|
Q: Why invest in MG Hotels? A: An investment in MG Hotels (HK) Ltd. represents a unique opportunity for the private investor to participate in a company that is an asset based enterprise and has the goals and capabilities to support and develop dynamic new hotels brands. The underlying factors surrounding this investment category; global real estate, increased business travel, emerging new markets with high demand in the design hotel category, the combination of contemporary style with the simple required services, all combine to add up to a successful venture. The company is offering a generous stock issue that should result in above average returns. All investments are made through Alzahid Mercuri Global S.A. to qualified investors. Q: What is the investment risk? A: There is inherent risk in any investment, and the investor could suffer a loss even in a property based venture. It is our opinion that investments backed by hard assets reduce this probability by a great margin. Q: What is the likelihood of making money and what are the eventual returns? A: The structure of MG Hotels provides for a very unique development approach. The global hospitality industry is poised to grow significantly over the next 10-12 years. Such economic giants as China, India as well as emerging markets in Eastern Europe and the Mid East combine to provide convincing underwriting. Our structure enables us to look at a focused category within the affordable hotel model and to position ourselves with new brands such as MG Hotels. Very much like staying in a boutique hotel, MG provides its guests with all the necessary essentials and eliminates generally expensive and unused spaces. A “rooms based” model that is contemporary in feel but safe and familiar in function, attracts individual business travelers and families alike, while the hotels’ efficiency and affordable cost basis will attract corporate accounts. The returns in each project will differ by location, however, the company has set a benchmark of an Equity IRR (internal rate of return on invested funds) of +20%. Q: How long will it take to realize the return? A: The company (as a private limited company) will be set-up to distribute dividends on an annual basis from hotel operations net cash flow generally within 18-24 months of opening. Q: How does MG Hotels differ from the competition? A: The concept of MG Hotels is unique on the global hospitality market as it combines the expertise of a prime developer with a seasoned and experienced Swiss management hotel team. Together the company is focused on one growth category, the 4 star affordable business hotel model. MG Hotels is based on a Shariah Compliant philosophy whereby alcohol is not served and the doors are open to business travelers and families alike. In each MG Hotel there are designated, "women only rooms". Q: What are my responsibilities as an investor and what are the responsibilities of the company to me? A: As an investor and as the company we consider the relationship as “one” based on the MG philosophy. The investor can expect full transparency, integrity and an open dialogue as to the progress the company is making. This remains as a two way street of communication. We pride ourselves as to having partnered with talented and well respected consultants which will provide exemplary service to our investor base. Q: What are the Company experiences, references and associations? A: The Company is a wholly owned subsidiary of Alzahid Mercuri Global. S.A. (Luxembourg) Though recently formed the Company is made up of a multi talented group of seasoned professionals with the experience and development expertise to make MG Hotels a financially successful global enterprise. This experience rests in the knowledge of the development process to be able to quantify an opportunity and deliver it “on time and on budget”. Starting with our team of experienced architects and engineers including David, Langdon & Seah, who have completed thousands of hotel rooms over a 30 year period to our CEO, Travis Hammond having developed over US$150M in residential and commercial properties, the group is prepared to execute the MG Hotels action plan. The company has developed key relationships with organizations like Ecole Hotelier Lausanne (EHL) and EHLITE in Switzerland, recognized as the oldest and most distinguished hotel school and consulting group in the world, who have global clients such as Four Seasons, Ritz Carlton, Marriot and so forth, who have embraced the MG concept as “spot on” for today’s global business traveler and investor looking for an asset based investment. Q: Do I have to invest as an individual or can I invest as a company or group? A: Per the advice of our legal and tax consultants, investors can purchase shares in their own name, that of a corporation, partnership or as joint tenants in common. Q: Is the company planning a public offering? A: Once the Company has established the necessary critical mass and achieved certain performance goals, seeking a public listing on an exchange like Ireland, London AIM, Hong Kong or Singapore is a logical step. This will provide the necessary liquidity to pursue a global expansion plan for the companies’ brands as well as allowing our initial investors to buy and sell shares as they choose. Such an effort will be most likely be orchestrated with a well known financial underwriter and subject to Board approval.
|