TANGERINE HOTELS     Brainwave Management     Services     November 2010
Executive Summary
Tangerine Hotels         Executive Summary          An experienced Hospitality Management Team is looking to implement th...
Concept Introduction
Tangerine Hotels         Concept Introduction          Tangerine will be competing in the 4 Star Hotel Apartments/ Luxury...
Tangerine Hotels         Concept Introduction          Homely atmosphere compared to a conventional hotel room          ...
Tangerine Hotels        Concept Introduction         Focus on Luxury Lifestyle Apartments for Long & Short stays        ...
Tangerine Hotels        Design         Modern, Trendy, Chic & Cool         Touch of Finesse         Elements of nature ...
Tangerine Hotels        Target Market         Tourists         Western Expats         Working Professionals in the age ...
Rooms
Tangerine Hotels         Rooms          Studio          1 Bedroom          2 Bedrooms          Rooms will have cable T...
Food & Beverages
Tangerine Hotels      All Day Dining      o   80 covers      o   Should give a feel of Home Kitchen      o   45 covers ind...
Tangerine Hotels      Specialty Restaurant      o   International Cuisine      o   60covers      o   20 covers Bar14      ...
Tangerine Hotels      Pool Bar      o   40 covers      o   60 Sun Lounges      o   Same level as coffee shop15            ...
Tangerine Hotels      Rooftop Bar / Lounge (with covered roof)     o   Sheesha, Mezze & Tapas     o   80-100 covers     o ...
Facilities
Tangerine Hotels      Board Rooms / Meeting Rooms      o   15 covers, all round table for Board Room      o   80 covers ca...
Tangerine Hotels      Ball Room     o   400 covers     o   3 doors with pre function area19                               ...
Tangerine Hotels         Other Facilities (Optional & Location dependent)          Essentials Supermarket     o     Super...
Concept Positioning &     Marketing
Tangerine Hotels      Positioning of Tangerine          Tangerine will be competing in the market void set between 4 star...
Tangerine Hotels      Marketing & Promotion          Press Conferences & Promotional Campaign          Discount Vouchers...
Development and Expansion         Plans
Tangerine Hotels      Development & Expansion Plans          The Management Team is looking at the metros in India for ho...
Indian Hotel Industry
Tangerine Hotels          Indian Hotel Industry           The Indian travel & tourism is ranked 5th in the long-term (10-...
Tangerine Hotels          Road ahead for the Indian Hotel Industry           The demand for travel & tourism in India is ...
Tangerine Hotels          Low Phase to Growth Phase           The financial year 2008-2009 was not a very good year for t...
Tangerine Hotels          Low Phase to Growth Phase            2010 is expected to see an increase in Revenue Per Availab...
Tangerine Hotels      Growth in Hotel Rooms                           No of Rooms                          100,000        ...
Tangerine Hotels      Occupancy Rate for Indian Hotel Industry                  80.0%                            Avg 62.2%...
Tangerine Hotels       RevPAR for Indian Hotel Industry (in INR)                                                          ...
Tangerine Hotels      RevPAR numbers based on hotel status            9000            8000            7000            6000...
Tangerine Hotels      Occupancy Rate numbers based on hotel status          85.0%          75.0%          65.0%          5...
Tangerine Hotels          Financial Aspects of the Hotel Industry           A financial analysis was done on India’s 6 bi...
Tangerine Hotels      Average Revenue Growth            30.0%                                                             ...
Tangerine Hotels      Average P/E valuation              35.0x                                                 32.5x      ...
Indian Hospitality Industry         Trends
Tangerine Hotels          Indian Economy           Indian economy is expected to grow at projected GDP of more than 7% wh...
Tangerine Hotels          Indian Hotel Market           The Indian Hotel Market has been growing from the days of 1990s w...
Tangerine Hotels          Hotel Brand Growth in India           There is a growing perception of Indian markets as a lucr...
Tangerine Hotels          The M.I.C.E. Business Opportunity in India           Meetings, Incentive, Conventions, and Exhi...
Tangerine Hotels          Hotel Development Costs            Hotel Development costs in India are expected to be rational...
Tangerine Hotels          Financial Aspects of the Hotel Industry           Industry has been lobbying for infrastructure...
Tangerine Hotels          Food and Beverages (F&B) Concepts           Recent years have seen rapid growth of standalone r...
Management Team
Tangerine Hotels          Management Team      Management           Mr. Ashwin D’Cunha ; Managing Director           Mrs...
Tangerine Hotels          Ashwin D’Cunha ; Managing Director           17 years experience in Food & Beverages, Project M...
Tangerine Hotels          Ashwin D’Cunha ; Managing Director      Major Projects           Pre-Opening and Post Opening M...
Tangerine Hotels       Ashwin D’Cunha ; Managing Director       One & Only Royal Mirage ,     Elite Hospitality ,   Bombay...
Tangerine Hotels      Snigdha Banerjee ; Director Operations         14 years experience in Food & Beverages, Project Man...
Tangerine Hotels      Snigdha Banerjee ; Director Operations      Major Projects         Pre-Opening and Post Opening Man...
Tangerine Hotels      Snigdha Banerjee ; Director Operations        Taj Group of Hotels , India   One & Only Royal Mirage ...
Tangerine Hotels      Shivraj Johar ; Business Head         19 years experience in Food & Beverages industry spread acros...
Tangerine Hotels      Shivraj Johar ; Business Head      Major Projects         Opened and Operated Taj Hotel in Maldives...
Tangerine Hotels      Shivraj Johar ; Business Head         Taj Resort Maldives          Gaylord Restaurant,    Taj Reside...
Tangerine Hotels      Sameer Deshpande ; Operations Manager         15 years experience in Hospitality Operations and Man...
Tangerine Hotels      Sameer Deshpande ; Operations Manager      Major Projects         Operations Manager for Apartment ...
Tangerine Hotels      Sameer Deshpande ; Operations Manager        Elite Hospitality ,      Radission Resorts & Spa,   Sar...
Tangerine Hotels      Rahul Kotyan ; Food & Beverages         14 years of experience in Food & Beverages operations withi...
Tangerine Hotels      Rahul Kotyan ; Corporate Head Food & Beverages      Major Projects         Mumbai Operations for Li...
Tangerine Hotels      Rahul Kotyan ; Food & Beverages                                         Ramee Hotel, Dubai        Fl...
Tangerine Hotels      Shaik Mohammad Sultan ; Corporate Chef         Culinary professional with more than 20 years of exp...
Tangerine Hotels      Shaik Mohammad Sultan ; Corporate Chef      Major Projects         Setting up 2 Hotel properties’ k...
