Switch On Ukraine

National Agency on Holding and Preparation of Euro 2012 Department of Infrastructure Development 2 Mechnikova Str.
Kyiv 01601 Ukraine Phone: +380 44 281 9975 Fax: +380 44 281 9975 natali-marchenko@i.ua 2012ukraine@ukr.net
With the support of the Ukrainian German Development Cooperation
Ukraine at the International Hotel Investment Forum in Berlin March 2011
Switch on Ukraine
National Agency on Preparation and Holding in Ukraine UEFA EURO 2012
Tourism Sector and Investment and Cooperation Projects in Ukraine
Imprint
With the support of the Ukrainian German Development Cooperation, Kiev/Berlin March 2011 Cooperation Partner: Centre for Tourism Development
Explanation Part 2 of this booklet contains two different kinds of information about investment projects in Ukraine seeking for international partners. Section A is a list of projects with very detailed information that are supposed to allow a potential investor a judgement to what extent the project meets vital criteria for making decisions. Section B contains more general information about projects arranged according to geographical criteria. We have translated and published the information in the way we received it and did not do further editing. If you have questions or would like to clarify facts, please contact directly the contact person provided or call the below given address. The editors
For more information please contact us. We help you finding your suitable project and partner: National Agency on Holding and Preparation of Euro 2012 Department of Infrastructure Development 2 Mechnikova Str. Kyiv 01601 Ukraine Phone: +380 44 281 9975 Fax: +380 44 281 9975 natali-marchenko@i.ua 2012ukraine@ukr.net
Disclaimer: All information has been compiled with due diligence. We cannot take any guarantees or liabilities on the correctness of data presented.
Contents
Foreword by Vice Minister Mr Borys Kolesnikov Lets switch on Tourism! ........................................... 5 6 6 7 7 7 8 8 9 9 10 10 10 10 11 12 12 13 13 14 14
Part 1 Market Analysis .......................................................................................................

Ukraine - Huge Development potential............................................................................................... Incentives for Euro 2012 investments .......................................................................................... Tourism in 2011 - Back on the growth path ...................................................................................... Russians remain important group ................................................................................................. Outbound tourism growing as well................................................................................................. Key Facts at a glance ...................................................................................................................... The Ukrainian Hospitality Industry ...................................................................................................... 10 percent of Hotels in Kiev........................................................................................................... Hotel Capacity in Ukraine close to 80.000 beds .......................................................................... Hotel Supply in Ukraine way behind international average ......................................................... Use of capacities slightly lower than in EU countries................................................................... Average staying period .................................................................................................................... Increase in top class hotels............................................................................................................ Focus regions of tourist industry ................................................................................................... Origin of tourists in Ukraine by country ......................................................................................... New system for categorization of hotels looming ......................................................................... Hotel Services.................................................................................................................................. Incomes from Hotel Accommodation ............................................................................................ Growing SME sector in tourism ......................................................................................................
Investments in development of the hotel infrastructure .................................................................. 15 Economic Program shows results ....................................................................................................... 16 Annual growth rate of 4 percent expected .................................................................................... 16 Foreign Trade ................................................................................................................................... 16 Views from outside Investment climate improves ........................................................................... Legal Framework of Investment Activities ..................................................................................... National Target Programme for Euro 2012 ................................................................................... Attractive conditions for investments ............................................................................................ Indicators for doing business in Ukraine....................................................................................... 18 18 18 19 19
Profile of second largest Country in Europe ....................................................................................... 20
Contents
Part 2: Investment Projects in Ukraine
Section A Detailed Investment project descriptions ......................................................................... Project Cosmopolit, Kharkiv............................................................................................................ Project Radgospna, Kharkiv............................................................................................................ Project Adome, Donetsk.................................................................................................................. Project Artemivsk, Donetsk ........................................................................................................... Project Golden Ring of Health, Crimea ......................................................................................... Project Kalamitska Bay, Crimea.................................................................................................... Project Prague, Kyiv ........................................................................................................................ Project Crowne Plaza, Kyiv ............................................................................................................. Project Lytvynovka, Kyiv region ..................................................................................................... Project Obukhiv, Kyiv region .......................................................................................................... Project Glybochychka, Kyiv region ................................................................................................ Project Morshin-Absolyut, Lviv region ........................................................................................... Project Kashtan, Lviv region .......................................................................................................... Project Pomirky, Lviv region .......................................................................................................... Project Koljarevskogo, Lviv ............................................................................................................ Project Olymp, Lviv ......................................................................................................................... Project Kristal and Almaz, Lviv ................................................................................................... Project Strijska, Lviv ....................................................................................................................... Project Volosianka Village, Lviv region ......................................................................................... Project Fortress of Hetmans, Tchernivti region ............................................................................. Project Amadeus, Khmelnytsk region ........................................................................................... Project Arkadia Zhemchuzhina, Odessa ....................................................................................... Section B Projects General Information ............................................................................................ Project Arena, Kharkiv region ........................................................................................................ Project Temp, Kharkiv ................................................................................................................... Project Central, Donetsk ............................................................................................................... Project Ukraina, Donetsk .............................................................................................................. Project Grand-Hotel, Donetsk region ............................................................................................ Project Druzhba, Donetsk ............................................................................................................. Project Staro, Kyiv .......................................................................................................................... Project Boryspil Plaza, Kyiv region ................................................................................................ Project Morshyn, Lviv ..................................................................................................................... Project Villa Shevchenko, Lviv region ........................................................................................... Project Villa Oksana, Lviv region ................................................................................................... Project Villa Maria, Lviv region ...................................................................................................... Project Lypynskogo, Lviv ............................................................................................................... 21 21 31 39 45 51 55 57 63 69 79 89 97 103 111 117 123 133 139 145 155 165 170 174 174 176 178 180 182 184 186 188 190 192 194 196 198
Foreword by Vice Prime Minister Mr Borys Kolesnikov:
Lets switch on Tourism!

According to most international data and domestic statistics, Ukraine remains a highly attractive market for the tourism and leisure industry. All of us are very much looking forward to Euro 2012 and I may take the opportunity to cordially invite you to visit us from 08. June till the finals in Kiev on July 1st. We are well aware that nobody makes a large scale investment just for a wonderful tournament. Investments must pay off! We see this event as a milestone in the development of the Ukrainian tourism industry and as a tool to leverage the development and international integration of our economy. Our participation at the International Hotel Investment Forum in Berlin sends a clear message to hotel operators and investors alike: come to Ukraine. Look for your opportunity and you will find it. If you invest then now is the right moment. Major investments in the hotel industry will benefit from substantial incentives. And our Government is determined to continue creating a favorable business environment and to particularly promote the tourism industry. Here we see an important sector which in the past did not get the attention it deserves. This will go well beyond 2012. We are sure many of those more than 1 million visitors who will come to Ukraine to celebrate a holiday of the European family and the billion television viewers will like Ukraine. For us Euro 2012 is a chance we are determined to take. We would like to draw your attention to the highlights in our country. We switch on Ukraine. This booklet offers some investment projects which may be of interest to you. There is much more. Come in, talk to us and switch on your Ukraine.
Yours sincerely Borys Kolesnikov Vice Prime Minister
Foreword
PART 1 MARKET ANALYSIS

PART 1: MARKET ANALYSIS
Ukraine Huge Development potential

Tourism in Ukraine has a huge potential. Just to catch up with the average market supply number of hotels per thousand inhabitants Ukraine would need almost ten times more hotels compared to what it has in 2011. With a population of more than 45 million people and being the second largest country in Europe, Ukraine has little less than 1.000 Hotels. In most other tourist destinations in Europe the ratio of hotels per thousand inhabitants is much higher. A great number of hotels still date back to the old soviet times. They are in great need of modernization. The internationally renowned consulting group Roland Berger recently estimated the growth rate for tourism in Ukraine in the coming years with 8 percent annually in the coming years. Official Ukrainian sources are more modest and forecast a steady growth of 4 percent per year. To stimulate investments the Government provides strong iincentives. New modern airport terminals are being built to serve the visitors for Euro 2012, where all together more than 1 million guests are expected.
Ukraine: Incoming tourists in million
26,0 25,0 24,0 23,0 22,0 21,0 20,0
25,4
20,7
21,1
2008
2009 2010
Currently, every year between 20 and 25 million people visit the country. Ukraine's tourism industry recovers from the crisis and shows a clear upward trend. Visitors come mainly from neighbouring countries, the lion's share from Russia. Crimea and Kiev attract some 60 percent of the inbound tourism. In the West it is Lwiw (Lemberg) that sticks out with some one million visitors per year. In rankings of the World Tourism Organization, Ukraine was in 2008 among the top 10 of international destinations. This brochure is meant to give an overview on latest market developments in Ukraine. It is based on figures provided by the National Statistical Office of Ukraine.
One of the conditions for Ukraines hosting Euro 2012 finals is the qualitative and timely preparation of the hotel enterprises. Ukraines major task in preparing the accommodation infrastructure is meeting all UEFA requirements on the quantity of the hotel rooms in regards with the categories 3*, 4* to 5* to accommodate UEFA family. According to UEFA requirements Ukraine is to provide 15.555 rooms in category 3*-5* hotels for accommodation of UEFA target groups. 366 hotels are to be secured
by the end of November 2011. In order to do that it is planned to reconstruct 267 operating hotels and to finish the construction of 99 hotels. In particular, 45 hotels should be built in Kyiv, 24 in Lviv and 15 hotels in Donetsk and Kharkiv each, with the total capacity of 15.137 rooms. The state provides attractive incentives for investors and operators. All hotels with more than a 3 stars category have begun to modernize in 2011 and will be finished in September 2012. The hotels will enjoy profit tax vacation for 10 years.
Tourism in 2011 Back on the growth path

After a sharp decline as consequence of the financial crisis in 2009 Ukraines travel industry is back. In 2010, little more than twenty one million foreign tourists visited Ukraine. This is about 2 percent or 380.000 persons more than in 2009. The increase of the incoming stream volume in the year of 2010 was due to increase of the number of trips mainly with a private purpose. In the incoming tourist streams the share of the organized tourism decreased by 7 percent in 2009 and up to 6 percent in 2010; the share of the private tourism decreased by 89 percent in 2009 and up to 90 percent in 2010; the share of the business trips remained at 4 percent, as it was in 2009. Table 2: Tourists by area of origin
Country Tourists in Million Percentage 73 % of stream 25 % of stream 2% of stream Change compared to previous year + 5 % or 747,9 thousand persons - 7 % or 393,4 thousand persons + 6 % or 26,6 thousand persons
Russians remain important group

Private trips increased by 4 percent. With 20 percent or 1, 2 million persons the greatest increase was recorded for the tourists from Russia by 20 percent, Slovakia by 14 percent or 70.000 persons, Hungary by 16 percent or 124.000 persons followed by Belarus and Germany. However, the organized tourism decreased by 17 percent. The greatest decrease of the tourist stream is observed from Belarus, Canada Poland and Russia. Trips for business purposes decreased by 10 percent. The greatest decrease of the tourist stream is observed from Latvia, Poland and Russia. Table 1: Type of tourism
Type N of people In percent 4% 6% 90 % Compared to previous year -10 % or 84,5 thousand persons -17 % or 234,7 thousand persons - 4 % or 700,4 thousand persons
CIS countries 15,4 million EU countries Other countries 5,3 million 458,1 million
Decrease of the incoming tourists from the EU countries occurred mostly due to the descent number of travellers from Poland, Great Britain, Denmark and Romania. Increase of the incoming tourist from the Commonwealth of Independent States (CIS) occurred mostly due to the rising of the number of travellers from Azerbaijan, Belarus, Kyrgyzstan, Uzbekistan and Russia.
Business trip 0,7 million Organized tourism Private tourism 1,2 million 19,2 million
Incentives for Euro 2012 investments
Table 3 Rating of top 10 countries of visitors to Ukraine

Total for 2010 persons 21 122 157 share 100 % 37 % 19 % 14 % 10 % 5% 4% 3% 1% 0,6 % 0,4 % 94 % 2010/2009 +2% + 13 % -6% +2% - 18 % + 16 % - 15 % + 13 % +6% +2% +9%
1 Russia 7 881 321 2 Moldova 4 057 678 3 Belarus 3 056 157 4 Poland 2 085 245 5 Hungary 941 240 6 Rumania 909 553 8 Slovakia 609 279 7 Germany 225 356 9 USA 122 955 10 Uzbekistan 104 719 Total for 10 countries 19 993 503
Georgia (by 32 percent or 7.700 persons), Belarus (by 9 percent or 98.800 persons), Kazakhstan (by 63 percent or 1.900 persons), Russia (by 5 percent or 251.900 persons) and Turkmenistan (by 42 percent or 2.800 persons). Table 5 Rating of the main 10 countries of the outgoing tourism:
Total for 2010 persons 17 180 034 share 100 % 30 % 23 % 11 % 10 % 7% 3% 3% 2% 2% 2% 93 % 2010/2009 + 12 % +5% + 35 % -5% + 12 % +9% -8% +4% +2% 2 times + 39 %
Outbound tourism growing as well

The outgoing tourist stream in 2010 was 17,2 million persons and in comparison to 2009 increased by 12 percent or 1, 8 million persons. The outgoing tourist stream increased due to the trips for the private purpose and business trips. Business trips increased by 3 percent due to the increase of the number of Ukrainian tourists travelling to the following countries: Germany (by 11 percent or 5.300 persons), Russia (by 45 percent or 54.700 persons), Slovakia (by 46 percent or 11.000 persons), Turkey (by 2 percent or 8.000 persons) and Hungary (by 16 percent), Russia (by 27 percent or 53,700 persons) and Turkey. Table 4: Area of destination
Area CIS countries EU countries Other countries People in Million 8,3 7,7 1,1 Percentage 49 % 45 % 6% Change + 3 % or 269,3 thousand persons + 22 % or 1, 4 million persons + 17 % or 161,8 thousand persons
1 Russia 5 233 972 2 Poland 3 999 602 3 Moldova 1 889 724 4 Hungary 1 789 308 5 Belarus 1 135 094 6 Romania 503 195 7 Turkey 459 061 8 Slovakia 383 961 9 Germany 383 325 10 Egypt 328 623 Total for 10 countries 16 105 865
Key Facts at a glance

Ukraine 2010 TRAVEL & TOURISM ECONOMIC RESEARCH
10-year trend 7,5 percent Gross Domestic Product (GDP) The contribution of Travel & Tourism to Gross Domestic Product (GDP) is expected to decline from 7.5 percent (UAH80.8bn or US$10,171.9mn) in 2010 to 6.4 percent (UAH212.6bn or US$21,652.7mn) by 2020. -2,4 percent Growth Real GDP growth for the Travel & Tourism Economy is expected to be -2.4 percent in 2010 and to average 4.2 percent per annum over the coming 10 years. 6,1 percent Employment The contribution of the Travel & Tourism Economy to employment is expected to fall from 6.1 percent of total employment, 1,207,000 jobs or 1 in every 16.5 jobs in 2010, to 5.2 percent of total employment, 1,047,000 jobs, or 1 in every 19.4 jobs by 2020. 10,9 percent Visitor Exports Export earnings from international visitors are expected to generate 10.9 percent of total exports (UAH48.9bn or US$6,155.8mn) in 2010, growing (nominal terms) to UAH136.1bn or US$13,864.4mn (7.5 percent of total) in 2020. 15,9 percent Investment Travel & Tourism investment is estimated at UAH26.5bn, US$3,331.8mn or 15.9 percent of total investment in 2010. By 2020, this should reach UAH79.3bn, US$ 8,077.1mn or 15.4 percent of total investment.
Source: Ukraine, World Travel & Tourism Council Report
Increase of the outgoing tourist stream from the EU countries was mostly due to the increase of the number of Ukrainian tourists travelling to the following countries: Poland (by 35 percent or 1 million persons), Germany (2 times or by 193.300 persons), Italy (by 13 percent or 13.100 persons), Greece (by 61 percent or 24.000 persons), Hungary (by 12 percent or 186.700 persons). Increase of the outgoing tourist stream from the CIS countries was mostly due to the increase of the number of Ukrainian tourists travelling to the following countries:
In 2009 there were 1.684 different hotel facilities comprising 174.400 accommodation units in Ukraine. According to the functional structure of the hotel enterprises on the territory of Ukraine the temporary accommodation services in 2009 were provided by: 858 hotels, 26 motels, 5 hotel and office centres, 9 campsites, 54 youth tourist camps and mountain shelters, 184 hostels, 548 other places for temporary residence. The number of hotels in Ukraine has increased by 20 enterprises or 2,4 percent in comparison to the year of 2008. Despite of this growth Ukraine is still a good deal behind his neighbour Poland. In comparison Poland in 2009 there are 1.809 Hotels and in 2010 1.900 Hotels and figures will go up to 2.100 hotels. (Source: Germany trade and invest) Germany, one of the leading countries in hotel business has about 17.800 Hotels. The most widespread form of accommodation in Ukraine are hotels (51,0 percent of overall quantity of hotel enterprises) and other places for temporary residence (32,6 percent), the latter along with the traditional hotel enterprises offer to their clients the full range of services on reception, accommodation, food and serving. In some regions, especially during vacation season, other places for temporary residence are able to accommodate more clients than the main hotel enterprises. They include season recreation zones, little summer houses, cottages etc., that seem to provide temporary accommodation during the vacation period. In 2009 there were 407 such enterprises or 74,3 percent of overall quantity of other places for temporary residence. Most of them were in Kherson (99), Mykolajiv (93), Louhansk (42), Cherkassy (25), Dnipropetrovsk (22) and Chernihiv (19) regions. Hostels occupy third place in systematization of hotel enterprises by type. In 2009 there were 184 enterprises comprising 11.900 accommodation units. Other types of enterprises, such as motels, hotel and office centres, campsites, youth tourist camps and mountain shelters that due to their accommodation capacity and functionality are widespread in many countries and play an important role in the branch development, in fact are not well developed in Ukraine.
1 All data are from the Ukrainian National Statistic Office 2011
Table 6 Quantity of hotel enterprises by type, their single and average accommodation capacity in 2009
Quantity, units All types enterprises rooms Hotel Motel 1684 858 76019 42798 467 62 100,0 174398 51,0 1,5 0,3 0,5 3,2 10,9 32,6 77610 910 102 504 5753 11878 77641 by type, percent In N Capacity in of beds average of enterprises rooms beds 45 50 18 12 24 43 25 47 104 90 35 20 56 107 65 142
Hotel and 26 office centre Campsite 5
Youth tourist 9 220 camp and mountain shelter Hostel 54 2334 Other places 184 4609 for temporary residence 548 25529
The increase in the hotel quantity was observed in the Lviv region by 7 hotels, in the Crimea region by 5 hotels; in Transcarpathian and Donetsk regions and in the city of Kyiv by 4 hotels in each one respectively; in Kyiv, Mykolajiv and Chernivtsi regions by 2 hotels respectively; in Zaporizhya, Ivano-Frankivsk, Cherkassy regions and in the city of Sevastopol by one hotel in each listed area respectively. Along with that fact there was a decrease in the number of hotels comparing with 2008 in Louhansk region by 3 hotels; in Poltava, Kharkiv, Khmelnytskyi and Chernihiv regions by 2 hotels in each region respectively; in Vinnytsya, Zhytomyr and Odesa regions by one hotel in each one respectively. The decrease in the number of hotels mostly occurred due to their sale to some physical persons or transfer for reconstruction of housing, offices and medical buildings.
10 percent of Hotels in Kiev

In Ukraine most hotels are located in the city of Kyiv (10 percent of overall number of hotels), Lviv region (6 percent), the Crimea (7,2 percent), Dnipropetrovsk region (6,9 percent), Donetsk region (6,5 percent), Odessa region (5,5 percent), Louhansk (4,8 percent) and Chernihiv (4,3 percent) regions, and that is connected with high level of their industrial development, the presence of touristic centres or resort areas.
The Ukrainian Hospitality Industry1
The total accommodation capacity of Ukrainian hotels from 2000 to 2004 inclusive was constantly reducing while using less than one third of the accommodation reserve. Significant improvement of the situation is being observed starting from 2006 and this positive tendency still remains.
The coefficient of the hotel capacity usage in 2000 2009
0,4 0,25 0,32 0,34 0,23 02 2000 2003
Use of capacities slightly lower than in EU countries

The average annual coefficient of capacity usage of Ukrainian hotels changed every year during the previous 10 years. The coefficient amounted from 0,25 in 2000 to 0,28 in 20012002, reached 0,32 in 2003, grew to 0,34 and remained such in 20042006, increased to 0,35 in 2007, but then it tended to go down to 0,31 and 0,23 in 2008 and 2009 respectively. Minimal usage of the hotel capacity 0,10 was observed in Louhansk and Kherson regions, 0,12 in Ivano-Frankivsk region, 0,15 each in Zhytomyr and Ternopol regions, 0,16 each in Donetsk and Chernivtsi regions, while the maximum one 0,35 was in the city of Kyiv. The coefficient ranged from 0,30 to 0, and 27 in Kharkiv, Kyiv and Chernihiv regions and in Sevastopol. It should be noted that the coefficient in EU countries is 0,36. The total duration of staying period affects to some extent the coefficient of capacity usage of hotels. In the whole the coefficient dynamics was positive during previous years, nevertheless as from 2008 on there has been a noticeable tendency towards a reduction of duration of staying periods in hotels. Thus, in 2008 the whole staying time reduced in comparison with 2007 by 981.400 people per day or by 10,4 percent and was 8.437.000 people per day; in 2009 comparing to 2008 this coefficient decreased by 2.055.500 people per day or by 24,4 percent and was 6381.400 people per day. The decrease of the total duration of staying period occurred almost in all Ukrainian hotels. The biggest reduction of staying time comparing to 2008 was observed in Kyivs hotels by 644.200 people per day; in Volyn region by 114.300 people per day, in Lviv region by 113.300 people per day, in Dnipropetrovsk region by 112.200 people per day and in Odesa region by 105.600 people per day. It is the result of the worlds economic crisis that influenced all economic sectors in Ukraine and the hotel economy in particular.
2006
2009
Hotel Capacity in Ukraine close to 80.000 beds

In 2009 the total accommodation capacity of hotels has increased in comparison to 2008 by 2,000 beds and thus has amounted to 77.600 beds. In 2009 the average accommodation capacity of the hotels was not high and comprised 90 beds while the average accommodation capacity of other places for temporary residence was 142 beds and the capacity of one youth tourist camp and mountain shelter 107 beds.
Hotel Supply in Ukraine way behind international average

The hotel provision index is determined by the number of hotel beds for 1.000 citizens. 1,7 hotel beds for 1.000 citizens was Ukraines index in 2009 comparing to 1,6 in 2008; 4,6 hotel beds was the index of Kyiv in 2009 comparing to 4,5 in 2008 which is significantly less than in the prevailing majority of the worlds developed countries. For instance, the number of hotel beds for 1.000 citizens is approximately 10-20 in Bulgaria, Hungary, Poland, Great Britain, USA, France and Germany; 23-25 in Italy, Spain and Canada. The hotel provision index for 1.000 citizens in the Crimea was higher than Ukraines average one 4,5 hotel beds comparing to 4,1 in 2008; 3,5 hotel beds compared to 2008s 3,3 was the index of the city of Sevastopol; the regions of Transcarpathians, Lviv, Ivano-Frankivsk, Odessa and Chernivtsi had the hotel provision indices that did not differ much from the ones in 2008 ranging from 2,6 to 1,8 hotel beds.
Average staying period

As from 2000 the average duration of a visitor staying period (including foreign visitors) in Ukrainian hotels was about 3 days, in 2008-2009 a bit more than 2 days.
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The efficiency of the hotel usage depends on many factors: service quality, star category of hotels, and presence of structural subdivisions that provide additional services, comfort and technical equipment of the rooms. In 2009, there were 42.800 rooms (in 2008 42.200) in the country hotels, in the whole their living space increased comparing to 2008 by 44,2 thousand meters square and was 975,800 meters square. The average living space of one hotel room was 22,8 meters square (in 2008 22,1 meter square). The increase in the number of rooms and their living space was connected with the growth of hotel quantity in some regions. Thus, in comparison to 2008 the room number in Dnipropetrovsk region increased by 265 hotel rooms or 11,2 percent, in the Crimea by 227 rooms or 5,4 percent, in Kyiv region by 173 rooms or 15,2 percent, in Lviv region by 158 rooms or 4,8 percent, in IvanoFrankivsk region by 146 rooms or by 11,8 percent and in Zaporizhya region 141 rooms or by 11,9 percent. Along with those facts there was some reduction in the room quantity in some regions that mainly occurred because of the hotels bouilding up, sale to some physical persons, reconstruction of rooms for housing, offices or rooms for medical purposes. But the decrease in the number of rooms did not necessarily involve the respective decrease in the size of their living space. Thus, in Donetsk region the number of rooms reduced by 97 units, but the living space of rooms increased by 3994,0 metres square, in Louhansk region the number of rooms reduced by 46 units, while the living space increased by 19,9 sqm, in Vinnytsya region the number of rooms reduced by 25 units, and the living space increased by some 4.000 sqm. It proves that hotels were rebuilt and reconstructed in order to increase the living space of the rooms, to improve the room layout and to provide more convenient and comfortable condition for living. The average room capacity in Ukraine did not changed in 2009 compared to 2008 and was 1,8, from 1,5 to 1,6 in Zaporizhya, Donetsk, Kirovograd, Louhansk and Kharkiv regions, from 2,0 to 2,4 in the Crimea and the regions of Vinnytsya, Transcarpathians, Rivne, Ternopol, Ivano-Frankivsk and in the city of Sevastopol.
Increase in top class hotels

