Sovereign Collection Hotels Business Plan — Appendix B: Assumptions & Capex Register

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Assumptions & Capex Register

Development capital expenditure register (R m)

Category

Amount

Depreciation life

Land acquisition

45

Not depreciated

Building & construction

240

40 years

Interior design & FF&E

95

10 years

Kitchen & restaurants

30

8 years

Spa & wellness

18

10 years

Technology systems

15

5 years

Landscaping

12

15 years

Working capital

35

n/a

Marketing & brand launch

10

n/a

Contingency

20

n/a

Total

520

Assumptions register

Parameter

Value / treatment

Repo / prime rate

7.0% / 10.5% (SARB, mid-2026)

Senior debt

R290m at 12.75% (prime + 225bps); 2-yr grace then 13-yr amortisation

Equity

R230m

Corporate tax

27%, assessed losses carried forward

FF&E reserve

~3% of revenue from Year 2 (10-yr depreciation)

Working capital

2% of revenue

Revenue mix

Accommodation, F&B, conferences & events, wellness, other

Exit multiple

8×–12× EV/EBITDA (cap rate ~8–12.5%)

Phase-2 capital (disclosed)

~R875m additional (Cape Town / Durban / Kruger)