1. MM INVEST BANJA LUKA HOTEL 4 stars

2. Banja Luka hotel development
Project
MM Invest is developing mid-scale business branded hotel in the center of Banja Luka, administrative center of Republic of Srpska (RS), BiH. The development consists of a 118 keys branded hotel on up to 9 floors throughout two parts of the building, limited conference and gym facilities, and 2 underground floors offering parking spots, with total building gross area of 7,357 m2 (the “Project”).
Sector of industry
Hotel industry, residential construction, real estate
Location
Hotel is located at an attractive location in Banja Luka, in the center of the city, in Class A office district headquartered by RS Government building, RS Parliament, BH Central Bank and other institutional clients. By its architecture, Hotel surely ts into a new business ambience that is being developed in this city zone.
Objective of the project
There is a strong demand in Banja Luka for well-built and serviced hotel accommodation that meets EU standards. There is a lack of supply of quality hotel room products which is exacerbated by the fact that Banja Luka does not have a branded hotel while it is an administrative center of RS government institutions. This represents a great opportunity for a well-established hotel brand to enter the market.

3. Location

4. Why to be here? All the adventages and key characteristics
The Project is a major new development with an excellent central city location in Banja Luka, addressing the real demand for an internationally branded, serviced, and managed hotel. It provides unique platform in bringing together both business and leisure guests due to close proximity to both business and tourism districts. The Project will establish itself as a new prestigious hotel address in a capital city.
Proximity to client, major government and business institutions including tourism attractions
Banja Luka lacks well serviced branded hotels – it is untapped market
Good traffic orientation and easy walking access to city main attraction
Experienced developer with prime downtown location with easy city access to night life
Use site access and visibility for project marketing and positioning
Hotel is a main generator of business developments, thus will bring further investments into Banjaluka region
Hotel will provide numerous well trained jobs and stimulated local SME providing goods and services to hotel on daily basis

5. Current state on location

6. Important note
Project will feature 116 rooms + 2 apartments including adjacent amenities (conference and gym) typical for a mid-scale branded hotel technical standards. It will be built as two adjacent buildings with seven floors each (+2) and two garage underground floors. Number of floors changes in accordance with an outer view and design, therefore first Project building adjacent to Grawe office building is following existing construction and façade elements, consisting of ground floor + 7 levels. Second building is the tower consisting of ground floor level + 10 levels matching in elevation with first building but differing in the façade design. Business travelers and leisure guests will utilize Project as their preferred choice of stay further providing synergies between commercial and hospitality components.
Rooms are designed from the second floor throughout the tenth floor, while conference area is accommodated at the first floor with 180 seats, the conference area can be further organized as restaurant with 122 seats. Room average size is 26 sqm (room size range from 22 sqm to 34 sqm) with 2 junior suites in size of 45 sqm. Lobby café will be designed as city café attracting citizens of Banja Luka thus creating lively and constant vibrant space articulation
Project will feature 30 garage parking spaces plus 10 outdoor paring spaces for use by both hotel and business guests, and will offer both hourly and daily parking including a valet parking. Fitness area and part of back of the house will be based at underground while all facilities, including rooms, restaurants, and conference areas will be interconnected with garage via elevators.

8. Operational Strategy
Key driver for Project development and positioning strategy is growing market demand for business lodging in Banja Luka. With opening of two branded Marriott hotels in Sarajevo and impeding opening of Starwood Westin and Best Western in 2016 it is now right time for Banja Luka as a second biggest city in BH and RS administration center to follow on this positive trend. Project will be able to enter the market with a fresh designed product, supported with global brand sales and marketing reservations channels, and develop its market base rapidly in fast growing hospitality destination through focus on customer relationship and consistent service level. Due to the location, available amenities and size of rooms, Project fits business mid-tier hotel brand category, under a franchise option run by a 3rd party operator. Project model is targeting affluent business and leisure travelers who are looking for recognizable hotel options within city parameters offering standardized and familiar services and amenities.

9. Financial aspects of the investment in Hotel Banja Luka
The estimated total project cost is €13 million for developing and constructing total building area of 7,357 m2. MM Invest has provided equity in the amount of €6,5 million including capitalized land, and value of all works up to date. MM Invest is now seeking a long term JV partner, who will takeover majority ownership of the project.
Anticipated debt facility in the amount up to €6,5 million to complete the Project.

10. Project owner and construction company
MM Invest
The Company “MM Invest“ Banja Luka was founded in 2007 with the aim to provide high quality and reliable services related to real estate construction, leasing, and development, and marketing. The primary activity of our Company is to build high-quality and modern business facilities, where we have proved to be a reliable partner in recent years, able to meet the demands of domestic and foreign investors and their high standards of construction. With recent growth MM Invest has slowly entered the area of direct real estate investments.

11. I krajiškog korpusa 39/II; 78 00 Banja Luka, BiH 00 387 51 305 710
MM INVEST d.o.o.
I krajiškog korpusa 39/II; Banja Luka, BiH
Website of the company: