommodation
Property Area Statement

Total Area 54,928 SQFT

FAR 01:01
Permissible Built Area 54,928 SQFT

Area in SQFT Block 1 Block 2 Block 3

Ground Floor 9,328 2,154 5,226
First Floor 8,720 2,154 4,845
Second Floor 7,989 5,190
Third Floor 7,989
Terrace Floor 4,592
Total Built Area 38,618 4,308 15,261
Total Built Area 58,187
Stilt Parking 3,370
Within Permissible Area 54,817

Basement 10,000 SQFT

Site Master: Layout
First Floor: Layout
Second and Third Floor: Layout
Property Images
Property Images
Property Images: View from top floor
About – Royal Developers

Royal Developers, a partnership firm established on 15th May, 2018,

constituted by 14 Individuals, having rich business experience
across multiple sectors and industries like construction, hospitality,
retail.
Partners of Royal Developers have rich experience in hospitality
having operated multiple hotels and restaurants in Goa.
• Hotels Operated – Baga Hideout Resort, Resort Tio, Royal Woods

• Restaurant Operated – Tio Tillys Bar & Kitchen , Uncle Tillys

After successfully running these ventures the partners got together

and invested in a relatively bigger plot of land do develop it into a
upper midscale category hotel in Arpora.
Property Survey Plan
 Thank You

Contact

Adit Mittal - +91-750-777-5823

Project Director and Lead