In 2009 there was an increase in the number of de luxe and semi de luxe rooms to improve hotel services. Thus, during 2009 their quantity in Ukraine in comparison to 2008 increased by 705 units or by 7,5 percent and equalled 10.100 rooms or 23,5 percent of overall room quantity in the Ukrainian hotels. There was a significant growth in the number of de luxe and semi de luxe rooms in Kyivs hotels (by 328 rooms from the number of such rooms in 2008), in Ivano-Frankivsk region (by 82 rooms), Chernivtsi (by 80 rooms) and Dnipropetrovsk (by 75 rooms) regions. In comparison to 2008 the number of single rooms in the Ukrainian hotels decreased in the whole by 163 rooms or 1,5 percent. The growth in the number of these rooms was observed in the hotels of Kyiv (by 263 rooms comparing to the number of single rooms in 2008), in the regions of Donetsk (by 108 rooms), Chernivtsi (by 37 rooms), Volyn (by 29) and Odessa (by 25 rooms). There was a growth in the number of single rooms in the hotels of 9 regions, too, among which are Dnipropetrovsk (by 145 units compared to the quantity of single rooms in 2008), Louhansk (by 59 units), Zaporizhya (by 42 units) and Lviv (by 36 units). During the year 2009 the number of double rooms in Ukraine increased by 142 units or 0,8 percent in comparison to the corresponding number in 2008, was 18.800. The hotels of the Crimea, Kyiv, Zaporizhya, Lviv and Transcarpathian regions shared the biggest rise in the number of such rooms (from 58 to 149 units range). At the same time there was a decrease in the quantity of double rooms in the hotels in 12 regions, Odesa (by 135 double rooms comparing to 2008), Volyn (by 133), Louhansk (by 86) and Rivne (by 46 rooms). The number of triple and extra bed rooms reduced by 64 units or by 2,1 percent in comparison to 2008. This reduction was observed in more than half of the regions; especially in the hotels of Volyn, Odesa and Kherson regions and in the city of Kyiv (ranging from 45 to 18 units). The reduction is the result of changing the rooms layout in order to create more convenient and comfortable living conditions, reallocation of the rooms or changing the type of hotel enterprise from hotel to hostel.
11
Along with those facts there was an increase in the number of triple and extra bed rooms in the hotels of 8 regions of Ukraine in 2009 in Rivne and Ivano-Frankivsk regions and the Crimea (by 44, 29 and 27 rooms respectively in comparison to 2008) with the new hotels functioning on these territories. 3.622.200 persons were provided with the accommodation services in 2009 in Ukraine that was less than in 2008 by 21,1 percent; among them 2.753.100 persons or 76,0 percent of the whole number of visitors were accommodated in hotels. In Ukraine during 20002007 (except insignificant decrease in 2002 and 2005) the number of persons using hotel services tended to grow in a positive way. As from 2008 this number began reducing. And in 2009 this quantity reduced by 874.000 persons or by 24, 1 percent comparing to 2008.
The number of persons accommodated in hotels in 20002009 (per thoussand)
4.000 2.839 3.107 3.528 2.753 2.000 2000 2003
795.000 persons (21,9 percent), 745.000 of them stayed in the hotels that is less than in 2008 by 198,500 or 21,0 percent. Though practically the whole territory of Ukraine has potential for a developed tourism industry. However, the intensity of foreign visits differs in its particular regions. 72,2 percent of foreign tourists have stayed in the hotels of Kyiv, the Crimea, and Lviv and Odessa regions. But the duration of their staying period decreased in 2009 comparing to 2008 by 204.000 persons per day or by 13,3 percent. The main reason for the decrease was the rise in hotel prices, and the accommodation prices in particular.
Origin of tourists in Ukraine by country

Despite of wide "geography" of tourists visiting the country (foreign tourists from 211 countries came to Ukraine in 2009), a bit more than one third (34,6 percent) from their quantity are tourists from CIS countries 275.000 persons (215,000 from Russian Federation, 43.000 persons from Belarus, 16,600 persons from Moldova). As far as other countries are concerned German tourists were the most frequent visitors 69.000 persons, 57.000 persons cave from Poland, 54,500 from USA, 25.000 persons from UK, 24.600 from France, 24.500 from Italy, Turkey 21.200 persons, Austria 15.000 persons, Holland 13.700, Canada 10.000, Sweden 9.800 and Czech Republic 9.700 persons.
Systematization of foreign tourists by country, where from they came to Ukraine in 2009
Russian Federation Germany
2006
2009
Focus regions of tourist industry

More than 59,0 percent of persons accommodated in hotels in 2009 as well as in 2008 were staying in 6 regions of Ukraine, they are the city of Kyiv 737.400 persons, the Crimea 221.200 persons, Lviv region 211.400 persons, Odesa region 194,800 persons, Dnipropetrovsk and Kharkiv regions 133.300 and 125.000 persons correspondingly. One of the most important elements in hotel economy is the number of foreign tourists bringing income (export of services) to the country that facilitates development of the branches involved in providing the services. All this contributes to the increase of gross domestic product and life conditions of people. However, in 2009 compared to 2008 the volume of export of accommodation services reduced significantly (by 46, 5 percent) comprising 99,5 million US dollars, almost half of reduction (46,8 percent) was for accommodation services of hotels which are 83,2 million US dollars. The total number of foreign visitors accommodated in Ukraine in 2009 is
Poland
USA
Belarus
Great Britain France Italy
Turkey Others
32,7% 27,1% 8,7%
7,2%
6,9%
5,4%
3,1%
3,1%
3,1%
2,7%
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The volume of services provided by all types of accommodation enterprises comprised 73, 5 million US dollars or 73, 8 percent of overall scope of export of accommodation services in 2009. The level of comfort is one of the most important quality characteristics of accommodation. The criteria for assignment to certain categories of hotels are quality of rooms and public facilities, availability of shower and bathrooms, furnishing standards, kindness, quantity and quality of technical equipment, premises design, personnel quantity and qualification, level and range of food service etc. For now, there is a national standard ISO 4269:2003 Tourism services. Classification of hotels and hotels and motels have 5 category classification (rating from one to five stars).
additional services. Practically three quarters (74,1 percent) of overall quantity of hotels listed the following as the objects of services restaurants, cafes and bars. Most dining places like in 2008 ., functioned in Kyivs hotels 100 units or 15,7 percent of total quantity of all restaurants, cafes and bars functioned at the premises of Ukrainian hotels, in Lviv region 84 or 13,2 percent, the Crimea 63 or 9,9 percent, Donetsk region 48 7,5 percent, Odesa region 45 or 7,1 percent and Transcarpathian region 40 or 6,3 percent. Each hotel in the Crimea, the regions of Donetsk, Ivano-Frankivsk, Lviv, Odesa, Kharkiv, Chernivtsi and Transcarpathian region, Kyiv and Sevastopol had a dining place. Practically each second hotel in 13 regions of Ukraine had a functioning restaurant, caf and bar. Each third hotel in Zaporizhya region had at least one restaurant, while each forth hotel in Rivne region had a caf and a bar at its premises. Along with that the hotels of some regions do not have dining spots at all; on each eighth hotel in Louhansk region and each ninth one in Chernihiv region had a restaurant, a caf or a bar.
New system for categorization of hotels looming

According to the data of certification organs there were the following categories of hotels functioning in Ukraine 2009: 9 five-star hotels, 56 four-star hotels, 323 three-, two- and one-star hotels, the rest 470 hotels did not have a category. The big number of hotels without a category can be easily explained by the list of reasons. Many of them do not meet the requirements for logistic support, nomenclature and the quality of services provided, service level; some of them received the certificate only for living; some hotels carry out current repair or rebuilding and reconstruction or are in state of build up; newly-built hotels did not yet manage to receive a category; a significant number of hotels was transferred to property of physical persons who do not need to receive a star certificate as it requires financial expenses. Table 7 Certification of hotel services as per 1.2.2011
Total Categories 5* 2545 13 4* 72 3* 178 2* 98 1* 97 Without category 2087
Hotel Services
More than one third of hotels (37, 3 percent) had parking places, and a bit more than a half (57, 8 percent) saunas and laundries. The significant number of parking places function near the hotels in the Crimea 60 or 18,8 percent of overall number of parking sites near hotels, in Kyiv 28 units or 8,8 percent, in Lviv region 23 units or 7,2 percent, in Donetsk and Odessa regions 19 units or 5,9 percent in each one, and in the Transcarpathian region 18 or 5,6 percent. IvanoFrankivsk, Odessa, Soumy, Kharkiv and Transcarpathian regions are the best parking secured regions, each second hotel had a parking place there. At the same time in some regions there were no parking places on the territory of hotels, because only each sixth in Chernihiv region and each eighth in Louhansk and Rivne regions had such objects. The significant number of saunas and laundries functioned in the hotels of the Crimea 62 or 12,5 percent of overall number, in Lviv region 56 or 11,3 percent, in Kyiv 54 or 10,8 percent, in Donetsk region 41 or 8,3 percent and in the Transcarpathians 37 or 7,5 percent. At the same time the saunas and laundries are practically absent in the hotels of some regions: only each fifth hotel in Mykolajiv and Rivne regions and each 14th one of Louhansk region had such service item in their list of services.
Unfortunately, at present the hotel infrastructure of Ukraine does not meet demand for hotel services either by quantity or by quality; material base and technical equipment of majority of hotels are physically and morally out of date and do not respond to international standards. The list of additional services of Ukrainian hotels is significantly poorer than in the majority of European hotels that offer more than 80 items of
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The income of the accommodation enterprises of Ukraine in 2009 comprised 4, 5 billion Hrivnas (approximately 450 million Euro) (taxes excluded), and 90,0 percent of that sum was the income of the hotels, the rest 10,0 percent was earned by the accommodation enterprises of other types. The total hotel income excluding taxes decreased in 2009 by 208 million Hrivnas or 4, 8 percent in comparison to 2008 and it was 44, 5 billion Hrivnas (approximately 450 million Euro). Almost half of the total income (44,1 percent) was received from the main activities accommodation price, 17,4 percent from providing with the additional services, 38 percent, and 5 percent from other activities. In comparison to 2008, the structure of the hotel income underwent some insignificant changes. Thus, along with the decrease of the income from the main activities by 0,9, there was the increase of income from the additional services by 0, 5 and from other activities by 0,4. This suggests that in the conditions of the worlds economic crisis the hotels losing income from their main activities, so that the hotels have to offer some additional services and facilities in order to generate income.
In 2009 comparing to 2008 the income for foreign tourism decreased by 1,8 million Hrivna and was 913,7 million Hrivna. (42,3 percent of overall income from the main activity). The hotels of Kyiv earned the highest income for foreign tourism 574,5 million Hrivna. or 62,9 percent of the total income received from foreign tourists. A significant contribution to Ukraines overall foreign income was made by the hotels in the Crimea (7,6 percent of the overall income), as well as the hotels of Lviv, Odesa, Kharkiv and Donetsk regions (from 6,8 to 3,2 percent). The hotel economy is the business sphere where only those hotels can compete who offer high quality services to their clients, which is impossible without professionally trained personnel. In 2009, the hotel personnel included 27, 1 thousand persons, which are 1.903 persons or 6,6 fewer than in 2008. The reduce of personnel quantity was connected with job cuts because of the economic crisis. It was an inevitable step for the sake of cost cuts on staff wages. Thus, the countrys average quantity of personnel in one hotel was 32 persons. An average monthly wage of a person decreased in comparison to 2008 by 26,2 Hrivna and was about 1.800 Hrivna or about 180 Euro per month.
Incomes from Hotel Accommodation

The income of the hotel accommodation services excluding taxes comprised in 2009 1,8 billion (about 180 million Euro), that is less than in 2008 by 128 million Hrivna. (or by 15,6 percent comparing prices). The hotels of Kyiv received 42,3 percent of this sum, the Crimea hotels got 13,3 percent, the hotels of Lviv region 9,0 percent, Odesa hotels 6,9 percent, hotels of Dnipropetrovsk region 3,9 percent, and of Donetsk region 3,7 percent. The income from one person accommodation in Ukraines hotels in whole was 23.000 Hrivna (about 2.300 Euro, excluding taxes), while the hotels of Kyiv received about 60.000 Hrivna, the hotels of Kharkiv region 27.000 Hrivna, the Crimea hotels 27.000 Hrivna, and the hotels of Zhytomyr region only 4.200 Hrivna. The income from rooms function for one person per day was little less than 300 Hrivna. The highest index among all Ukrainian regions was in the city of Kyiv, in Lviv, Odesa and Ivano-Frankivsk regions and in the Crimea; and it ranged from 460 to 300 Hrivna.
Growing SME sector in tourism

Physical persons entrepreneurs can compete significantly with the hotel enterprises including big hotels. The number of landlords is increasing remarkably. They can provide a range of services to better prices. According to the data of State Tax Administration in 2009, the number of physical persons entrepreneurs with a temporary accommodation services was about 6.300 persons overall, and thereof 2.736 persons or 43,5 percent of all entrepreneurs who are running the hotels themselves. The number of physical persons running hotels has increased in 2009 by 526 persons or 23, 8 percent compared to 2008. Their overall income was 335,2 million Hrivna (59,0 percent of physical persons proving with the temporary accommodation services), that was 52,7 million Hrivna or by 18,7 percent more than in 2008. The highest quantity of physical persons acted in the Crimea (268 persons of 9,8 percent of the total number of entrepreneurs providing with services on temporary accommodation), in Transcarpathians region (259 persons or 9,5 percent) and in Lviv region (238 persons or 8,7 percent), they received more than a quarter (26 percent) of overall hotel income in Ukraine. A big income from providing with
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temporary accommodation services was also received by entrepreneurs in Dnipropetrovsk region - 25,7 million Hrivna. or 7,7 percent of overall incomes from the hotel enterprises run by physical persons in Ukraine. The income of entrepreneurs in Kyiv was 7,3 percent of overall income from private hotels, in Odesa and Donetsk regions 7,2 percent to 6,9 percent respectively.
Obviously, the hotel economy is an important component of tourism industry. Its effective function indicates positive changes in the countrys economy. It is also the important precondition of intensification of international relations and country integration into the world community. Improvement of accommodation quality in Ukraine according to the international standards is the priority in development of hotel industry; along with improve of tourism technologies, introduction of new kind and forms of servicing that will allow satisfying the needs of clients to a greater extent.
Investments in development of the hotel infrastructure

One of the main precondition for the development of the hotel economy in Ukraine is creating a favourable investment climate and seeking funds to build new hotels and reconstruct the functioning ones. The year of 2009 resulted in investments of about 1,4 billion Hrivna and 788,6 million Hrivna (corresponding to 84,8 and 66,2 percent of investments in 2008). The share of investments for the development of the hotels and other places for temporary residence has mastered to 1,5 percent. The funds of the state budget made it possible to master 19,8 million Hrivna, or 0,9 percent investments for these activities.
29,4%
Distribution of the direct foreign investments in development of hotels and other places for temporary residence by January, 1st 2010
Cyprus
Great Britain Switzerland Russian Federation USA Others British Virgin Islands
18,7%
14,7%
9,8%
9,0%
5,4%
13,0%
3.407 accommodation units were put in operation in Ukraine in 2009, 1.662 of them in 36 brand new hotels. Reconstruction of already functioning buildings helped to increase the number of accommodation units by 1.745; almost half of them (49,3 percent) were put in operation in the city of Kyiv and the Crimea. The tourist camps for 353 accommodation units also began to run. Since January 2010, the direct foreign investment in the development of hotels and other places for temporary residence have amounted to 258,9 million US dollars which was 0,7 percent of the total direct investment in Ukraine.
31 countries of the world have invested in Ukraines economy. The biggest investments for the development of the hotel economy of Ukraine were made by Cyprus 76,1 million US dollars, Great Britain 48,5 million US dollars, Switzerland 38,2 million dollars, Russian Federation 25,3 million US dollars, USA 23,2 million US dollars and British Virginian Islands - 14,0 million US dollars.
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Economic Program shows results

Since 2000, Ukraine has implemented significant positive economic and legal reforms. The economy has grown at an annual rate exceeding 7 percent over the period of 2000 to 2008. This growth was fueled by strong domestic demand, and solid consumer and investor confidence. The economic and financial crisis that unfolded in 2008 has shook investor confidence and has stalled the inflow of capital. Ukraine remained in recession throughout 2009, with a recovery anticipated during 2010. In 2010 the Ukrainian government has adopted the Economic Program for 2010 2014, which contains a large number of positive economic and social measures and reforms over the medium terms. key IMF requirements for Ukraine to receive December's IMF tranche. To reduce budget expenditures, Ukrainian authorities launched a public administration reform at the beginning of December 2010 and plan to reveal the details of pension reform by the end of the year.
Foreign Trade
Russia and the European Union are responsible for more than half of Ukraine's trade. The USA is a relatively small trade partner, accounting for only 2.9 percent of exports and 3.3 percent of imports. In 2008, metals accounted for more than 41.2 percent of Ukraines exports, however, due to decline in the global demand, the share of metals in the exports structure declined to 33.4 percent in 2009. Ukraine is a member of the International Monetary Fund (IMF), the World Bank, and the European Bank for Reconstruction and Development (EBRD). Ukraine also cooperates with the Organisation for Economic Highly Positive Reforms/Actions Taken by Ukraine between 2000 and 2008
WTO accession (and all reforms embedded in this process) Reduction of non-payment and barter transactions, especially in budget-related transactions and the energy sector New Joint Stock Company law that brings corporate g overnance closer to OECD standards Agricultural land titling Allowing entry of foreign banks Adoption of the Budget Code, establishment of the budget classification system and introduction of equalization formula into inter-governmental fiscal relations Establishment of the Treasury system, including Treasury Single Account that services the budgets of all levels of government Creation of internal audit function and improvement of available fiscal information Reduction of tax expenditures, including dismantling Free Economic Zones (FEZ) loopholes Introduction of flat rate for personal income tax The implementation of the Trends in International Mathematics and Science Study (TIMMS) and independent evaluation/ examination in schools.
Source: Ukraine. Country Economic Memorandum. Strategic Choices to Accelerate and Sustain Growth, WB, 2010
Annual growth rate of 4 percent expected

In 2010, the Ukrainian economy is expected to grow by about 4 percent annually. In the first half of the year, the recovery was mainly export-led. In the second half of the year, as the external conditions worsened, the growth was supported by restoring private consumption and investment demand. In 2011, real GDP is forecast to accelerate slightly to 4.5 percent annually by vigorous investment demand. The latter fact, however, will also spur imports. The current account, thus, is projected to widen to about 3 percent of GDP in 2011, with net exports dragging down the pace of economic growth. Due to slower transfer of higher natural gas prices to other utility tariffs and administrative measures and to suppress food price growth, inflation will be kept around 10 percent in 2010. However, the utility price growth is set to resume strongly next year, Ukraine has kept the 2011 inflation forecast at 10 percent. At the beginning of December 2010, soon after the approval of the new Tax Code, the Government presented the Draft 2011 Budget Law. Due to new taxation rules with lower corporate taxes and some new tax breaks, the draft envisages a moderate increase in budget revenues, up by a nominal 11.4 percent annually. At the same time, reducing the deficit, expenditures are projected to increase by about 4 percent. Expenditure tightening allowed the government to target the state budget deficit at 3.08 percent of GDP in 2011. Approval of the 2011 Budget Law with a general government deficit below 3.5 percent of GDP in 2011 is one of the
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Cooperation and Development (OECD), but is not a member. Since May 2008 Ukraine is a member of the WTO. In addition, Ukraine has concluded a number of bilateral agreements concerning trade, avoidance of double taxation, and mutual guarantees of investments. Table 8 Key Macroeconomic Indicators
Indicator Nominal GDP, UAH billion Real GDP, % change Consumption, % change Fixed Investment, % change Export, % change Import, % change GDP deflator, % change CPI, % change eop Current Account Balance, % GDP Terms of Trade, % change Budget revenues, % GDP Budget expenditures, % GDP Fiscal balance (with Naftogaz, w/o bank recap), % GDP External debt, % GDP Public and Guaranteed Debt, % GDP 2005 441.5 2.7 15.7 3.9 -12.2 6.4 24.6 10.3 2.9 8.3 41.8 44.1 -2.3 45.3 17.7 2006 544.1 7.3 12.4 21.2 -5.6 6.8 14.8 11.6 -1.5 4.9 43.7 45.1 -1.3 50.4 14.8 2007 720.7 7.9 13.6 23.9 3.3 21.5 22.7 16.6 -3.7 9.8 42.3 44.3 -2.0 58.6 12.4
It also has a free trade agreement with Russia, as well as countries of the Commonwealth of Independent States (CIS).In 2008, Ukraine and the European Union launched negotiations on a free trade agreement.
2008 949.9 2.1 9.0 1.6 5.2 17.1 29.2 22.3 -7.2 6.1 43.9 47.0 -3.1 83.6 20.1
2009 914.7 -15.1 -12.1 -46.2 -25.6 -38.6 13.7 12.3 -1.6 -6.8 40.7 49.4 -8.7 90.8 34.7
2010 1081.9 4.3 6.5 3.2 6.5 10.8 13.4 9.8 -2.2 1.4 43.2 49.7 -6.5 82.2 7 41.6
2011 F 1243.3 4.0 3.2 5.5 5.5 5.7 10.5 10.7 -3.1 0.0 41.6 45.1 -3.5 7.7 42.8
2012F 1417.5 4.5 4.2 7.6 5.1 5.7 9.1 8.9 -3.4 0.5 40.7 43.2 -2.5 72.4 42.6
Source: Ukrainian Authorities, WB projections
Table 9: Key Macroeconomic Indicators

2008 GDP growth, %yoy GDP per capita, $ Industrial production, %yoy Retail sales, %yoy Budget deficit, %GDP Government external debt, %GDP Inflation eop Gross international reserves, $ billion Current account balance, %GDP Gross external debt, %GDP Exchange rate Hryvnas/US Dollar eop 2.1 3 870 -3.1 18.6 -2.1 9.3 16.6 31.5 -7.0 56.4 7.7 2009 -15.1 2 540 -21.9 -16.6 -8.5 20.5 12.3 26.5 -1.7 88.6 7.99 -6.5 21.5 10.0 34.0 -0.5 78.5 7.8-8.0 -3,5 30.0 10.0 35.0 -3.0 75.0 8.0 2010 4.0 3 060 2011* 4,5 3420
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Views from outside Investment climate improves

Ukrainian authorities regularly declare their willingness to encourage foreign investment and the broader public is well disposed towards foreign investment. Below an overview on international observers of the economic development of the country is presented. The Government approved by its Resolution No. 1107, 2008, the Agenda for the Cabinet of Ministers of Ukraine to Overcome Effects of the World Financial and Economic Crisis and Assure Sustainable Development. It focused on the prevention of further unfolding of the crisis, slowing-down of the economy of Ukraine and degradation of living standards of its residents. Respectively, one of the priority tasks of the Government concerns the provision of incentives to investment activities, namely: boosting up investing activities, contributing to the increase of volume of foreign direct investment in Ukraine, and creating conditions for accelerated technological modernisation of domestic production facilities to improve their energy efficiency and competitiveness. The actions of the Government are aimed at: securing stable operation of enterprises of the real economy sector in crisis conditions, first of all, in those sectors that have been hit most by the world financial crisis; providing governmental support to the above sectors, also in the form of sovereign guarantees; and implementing an efficient policy in the domains of energy saving and domestic industrial production sector technological upgrade.
Legal Framework of Investment Activities

