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Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
Page 2 of 9
Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
1. Project BackgroundEmirates Club is a professional association football club based in the city of Ras al-Kamiah in the United Arab Emirates. It was established in 1969 and is a leading sports club in Ras Al Khaimah, with its own soccer team. The club organizes football matches and other sporting events and trainings. It has a large parcel of land behind Safeer Mall, located at a central location in Ras Al Khaimah. At present this land has a couple of football stadiums and other facilities. A large portion of this land is vacant and is available for any economic activity. Emirates Club proposes to develop a number of projects like Hotel & Convention Facility, Cricket Academy, Club House etc. to gainfully utilize the vacant land.The projects shall be implemented on Build, Operate & Transfer (BOT) basis. Under this format, the selected private sector developer shall be responsible for financing, executing, operating and then transferring the facility to Emirates Club after authorization period. Emirates Club has defined the minimum development obligations for the private sector developer, yet leaving adequate flexibility for the developer to build the project in response to market demand and hence optimize collective returns.
2. Project AdvisorsOrange Management Consultants LLC (OMC), is a management consultancy company based in Ras Al Khaimah in UAE with offices in India & Jordan. Its main objective is to assist and prepare enterprises for significant growth while ensuring scalability, sustainability and success in their business. OMC provides advisory and consultancy service to its clients in the areas of business incorporation, enterprise development, growth strategies, financial services, strategic marketing, and project management among other corporate services.
OMC is advising Emirates Club on project development including selection of suitable investors, suggest suitable structure between the parties and stakeholders and shall prepare the necessary
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
documents for the same. OMC shall also provide, pre and post project services.
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
3. Project LocationThe location of the project is in Ras Al Khaimah. Ras al Khaimah, which literally means “The top of the tent”, is one of the emirates of the United Arab Emirates. It covers an area of 1,700 square kilometers, is the fourth largest emirate located on the northern-most part of the UAE, sits on the Straight of Hormuz through which 40 % of world’s seaborne oil passes and has an impressive 64 kilometer shoreline. It is situated 100 kilometers north of Dubai.Ras Al Khaimah has its own international airport; Sharjah and Dubai airports are a 45 minutes and 60 minutes drive respectively from Ras Al Khaimah. It is connected to Sharjah and Dubai by fast highway.
Within Ras Al Khaimah the site is situated in a central location next to Safeer Mall in Al Dhait with access from Al Dhait road. It is 10 kilometers from RAK Airport. The site has excellent potential for
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
developing a Stadium, Sports Complex, Sports Academy, Sports and Social Club, Hotel Serviced Apartments etc.
The Google picture of the land is given below; the available area is more than 450,000 sq. mts.
4. Project DetailsThe project is positioned as a combination of a Hotel and Convention Facility in accordance with the market assessed. The size of the project is in line with the present captive demand of the club as well as tourist demand with reasonable growing requirements.
The Hotel shall be 3 star or higher category hotel with full service 100 lettable rooms with superior level of finish and modern guest-room amenities. Brief details of various facilities proposed are:
100 guest rooms of 3 or above star category 50-75 cover all day dining restaurant 100 seater lounge bar
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
Plenary/Banquet hall for 500 delegates capacity with a view that it may also be used for weddings, banquets, social and cultural events. The main hall would be divisible and with seating arrangements and AV aids associated with modern day convention facilities
100 delegate Conference Room. This space can be utilized as a break out room and/or for food service and would support the conventions being held in the convention hall. Alternatively it can be utilized as stand alone function spaces for smaller conventions, social events and weddings.
Board Rooms – Two boardrooms to accommodate 50 people each have also been included in the facilities planned.
Parking Facility as per applicable requirement and guidelines
5. Market Potential The Emirates Club has a soccer team of Ras al Khaimah emirate and holds inter-emirates national level matches through out major part of the year. Last year they held more than 36 matches occupying more than 3000 room nights for their own players.
Currently, the players stay outside at an average of tariff of AED 500-750 per day per player on full board basis. Once the club has its own internal hotel facility the number of matches are expected to increase resulting in more room nights for their own consumption. Apart from the players there are other categories of people who would also need accommodation while tournaments are in progress.