Tangerine Hotels      Shaik Mohammad Sultan ; Corporate Chef       Elite Resort & Spa ,        Majorda Resort & Spa,      ...
Tangerine Hotels      Origami / Bloombox ; Sales & Marketing (optional)         25 years experience in Hospitality Sales ...
Tangerine Hotels          Praveen Roy ; Advisor           25+ years stalwart of Indian Hospitality Industry           He...
Financials
Tangerine Hotels      Financial Assumptions for a 80 room 4 Star Hotel with Luxury Apartments         Starting with 80 ro...
Tangerine Hotels      Financial Assumptions      Operations         Average revenue per room & Occupancy Rate lowest duri...
Tangerine Hotels      Source & Use of Funds (INR lacs)                                  Sources of Funds                  ...
Tangerine Hotels       P&L Statement (INR lacs)                                         Year I     Year 2    Year 3    Yea...
Tangerine Hotels       Debt Payment Ability(INR lacs)                        Year I          Year 2      Year 3      Year ...
Tangerine Hotels         Exit Return with Enterprise Value @3.5x of revenue (INR lacs)                              Year I...
Tangerine Hotels      Financial Assumptions for a 80 room 4 Star Hotel with Luxury Apartments         Starting with 80 ro...
Tangerine Hotels      Financial Assumptions      Operations         Average revenue per room & Occupancy Rate lowest duri...
Tangerine Hotels      Source & Use of Funds (INR lacs)                                   Sources of Funds                 ...
Tangerine Hotels       P&L Statement (INR lacs)                                        Year I            Year 2          Y...
Tangerine Hotels       Debt Payment Ability(INR lacs)                        Year I          Year 2      Year 3      Year ...
Tangerine Hotels         Exit Return with Enterprise Value @3.5x of revenue (INR lacs)                              Year I...
Financials in USDLand Buyout Model
Tangerine Hotels- Land Buyout      Source & Use of Funds ($ million)                                  Sources of Funds    ...
Tangerine Hotels       P&L Statement ($ million)                                        Year I         Year 2      Year 3 ...
Tangerine Hotels       Debt Payment Ability($ million)                        Year I          Year 2      Year 3      Year...
Tangerine Hotels         Exit Return with Enterprise Value @3.5x of revenue ($ million)                              Year ...
Financials in USDLand Lease Model
Tangerine Hotels- Land Lease      Source & Use of Funds ($ million)                                 Sources of Funds      ...
Tangerine Hotels       P&L Statement ($ million)                                        Year I           Year 2          Y...
Tangerine Hotels       Debt Payment Ability($ million)                        Year I          Year 2         Year 3       ...
Tangerine Hotels         Exit Return with Enterprise Value @3.5x of revenue ($ million)                              Year ...
Exit Strategy
Tangerine Hotels      Exit Strategy for Angel Investor         Share buyback by the Team after 4-7 years         PE fund...
Thank You           Ashwin D’Cunha     Email: ashwinfnb@gmail.com      Mobile: + 91 9619279635            Bharat Vasandani...
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Tangerine Concept Final Landmark

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Luxury Hotel Apartments start up - seeks funding

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Tangerine Concept Final Landmark

  1. 1. TANGERINE HOTELS Brainwave Management Services November 2010
  2. 2. Executive Summary
  3. 3. Tangerine Hotels Executive Summary  An experienced Hospitality Management Team is looking to implement their concept of Luxury Hotel Apartments in India  Tangerine will be competing in the 4 Star Hotel / Residential space with Luxury Hotel Apartments concept  The Team is looking at investment to take live the new concept in Indian Hospitality3 Confidential Information
  4. 4. Concept Introduction
  5. 5. Tangerine Hotels Concept Introduction  Tangerine will be competing in the 4 Star Hotel Apartments/ Luxury Residential Space concept  The idea is to offer people a residential-style apartment with hotel-like amenities fulfilling clients Lifestyle and Living needs  Apartment hotels fill up huge gap that exists for business travelers, family travelers and large groups which hotels are not able to offer  Tangerine services Lifestyle and Living needs of business clientele and residential families through infrastructure, service, speed and price structure  Target age group will be 25-50 with good disposable income, and limited leisure time Amenities of an ultramodern Hotel with the comfort of Home5 Confidential Information
  6. 6. Tangerine Hotels Concept Introduction  Homely atmosphere compared to a conventional hotel room  Facilities include Bedroom, Dining, Kitchen in the room  Hotel facilities include 24hour room service, housekeeping, laundry, security, doctor on call, salon & spa, supermarket, conference rooms, ball room, swimming pool, fitness center and full fledged F&B services  Concept is aimed at Expatriate and Corporate executives, NRIs who come with their families, and medical tourists A Home with Top Business & Recreation Facilities6 Confidential Information
  7. 7. Tangerine Hotels Concept Introduction  Focus on Luxury Lifestyle Apartments for Long & Short stays  60-100 rooms, 4 star category with Food & Beverages element  1 Coffee shop / All Day Dining  1 Lounge Bar / Specialty Restaurant  Conference & Banquet Facility  1 Board Room / 2 Meeting Rooms  1 Ball Room  1 Rooftop Concept Bar (concept bar at night)  Pool area, preferable covered  Open spaces, Gym, Recreation & Play area for kids  Supermarket  Salon & Spa7 Confidential Information
  8. 8. Tangerine Hotels Design  Modern, Trendy, Chic & Cool  Touch of Finesse  Elements of nature blended in, fresh Flavors & Fragrances8 Confidential Information
  9. 9. Tangerine Hotels Target Market  Tourists  Western Expats  Working Professionals in the age group of 25-50 years  Corporate & Business House  Families9 Confidential Information
  10. 10. Rooms
