Eco Hotels has developed a proprietary franchise model called EBOT. This model offers a turn key, asset and hotel management solution that will efficiently create optimised hotel properties for an investor. A fee is charged for the Enterprise and Build phases of the programme.
COMPANY FORMATION: A company is incorporated which is fully owned by the investor. Bank accounts are opened and the investment is placed in the Company account. The investor operates the Company on instructions from Eco Hotels, which carries out the ongoing statutory compliance on behalf of the investor.
LAND: Eco Hotels will source land that fits the location criteria for the hotel (based on independent third-party report), carry out due diligence on title, negotiate the price and carry out acquisition on behalf of the investment company.
PROJECT REPORT: Eco Hotels will engage a reputed IPC such as CBRE, HVS, Knight Frank etc to prepare a detailed report which will validate the location, viability (no of rooms, average room rate and occupancy rate) and market size of the proposed hotel.
FINANCE: Optimum structuring of finance is critical to the viability of hotels in India. Overseas investors are recommended to gear their equity outside India as cost of borrowing is high within India. Investors are recommended to gear on a 1:1 debt equity ratio over a longer term of ten years. Eco Hotels will secure the debt finance in India based on its existing relations with Indian banks.