THE PARTNERSHIP OPPORTUNITY
Project scope is to develop an Eco-Luxury resort on the island in the Sipadan region. The resort will be a luxury “destination” resort, with luxury, comprehensive activities and facilities including medi-spa, gym, nature walks and tours. The resort will also sponsor and manage a rehabilitation centre for wildlife brought in from the neighbouring Palm plantations. The resort will have the highest standards of construction, the finest interior decorating with influences from the local environment, and conform to all environmental standards as well as helping socially with training and jobs for local people.
The Market Opportunity – why Sipadan?
The reasons to invest in a resort in an island development in Sipadan include:
– It is world famous as one of the top dive spots in the world
– Unlike the more developed tourism areas of Bali, Phuket, Maldives, it is still very undeveloped with tourists loving the untouched locals, wildlife and environment
– There is little competition – this will be the first luxury destination resort in the area
– Room rates are extremely high – average 1,000RM per night per person
– International visitor numbers are increasing around 20% per year to the region and islands
– Supply of hotel rooms will always be limited as the region is quite small and conservation NGOs are putting stops and limits on developments.
Joint Venture – Directors
The project will be a Joint Venture (JV) between the founder and investor. To keep things simple, flexible and fast moving, we propose only these 2 persons/companies to be on the board of directors.
The project is initiated and managed by Australian manager who was sole Founder and Director for Asia Pacific’s most successful tourism company. After 8 years, the company has been sold to allow the director to now concentrate entirely on this new project.
The director will be backed by Asia Pacific’s most successful and talented individuals – in regards to architecture, development, F&B and spa operations. These will be employed on a contract basis only, with no shareholding.
The initial investment we are seeking to build 30 luxury pool villas is $9m USD total. This will also include a state of the art medi-spa, gym, restaurant, landscaping and staff quarters.
Payback from the initial investment will just be 4-5 years, and returns will be ongoing as we seek to create a loyal base of customers through programs seeking repeat and referral visitors.
Revenue per year is targeted at $4m, this is only room revenue. Additional revenue will be through F&B, tours, spa operations.
Operation costs are around $800k per year, allowing extra than normal resorts for more staff and training to excel in our service.
As well as excellent economic returns, the investor will also gain:
– International recognition as the owner of one of the leading resorts, if not the best, in Sabah. With international representation through Australia, NZ and the UK, we will aim to get the name through international media, to target the cream of luxury travellers.
– Helping the environment and local displaced wildlife that has been displaced with plantations
– Giving a new life to many local people through training and employment of otherwise underprivileged people
– Lifestyle – A large residential villa can be built and reserved for the investor to keep if desired so that there is always a permanent luxury residence for family and friends
A new holding company will be set up, incorporating the Investor and the Founder – with a mutually agreed equity split. The venture can last as long as mutually agreed by both parties.
The villas may be sold to individual investors, or the entire resort to a single investor – in which case, shares will be valued by professional valuer and proceeds will be split on exit.
The aim is that the resort will not be sold, and instead our profits will be reinvested in more developments as we build the brand of eco-lux boutique resorts through upcoming unexplored regions in Asia Pacific. E