MOJO Eco Surf Resort

Conversion of Sol House Hotel

By proposed Operator:
MOJO by KB Hospitality
Taghazout, September 3rd, 2020

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 MOJO Eco Surf Resort

Disclaimer:
The forecasts and projections contained in the attached documents or statements have been prepared using the proprietary systems and
methodologies of KB Hospitality and its affiliates and are therefore provided on a confidential basis. None of the forecasts, projections, or
the information related thereto or derived therefrom may be shown to, or relied upon by, any other person other than the intended
recipient of the attached documents and statements without the prior written consent of KB Hospitality and its affiliates. The assumptions
used in preparation of these forecasts and projections, although considered reasonable by KB Hospitality and its affiliates at the time of
preparation, are subject to and may be affected by changes in, financial, economic, natural or other circumstances beyond the control of
KB Hospitality and its affiliates (including the volatility of the global financial markets, and the severity or longevity of international terrorist
threats, pandemics and their impact on the economy and the lodging industry) and may prove incorrect. The actual results achieved during
the relevant period may vary from the forecasted or projected results and those variations may be material. Accordingly, no guarantee or
warranty is made or implied by KB Hospitality and its affiliates or any of its directors, officers, employees, agents or representatives as to
the actual results that may be achieved during any period. KB Hospitality and its affiliates shall not be liable to any person for any use of, or
reliance on, the forecasts and projections contained in the attached documents.

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 MOJO Eco Surf Resort
Presentation

Situation:
The Surf Resort is facing the Surf Resort:
sea, located in the high end o 91 rooms: 16 house rooms and
tourism Resort of Taghazout 75 bungalows
Bay, some 15 km from north o 2 restaurants and 1 pool bar
of Agadir o Swimming pool
o Kids club
Resort Principles: o Spa
o o Fitness room
Sports Activities
o o Surf shop
Discovery
o o Surf academy offering various
Nature
o Sustainability activities: surf, stand up paddle,
kayak, bug laser, windsurf, yoga…

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 MOJO Eco Surf Resort
Mission Statement – Evolution in the Tourism Sector
 The new MOJO Eco Surf Resort , a conversion from an existing property, will take centre stage
within the Taghazout Bay tourism industry, through it’s unparalleled situation providing an
unspoilt view on the Atlantic Ocean, it’s sustainable architectural approach embedded in
stunning Morocccan landscapes and above all it’s leisure activities, with the Surf academy
being the highlight of the surf opportunities in the area.

 Tourism statistics released by the Moroccan Tourism Office, emphasize the continuous growth
of Morocco’s tourism sector. It states that more than 12 932 260 tourists visited the kingdom
in 2019, showing an increase of 5.2% over previous year’s figure for the same period,
according to the annual statistics report.
 The same report states that 25 243 989 room nights have been realized for 2019, in classified
hotels, an increase of 5% over 2019. 6 048 411 room nights have been realized for that period
in Agadir-Taghazout, an increase of 3% over the previous year.
 Tourism statistics for the same period show 4 star hotel occupancy % at 55 %, an increase of 2
points over last year. The region of Agadir-Taghazout has realized an occupancy of 57% for
that period (all hotel categories), a decrease however of 2 points over last year.

Source: observatoirdutourisme.ma

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 MOJO Eco Surf Resort
Mission Statement – cont’d
 The MOJO Eco Surf Resort , with it’s extraordinary location, is ideal for travelers wishing to
experience Morocco, away from the busy souks of Marrakech and Fes. It will attract travelers
who seek to focus on relaxation and wellness, and surf of course, while experiencing the
nature of the Atlantic Ocean and it’s surroundings with the nearby Paradise Valley and Souss
National Park.

 The Hotel has a unique architectural concept, with a sustainable ecological theme, offering 91
bedrooms, 2 Restaurants, 1 Pool Bar, swimming pool, kids club, spa, fitness room, surf shop,
surf academy offering various activities: surf, stand up paddle, kayak, bug laser, windsurf,
yoga… This unique concept makes it an all year round destination, for family vacation in
summer and discovery and activity vacation all year long.

