Investment Proposal 1
Executive Summary 2 Key Figures ProductProfile Project name Location Capacity Cubature 62,588 m 3 Gross areas 16,157 m² Water area 1,385 m² Outside facilities 6,459 m² Project time schedule Total project costs General Key Figures The idea of Thalassa LIFE Healing Hotel is to offer an uniqe medical resort offering a variety of services in the realm of healing, prevention, and wellbeing. The hotel aims to become one of the hotspots of international medical tourism targeting those who are in need of preventive care. Thalassa LIFE Healing Hotel Property located between Larnaca International Airport (20 minutes) and Limassol (25 minutes), and about 40 minutes drive from the capital (Nicosia). 130 rooms, 280 beds 30 months 30 Mio. Rooms 130 Beds 280 Specifying Key Figures Occupation rate 70%, year round operation due to medical specialization Average duration of stay 7 days Average room rate (ARR) 134.24 Revenue Per Available Room (RevPAR) 93.97 Sold beds per year 68,000 Number of treatments in medical spa 113,000 (including activities in group therapy) Number of treatments per overnight stay 1,65 GOP 1 4,382,391 EBITDA 3,412,961 Pay-back Period 6 years 2
Investment and Operator Hotel and Spa Development Team Radisson and the Team A typical hotel management contract consists of a mix of commercial and legal terms. The suggestion below (see chart) is just a rough outline of how the relationship of Radisson an other partners might be. The builder owner and its consultants have a strong vision of how the Medical Spa could look like. Prof. Dr. Illing has identified Medical Spas as market niche and much more profitable than just a normal spa offering conventional services (see financial analysis, chapter6). Aspects such as operating fees, operator guarantees, performance measures, owner approval, capital Expenditure, and noncompete clause will have to be negotiated. Operator and Responsibility Investment-friendly Environment The Cypriot Government has established a number of incentives to attract foreign direct investment into the country: 1. Business friendly tax environment. 2. Sound legal system. 3. Low operational costs. 4. EU and Eurozone member. 5. Attractive and transparent tax system offering low corporate tax at 12,5%, no capital gains on sale of securities and extensive Double Tax Treaty network. 6. One of these is a citizenship-by-investment program that grants full Cypriot citizenship to those that invest more than EUR 2.5 million in real estate and who meet certain other requirements. In April 2013, the Government of Cyprus introduced changes to its citizenship-by-investment program. The changes include the introduction of the Major Collective Investment (MCI) route which reduces the minimum investment amount from EUR 5 million to EUR 2.5 million when several applicants jointly apply for citizenship with a total minimum investment of EUR 12.5 million. Investor and Licenses ThalassaLIFE Healing Hotel Hotel Condo Healing Spa Operated by a well-knownand international hotel chain Operated by the hotel Responsible: Prof. Dr. Kai illing, a head physician from a well-known Medical Spa) Investor 1: EIB (European Investment Bank): 50% (provisional commitment already delivered) Investor 2: Is being searched Hotel license: (commitment already delivered) 3
Business Unit #1 - Hotel Alternative Plan 4
Business Unit #1 - Hotel Functional Diagramm Ground Floor Source: Wienands Plan 5
Business Unit #2: PuriRelief Spa Therapies and Interventions Overview Well-being Medical specialization Body styling Relaxation Weight loss and body shape Physical fitness and performance Locomotivesystem and back pain relief Respiratory diseases and resistantimmune system Relaxation and burnout prevention Healing Water World Healing Water Chapel Salt river Meditation Beauty Treatments Fitness Healthy nutrition Sea, sun, ocean Sweet water, salt water, sulfurous water Diagnosis Therapy proposals Analysis of risk factors, cardiologic check-up, determining metabolic type ThalassoTherapy, diet, medical fitness centre, aquabikes, consciousness raising, healing water world, medical beauty Exercise electrocardiogramm, spiroergometric, dermatological skin analysis Diet, exercisetherapy, medical fitness centre, outdoor-sports, aquabikes, underwatergym, medicalmassage, physiotherapy, beauty Analysis of previous medical reports, cooperation with orthopaedics and radiology, spine-check Traditional Chinese Medicine(Acupuncture), occupational therapy, physiotherapy, medical herbs therapy, osteopathy, neural therapy, Qigong, Fascia therapy COPD diagnosis (chronic obstructive pulmonarydisease), pulmanory function diagnostics Respiratory Ocean Walking, Medical HerbsTherapy, Respiratory Saltwater+Herbs Pool, Thalassotherapy,baths, inhalations Stress status test, sleep clinic, laboratory tests on neurostress, trace minerals, vitamins, aminoacids, intestinal flora, TCM diagnosis HealingWater Chapel, Healing Water World, guided relaxation, talk therapy, detox, medical massage, lymphatic drainage, TCM medical herb therapy, medical fitness centre, outdoor exercisetherapy, Yoga, progressive muscle rel. Staff requirements Certified sports scientist, medical medicalbeauti-cian, nutritionist Certified sports scientist, osteo-path, nutritionist Osteopath, acupuncturist, physiotherapist ENT physician, physiotherapist Psychologist, relaxation trainer, dermatologist, nutritionist 6
Sales Analysis 1 Business Unit #1 7
Sales Analysis 2 Business Unit #2 Medical Department and Well-being Area Therevenue from th nd businessunit(medicalspa) is generatedfrom about100,000 to be delivered per year. The pricing strategy is based on the number and type of treatments, as well as other promotional criteria, eg. season, loyalty, etc. An estimate of the popularity (based on price & duration) is made in order to calculate the expected revenue as accurately as possible. 8
Cost Analysis 1 Direct Expenses 9
Costs Analysis 2 Indirect Expenses 10
Costs Analysis 3 Staff Costs 11
Break-Even Analysis Operating Results 12
Working Capital Capital Spending 13
Cash Flow Analysis Net Cash Flow and Expected Cash Flow 14
Sofronios Potamitis Cyprus: Thalassa Hotel Governors Beach, Skiathos 5 7740 Tochni, Larnaca Mobile: +357 99563299 Email: director@cyprusvillages.com.cy www.thalassacyprus.com FH Prof. Dr. Kai illing/tdc Austria: Flöcking 194, 8200 Gleisdorf Germany: Annastr. 18, 12247 Berlin Mobile: +43(0)6888198807 Email:info_tdc@web.de www.med-tourism.eu Contactus 15