Savannah & Sakura Hospitality Group — Valuation & Exit Strategy
The valuation framework, the computed returns and the exit strategy - the exit-multiple range and the ownership outcomes underpinning SSHG.
Section 15 · Business Plan
Valuation & Exit Strategy
The valuation framework, the computed returns and the exit strategy – the exit-multiple range and the ownership outcomes underpinning SSHG.
The Group is being built to institutional scale with a clear
value-realisation pathway for investors. By Year 5 the platform is
projected to generate EBITDA of R322m, supporting a credible exit on a
strategic or financial sale, recapitalisation or public listing.
15.1 Valuation Framework
On the sponsor’s planning multiple of 12x Year-5 EBITDA, the
enterprise value at exit is approximately R3,864m, equating to an equity
value of around R3,929m after netting the modest closing net-debt
position. The exit-multiple sensitivity below frames the range of
outcomes; multiples in the 8x–14x band are consistent with comparable
premium hospitality and lifestyle-brand transactions.
| Exit multiple | Enterprise value (R’m) | Equity value (R’m) | Investor IRR | Equity multiple |
|---|---|---|---|---|
| 8.0x | R2,576 | R2,641 | 56.5% | 5.5x |
| 10.0x | R3,220 | R3,285 | 65.2% | 6.8x |
| 12.0x | R3,864 | R3,929 | 72.7% | 8.1x |
| 14.0x | R4,508 | R4,573 | 79.4% | 9.4x |
Table 22. Exit valuation sensitivity across
EBITDA multiples (investor stake basis).
15.2 Returns: Computed Model vs. Sponsor Target
The integrated model computes high headline returns on the investor
stake (base-case IRR of 72.7% at a 12x exit). These outcomes are
sensitive to full delivery of the revenue ramp and exit multiple, and
should be regarded as aggressive and execution-dependent. For planning
and underwriting, the sponsor anchors to a more conservative target IRR
of 35%-40% with an equity multiple of approximately 10.0x and payback
near 4.5 years. The computed range is presented transparently for
investor scrutiny rather than as a forecast.
15.3 Exit Routes
| Exit route | Rationale & likely counterparties |
|---|---|
| Strategic trade sale | Global hospitality groups, luxury-lifestyle and leisure operators seeking African platform entry |
| Financial sale / PE | Private-equity and infrastructure funds attracted to scaled, cash-generative hospitality assets |
| Recapitalisation | Partial liquidity via refinancing once the platform is de-risked and cash-generative |
| Public listing (JSE / dual) | Longer-term option at scale, given diversified, branded, institutional-grade earnings |
Table 23. Potential exit routes and
counterparties.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Savannah & Sakura Hospitality Group (Pty) Ltd.