 The kingdom of Morocco, with the first class tourism hot spot it has become, is easily
accessible from Europe, Africa and the Middle East; the region of Agadir-Taghazout is a
destination within itself, to which the Surf Village will contribute through the ambiance and
service that has become the hallmark of our brand and innovation in guest satisfaction.

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 MOJO Eco Surf Resort
Proposed Operator - Presentation
 The proposed Operator – KB Hospitality s.a.r.l. is a registered company in
Km 28 Immi Ouaddar – Tamri, Agadir, Morocco.

 KB Hospitality has successfully managed several properties in Taghazout

Bay, for the past 7 years, in the person of Mr Jaafar El Mekkaoui,
Managing Director, and his professional team, on behalf of the
ownership:

…
….
….
….
….

 KB Hospitality plans to operate the proposed Management of the Surf

Village through it’s commercial brand MOJO.

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 MOJO Eco Surf Resort
Proposed Operator - Expertise
KB Hospitality has successfully managed the 5star Ecoresort
Paradis Plage in Taghazout Bay, on behalf of the ownership, for
the past 7 years.

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 MOJO Eco Surf Resort
Proposed Operator - Expertise – cont’d

• Following are some Financial Highlights from the business

growth evolution at Paradis Plage:

 Occupancy 2015: 44.2% vs Occupancy 2019: 79.1%
 Revpar 2015: 578 MAD vs Revpar 2019: 867 MAD
 Total Rev 2015: 44.6, Mio MAD vs Total Rev 2019: 63 Mio MAD

• Here are some ratings from webbooking engines for Paradis

Plage:
 Tripadvisor: 4.5 of 5: Excellent
 Booking.com: 8.9 of 10: Fabulous
 Holidaycheck.de: 5.5 of 6: 95%

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 MOJO Eco Surf Resort
Proposed Operator - Expertise
KB Hospitality has successfully managed the …….. on behalf of
the ownership, for the past …….. years.

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 MOJO Eco Surf Resort
Proposed Operator - Expertise
KB Hospitality has successfully managed the …….. on behalf of
the ownership, for the past …….. years.

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 MOJO Eco Surf Resort
Proposed Operator - Expertise
KB Hospitality has successfully managed the …….. on behalf of
the ownership, for the past …….. years.

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 MOJO Eco Surf Resort
Proposed Operator Expertise – cont’d
Given the similarities between the Paradis Plage Resort
operation and the proposed Surf Village operation, the
proposed Operator positions himself as the number 1 choice:

 Ecological sustainable resort – eco-responsibility

 Surf Academy – passionate about surf

 Spa & Fitness plus Yoga Academy – wellness & healing for
body and soul

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 MOJO Eco Surf Resort
Financial Projections – Year 1
Projections - Year 1
Statistics
Rooms Available 33,215
Rooms Occupied 16,611
Occupancy % 50.0%
Average Rate 950.11
RevPAR 582.12
F&B Covers 65,705
F&B Average Check 192
In MAD '000
Revenues
Rooms 15,782 50.0%
Food & Beverage 12,613 40.0%
Other Operating Departments 3,158 10.0%
Total Revenues 31,553.4 100.0%
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 MOJO Eco Surf Resort
Financial Projections Year 1 – cont’d
Projections - Year 1
In MAD '000
Departmental Profit
Rooms 12,347 78.2%
Food & Beverage 4,985 39.5%
Other Operating Departments 305 9.7%
Total Departmental Profit 17,637.3 55.9%
Undistributed Expenses
Administrative and General 3,616 11.5%
Sales and Marketing 2,565 8.1%
Property Operations and Maintenance 1,736 5.5%
Utilities 1,229 3.9%
Total Undistributed Expenses 9,145.9 29.0%

GOP 8,491.3 26.9%

Total Payroll 9,076.3 28.8%

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 MOJO Eco Surf Resort
Financial Projections- Year 1 – cont’d
Projections - Year 1
In MAD '000
Management & Incentive Fees
Base Fee 947 3.0%
Incentive Fee 1,698 5.4%
Total Fees 2,644.9 8.4%

Income Before Fixed Costs & FF&E 5,846.5 18.5%

Fixed Costs & FF&E

FF&E Reserve 1,262 0.0%
Insurance 25 0.1%
Taxes 165 0.5%
Other 0 0.0%
Total Fixed Costs & FF&E 1,452.1 4.6%

