Industry: Hotels and restaurants
Type of business: Recreation center
Selling price of a business: $ 1,700,000
Share of business offered for sale: 100%
Resulting from the loss of Crimean resorts, there has been a significant increase in the number of vacationers in Kherson region, and in particular, in "Korabel" recreation center in recent years.
"Korabel" recreation center is located on the seaside in Lazurne urban-type settlement and occupies a green area of 15 hectares, including its own beach.
Location: Budivelnyi lane, 1, Lazurne urban-type settlement, Skadovsky district, Kherson region.
The land plot is leased for 49 years until 2068.
All the buildings of the recreation center were built before 1990, had undergone redecoration. As for today, the condition of the buildings is good.
In 2014-2015 a modern solar collector system for water heating was installed in the main building. The sum of investments amounted to 944, 000 UAH.
Financial results:
2016: Revenue - 11.2 M UAH, EBITDA - 2.8 M UAH
2017: Revenue - 14.0 M UAH, EBITDA - 3.1 M UAH
2018: Revenue - 17.4 M UAH, EBITDA - 4.6 M UAH
2019: Revenue - 20.9 M UAH, EBITDA - 5.9 M UAH
2020 budget: Revenue - 22.8 M UAH, EBITDA - 6.5 M UAH
Infrastructure
Total area of buildings in ownership: 14 945 sq.m. (including the main capital buildings with an area of 11,325 sq. m.): 5-storey building - 4,234 sq.m.; dining room - 2 867.9 sq.m.; 2-storey administration building - 771.4 sq.m.; 119 frame-and-panel houses of 17.9 sq.m. each, etc.
The main building of the center was built in 1975, while other buildings were built in the period 1967-1988. Partial repairs were carried out, the condition of the buildings is good.
The infrastructure of the recreation center includes its own beach, billiards, cafe, football field.
Equipment and furniture of the recreation center require updating, but some of the rooms have been already renewed and equipped with air conditioner.
Electricity supply is carried out from a single infeed of 10 kV. Backup power is provided by 2 ship service diesel generators (SSDGs) of 220 kV each.
Guestroom inventory
The recreation center has the ability to accommodate 776 guests in double, triple and quadruple wooden houses or in a 5-storey building (from standard rooms to suites) simultaneously.
The recreation center is open from May 26 to September 17, 115 calendar days.
The average occupancy rate in past periods was more than 50%. The recreation center sells about 45-50 thousand person-spaces per year.
The price level of the recreation center is average and below average. In 2018, the lodging expenses amounted to 180 UAH without VAT person/night, room only (RO).
Additional income of the recreation center includes mostly trade, rental of premises and entertainment services.
Staff
The key staff of the recreation center includes temporary workers who are employed for the period from mid-May to mid-September. The main seasonal workers supply is carried out through agreements with training organizations.
Most of the workers employed earn a minimum or near minimum wage rate. Every employee is provided with housing in the recreation center and free meals for the period of work.
Permanent staff consists of 14 people.
Permanent employees receive reduced salaries in winter season from Oct 1 to March 31.
HR management is carried out on a centralized basis in compliance with the laws of Ukraine.