Ukrainian legislation generally creates equal opportunities for both domestic and foreign investors. There are only few restrictions on foreign investments, e.g. foreign companies cannot hold legal title to agricultural land. Ukraine has already established a favourable legal framework for investors to date. This domain is specifically regulated by the following Laws of Ukraine: on Investment Activities; on Treatment of Foreign Investments, on Elimination of Discrimination in Taxation of Business Entities Established Using Properties and Funds of National Origin etc. These acts provide: sovereign guarantees of investment protection irrespective of its form of ownership; application of the national treatment of currency regulation and tax collection on the territory of Ukraine to business or other legal entities established with involvement of foreign investments irrespective of form or time of the latter; indemnification for damages, lost profit and nonpecuniary damages that have resulted from action/ inaction of government bodies of Ukraine or their officials or their improper performance of their legislatively established responsibilities in respect of foreign investors; investment recovery to investor in kind or in currency it has been made without any duties or fees as well as recovery of any returns on such investments in cash or in kind in case of investment activity termination. In the same time, the issue of improving legislative and organisation framework to enhance the relevance of mechanisms providing beneficial investment climate and create the basis for preservation and increase of competitiveness of the domestic economy remains high on the agenda.
National Target Programme for Euro 2012

One of the mid-term set task of the Government concerns the elimination of infrastructure-based limitations to develop previous traffic arteries and their integration into the overall European infrastructure; to develop railroad transport, sea ports, airports, modern telecommunications facilities, as well as the execution of the National Target Programme of Preparing for and Holding Finals of UEFA Football Championship 2012 in Ukraine. In July 2010, the Verkhovna Rada adopted the Law of Ukraine to Change Some Laws of Ukraine on Hotel Infrastructure Development and Preparation for Holding the Final Part of European Football Championship 2012 in Ukraine. The Law envisages a temporary (effective from 1 January 2011 until 31 December 2020) profit tax relief on hotel services (hotel room sales and ancillary hotel services) provided by three, four and five-star hotels.
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The Government has taken on ambitious activities aiming at improving the current situation in practically all the economy sectors from metallurgy to building and construction. A number of laws and Cabinet resolutions have been elaborated and adopted to resolve issues in various sectors. These specifics include resolutions to provide favourable environment for investments in the construction sector, improve and cheapen licensing and permit-issuing procedures, implement a competitive framework for land plot and related development rights acquisition, provide incentives for the use of alternative energy sources and fuels, expanding the domestic market for local machine-building, agro industrial etc. companies.
4 billion 605.8 million US dollars (76.9 percent of the total volume), CIS countries invested 849.2 million US dollars (14.2 percent), and other countries of the world 531.0 million US dollars (8.9 percent). Investment was made mainly in the form of cash contributions, which sum up to 5 billion 684.8 million US dollars (95.0 percent of invested amount). Increase in the total foreign capital in the economy, given its revaluation, losses, exchange rates, etc., amounted to 4 billion 655.0 million US dollars for 2010. Increase in foreign capital was observed at enterprises engaged in financial activities (in the amount of 2 billion 628.5 million US dollars), real estate transactions, leasing, engineering and provision of services to entrepreneurs (485.6 million US dollars), trade, repair of motor vehicles, household goods and items of personal consumption (447.9 million US dollars), as well as at industrial enterprises (766.2 million US dollars). Both domestic and foreign investors still encounter difficulties at a practical level. These do not relate specifically to the issue of foreign ownership or investment, but rather to enforced arbitrarily administrative hurdles, or random delays. Foreign investments are not to be subject to nationalisation, expropriation, requisition, or any other measure of similar effect, except it is in the public interest. In such cases, compensation must be provided to the investor based on the market value of the property. (source: Source: PriceWaterhouseCoopers)
Attractive conditions for investments

In furtherance of Government commissions a sustainable increase of investments in the national economy took place and the implementation of an innovation and investment-based model of economic development was established. The Ministry of Economy makes regular efforts to further improve the legislative framework in the investment domain. E.g., legislative framework has been set up to secure development of: public and private partnerships in Ukraine; updated legislation in the domain of mineral resource management; concession activities; out-of-court dispute settlement; industrial parks; clustering of the economy of Ukraine. Noteworthy, the investment policies of the Government of Ukraine are aimed at creating attractive conditions for investing activities and thus requires public support from investors. Moreover the need to speed-up expected changes in the legal-regulatory domain demands more proactive stance from investors who should propose to the Cabinet of Ministers of Ukraine their draft legislative acts with clear-cut and balanced mechanisms of solving specific issues in the investment domain professionally developed by joint efforts with central bodies of the Executive. Foreign direct investment account for 5 billion 986 million US dollars in the economy of Ukraine in 2010, which is 6.2 percent more than in 2009 (State Statistics Service reported 5 billion 634 million US dollars). The EU invested
Indicators for doing business in Ukraine

Table 10: Doing Business 2011 data for the Ukraine
Topic Rankings Starting a Business Dealing with Construction Permits Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Closing a Business DB 2011 Rank 118 179 164 32 109 181 139 43 150 DB 2010 Rank 136 181 160 30 108 181 139 43 145 Change in Rank 18 +2 -4 -2 +1 No change No change No change -5
Source: Ukraines rank acc. to International Financial Corporations Doing Business 2011 Annual Report
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Profile of second largest Country in Europe

Ukraine is the second largest country in Europe in terms of area (603,700 sqkm) and the fifth biggest country in terms of population (46.2 million people). Ukraine adjoins the Russian Federation to the east and northeast, Belarus to the northwest, Poland, Slovakia and Hungary to the west, Romania and Moldova to the southwest, and the Black Sea and Sea of Azov to the south and southeast, respectively. Ukraine is a republic under a mixed semi-parliamentary semi-presidential system with separate legislative, executive, and judicial branches. In February 2010 Victor Yanukovych was elected as the President of Ukraine. Administratively, Ukraine is composed of 24 regions and the Autonomous Republic of Crimea. The cities of Kyiv and Sevastopol also have a special legal status. Ukraine's population is estimated at 45.7 million people at the end of 2009, which is 5.7 percent lower than the population disclosed in the 2001 census. Five cities have a population close to one million people, including Kyiv with 2.7 million people.
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PART 2 Section A: Detailed Investment project descriptions

I. Project Cosmopolit, Kharkiv HHHHH
1. GENERAL INFORMATION
1.1. 1.2. Type of project: Name of project: Reconstruction Reconstruction of 2B-4 and -6 buildings including expansion of hotel and office- commercial premises at 1, Akademika Proskoury str., Kharkiv. 03.11.2010. construction permit is obtained 04.11.2010. start of construction 31.03.2012. putting into test operation De luxe (*****) Business hotel with working and vacation conditions. 90 = 29 (available funds) + 61 (room funds due to reconstruction) Single, Twin. Suite Economy 2 Standard 59 13 59 14 Semi-suite 14 2 2 Suite
1.3.
Term of project implementation:
Hotel classification (stars): 1.4. 1.5. 1.6. Type of hotel: Number of rooms: Room category: Type Single Twin with two separate bed With extra bed 1.7.
Approximate price (room price for one person): Single .................................................90-150 EUR Twin .................................................. 135-200 EUR Suite ................................................. 250-350 EUR Apartment ......................................................... EUR Note: Armani and DSquared theme interior in the suite rooms. Restaurant: 1 Conference-hall Swimming pool Fitness centre Sauna Medical care Business-centre Parking Currency exchange
1.8.
The hotel can offer the following facilities:
Note: Buildings are designed in such a way that crossings of guests and personnel flows are minimized to let the former freely conduct their activities: whether participating in business meetings or attending SPA centre simply in slippers and bathrobe directly from their rooms.
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PART 2: INVESTMENT PROJECTS IN UKRAINE Cosmopolit
1.9.
Restaurants: Type Total number of seats Cuisine Italian and national Price Average cheque: 50 EUR Average cheque: 15 EUR Interior Venice hall, Anieri library-hall Lounge style Other
1. Restaurant de luxe 3 halls, DaVinci belongs to 150 seats restaurant chain Kozyrna karta 2.Lounge-hall bar 50 seats
Theme bar
3. Breakfast hall
90 seats
Buffet, Included in continental, the room English price
1.10. Conference-hall: Type Conference hall in building console Total number of seats 200 Quality Price 90 EUR/hour 450 EUR/day Interior 5* hotel interior. Exit to the roof where open terrace is located. Technical equipment Projector, presentation board, monitor, Wi-Fi, sound system, of synchronized interpreting.
Room for negotiations 10 in the hotel building Conference hall in the 120 building of business centre
10 EUR/ 45 EUR/ 40 EUR/ 200 EUR/
5* hotel interior Presentation board, monitor, Wi-Fi Business class interior Projector, presentation board, monitor, Wi-Fi, sound system, system of synchronized interpreting. Presentation board, Wi-Fi Presentation board, Wi-Fi, sound system
Room for meetings and seminars Hall for trainings and seminars.
12 30
25 EUR/ 110 EUR/ 35 EUR/ 140 EUR/
Business class interior Business class interior
1.11. Fitness centre: Note: Situated near the SPA zone, exit to the swimming pool, 5.3 m height.
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2. LOCATION
2.1. 2.2. 2.3. Address: 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 GPS-coordinates: 36.278984 Place characteristics: 50.04488 Business centre Park zone
Note: Business complex is located in the park city zone along the entry road from 105 highway Moscow-Kharkiv to Sumska central street. Distance to: City centre : ................................6 km The nearest airport: ............. 18,5 km The nearest railway station: . 10,7 km 105 highway : ......................0,5 km 2.4. Transport connections (types of public transport): Underground..................... Yes 6 km Bus/Trolleybus ..................Yes directly Tram ...................................... Yes 1 km River tram ........................................No Route taxi ..........................Yes directly Note: There is transport connection from the railway station to the city centre and some parts of the city. The opening of the new route is being negotiated; it will connect business centre, airport and Metalist stadium. 2.5. Map:
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3. CONSTRUCTION QUALITY AND TECHNICAL EQUIPMENT

3.1. What is the base of building? 29 rooms and DaVinci restaurant are located in the four-storey building (metal frame, HVF). Hotel room funds under construction will be in the seven-storey building (monolith ferroconcrete frame, HVF). Technical information: Building ground: Ferroconcrete founding. Number of storey: 7 3.3. Building/decoration characteristics: Business complex has own gas boiler. Facades made of mirror glass and keramogranite tiles combine the buildings in one architecture ensemble. Type and state of technical equipment: It is planned to use the sun vacuum collectors for hot water supply during sunny time. Also a backup diesel generator will be set. Features: Type Electricity Gas Quantity Power 670 kW 60thousand 3/month in winter 8thousand 3/month in summer Drink water Waste 3.6. 10003 App. 12003 Urban network 2 entries Urban network 2 entries Status Supply chain in the territory Supply chain in the territory. Own gas distribution point. Description
3.2.
3.4.
3.5.
If building/ reconstruction is on, please describe state of building: State of object: Building state: Modernizing reconstruction and new construction. First phase of project: Reconstruction of Business centre - 7 storeys (S=7 882 m2) 100% (acting Business centre) Construction of hotel-restaurant - 4 storeys (S=2473 m2) 100% (acting Cosmopolit hotel and DaVinci restaurant) Second phase of project: Planning stage (before the start of construction) 100% Construction stage 6% Business complex in the whole 61% Present building expenses: First phase of project: Equity of 2890 thousand EUR and TULCO loan (Swiss company TULCO Holding AG), the rest of which comprises 4444,4 thousand EUR for 01.01.11. Second phase of project: Equity of 370 EUR used: Planning stage (before the start of construction)92,6 thousand EUR Construction stage...77,4 thousand EUR
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If building/ reconstruction is on, please describe state of building? Does constructing continue\ or is it stopped? Construction works continue. Present situation with contractual agreement: Contract with building company is valid
4. CONSTRUCTION PERMITS AND LAND RIGHTS

4.1. What permits for construction/licenses have you got? Type Project of land use Project documentation State expertise Construction Permit Sanitary epidemiological station Fire safety City plan grounding approved 4.2. 4.3. Issued 13.12.2002 05.11.2003 27.10.10 27.10.10 03.11.10 13.09.10 21.10.10 26.10.10 11.08.10 01.06.12 01.06.12 13.09.13 21.10.14 Valid till 01.06.2027 01.10.2028 Notes Contracts of land leasing
What permits/licenses would you need to get? We already have all permits and licenses. Is the land purpose in line/will it be in line with project implementation of hotel construction? Present land purpose 1. Operating and maintaining administrative buildings and constructions. 2. Operating and maintaining economic block and the entry to a non-residential building Future land purpose 1. Operating and maintaining the hotel building, administrative buildings and constructions 2. Operating and maintaining the hotel building.
5.
What land rights have you got at the moment? Rights Land ownership Building ownership Kharkiv City Bureau of Technical Inventory 22.05.2002 15.04.2005 14.07.2010 14.07.2010 13.12.2002 05.11.2003 01.06.2027 01.10.2028 Own property Given by? When? Valid till Notes Leasing The entry to a non-residential building, office, restaurant, hotel;
Land leasing
Executive committee of Kharkiv municipal council
Leasing of building 5.1. Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership?
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II. UKRAINIAN PARTNER

1. 2. 2.1. 3. 4. Name of juridical person/physical person-entrepreneur: LLC Telesens Ventures. Address, phone/fax number, e-mail address, other contacts: 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 +38057 7 199 535/+38057 7 199 535, S.Demyanenko@telesensventures.com Date of foundation (for juridical person): 16.08.2001 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 31632075 Extract from EDRPOU is in the annex of this form: Yes 5. 6. 7. Founders (for juridical person): LLC Managing company Telesens Holding Governing body: General meetings of shareholders, Director. 71.33.0 Office equipment leasing; 74.60.0 Investigating activities and providing security services; 74.13.0 Market research; 74.14.0 Management and commercial consulting; 51.90.0 Other wholesale trade. 8. 9. 9.1. Registered capital: nominal: 14 912 067,54 . Affiliate enterprises: LLC Management company Telesens Holding , Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 33203976, 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 9.2. 9.3. 10. LLC Hotel Kosmolit, Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 33290037, 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 LLC DaVinci, Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 32950077, 1, Akademika Proskoury str., Kharkiv, Ukraine 61070 Who is the contact person for this project? Name and contact information Position: 11. 12. 13. Long-term operation Are there any current contractual relationships on the project? All necessary agreements are reached. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes First project phase construction of Business complex (2001-2005): Reconstruction, building, putting into operation the 10356 m2 Business complex. Demjanenko Svitlana Ph. +38057 7 199 536 Executive Director paid-in: 14 912 067,54 . Are there any daughter enterprises, subsidiaries? Main activities of Ukrainian partner: 70.20.0. Real estate leasing;
What is the investment strategy of Ukrainian partner?
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14.
What is your experience in hotel/ tourist/ restaurant business? Managing the five star hotel for 5 years. Managing Class de luxe restaurant for 6 years. What is your motivation for implementing this hotel project? Holding the leading position on the market of commercial real estate of Kharkiv. Increasing current capitalization up to ~ $29 million. Including in to worlds brand hotel network (ex. Mariott, Radisson). Satisfying UEFA demands on the 5* accommodation in Kharkiv during Euro 2012.
15.
III. PROJECT FINANCING

1. Total investment: First building phase: Building and putting into operation the business complex, S=10356 m2 (estimate costs before reconstruction~$8900 thousand EUR): Office building of the business complex - 7 storeys (S=7 882 m2); Hotel and restaurant building - 4 storeys (S=2473 m2). Equity of 2890 thousand EUR and TULCO loan (Swiss company TULCO Holding AG), the rest of which comprises 4444,4 thousand EUR for 01.01.11. Second building phase: Planning stage (before the start of construction)......... 92,6 thousand EUR Building stage ..............................................................5166,7 thousand EUR Building costs ..............................................................3731,9 thousand EUR Settlement costs ........................................................ 1434,8 thousand EUR Refinancing TULCO loan ............................................ 4444,4 thousand EUR 2. Justification of costs: (table with all important cost figures) Description ......................................................................Amount, thousands, EUR Project developing, obtaining necessary permits .........92,6 Refinancing loan .............................................................4444,4 Building works (new building) ........................................3089,6 Building works (reconstructing business complex) ......498,5 External networks............................................................25,3 Equipment .......................................................................1434,8 Other ................................................................................118,5 Total..................................................................................9703,7 3. Equity: Foreseen for the project in total:................................3334 thousand EUR Available .......................................................................74 thousand EUR Already invested in the project ...................................3260 thousand EUR Note: Equity of 2890 thousand EUR was used during the first phase (business center construction) and equity of 370 thousand EUR during the second phase. Available equity (74 thousand EUR) will be invested in further construction.
27
4.
Loan: Foreseen for the project in total:..................... 9260 EUR Available ........................................... EUR Already invested in the project ........................ EUR
Note: 9260 thousand EUR loan is planned to use in parts, 4444,4 thousand EUR for refinancing TULCO loan, and - 4815,6 thousand EUR for financing the second construction phase. 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? Planned payback term - 6,2 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? Average operating expenses during 2011-2018 (current production and maintenance) -1716765 EUR annually (loan costs excluded). Please see p. III.6. for details. 6. What annual turnover can be expected after completion? What annual turnover will be in the future? 3417615 EUR on average during 2011-2018 annually. Year 2011 2012 2013 2014 2015 2016 2017 2018 Total Income, EUR 1 494 000 2 912 401 3 140 885 3 418 493 3 721 086 4 050 912 4 410 421 4 192 719 27 340 918 Expenses, EUR 973 779 1 444 063 1 478 506 1 520 354 1 867 575 2 102 156 2 204 972 2 142 711 13 734 116 Net operating profit, EUR 520 221 1 468 339 1 662 379 1 898 139 1 853 511 1 948 755 2 205 450 2 050 007 13 606 801 Operating profitability 53% 102% 112% 125% 99% 93% 100% 96% 99%
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.
IV. INVESTMENT PARTNER

1. What can you offer to the investor? >50% share that implies >50% net operating profit. Lesser share is also possible. . The difference between the necessary level of funding (9260 thousand EUR) and the price of the purchased package is taken to LLC Telesens Ventures in the form of the loan from the investor. Business conditions on exit, profit distribution, loan payback are determined by the loan agreement and agreement on share purchase.
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2.
What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor(<50 %) Managing partner Creditor (Loan) Brand partner Building company Architecture/engineering company Preferred Acceptable Objectionable
3.
What amount should be invested and what are the investors rights in this connection? Profit distribution between the investor and the enterprise proportionally according to share of registered capital.
4.
Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine.
V. MARKET ANALYSIS
1. GUESTS
1.1. Hotel target group: Business clients ................................... ~ 40 % Show business ..................................... ~ 5 % State officers, including top ones ....... ~ 20 % Tourist or private visits......................... ~ 35 % 1.2. Average room price for one person: Opening ..................120 EUR* In 5 years ...............100 EUR* * - Euro currency change in 1,6 times during 5 years. What occupancy do you predict? 1.3. January ................................... 40 % February .................................. 45 % March ...................................... 45 % April ......................................... 50 % May .......................................... 60 % June ......................................... 50 % July ......................................... 50 % August.................................... 45 % September ............................ 55 % October .................................. 60 % November .............................. 60 % December.............................. 40 % Ukraine ....................~ 30 % CIS............................~ 20 % Europe .....................~ 30 % USA ..........................~ 15 % Other ......................... ~ 5 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Avrora - 4* , 37 rooms, Aristokrat restaurant ZS Club - 4* , 15 rooms Britania - 4* , 33 rooms, Britania restaurant
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2.2.
Are there some other hotels being built in the near? Yes: the 5 star hotel of DCH group of companies the 5 star Superior Golf Club hotel What marketing steps are you planning for hotel popularization? Own website............................................................................................ Yes Cooperation with tourist companies night stay ................................... Yes Cooperation with aircraft companies budget trips .............................. Yes Cooperation with aircraft companies ................................................... Yes Advertising .......................................................newspaper, tv and internet Corporative clients ................................................................................. Yes Loyalty programme ................................................................................. Yes Participation in the activities of Premier hotel network. .................. Yes
2.3.
2.4.
What are the weak and the strong points of the project? Weak points Time restriction (-2012) Strong points Project included in the base of strategically important investment projects of Ukraine. www.in.gov.ua/index.php?lang=ua&get=571&id=2602 Project included in the target programme on Euro 2012 on different stages; State resolution of the Cabinet of Minister 937 of 16.10.08 and 357 of 14.02.10 Regional resolution of 61 session of regional council of15.09.10 unicipal resolution of 48 session of municipal council of 22.09.10)
2.5.
Contact person:
Demjanenko Svitlana Ph. 38057 7 199 536, fax: 38057 7 199 535 E-Mail: S.Demyanenko@telesensventures.com
2.6.
Who filled in the form? Experts of the management company. Date: Languages: 10.02.2011. interpreter/translator available
Who is the current contact person of the project? Demjanenko Svitlana Ph. 38057 7 199 536, fax: 38057 7 199 535 E-Mail: S.Demyanenko@telesensventures.com Date: Languages: 10.02.2011. interpreter/translator available
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I.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
Project Radgospna, Kharkiv HHHH

Project type: Project name: Project duration: New recreational facility with a separate new spa facility (two-storey); summer swimming pool with bar. Development of a building and spa salon adjoining the recreational facility Development commencement date: 01.04.2011; development commissioning date: 01.06.2012. Business, sports and tourist, recreational facility 26 Double / Executive / Suite of rooms
Hotel rating (stars): First (****) Hotel theme: No. of rooms: Room categories:
Note: 17 doubles, seven executives, 2 suites of rooms. Doubles for individuals with special needs (17,9 m2 area) are located in the left wing. Executive suite areas range from 42 to 54 m2; the area of a suite of rooms makes 90 m2 1.8. Indicative price (of the room, per one person): Single ...........................................EUR 60 Double..........................................EUR 100+ Executive ......................................EUR 200 Suite of rooms .............................EUR 300 Note: all rooms have jetties. The suites of rooms are two-storey with two bathrooms on each floor. 1.9. Hotel servicing facilities: Restaurants (no.): .......................150 seats Conference hall ...........................30 seats (83 m2 area) Swimming pool: ...........................a big summer swimming pool with bar Fitness centre (in the spa salon) Sauna (hammam) First-aid post Parking lot (for 30 cars) Currency exchange desk Note: The land plot area allocated for new development makes 0.868 ha; it adjoins the already built club of the ARADA Hotel (three-star) with the 1.2 ha area. Hence, the total Project area with adjacent territory makes for around two hectares.
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PART 2: INVESTMENT PROJECTS IN UKRAINE Radgospna
1.10. Restaurant: Type 1.European 2.Hunters 3.National 4.Summer Total seats 150 30 Up to 50 Cuisine national, Asian, French, Mediterranean Price Up to EUR20 UR 15/20 UR 15/20 UR 15/20 Interior design Classic Wood, fur, arms, rarities On a river bank with a fireplace On a river bank with a fireplace Other EUR15/20 (w/out strong spirits) Already built Already built Already built
1.11. Conference Hall: Type 1.Business Total seats Up to 100 Quality Supreme Price EUR300 Interior design Modern Technical support Presentation equipment (overhead, presentation board, monitor), Wi-Fi Internet access
1.12. Fitness centre: Note: The fitness centre located on the second floor of the spa salon; hammam, two massage parlours; hairdressers; a swimming pool with Jacuzzi and heating.
2. LOCATION
2.1. 2.2. Location: 3 Radgospna St., Dzerzhinsky District, Kharkiv, Ukraine (Oleksiivsky meadow park) Location outline: Beach Park area Note: The facility is located in the recreation area on the beach of the Lopan River in a picturesque beach locality. There are five summer swimming pools, 15 hotel rooms, three restaurants, a concert place and summer bars developed and operating within the area. 2.3. Distance from: The downtown area: .........................7 km Nearest airport: ............................. 15 km Nearest railroad terminal: ...............7 km Motorway: ...................................... 0.5 km 2.4. Commuting options (public transport): Underground ............................... Yes 2 km Bus/trolley bus ........................Yes 1.5 km Tram ..........................................Yes 0.5 km Minibus taxi..............................Yes 0.5 km Note: Asphalt road laid via the park area to communicate with the facility location
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1.5.
Map:
3. DEVELOPMENT QUALITY AND TECHNICAL FACILITIES

3.1. What has been envisioned as the basis for development? The design object concerns expansion of the existing ARKADA (three star) sports and recreation facility. A new building, spa salon, summer swimming pool and a bar have to be developed. The envisioned recreational facility shall be a three-storey building with an attic floor, all complete in the monolith reinforced concrete framework, and a separate two-storey spa salon made of lightweight structures. 3.2. Technical details: Development surface: The development project design accounted for the existing architectural space of the recreational beach area to provide for a harmonious fitting of the recreational facility complete with envisioned infrastructure into the existing site development to make it the key object conducive to tourist development of the related town sector. Number of storeys: three-storey recreational facility; two-storey spa salon. 3.3. Development/interior design features (e.g., availability of adjacent buildings; special facade etc.): The living space of the rooms: 780 m2; the space of summer facilities: 510 m2; the space of the recreational facility: first floor, 1,130 m2; second floor, 1,200 m2; third floor, 1,040 m2; spa salon area: 547.3 m2. 3.4. Type and condition of utility installations (e.g., use of renewable energy sources; sewage water recycling etc.): Total staff will tentatively make: for the recreational facility, 30; for the spa salon, 10.
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3.5.
Specific features: Type Electricity Natural gas Drinking water Sewage Medium pressure line Q-ty Condition Features
1.6.
Please provide characteristic of the building in the event of construction/renovation commencement: Development project condition (new development; refurbishment; modernisation): The new land plot allocation area is at 0.868 ha (for new development). The maximum development ratio is at 26.4%. The maximum land plot development density is at 2,288 m2 useful area per one hectare. The height of the recreational facility is 19.3 m and of the spa salon, 8 m. Development phase (foundation pit, erected structure (e.g., 20%), ready erected structure): Foundation works. Funds spent to date: $40,000 Building works continue/halted? Not commenced yet. Current situation with the work and labour contract: Contract with development company is effective: n/a Contract with development company has been terminated: n/a
4. BUILDING PERMITS AND LAND TITLE

4.1. What building permits/licenses do you already have? Type Land development project Design project documentation State expert assessment Building permit Sanitary and epidemiological inspection Fire safety Note: Decision by 48th session of the Kharkiv City Council of 5th convocation to Approve Urban Development Verifications of Development Project Locations for Legal Entities and Natural Persons, No. 241/10, of 22.09.2009. For PAKMAYA, LTD, on the recreational facility and spa salon adjoining ARKADA Sports and Rehabilitation Centre on 3 RADGOSPNA St., Oleksiyivsky meadow park area. The development shall be completed by 01.06.2012. 4.2. What permits/licenses do you still need to obtain? All technical specifications necessary for the elaboration of a working development project (the working development project is 50% completed) have been obtained from all related service administrations to date. It is still necessary to approve the working development project and receive the building permit. Issue date Valid through Notes
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4.3.
Does/will the designated use of the land plot comply with the hotel development project implementation? Current designated use of the plot Yes (in compliance) Future designated use of the plot Yes (will be in compliance)
4.4.
What land title do you currently have (Please specify the land title you have (property right to land; longterm lease) and the type of documentary proof of that)?: Title Land plot tenancy agreement Property lease agreement Acquired from When? Valid through Notes We already have the land lease agreement for 25 years (until 2032) for the plot with 1.2 ha area and the title to properties developed on it. Which we will obtain after day 20ieth of February, 2011 by decision of Kharkiv City Councils session on the development of a new recreational facility and spa salon.
4.5.
In absence of the title to land plot, will it be possible to buy/acquire ownership of that land plot? The land plot can be purchased whenever the right of tenancy of that land plot exists, and we have it. Yes, we can purchase this land plot.