EBITDA 4,394.3 13.9%

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 MOJO Eco Surf Resort
Geographical & Market Mix

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 MOJO Eco Surf Resort
Marketing Strategy
 Internal Assessment

Hotel Sol House opened in 2016, when it was branded as a 4 star Melia
resort, a Spanish owned company.
Due to the fact that we have very little information about the internal
functioning of the hotel the following points have to be assessed as a
priority:

• Hotel personnel in place: assess the number and competence of staff

and set clearly defined strategies and objectives

• Information system: assess level of information system on site and

implement a standardization of data input, maintain periodic checks

• Assess current overall guest satisfaction and ratings and reposition in

line with given opportunities

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 MOJO Eco Surf Resort
Marketing Strategy
 New product & image – Reposition on strengths

 Identify strenghts and comptetitive advantages and integrate them in all advertising
and marketing communications
 Focus the sales on the strong points of the hotel :
• Location
• Ecological concept
• Surf and family destination
• Surroundings and discovery

 Sales & Marketing Actions

• Ensure presence in all major booking engines and internet presence through google
ad word search
• Create new website
• Press releases to make new announcement about Surf Village
• Presence at the main Wellness & Surf exhibitions around the world
• Launch new hotel collateral
• Organize famtrips out of all main markets to showcase product (Europe – Asia –
Middle East – National) in cooperation with Tourism Office and Royal Air Maroc
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• Presence at the main tourism exhibitions: ITB – Top Res – FITUR – BIT Milan – ATM
 MOJO Eco Surf Resort
Financial Projections – 5 Years

5 Year Plan
Year 1 Year 2 Var. Year 3 Var. Year 4 Var. Year 5 Var.
Statistics
Rooms Available 33,215 33,215 33,215 33,306 33,215
Rooms Occupied 16,611 18,268 10.0% 19,929 9.1% 21,316 7.0% 22,586 6.0%
Occupancy % 50.0% 55.0% 10.0% 60.0% 9.1% 64.0% 6.7% 68.0% 6.3%
Average Rate 950.11 960.00 1.0% 970.00 1.0% 980.00 1.0% 990.00 1.0%
RevPAR 582.12 528.00 -9.3% 582.00 10.2% 627.20 7.8% 673.20 7.3%
F&B Covers 65,705 69,582 5.9% 72,296 3.9% 73,742 2.0% 74,848 1.5%
F&B Average Check 192 196 2.0% 200 2.0% 204 2.0% 207 1.5%
In MAD '000
Revenues
Rooms 15,782 50.0% 17,538 50.0% 11.1% 19,331 50.0% 10.2% 20,890 50.0% 8.1% 22,360 50.0% 7.0%
Food & Beverage 12,613 40.0% 14,030 40.0% 11.2% 15,465 40.0% 10.2% 16,712 40.0% 8.1% 17,888 40.0% 7.0%
Other Operating Departments 3,158 10.0% 3,508 10.0% 11.1% 3,866 10.0% 10.2% 4,178 10.0% 8.1% 4,472 10.0% 7.0%
Total Revenues 31,553.4 100.0% 35,075.0 100.0% 11.2% 38,662.3 100.0% 10.2% 41,779.0 100.0% 8.1% 44,720.7 100.0% 7.0%

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 MOJO Eco Surf Resort
Financial Projections – 5 Years- cont’d

