X

The main idea of the project is to re-design the existing Tatinets Hotel and create an all-new country house hotel – TATINETS Park Hotel – featuring a large and comfortable area of 34.7 hectares in Nizhny Novgorod region, Russia. It is designed to be a family-friendly hotel, offering holiday accommodation for parents with children of all ages as well as various health leisure and entertainment facilities. Besides TATINETS Park Hotel is going to be an ideal venue for corporate leisure breaks, team building events, conferences and workshops.
According to the project, the main hotel building offers 120 comfortable hotel rooms to accommodate up to 350 people. The new ‘hybrid’-rating system allows for combination of 3- and 4-star rooms to meet all kinds of customer requirements as regards accommodation cost and food options. TATINETS Park Hotel offering best leisure facilities and great comfort is sure to become one of the market leaders in Nizhny Novgorod region.
The project aims to refurbish and create infrastructure – build 3500 square meters of new facilities and refurbish approx. 10,000 square meters of old buildings.
The project is initiated by the VPT-NN Company (TIN 5257150159, www.vpt-nn.ru
Tel:(831)299-87-01, E-mail: avk@tatinets.ru), which owns the hotel.

The project estimate investment is 535.2m. rubles, which includes acquisition of the assets from Nizhny Novgorod Mechanical Engineering Plant and covers the project costs to be incurred during the refurbishment period before start of operations of the new hotel. The owner has invested approx. 200m rubles (as of 1 January, 2018). 

TATINETS Park Hotel Project Highlights:

  • Weak competition among country house hotels in Nizhny Novgorod region
  • Proximity (55 km) to Nizhny Novgorod, a Russian million-plus city:
  • great roads and motorways (1-hour drive).
  • river cruise ships and twin-hull boats sailing out of the river port in Nizhny Novgorod down the Volga River, one of the largest in Russia (2.5-hour trip).
  • Moscow-Kazan HSR with a station at 6 km from the hotel upon the HSR project completion (35-minute trip from Nizhny Novgorod and 115-minute trip from Moscow).
  • High level of TATINETS brand awareness (its name and location) among people living in Nizhny Novgorod region. Tours to TATINETS are available from 94 tourist operators (proactive selling). This means there will be no huge advertising costs after the refurbished hotel is launched and good sales will start soon.  
  • Excursion programmes can be designed for hotel guest offering tours around Nizhny Novgorod region, including Boldino, a place that inspired Alexander Pushkin, and Makaryev Convent.
  • Beautiful landscapes offering options for all-season leisure and entertainment facilities, including downhill runs and trails featuring platter pulls and an area for skiing and snow tubing in winter, cycling and hiking routes in summer. There are also indoor and outdoor sports grounds and various entertainment and leisure areas for hotel guests of all ages.
  • Direct access to the Volga river (400 meters) offers an opportunity to have a wide summer beach area and build a quay for twin-hull vessels and boats.
  • Natural water springs covering 100% of the hotel needs in potable water.
  • The hotel has all the utilities including gas, electricity, water supply, disposal and drainage systems. Among the technical facilities available there are water-supply pumping and ground-water tapping stations, a voltage transforming station, a high-pressure wastewater pumping station, a state-of-the-art automated boiler house, a diesel power plant as the operating reserve, a high voltage power line and internal circuit lines.

Total investments require - EUR 7 182 thou. Level of planning capacity (67.3%) will be reached up to the sixth year of operation.

Year of operation

1

2

3

4

5

6-th and later

Exchange rate EUR/RUR*

74,5

74,5

74,5

82,2

82,2

82,2

Average room occupancy,%

0,0%

75,0%

85,0%

90,0%

95,0%

100,0%

Total income, thou. EUR

0

2 299.9

2 362.3

2 501.2

2 640.2

2 779.1

EBITDA, thou. EUR

-181

1 306.7

1 381.2

1 496.3

1 611.3

1 726.3

Key figures of room supply:

 

Room occupancy, %

0,0%

50,5%

57,2%

60,6%

63,9%

67,3%

ADR, EUR

52

52

52

47

47

47

RevPar, thou. EUR

0

26

30

29

30

32

Total number of guests,

pers*days

0

55 098

62 445

66 118

69 791

73 464

*according to basic predict of the Ministry of Finance of the RF for budget planning till 2035.

Name of figure

unit

VA

Number of rooms

Pcs

118

Annual average room occupancy, %

%

67,3%

ADR (Average daily room rate)

EUR

47

Average bill of additional cost per guest

 

 

with accommodation

EUR per day

8.1

with accommodation – one day visit

EUR per day

12.1

 

Name of figure

unit

VA

Total revenue, ann.

EUR thou.

2 779.1

EBITDA, ann.

EUR thou.

1 726.3

EBITDA margin

%

62.1%

Discount rate

%

16.5%

Calculation period

years

10

Pay-back period

years

5.67

Discounted pay-back period

years

9.75

Net present value (NPV)

EUR thou.

65.9

Internal rate of return (IRR)

%

16.8%

Total volume of investments

EUR thou.

7 182.4

incl. current investments (till now)

EURthou.

2 818.0

Return on investments (ROI)

%

0.92%

EBITDA accumulative for calculation period (10 years)

EUR thou.

12 286