Investment Projects

Hotel complex in Konaev

  • Indicator Results
  • Investment amount, thousand US dollars 8 000
  • NPV of the Project thousand, US dollars 8 871
  • IRR, % 30,9%
  • EBITDA yield, %
  • Payback period, years 5,84
  • Discounted payback period, years - - 7,93

Products and services

The complex will offer its services to residents and guests of Almaty and Almaty region, as well as to foreign tourists. When reaching full design capacity with a room stock of 108 rooms of various categories and 29 bungalows, the complex plans to serve more than 30 thousand visitors annually.

Project

It is planned to modernize and expand the multifunctional hotel complex "Nomad Village" on the northern coast of the Kapshagay reservoir in the city of Konaev. The complex provides a universal set of tourist services for family and active recreation, recreation for adults, as well as health, corporate and sports recreation. The project will be implemented on a land plot of 10.7 hectares (56 km from Almaty), to which engineering networks are connected and the corresponding transport infrastructure is carried out. At the moment, the Complex has 2 buildings, equipped and ready for use 29 bungalows, a restaurant, children's and adult pools.

Company

The initiator of the project is Center Project LLP, which specializes in managing distressed assets of Bank CenterCredit JSC.

Market

  • In 2020, the volume of the tourism industry of the Republic of Kazakhstan decreased by 34.2% compared to 2019 and amounted to 7.7 billion US dollars. The main reason for the fall was the COVID-19 pandemic and the quarantine measures introduced. After the pandemic, the market grew by 23.4% in 2021 and 17.9% in 2022. According to Kazakh Tourism, in 2021, Kazakhstan ranked 66 out of 117 countries in the World Travel and Tourism Development Index, ahead of Montenegro (67 ), Morocco (71), Kyrgyzstan (90). According to Marketline forecasts, by 2027 the size of the tourism market in Kazakhstan in value terms will be $16.7 billion, an increase of 49% compared to 2022.
  • Almaty resort areas are one of the most popular resort areas in the Republic of Kazakhstan, the cumulative average annual growth rate in the number of visitors for 2018-2022. amounted to 42%. The growth is due to the increasing popularity of domestic resorts and the influx of tourists from neighboring countries.
What is the attraction of the project?
  • Year-round accommodation and existing infrastructure. The location on the shore of the Kapshagay reservoir is attractive for a year-round offer of tourist services, including various types of spa treatments, conferences for the business community, hotel accommodation and other types of recreational activities. The hotel complex functioned from 2010 to 2016, providing services that meet the standards of a five-star hotel. The territory of the Complex includes a land plot with an area of more than 10 hectares, sufficient for expansion and construction of additional leisure facilities for guests.
  • Attractive location. As a transport and logistics hub linking Europe and China, Konaev has a huge tourism potential due to its unique natural characteristics and developing infrastructure.
  • Governmental support. The tourism industry in the country is actively supported by the state. State support measures include reimbursement of part of the costs for the purchase of equipment and the construction of tourist facilities.
Investment proposal

For the implementation of the Project, financing in the amount of 8,000 thousand US dollars is required (at the rate of KZT/USD 449.2 tenge):
  • 70% (USD 3,132 thousand) - debt financing (subject to collateral);
  • from 30% (1,342 thousand US dollars) - investor participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.


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