Georgia Capital PLC Investment Overview
Private early
stage portfolio
Hospitality and commercial real estate business overview
Investment rationale
y-o-y,
Record number of tourists visiting Georgia every year: 4.8 million visitors in 2018, up 16.9%
(2.1 million in 1H19, up 10% y-o-y), 10.5% CAGR over the last 5 years; Tourism inflows up 19.1% y-o-y
from US$ 2.7bln in 2017 to US$ 3.2bln in 2018, 13.4% CAGR over the last 5 years
Value creation potential
"
Grow Portfolio of rent-earning assets through residential developments/opportunistic acquisitions
Reach more than 1,000 operational hotel rooms. Currently approximately 1,222 rooms are confirmed,
of which 152 are operational and c. 1,070 are in the pipeline.
Targeting mostly 3-star and 4-star hotels
Financial metrics (GEL millions)²
182
GEORGIA
CAPITAL
GEL millions, unless otherwise noted
Key highlights | 30 June 2019
30-Jun-19
31-Dec-18
Change
Equity fair value
149
22.4%
LTM ROIC¹
14.1%
16.4%
-2.3ppt
Market opportunity
Arrivals of tourists and tourism revenue | Georgia
4.1
4.8
Source: Georgian National Tourism Administration
National Bank of Georgia
Annual
2016
2017
2018
1H18
Semiannually
1H19
3.3
2.9
2.9
3.0
Change
2.5
3.2
NOI³ from operating leases
3
3
5
1.9
2.8
46.9%
1.8
2.7
1.9
2.1
NOI³ from hospitality services
2
0.5
0.7
52.5%
1.7
1.8
1.9
2.1
1.4
1.4
1.5
Revaluation gain
1.0
28
7.9
NMF
Total net Operating Income
2
3
32
1.9
9.5
NMF
Commercial real estate portfolio
42
77
112
95.2
121.9
28.1%
2011
2012
2013
2014
2015
2016
2017
2018
1H18
1H19
Arrivals of tourists (min)
Tourism revenue(US$ bln)
Selected operating metrics
1H18
1H19
Change
Hotel rooms pipeline as of 30 June 20194
Gross yield (leased portfolio)
Occupancy rate
Leased area (sq.m.)
10.2%
8.6%
-1.6ppt
Hotel
Location
Rooms
89.5%
86.7%
-2.8ppt
Ramada Encore Kazbegi, Tbilisi Capital city
Gudauri
152
Q1-2018
Target opening Current
date4
Stage
Operational
Total Cost
Target
US$ mln
ROICE
12.1
15.0%
Region
121
Q4-2019
Construction
13.3
12.0%
22,240
26,301
18.3%
Ramada Melikishvili, Tbilisi
Kempinski, Tbilisi
Capital city
125
Capital city
99
Ramada Encore 1H19 performance
Seti Square in Mestia, Svaneti
Region
52
Ramada Kutaisi
Region
121
Q1-2020
Q3-2020
Q4-2020
Q4-2020
Construction
Construction
Construction
Construction
13.0
14.9%
28.1
12.5%
5.9
16.3%
9.5
17.5%
RevPAR, US$
31.0
ADR, US$
63
Occupancy%
48.8%
Kakheti Wine & Spa
Region
60
Q3-2021
Design
7.5
17.3%
Shovi, Racha
Region
92
Q3-2021
Design
5.7
15.8%
Mestia, Svaneti
Region
140
Q4-2021
Design
10.1
15.8%
(1) ROIC is calculated as NOI divided by aggregate amount of total equity and borrowed funds.
(2) Hospitality & Commercial real estate business' functional currency is US dollars.
(3) Net operating income.
Telavi
Zugdidi
Region
130
Q4-2021
Design
12.7
13.4%
Region
130
Q4-2021
Design
14.1
12.0%
Total
1,222
132.0
(4) Target opening dates remain subject to adjustment following passing of the design stage.
(5) Including under construction retail properties presented in housing business, which will be transferred to hospitality & commercial real estate business at the date of construction completion.
(6) Target return on invested capital is calculated based on average stabilized EBITDA divided by total invested capital.
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