  11. 11. Tangerine Hotels Rooms  Studio  1 Bedroom  2 Bedrooms  Rooms will have cable TV, Internet access, room service & housekeeping facilities & laundry services  Cooking mini kitchens/utensils/plates/glasses & cutlery/chinaware  All rooms will have a terrace or balcony11 Confidential Information
  12. 12. Food & Beverages
  13. 13. Tangerine Hotels All Day Dining o 80 covers o Should give a feel of Home Kitchen o 45 covers indoor & 35 covers outdoor /terrace / patio with a roof o Breakfast, Lunch, Dinner13 Confidential Information
  14. 14. Tangerine Hotels Specialty Restaurant o International Cuisine o 60covers o 20 covers Bar14 Confidential Information
  15. 15. Tangerine Hotels Pool Bar o 40 covers o 60 Sun Lounges o Same level as coffee shop15 Confidential Information
  16. 16. Tangerine Hotels Rooftop Bar / Lounge (with covered roof) o Sheesha, Mezze & Tapas o 80-100 covers o Party place including events, promotions16 Confidential Information
  17. 17. Facilities
  18. 18. Tangerine Hotels Board Rooms / Meeting Rooms o 15 covers, all round table for Board Room o 80 covers called Senate I & Senate II for Meeting Rooms18 Confidential Information
  19. 19. Tangerine Hotels Ball Room o 400 covers o 3 doors with pre function area19 Confidential Information
  20. 20. Tangerine Hotels Other Facilities (Optional & Location dependent)  Essentials Supermarket o Supermarket in every Hotel o Could follow outsourced business model  Salon & Spa o Could follow strategic / outsourced business model  Laundry Services called “Laundromat”  Fitness Center  Travel Desk20 Confidential Information
  21. 21. Concept Positioning & Marketing
  22. 22. Tangerine Hotels Positioning of Tangerine  Tangerine will be competing in the market void set between 4 star and 5 star with luxury hotel apartments  The brand will be positioned to be the number one choice for tourism and corporate sectors of India for Lifestyle and Living needs based on service, speed and price structure  The hotel will cater to leisure guests, business clientele and residential families  The concept and brand is attractive and affordable to people from different walks of life  The brand will be launched in the most upcoming and growing cities catering primarily to families and corporate sectors with main clientele being between 25-50 with limited time to enjoy a lifestyle22 Confidential Information
  23. 23. Tangerine Hotels Marketing & Promotion  Press Conferences & Promotional Campaign  Discount Vouchers  Entertainer Vouchers  “Biggest Party in Town” campaigns  Fashion shows and Entertainment shows in tie-ups with fashion & entertainment companies in India and from outside  Print Media- Lifestyle & Business magazines, F&B publication, Newspapers  Outdoor Campaigns  Cable TV, Radio and Satellite  Internet Marketing23 Confidential Information
  24. 24. Development and Expansion Plans
  25. 25. Tangerine Hotels Development & Expansion Plans  The Management Team is looking at the metros in India for hotel development  Expansion plans will include Tier II cities with growth potential  Target markets include Mumbai, NCR , Chennai, Bangalore, Hyderabad, Ahmadabad, Pune, Kolkatta  Cities with growing GDP & business potential will be targeted first  Land / Real Estate (ready infrastructure) model used will be acquisition, lease or JV  The Team is looking at 5 hotels in the first 3 years25 Confidential Information
  26. 26. Indian Hotel Industry
  27. 27. Tangerine Hotels Indian Hotel Industry  The Indian travel & tourism is ranked 5th in the long-term (10-year) growth  It is ranked the 14th best tourist destination in the world  Country Brand Index survey conducted by Future Brand puts India as “the best country brand for value- for-money”  India is counted among the rising stars that are likely to become major tourist destinations in the next five years27 Confidential Information
  28. 28. Tangerine Hotels Road ahead for the Indian Hotel Industry  The demand for travel & tourism in India is expected to grow at healthy rate of 8% for the next 5-7 years placing India at the 3rd position in the world  India is forecasted to become the fifth fastest growing business travel destination between 2010-2019  India’s travel & tourism sector is expected to be second largest employer in the world; providing jobs to more than 40 million by 2019  This will attract FDI, global brands and new concepts into the Indian hospitality space28 Confidential Information
  29. 29. Tangerine Hotels Low Phase to Growth Phase  The financial year 2008-2009 was not a very good year for the Indian Hotel Industry with Mumbai Terror attacks and global economic slowdown  This resulted in overall decline in occupancy and revenue per available room  But the mood is upswing trend again in 2010 with global economy slowing moving out of recession and India’s own growth story looking good again  Study of 6 big hotel groups in India shows expected revenue growth of 22%-25% till 2012  HVS Hospitality Services does see an opportunity in this weak period by describing this as “The best time to make investments in hotel sector” Today’s Low Phase seems the best investment opportunity to take advantage of the coming Growth Phase29 Confidential Information
  30. 30. Tangerine Hotels Low Phase to Growth Phase  2010 is expected to see an increase in Revenue Per Available Room and Occupancy rates compared to 2009  Reserve Bank of India has recently has removed hotel industry from Commercial Real Estate classification. This will ensure easier bank lending on much lesser rates as compared to earlier  The Government policies are expected to be more favorable  The domestic market has shown huge potential and continues to support the growing tourism industry  Many international hotel brands are keen to have a presence in India to include emerging market in their portfolio to offset losses from mature markets Government Policies and Domestic Market potential are expected to push Indian Hotel Industry again to Growth Phase30 Confidential Information
  31. 31. Tangerine Hotels Growth in Hotel Rooms No of Rooms 100,000 94,115 85,000 70,000 55,000 48,475 40,000 23,185 25,000 10,000 1998-1999 2008-2009 2013-2014 Indian Hotel rooms are expected to be nearly double by 2014 compared to 2009 ; indicating high growth31 Confidential Information
