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Published bySpencer Elliott Modified over 9 years ago
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Project Aura
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Content History of Aura Group The proposition USP Promoters and Management Stock Market Data Group Structure Marketing and Competition Financial Summary
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History of Aura Group Established 1967 to run hotels in Sri Lanka Acquired 2 hotels in Kandy with about 150 rooms Runs 13 guest houses and restaurants across Sri Lanka with 112 rooms Runs 3 boutique hotels in different locations Proposes to build 2 hotels in Maldives with 225 rooms. The islands have been leased.
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The Proposition To raise USD33mn by offering 35% of the shareholding to part finance construction of Maldives hotels and refurbish existing hotels.
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USP Has locations across most of the tourist map of Sri Lanka The group is one of the most reputed operators in the tourism sector
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Promoters and Management The promoters are one of the oldest and very reputed business families in Sri Lanka Has one of the strongest hotel management teams in Sri Lanka The group has won several international awards for its hotels
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Stock Market Data Market Cap (07/2014) USD25mn Book Value (03/2014) USD56mn Share price (22/07/2014) LKR19 52 week high/low: LKR20/LKR14 Total number of shares: 171mn
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Group Structure Holding Company 2 Hotels in Kandy 14 Rest Houses and Restaurants 3 Boutique Hotels Project Aura 70.44% 76.54% 100% Colombo Hotel
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Marketing and Competition The group has tie-ups with international tour operators and with refurbishment of the Colombo and Kandy hotels expects substantial growth in occupancy rates. There is a growing inflow of Chinese tourists to Maldives and occupancy rates for their Maldives hotels is expected to be high. 17% yoy increase in tourist arrivals to Sri Lanka with a revenue CAGR of 10% for last 2 years. 90% occupancy achieved in Maldives hotels over the past years.
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Financial Summary USD mn201220132014E2015E2016E Total Equity515662115120 Total Assets637578181183 Retained Earnings3842444752 Borrowings10795451 Revenue7.18.39.514.118.9 Gross Profit4.85.87.110.614.1
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