1. 2. Name of legal entity/First, second names of private entrepreneur: PAKMAYA, LTD Registered address, phone/fax number, e-mail address, other contact details: 3 Radgospna St., Kharkiv; (+3057)719-95-49; (+3057)763-19-95;(+38067)5702526 Volodymyr Bilyi e-mail: arkadabeach@gmail.com 3. 4. 5. 6. 7. Registration date (for legal entity): 15/11/1996 Registration ID (USREOU): Founders (for legal entity): Managing bodies: Yes The excerpt from USREOU attached hereto the sole founder to date is Volodymyr Mykhailovych Bilyi Zeki Ashkar, PAKMAYA, LTD Manager HoReCa, retail distribution of alcohol and tobacco products; sports and recreation activities. 8. Subsidiary companies, branches or related parties, if any: The related natural person is Zh. K. Bila whose private enterprise deals with cooking, hiring of beach equipment, car parking and entrance to the facility territory in summer. 9. Who is the contact person for the Project (name, contact details, experience)? Name and contact details: Volodymyr Mykhailovych Bilyi. (+3067)5702526. Some fifteen years of experience in HoReCa business. The principal founder and sales manager 10. What is the Ukrainian partners investment strategy within the Project? Project design development, long-term operation, property participation and management
Main lines of business of the Ukrainian partner:
Functional responsibilities within the company?:
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11.
Are there any contractual relations related to Project implementation to date? There currently exist contractual relations in respect of the granting of architectural, engineering and technical expert in public catering services.
12.
Do you (or your employees/contractual partners) have previous experience of participation in similar projects? Yes. I had a recreational club, a casino and a restaurant of my own. What is your experience in hotel/tourism/restaurant business? 15 years. What motivates you to implement the above hotel development project? EURO-2012; also, a modern 4-star club-type 40-room hotel in a recreational beach area with 100% load round the year. There is just one smaller hotel with a small swimming pool in Kharkiv.
13. 15.
II. PROJECT FINANCING

1. Total capital: Design phase (before the commencement of construction) EUR 50,000 Construction phase EUR 3,000,000 Funds for construction....................................... EUR 2,500,000 Funds for finishing works .................................... EUR 500,000. 2. Cost certification: (table with all important cost indicators) Total area of the recreational facility and the spa salon: 3,9004,000 m2; 4,000 m2 EUR500/m2 = EUR2,000,000 EUR500,000: the swimming pool (open summer type); building of power substation; land beautification (fountain, pathways, greenery and shrubs. The approach to the hotel is paved). EUR500,000: purchase of equipment for the hotel and the spa salon (beds, TV sets, kitchen equipment, elevator, sling chairs etc.) 3. Your own invested capital: $500,000 Total envisioned for the whole Project: EUR3,000,000 Available/absent (cheap loan facility from an investor possible) EUR Currently invested into the Project ........................................................ EUR40,000 Note: My own capital of USD5,000,000 has been invested in the already developed ARKADA Hotel and Club. 4. Borrowed funds: $5,000,000 loan facility Total envisioned for the whole Project: EUR3,000,000 Currently invested into the Project: EUR40,000 Note: The owner has no freely available funds for new development.
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5.
Financing model: Please describe your financial considerations regarding the Project. Provide answers to the following questions: What is the envisaged term of investment depreciation? 4.5 to 5 years What current manufacturing (electricity, staffing) and operational (current repairs/ major repairs) costs have been envisioned? Current repairs
6.
What annual turnover amounts can be expected after the completion of development? What will the annual turnover be in future? EUR400,000 500,000 (after the completion of development) 500,000 600,000 (future turnover) Will there be a depreciation fund for operational expenses established or the funding will be provided from current turnover? Pending agreement with investor
III. INVESTMENT PARTNER

1. What could you offer to an investor? I offer an investor shared participation (50/50%) as a company founder. Other options are possible at the wish of investor. 2. What type of investor you are looking for? Investor Participation with own capital (e.g., as a limited liability or joint-stock company) Investors considerable participation (>50 %) Investors simple participation (<50 %) Managing partner (performing managerial functions) Principal holder (loan) Brand name partner (e.g., an international hotel network) 3. Desirable idea By consent of investor Desirable By consent of investor By consent of investor Acceptable Undesirable
What funds the investor will have to invest and what rights related to such investment he/she will obtain? An investor who will invest $5,000,000 will become a founder of PAKMAYA, LTD with 50% share in the company. The invested funds will be used for developing a new building comprising a recreational facility for 26 rooms, a spa salon, a swimming pool, and a bar.
4.
Will the investment have to be a direct one in Ukraine or executed via offshore companies? Not important
IV. MARKET RESEARCH

1. 1.1. GUESTS Target structure of hotel visitors: Mixed, from business tourists to business persons and vacationers from different countries. The hotel will be listed in the international hotel system.
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1.2.
Average room price per one person: At opening .................................EURO 60 through EUR300 Five years after opened ...........EURO 60 through EUR300
1.3.
What are your hotel occupancy rate forecasts? January ........................ 100 % February ....................... 80 % March ........................... 80 % April .............................. 90 % May ............................... 100 % June .............................. 100 % July ............................... 100 % August .......................... 100 % September................... 100 % October ........................ 90 % November .................... 80 % December .................... 100 %
2. 2.1. 2.2. 2.3.
COMPETITIVENESS Please provide description of three nearby hotels: MIR, a two-star hotel developed back in Soviet times; Four-star Baden Baden Hotel for 20 rooms located beyond town limits (eight kilometres from the town). Are there any other hotels developed/scheduled for development nearby? No What marketing tools have been planned for hotel promotion purposes? Own web site ...................................................................................... Yes Via tourism companies (as overnight accommodation) ................... Yes Via tourism companies (for economy-class tours) ............................ Yes Collaboration with air carriers ............................................................ Yes Advertising: ...................................................printed media, TV, Internet
2.4.
What are the strong and the weak points of this Project? There are no weak points as it is Kharkivs only hotel & club facility with six swimming pools, three saunas and a concert place. The entrance to the area in summer is fee-based (EUR8-10); stars with show programmes come there on weekends.
2.5. 2.6.
Contact person: +380675702526 Volodymyr Bilyi Name of the person who has filled out the Questionnaire: Name: Filling-out date: Command of languages: Name: Volodymyr Bilyi 11.02.2011 Russian, Ukrainian, German (secondary school level), Turkish Volodymyr Bilyi
Who is the current contact person for the Project? 2.7. Other All the rooms have been booked out by TUE TRAVEL Company (UK) for UEFA Family for the duration of EURO -2012 Football Championship. Disco parties and concert shows are attended by up to 1,000 visitors. 100 to 500 persons pay daytime recreational visits to the poolside. Saunas and restaurants work in winter time. A conference hall for 100 seats is being developed beside the hotel and, in absence of other accommodation facility for visitors, they will accommodate them at ours.
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I.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6.
Project Adome, Donetsk HHH

Type of project: Name of project: Term of project implementation Hotel classification (stars): Type of hotel Number of rooms Room category : Approximate price (room price for one person): Reconstruction, completion Completion of the three storeys and A dome 2007-2011 Middle class (***) sports, tourist 97 Single, Double, Suite, Apartments Single 69,5 EUR Double 72,3 EUR Suite 88,0 .EUR Apartments 232,0 EUR Restaurants: 2 Conference-hall: 2 Swimming pool:1 Fitness centre: 1 Sauna: 1 Medical care: 1 Business centre: 1 Parking: 2 ( ground, underground) Currency Total number of seats 50 60 50 40 Cuisine European and national European and national European and national European Price Interior European Ethno English castle English style Other
1.7.
The hotel can offer the following facilities:
1.8.
Restaurant: Type 1.Breakfast restaurant 2. Pervak 3.Pub 4.Coffee cafe
1.9.
Conference-hall: Type 1.Banquet hall 2. Conference-hall 3. Hall of meetings
Total number of seats 70 40 60
Quality
Price
Interior
Technical equipment Technically equipped Technically equipped Technically equipped
39
PART 2: INVESTMENT PROJECTS IN UKRAINE Adome
PART 2: INVESTMENT PROJECTSPlaza hotel complex 4* Crowne IN UKRAINE Adome
1.10. Fitness centre: Note: Sports resort complex includes fitness centre, sauna, massage and cosmetology facilities.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address: GPS-coordinates Place characteristics: Distance to: City centre, Business centre City centre: ........................................ km The nearest airport: ...................14 km The nearest railway station: ......11 km Highway: .......................................10 km 87, Artema str., Donetsk
Transport connections (types of public transport) Underground ...................................... Bus/Trolleybus ............................ 0,1. Tram ........................................... 0,1 River bus ........................................... Route taxi .................................... 0,1 2.5. Map:
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3.1. 3.2. 3.3. 3.4. 3.5. What is the base of building? Technical information: Buildingdecoration characteristics Features: Type Electricity Gas Drink water Waste water 3.1. If building/ reconstruction is on, please describe state of building: Object state: Building state: Present building expenses: The works continue Present situation with contractual agreement: Contract with building company is valid reconstruction. modernization eady erected frame construction 2 187,50 thousand dollars USA Quantity Status Description Metal frame construction Building ground:completion Number of storeys:12 storey building restricted conditions
Type and state of technical equipment:
Does constructing continue\ or is it stopped?

4.1. What permits for construction/licenses have you got? Type Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station 02.2004. 280/2 of 28.05.2004 11.04.2007 . 404/031 of 25.12.03 31.12.20 12 years Extended in 2008., 2009., 2011 Issued Valid till Notes
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II. Ukrainian Partner

1. Name of juridical person/physical person-entrepreneur): Private research and production enterprises Don-Sib 87, Artema str., Donetsk Ph. (062) 332-39-80, (062) 332-29-18 fax, vadim@ruoil.donbass.com 2. 3. Date of foundation (for juridical person): 18.07.1991 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 13512606 Extract from EDRPOU is in the annex of this form. Yes 4. 5. 6. 7. Founders (for juridical person): Bogatyrenko Iryna Governing body: Founder Main activities of Ukrainian partner: hotel business, caf and restaurant activities. Registered: paid-in: Who is the contact person for this project? Lebedev Vadim ph, +38 (099) 480-60-62 expert economist 8. 9. 10. 11. 12. What is the investment strategy of Ukrainian partner? Long-term operation Are there any current contractual relationships on the project? Agreement with General Conctractor Have you (your colleagues or contractual partner) got previous experience in similar project? Yes, we have What is your experience in hotel/ tourist/ restaurant business? 8 year experience in hotel business What is your motivation for implementing this hotel project? Preparation to Euro-2012, possibility to increase profitability of the enterprise.

1. Total investment: Building stage .............................................................................. EUR
Cost for building and settlement ...........................................1,55 EUR 2. 3. Justification of costs: (table with all important cost figures) Equity: Foreseen for project in total: .............1,75 mio EUR Available: .............................................0,00 mio EUR Already invested in the project .................. 1,75 mio Foreseen for project in total: .............1,55 mio EUR
4.
Loan:
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5.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 7 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? 14 400 000,00 UAH

1. 2. What kind of investor are you looking for? Creditor (Loan) Preferred ......... No difference Should investment be made directly to Ukraine or via some off-shore companies?
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target group: Entrepreneurs and business partners Opening 75,0 EUR In 5 years 87,0 .EUR 1.3. What occupancy do you predict? January ............................... 35 % February .............................. 53 % March .................................. 55 % April ..................................... 61 % May ...................................... 65 % June ..................................... 61 % July .....................................73 % August ................................70 % September .........................80 % October ..............................73 % November .......................... 71 % December ..........................82 % Average room price for one person:
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2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Atlas and Victoria hotels seem to the main competitors. Are there some other hotels being built in the near? Second phase of construction Donbass Palace hotel, Poushkinskyi hotel 2.2. What marketing steps are you planning for hotel popularization? Own website......................................................................................Yes Cooperation with tourist companies (night stays) .........................Yes Cooperation with tourist companies (budget trips) .......................Yes Cooperation with aircraft companies .............................................Yes Advertising: ....................................................newspapers, tv, internet 2.3. What are the weak and the strong points of the project? Advantages: Convenient location Expansion of additional services. Sports and resort complex, sauna, beauty salon, internet, conference hall, cafe, coffee bar, pub etc Weak points of the project: none 2.4. 2.5. Contact person: ............................................................. Lebedev Vadim Who filled in the form? .................................................. Lebedev Vadim Date: ............................................................................... 11.02.2011 . Who is the current contact person of the project? .... Lebedev Vadim Date: ............................................................................... 11.02.2011
44
I.
Project Artemivsk, Donetsk HHH

Type of project: Name of project: Term of project implementation: Hotel classification (stars): Type of hotel: Room number: Room category: new construction construction of hotel complex. till the start of 2012. 3 stars, Middle class Tourist, business, for long period of staying. 56 Single 12 Double 32 Suite 10 Apartments 2
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
Note: double rooms of two categories (standard and student). 1.8. Approximate price (room price for one person):: Single from 20 EUR. Double from 30 standard (student from 20) EUR. Suite from 50 EUR. Apartments from 100 EUR. Note: Price is the the subject to change depending on inflation and room equipment: 1.9. The hotel can offer the following facilities: Restaurant: 1. Bar: 1. Conference-hall: 1. Fitness centre: 1. Sauna: 1. Medical care: 1. Business centre: 1. Parking. Currency exchange. Note: equipment on agreement with investor. 1.8. Restaurant: Type Total number of seats 1.Restaurant - club 40 (with open terrace) Cuisine mixed Price Interior Other 238700 National Live music Restaurant with theme played by DJ. open terrace) Club type service, (140 sq.m. +94 sq.m) club cards, Kitchen complex mixed cuisine, (107 sq.m.) cocktail bar. mixed 63000 National Caf at day time (60 sq.m. ) theme club at night, live DJ music, various menu.
2.Cocktail bar
25
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PART 2: INVESTMENT PROJECTS INPlaza hotel complex 4* Crowne UKRAINE Artemivsk
1.9.
Conference-hall: Type
Total number of seats 35
Quality standard
Price 28000 (70 sq.m. )
Interior Business-like
Technical equipment On agreement with investor
1. For conducting trainings, seminars, business meetings.
1.12. Fitness center: 49000 (70 sq.m.). Note: on agreement with investor.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address: GPS-coordinates: 2, Chaikovskogo str., Artemivsk, Donetska oblast, Ukraine. 48.604312,37.996902 City centre
Place characteristics: Distance to:
Note: distance to the bus station 0,7 m, - railway station 0,5 km. City centre: ................................ 2,5 m. The nearest airport : ................ 90 m. The nearest railway station: .... 0,5 m. Highway ....................................... 0,7m. 2.5. Transport connections (types of public transport): Underground ...................................... No Bus/Trolleybus ..................Yes (0,05m) Tram ................................................... No River bus ............................................ No Route taxi .......................................... Yes 2.6. Map:
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3.1. 3.2. 3.3. 3.4. What is the base of building? local materials. Technical information: Building/decoration characteristics Type and state of technical equipment: Type Electricity Gas Drink water Amount Building ground: soil Number of storeys: 4. exclusive architecture solution. according to technical project (we can consider projects of investor). Status Connection on the territory Connection on the territory Connection on the territory Connection on the territory Description Electrical network 380 V 1 transformer point; Gas pipeline of mid pressure 100 mm; System of water pipelines of 100 mm, 200mm and 300 mm. Sewerage water pipeline 300 mm; water
Waste water
3.6.
If building/ reconstruction is on, please describe state of building: Is constructing continue\ stopped? : construction has begun yet.

4.1. What permission for construction/licenses do you have? Type Project of the land use Project documentation State expertise Construction permit Sanitary epidemiological station Note: local officials will favour prompt document preparation. 4.2. What permits/licenses would you need to get? All listed in p. 4.1 Is the land purpose line/will be in line with project implementation of hotel construction? Present land purpose Not occupied Future land purpose Construction Issued Valid till Notes
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4.3.
What land rights have you hot at the moment?: Right Land ownership Given by? Ministry of Defence When? 2007 2007 Valid till permanently permanently Note Owner Artemivsk municipal administration Owner Artemivsk municipal administration
Building ownership Ministry of Defence
4.4.
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Land territory is in constant use of Artemivsk municipal administration.

1. 2. Name of juridical person/physical person-entrepreneur: Artemivsk municipal administration. Address, phone/fax number, e-mail address, other contacts: 44, Artema str., Artemivsk, Donetska oblast, Ukaine. Ph: +38(0627)440395; www.artemrada.gov.ua, art_register@ukr.net 3. 4. Date of foundation (for juridical person): 21.05.1997 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 04052732 Extract from EDRPOU is in the annex of this form: no 5. 6. 7. 8. 9. 10. 11. 12. 13. Founders (for juridical person): Governing body: Main activities of Ukrainian partner: Registered capital: no Artemivsk municipal administration city administration no
Are there any daughter enterprises, subsidiaries? no Who is the contact person for this project? Name and contact information: What are his/her functions?: Reva Olexiy mayor of city
What is the investment strategy of Ukrainian partner? construction and operation. Are there currently any contractual relationships on the project? Local officials will favour prompt document preparation. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes, we have (15 foreign partners with foreign capital successfully cooperate with Artemivsk municipal administration). What is your experience in hotel/ tourist/ restaurant business?? 4 city hotels. What is your motivation for implementing this hotel project? Attracting tourists using historic and cultural site of the region.
14.
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1. Total amount: ........................................................1717100 EUR Planning stage (before construction begins: ........257565 EUR Building stage: .................................................... 1459535 EUR: Building costs ................................................858550 EUR. Settlement costs ...........................................600985 EUR. 2. 3. Justification of costs: we are ready to consider all projects proposed by investors. Loan: Foreseen for project in general ............................1717100 EUR Available ..........................................................................EUR Already invested in the project ......................................EUR 4. 5. Note: Local officials will favour prompt document preparation. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 3,5 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? Current repair under request 6. What annual turnover can be expected after completion? What annual turnover will be in the future? 506076 EUR /year (fullness 30%). It can change due to inflation changes in the future. Are you going to establish amortization reserves for operation costs or will the financing be from the current turnover? yes

1. 2. What can you offer to the investor? Land territory, local favouring in solving permission issues. What kind of investor are you looking for? Investor Equity participation ( In the form of LLC or JSC) Significant part of investor (>50 %) Note: we will consider all proposals. 3. What amount should be invested and what are the investors rights in this connection? 100% for construction of hotel complex, investor will be its owner. Should the investments be made directly to Ukraine or via some off-shore companies? No difference Preferred Preferred Objectionable
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V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: tourism, business, sports events, Euro 2012 Average room price for one person After opening 58 EUR. In five years will depend on inflation index. 1.3. What occupancy do you predict? January ....................................80 % February ...................................35 % March .......................................35 % April ..........................................40 % May ...........................................35 % June ..........................................40 % July ........................................55 % August ...................................30 % September ............................80 % October .................................45 % November .............................65 % December .............................60 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: 1. Ukraina hotel. Room number: 107. Hotel classification 2(stars). Average room price: 40. 2. tlantik hotel. Room number:23. Hotel classification: 3 ( stars). Average room price: 50. 3. mega hotel. Room number: 11. Hotel classification: 3 (stars). 2.2. 2.3. Are there some other hotels being built in the near? No What marketing steps are planned for hotel popularization? Own website.........................................................................Yes Cooperation with tourist companies (nights stay) ............Yes Cooperation with tourist companies (budget trips) ..........Yes Cooperation with air-craft companies................................Yes Advertising ........................................Newspapers, tv, internet 2.1. What are the weak and the strong points of the project? Strong points: Political will; developed transport network; presence of tourist sites on the territory. Weak points: 2.2. 2.3. Contact person: insufficient infrastructure level for tourism. Reva Olexiy. Date:11.02.2011 Languages: Name: Date: Languages: Ukrainian, Russian Zhouchenko Iryna. 11.02.2011 Ukrainian, Russian Who is the current contact person for the project?
Who filled in the form? Zhouchenko Iryna.
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I.
1.1. 1.2.
Project Golden Ring of Health, Crimea