  32. 32. Tangerine Hotels Occupancy Rate for Indian Hotel Industry 80.0% Avg 62.2% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 19 6 19 7 19 8 19 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 0 -9 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -1 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 19 Indian Hotels enjoy a healthy occupancy rate of 62% ; expected to maintain an increasing trend over the next few years32 Confidential Information
  33. 33. Tangerine Hotels RevPAR for Indian Hotel Industry (in INR)  RevPAR has recently seen a drop 6000 due to terror attacks and slowdown of global economy 5000 Avg INR 3004  The industry is bracing for growth 4000 phase from 2010 onwards; which is expected to show higher RevPAR 3000 2000 1000 0 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 -9 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -1 95 996 997 998 999 000 001 002 003 004 005 006 007 008 009 19 1 1 1 1 2 2 2 2 2 2 2 2 2 2 Indian Hotel Industry expects RevPAR to touch the 2006-2007 figures again in 2010-2011 on account of global economy revival and domestic business growth33 Confidential Information
  34. 34. Tangerine Hotels RevPAR numbers based on hotel status 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 6 7 8 9 0 1 2 3 4 5 6 7 8 9 -9 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Five Star Deluxe Five Star Four Star Three Star34 Confidential Information
  35. 35. Tangerine Hotels Occupancy Rate numbers based on hotel status 85.0% 75.0% 65.0% 55.0% 45.0% 35.0% 96 97 98 99 00 01 02 03 04 05 06 07 08 09 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 06- 07- 08- 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Five Star Deluxe Five Star Four Star Three Star35 Confidential Information
  36. 36. Tangerine Hotels Financial Aspects of the Hotel Industry  A financial analysis was done on India’s 6 big hotels  The goal was the analyze the coming years in terms of growth revenue and P/E valuation  Hotels studied were Indian Hotels Company, EIH (Oberoi Group of Hotels), Hotel Leela, Taj GVK Hotels, Kamat Hotels and Royal Orchid36 Confidential Information
  37. 37. Tangerine Hotels Average Revenue Growth 30.0% 26.6% 25.0% 22.0% 20.0% 17.9% 15.0% 12.8% 10.0% 5.0% 0.0% 2007-08 2008-09 2009-10 2010-11 2011-12 -5.0% -10.0% -9.1% -15.0% The Industry is forecasting strong Revenue Growth37 Confidential Information
  38. 38. Tangerine Hotels Average P/E valuation 35.0x 32.5x 30.0x 25.0x 24.6x 22.7x 20.0x 15.0x 15.9x 10.0x 5.0x - 2008-09 2009-10 2010-11 2011-12 The Industry expects favorable valuation in the coming years38 Confidential Information
  39. 39. Indian Hospitality Industry Trends
  40. 40. Tangerine Hotels Indian Economy  Indian economy is expected to grow at projected GDP of more than 7% when other countries are struggling to come out of negative growth  India’s resilient economy was only marginally affected by the global financial crisis  Exponential service sector growth with emergence of BPO, Telecom and other sectors  Indian younger demographics is the right fit for global business audience  India’s exponential FDI growth likely to continue- last 3 years (2007-2009) has seen $90 billion The Indian Elephant is dancing on growth stories40 Confidential Information
  41. 41. Tangerine Hotels Indian Hotel Market  The Indian Hotel Market has been growing from the days of 1990s when the handful of major hotel market were limited to the big cities  Recent years have seen emergence of secondary and tertiary cities also  Infrastructure in Indian cities & towns have been continuously improved  India as a Brand has also been well accepted globally  There has been development of niche tourism like medical tourism, religious circuits, adventure tourism Emergence of secondary cities has led to increase in hotel development activities; providing new expansion avenues41 Confidential Information
  42. 42. Tangerine Hotels Hotel Brand Growth in India  There is a growing perception of Indian markets as a lucrative opportunity among international brands  Last few years have seen entry of major international brands in India and growth of Indian brands  Also expected is emergence of branded budget and economy hotels  Educated and well exposed Indian audience are likely to accept global brands and new concepts  Growth of the Indian middle class offering a large consumer base of more than 1 billion people Indian and International Hotel Brands are being well accepted by growing Indian Middle Class42 Confidential Information
  43. 43. Tangerine Hotels The M.I.C.E. Business Opportunity in India  Meetings, Incentive, Conventions, and Exhibitions business is a key contributor to overall hospitality industry; accounting for 20% of all international arrivals worldwide.  Indian has seen growth of Science & Technology related industries like biotechnology and pharmaceuticals that host large conference  Growth of the manufacturing sector  Increased interest in India as a travel-worthy destination  Expected emergence of dedicated convention centers in more cities  Successful and replicable model in Hyderabad International Convention Centre Indian Hospitality Industry needs to make several strides towards developing MICE facilities43 Confidential Information
  44. 44. Tangerine Hotels Hotel Development Costs  Hotel Development costs in India are expected to be rationalized due to market maturity and economic conditions  Experts forecasts further rationalization of per key development costs with entry of brands across all positioning  Industry is looking at favorable Government policies w.r.t license process Positioning Typical development cost per key (INR millions) Luxury 12.5 and above Upper Upscale 8.5 to 12.5 Upscale 6 to 8.5 Mid Market 3.5 to 5.5 Budget 2.5 to 3.5 Economy 2.5 and below Current trend of building hotels is expected to shift to buying hotels once cost rationalization is seen in the market44 Confidential Information
