NEW FIVE STAR HOTEL

Project description

The project aims to develop and operate a new upmarket 5-star hotel at Nkopola, in the picturesque Lake District of Mangochi. This upscale hotel will boast 150 luxurious accommodation rooms and a state-of-the-art 400-conference centre positioning Malawi to attract high-profile international conferences and esteemed clientele at the lakeside. This project complements the existing Sunbird Nkopola premier beach resort in Malawi, offering upscale accommodations, watersports, and conference facilities, potentially expanding the capacity of the existing services at Nkopola.

The project is promoted by Sunbird Tourism Plc, Malawi's leading hospitality company. Sunbird Hotels and Resorts, renowned as the country's premier hotel chain, boasts an impressive portfolio of nine properties strategically located across Malawi namely; City Hotels: Sunbird Capital, Sunbird Mount Soche, Sunbird Lilongwe, and Sunbird Mzuzu, popular beach resorts: Sunbird Waterfront, Sunbird Livingstonia, Sunbird Nkopola, and, Sunbird Chintheche, and an iconic mountain resort in the former capital city of Zomba; Sunbird Kuchawe. Sunbird Hotels & Resorts” the home of hospitality ’’ is known for offering excellent and personalised services, exquisite cuisine, and comfortable accommodations.

Financial requirements

• Investment capital - The project will require an investment of between EUR31 Million and EUR45 Million (US$35Million - US$50 Million).
• Working capital - The project has a working capital requirement of about EUR 1.8 Million - EUR3.6 Million (US$2 Million – US$4 Million)
• Financing structure - A healthy mixture of debt and equity, with a debt-equity ratio of 60-40 proposed in the feasibility.

Proposed investment model

• Joint venture partnership - Sunbird is looking for Joint Venture partners for the Special Purpose Vehicles (SPV) that will be formed to implement the project. The land will be demarcated and transferred to the joint venture.
• Financing – The joint venture partners will contribute capital at agreed participation levels and the joint venture will borrow funds for the project.
• Management - Sunbird will operate the property on a management contract.

Contacts

Sunbird Hotels and Resorts

P.O.Box 376

Blantyre

Malawi

• Barnet Gausi, Head of Finance & Company Secretary - barnet@sunbirdmalawi.com
• Thumbiko Kondowe, Senior Manager, Customer Experience - thumbiko@sunbirdmalawi.com