Type of project: Name of project: Concept Development of the Recreational Place Golden Ring of Health
2. LOCATION
2.1. 2.2. Location: northwestern part of the city, territory adjacent to Moynaki Lake. Nature of terrain: Moynaki Lake is located within city boundaries. The lake stretches from the south to the north perpendicularly to the sea coastline and forms a rectangle 1.85 km long, 840-890 m wide, having an area of 1800 thousand square meters. The length of the whole coastline equals approximately 6 km. Curative muds, Moynaki Lake brine, thermal springs, mineral waters, shady trees in the park and the air infused of healingl steppe herbs all these turned Yevpatoria into first-class climatic and spa health resort. The general plan of the city development by 2025 stipulates the integrated development of the territory around Moynaki Lake. Sector . The zone of natural landscapes The territory of the recreational forest is attractive for those who prefer dispersed radiation to the bright sun. The sunbeams penetrate through the openwork of crowns of the spread trees. The flows of the fresh air enriched with the iodic fumes of the coastal salt lake mix with the aroma of the park flowers and the resinous smell of the coniferous trees. Air in the park comprises a salubrious mixture and breathing it is quite useful for treatment of the respiratory apparatus diseases. The concept stipulates: 1. Beautification of the recreational forest, equipping of the walkways and health paths. 2. Creation of the infrastructure for the short-term rest in the countryside, spending the leisure time and doing sports. 3. Setting up the sports grounds, bicycle and runners paths, including also devices for moving in the wheelchair. 4. Opening of the car park. Territory of the beach zone: development of salutary beaches. Sector B. The zone of sanatoria and health resorts. The concept stipulates: 1. Construction of recreational objects. 2. Construction of two therapeutic and recreational thermal complexes: SPA centers with the stream, massage and hydromassage rooms, swimming pools and balneological sections using the thermal water of the wells No. 3 and No. 4; building of the servicing institutions. 3. Reconstruction and modernization of Moynaki Mud Treatment Center in accordance with the Concept adopted by the decision of the Executive Committee of the City Council dd. 12 December 2008 No. 863. 4. Reconstruction and improvement of Rodina sanatorium. 5. Construction of a family recreation center.
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PART 2: INVESTMENT PROJECTS IN UKRAINE Golden Ring of Health
6. Construction of servicing institution which will comprise a first-aid emergency station, office of sporting equipment rent, retail outlets. 7. Reconstruction of high-voltage substation. 8. Improvement sewage-pump station of the third boost and water-supply pump hole No. 10. Green plantations. Small green plantations. Sector C. The zones of sports institutions of the health-resort zone. The concept stipulates: 1. Construction of sports buildings: sports-entertaining center; stadium; swimming pool; fitness center; sports center for sports games.
2. Reconstruction with enlargement of tennis courts. 3. Reconstruction of the sports hall for sports games. 4. Construction of open sports grounds for mini-golf, basketball, volleyball, badminton, trainings in tourism technics, handball, as well as for obstacle course, alpinist walls, etc. 5. Construction of a recreational center. Technical and engineering infrastructure: improvement of water-pressure station; improvement of water-supply pump hole No. 4. Parkland: improvement of Moynaki park and construction of terraces; improvement of woodland park, of park area neighboring with sanatorium-and-spa institutions. Territory of the beach zone: development of salutary beaches; allocation of retail outlets; construction of 7 bath-houses along the salutary beach of Public Utility Company Panatseya, sports city and sports grounds. Distance from: Centre of the city: ........................3.0 km Nearest airport: ............................50 km Nearest railway station: ..............2.5 km Autobahn: ......................0.01 0.02 km 2.3. Traffic (Means of mass transport): Bus ......................................................Yes Tram.....................................................Yes Fixed-run taxi ......................................Yes Commentary: there are two-way hard-surface city highways from the tree sides of Moynaki Lake. Pipelines and networks: Electric power .....................................Yes Gas ......................................................Yes Drinking water ....................................Yes Sewage water .................................... Yes
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2.4. Map:
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2.4.
Main Conclusions. The Concept suggested for considering will make it available to utilize more efficiently the potential available in the city, to create the health resort infrastructure while saving natural resources. In terms of recreation, the territory around Moynaki Lake is little-developed. Thus, taking into consideration the peculiarities of natural therapeutic factors of the lake and potential for development will help to create a positive marketing strategy of implementation of efficient means of attracting investments for promoting both Recreational Place Golden Ring of Health and the whole city in general. The strategic plan of Yevpatoria city development stipulates the year-round functioning of the resort, with the main role of the treatment institution played by Moynaki Mud Treatment Center, on the basis of which the creation of a modern all-resort centre for medical rehabilitation of children and adult is planned. Available free areas around Moynaki Lake will make it possible to create SPA centers, hotels and sports buildings which will enable people to combine treatment, rehabilitation, health improvement, recreation and sporting events all over the year. The concept has been developed by employees of the Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council. Contact telephone number: +38 06569-445-15 Telephone/fax: +38 06569-445-14 Contact person: Zoya Nikolaievna Povshenko, Deputy Head of Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council, Head of Section for Strategic Planning and Investment Policy.
54
I.
1.1.
Project Kalamitska Bay, Crimea

Name of project: The Innovation Way of Revival of the Marine Traffic in Kalamitska Bay of the Black Sea as an Efficient Mechanism of Formation of Logistic Network and Tourist Infrastructure in the Crimea The years 2012 2015.
1.2.
Terms of project implementation:
2.
2.1. 2.2.
LOCATION
Location: Nature of terrain: City of Yevpatoria, Kalamitska Bay Centre of the city
Commentary: Kalamitska Bay, or rather part of it, is a cosy place for moorage, Yevpatoria bay with depths up to 10 metres bulged-in into sloping sandy banks almost by 1.5 kilometres. 2.3. Distance from: Centre of the city: .....................2.0 km Nearest airport: ..................... 50.0 km Nearest railway station: ...........1.0 km Autobahn: ................................0.01 km 2.4. Traffic (Means of mass transport): Tram ...................................Yes 0.3 km Fixed-run taxi .....................Yes 0.1 km 2.5. Map:
55
PART 2: INVESTMENT PROJECTS IN UKRAINE Kalamitska Bay
PART 2: INVESTMENT PROJECTS IN UKRAINE Kalamitska Bay
3. QUALITY OF CONSTRUCTION AND TECHNICAL EQUIPMENT

3.1. What has been stipulated as a foundation for construction? (e.g. reinforced concrete framing, cottage, country house, etc.) The length of the city coast line is 11.5 km, the total length of the sea coast line from the western border of the city to the eastern one including Zaozerne village is 23.95 km. There are 11 passenger piers on the shore of Yevpatoria which need reconstructing and repairing, 4 passenger piers are totally destroyed and need new constructing. 3.2. 3.3. Type and condition of technical equipment (e.g. using of renewable energy sources, recycling of sewage water, etc.): Characteristics: Type Electric power Gas Drinking water Sewage water Number Condition Yes Yes Yes Yes Description
II. FINANCING OF THE PROJECT

1. Total capital: UAH 1.5 million The concept has been developed by employees of the Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council. Contact telephone number: +38 06569-445-15 Telephone/fax: +38 06569-445-14 Contact person: Zoya Nikolaievna Povshenko, Deputy Head of Main Division for Investment Policy and Foreign Economic Relations of Yevpatoria City Council, Head of Section for Strategic Planning and Investment Policy.
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I.
Project Prague Hotel, Kyiv HHHHH

Type of project: Name of project: Term of project implementation: Type of hotel: Number of rooms:130 Room category: Single / Double / Suite / Apartments Single - 200 EUR Double - 300 EUR Suite - 350 EUR Apartment - 500 EUR Approximate price (room price for one person): Reconstruction and completion of Prague Hotel Prague hotel Approximately 3 year of reconstruction Tourist, boutique hotel, business
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7.
1.8.
The hotel can offer the following facilities: Restaurants: 2 Conference-hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency exchange
1.9.
Restaurant: Type 1. Main 2. Total number of seats 130 70 Cuisine National Mediterranean Price 20 EUR 20 EUR Interior Modern design Modern design Other
1.10. Conference-hall: Type Total number of seats 1. Conference-hall 150
Quality
Price
Interior Modern design and high quality decoration.
Technical equipment All necessary conference equipment
1.11. Fitness centre: foreseen Note: All necessary latest equipment
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PART 2: INVESTMENT PROJECTSPlaza hotel complex 4* Crowne IN UKRAINE Prague

2. LOCATION
2.1. 2.2. 2.3. 2.4. 2.5. Place characteristics: Distance to: City centre Note: central part of Kyiv downtown City centre:...............................................0 km The nearest airport: ........................... 30 km The nearest railway station: .............. 3 km Highway: .............................................. 3 km 2.6 Transport connections ( types of public transport): Underground: .............................+ Yes 0,2 Bus/Trolleybus ...........................+ Yes 0,2 Tram ...........................................+ Yes 3,0 Route taxi ...................................+ Yes 0,1 Map: Address Kyiv GPS-coordinates: 5002659.58 north langitude, 3003052.32 east longitude.

3.1. What is the base of building? Ferroconcrete construction. Technical information: 3.2. 3.3. 3.4. Building ground: declined Number of storeys: 7 before reconstruction/ 9 after Building/decoration characteristics: Adjusting buildings, unique faade of architecture value. Type and state of technical equipment: Use of innovative heating technologies.
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3.5.
Features:
Type Electricity Gas Drink water Waste water Amount Status Description

1. 2. 3. 4. 5. Name of juridical person/physical person-entrepreneur: Private joint stock company -apital Address, phone/fax number, e-mail address, other contacts: 36A, Volodymyrska str., Kyiv Ukraine 01034 Date of foundation (for juridical person): 10.11.2003 . Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 32735854 Yes No Extract from EDRPOU is in the annex of this form Founders (for juridical person): HARVEST SNVESTMENTS SOLUTIONS LIMSTED 6. 7. Governing body : General meetings of shareholders, Head of the Board Main activities of Ukrainian partner Real estate rent Hotel activities Other financial support 8. 9. 10. Registered capital: + paid-in: 7370 000 hrvn. Are there any daughter enterprises, subsidiaries? No Who is the contact person for this project? Name and contact information : Shklyarouk Igor 5-7, Studentska str. Kyiv 04050 ph. +38(044) 5869809, mob.+38(098)7868686 e-mail: truskavec@gmail.com 11. 12. 13. What is the investment strategy of Ukrainian partner? Shareholding and management. Are there currently any contractual relationships on the project? Architecture contracts. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes. Building and hotel and office operating in Kyiv and Truskavets. What is your experience in hotel/ tourist/ restaurant business?
14.
59

15.
Management of hotel and resort complex JSC Truskavetskurort that includes resorts, villas and medical facilities. (www.truskavetskurort.ua). What is your motivation for implementing this hotel project? Business expansion and financial results.

1. Total amount: Planning stage (before the start of construction) Building stage 50 000 000 EUR Building costs_____EUR Settlement costs _____EUR 2. 3. Justification of costs: (table with all important cost figures) Equity: Foreseen for project in general: Market land value 30 000 000 EUR Available 0 EUR Already invested in the project EUR 4. Loan: Foreseen for project in general: 0 EUR Available 0 EUR Already invested in the project 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 8-10 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? 1. Municipal costs (heating, electricity, water) 2. Wages (with benefits) 3. Food 4. Costs for servicing (repair, maintenance, administrative costs, marketing, business) 5. Manufactured goods. 6. What annual turnover can be expected after completion? What annual turnover will be in the future? 11 000 000 EUR Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover. EUR EUR
60

1. What can you offer to the investor? shareholding property ownership management for a fee loans secured by the project. 2. 3. What can you offer to the investor? Investor Preferred Equity participation (In the form of LLC or JSC) Significant part of the investor (>50 %) Easy part of the investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architecture/engineering company 4. 5. What amount should be invested and what are the investors rights in this connection? The rights of investor are according to the investment amount. Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine Off-shore companies No difference
V. MARKET ANALYSIS
1. GUESTS
1.1. Target client group: foreign tourists, Ukrainian citizens coming from other cities to Kyiv, businessmen etc. Average room price for one person: After opening - 200 EUR In 5 years - 230 EUR 1.2. What occupancy do you predict? January ------------------------------------80 % February -----------------------------------60 % March ---------------------------------------55 % April ------------------------------------------65 % May -------------------------------------------80 % June ------------------------------------------80 % July .................................... 80 % August ............................... 80 % September ........................ 65 % October ............................. 55 % November ......................... 50 % December ......................... 70 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: Radisson SAS, Xyatt Regency, InterContinental. Are there some other hotels being built in the near? Yes, Hilton hotel. What marketing steps are you planning for hotel popularization? Own website ......................................................................Yes Cooperation with tourist companies (night stays) .........Yes Cooperation with tourist companies (budget trips) .......Yes Cooperation with aircraft companies ..............................Yes Advertising .....................................newspapers, tv, internet GDS systems, tourist portals, on-line booking systems Corporative clients POST-terminals 2.3. What are the weak and the strong points of the project? Strong points: 1. Location in the historical and business centre of Kyiv. 2. Active development of the market of hotel services in Kyiv. 3. Construction of the new building with unique faade, parking available, convenient entry roads. 4. Hotel capacity and infrastructure according to the standards of international hotel operators. 5. On-line booking via GDS, ADS, IDS-systems and thus creating the base of clients all over the world. 6. Experience in sale of services and forming client bases; 7. Professional management; Weak points: 1. A big amount of investment; 2. Involving of loans decreases the level of financial independence and liquidity of the enterprise; 3. High competitive level. 2.4. Contact person: Igor Shklyarouk e-mail: truskavec@gmail.com mob.+38(098)786-86-86 2.5. Who filled in the form? Name: Date: Languages: Name: Date: Languages: Igor Shklyarouk 03.02.2011 English, Ukrainian, Russian. Igor Shklyarouk 03.02.2011 English, Ukrainian, Russian.
Who is the current contact person of the project?
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I.
Project Crowne Plaza Hotel, Kyiv HHHH
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. Type of project: Name of project: Term of project implementation: Hotel classification (stars): Type of hotel: Number of rooms: Room category: Construction Crowne Plaza hotel complex 4* Construction starts in the first quarter of 2011. Operating from the 3rd quarter of 2012. First class (****) business - hotel 225 Single, Double, Suite, Apartments Restaurant, bars: 3 Conference-hall: 2 Business-centre Parking Beauty salon Shops 1.10. Restaurant: Type Number of seats 45 60 50 Number of seats Quality Price Interior Movable partitions Movable partitions Technical equipment Cuisine Price Interior Other 1. Restaurant (main hall) 2. Restaurant (buffet) 3. Lobby-bar 1.11. Conference-hall: Type 1. Conference-hall, 519 sq.m. 2. Conference-hall, 248 sq. m.
Approximate price (room price for one person): verage room cost 242 Euro The hotel can offer the following facilities:
2. LOCATION
2.1. 2.2. 2.3. Address: a corner of Korolenkivska str. (16-20, 22) and Fizkultury str. (23, 30). GPS-coordinates: Latitude: 50.43154093298215 Longitude: 30.50830364227295. Place characteristics: Business-centre
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PART 2: INVESTMENT PROJECTS IN UKRAINE hotel complex 4* Crowne Plaza Crowne Plaza
PART 2: INVESTMENT PROJECTS IN UKRAINE Crowne Plaza
2.4.
Distance to:
City centre: ....................................... 2 km The nearest airport: ...................... 34 km The nearest railway station: ........ 2,1 km Highway: ........................................... 50 m
2.5.
Transport connections (types of public transport): Underground ............................Yes 600 m Bus/Trolleybus ...........................es 300 m Route taxi ................................Yes 300 m
2.6.
Map:

3.1. What is the base of building? Ferroconcrete construction. Technical information: 3.2. 3.3. 3.4. Building ground: soil Number of storeys: 17-storey building
Building/decoration characteristics: Glass-fronted hotel is connected to the office building and parking by the stylobate. Type and state of technical equipment: The hotel will be equipped in line with the latest energy-saving and renewable technologies. Features: Type A. Electricity B. Gas C. Drink water D. Waste water Amount 2 W 1,5 W 100 m3/day 100 m /day
3
Status -
Description Urban network Urban network Urban network Urban network
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4.1. What permission for construction/licenses do you have? Type Project of the land use Project documentation State expertise Sanitary epidemiological station Fire safety Permit to preparatory works Issued + + + + + + Valid till Notes
Note: Construction permit will be given in April 2011 when the capital contruction begins. Preparatory works are being carried out at the moment. 4.2. Is the land purpose in line/will be in line with project implementation of hotel construction? Yes, it is Present land purpose: 4.3. Construction of commercial and office complex with Crowne Plaza hotel complex 4* Issued by? Kyiv state municipal administration Kyiv state municipal administration When? 24.09.2010 25.12.2010 Valid till Note Purchase and sale contract Land lease contract (with amendments for 0, 18 hector of adjusting territory.)
What land rights have you got at the moment? Right Land ownership Building ownership Land leasing
Building leasing

1. 2. Name of juridical person/physical person-entrepreneur: Confidential information not to display. Who is the contact person for this project? Name and contact information: Anisimova Anna, ph.+38(044)287-14-47, fax: +38(044)284-04-10 Position: Deputy Director General. 3. 4. 5. 6. What is the investment strategy of Ukrainian partner? Building of modern hotel complex Crowne Plaza to generate profit. Are there any current contractual relationships on the project? InterContinental Hotels Group will be governing the hotel. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? My colleagues were dealing with reconstruction of Holosijivskyi and Irpin Conference Hall hotels and their further putting into operation. 7. What is your motivation for implementing this hotel project? Eagerness to create a modern business-type hotel in Kyiv.
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1. Total investment: 43 354 271 EUR Planning stage (before the start of construction) - 3 313 740 EUR Building stage 31 858 930 EUR Building costs Settlement costs: 3 225 945 EUR Purchase of land (1,4 hectors) 6 166 356 EUR Costs related to project management 2 015 245 EUR 2. 3. Justification of costs: (table with all important cost figures) Table containing details costs is a part of business plan and can be given at the first request. Equity: Foreseen for project in general: 10 156 615 EUR Available - 10 156 615 EUR Already invested in the project 7 542 205 EUR Note: Equity rest will be invested till the end of the first quarter of 2011. 4. Loan: Foreseen for project in general: 33 197 656 EUR Available - 0 EUR Already invested in the project - 0 EUR 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 10 years since being put into operation What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? Total current production costs will be 35 per cent income. Operation and marketing/ management costs 23 per cent income. 6. What annual turnover can be expected after completion? What annual turnover will be in the future? For the first two years after completion we expect an annual turnover of 5-6,2 million Euro. Further it will be the annual turnover of 7-7,5 million Euro. Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? All operation costs will be financed from amortization reserves.

1. 2. What can you offer to the investor? Making the investment agreement. What amount should be invested and what are the investors rights in this connection? Investor is suggested to invest the whole amount of attracted capital that is 33 197 656 EUR or some part of it but no less than 20 per cent. Investor will gain the right for profit since the hotel is put into operation.
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3.
Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: Business-tourists, persons attending conferences and other mass events, tourists. Average room price for one person: Since opening 242 EUR In 5 years 274 EUR 1.3. What occupancy do you predict? 1 year .......... 65 % 2 year .......... 68 % 3 year ...........71 % 4 year .......... 75 % 5 year .......... 79 % 6 year .......... 83 % 7 year .......... 83 % 8 year .......... 83 % 9 year .......... 83 % 10 year ........ 83 %
2. COMPETITIVENESS
2.1. Please describe three nearest hotels: Premier Palace 5* hotel Address: 5-7/29, bulvar Shevchenka Opening Year: 2005 The hotel is location in the business and cultural centre of Kyiv, capacity -289 rooms. Infrastructure: 2 restaurants, 3 bars, cafe, 3conference-halls, shops, fitness club, business centre, underground parking, beauty salon. Strong points: Weak points: Opera 5* hotel Address: 53, Khmelnytskogo str. Opening year: 2006 The hotel is located in the centre of Kyiv, capacity - 138 rooms. Infrastructure: restaurant, 2 bars, 6 conference-halls, beauty salon, parking, fitness centre, Strong points: Weak points: Relates to association Leading hotels of the world Very high tariffs. Relation to Premier Palace hotel chain. Location in the city centre. Very high tariffs.
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Natsionalnyi4* hotel Address: 5, Lypska str. Opening year: 2003 . "Natsionalnyi" hotel is located in the downtown Kyiv, capacity - 85 rooms. Infrastructure: restaurant, bar, conference-hall, hairdressers, shop. Strong points: Convenient location; Recently reconstructed; Provides reception of official delegation of Ukrainian government. Service and rooms
Weak points: 2.2. 2.3.
Are there some other hotels being built in the near? Yes, Holiday Inn 4*hotel, operator of InterContinental Hotels Group. What marketing steps are you planning for hotel popularization? Own website........................................................... Yes Cooperation with tourist companies .................... Yes Cooperation with aircraft companies .................. Yes Advertising .......................... newspapers, tv, internet Operator of InterContinental Hotels Group will be carrying out marketing and PR, and implement specially elaborated programme that is to start one year before the opening; The hotel will be included to the programme Priority Club Rewards the most widespread programme of clients loyalty with 48 million users.
2.4.
What are the weak and the strong points of the project? Strong points (Advantages) Good location in the Kyiv downtown. Cooperation with InterContinental Hotels Group. Included in the state list of objects of target programme for Euro-2012 preparations Stage of completion of project works, own investments. Resolved land issues Strong external points (opportunities) Restricted number of category 4* hotels. Exemption from income tax for 10 years. Well-known brend Crowne Plaza. Weak external points (threats) Political and legislative risks that can decrease activity and attractiveness for business. Increasing competition. The threat of the second wave of the global recession. Weak internal points (Risks) Working volume
2.5.
Who filled in the form? Name: Anisimova Anna, Date of filling-in: 25.01.2011 Languages: Ukrainian, English. Who is the current contact person of the project? Name: Anisimova Anna, Date of filling-in: 25.01.2011 Languages: Ukrainian, English.
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I.
1. 2. 3. 4.
Project Lytvynovka, Kyiv HHHH

Type of project: Name of project: Construction Multi-functional resort complex LITVINOVKA Entertainment. 2 years First class (****)
Term of project implementation: Hotel classification (stars):
Type of hotel: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc). Number of rooms: Room category: 250 + 12 Single, Double, Semi-suite, Apartments
5. 6.
Note: 100 standard rooms ( 25 sq.m. each), 150 semi-suite (50 sq.m.), 12 bungalow apartmaents (175 sq.m. each) .7. Approximate price (room price for one person): Single .................170 $ Double ...............220 $ Semi-suites ......300/350 $ (one person/two persons) Apartments ......- 450 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 8. The hotel can offer the following facilities: Restaurants: 3 Conference halls: 3 Swimming pool: is foreseen in the resort complex near the hotel Fitness centre: 1 Sauna: is foreseen in the resort complex near the hotel Medical care: 1 Business centre: 1 Parking: 30 + 1500 resort complex Currency exchange Note: As the hotel relates to the resort complex some hotel facilities are provided there in the resort complex. 9. Restaurant: Type 1. Restaurant buffet 2. Restaurant a la carte 3. Lobby-bar a la carte Number of seats 250 Cuisine European and Ukrainian national European and Ukrainian national Starters, alcohol and non-alcohol drinks Price Average 25$/for one person Average 34- 40$/for one person Average 25$/for one person Interior Standard for the four star restaurant Standard for the five star restaurant Standard for the four star hotel Other
60
100
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PART 2: INVESTMENT PROJECTS IN UKRAINE Lytvynovka
10.
Conference-hall: Type Number of seats 1.Conference-hal 2. Conference-hall 3. Conference-hall 130 130 130
Quality Class Class Class
Price 25$/m
2
Interior
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc). All necessary conference equipment including speaker microphones and LCD-monitors.
25$/m2 25$/m2
Conference service will include a business centre and three conference hall (100 sq.m.each) with possible connection into one big hall. Also there will be used a complex arena for conference purposes during bigger events. 11. Fitness centre: Note: Fitness centre will be located in SPA-centre (connected to hotel with glass tunel), equipped according to the latest technologies, free for hotel guests. Location 12. 13. 14. 15. Address: Litvinovka village, Vyshgorodsky region, Kyivska oblast GPS-coordinates: 5072'40'' north langitude 3022'36'' east longitude Place characteristics: Suburbs Distance to: City centre: ..................................... 40 km The nearest airport: : .................. 80 km The nearest railway station: ........ 46 km Highway: ....................................... 7,6 km 16. Transport connections ( types of public transport): Route taxi ................................ Yes 0,5 km Note: Easy to get by straight entry 17. Map :
Note: Object is located on 19,6 h territory 35km from Kyiv in the most picturesque place of Ukraine.
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18.
What is the base of building? Construction and settlement will be done in accordance with all norms and requirements. Architecture and planning elements should be in line with DBH .2-9-99 requirements. It is plan to use concrete, metal and glass construction and other high quality and ecologically clean materials. Technical information: Building ground: Number of storeys: 15000 m2 + 8000 m2 hotel -5, bungalow-1
19.
Building/decoration characteristics: Multifunctional suburban resort complex of sports , entertaining and healing destination implies zone organization of land territory, where all infrastructure objects are business units intended for specific use of clients. Resort-recreational zone of the complex includes the hotel complex of unique design, family bungalow, SPA-complex, restaurant complex, classical bath complex, swimming pools and safari parks with alleys for warking. Sports-entertaing zone implies availability of multifunctional arena, tennis club, football pitch and all-year ski facility.
20.
Type and state of technical equipment : It is planned to used of renewable energy sources and latest technology that provide environmental protection.
21.
Features: Type Electricity Gas Drink water Waste water Quantity N/A* N/A* N/A* N/A* Status Supply chain in the territory Supply chain in the territory Supply chain in the territory Supply chain in the territory Description N/A* N/A* N/A* N/A*
* these date will be known while preparing project documentation.