  45. 45. Tangerine Hotels Financial Aspects of the Hotel Industry  Industry has been lobbying for infrastructure status for the hotel industry. The Government is expected to come out with favorable policy  This change in industry status will increase possibility of debt at reasonable rates; thus ensuring financial maturity for the market  Industry is expecting more involvement of Private Equity and Hospitality Funds in the near future  This will bring about rise in sale /purchase of hospitality assets  Financial maturity will also bring in rationalization of valuations The Indian Hospitality Industry is forecasting Financial Maturity with favorable policies and entry of financial institutions45 Confidential Information
  46. 46. Tangerine Hotels Food and Beverages (F&B) Concepts  Recent years have seen rapid growth of standalone restaurants  Well traveled customer is open to different dining experiences  Entry of restaurant focused investors  The F&B space is looking at impetus from Government in form of ease of acquiring licenses Indian F&B industry is in for some exciting and great times ahead46 Confidential Information
  47. 47. Management Team
  48. 48. Tangerine Hotels Management Team Management  Mr. Ashwin D’Cunha ; Managing Director  Mrs. Snigdha Banerjee D’Cunha ; Director Operations & actively involved in Food & Beverages  Mr. Shivraj Johar ; Business Head Hospitality  Mr. Sameer Despande ; Operations Manager and actively involved in Rooms Division  Mr. Rahul Kotyan ; Food & Beverages  Mr. Shaik Mohammad Sultan ; Corporate Chef  Origami / Bloombox ; Sales & Marketing Advisors  Mr. Praveen Roy  Mr. Aldrin D’Cunha48 Confidential Information
  49. 49. Tangerine Hotels Ashwin D’Cunha ; Managing Director  17 years experience in Food & Beverages, Project Management and Hotel operations across the globe  Worked with President Hotel, India; Carnival Cruise Lines, Miami, USA ; Atlas Hospitality Group, Dubai; One & Only One Royal Mirage, Dubai; The Embassy Club, Dubai; Rendezvous Restaurants, India; Bombay Palace Group of Restaurants, New York, USA Type of Projects handled :  Management of Hotel and Food & Beverages operations  Human Resources- training & recruitment  Sales & Marketing planning for Hotels and Restaurants  Concept & Design Planning  Financial Planning for Hotels & Restaurants  Pre-Opening and Opening Project Management Education  Honors student in PG Hotel Management Course from KC College, Mumbai India  Honors student in Food Production & Patisserie from IHM, Mumbai  Honors from “All Star Bartenders & Mixologist”, New York.49  Honors from WSET UK; Wine and Spirit Advanced Education Confidential Information
  50. 50. Tangerine Hotels Ashwin D’Cunha ; Managing Director Major Projects  Pre-Opening and Post Opening Management of 3 hotels over 5 years for “One & Only Royal Mirage Resort”- among the 10 best resorts in the world as declared by Conde Nast Traveler  Pre-Opening of Bombay Palace Restaurants in New York City, USA  Opened the “Embassy Club London” in Abu Dhabi – an enterprise of Mark Fuller & Andy Taylor (Co- Manager of Iron Maiden, The Rock Group)  Started an entire vertical of Food & Beverage and Hotel Apartments for Elite Hospitality, Bahrain  Opened Dubai’s first Arabesque with 3 level concepts- sports bar, main dance & VIP bar  Concept of Nina, Dubai’s first Indo Euro Restaurant and Rooftop Lounge & Open Sky Bar  Concept, Design and Operations for “Food & Beverages” – a retail, lifestyle, dining & entertainment venue in Bangalore  Concept and recruitment for Southern Sun, a Retail & 5 Star Hospitality venue in Dubai  Pre-Opening and Post-Opening Operations of 2 mega liners for Carnival Cruise Liners, Miami, USA50 Confidential Information
  51. 51. Tangerine Hotels Ashwin D’Cunha ; Managing Director One & Only Royal Mirage , Elite Hospitality , Bombay Palace , New York Dubai Bahrain Among the 10 Best Resorts in Embassy Club, Abu Dhabi51 the World Confidential Information
  52. 52. Tangerine Hotels Snigdha Banerjee ; Director Operations  14 years experience in Food & Beverages, Project Management and Hotel operations across the globe  Worked with Taj Group of Hotels, UEI Global Hotel Education Type of Projects handled :  Management of Food & Beverages operations  Human Resources- training & recruitment  Planning & Holding Events such as fashion shows, music album launches, product launch  Concept Planning  Pre-Opening and Opening Project Management  Set Up and Operations in India for UEI Global Hotel Education for Berggruen Group, USA Education  Honors in Hotel Management from Indian Institute of Hotel Management (IIHM) by Taj Hotels India  Total Quality Management from Indian Institute of Hotel Management (IIHM) by Taj Hotels India52 Confidential Information
  53. 53. Tangerine Hotels Snigdha Banerjee ; Director Operations Major Projects  Pre-Opening and Post Opening Management of restaurants for “One & Only Royal Mirage Resort”- among the 10 best resorts in the world as declared by Conde Nast Traveler  Set Up and Operations in India for UEI Global Hotel Education for Berggruen Group, USA  Restaurant Manager with The Taj Group of Hotels, India  Human Resources solutions for Southern Sun Hotel, Dubai53 Confidential Information
  54. 54. Tangerine Hotels Snigdha Banerjee ; Director Operations Taj Group of Hotels , India One & Only Royal Mirage , Dubai UEI Global Education India54 Among the 10 Best Resorts in the Confidential Information World
  55. 55. Tangerine Hotels Shivraj Johar ; Business Head  19 years experience in Food & Beverages industry spread across Luxury Hotels, Banqueting and Restaurant Chains  Worked in Taj Group of Hotels for over 10 years in India and Maldives; Mayfair Celebrations – Gravis Hospitality, India; Jones Lang LaSalle, India  Type of Projects handled :  Pre-Opening and Operation of large Food & Beverages operations  Operations and Business Development of 5 Star Hotels  Restaurant Operations Education  Diploma in Hotel Management, Catering Technology & Applied Nutrition from Institute of Hotel Management Chennai55 Confidential Information
  56. 56. Tangerine Hotels Shivraj Johar ; Business Head Major Projects  Opened and Operated Taj Hotel in Maldives  Part of the Food & Beverages Team to launch Taj Residency in Vishakhapatnam  Operations for Mayfair Celebrations (Gaylord Restaurant) across North India  Handled Integrated Facilities Business Line for Jones Lang LaSalle, India56 Confidential Information
