Hospitality Industry IT Solutions Provider

Hospitality Industry IT Solutions Provider

An IT company (commencement date 01-01-2006) with decent financial back up and specialized in total solutions for the hospitality industry is offering investors a serious opportunity with limited risk and potentially high ROI.

The company is specializing in web based total solution for the hospitality industry that supports multiple properties transparently, it is 100% integrated without any need for import of files or interfaces and guarantees a 99,99% uptime. Currently it is the only system in the world that providing a total solution from reservations to back office within a single 100% integrated solution.

The first commercial version of its system has required an investment of over 30 men years, which shows the commitment of the shareholders to enter the hospitality market. As per January 1st 2009 an infrastructure with 31 people was in place. The investment in human resources is important as the company can only afford to have successful installations and high quality R&D. Therefore people need to be trained, support needs to be first class and development must be able to fulfill customer needs even when sales still has to pull off.

The year 2008 was the first commercially important year for the company as its product suite was released in November 2007. As per July 2009 the past achievements have been successful and have resulted in the following situation.

Update as per July 1st 2009: ( Installed Base )

12 in Malaysia;

Summerset, Kuala Rompin
Paradise Sandy Beach, Tanjung Bungah
Hotel Feringghi, Batu Ferringhi
Hotel Piccolo, Kuala Lumpur
Bukit Gambang Resort City, Bukit Gambang
Bubu Long Beach, Perhentian Island (Kecil)
Hotel Sempurna, Bukit Gambang
Hotel Rainforest, Kuala Lumpur
Hotel Starnis, Kota Kinabalu
Gayana Resort, Kota Kinabalu
Bungah Raya, Kota Kinabalu
Hydro Hotel, Tanjung Bugah
6 in Indonesia;

Hotel Grand Aston, Medan
My Hotel, Medan
Hotel Pandurata, Jakarta
Puri Denpasar, Jakarta
Best Western Kuta Condotel, Bali
SBS Hotel School
Currently the company has a portfolio of 30+ contracts for which the installation still has to be realized. These installations will take place in Malaysia, Indonesia and The Netherlands. In addition, forecast first installation in UAE, Vietnam and Cambodia will be realized in 2009 & early 2010, as well.

INVESTMENT SUMMARY

Based on the financial planning, including sufficient reserves, the Company is looking for an investment of 2,5 million RM (500,000 euro) for which it is willing to issue 10% shares to the investor(s). The share percentage is from the share capital and represents a higher value related to the paid up capital. Therefore the 5% share batches will never be diluted to a lower percentage than issued.

hotel3Considering the fact that the company will be worth at least 75 million Euro by 2012, a high Return on Investment can be expected over a period of 3 years, 2012 year of the IPO. The assumption of 15 times the profit of the year 2012 is a realistic assumption, in particular if the Company can show the annual growth figures as projected.

An investment of 500,000 Euro would result in a minimum capital gain of 7,500,000 euro, 15 times the initial investment over a period of 3 years. The company reserves at least 20% of the profit for dividend purposes, which creates an additional ROI for the investor(s).

The profile and the terms and conditions of the investor are definitely important. The potential investor should not only invest, but also bring added value with regards to the credibility of the Company, which is always an issue during the start up of a new company.

The potential investor, preferably, is familiar with the hospitality business or at least is able to open doors and introduces it to business partners in Asia, Middle East or Europe.
The potential investor should bring added value to the overall management of the company and create a real partnership with the other shareholders of the company.

CAPITAL.MY