2. What permission for construction/licenses do you have? Type Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station Fire satety Note: This project is included in the preparatory programme on EURO-2012, which simplifies the system of obtaining permits. Issued by Valid till Notes Initial documents prepared, project is not approved yet Pre-documentation available
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3.
What permits/licenses would you need to get? The project of land us should be approved, we also miss the state expertise, the construction permit, permit from Sanitary epidemiological station, the fire safety permit, and licenses for organization of accommodation facilities.
4.
Is the land purpose in line/will be in line with project implementation of hotel construction? Present land purpose Individual gardening Future land purpose Partially individual gardening, partially commercial use Given by? When? Valid till Notes
5.
What land rights have you got at the moment?: Right Land ownership Building ownership Land leasing Building leasing Long term contract on leasing of 70 hectors of adjusting territory for organization of safari-park (till ). Other Land territory is in permanent property (State act on the property right of the land territory 708434).
6.
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land?

1. 2. Name of juridical person/physical person-entrepreneur: OJSC Euroholding Invest Address, phone/fax number, e-mail address, other contacts: 16, Hlybochitska str, Kyiv Ukraine 04050 ph/fax: (044) 484-46-20 office@euroholding.com.ua www.euroholding.com.ua 3. Date of foundation (for juridical person): 1995 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 19263630 4. Extract from EDRPOU is in the annex of this form No Founders (for juridical person): KharchenkoVyacheslav Governing body: Chairman of the Board and general meeting of shareholders 5. Main activities of Ukrainian partner Euroholding Invest is the leading company of group of companies in different spheres of Ukraine: real estate, professional sports, fashion, trade, transport facilities. The company has the right on the territory of Ukraine to conduct activities on organization of construction and support of investment projects. 6. Registered capital: paid-in:
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7.
Are there any daughter enterprises, subsidiaries? Yes Euroshina Ltd..................................................................www.euroshina.com.ua Anna Bublik fashion house...............................................www.annabublik.com urobud ............................................................................ www.euro-bud.com.ua urotextile Ltd .................................................................... www.euro-textile.com Ukrainian postal systems Ltd ..................................................www.uaps.net.ua Tire.ua Ltd .......................................................................................... www.tire.ua
8.
Who is the contact person for this project? Name and contact information: Grankin Vladyslav, mob: +38 (067) 509 60 62 vlgrankin@euro-bud.com.ua What are his/her functions? Finance director
9.
What is the investment strategy of Ukrainian partner? Project developing, long-term management with participation of strategic investor. Possible partial or complete object sale. (depending on implementation stage)
10.
Are there currently any contractual relationships on the project? Agreements on architect services (OJSC "Ukrainian zonal scientific reseach institute on civil constructions"), on technical expertise (Horwath HTL, WingField Corporation), pre-agreement with building enterprise of potential general subcontractor Altis Holding
11.
Have you (your colleagues or contractual partner) got previous experience in similar projects? Horwath HTL and WingField Corporation are considered to be the most experienced in implementating similar projects abroad (in particular, park network Centerparcs and many other hotels thoughout the world. Altis Holding and OJSC "Ukrainian zonal scientific reseach institute on civil constructions" are the leading building companies of Ukriane experienced in implementating big infrastructural , commercial and housing project. The latter is not only one of the leaders among project institutes of Ukraine and also a successful leader in unique non-typical projects using latest technologies.
12.
What is your experience in hotel/ tourist/ restaurant business? Holding related Housewille Villa Holidays company is dealing with organization of villa vacations of middle class, premium class and de luxe in Tailand, Italy, Greece, France and others. This experience will be used for this project.. Also promotion company of our holding is dealing with organization of international competitions, reception of sports delegations, stars and vip-guests. Thus our managers are greatly experienced in cooperation with Ukrainian and international hotels, analyzing their level, strong and weak points, advantages and risks. Besides the owner of this project is a business man and spends a lot time on international trips. He was learning and analyzing all exiting propositions on hotel services for many years that help to create this project using the worlds best experience.
13.
What is your motivation for implementing this hotel project Examples of successfully functioning analogue projects all over the world and the need of Ukrainians and citizans of Kyiv primarily in qualitative tourist-entertaining services. The main purpose of project: implementation the first for Ukraine project based on international standard quality, organization of highly profitable business, favourable influence of development of the region and tourism branch of the country.
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1. Total amount: Planning stage (before the start of construction) 1107569 $ Building stage 24621840 $ Building costs 9075690 $ Settlement costs 15546150 $ 2. Justification of costs: (table with all important cost figures):
Average cost of per one sq.m. - 570 $ Cost of design works - 41 $/ sq.m. Settlement costs 794 $/ sq.m. 3. Equity: Capital foreseen for project in general: 10403000 $ Available: 0 Already invested in the project 10403000 $ 4. Loan: Foreseen for project in general: 74263000 $, 26837806 $ Available 0 Already invested in the project 0 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments?
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Note : full payback - 2 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
What annual turnover can be expected after completion? What annual turnover will be in the future? Amortization excluded
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Armotization fund will be established.
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1. What can you offer to the investor? Our fist priority is attracting a strategic investor that will become the main project owner. We can guarantee full payback during two years when investing in the hotel complex and six year full payback when investing in the multifunctional complex. Investor will be able to participate in project management personally or via representatives or to receive profit not participating in project management. Investor will be also suggested various exit strategies. of ( ) , . . 2. What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50%) Easy part of investor (<50%) Management partner Creditor (Loan) Brand partner Building company Architecture/engineering company 3. What amount should be invested and what are the investors rights in this connection? Information above, please see p.1. Investor will be granted the bigger share to own the project. 4. Should investment be made directly to Ukraine or via some off-shore companies? No difference Preferred Acceptable Objectionable According to agreement of the parties
II.
1.
MARKET ANALYSIS
Target client group: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Target group of the resort complex includes: total working population of Ukraine (21,2 million people excluding population of Kyiv); all foreign tourists coming to Ukraine (23,1 million people per year); total working population of Kyiv (1,6 million people).
1. GUESTS
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2.
Average room price for one person: Single 170 $ Double 220 $ Semi-suite 300/350 $ (one/two persons) Apartments - 450 $
Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 3. What occupancy do you predict? January .....................................55 % February ....................................55 % March ........................................55 % April ...........................................60 % May ............................................60 % June ...........................................60 % July ........................................... 65 % August ...................................... 65 % September ............................... 65 % October .................................... 60 % November ................................ 55 % December ................................ 65 %
2. COMPETITIVENESS
1. Please describe three nearest hotels: LITVINOVKA Entertainment is potentially the first multifunctional resort complex in Ukraine. But let us analyze competitiveness of some of its services. We considered the objects with similar to Litvinovka main characteristics, formating principles, positioning, volume capacity and closeness to the object of research.
Koncha Zaspa Boujmerovka Vyshegrad Litvinovka
Glebovka
Dozvillya
Admiral
Lisova
No.
1 2 3 4 5 6 7 8 9 10 11 12
Services
Accommodation (hotel, bungalow) Catering facilities (restaurants, bars) Recreation facilities (SPA) Entertaining infrastructure (casino, bowling) Sports activities (tennis, fishing, football) Water services (swimming pools, sauna) Business services (office, conference hall) Logistics level (class of enterprise) Service level Service multifunctionality (complex servicing) Modern engineering systems (heating, internet) Additional facilities (laundry, parking) Average points
4 1 1 2 1 3 1 2 1 3 2 1 1
1 2 1 2 2 3 0 2 1 2 3 1 1
1 2 0 2 0 4 0 2 1 2 3 2 1
4 5 1 3 4 3 3 4 3 4 4 3 3
4 2 4 5 4 4 4 3 5 4 3 3
4 2 4 2 3 3 4 4 4 4 4 4 3
4 1 1 2 3 0 2 2 2 2 0 3 1
Vorzel
3 2 3 3 4 3 3 2 2 3 1 2 2
5 5 5 5 5 5 5 5 5 5 5 5 5
Source: Horwath HTL research
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2. 3.
Are there some other hotels being built in the near? What marketing steps are you planning for hotel popularization? Own website........................................................................................Yes Cooperation with tourist companies (night stays) ...........................Yes Cooperation with tourist companies (budget trips) .........................Yes Cooperation with aircraft companies ...............................................Yes Advertising ....................................................... newspapers, tv, internet
4. 5.
What are the weak and the strong points of the project? SWOT Analysis of project Strong points Only potential competitors; Closeness to the capital city; Political support due to relation to Euro 2012 State target programme; Wide scope of facilities diversify risks; All seasonable.
6.
Opportunities Reduce in prices for building materials due to economic crisis; Purchase of neignbouring territories (at the moment 16 hector in property); Opportunity to accommodate several football teams during Euro 2012; Forming international brand LITVINOVKA Entertainment and inclusion to national tourist routes; Providing clients with service packages and establishing loyalty programme; Participating in the state support programmes for sports, tourism and youth. Putting into operation during the period of active increase of Ukraines after-crisis economics. Weak points Difficulties to attract financing; The need to conduct highly expensive marketing campaign; The need to change land purpose of part of the object. Short period of time for implementation (before start of Euro 2012); High volume of funds (though typical for the industry). Decrease of population income. Political instability; Non-availability of financial resources during constructing period; Possible Ukraines deprival of hosting Euro 2012.
7.
8.
Risks
9.
Contact person: Grankin Vladyslav, mob: +38 (067) 509 60 62 vlgrankin@euro-bud.com.ua Who filled in the form? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English Who is the current contact person of the project? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English
10.
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I.
1. 2. 3. 4. 5.
Project Obukhiv, Kyiv region HHHH

Type of project: Name of project: New construction Project of hotel (250 persons capacity) with sports resort complex (park of attractions) in Obukhiv, Kyivka oblast. 3 years ( for the whole complex). Hotel classification (stars): First class (****) Type of hotel: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Number of rooms: Room category: 27 + 35 townhouses ( 6 500 m2 ) Single, Double, Semi-suite, Apartments
6.
Note: 20 standard rooms (25 m2 each), 5 (50 m2 each), 2 apartments (130 m2 each) 7. Approximate price (room price for one person): Single 160 $ Double 200 $ Semi-suite 300/330 $ (for one/two persons) Apartments - 440 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 8. The hotel can offer the following facilities: Restaurants: 2 Conference-hall: 1 Swimming: is foreseen in the sports resort complex near the hotel Fitness centre: 1 Sauna: is foreseen in the sports resort complex near the hotel Medical care: 1 Business centre: 1 Parking: 300 Currency exchange: 1 Note: The hotel is a part of the sports resort complex so some of its facilities are provided in the complex premises
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PART 2: INVESTMENT PROJECTS IN UKRAINE Obukhiv
9.
Restaurant: Type 1. Restaurant buffet 2. Restaurant a la carte 3. Lobbi-bar Number of seats 250 60 100 Price Average cheque for one person 25$ European and Average cheque Ukrainian nationanal for one person 35-40$ Starters, alcohol Average cheque and non-alcohol for one person drinks 25$ Cuisine European and Ukrainian national Interior Standard for the four star restaurant. Standard for the five star restaurant Standard for the four star hotel Other
10.
Conference-hall: Type Number of seats 1. Conference-hal 130
Quality Class
Price 25$/m
2
Interior
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc). All necessary conference equipment including speaker microphones and LCD-monitors.
11.
Conference service will include a business centre and three conference hall (100 sq.m.each) with possible connection into one big hall. Also there will be used a complex arena for conference purposes during bigger events. Fitness centre:
Note: Fitness centre will be located in SPA-centre (connected to hotel with glass tunel), equipped according to the latest technologies, free for hotel guests. .
2. LOCATION
2.1 2.2 2.3 2.4 Address: Obukhiv, Kyivska oblast GPS-coordinates: 50 9'11.16" north. latitude, 3040'5.85" east. longitude. Place characteristics : Suburbs .......................... Distance to : City centre : ..................................... 43 km The nearest airport: ........................ 82 km The nearest railway station : ......... 47 km Highway: ............. Right along the highway 2.5 Transport connections (types of public transport): Route taxi .................................. Yes 0,5 Note: Easy to get by the straight entry from the Kyiv-Louhansk road.
Note: The object is located on 3,7 h territory 37km from Kyiv in one of the most picturesque place of Ukraine.
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2.6 Map :

3.1 What is the base of building? Construction and settlement will be done in accordance with all norms and requirements. Architecture and planning elements should be in line with .2-9-99 state bureau requirements. It is plan to use concrete, metal and glass construction and other high quality and ecologically clean materials. 3.2 echnical information: Building ground: 21 670 m2 ( of the whole complex ) Number of storeys: hotel 5, townhouse - 1 3.3 Building/decoration characteristics: The multifunction sports and entertaining resort complex implies formating of separate territory zones in regards with speciality and area relief where all infrastructure objects comprise an ensemble. Resort-recreational zone of the complex includes the hotel complex of unique design, family townhouses, SPA-complex, restaurant complex, a complex of classical baths, indoor sports hall etc. Sports-entertaing zone implies availability of multifunctional arena, tennis courts, mini golf field. 3.4 Type and state of technical equipment: It is planned to used of renewable energy sources and latest technology that provide environmental protection. 3.4 Features: Type Electricity Gas Drink water Waste water Quantity N/A* N/A* N/A* N/A* Status Supply chain on the other territory Supply chain on the other territory Supply chain on the other territory Supply chain on the other territory Decription N/A* N/A* N/A* N/A*
* these data will be available when compiling project documentation.
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4.1. What permits for construction/licenses have you got? Type Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station Fire safety Note: This project is included in the preparatory programme on EURO-2012, which simplifies the system of obtaining permits 4.2 What permits/licenses would you need to get? The Project stage should be prepared according to investors requirements. We also need to obtain the state expertise, the construction permit and licenses for organization of accommodation facilities. 4.3 Is the land purpose in line/will it be in line with project implementation of hotel construction Present land purpose Individual gardening 4.4 Right Land ownership Future land purpose Construction, commercial usage Given by? Private land ownership (State acts for land ownership 449138, 449137, 449136). When? Valid Note Issued State act Valid till Notes Initial documents are fully prepared. Pre-documentation available.
What land rights have you got at the moment?
Building ownership Land leasing Leasing of building Other

1. 2. Name of juridical person/physical person-entrepreneur: Institute for land relations and investment projects LLC Address, phone/fax number, e-mail address, other contacts: 1, Malyshka str., Obukhiv, Kyivska oblast, Ukraine 08700 .+380457251404 3. Date of foundation (for juridical person): 01.03.2007.
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4.
Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations: 34911645 Extract from EDRPOU is in the annex of this form Yes Founders (for juridical person): Serhijenko Olexander and Drachouk Olga Governing body: LLC Director Main activities of Ukrainian partner: Institute for land relations and investment projects LLC is a company making business in the hotel and restaurant sphere. The hotel and restaurant complex Goudvin can serve as a good example of such object.
5. 6. 7.
8. 9.
Registered capital:
paid-in:
Are there any daughter enterprises, subsidiaries?Yes SPA Horizont LLC (Land survey and research) Tedox LLC (Projects and constructions) Brend LLC (Restaurant and entertaining business)
10.
Who is the contact person for this project? Name and contact information: Omeljanenko Valerij , mob: +38 (067)466-87-11, tedox@ukr.net Position: Head manager of the project
11.
What is the investment strategy of Ukrainian partner? Project developing, long-term management with participation of strategic investor.Possible partial or complete object sale. (depending on implementation stage)
12.
Are there any current contractual relationships on the project? Agreements on architect services (" -III "LLC ) and with building company Tedox(potential general contractor).
13.
Have you (your colleagues or contractual partner) got previous experience in similar projects? Our colleagues developed and implemented projects on cottage cities: Sonychyi bereg, Sosnovyi bor, Grin-Zund and Karolina. They are also experienced in construction of micro regions, for instance, in Obukhiv, Vyshgorod, Ukrainka, Kagarlyk and Boguslav. What is your experience in hotel/ tourist/ restaurant business? Institute for land relations and investment projects LLC has four year experience in hotel and restaurant business.
15.
What is your motivation for implementing this hotel project? Increase in Ukrainian demands for high quality hotel and entertaining services greatly motivates us in constructing complex that will provide high standard services on accommodation and entertainment on the territory of Kyiv region.
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1. Total investment: Planning stage (before the start of construction) 1 137 500 $ Building stage 14 716 150 $ Building costs 5 990 000 $ Settlement costs 8 726 150 $ 2. Justification of costs: (table with all important cost figures
Average price for one square meter 650 $ Costs for design works 42,0 $/ sq. m. Settlement costs 980 $/ sq.m. 3. Equity: Foreseen for project in general: 2 100 000 $ Available 0 Already invested in the project 2 100 000 $ 4. Loan: Foreseen for project in general : 52 797 500 $, for constructing hotel complex Available 0 Already invested in the project 0 5. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? Note: full payback of the complex in 7,5 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)?
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Operating expenditure of the Project Food and alcohol drinks Materials Staff wages Charges for FOP Advertising Transport expenses Municipal expenses Administrative expenses Total operating expenditure 6.
Total for 8 years $2 151 528,48 $4 331 800,50 $4 315 720,00 $1 627 026,44 $18 300,00 $48 000,00 $181 832,00 $159 936,00 $12834 143,42
Share in total expenditure 16,8% 33,8% 33,6% 12,7% 0,1% 0,4% 1,4% 1,2% 100%
What annual turnover can be expected after completion? What annual turnover will be in the future? Amortization excluded Income Restaurant Hotel sector Townhouses Roller-drom/ disco Bar Billiards Rent of conference halls etc. Fitness SPA services Mini-golf Mini-football Tennis Commercial premises rent Total Total for 8 years $11 330 346,43 $2 789 640,00 $5 898 900,00 $7 641 720,00 $3 769 908,00 $603 720,00 $1 624 912,00 $24 598 800,00 $57 088 950,00 $728 960,00 $1 122 000,00 $406 320,00 $1 537 500,00 $119 141 676,43 Total income share 9,51% 2,34% 4,95% 6,41% 3,16% 0,51% 1,36% 20,65% 47,92% 0,61% 0,94% 0,34% 1,29% 100%
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Armotization fund will be established.

1. What can you offer to the investor? Our fist priority is attracting a strategic investor that will become the main project owner. We can guarantee full payback during two years when investing in the hotel complex and six year full payback when investing in the multifunctional complex. Investor will be able to participate in project management personally or via representatives or to receive profit not participating in project management. Investor will be also suggested various exit strategies.
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2.
What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architecture/engineering company Preferred Acceptable Objectionable According to agreement of the parties
3.
What amount should be invested and what are the investors rights in this connection? Information above, please see p.1. Investor will be granted the bigger share to own the project.
4.
Should investment be made directly to Ukraine or via some off-shore companies? No difference
V. MARKET ANALYSIS
1. GUESTS
1.1 Target group: First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Target group of the resort complex includes: total working population of Ukraine (21,2 million people excluding population of Kyiv); all foreign tourists coming to Ukraine (23,1 million people per year); total working population of Kyiv (1,6 million people). 1.2 Average room price for one person: Single .............................................................160 $ Double ...........................................................200 $ Semi-suite ...... 300/330 $ (for one/two persons) Apartments................................................. - 440 $ Note: Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%. 1.3 What occupancy do you predict? January .....................55 % February ....................55 % March ........................55 % April ...........................60 % May ............................60 % June ...........................60 % July .....................................65 % August ................................65 % September .........................65 % October ..............................60 % November ..........................55 % December ..........................65 %
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2. COMPETITIVENESS
2.1. Please describe three nearest hotels: The project of hotel with 250 person capacity is a unique opportunity of constructing comfortable zone for active sports and entertainment taking into account all weak points of similar objects on the Dnipro river near Kyiv. No. 1 Name of object Visit hotel complex Location Obukhiv region. located on the Kozynka river 29 km from Kyiv. Facilities On the territory: - parking; - 35 rooms; - sauna, swimming pool; - mangal spot Facilities:- billiards; - caf, bar. Business facilities: - conference hall for 25-30 persons. On the territory: - a building for 20 persons; - a wooden building for 16 persons; - Fire place hall; - several types of sauna; - bath complex. Business facilities: - conference hall. On the territory: - a building for 176 persons. Facilities: - football, volleyball; - big tennis, basketball; - paintball. Business facilities: - conference hall. - Restaurant with European cuisine. - Large summer terrace. - Hotel of 13 rooms. - Outdoor games: chess, darts, cricket, badminton, , mini-football, table tennis. - Event organization for children. - hotel of 22 rooms , Louhansk highway. - SPA-centre, - restaurant, - conference hall.
Yaryna resort centre
yivska oblast, Obukhiv region, 33 km from Kyiv
Dozvillya vacation complex
Koncha Zaspa Located on the 9 acre territory.
Love and hunger tavern
Obukhiv region. 28 km along new Obukhiv highway Pidgirtsi village
Trypillya suburban restaurant and hotel complex
Obukhiv region. Located on a 1 acre territory 27km from Kyiv
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2.2 2.3
Are there some other hotels being built in the near? no What marketing steps are you planning for hotel popularization? Own website........................................................................... Yes Cooperation with tourist companies (night stays) .............. Yes Cooperation with tourist companies (budget trips) ............ Yes Cooperation with aircraft companies .................................. Yes Advertising .......................................... newspapers, tv, internet
2.4
What are the weak and the strong points of the project? SWOT Analysis of project Strong points Only potential competitors; Closeness to the capital city; Wide scope of facilities diversify risks; All seasonable Opportunities Reduce in prices for building materials due to economic crisis; Purchase of neignbouring territories (additional ownership of 1,0 acre territory); Providing clients with service packages and establishing loyalty programme; Participating in the state support programmes for sports, tourism and youth. Putting into operation during the period of active increase of Ukraines after-crisis economics. Weak points Difficulties to attract financing; The need to conduct highly expensive marketing campaign. High volume of funds (though typical for the industry). Risks Decrease of population income. Political instability; Non-availability of financial resources during constructing period;
2.5 2.6
Contact person:
Omeljanenko Valerij , mob: +38 (067)466-87-11, tedox@ukr.net
Who filled in the form? Name: Omeljanenko Valerij Date: 09.02.2011. Languages: Ukrainian, Russian, Spanish Who is the current contact person of the project? Name: Omeljanenko Valerij Date: 09.02.2011 . Languages: Ukrainian, Russian, Spanish.
2.7
Other There is a detailed business plan with all necessary calculations for this project. It is possible to add water sports facilities to this project as there is a beautiful site of Stougna river shore overlooking the Dnipro , or some other services according to the investors wishes.
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I.
1.1. 1.2. 1.3. 1.4.
Project Glybochychka, Kyiv region HHH

Type of project: Name of project: Term of project implementation: 1st quarter of 2012 (depending on start of financing). Building period and putting into operation - 2 years. Hotel classification (stars): Middle class (***) 250 Single / Double / Suite
2
Construction Construction of the three-star hotel at 16, Hlybochitska str.
1.5. 1.6. 1.7.
Type of hotel: business, tourist, for long staying period. Number of rooms: Room category:
Note: 100 single rooms (25 m each), 100 double rooms (50 m2), 50 suites (100 m2 each). Each category will also have subcategory (standard, medium comfort, business class). 1.8. Approximate price (room price for one person): Single 90-115 USD Double 120-170 USD Suite 185-380 USD 1.9. The hotel can offer the following facilities: Restaurants: 2 restaurants, 2 bars Conference-halls - 2 Swimming pool - 1 Fitness centre 1 Sauna - 1 Medical care 1 Business centre - 1 Parking 200 cars Currency exchange Note: Office centre can be added to hotel facility structure. 1.9. Restaurant: Type 1.Restaurant buffet 2.Restaurant a la carte 3. Coffee-bar Number of seats 250 Cuisine European and Ukrainian traditional European and Ukrainian traditional Starters, alcohol and non-alcohol drinks Starters, alcohol and non-alcohol drinks Price, USD Average 6-12/for one person Average 40-50/for one person Average 15/for one person Average 25-30/for one person Interior Standard 3* Other Breakfast, business lunch
60
Standard 5* Standard 3*
30
Can be ammended Hot drinks and sweets prevail
4.Lobbi-bar
30
Standard 5*
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PART 2: INVESTMENT PROJECTS IN UKRAINE Glybochychka
1.10. Conference-hall: Type Number of seats 1.Big hall 150
Quality Class
Price USD day/half a day 1000/500
Interior Standard 4*
Technical equipment All modern equipment (screen, multimedia projector, Wi-Fi, flipchart, LCD-tv, xerox, fax, conditioning etc) . All necessary conference equipment including speaker microphones and LCD-monitors.
2.Small hall
50
Class
500/250
Standard 3*
Note: All additional equipment available under additional request and at extra price. 1.11. Fitness centre. Note: 100 sq,m,, all professional equipment, men/women separately, shower cabin etc.
1. Location
1.1. 1.2. 1.3. 1.4. Address: GPS-coordinates: Place characteristics Distance to: 16, Hlybochitska str., Kyiv 504601- north lang., 305033- east long. City centre, Business centre City centre: Khreschatyk str. 2, 8 m. The nearest airport: : Kyiv...............6, 7 m. The nearest railway station .............2, 4 m. Highway: Kyiv Odesa ....................... 12, 3 m. 1.5. Transport connections ( types of public transport: Underground................................. Yes 486 m. Bus/Trolleybus ............................. Yes 486 m. Tram ...............................................Yes 270 m. Route taxi ..................................... Yes 200 m. 1.6. Map :
Note: Neighbouring Azerbaijan Embassy.
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1.1. What is the base of building? Concrete, ferro and glass constructions. aximum use of ecologically clean materials. Technical information: Building ground: 14 305 2. Number of storeys: 9 1.2. Building/decoration characteristics: The style of the main part of building is reserved and business like but at the same time elegant that will allow to be in regards with region style. The viewing platform add much to the style. 1.3. Type and state of technical equipment: echnical equipment is in line with ISO requirements. It is planned to used of renewable energy sources and latest technology that provide environmental protection. Features: Type Electricity Gas Drink water Waste water Amount N/A* N/A* N/A* N/A* Status Supply availble Supply chain in the territory Supply availble Supply availble Description N/A* N/A* N/A* N/A*
1.4.
* these date will be known while preparing project documentation