  57. 57. Tangerine Hotels Shivraj Johar ; Business Head Taj Resort Maldives Gaylord Restaurant, Taj Residency, New Delhi Vishakhapatnam57 Confidential Information
  58. 58. Tangerine Hotels Sameer Deshpande ; Operations Manager  15 years experience in Hospitality Operations and Management  Worked with Elite Group, Bahrain; Palms Hotel, India ; Sahara India Parivar, India; & Sahil Resorts, India Type of Projects handled :  Day to Day operations of a hotel  Maintaining service standards  Pre-Opening Management  Team Building  Inspection & Compliances  Quality Control  Budgeting and Manpower planning to make operations cost effective and in line with business goals Education  Bachelors in Hotel Management from The Presidency College Of Hotel Management, India58 Confidential Information
  59. 59. Tangerine Hotels Sameer Deshpande ; Operations Manager Major Projects  Operations Manager for Apartment Hotel of Elite Hospitality with 298 rooms in Bahrain  Pre-Opening and Opening of Sahil Sarovar Hotel in Lonvala, India  Concept and Planning for Radisson Spa & Resort, Alibaug  Conceptualization and Pre-Opening for 6 multi-cuisine restaurants at Amby Valley Sahara Lake City59 Confidential Information
  60. 60. Tangerine Hotels Sameer Deshpande ; Operations Manager Elite Hospitality , Radission Resorts & Spa, Sarovar Hotel & Amby Valley , Bahrain Alibaug Lonvala60 Confidential Information
  61. 61. Tangerine Hotels Rahul Kotyan ; Food & Beverages  14 years of experience in Food & Beverages operations within Hotels, Multi-unit Restaurant operations and Pre-Opening & Project Startups  Worked with Taj Group; Ramee Group of Hotels; Flora Hotels, Dubai; MARS Restaurant, India and Lite Bite Foods, India Type of Projects handled:  Heading Food & Beverages operations including Restaurants, Banquets, Conferences, Catering  Pre-Opening project operations  Menu Planning  Vendor and Product Sourcing  Team recruitment and training  Formulating standards and procedures Education  Advanced Diploma in Hospitality Management from Australian College of Travel & Hospitality Management, Melbourne.  Diploma in Hotel Management, Catering & Nutrition from Institute of Hotel Management, Catering and Nutrition, Ahmedabad61 Confidential Information
  62. 62. Tangerine Hotels Rahul Kotyan ; Corporate Head Food & Beverages Major Projects  Mumbai Operations for Lite Bite Foods with responsibilities including branding, operations, feasibility evaluation, recruitment & training, setting up systems, vendor handling  Handling Food & Beverages operations for 2 hotel apartments of Flora Hotels, Dubai  Pre-Opening and Operations of 7 restaurants at Ramee Royal Hotel, Dubai  Operations of 4 restaurants, nightclub and 24 hour room service with a team of 76 at Gordon House Mumbai & Pune  Pre-Opening of Masala Bay restaurant at Taj Land’s End, Mumbai62 Confidential Information
  63. 63. Tangerine Hotels Rahul Kotyan ; Food & Beverages Ramee Hotel, Dubai Flora Park Hotel, Dubai Masala Bay Restaurant, Taj Land’s End,63 Mumbai Confidential Information
  64. 64. Tangerine Hotels Shaik Mohammad Sultan ; Corporate Chef  Culinary professional with more than 20 years of experience in industry and academia  Worked with Taj Group of Hotels, Elite Group Bahrain, Shri Shakti College of Management and Osmania University Type of Projects handled:  Oversee Food & Beverages operations  Selection, Planning, Requisitioning for supplies and approval of Standard of Supplies  Coordinate the Planning of menus like-, Daily Buffets, Theme menus for banquets & food festivals  Controlling of all operational costs; food, labor and materials  Banquet Kitchen and Conference Operations standardization  Designing of facilities requirements in coordination & consultation with the builder, equipment manufacturers and suppliers Education  Diploma in Hotel Management from Institute of Hotel Management, Catering Technology & Applied Nutrition, Hyderabad64 Confidential Information
  65. 65. Tangerine Hotels Shaik Mohammad Sultan ; Corporate Chef Major Projects  Setting up 2 Hotel properties’ kitchen operations from ground zero in tandem with requirements on its catering role, budgets and desired business returns at the Elite Group, Bahrain  Sous Chef for Majorda Beach Resort, Goa, India  Chef De Partie at Taj Banjara, Hyderabad, India  Faculty; Food Production at Shri Shakti College of Management and Osmania University, Hyderabad65 Confidential Information
  66. 66. Tangerine Hotels Shaik Mohammad Sultan ; Corporate Chef Elite Resort & Spa , Majorda Resort & Spa, Taj Banjara, Bahrain Goa Hyderabad66 Confidential Information
  67. 67. Tangerine Hotels Origami / Bloombox ; Sales & Marketing (optional)  25 years experience in Hospitality Sales & Marketing  Worked for various projects of Hospitality Groups, Carmasutra, Gsport, Rogue Beer Type of Projects handled :  Sales & Marketing Strategy  Brand Standards and Corporate Brand Development  Developing and Controlling Marketing and Advertising budgets  Database management & CRM  Public Relations, Media Buying, Media Relations, Road shows with major international property developers  Strategic & Promotional Tie-ups67 Confidential Information
  68. 68. Tangerine Hotels Praveen Roy ; Advisor  25+ years stalwart of Indian Hospitality Industry  He has set up various hospitality projects across India and Internationally  Work experience includes Taj Group of Hotels for over 18 years and successful creation of Indian Institute of Hotel Management (IIHM)  Dean of IIHM and General Manager of the Taj Hotel  Setup of UEI Global Hotel Education in India for Berggruen Group, USA  Currently assisting Restructuring of Baisan Hospitality Institute and Hotels in Bahrain Aldrin D’Cunha ; Advisor  A Visionary & Guiding Force for the team  An Advertising & Media expert  Setup Brainwave Advertising in Dubai and holds worldwide royalty for Qatar Yellow Pages  Member of Launch Team of Tata Yellow Pages in Mumbai  An Entrepreneurial and Business mindset68 Confidential Information
  69. 69. Financials