5 Year Plan
Year 1 Year 2 Var. Year 3 Var. Year 4 Var. Year 5 Var.
In MAD '000
Departmental Profit
Rooms 12,347 78.2% 13,758 78.4% 11.4% 15,186 78.6% 10.4% 16,388 78.4% 7.9% 17,542 78.4% 7.0%
Food & Beverage 4,985 39.5% 5,715 40.7% 14.6% 6,574 42.5% 15.0% 7,393 44.2% 12.4% 8,113 45.4% 9.7%
Other Operating Departments 305 9.7% 402 11.5% 31.8% 546 14.1% 35.7% 698 16.7% 27.8% 822 18.4% 17.7%
Total Departmental Profit 17,637.3 55.9% 19,875.5 56.7% 12.7% 22,306.7 57.7% 12.2% 24,478.4 58.6% 9.7% 26,475.9 59.2% 8.2%
Undistributed Expenses
Administrative and General 3,616 11.5% 3,725 10.6% 3.0% 3,837 9.9% 3.0% 3,952 9.5% 3.0% 4,070 9.1% 3.0%
Sales and Marketing 2,565 8.1% 2,642 7.5% 3.0% 2,721 7.0% 3.0% 2,802 6.7% 3.0% 2,887 6.5% 3.0%
POMEC 1,736 5.5% 1,770 5.0% 2.0% 1,823 4.7% 3.0% 1,878 4.5% 3.0% 1,953 4.4% 4.0%
Utilities 1,229 3.9% 1,241 3.5% 1.0% 1,254 3.2% 1.0% 1,266 3.0% 1.0% 1,279 2.9% 1.0%
Total Undistributed Expenses 9,145.9 29.0% 9,378.4 26.7% 2.5% 9,634.9 24.9% 2.7% 9,898.9 23.7% 2.7% 10,189.3 22.8% 2.9%

GOP 8,491.3 26.9% 10,497.1 29.9% 23.6% 12,671.8 32.8% 20.7% 14,579.5 34.9% 15.1% 16,286.6 36.4% 11.7%

Total Payroll 9,076.3 28.8% 9,348.6 26.7% 3.0% 9,629.1 24.9% 3.0% 9,918.0 23.7% 3.0% 10,215.5 22.8% 3.0%

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 MOJO Eco Surf Resort
Financial Projections – 5 Years- cont’d

5 Year Plan
Year 1 Year 2 Var. Year 3 Var. Year 4 Var. Year 5 Var.
In MAD '000
Management & Incentive Fees
Base Fee 947 3.0% 1,052 3.0% 11.2% 1,160 3.0% 10.2% 1,253 3.0% 8.1% 1,342 3.0% 7.0%
Incentive Fee 1,698 5.4% 2,099 6.0% 23.6% 2,534 6.6% 20.7% 2,916 7.0% 15.1% 3,257 7.3% 11.7%
Total Fees 2,644.9 8.4% 3,151.7 9.0% 19.2% 3,694.2 9.6% 17.2% 4,169.3 10.0% 12.9% 4,598.9 10.3% 10.3%

Income Before Fixed Costs & FF&E 5,846.5 18.5% 7,345.4 20.9% 25.6% 8,977.5 23.2% 22.2% 10,410.2 24.9% 16.0% 11,687.6 26.1% 12.3%

Fixed Costs & FF&E

FF&E Reserve 1,262 0.0% 1,403 4.0% 11.2% 1,546 4.0% 10.2% 1,671 4.0% 8.1% 1,789 4.0% 7.0%
Insurance 25 0.1% 28 0.1% 10.0% 28 0.1% 2.0% 29 0.1% 2.0% 29 0.1% 2.0%
Taxes 165 0.5% 182 0.5% 10.0% 187 0.5% 3.0% 193 0.5% 3.0% 198 0.4% 3.0%
Other 0 0.0% 0 0.0% 0.0% 0 0.0% 0.0% 0 0.0% 0.0% 0 0.0% 0.0%
Total Fixed Costs & FF&E 1,452.1 4.6% 1,612.0 4.6% 11.0% 215.0 0.6% -86.7% 221.2 0.5% 2.9% 227.5 0.5% 2.9%

EBITDA 4,394.3 13.9% 5,733.4 16.3% 30.5% 8,762.5 22.7% 52.8% 10,189.1 24.4% 16.3% 11,460.1 25.6% 12.5%

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 MOJO Eco Surf Resort
Property Conversion Strategy
 Assess current state of property (below list is not limited):
 Life safety features – front and back of house
 Technical Installations
 Structures
 General need of repair of guest rooms and public areas
 Quality of bedding and bathroom installations
 Disabled facilities
 Back of house installations - workspaces
 IT systems

 Identify weaknesses that may impact the quality of guest experience and work
experience of employees
 Focus on life safety and general safekeeping of guests and employees
 Determine overall investment funding needed
 Assess and review options with ownership to establish an investment plan to
address the above key issues before taking over the hotel
 Discuss options to finance the investment if needed
 The proposed business plan includes a 4% FF&E reserve

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