Client Background and Objective
Since its inception in 2010, Ascendant Project Finance ('APF'), that is a part of IMAP SEE team, has worked on several major regional projects in tourism and real estate sector. One of the most significant projects for Sarajevo is recently opened Residence Inn by Marriott, where APF played a role of brand mediator and investment banker.
The project was significant because Sarajevo was lacking a branded hotel, since Holiday Inn lost its flag in earlier years. Prior to opening of Residence Inn, Sarajevo had been one of the rare European cities without the hotel under a flag of one of the internationally recognized brands. With the opening of the Residence Inn, developed by SEIC Hospitality, Sarajevo has been listed side by side to other major cities.
IMAP Advantage & Approach
The project had a number of successful outcomes. It is a positive foreign direct investment story, where SEIC’s stakeholders recognized a country potential to invest in. Furthermore, the project was completed in optimal projected time under the leadership of local expert team; the design was entrusted to local designers who successfully managed to comply with international standards, etc. Residence Inn by Marriott is the first hotel in the region structured with an international company as third party operator.
APF's advisory role in the project was to undergo brand and operation search, selection and negotiation process. The best match with a product and with good synergy with the Owner was a franchise model with a third party operator. As a result of the search and selection process, Marriott with Residence Inn brand was selected to flag the hotel and Interstate Hotels & Resorts to manage the hotel.
Outcome & Impact
APF had a dual role in the project – two parallel tasks – one being the selection of the operation model, and the other was to ensure the overall success of the project till its completion by securing the project financing.
SEIC introduced APF to the project at an early stage, when APF took over the advisory role. In November 2013, SEIC signed the Franchise and Management Agreement with Marriott and Interstate Hotels & Resorts. In first quarter of 2014 SEIC and APF secured financing for the project.
APF is glad to have played a major role in successful completion of this significant project in the regional hospitality and tourism sector.