The project includes a construction of a modern hotel and residential complex on a picturesque bank of the Dnipro River just two kilometers from Dnepropetrovsk, one of the largest cities of Ukraine. In the immediate vicinity of the facility (less than two kilometers) is a historical memorial complex "Starokodatskaya Fortress" 16 - 17 centuries. It is one of places where a famous trading route “From Vikings to the Greeks" ran.
Excellent transport connections (the close proximity to the city, highway ''Donetsk - Zaporozhye" and an international airport" Dnepropetrovsk "is just a ten minute drive away), in a conjunction with the stunning nature views makes this development an excellent option as a country residence for residents of Dnipropetrovsk, as well as a place to stay for city visitors and a perfect venue for various corporate events.
The total area of development is 12 hectares: 8.8 are private property, 1.2 ha - the land of common use (roads, power line protection zone, and an artificial lake), 2 hectares - lease agreement for waterfront land for 49 years.
The project is planned in three major phases:
1) The first phase includes the construction of comfortable modern hotel for 52 rooms with SPA-center, conference hall, a cinema, a restaurant with a summer terrace near the picturesque artificial lake.
Comfortable residential cottages (15 - 25 units) will be located nearby, which can either be sold as private property (including an option as a prestigious corporate residence), or put into long-term lease
2) The second phase involves the construction of the community center, which consists of a convenience store, pharmacy, laundry, sauna, private housing office and shopping mall (beauty salon, billiards, bowling, cigar room, cafe and a pool with a small aqua park). It is planned to continue the cottage development in the amount of additional 10 - 25 units.
3) The third stage is the development of recreational and water sports facilities named as "Marina": the construction of the yacht club with a dock for parking boats and catamarans (further planning is to organize the sale of yachts and cabin boats), a landscaped 360-meter river embankment and private beach.
Use of a single architectural style in residential areas, good zoning division to the open public and residential areas with limited access, the location of landscaped green areas, 24/7 security service makes this complex an attractive and comfortable place for living and recreation.
It is proposed to purchase of 50-70ready-made sets of houses of S.I.P. Panels (U.S.).
The cost estimate assumes U.S.A. equipment to outfit the U.S. hotel, restaurant and cafe. The proposed equipment for the yacht club, pier and boat maintenance, jet skis, boats and modules to collect floating pontoons - Marine Travel Lift and Jetdock.
One of the priorities of the complex will be a corporate service (conference-hall hire, various presentations, teambuilding and other corporate events).
An international "time-share" marketing scheme is proposed to be implemented in order to achieve a required level of profitability. It allows to attract a significant number of guests on the program of a long-term rental of hotel rooms or a cottage up to 30 years for 1 - 2 weeks per year, with an possibility to share in the holiday elsewhere.
Largest operator of "timeshare" is RCI, which involves hundreds of hotels around the world. The cost of "time-share" for the consumer is comparable to the cost of a new car, but each year the owner of this package is guaranteed to stay in any hotel network with his/her family with much more comfort and less expensive than a traditional vacation package.
Considering the current level of property prices and the market trend of polarization these "equity" sales of accommodation facilities are promising, as it will provide an influx of new middle class clients.
So, the construction of a hotel complex with additional residential cottages and infrastructure in its territory seems to be reasonable not only for the operation of the complex, but also from the possible prospects of a partial sale or a long-term lease of some cottages to other interested parties.
This strategy will ensure an average annual occupancy of the complex at 65%.
EBIT is predicted to be at least 20% of the investment cost of the project.
Total investment required to execute the project is €35 million.
As of today:
* plot plan of development with a detailed zoning is developed (attached)
* June 2011 – a dam construction permit received from local authorities (required to build the artificial lake)
* 2009 - transformer substation was commissioned
* January 2012 ???? – construction permit received for system of artesian water.