MALAWI SUN - Hilton Hotel Lilongwe

TOURISM

Information

Project description

Malawi Sun Hotel and Conference Centre Limited (MSHCCL) has identified a unique opportunity for the development of a 144 room, 4-star, full service, business conferencing hotel in Lilongwe. It has also successfully negotiated a development agreement and franchise contract with Hilton Worldwide for this development. Lilongwe is the capital city of Malawi, and also home to many corporate offices that attracts business travellers. The hotel will offer full-service accommodation, on-site full service restaurant and a variety of on-site amenities such as swimming pool, on-site conference facilities, laundry, meeting rooms and other amenities. MSHCCL has already constructed the “Shell and Core” of the main building. The Hotel is based in Area 46 a new and upcoming suburb in Lilongwe, Malawi.

Financial requirements

Total required funding is expected to be USD 15 million. About USD 2.8 million has already been invested into the project so far, leaving a balance of USD 12.2 million.

Current Shareholders: USD 3 million

Debt: USD 2 million

New Equity: USD 10 million

Total Capital USD 15 million

Proposed investment model

A combination of debt and equity.

Equity - the promoters are looking to raise about USD 10 million in equity through private placement to finance completion of the project.

Long term debt - the hotel development is expected to raise about USD 2 million debt to support the development.

Project feasibility:

Return on Capital (ROCE) is projected to average 31% during the first 5 years of operation.

Return On Equity (ROE) is projected to average 19% during the first 10 years.


Contact

Malawi Sun Hotel & Conference Centre Limited

Robins Road

P.O. Box 2800 Blantyre

Malawi.

Email: innom@malawisunhotel.com

Website: https://www.malawisunhotel.com/Home

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