Tangerine Hotels is looking to establish luxury hotel apartments in India to compete in the 4-star hotel/residential space. They will offer apartment-style rooms with full hotel amenities to appeal to business travelers, families, and groups. The concept aims to fulfill lifestyle and living needs through infrastructure, service, and amenities. Tangerine is seeking investment to launch their new concept and plan to open 5 hotels in the first 3 years, targeting major Indian cities.

1. TANGERINE HOTELS
Brainwave Management
Services
November 2010

2. Executive Summary

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 Hospitality
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4. Concept Introduction

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 Home
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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 Facilities
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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 & Spa
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8. Tangerine Hotels
Design
 Modern, Trendy, Chic & Cool
 Touch of Finesse
 Elements of nature blended in, fresh Flavors & Fragrances
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9. Tangerine Hotels
Target Market
 Tourists
 Western Expats
 Working Professionals in the age group of 25-50 years
 Corporate & Business House
 Families
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10. Rooms

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 balcony
11 Confidential Information

12. Food & Beverages

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, Dinner
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14. Tangerine Hotels
Specialty Restaurant
o International Cuisine
o 60covers
o 20 covers Bar
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15. Tangerine Hotels
Pool Bar
o 40 covers
o 60 Sun Lounges
o Same level as coffee shop
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16. Tangerine Hotels
Rooftop Bar / Lounge (with covered roof)
o Sheesha, Mezze & Tapas
o 80-100 covers
o Party place including events, promotions
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17. Facilities

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 Rooms
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19. Tangerine Hotels
Ball Room
o 400 covers
o 3 doors with pre function area
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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 Desk
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21. Concept Positioning &
Marketing

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 lifestyle
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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 Marketing
23 Confidential Information

24. Development and Expansion
Plans

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 years
25 Confidential Information

26. Indian Hotel Industry

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
years
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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 space
28 Confidential Information

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 Phase
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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 Phase
30 Confidential Information

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 growth
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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 years
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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 growth
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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 Star
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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 Star
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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 Orchid
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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 Growth
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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 years
38 Confidential Information

39. Indian Hospitality Industry
Trends

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 stories
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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
avenues
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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 Class
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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 facilities
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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
market
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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 institutions
45 Confidential Information

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 ahead
46 Confidential Information

47. Management Team

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’Cunha
48 Confidential Information

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. 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, USA
50 Confidential Information

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 Dhabi
51 the World Confidential Information

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 India
52 Confidential Information

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, Dubai
53 Confidential Information

54. Tangerine Hotels
Snigdha Banerjee ; Director Operations
Taj Group of Hotels , India One & Only Royal Mirage , Dubai UEI Global Education India
54 Among the 10 Best Resorts in the Confidential Information
World

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 Chennai
55 Confidential Information

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, India
56 Confidential Information

57. Tangerine Hotels
Shivraj Johar ; Business Head
Taj Resort Maldives Gaylord Restaurant, Taj Residency,
New Delhi Vishakhapatnam
57 Confidential Information

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, India
58 Confidential Information

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 City
59 Confidential Information

60. Tangerine Hotels
Sameer Deshpande ; Operations Manager
Elite Hospitality , Radission Resorts & Spa, Sarovar Hotel & Amby Valley ,
Bahrain Alibaug Lonvala
60 Confidential Information

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, Ahmedabad
61 Confidential Information

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, Mumbai
62 Confidential Information

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. 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, Hyderabad
64 Confidential Information

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, Hyderabad
65 Confidential Information

66. Tangerine Hotels
Shaik Mohammad Sultan ; Corporate Chef
Elite Resort & Spa , Majorda Resort & Spa, Taj Banjara,
Bahrain Goa Hyderabad
66 Confidential Information

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-ups
67 Confidential Information

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 mindset
68 Confidential Information

69. Financials

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. 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, etc
71 Confidential Information

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. 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. 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 3.7x
74 Confidential Information

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 4.8x
75 Confidential Information

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 Information
76

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, etc
77 Confidential Information

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. 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. 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 3.4x
80 Confidential Information

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 3.0x
81 Confidential Information

82. Financials in USD
Land Buyout Model

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. 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. 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 3.7x
85 Confidential Information

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 4.8x
86 Confidential Information

87. Financials in USD
Land Lease Model

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. 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. 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 3.4x
90 Confidential Information

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 3.0x
91 Confidential Information

92. Exit Strategy

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 Buyer
93 Confidential Information

94. Thank You
Ashwin D’Cunha
Email: ashwinfnb@gmail.com
Mobile: + 91 9619279635
Bharat Vasandani
Email: bharatvasandani@gmail.com
Mobile: +91 9820789895
94 Confidential Information