2.1. What permission for construction/licenses do you have? Type Project of land use Project documentation 2.2. What permits/licenses would you need to get? The state expertise, the construction permit, permit from Sanitary epidemiological station, the fire safety permit and licenses for organization of accommodation facilities. 2.3. Is the land purpose in line/will be in line with project implementation of hotel construction? The land purpose will be in line with project implementation of hotel construction. Present land purpose For operation and maintenance of the warehouse building Future land puprose For construction of hotel and its further operation Issued by Valid till Notes Initial documents prepared, project is not approved yet Pre-documentation available
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2.4.
What land rights have you got at the moment?: Right Land leasing Given by? 1. Land leasing contract When? 06.09.07 Valid till For 25 years Square of 1 660 sq.m . .For 5 years. Square of 312 sq.m. Notes Tenant Boukhkalov V.B. Tenant Boukhkalov V.B.
2 Land leasing contract
06.09.07
Notes: Documentation for the land leasing of 2939,9 sq.m. is being prepared. 2.5. 2.6. Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Yes, I do Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? Yes, I do

1. 2. Name of juridical person/physical person-entrepreneur: Private Joint Stock Company Euroholding Invest Address, phone/fax number, e-mail address, other contacts: 16, Hlybochitska str, Kyiv Ukraine 04050 ph/fax: (044) 484-46-20 office@euroholding.com.ua 3. 4. Date of foundation (for juridical person): 1995 . Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 19263630 Extract from EDRPOU is in the annex of this form : 5. 6. 7. Founders (for juridical person): Kharchenko Vyacheslav Governing body: Head of the Board and general meetings of shareholders. Main activities of Ukrainian partner: OJSCEuroholding Invest is the leading company of group of companies in different spheres of Ukraine: real estate, professional sports, fashion, trade, transport facilities. The company has the right on the territory of Ukraine to conduct activities on organization of construction and support of investment projects. Registered capital: paid-in: Are there any daughter enterprises, subsidiaries? Yes. OJSCEuroholding Invest includes the following companies: Euroshina Ltd, Anna Bublik fashion house, urobud Ltd , urotextile Ltd, Ukrainian postal systems Ltd and Tire.ua Ltd. 10. Who is the contact person for this project? Name and contact information: Grankin Vladyslav. Mob. +38(067) 509 60 62, vlgrankin@euro-bud.com.ua. Position. Finance director. What is the investment strategy of Ukrainian partner? Project developing, long-term management with participation of strategic investor. Possible partial or complete object sale. (depending on implementation stage)
8. 9.
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11.
Are there any current contractual relationships on the project? Agreements on architect services (OJSC "Ukrainian zonal scientific reseach institute on civil constructions"), on technical expertise (Horwath HTL); agreement with Geoexpert company on conducting geo-engineering research of construction site; The Center of city planning and architecture and Kyiv municipal executive council have approved M1: 500 topoplan of the construction site and all underground communications; Ukrainian National science methodological center for scientific heritage developed and agreed along with the head of Chief protection of cultural heritage the urban and historical grounding; pre-agreement with building enterprise of potential general subcontractor Altis Holding. Have you (your colleagues or contractual partner) got previous experience in similar projects? Horwath HTL and WingField Corporation are considered to be the most experienced in implementating similar projects abroad (in particular, park network Centerparcs and many other hotels thoughout the world. Altis Holding and OJSC "Ukrainian zonal scientific reseach institute on civil constructions" are the leading building companies of Ukriane experienced in implementating big infrastructural , commercial and housing project. The latter is not only one of the leaders among project institutes of Ukraine and also a successful leader in unique non-typical projects using latest technologies.
12.
What is your experience in hotel/ tourist/ restaurant business? Holding related Housewille Villa Holidays company is dealing with organization of villa vacations of middle class, premium class and de luxe in Tailand, Italy, Greece, France and others. This experience will be used for this project.. Also promotion company of our holding is dealing with organization of international competitions, reception of sports delegations, stars and vip-guests. Thus our managers are greatly experienced in cooperation with Ukrainian and international hotels, analyzing their level, strong and weak points, advantages and risks. Besides the owner of this project is a business man and spends a lot time on international trips. He was learning and analyzing all exiting propositions on hotel services for many years that help to create this project using the worlds best experience.
13.
What is your motivation for implementing this hotel project? The main motivations are lack of three star hotels of international standards in Kyiv that is a significant disadvantage of tourist and business attractiveness of the city. It results in unadequate prices in the already operating hotels; the need of Ukrainians and citizans of Kyiv primarily in qualitative touristentertaining services; quick payback of the project due to its convenient location in Kyiv.

1. Total investment: Planning stage (before the start of construction)..........570 087 EUR Building stage .............................................................23 582 363 EUR Building costs ............................................................21 635 195 EUR Settlement costs ......................................................... 1 947 168 EUR
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2.
Justification of costs: (table with all important cost figures)
3.
Equity: Foreseen for project in general : .........................................7,5 EUR Already invested in the project ...........................................7,5 EUR
4. 5.
Loan: Foreseen for project in general: ...........................27 921 950 EUR Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 4 years. What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? - Total expenses for one year. ( See p.2).
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Yes.
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What can you offer to the investor? Our fist priority is attracting a strategic investor that will become the main project owner. We can guarantee full payback during four years. Investor will be able to participate in project management personally or via representatives or to receive profit (interests) not participating in project management. Investor will be also suggested various exit strategies. 1. What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architecture/engineering company 2. 3. What amount should be invested and what are the investors rights in this connection? The investor will be granted the bigger company share. Should investment be made directly to Ukraine or via some off-shore companies? No difference Preferred According to agreement of the parties. Acceptable Objectionable
V. MARKET ANALYSIS
1. GUESTS
Target client group : First of all, the hotel will serve for guests coming for week-ends, holiday and vacation period, but it will be additionally oriented towards reception of business tourists (coming for trainings, seminars, conferences etc) and participants of various mass events (concerts, sports competitions etc) Average room price for one person: Single ................... 90-115 USD Double................ 120-170 USD Suite ...................185-380 USD 1.1. : Price policy should be flexible taking into account functional orientation of hotel, its target group and remoteness from the city centre. Payback calculation includes annual price rise 3-5%.
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1.2.
What occupancy do you predict? January ............................... 55 % February .............................. 55 % March .................................. 55 % April ..................................... 60 % May ...................................... 60 % June ..................................... 60 % July .......................................65 % August ..................................65 % September ...........................65 % October ................................60 % November ............................55 % December ............................65 %
2.
2.1.
COMPETITIVENESS
Please describe three nearest hotels: Lybid 3* - average 3 points due to inequality of prices and service quality; Intercontinental 5* - average 5 points due to high quality of services, Khreschatyk 3* - average 4 points due to excessive price as for a three star hotel. Are there some other hotels being built in the near? No What marketing steps are you planning for hotel popularization? Own website.............................................................................. Yes Cooperation with tourist companies (night stays) ................. Yes Cooperation with tourist companies (budget trips) ............... Yes Cooperation with aircraft companies ..................................... Yes Advertising ..............................................newspapers, tv, internet
2.2. 2.3.
2.4.
What are the weak and the strong points of the project? Weak points: Difficulties to attract financing Building on the territory Location in the resort zone. Exceeding noise level (tram and road connections nearby) High land costs during preparation of land register documents Central location Closeness to Kyiv downtown, transportation Great size of land territory that will allow to create whole hotel complex or office and hotel complex in perspective. No competitors, as there are no three star hotels with high level of servicing in the region. Simple relief of the construction site. Beautiful view from window. Grankin Vladyslav, mob: +38 (067) 509 60 62, vlgrankin@euro-bud.com.ua Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English ho is the current contact person of the project? Name: Grankin Vladyslav Date: 27.01.2011 Languages: Ukrainian, Russian, English
Strong points :
2.5. 2.6.
Contact person:
Who filled in the form?
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I.
1.1. 1.2. 1.3. 1.5 1.4. 1.5. 1.6. 1.7.
Project Morshin-Absolyut hotel, Lviv region HHHHH

Type of project: Name of project: Term of project implementation: New Construction Morshin-Absolyut 5* hotel Start of construction: 05.09.2008 Putting into operation: 25.12.2011 Hotel classification (stars)( See. www.hotelstars.eu): De luxe (*****) Type of hotel: Number of room: for long staying period 39
Room category: Single: 17, Double: 18, Suite: 4 with three beds each Approximate price (room price for one person): Single ...................... 45 EUR Double .................... 35 EUR Suite........................64 EUR
1.8.
The hotel can offer the following facilities: Restaurant:....................... 1 Conference-hall ................ 1 Swimming pool ................ 1 Fitness centre .................. 1 Sauna ............................... 1 Medical care .................... 1 Business centre ............... 1 Parking........................... 50 Currency exchange .......... 1
1.9.
Restaurant: Type 1.Theme restaurant Number of seats 40 Cuisine European and national Price, USD Interior Other
1.10. Conference-hall: Type Number of seats 1. 55
Quality
Price USD 12 euro/hour.
Interior
Technical equipment All necessary conference equipment
1.1.
Fitness centre.
Note:. 50mFitness facilities
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PART 2: INVESTMENT PROJECTS IN UKRAINE Morshin-Absolyut
1. 1.1. 1.2. 1.3. 1.4.
Location Address GPS-coordinates Place characteristics: Park zone, beach Distance to: City centre ........................................0,5 The nearest airport:: ..................... 100 The nearest railway station: ...........0,2 Highway: ..........................................0,1 20, Proliskova, Morshin, Lvivska oblast, Ukraine
1.5.
Transport connections ( types of public transport): Bus/Trolleybus ...................................... Yes River tram .............................................. Yes
Note:.Bus, route taxi, train, com traim 1.6. Map :

3.1. What is the base of building? Brick building, ferroconcrete construction, wooden roof surfaced with metal tilts. Technical information: Building ground: declined Number of storeys: 6 + mansard 3.2. Building/decoration characteristics: An adjusting building Morshin sanatory resort, faade construction of glass and keramogranite.
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3.3.
Type and state of technical equipment: Features: Type Electricity Gas Drink water Waste water Amount 63187W per month 54720 m .per month
3 3
Status
Description possible
795 m .per month 618 m3.per month
3.4.
If building/ reconstruction is on, please describe state of building: State of building: .............................................................................. new construction Building state: .................................................................... construction ready 30% Is constructing continue\ stopped?: ........................................ construction stopped Present situation with contractual agreement (its not concluded yet): ..........Contract with building company is valid

4.1. What permission for construction/licenses do you have? Type Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station Fire satety 4.2. 4.3. All permits and licenses are obtained What land rights have you got at the moment?: Right Land ownership Building ownership Land leasing Building leasing 4.4. Do you have a possibility to purchase land (get property acquisition) in case of absence of property right for land? Private property Given by? When? Valid till Notes Issued by 1257 Form 46 8 732/2 4/9 26/01 13/1 Valid till from02.04.2007. from 12.07.2008. from 14.07.2008. from14.07.2008. from14.07.2008. from 21.05.2008. Notes
What permits/licenses would you need to get?
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II.
1.
UKRAINIAN PARTNER
Name of juridical person/physical person-entrepreneur: President of nergoresurs-invest corporation Ivan Nironovych. Address, phone/fax number, e-mail address, other contacts: 131, Zelena str., Lviv 79035 Ukraine, ph.(032)260-12-97, fax 032-225-54-39, info@energoresurs.com
2. 3. 4. 5. 6. 7. 8. 9.
Date of foundation (for juridical person):. Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): Extract from EDRPOU is in the annex of this form Founders ( for juridical person): Governing body: Main activities of Ukrainian partner: Registered capital: nominal: paid-in: Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information: Position:
10. 11. 12. 13. 14.
What is the investment strategy of Ukrainian partner? development, construction, long-term operation. Are there any current contractual relationships on the project? projects developed and partners determined. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? Having relation to hotel/ tourist/ restaurant business. What is your motivation for implementing this hotel project?

1. Total investment: Planning stage (before the start of construction)....................... 5250000,00 EUR Building stage ................................................................................ 5200000,00 EUR Building costs ............................................................................... 3200000,00 .EUR Settlement costs ........................................................................... 2000000,00 EUR 2. Justification of costs: (table with all important cost figures)
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3.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? ..building and main components -12,5 years ...furniture, basic room equipment 2,5 years ...office equipment, survey and access equipment -1,8 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? ...electricity -7000 kW monthly .....staff -46 persons.
4.
What annual turnover can be expected after completion? What annual turnover will be in the future? ..1st year 504000 euro ..Next years 800000 euro
5.
Are you going to establish amortization fund for operation costs or will the financing be from the current turnover?

1. 2. What can you offer to the investor? What kind of investor are you looking for? nvestor Equity participation (In the form of LLC or JSC) Significant part of the investor (>50 %) Easy part of the investor (<50 %) Management partner Creditor (loan) 3. Should investment be made directly to Ukraine or via some off-shore companies? Directly to Ukraine / Off-shore companies / No difference Preferred Acceptable Objectionalble
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group:tourists coming for vacation and medical treatment Average room price for one person : After opening ..................................... 43 EUR In 5 years.......................................... 54 EUR
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1.3.
What occupancy do you predict? January ---------------------------------------- 100 % February ------------------------------------------ 70% March --------------------------------------------- 75 % April ------------------------------------------------ 80 % May ------------------------------------------------- 85 % June ------------------------------------------------ 90 % July ........................................ 90 % August................................... 90 % September ........................... 80 % October ................................. 75 % November ............................. 60 % December............................. 95 %
2. COMPETITIVENESS
2.1. What marketing steps are you planning for hotel popularization? Own website.......................................................................................Yes Cooperation with tourist companies ................................................Yes Cooperation with aircraft companies ..............................................Yes Cooperation with aircraft companies ..............................................Yes Advertising ...................................................... newspapers, tv, Internet
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Project ashtan hotel, Lviv region HHHH

Name: Construction of hotel and resort complex ashtan 4* in Truskavets, Ukraine new construction (11 storeys) Kashtan Palace hotel The start of construction - 2008 The end of construction - December 2011 Construction is underway (agreement with UEFA on target groups accommodation during Euro-2012). Hotel classification (stars): + First classe (****)
1.1. 1.2. 1.3.
Type of project: Name of project:
1.4. 1.5. 1.6. 1.7.
Type of hotel: Number of rooms: Room category:
SPA hotel, tourist, sports, for medical treatment and long staying period. 184 Single/double/twin: 165 / Suites: 17 / Apartments: 2
Approximate price (room price for one person): Single/double/twin .,.,.,.,.,. 70 EUR Suite.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.100 EUR Apartments,.,.,.,.,.,.,.,.,.,.,.130 EUR
Note 1.8.
Including accommodation, breakfast and SPA-facilities. The hotel can offer the following facilities: Restaurants: 3 Conference hall: 2 Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency
Note
The hotel project foresees reception zone (entry lobby), commercial zone, restaurant and entertaining zones (night club etc), aqua zone (25x9m swimming pool and zone for children), administration zone, rooms zone. Roofed connection to Med-Palace medical complex including diagnostics centre, water treatment and SPA centre.
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PART 2: INVESTMENT PROJECTS IN UKRAINE ashtan
1.9.
Restaurants: Type 1. Lobby bar Number of seats 70 Cuisine European Price, 5 EUR Interior Modern design and elegant furniture Modern design Modern design Technical equipment All necessary for conducting conferences Other
2. Main 3. Piano bar 1.10. Conference hall: Type 1. Conference hall
200 60 Number of seats 150
National/fast food European Quality Price
10 EUR 15 EUR Interior
Modern design and high quality decoration
1.11. Fitness centre: yes Note: All modern equipment
2. LOCATION
2.1. 2.2. 2.3. Address: GPS-coordinates: Truskavets 4901645.97n. latitude., 2303018.73 east. longitude
Place characteristics: City centre
Note: Located in the historic city centre near the main infrastructure objects (mineral natural source, central park) 2.4. Distance to: City centre : ........................................ 0,2 The nearest airport : ......................... 100 The nearest railway station : ............. 0,5 Highway ................................................ 25 2.5. Transport connections (types of public transport): Underground Bus/Trolleybus Tram River bus Route taxi Note: The airport is located 100 km away from Truskavets at Lviv.
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2.6.
Map:

What is the base of building? Monolith frames, aircrete walls. 3.1. Technical information: Surface of building: Number of storeys: Total square 3.2. flat 11 22000 m2 .
Building/decoration characteristics: The hotel is connected to Med-Palace medical complex by a covered passage, (Total square of medical complex - 11000 m2)
3.3. 3.4.
Type and state of technical equipment: All innovative technologies are applied to the heating system. Features: Type Electricity Gas Drink water Waste water Quality Status Description
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3.1. What permit for construction/licenses have you got? Type Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station Fire safety 3.2. 3.3. Issued + + + + + + - none. Future land purpose Valid till Notes All valid All valid All valid All valid All valid All valid
What permits/licenses would you need to get? Present land purpose Constructing and maintaining the resort complex
Is the land purpose in line/will it be in line with project implementation of hotel construction?
3.4.
What land rights have you got at the moment? Right Land ownership + Building ownership + Land leasing Building ownership Other Given by? When? Valid till Note
3.5.
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? - Yes.

1. 2. Name of juridical person/physical person-entrepreneur: CJSC Truskavetskurort Address, phone/fax number, e-mail address, other contacts: 2, bulvar Drohobucha, Truskavets, Lvivska oblast, 82200. ph. (03247) 60000, 60020. e-mail: e.geraschenko@truskavetskurort.ua www.truskavetskurort.ua 3. 4. Date of foundation (for juridical person): state registration - 24.03.1999 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations)): 30322940 Extract from EDRPOU is in the annex of this form Yes 5. 6. Founders (for juridical person): stockholders Governing body: Board of survey council, council board of directors, Director General / No
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7. 8. 9.
Main activities of Ukrainian partner: resort services. Registered capital: nominal: + paid-in: Are there any daughter enterprises, subsidiaries? CJSC Truskavetskurort includes: Resorts: Almaz, Kristal, Rubin, Yantar, Vesna, Beriska, Kashtan; Medical centres: 1, 2 3 Med-Palace; Daughter enterprise Apteka; hydro-geological regime operating station; Shevchenko Palace of culture; affiliates - Logistics enterprise, Auto transport enterprise Diet catering Veselka, Truskavetskurortteproenergo, Supporting manufacturing enterprises.
10.
Who is the contact person of the project? Name and contact information: Igor Shklyarouk 5-7, Studentska str., Kyiv 04050, ph. +38(044) 5869809, mob.+38(098)7868686 e-mail: truskavec@gmail.com Position Deputy head of Survey council board of CJSC Truskavetskurort
11. 12. 13. 14.
What is the investment strategy of Ukrainian partner? Shareholding and management. Are there any current contractual relationships on the project? All agreements available. The hotel construction is under way. Have you (your colleagues or contractual partner) got previous experience in similar projects? We are experienced in constructing and operating hotel and office premises in Kyiv and Truskavets. What is your experience in hotel/ tourist/ restaurant business? Managing resort complex CJSC Truskavetskurort that includes resorts, villas, medical centres. www.truskavetskurort.ua
15.
What is your motivation for implementing this hotel project? Business expansion and financial result.

1. 2. 3. Total investment: Planning stage before the start of construction - 28 770 631 EUR Justification of costs: (table with all important cost figures) Equity: Foreseen for project in total : ............................ - 28 770631 EUR Available ................................................................. - 15 740557 EUR Already invested in the project ............................ - 15 740557 EUR Loan: Foreseen for project in total : ................................. - 3 030074 EUR Available ................................................................................0 EUR Already invested in the project ................................................0 EUR
4.
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5.
Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? - 13 years. What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? 1. Municipal expenses 2. Staff wages 3. Manufactured goods. 4. Food. 5. Maintenance expenses.
6.
What annual turnover can be expected after completion? What annual turnover will be in the future? Average annual turnover - 4 300000 EUR (including VAT) Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.

