HM Durmitor Zabljak HM Durmitor The company as HM Durmitor Zabljak - - PowerPoint PPT Presentation

HM Durmitor

Zabljak

HM Durmitor

 The company as HM Durmitor Zabljak (daughter company of Hotel Management AG from Lichtenstein) acquired in June 2004 hotels Jezera and Zabljak, organic farm with 2.500h of land, ski trail Stuoc with wire lifts, restaurant Momcilov grad and few other properties in town centre.  HM Durmitor is management company and property developer aiming to

• ptimize its property portfolio with partnership arrangements and in

cooperation with IFI and Property funds. Organizational restructuring and financial consolidation has been finalized in 2013 and HM Durmitor has prepared strategic development investment plan with precisely defined goals.

HM Durmitor

Vision To be recognized as synonym for synergy of quality in harmony with Durmitor incredible natural resources and become a leader in the region with unique touristic services combined with self produced

• rganic food.

Mission In hearth of National park Durmitor, with it’s products and services superb quality, stamp unforgettable impression to customer, emphasizing constant care of environment as eternal value.

Tourism in Montenegro

 2012 – visitors 1.440.000  Nights 9.150.000.  Average number of nights/visitor 6,4.  Average increase per year 5%.  From total visitors only 3.6% are visiting mountain centers.  25% of visitors use hotel accommodation.

• No. of nights

Zabljak

 National Park Durmitor is on UNESCO list of world natural heritage. Small town Zabljak is situated in the middle of the massif of Durmitor on 1450m above the sea and it is the highest urban place in Balkan Peninsula.  Zabljak is surrounded by 23 peaks over 2.200m above the sea level, 18 glacier lakes and nearby the magnificent Tara canyon, the deepest canyon in Europe, very popular throughout Europe with rafting tours at summer season. Durmitor has a capacity to become a center of adventure tourism with fantastic preconditions for all extreme sports and the logo of Montenegro touristic offer as a “Wild Beauty” is real Dormitor's badge.  Touristic season on Zabljak lasts throughout the year. During the winter Durmitor is covered with snow more than 120 days and has a longer ski season than other areas in Balkan. There are several ski paths, ski and snow board’s schools, ski equipment rentals, snow jet tours through Durmitor and Sinjajevina mountains.

Tourism on Zabljak

Durmitor – Montenegro leader in mountain tourism.

Distances:

 Podgorica 100 km  Boka Kotorska 140 km  Beograd 430km  Dubrovnik 170km

Hotel capacities in Zabljak

Categorization No.

• No. of rooms
• No. of beds

Hotels 4* 3 52 187 3* 3 70 169 2* 4 205 459 Total 10 327 815 Camps 3* 1 108 216 Private 2* 40 144 221 TOTAL 1252

• No. of tourist on Zabljak 2012

Foreign Local Total Arrivals 16.312 8.788 25.100 Nights 30.156 25.542 55.698 Average 1,85 2,91 2,22

From total visitors, Durmitor has 1.7% and from total nights 1.1% From total visitors 65% are foreigners.

Hotel Jezera

with 17 bungalows

 Location - 400m from Zabljak town center  Gross surface – 6.480sqm + 1.190sqm  Plot surface - 30.000sqm  Accommodation capacity – 220 beds and 104 beds in bungalows  Estimated market value- €6mio  Estimated investment- €6mio (after reconstruction hotel will have 170 beds and gross surface 7.850sqm)  Future market value for 4*hotel with wellness & spa center €15mio  Documentation and design has been provided and approved by Authorities  In cooperation with strategic partner management and staff should be provided

Investment repayment in hotel Jezera and 17 bungalows

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Hotel revenues 1,404,000 1,579,500 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,755,000 1,404,000 1,579,500 Restaurant revenues 292,000 277,400 321,200 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 292,000 277,400 Salaries

• 504,000 -504,000 -504,000 -504,000 -504,000 -504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• 504,000
• Mat. expenses
• 540,000 -567,000 -594,000 -735,000 -735,000 -735,000
• 735,000
• 735,000
• 735,000
• 735,000
• 735,000
• 735,000
• 735,000
• 735,000
• 540,000
• 567,000

Payment capacity 652,000 1,437,900 2,416,100 3,282,100 4,148,100 5,014,100 5,880,100 6,746,100 7,612,100 8,478,100 9,344,100 10,210,100 11,076,100 11,942,100 652,000 1,437,900 Investment 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

