|
Term |
Definition |
|---|---|
|
ADR |
Average daily rate — room revenue divided by rooms sold |
|
RevPAR |
Revenue per available room — ADR multiplied by occupancy |
|
EBITDA |
Earnings before interest, tax, depreciation and amortisation |
|
DSCR |
Debt-service cover ratio — EBITDA divided by interest plus principal |
|
DSRA |
Debt-service reserve account — cash reserved to cover debt service |
|
ICR |
Interest cover ratio — EBITDA divided by interest |
|
FF&E |
Furniture, fixtures and equipment (and the reserve to renew them) |
|
MICE |
Meetings, incentives, conferences and events |
|
MOIC / IRR |
Multiple on invested capital / internal rate of return |
|
Cap rate |
Capitalisation rate — net operating income divided by asset value |
|
SAM / SOM |
Serviceable addressable / obtainable market |
Methodology and basis of preparation
This plan was prepared from the sponsor brief with headline revenue and EBITDA preserved exactly. All statements below EBITDA were independently modelled: component depreciation from the capex register; interest on a R290 million senior development facility (12.75%, two-year grace then thirteen-year amortisation); South African corporate tax at 27% with assessed-loss carry-forward; an FF&E reserve at ~3% of revenue; and working capital at 2% of revenue. The income statement, balance sheet and cash flow are integrated so the balance sheet ties to zero in every year, enforced by an automated assertion (maximum difference: 0.0). Returns, scenarios, sensitivities and debt-service metrics were computed independently. Hotel-market statistics are directional estimates from public industry sources (STR/CoStar and tourism data) current to mid-2026 and should be re-verified in due diligence. The Phase-2 capital requirement is an analyst estimate disclosed for completeness and is not consolidated into the three statements. This document is not an offer of securities.
Sovereign Collection Hotels (Pty) Ltd · Business Plan & Investment Prospectus · July 2026 · Private & Confidential