Besides the own captive market of the Club, Ras Al Khaimah is a popular tourist destination. Ras Al Khaimah, constitutes the northernmost point of the United Arab Emirates. Strategically located within proximity of several major routes between Asia and Europe, Ras Al Khaimah has witnessed rapidly accelerating economic growth over the course of recent years. With the resurgence in the global economy, major developments in the Middle East have begun anew, large scale projects have been recently announced in the emirate and more are expected in the coming years. Alongside a developing hospitality sector, Ras Al Khaimah is expected to continue positioning itself as a contending Middle Eastern destination.
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
With a temperate climate, rugged terrains and mountains, clean beaches and archaeological sites, coastal areas and desert, Ras Al Khaimah is now capitalizing on its natural attractions to build its tourism sector and is a global contender as an exciting up-coming winter-sun holiday destination. Ras al Khaimah’s unique mix of mountains, beach & desert landscapes is being capitalized and activities are being developed in and around the scenic Hajjar Mountains, historic sites are being preserved and commercialized. Besides, dune bashing, camel riding, water sports, cruises and deep-sea fishing, paragliding etc. offer a wide variety of activities to choose from when holidaying in the emirate. An exciting range of indoor and outdoor entertainment and sport venues offer sporting activities such as golf which is also gaining popularity, while mountain climbing and scuba diving have high potential. Providing tourists with a range of different activities is aimed at diversifying the visitor base, extending average length of stay and distinguishing RAK as a tourism destination. Figures for June 2013 indicate that the market wide hotel occupancy has decreased by 5.73% when comparing to same time last year, while the ADR has registered 14.64% growth, reaching roughly US$140. In terms of RevPAR, a growth of 2.89% has been reported. Considering the significant growth in hotel supply anticipated for the following years, such KPIs reflect a healthy and sustainable hotel sector. The hotel market generally benefits from stronger occupancies outside of the third quarter, with RAK following typical Middle East seasonality. Strong occupancy is observed from October to April, with November, February and March being peak months. Occupancy traditionally troughs between July and September due to the extreme heat and weaker demand during the Holy Month of Ramadan, with the moving impact of Ramadan expected to impact the troughs in the near- to mid-term. Data from 2006 to 2012 illustrates the overwhelming proportion of international to domestic visitation. However, the domestic contribution for 2011 and 2012 shows that local visitation increased substantially, representing an average share of 32% for the two years. According to the Ras Al Khaimah Tourism Authority, tourists from Germany, UK and the Russian Federation account for approximately 60% of total arrivals, constituting the major international feeder markets. These markets registered significant growth in the past two years.
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
In 2011 Ras Al Khaimah had a total of 14 hotels and resorts with the rating of four and five stars, providing the total number of 2,712 rooms with the breakdown of 944 keys for four- and five-star city hotels and a total 1,768 keys for four- and five-star beach hotels and resorts. An additional 2,750 hotel rooms in the 4 & 5 star categories opened in RAK between 2012 -2015. The Ras Al Khaimah Tourism Authority is forecasting an increase in occupancy and ADR, the target for 2016 is set at an ADR of AED 734 and 82% occupancy, with 2020 expected to reach an ADR of AED 844 and 86% occupancy.
6. Major Assumptions The Project shall be implemented on a Public Private Partnership (PPP) format. The major assumptions are as follows:
The total land area required would be around 5,000 sq, m. Land will be made available by Emirates Club on lease for 30
years at a reasonable rent to the investor; the rental rates shall be ascertained on market value set by the Land Department of Ras al Khaimah
The authorization period of operation/lease will be 30 years including construction period
Construction period is estimated to be 24 months Project Cost is estimated to be around US$ 60,000 per key (US$
6 million) excluding the cost of land The investor shall be responsible for financing, executing,
operating and then transferring the facility to Emirates Club after authorization period
The investor shall pay a nominal project development fee and a percentage of revenue generated from the hotel.
The complete structure will be discussed and finalized on mutual accepted terms.
Orange Management Consultants LLC +971 7 2338845 email: info@orangemc.me
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Projects @ Emirates Club, Ras Al Khaimah, UAE- August 2015
Contact DetailsInterested parties who have previous experience in the above or related fields and have adequate financial resources are requested to get in touch as follows:
UAE:Lokesh Verma Mobile: +971 50 3743314
Email: lkv@orangemc.me
INDIA:Sudhir Gupta Mobile +91 9820 74995
Email sg@orangemc.me
K. Lakshminarayana Phone +919849457678Email: laxmanindia@gmail.com
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