  70. 70. Tangerine Hotels Financial Assumptions for a 80 room 4 Star Hotel with Luxury Apartments  Starting with 80 rooms 4 Star Hotel with luxury Apartments as 1) Land buyout & 2) Land Lease Costs – Land Buyout  Total project costs with land, license, development and working capital Rs.101.80 crores  Development costs per room is ~ Rs.80 lacs ($0.2 m) including F&B and other facilities  Land cost for ~ 4 acres is ~ Rs.30 crores ($6.7m)(land appreciation at 25% every year)  Working capital required of ~ Rs.3.8 crores($0.85m) including management expenses  License fees of Rs.5 crores ($1.2m) (assumed to be sold for Rs.5 crores during exit)  Pre-opening costs including salary of employees/management accounted for Financials  Equity: Debt ratio at 50:50  Debt paid over 10 years with 1 year moratorium  Bank interest rate at 12%  Corporate Tax at 33.5%70 Confidential Information
  71. 71. Tangerine Hotels Financial Assumptions Operations  Average revenue per room & Occupancy Rate lowest during monsoon quarter and higher during year end quarter  Average occupancy assumed at 67% over 7 years  Average RevPar over 7 years comes to Rs.6850 per room ($152)  Revenue from F&B to be at an average of 29% of room revenue (below current levels of 35%-40% seen in other hotels)  Other revenue includes facilities such as spa, salon, laundromat, supermarket, traveling, etc71 Confidential Information
  72. 72. Tangerine Hotels Source & Use of Funds (INR lacs) Sources of Funds Amount % of Total Credit Facility 0.0 0% Debt 5,090.0 50% Equity 5,090.0 50% 10,180.0 100% Use of Funds Amount % of Total Hotel 9,800.0 96.3% Working Capital 380.0 3.7% Transaction Fees 0.0 0.0% Other 0.0 0.0% 10,180.0 100.0%72 Confidential Information
  73. 73. Tangerine Hotels P&L Statement (INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 No of rooms 80 80 80 80 80 80 80 Average Occupancy Rate 63.8% 63.8% 68.8% 68.8% 68.8% 68.8% 68.8% Average Revenue per Room 7,250 8,700 9,570 10,527 11,053 11,606 12,186 RevPAR 4,622 5,546 6,579 7,237 7,599 7,979 8,378 Room Revenue 991.8 1,611.4 1,910.3 2,101.3 2,206.4 2,316.7 2,432.6 % of Total Revenue 68.7% 71.3% 71.5% 72.5% 73.0% 73.5% 74.0% F&B Revenue 342.0 495.7 588.1 617.5 632.9 648.7 664.9 % of Total Revenue 23.7% 21.9% 22.0% 21.3% 21.0% 20.6% 20.2% Total Revenue 1,443.2 2,261.3 2,673.0 2,896.9 3,021.0 3,150.8 3,286.5 Growth 56.7% 18.2% 8.4% 4.3% 4.3% 4.3% EBITDA 794.9 1,296.7 1,544.8 1,683.4 1,753.4 1,826.6 1,903.2 % margin 55.1% 57.3% 57.8% 58.1% 58.0% 58.0% 57.9% Net income (93.7) 264.3 455.1 578.1 658.7 751.4 798.6 % margin -6.5% 11.7% 17.0% 20.0% 21.8% 23.8% 24.3%73 Confidential Information
  74. 74. Tangerine Hotels Debt Payment Ability(INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Debt 5,090.0 4,901.5 4,713.0 4,524.4 4,335.9 4,147.4 3,958.9 Interest expense 610.8 596.7 574.0 551.4 528.8 506.2 517.5 Debt / EBITDA 6.4x 3.8x 3.1x 2.7x 2.5x 2.3x 2.1x EBITDA/ Interest 1.3x 2.2x 2.7x 3.1x 3.3x 3.6x 3.7x74 Confidential Information
  75. 75. Tangerine Hotels Exit Return with Enterprise Value @3.5x of revenue (INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Enterprise Value 5,051.3 7,914.6 9,355.5 10,139.2 10,573.5 11,027.7 11,502.9 89.1 399.3 885.2 1,533.3 2,288.3 3,097.9 4,067.4 Plus Cash 433.4 514.1 609.8 666.1 696.4 598.7 522.2 Plus Working Capital 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Less Credit Facility 5,090.0 4,901.5 4,713.0 4,524.4 4,335.9 4,147.4 3,958.9 Less Senior Debt 500.0 500.0 500.0 500.0 500.0 500.0 500.0 Plus: License 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net Equity Value 983.9 4,426.4 6,637.5 8,314.3 9,722.3 11,076.9 12,633.5 Hotel IRR NA 30% 36% 34% 30% 27% 25% Payback multiple 0.4x 1.7x 2.5x 3.2x 3.7x 4.2x 4.8x Total IRR -11% 27% 30% 29% 27% 26% 25% Payback multiple 0.9x 1.6x 2.2x 2.7x 3.3x 4.0x 4.8x75 Confidential Information
  76. 76. Tangerine Hotels Financial Assumptions for a 80 room 4 Star Hotel with Luxury Apartments  Starting with 80 rooms 4 Star Hotel with luxury Apartments as 1) Land buyout & 2) Land Lease Costs – Land Lease  Total project costs with land lease, license, development and working capital Rs.101.80 crores (78 crores ?)  Development costs per room is ~ Rs.80 lacs ($0.2 m) including F&B and other facilities  Land Lease ~ 4 acres is ~ Rs.4 crores ($0.89m) (deposit of 5 crores ($1.2m) to be replaced during exit)  Working capital required of ~ Rs.5 crores ($1.2m) including management expenses  License fees of Rs.5 crores ($1.2) (assumed to be sold for Rs.5 crores during exit)  Pre-opening costs including salary of employees/management accounted for Financials  Equity: Debt ratio at 50:50  Debt paid over 10 years with 1 year moratorium  Bank interest rate at 12%  Corporate Tax at 33.5% Confidential Information76
  77. 77. Tangerine Hotels Financial Assumptions Operations  Average revenue per room & Occupancy Rate lowest during monsoon quarter and higher during year end quarter  Average occupancy assumed at 67% over 7 years  Average RevPar over 7 years comes to Rs.6850 per room ($152)  Revenue from F&B to be at an average of 29% of room revenue (below current levels of 35%-40% seen in other hotels)  Other revenue includes facilities such as spa, salon, laundromat, supermarket, traveling, etc77 Confidential Information
  78. 78. Tangerine Hotels Source & Use of Funds (INR lacs) Sources of Funds Amount % of Total Credit Facility 0.0 0% Debt 3,900.0 50% Equity 3,900.0 50% 7,800.0 100% Use of Funds Amount % of Total Hotel 7,300.0 93.6% Working Capital 500.0 6.4% Transaction Fees 0.0 0.0% Other 0.0 0.0% 7,800.0 100.0%78 Confidential Information
  79. 79. Tangerine Hotels P&L Statement (INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 No of rooms 80 80 80 80 80 80 80 Average Occupancy Rate 63.8% 63.8% 68.8% 68.8% 68.8% 68.8% 68.8% Average Revenue per Room 7,250 8,700 9,570 10,527 11,053 11,606 12,186 RevPAR 4,622 5,546 6,579 7,237 7,599 7,979 8,378 Room Revenue 991.8 1,611.4 1,910.3 2,101.3 2,206.4 2,316.7 2,432.6 % of Total Revenue 68.7% 71.3% 71.5% 72.5% 73.0% 73.5% 74.0% F&B Revenue 342.0 495.7 588.1 617.5 632.9 648.7 664.9 % of Total Revenue 23.7% 21.9% 22.0% 21.3% 21.0% 20.6% 20.2% Total Revenue 1,443.2 2,261.3 2,673.0 2,896.9 3,021.0 3,150.8 3,286.5 Growth 56.7% 18.2% 8.4% 4.3% 4.3% 4.3% EBITDA 394.9 876.7 1,103.8 1,220.3 1,267.2 1,316.1 1,367.1 % margin 27.4% 38.8% 41.3% 42.1% 41.9% 41.8% 41.6% Net income (322.1) 59.3 243.1 343.2 399.7 463.8 495.6 % margin -22.3% 2.6% 9.1% 11.8% 13.2% 14.7% 15.1%79 Confidential Information
