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marjan_island
rixos-bab
1
Rixos Bab Al Bahr 647 keys
marjan-island
4
Marjan Island Resort & Spa 299 keys
rixos-bab-al
2
Bab Al Bahr Residences 512 units
pacific-al-marjan-island-2
5
Bab Al Bahr Residences 512 units
double-tree-hilton
3
Double Tree by Hilton 723 keys
image2
image3
1 img43
Movenpick
2 img44
Address RAK
3 img45
Rove Al Marjan Island
4 img46
Radisson
5 mahra-resort
Al Mahra Resort
6 img47
Saudi German Hospital
7 img48
Hampton by Hilton
8 building1
Uniestate Living Bay
9 img49
Avani Hotels
10 img50
Hotel Resorts
11 building2
Supercasa Hotel
12 img51
Conrad Hotels
13 img52
Movenpick
14 img53
Barcelo Hotel Group

TURNKEY PROJECTS

LAND SALE

Land sale on Al Marjan Island for a variety of uses, including:
  • Hospitality
  • Mixed use
  • Residential
  • Retail
  • Leisure

Land sale with pre-approved operator offering incentives such as operating profit guarantees over an extended period

Healthcare/wellness
Staff accommodation

Ticket size:
USD 5 – 10 million

TURNKEY INVESTMENT

Rove Hotel

441-key, 3-star beachfront hotel on Al Marjan Island

Developer-provided, minimum operating profit guarantee of 7% over 7 years

Barcelo Hotel

602-key, 5-star beachfront hotel on Al Marjan Island

Developer-provided, minimum operating profit guarantee over 10 years

Ticket size:
USD 80 – 160 million

JV’s & FINANCING

JV structure with:

Hotel operator
Retail operator

Ticket size:
Over USD 10 million

DEVELOPMENT MANAGEMENT SERVICES

Development management of a real estate project on behalf of clients like hotel operators and owners, and high-net-worth individuals.

Fees: 3 – 5% of
construction budget

ESTIMATE OF POTENTIAL RETURNS FOR A
HYPOTHETICAL 200-KEY HOTEL INVESTMENT

Al Marjan Island
Ras Al Khaimah
Palm Jumeirah
Dubai
Saadiyat Island
Abu Dhabi
Occupancy (%)
Average daily rate (USD) 210 300 232
RevPAR (USD) 151 240 Sweden
Profit conversion (%)
Site acquisition and construction cost
(‘000 USD)
68,065 87,602 71,485
Equity IRR (%)

70%

Over 70%
occupancy

$175

ADR

$123

RevPAR

Source: Colliers International, RAK – Emirate of Opportunity Study, 2019

Wellness Resort

resort1
Assumptions
Sample land area: 1 SqFt
Floor area ratio: 0.32
GFA: 0.32
Land price: USD 95 per SqFt (Land)
Construction cost: USD 205 per SqFt (GFA)
Soft cost: 8.00% of construction cost
Opex to revenues: 55% of revenues
Exit cap rate: 9.00%

Stabilized
performance
KPIs

Occupancy
70%

ADR
USD 367

Other revenues
105% of room rev.

Return of investment
16.00%

Project IRR
17.00%

Payback period
9 - 10 years

Cash flow is based on USD per SqFt of land

Project cash flow
USD MN
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Revenues 54 55 57 58 60
Opex (30) (30) (31) (32) (33
Land Cost (67) (29)
Construction Cost (20) (20) (13) (13)
Professional Fees (4) (1)

Serviced Apartments

mask-group
Assumptions
Sample land area: 1 SqFt
Floor area ratio: 2.75
GFA: 2.75
Land price: USD 95 per SqFt (Land)
Construction cost: USD 122 per SqFt (GFA)
Soft cost: 8.00% of construction cost
Opex to revenues: 55% of revenues
Exit cap rate: 9.00%

Stabilized performance KPIs

Occupancy 70%

ADR USD 177

Other revenues 30% of room rev.

Return of investment
16.00%

Project IRR
22.00%

Payback period
9 - 10 years

Cash flow is based on USD per SqFt of land

Project cash flow
USD MN
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Revenues 187 192 197 202 207
Opex (103) (106) (108) (111) (114)
Land Cost (67) (29)
Construction Cost (101) (101) (67) (67)
Professional Fees (22) (5)