• No. of beds

250 Total capacity 25.550 Price HB € 65

• Av. occupancy

30%

• No. guest/year

27.000

• No. guest/day

74

• No. of employees

60

• € 2,000,000

€ 0 € 2,000,000 € 4,000,000 € 6,000,000 € 8,000,000 € 10,000,000 € 12,000,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Hotel revenues Restaurant revenues Salaries

• Mat. expenses

Payment capacity Investment

Hotel Zabljak

 Location - town center  Hotel surface– 2.500sqm  Plot surface -5.000sqm  Accommodation capacity – 54 beds  Reconstruction in final phase (additionally invested €1,7mio)  Estimated market value four stars hotel– €5mio  Management and staff has been provided by HM

Investment repayment in hotel Zabljak

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Net sales 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 Credit

• 178,426 -178,426 -178,426 -178,426 -178,426 -178,426
• 178,426
• 178,426
• Mat. expenses
• 231,000 -231,000 -231,000 -231,000 -231,000 -231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000
• 231,000

Salaries

• 170,000 -190,000 -200,000 -200,000 -200,000 -200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000
• 200,000

Payment capacity 145,574 449,579 565,154 680,728 796,302 911,876 1,027,451 1,143,025 1,437,025 1,731,025 2,025,025 2,319,025 2,613,025 2,907,025 3,201,025 3,495,025 Investment 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000

• No. of beds

70 Total capacity 91.250 Price HB € 40

• Av. occupancy

35%

• No. guest/year

9.000

• No. guest/day

25

• No. of employees

28 € (500,000) € - € 500,000 € 1,000,000 € 1,500,000 € 2,000,000 € 2,500,000 € 3,000,000 € 3,500,000 $1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Net sales Credit

• Mat. Expenses

Salaries Payment capacity Investment

Grand opening scheduled for June, 2013

 Location – 6km from town center, 3km with new wire transportation  Land surface – 200.000sqm  Austrian company Doppelmayer design detail plan for erection of 15km trails with complete infrastructure.  Planned investment - €10mio  Restaurant is on the top of ski trail  Availability of erection of exclusive ski resort  Management and staff has been provided by HM

Stuoc ski trail with restaurant Momcilov grad

 Location - 5km from town center  Runway length 1.800m, width 100m  Estimated investment value €10mio

Airport Durmitor

 Owner of 2.000ha of several land plots on Durmitor.  Possibility of erection of individual villas and apartments on exclusive selected plots with enchanting Mountain View and natural surroundings (HM Durmitor will obtain construction permits and licenses).  Possibility of intensive agriculture development, especially organic production and beef, sheep and goat breeding  Estimated market value aprox . €200mio.  Target: increase asset value by two times

Land plots owned by HM Durmitor

Existing status of Farm HM Durmitor

 Location 2km from the town center  150ha land plot with the fence for animal breeding  350ha of agricultural land for feed production, vegetable and grain growing  1.000 sheep  Cheese production and slaughter with cold box total surface 500sqm  Activity - animal breeding, organic production of sheep and goat cheese, beef, sheep and goat meet  Organic certificate and support of veterinary service from the state veterinary in Zabljak  Management and labor provided by local owner

Development plan in agribusiness of HM Durmitor

 Investment plan in phases that will be determined by executive development plan: Phase 1.  Purchasing 70 milking cows (Brown Swiss), 200 pregnant heifers (Angus), 1.000 sheep and 200 goats.  Introducing HACCP in daily operation Phase 2.  Fencing another 200ha and acquiring Angus beef potential in cooperation with Illinois State University from United States.  Improving the land status for agriculture production with modern organic production technologies  Branding products with logo: Organic made on top of Durmitor. Phase 3.  Optimizing value chain with new added value products.

Structure, linkage and investment plans

Hotels and restaurants

Hotel Zabljak

Market value €5mio

Hotel Jezera

NPV €6mio Planned investment €6mio Future market value €15mio

Restaurant Momcilov grad

Market value €1,5mio

Ski

Stuoc ski center

Planned investment €10mio

Airport

Planned investment €10mio

Agribusiness

Land

2.500ha - €250mio

Farm Processing facilities

E q u i t y i n c r e a s e

PPP IPA funds P a r t n e r s h i p

Management of HM Durmitor will coordinate this process with strategic partners, IFI, Commercial banks and EU IPA funds.

Geographic position