  80. 80. Tangerine Hotels Debt Payment Ability(INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Debt 3,900.0 3,755.6 3,611.1 3,466.7 3,322.2 3,177.8 3,033.3 Interest expense 468.0 457.2 439.8 422.5 405.2 387.8 396.5 Debt / EBITDA 9.9x 4.3x 3.3x 2.8x 2.6x 2.4x 2.2x EBITDA/ Interest 0.8x 1.9x 2.5x 2.9x 3.1x 3.4x 3.4x80 Confidential Information
  81. 81. Tangerine Hotels Exit Return with Enterprise Value @3.5x of revenue (INR lacs) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 5,051.3 7,914.6 9,355.5 10,139.2 10,573.5 11,027.7 11,502.9 Total Enterprise Value 30.1 181.7 502.3 962.4 1,505.3 2,084.9 2,773.4 Plus Cash 384.1 462.3 555.4 609.1 636.4 535.8 459.2 Plus Working Capital 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Less Credit Facility 3,900.0 3,755.6 3,611.1 3,466.7 3,322.2 3,177.8 3,033.3 Less Senior Debt 500.0 500.0 500.0 500.0 500.0 500.0 500.0 Plus: License 500.0 500.0 500.0 500.0 500.0 500.0 500.0 Net Equity Value 2,565.5 5,803.0 7,802.1 9,244.1 10,393.0 11,470.6 12,702.2 Hotel IRR NA 17% 22% 21% 20% 18% 17% Payback multiple 0.6x 1.4x 1.8x 2.2x 2.4x 2.7x 3.0x81 Confidential Information
  82. 82. Financials in USDLand Buyout Model
  83. 83. Tangerine Hotels- Land Buyout Source & Use of Funds ($ million) Sources of Funds Amount % of Total Credit Facility 0.0 0% Debt 11.3 50% Equity 11.3 50% 22.6 100% Use of Funds Amount % of Total Hotel 21.8 96.3% Working Capital 0.8 3.7% Transaction Fees 0.0 0.0% Other 0.0 0.0% 22.6 100.0%83 Confidential Information
  84. 84. Tangerine Hotels P&L Statement ($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 No of rooms 80 80 80 80 80 80 80 Average Occupancy Rate 63.8% 63.8% 68.8% 68.8% 68.8% 68.8% 68.8% Average Revenue per Room 161.1 193.3 212.7 233.9 245.6 257.9 270.8 RevPAR 102.7 123.3 146.2 160.8 168.9 177.3 186.2 Room Revenue 2.2 3.6 4.2 4.7 4.9 5.1 5.4 % of Total Revenue 68.7% 71.3% 71.5% 72.5% 73.0% 73.5% 74.0% F&B Revenue 0.8 1.1 1.3 1.4 1.4 1.4 1.5 % of Total Revenue 23.7% 21.9% 22.0% 21.3% 21.0% 20.6% 20.2% Total Revenue 3.2 5.0 5.9 6.4 6.7 7.0 7.3 Growth 56.7% 18.2% 8.4% 4.3% 4.3% 4.3% EBITDA 1.8 2.9 3.4 3.7 3.9 4.1 4.2 % margin 55.1% 57.3% 57.8% 58.1% 58.0% 58.0% 57.9% Net income (0.2) 0.6 1.0 1.3 1.5 1.7 1.8 % margin -6.5% 11.7% 17.0% 20.0% 21.8% 23.8% 24.3%84 Confidential Information
  85. 85. Tangerine Hotels Debt Payment Ability($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Debt 11.3 10.9 10.5 10.1 9.6 9.2 8.8 Interest expense 1.4 1.3 1.3 1.2 1.2 1.1 1.1 Debt / EBITDA 6.4x 3.8x 3.1x 2.7x 2.5x 2.3x 2.1x EBITDA/ Interest 1.3x 2.2x 2.7x 3.1x 3.3x 3.6x 3.7x85 Confidential Information
  86. 86. Tangerine Hotels Exit Return with Enterprise Value @3.5x of revenue ($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 11.2 17.6 20.8 22.5 23.5 24.5 25.6 Total Enterprise Value 0.2 0.9 2.0 3.4 5.1 6.9 9.0 Plus Cash 1.0 1.1 1.4 1.5 1.5 1.3 1.2 Plus Working Capital 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Less Credit Facility 11.3 10.9 10.5 10.1 9.6 9.2 8.8 Less Senior Debt 1.1 1.1 1.1 1.1 1.1 1.1 1.1 Plus: License 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net Equity Value 2.2 9.8 14.7 18.5 21.6 24.6 28.1 Hotel IRR NA 30% 36% 34% 30% 27% 25% Payback multiple 0.4x 1.7x 2.5x 3.2x 3.7x 4.2x 4.8x Total IRR -11% 27% 30% 29% 27% 26% 25% Payback multiple 0.9x 1.6x 2.2x 2.7x 3.3x 4.0x 4.8x86 Confidential Information
  87. 87. Financials in USDLand Lease Model
  88. 88. Tangerine Hotels- Land Lease Source & Use of Funds ($ million) Sources of Funds Amount % of Total Credit Facility 0.0 0% Debt 8.67 50% Equity 8.67 50% 17.3 100% Use of Funds Amount % of Total Hotel 16.2 93.6% Working Capital 1.1 6.4% Transaction Fees 0.0 0.0% Other 0.0 0.0% 17.3 100.0%88 Confidential Information
  89. 89. Tangerine Hotels P&L Statement ($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 No of rooms 80 80 80 80 80 80 80 Average Occupancy Rate 63.8% 63.8% 68.8% 68.8% 68.8% 68.8% 68.8% Average Revenue per Room 161.1 193.3 212.7 233.9 245.6 257.9 270.8 RevPAR 102.7 123.3 146.2 160.8 168.9 177.3 186.2 Room Revenue 2.2 3.6 4.2 4.7 4.9 5.1 5.4 % of Total Revenue 68.7% 71.3% 71.5% 72.5% 73.0% 73.5% 74.0% F&B Revenue 0.8 1.1 1.3 1.4 1.4 1.4 1.5 % of Total Revenue 23.7% 21.9% 22.0% 21.3% 21.0% 20.6% 20.2% Total Revenue 3.2 5.0 5.9 6.4 6.7 7.0 7.3 Growth 56.7% 18.2% 8.4% 4.3% 4.3% 4.3% EBITDA 0.9 1.9 2.5 2.7 2.8 2.9 3.0 % margin 27.4% 38.8% 41.3% 42.1% 41.9% 41.8% 41.6% Net income (0.7) 0.1 0.5 0.8 0.9 1.0 1.1 % margin -22.3% 2.6% 9.1% 11.8% 13.2% 14.7% 15.1%89 Confidential Information
  90. 90. Tangerine Hotels Debt Payment Ability($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Debt 8.7 8.3 8.0 7.7 7.4 7.1 6.7 Interest expense 1.0 1.0 1.0 0.9 0.9 0.9 0.9 Debt / EBITDA 9.9x 4.3x 3.3x 2.8x 2.6x 2.4x 2.2x EBITDA/ Interest 0.8x 1.9x 2.5x 2.9x 3.1x 3.4x 3.4x90 Confidential Information
  91. 91. Tangerine Hotels Exit Return with Enterprise Value @3.5x of revenue ($ million) Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Enterprise Value 11.2 17.6 20.8 22.5 23.5 24.5 25.6 Plus Cash 0.1 0.4 1.1 2.1 3.3 4.6 6.2 Plus Working Capital 0.9 1.0 1.2 1.4 1.4 1.2 1.0 Less Credit Facility 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Less Senior Debt 8.7 8.3 8.0 7.7 7.4 7.1 6.7 Plus: License 1.1 1.1 1.1 1.1 1.1 1.1 1.1 Net Equity Value 1.1 1.1 1.1 1.1 1.1 1.1 1.1 5.7 12.9 17.3 20.5 23.1 25.5 28.2 Hotel IRR NA 17% 22% 21% 20% 18% 17% Payback multiple 0.6x 1.4x 1.8x 2.2x 2.4x 2.7x 3.0x91 Confidential Information
  92. 92. Exit Strategy
  93. 93. Tangerine Hotels Exit Strategy for Angel Investor  Share buyback by the Team after 4-7 years  PE funding to initiate the growth of chain of hotels  Sell Out to Strategic Buyer93 Confidential Information
  94. 94. Thank You Ashwin D’Cunha Email: ashwinfnb@gmail.com Mobile: + 91 9619279635 Bharat Vasandani Email: bharatvasandani@gmail.com Mobile: +91 982078989594 Confidential Information

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