Sovereign Collection Hotels Business Plan — Appendix A: Detailed Financial Statements

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Appendix A · 21 of 23

Detailed Financial Statements

Revenue by department (R m)

Department

Year 1

Year 2

Year 3

Year 4

Year 5

Accommodation

72

108

150

196

255

Food & beverage

45

68

98

130

170

Conferences & events

18

32

50

72

100

Wellness & spa

7

12

18

25

33

Other (mgmt, residences, memberships)

3

5

9

12

17

Total revenue

145

225

325

435

575

Flagship operating KPIs (144 keys)

Metric

Year 1

Year 2

Year 3

Year 4

Year 5

Occupancy

52.0%

60.0%

65.0%

68.0%

70.0%

ADR (ZAR)

R3900

R4100

R4300

R4500

R4700

RevPAR (ZAR)

R2028

R2460

R2795

R3060

R3290

Total headcount

245

297

361

425

489

Credit & coverage metrics

Metric

Year 1

Year 2

Year 3

Year 4

Year 5

Senior debt (closing, R m)

290.0

290.0

267.7

245.4

223.1

DSCR (x)

0.87x

1.57x

1.55x

2.34x

3.40x

Interest cover (x)

0.87x

1.57x

2.49x

3.87x

5.82x

Net debt / EBITDA (x)

7.3x

3.8x

1.9x

0.9x

0.1x

Closing cash (R m)

57.1

69.8

90.8

132.9

208.1

Profit reconciliation (R m)

Line

Year 1

Year 2

Year 3

Year 4

Year 5

EBITDA

32

58

92

132

182

Less depreciation

(24.9)

(24.9)

(25.5)

(26.5)

(27.8)

Less interest

(37.0)

(37.0)

(37.0)

(34.1)

(31.3)

Profit before tax

(29.8)

(3.8)

29.5

71.4

122.9

Less tax

0.0

0.0

0.0

(18.1)

(33.2)

Net profit after tax

(29.8)

(3.8)

29.5

53.2

89.7