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All-Season complex with business and entertainment component in the Saratov region

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The Challenge

At the moment of appeal to Cushman&Wakefield the Client of Hospitality and tourism department had to make a participation decision on the project multifunctional entertainment complex realization, located on the Volga river in 30 km from Saratov.

The project has represented new format of commercial estate for Saratov region: midscale hotel, entertainment and business components.

The Solution

Step 1. C&W Hospitality and Tourism Department has been analyzed the multifunctional complex coverage area on a subject of existing and planing hotel, business and recreation facilities supply, and also on a value and quality characteristics of existing and future demand for each kind of services, proposed by the Subject complex.

Step 2. On the held analysis bases the concept optimization has been proposed for the purpose of its effeciancy improvement. New concept of an all-season complex has represented the combination of components, which have opposit-direction seasonality of demand. That allows Complex to work with the maximum occupancy during whole year:

• Exhibition and Congress centre as the anchor element for business tourists;

• Educational park for demand attracting during school year;

• Entertainment objects, forming the maximum number of "returning" demand: aquapark; adventure park; amusement park, climbing wall;

• Two hotels for expanding geographical range and coverage area of the project.

Step 3. On the basis of the held analysis it was prepared a financial model that described a 10-year forecast cash flows from the Complex operation. It was also conducted a sensitivity analysis of financial results to the changes in basic occupancy indicators of the Complex. The analysis was performed in consideration with various options of financing in the public-private partnership frames.

The Results

As result of the held analysis it was the Department specialists’ proposals on optimization of existing concept and conclusions on degree of the project compliance to the investor’s profitability expectations. Our work has become an instrument for further dialogue between the Client and Regional administration regarding the concession agreement for realisation of the project on construction and operation of the Complex.