Viceroy Cartagena Download Executive Summary

CONVENTO OBRA PIAVICEROY CARTAGENA

Colombia’s 1st 6-star hotel

market background

the project• 14,163m2ofurbanconstruction• 102urbanguestrooms-42m2avg.size• 1stLasVegas-styledayclubinCartagena• 202m2infinitypool&terracebarw/360ºview• Rooftopterraceseating450+;2,100standing• 1stvaletparkingserviceintheoldcity• 650m2luxuryfitnesscenter&urbanspa• 225m2surface-levelswimmingpoollinkedtogym• 420m2crossfunctionevent-space• Signaturerestaurant&nightclub• 3-mealrestaurantseating140+• 3barareasseating200+• 2sandwicherias/cafés• 2luxuryboutiquestores• 8suitesw/privateterrace&jacuzzi• 60,000m2+ofbeachfrontconstruction• 15beachfrontcabanas-70m2avg.size• 1restaurant,scenebarloungeandbeachbar• Beachfrontspawith6treatmentroomsand

completefacilities

“One of the world’s top 10 cultural tourism destinations”

-The New York Times-

centro

san diego

hotel santa clara

hotel santa teresa

four seasons

(in progress)Centro

de convenciones

viceroy cartagena

obra pía

la matuna

getsemaní

New Architecture Colonial Restoration (Phase 1)

• Colombiahasexperiencedasustained “peacedividend” economicboom for15+years

• 5%+compoundedGDPgrowthsince1994 • 3rdlargesteconomy inLatinAmerica—

afterBrazilandMexico• U.S.-ColombiaFTA:2012• EU-ColombiaFTA:2014• Cartagena’s colonialfortcity(1533)isa

UNESCOWorldHeritagesite• Premier“jetset”destinationglobally• Oneofthe top5conferencedestinations in

LatinAmerica• Over750,000visitorsin2014• International airliftfromAtlanta,Houston,

Miami,JFK,Madrid,Frankfurt,etc. toCartagena’sint’lairportexpectedtotripleby2018

• VisitorstoCartagenaprojectedtogrowatadouble-digitpercentagepacefornextdecade

• High-endhospitalityintheoldcityareaofCartagena(siteoftheViceroyproject)is chronicallyunder-supplied;under1,000totalroomsat4starsandabove

• getsemaní: ConventoObraPíaislocatedintheheartofthe hippestneighborhood withinthecolonialcity

• Fullyentitled;mostriskypartofconstruction(Phase1:colonialrestoration)completed

orlando

miamift. lauderdalehouston

quito

existing routes

upcoming routes

panama city

madrid

frankfurt

new york

DuetoUNESCOprotections,ViceroyCartagena’s5-propertyfootprintrepresentsoneofthelastfewplacesincolonialCartagenawhereitispossibletobuildalarge-formathotel.

current situation viceroy cartagenadevelopment partners

things to remember aboutthe viceroy cartagena

VICEROY HOTEL GROUPviceroyhotelsandresorts.com

• 7countrieswith15+Hotelsinprime,exoticplaces

• Viceroy’shotelsandresortsoccupybothvibranturbansettingsandspectacularresortlocations.

• Glamorousandexclusivesensibilitythatepitomizestheheightofluxury.

• AssetsinViceroyportfoliohaveconsistentlybeenrankedamongstworld’sbesthotels,includingViceroySantaMonica,ViceroyPalmSprings,ViceroyAnguillaandViceroyMaldives.

• ViceroyHotelsandResortsembodytheessenceofstyleandservice.

KIT CAPITALkitcapital.com

KITCapitalisafamilyofficeandmerchantbankfirmfoundedin2001byserialentrepreneurandformerGoldmanSachsinvestmentbankerKaleilIsazaTuzman.

Sinceinception,KITCapitalhascreatedoverUS$1billioninincrementalmarketvaluethroughmanagedinvestmentsandassetsales.

ThefirmhasbeenanactiveinvestorinCartagenarealestateforoveradecadeandhasbeensuccessfullyinvestinggloballyinhigh-endhospitalityprojectssince2005.

RepresentsaprimeassetbetonColombia’spositivemacrotrajectory

AnnualIRRof20%(withoutanyleverage)

Takesadvantageoflong-termshortageofhigh-endhospitalitysupplyinCartagena’scolonialcity

Limitedexecutionrisk:Phase1constructioncomplete;experiencedhotelinvestor

TaxincentivesforhotelconstructioninColombiaprovide30yearsofincometaxexemptions

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Colombia’s 1st 6-star hotel

Thepartnersbringrecentexperienceinotherupscaleand6-starhospitalityprojectssuchas:

• ViceroyDubaiPalmJumeirah• ViceroyNewYork• ViceroyBodrum(Turkey)• ViceroyMiami• CoralHiltonBaghdad• D’OroMedellín(inprogress)

• Beginningin2010,KITCapitalpurchased5borderingpropertieswithintheGetsemaníneighborhoodofcolonialCartagena.

• Architecturaldesigns-integratingcolonialrestorationandnewbuild-completedbyrenownedcolonialrestorationfirmBarrera&Barrera.

• CompetitiveprocessesledtoKITCapitalchoosingViceroyHotelGroupasoperatorandinternationallyacclaimedfirmArquitecturadeInteriorestoleadinteriordesignontheproject.

• 3-yearprocessofobtainingIPCC/UNESCOapprovalswascompletedinApril2014;constructionlicenseobtained.

• ConstructiononPhase1(colonialrestoration)commencedNovember2014andcompletedontimeandunderbudgetinAugust2015.

• Executionriskhasbeenvastlyreduced,withallentitlementsinplaceandmostriskyphaseofconstructionhasbeenfundedandcompleted.

• KITCapitalhasreceivedattractiveinstitutionalequityco-investmentanddebtofferstofillPhase2fundingneed;hybridroundisintendedtobuildfutureequityco-investmentrelationshipsandincreasenegotiatingleveragebyfundingconstructionthroughQ12016.