WELIGAMA HOTEL PROPERTIES PVT LTD
Issue of up to 195,000,000 Ordinary Voting Shares
at LKR 9.00 per share
.
647,883 Rooms
3,800 Properties
Renowned
Global Brand
74 Countries, Worldwide
85 Year History
18 Prestigious Brands
$12 Billion Revenue a year
Market Coverage
74 countries across five
continents
Marketing
Annual SG&A expenses of
$645 million
“Marriott Rewards”
• Over 40 million members
• Industry’s leading loyalty program
Reservation System
Supreme
Advantage
• MARSHA – first globally integrated
reservations system
• Generated more than 95 million
reservations in 2012
Reservation Centers/Web/Mobile
•
•
•
•
•
12 language sites
2,500 associates
World’s largest lodging web site
9th largest consumer retail website in the world
30 million visitors per month
Daily Financial Times
The Management Agreement
25 year management contract with
- Management fee:
- Base Royalty:
- International Marketing Service:
0.25% of Gross Revenue
1.75% of Gross Revenue
1.50% of Gross Revenue
- Incentive Fee:
Accounting Period
Percentage of Operating Profit
1-24
6%
25-60
7%
61 and thereafter
7.5%
The Management Agreement Cont….
Performance Test & Cure Payments:
Performance Standard:
•Minimum 85% of the selected pool of hotels
•Performance Indicator is RevPAR
In the event Marriott fail the “Performance Test” they have the
right to “Cure” by paying the difference.
If Marriott choose not to cure, the owner has the right to terminate
the management agreement.
Trusted partnerships
Interior Designer
Wilson Associates, Singapore
One of the top hospitality interior design
firms in the world, chosen from Marriott’s
approved list of designers. More than one
million guestrooms designed, worldwide.
Landscape Architects
Belt Collins, Thailand
One of the top international design firms.
Over 16,000 projects in 70 countries around
the world.
EAST WEST ENGINEERING SERVICES (PVT) LTD
Construction
East West Engineering Services (Pvt) Ltd
As a subsidiary of East West Properties Plc,
Development Cost: $ 162,000 per key
Inclusive of Land, cost over runs and reserves for interest and capital repayments
Total cost $32.4 million development cost
Interior works
Landscaping
Electro-mechanical works
Finishing works
Staff training
Testing
Commercial operation
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec - 13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Civil constructions
Steady Progress
Construction already
underway
Opening Nov 2014
Visit www.marriott.lk to track
project schedule
Performance Forecast
Occupancy rate
ARR (LKR)
Total revenue (LKR mn)
NOI (LKR mn)
PAT (LKR mn)
Occupancy rate
ARR (LKR)
Total revenue (LKR mn)
NOI (LKR mn)
PAT (LKR mn)
FY15
45%
23,634
641
182
57
FY21
65%
31,672
2,467
781
692
FY16
55%
24,816
1,635
543
417
FY22
65%
33,255
2,593
818
741
FY17
60%
26,056
1,870
632
505
FY23
65%
34,918
2,724
857
793
FY18
65%
27,359
2,124
716
597
FY24
65%
36,664
2,863
898
848
FY19
65%
28,727
2,233
744
634
FY25
65%
38,497
3,009
940
796
FY20
65%
30,164
2,347
777
677
48% ROI in two years
Relative Valuations – PBV method
Net asset value : Approx LKR 4.80
@ sector PBV of 1.8x →LKR 8.70
Relative Valuations – PE method
EPS in 2015/16 : LKR 0.90
@ sector PE of 17.0x → LKR 15.80
@ Marriott PE of 23.0x →LKR 21.30
DCF based valuation
RRR (until FY20) : 16%
RRR (after FY20) : 14%
Value per share → LKR 11.80
Weighted price
LKR 13.30
Marriott
International
Management
Agreement
A Great
Brand
Development
Cost
Best in the
Country
End Result
Great Formula for
Success!
Lower
than the
industry
Board of Directors
Nahil Wijesuriya
A.M.I.Mar E
Chairman
Contact No: +94 777 306 888
Email: nahil@eastwest.lk
Nishantha Sooriyaarchchi
Dip. In Acct(HNDA), CBA
Finance Director
Contact No: +94 777 880 297
Email: nishantha@eastwest.lk
Placement Managers
Bank of Ceylon
P A Lionel
DGM International Treasury and Investments Contact No:
+94 773 850 220
Email: dgmiti@boc.lk
Lanka Securities (Pvt) Limited Kosala Gamage –
Managing Director Contact No: +94 712 735 994
Email: kosala@lankasec.com
Vijitha Wijesuriya
Bsc.(Hons) ARCS
Managing Director
Contact No:+94 777 787 994
Email: vijitha@eastwest.lk
Anika Wijesuriya
BA (Hons)
Director
Contact No: +94 777 748 300
Email: anika@eastwest.lk
Blog: www.Marriott.lk
For information on:
•Concepts
•Site images
•Construction Progress
Thank you.