1. What can you offer to the investor? Equity participation shareholding management for a fee Credit (loan). 2. What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architect/engineering company 3. 4. What amount should be invested and what are the investors rights in this connection? Proportionally to the investment amount. Should investment be made directly to Ukraine or via some off-shore companies? + No difference Preferred Acceptable Objectionable
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V. MARKET ANALYSIS
1. GUESTS
1.1. Target group: People with digestion diseases, problems on urinology, genecology, diabetes, those hardworking who would like to get rid of stress, to go on rehabilitazation. Corporative clients. 1.2. 1.3. Average room price for one person: What occupancy do you predict? Opening- 63EUR In 5 years 115 EUR 2012 67%, 2016 73%
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels : Geneve, Chalet-Graal, Rixos Are there some other hotels being built in the near? Yes, some small ones. What marketing steps are you planning for hotel popularization? Own website ................................................................................ Yes Cooperation with tourist companies (night stays).................... Yes Cooperation with tourist companies (budget trips) ................. Yes Cooperation with aircraft companies ........................................ Yes Advertising .............................................. newspapers, tv, internet GDS systems, tourist portals, on-line booking systems .......... Yes Corporative clients ............................................................................ POST-terminals.................................................................................. 2.4. What are the weak and the strong points of the project? The main advantages: 1. Unique mineral water sources of well known balneal resort (Naftousya, Maria, Sofia and others), Truskavets is the only one resort in Europe which main medical profile to treat urine diseases among many other health problems. 2. Well known brand Truskavetskurort; 3. Own medical base. 4. Covered passages to different buildings. 5. Good location in the historical centre. 6. Closeness to the most important infrastructure objects.
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Weak points: 1. A large investment amount; 2. Loans reduce the level of financial indecency and liquidity of an enterprise; 3. Repair will require the hotel to be closed for a while; 4. Thus financial loss; 5. Absence of an official 4* classification; 2.5. Contact person: Shklyarouk Igor e-mail: truskavec@gmail.com mob.+38(098)786-86-86 2.6. 2.7. Who fill in the form? Name: Shklyarouk Igor Date: 03.02.2011 Languages: English, Ukrainian, Russian. 2.8. Who is the current contact person of the project? Name: Date: Languages: . Shklyarouk Igor 03.02.2011 English, Ukrainian, Russian.
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I.
1.1. 1.2.
Project Pomirky hotel, Lviv region HHHH

Type of project: Name of project: new construction Construction of hotel and resort complex (capacity 360 persons) in the Pomirky tract on the territory of Stanylivska rada (council of Stanyliv village), Drohobytskyi region, Lvivska oblast. Start of construction - 2011, end of construction the 1st quarter of 2015 First class (****) Resort hotel. 215 Single / Double / Suite / Apartments
1.3.
Term of project implementation: Hotel classification (stars):
1.4. 1.5. 1.6. 1.7.
Type of hotel: Number of rooms: Room category:
Note: Including 66 single rooms, 142 double rooms, 8 suites and 2 apartments. Approximate price (room price for one person): Single .................................. 100,00 EUR Double .................................. 60,00 EUR Suite.................................... 200,00 EUR partments ........................ 300,00 EUR 1.8. The hotel can offer the following facilities: Restaurants: 2 (two) Conference hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency change Note: Bank dept., shops, beauty salon, sports resort centre are planned additionally. 1.9. Restaurants: Type 1. Ethno-restaurant 2. Restaurant 1.10. Conference hall: Type 1.Universal 1.11. Fitness centre: Note: All modern equipment Total number of seats 150 Quality high Price Interior Technical equipment Modern technologies Total number of seats 150 430 Cuisine national European Price Interior Other
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PART 2: INVESTMENT PROJECTS IN UKRAINE Pomirky
2. LOCATION
2.1. 2.2. 2.3. Address: Territories of the council of Stanyliv village, Drohobytskyi region, Lvivska oblast. Place characteristics: Distance to Suburbs City centre: ...................................... 5 km The nearest airport: .................. 100 km The nearest railway station: ......... 5 km Highway: .......................................... 5 km 2.4. Transport connections (types of public transport): Bus/Trolleybus .................................. Yes Route taxi ........................................... Yes 2.5. Map:
Note: Truskavets suburban area
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3.1. What is the base of building? -phase object Restaurant for 150 persons: Strip foundations, reinforced concrete, brick walls, wooden roof frames . -phase object Hotel for 360 persons: reinforced concrete frames, brick walls, wooden roof frames.. Technical information: Building ground: Semisolid loam with streaks of sand and loam. Number of storeys: from 2 to 7. 3.2. Features: Type Electricity Gas Drink water Waste water 3.3. 4. 4.1. State of object: Quantity 1600,0 kW 286,0 m3/hour 198,8 m3/day 192,0 m3/day New building Status (of supply chain) Description
If building/ reconstruction is on, please describe state of building: CONSTRUCTION PERMITS AND LAND RIGHTS What permits for construction/licenses have you got? Type Project of land use Project documentation Sanitary epidemiological station Fire safety Ecology inspection Issued 05.10.2004 29.12.2010 17.05.2004 07.05.2004 05.05.2004 Construction permit Valid till Note
4.2. 4.3.
What permits/licenses would you need to get? Is the land purpose in line/will it be in line with project implementation of hotel construction? Yes, it is Present land purpose Constructing hotel resort complex (360 person capacity) Future land purpose Constructing hotel resort complex (360 person capacity) Given by? 10.01.2007 When? 10.01.2012 Valid till Note
4.4.
What land rights have you got at the moment? Right Land leasing Drohobychi state region administration
4.5.
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? Yes.
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1. 2. Name of juridical person/physical person-entrepreneur: Daughter enterprise of VektorLLC Vektor plus Address, phone/fax number, e-mail address, other contacts: 90, Stebnytska str., Stanylya village, Drohobychi region, Lvivska oblast Ph/fax (0324) 45-08-97. vectorplus@ukr.net 3. 4. Date of foundation (for juridical person): 18.05.2004. Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations: 32907438 Founders (for juridical person): 5. Governing body: Founders and director Main activities of Ukrainian partner: Construction, activity in the engineering sphere, wholesale trade of building materials. 6. Registered capital: Nominal: Paid-in : 7. 8. 900000,00 UAH 443045,00 UAH No. VektorLLC
Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information Position Director
Ivanischev Boris, mob. (067) 3831081
9. 10. 11. 12.
What is the investment strategy of Ukrainian partner? Equity participation, management etc. Are there any current contractual relationships on the project? Architect, engineer and technical expert services. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your motivation for implementing this hotel project? Profit gain
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1. Total investment: Planning stage (before the start of construction)........... 10000,00 EUR Building stage ............................................................. 17000000,00 EUR Building costs ............................................................ 12000000,00 EUR Settlement costs ......................................................... 5000000,00 EUR 2. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 3. 8000000 EUR - 10000000 EUR Are you going to establish an amortization fund for operation costs or will the financing be from the current turnover? Yes. 5 years What annual turnover can be expected after completion? What annual turnover will be in the future?

1. 2. What can you offer to the investor? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) 3. 4. What amount should be invested and what are the investors rights in this connection? Significant part of investor (>50 %), rights according to agreement Should investment be made directly to Ukraine or via some off-shore companies? No difference Shareholding Preferred Acceptable Objectionable What kind of investor are you looking for?
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target group: Average room price for one person: Opening ........................................100,00 EUR In 5 years ....................................150,00 EUR 1.3. What occupancy do you predict? January ..................................100 % February ................................... 75 % March ....................................... 75 % April .......................................... 80 % May ........................................... 85 % June .......................................... 90 % July ............................................100 % August.......................................100 % September..................................95 % October .......................................90 % November ...................................75 % December...................................70 % Vacation on balneo resort
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2.
2.1. 2.2. 2.3.
COMPETITIVENESS
Please describe three nearest hotels: Karpatyresort, Perlyna Prykarpattya, International clinic of rehab treatement. Are there some other hotels being built in the near? No What marketing steps are you planning for hotel popularization? Own website..................................................................................Yes Cooperation with tourist companies night stays ........................Yes Cooperation with tourist companies budget trips......................Yes Cooperation with aircraft companies..........................................Yes Advertising .................................................newspapers, tv, Internet
2.4.
What are the weak and the strong points of the project? Location in the park and forest resort zone, large territory, Water basin nearby turning forest zone into dendropark.
2.5. 2.6.
Contact person: Name: Date: Languages:
Ivanischev Boris, (067) 3831081 Ivanischev Boris. 02.02.2011 Ukrainian, Russian
Who filled in the form?
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Project Kotljarevskogo hotel, Lviv HHHH

1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. Type of project: Name of project: new construction Construction of hotel complex in Truskavets. Construction starts 2011 and is completed in the 1st quarter of 2015. Hotel classification (stars): First class (****) Type of hotel: Number of rooms: Room category: Resort hotel 179 Single / Double / Suite / Apartments
Note: Including 72 single rooms, 21 double rooms, 75 suites and 11 apartments. Approximate price (room price for one person): Single .................................100,00 EUR Double .................................. 80,00 EUR Suite ..................................200,00 EUR Apartments ........................300,00 EUR 1.9. Approximate price (room price for one person): Restaurant: 1 Conference hall 974,1 m2 swimming pool Fitness centre Sauna and Turkish bath Medical care Business centre Underground parking for 35 cars, ground parking for 19 cars Currency exchange Note: Bank, shops, beauty salon and sports centre are foreseen additionally. 1.10. Restaurants: Type 1.Restaurant 2.Cocktail bar 3.Buffet 1.11. Conference hall: Type 1.Universal 1.12. Fitness centre: Note: All modern equipment Total number of seats 156 Quality high Price Interior Technical equipment Modern technologies Total number of seats 140 8 Cuisine Price European Interior Other
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PART 2: INVESTMENT PROJECTS IN UKRAINE Kotljarevskogo
2. LOCATION
2.1. 2.2. 2.3. Address: Truskavets, Lvivska oblast. Place characteristics: Distance to: City centre: ................................................ 0,5 km The nearest airport: .................................. 80 km The nearest railway station: .........................2 km Highway: ..................................................... 40 km 2.4. Transport connections (types of public transport): Bus/Trolleybus ..................................................Yes Route taxi ..........................................................Yes 2.5. Map: City centre

3.1. 3.2. What is the base of building? Ferroconcrete construction Technical information: Building volume ............................. 80843,8 m2 Underground ...................................... 13733 m2 Above ground ..................................67110,8 m2 Land square ....................................9992,51 m2 Construction square .......................2491,81 m2 Passage square .............................. 2241,24 m2 Pavement square ........................... 1864,08 m2 Landscape square ......................... 3034,38 m2 Reservoir square...............................361,00 m2 Number of storeys: 9 storeys+basement+technical(mansarde)
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3.3.
Features: Type Electricity Gas Drink water Waste water Quantity 1700,0 kW 300,0 m3/hour 213,3 m3/day 206,0 m3/day New building Foundation The works continue Status of supply chains Description
3.4.
If building/ reconstruction is on, please describe state of building: Object state: Building state):
Does constructing continue\ or is it stopped?
Present situation with contractual agreement: Contract with building company is valid.

4.1. What permits for construction/licenses have you got? Typ Project of land use Project documentation State expertise Construction permit Sanitary epidemiological station Fire safety Labour protection 4.2. Present land purpose Constructing hotel complex 4.3. Right Land leasing Land ownership Given by? Truskavets municipal council Truskavets municipal council 12.08.2010 11.08.2010 Future land purpose Constructing hotel complex When? 19.10.2010 21.07.2005 and 25.12.2006 Valid till 19.10.2013 Note Issued . 17.08.2010 17.08.2010 01.09.2010 Valid till Notes
Is the land purpose in line/will it be in line with project implementation of hotel construction?
What land rights have you got at the moment?
Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? Yes.
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1. 2. Name of juridical person/physical person-entrepreneur: VektorLLC Address, phone/fax number, e-mail address, other contacts: 16, Shkilna str., Boryslav village, Lvivska oblast.. Ph/fax (0324) 45-08-97. vector13@ukr.net 3. 4. Date of foundation (for juridical person):: 13.12.1993 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations:: 20797466 Extract from EDRPOU is in the annex of this form 5. Founders (for juridical person): Harasymiv Zenovij Harasymiv Yuriy Mytsak Svitlana 6. Governing body: Meetings of shareholders. Main activities of Ukrainian partner: Hotel activities, accommodation of mountain tourists, sports objects activity, other recreational activities. 7. Registered capital: nominal: 3000000,00 hrvn. Paid-in:2867943,98 hrvn 8. 9. Are there any daughter enterprises, subsidiaries? Daughter enterprise of VektorLLC Vektor plus Who is the contact person for this project? Name and contact information: Harasymiv Zenovij, (067) 3823420 Position: 10. 11. 12. 13. Director What is the investment strategy of Ukrainian partner? Equity participation, management etc. Are there any current contractual relationships on the project? Architect, engineer and technical expert services. Contract with building company. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your motivation for implementing this hotel project? Profit gain Yes / No
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1. Total investment: Planning stage (before the start of construction)............................... 12000 EUR Building stage ................................................................................. 25000000 EUR Building costs ..................................................................................17000000 EUR Settlement costs ...............................................................................8000000 EUR 2. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 3. 8700000 EUR - 10500000 EUR Are you going to establish an amortization fund for operation costs or will the financing be from the current turn? Yes. 5 years What annual turnover can be expected after completion? What annual turnover will be in the future?

1. 2. What can you offer to the investor? Investor Equity participation ( In the form of LLC or JSC) Significant part of investor (>50 %) 3. 4. What amount should be invested and what are the investors rights in this connection? Significant part of investor (>50 %), rights according to agreement Should investment be made directly to Ukraine or via some off-shore companies? No difference Shareholding Preferred Acceptable Objectionable What kind of investor are you looking for?
V. MARKET ANALYSIS
1.
1.1. 1.2.
GUESTS
Target group: Vacation on balneo resort Opening ................... 100,00 EUR In 5 years................. 150,00 EUR Average room price for one person:
1.3.
What occupancy do you predict? January ................................ 100 % February ................................. 75 % March ..................................... 75 % April ........................................ 80 % May ......................................... 85 % June ........................................ 90 % July .................................... 100 % August............................... 100 % September ......................... 95 % October ............................... 90 % November ........................... 75 % December........................... 70 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: resorts: Vesna, Yantar, Kryshtalevyi Palats What marketing steps are you planning for hotel popularization? Own website ................................................................. Yes Cooperation with tourist companies night stays ....... Yes Cooperation with tourist companies budget trips ..... Yes Cooperation with aircraft companies ......................... Yes Advertising................................. newspapers, tv, Internet 2.3. 2.4. 2.5. What are the weak and the strong points of the project? Construction of hotel in the city centre, It is also planned to start constucting modern aquapark. Contact person: Name: Date: Languages: Ivanischev Boris, (067) 3831081 Ivanischev Boris. 02.02.2011 Ukrainian, Russian Who filled in the form?
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Project Olymp hotel, Lviv HHHH

1.1. Project description: Completion of the hotel complex lymp. For the construction of a hotel complex the LLC VAYTECK received a lot of land for rent in 2005. In 2007 the company launched project work for a 4-star hotel complex and was granted a construction permit in December 2008. In 2009 VAYTECK contracted constructions works out to the building company TVD. 1.2. 1.3. Title of the project: LLC VAYTECK offers a project for the construction of the 4-star hotel complex OLYMP with 41 rooms in the central part of Lviv 15 months are needed for the completion of the construction works and putting into service. 1.4. 1.5. 1.6. 1.7. 1.8. Hotel rating: Hotel profile: Number of rooms: Room rating: 1st class (****) Sophisticated 8-storeyed hotel complex for business travelers and tourists offering European service and comfortable rooms 41 double / superior
Time frames for the implementation of the project:
Remark: double junior suites are also planned. Approximate prices: double .................................................. 90 EUR junior suite ......................................... 110 EUR superior .............................................. 150 EUR Remark: the price includes breakfast; 1.9. Hotel facilities: rstaurants number: cnference hall swimming pool sauna parking currency exchange Remark: parking space for 20 cars on the adjacent territory Additional services: Lobby bar SPA, hairdresser Booking on the phone and on the Internet Communications (telephone, fax, Internet, Wi-Fi, e-mail) Excursion services Dry cleaning Credit cards accepted
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PART 2: INVESTMENT PROJECTS IN UKRAINE Olymp
1.10. Restaurants: Type 1. Restaurant with open view Total number of seats 50 seats Cuisine European Price UAH 180 Interior Interior and concept are to be presented by the network Kosyrna karta Classical Other Restaurant to be managed by the network Kosyrna karta. Partnership terms revenue is shared 50/50 Not only for hotel guests, but also for outside visitors. Venue and waiting place. The menu is to include cold and hot appetizers, alcoholic and non-alcoholic beverages, fresh and original desserts. Cigar menu is a must
2. Lobby bar
80 seats
European
UAH 80
1.11. Conference hall: Type 1. Total number of seats 50 seats Quality Price UAH 800 per hour Interior Technical equipment Fully equipped with wired and wireless devices for conferences, seminars and trainings
1.12. Fitness centre: Remark: Finnish and Romanian saunas with a small pool and rest-rooms are to be arranged fpr the guests. Capacity: 6 to 8 persons. Sauna services will be available for outside visitors as well.
2. LOCATION
2.1. 2.2. 2.3. 2.4. Address GPS-data: Distance: Lviv, 1 Zehova str. 4905056.65 N 2400127.03 E
Description of the location: city centre City centre: .................................... 1 km Closest airport: ............................. 6 km Closest railway station: ................ 4 km Highway: ........................................ 3 km
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2.5.
Access by public transport: Subway .................................................. No Bus / trolley-bus ....................Yes 0,01 km Tram ............................................. Yes 1 km River tram ............................................... No Line taxi ..................................Yes 0,01 km
2.6.
Map: (Google Maps / Google Earth )
3. QUALITY OF THE CONSTRUCTION WORKS AND EQUIPMENT

3.1. What is the basis for the construction works? The hotel is to be built on a monolithic metal-concrete skeleton with self-carrying exterior insulated walls and inner brick walls. Metal-concrete monolith ceilings. Tented roof made of zinced metal sheets with polyurethane coverage. Foundation with precast metal-concrete columns and monolithic metal-concrete rostwerks. 3.2. Technical information: Building site The building site is located in the central part of the city within the historical preserved area of Lviv. The site covers 410 square meters. The site is flat and is allotted for the hotel. The parking lot is located on the opposite side of the street. The site is located on the crossing of Zehova str. and P. Kulish str. and borders house No. 3 Zehova str. And house No. 47 in P. Kulish str. Number of floors: 8 floors, 9th floor with an attic (floor used for technical purposes). 3.3. Construction and design: The hotel design lets it dominate the crossing of the two streets and secures harmony with neigbouring buildings. The facade is decorated with large stained-glass window in aluminum frames. The hotel is the last building to be built in this quarter of the city.
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3.4.
Equipment: The heating room is to be equipped with two up to date high-efficiency water boilers. These are low-temperature boilers operated with low-pressure gas. The boilers have fan ignition and are equipped with automatical security and regulation systems. The heating room is to be placed in the attic floor. Other technical features include chemical water cleaning for filling the system, water meters, gas consumption meters and temperature control for smoke gases. Optimal selection of pumps for water supply. Hot water pipelines are insulated against heat losses. Electricity consumption is streamlined with various measures like luminescent lamps. Automation of the processes and ventilation systems. Measures for securing moderate climate conditions in the rooms.
3.5. 3.6.
Specific features: Type ................................Amount Condition (connection with supply networks) ............... Data In case constructions/refurbishing works should start, please describe the condition oft he building: Condition of the building: New building Current stage of the construction works: The monolithic skeleton is complete. The floor surface is ready, stairs and, partly, inner walls are complete. The general construction works are 75% ready. Costs incurred so far: EUR 1518519 The works have been suspended. Is the construction contract still valid: Yes The contract with the building company is terminated The construction works are under way or have they been stopped?
4. CONSTRUCTION PERMITS AND PROPERTY RIGHTS FOR THE LAND

4.1. What permits/licences for construction works do you already have? Type Planning scheme Project documents State expertise Construction permit State sanitary authority State fire service Remark: construction documents have been agreed with companies which issued: specifications for gas supply to the object; specifications for the connection to the city networks for water supply and waste water processing; specifications for electricity supply; 4.2. What permits/licences do you have to obtain? All papers are available 22.12.2008 10.12.2011 19.05.2008 valid Date Valid till Remark
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4.3.
Does/will the purpose of use of the land correspond to the project of hotel building? Current purpose of use for the land Construction of commercial property Future purpose of use for the land
4.4.
What property rights for the land do you have presently?: Right Property right for the land Property right for the building Office for technical inventory and expert assessment City council of Lviv .......................... 02.04.2008, No.18339496 20.09.2004 08.07.2014 Granted by whom? When? Valid till Remark
Lease contract for he land Lease contract for the building
Other: cadastre number of the lot 4610136600:03.004:0010 4.5. If the property right for the land is missing: is it possible to buy/receive property rights for the land? After putting the object into service it is possible to buy the land

1. 2. 3. 4. 5. Name: Limited liability company Vayteck Lviv, 6 Chukarina str., E-mail: otelehin@gmail.com. +38-050-3703079 Date of foundation: 22.03.2005 EDRPOU-number: Founders: 33420094 Yes LLC Shuvar - 50% Mrs. Shyrokova T.V. 30% Borsenko .V. - 20% 6. 7. 8. 9. 10. Management structure: Meeting of the founders Core business of the Ukrainian partner: Hotel services Charter capital: nominal: UAH1000000 paid capital: UAH 534000 Are there any subsidiaries, branches or affiliated companies? LLC Shuvar Who is the contact person for this project? Mr. Telegin Oleg Vitaliyovych What is his position in the company?: Director of LLC Vayteck. 11. What is the investment strategy of the Ukrainian partner? Development, construction and long-term operation of the hotel complex Extract from the state register EDRPOU is attached to this questionnaire Address and contacts:
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12.
Are there any contracts regarding the implementation of the project? A contract for the construction works was signed with the building company TVD (Lviv)
13.
Do you (or your employees/partners) already have any experience regarding implementation of such projects? LLC Shuvar has experience in building and operating hotels What experience in hotel/tourism/restaurant business do you have? As a customer only What is your motivation to implement this hotel project? Study of the hotel market and following trends and developments: Implementation of state programs for tourism development; Lviv is a traditional centre for tourism and is a destination for tourists from Russia, Ukraine, Poland and other European countries; Lviv is a business hub for Western Ukraine; Consumers tend to pay more attention to quality than to price now; Main competitors are not in position to meet quality and service standards; Positive development dynamics of tourism in Ukraine.
14. 15.
Favourable conditions for the implementation of the project: Good location of the hotel for the main customers; Positive expectations on the market due to the upcoming EURO2012; Numerous potential customers; Available infrastructure. Main expectations: Completion of the constructions works started in 2008; Putting the hotel into operation; Making revenues and making the project profitable.
III. FINANCING THE PROJECT

1. Total capital: Planning stage (before the beginning of the construction works) EUR 26000 Construction stage EUR 4644443 Construction costs EUR 3607407 Equipment, inner works EUR 1037036
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2.
Costs breakdown: (sheet with the main costs) No. 1. 2. 3. 3.1. 3.2. 3.3. 4. 4.1. 5. 6. 7. 8. 9. 10. 11. 12. 13. 13.1. 13.2. 13.3. 13.4. Issuing project documents Renovation of the existing infrastructure (electric power plant, communications, renovation of auxiliary facilities etc.) Construction and mounting works Construction and mounting works, arranging infrastructure Glass Elaborating hotel design, inner decoration works, connection to the infrastructure Decorating the rooms Furniture, equipment, textiles ffice, cleaning and other equipment Saunas and swimming pool Corridors, halls, administrative and other staff rooms Restaurant Hall and lobby-bar Conference-hall Hotel outside territory Computers and software for hotel management Working capital Selection of staff, training Marketing program Purchase of raw materials Paying off credit interest rates Total costs 22 222 14 815 7 407 162 963 4 670 370 303 704 44 444 81 481 44 444 222 222 37 037 22 222 14 815 74 074 1 296 296 740 741 1 259 259 Works Costs, EUR 25 926 296 296
3.
Your own investment: Total sum for the entire project: EUR 1600000 Invested in the project so far EUR 1423000
4. 5.
Debt capital: Total sum for the entire project: EUR 3085000 Financing model: Please present your considerations regarding financing the project. Please answer the following questions: What is the expected term for investment depreciation? 10 operational years What current production and operational costs are to be considered? Production costs food supply, wages for the staff, personal utilities in the bath-rooms, electricity, water supply, heating; Operational costs management costs, payments for communal services, maintenance, guard, licences and permits, average EUR 740000 per year in total
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6.
What annual turnover can be expected after the completion? What is the annual turnover expected to be in the future? Expected turnover after the completion of the construction works: EUR 1200000 per year rising to EUR 1350000 in the future. Are you planning to make a depreciation fund for financing operational costs or do you want to cover these costs from the annual turnover? The operational costs are to be covered from the current turnover, there will also be a depreciation fund for paying off the investment costs.
IV. NVESTOR
1. What can you offer to investors? The company is looking for an investor who can supply a credit for this project against the available property for 10 years. The interest rate should be 10% per year and will be paid off on monthly basis. 2. What kind of investor are you looking for? nvestor Creditor (loan) 3. 4. Preferred preferred Acceptable Unacceptable
What sum should an investor put in and what rights is he supposed to receive in return? EUR 3085000 against property. Should investments be transferred directly to Ukraine or via off-shore companies? Makes no difference
V. MARKET ANALYSIS
1. HOTEL CUSTOMERS
1.1. Customers classification: Business travelers; Tourists who visit Lviv on their own; Organized tourist groups, Ukrainian as well as foreign visitors (mainly from Poland); Corporate customers (conferences, seminars, trainings). Average room price per person: After putting into operation: EUR 110 5 years after putting into service: EUR 110 1.2. What occupancy rate are you expecting? January ....................... 60 % February ...................... 50 % March .......................... 50 % April ............................. 70 % May .............................. 70 % June ............................. 70 % July ...............................70 % August ..........................70 % September ...................70 % October ........................80 % November ....................80 % December ....................90 %
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2. COMPETITION
2.1. Please describe 3 neighboring hotels: 1. Hotel Leopolice. Most expensive and still one of the most popular hotels in the city. It counts 40 rooms and 3 superior suites. The occupancy depends on the season and varies between 60% and 80%. Its positioned as an elite European style hotel with 4 stars. The management plans to increase the number of rooms to 80-120 and to apply for the 5-star status. The main advantage of the hotel is its comfortable location in the centre of the city between the central square and the Svobody avenue. The main drawback is the lack of parking space and slow construction of the second part of the building. The hotel management is pursuing its marketing rather actively. The main marketing tools of this hotel: Internet, sales to travel companies, distribution of catalogues, external advertising. Room prices (www.leopolishotel.com/prices/) Room category Double Junior suite Superior Deluxe suites EUR per night 215 235 340 450 Additional services: Restaurant, bar Library lobby-bar Conference hall with 40 seats Car rental Dry cleaning
2. Hotel Dnister. Large hotel complex built in the Soviet time, positioned as a 4-star hotel. The hotel is part of the network Premier. The hotel has 150 rooms (12 superior rooms, 55 junior suites, 83 standard rooms). Despite the inconvenient location (approx. 2 km away from the city centre) and a low-scale marketing the hotel enjoys rather high occupancy rates thanks to its established brand. Room prices: Room category Standard Junior suite Superior EUR per night 80 90 141 Additional services: 3 conference-halls with capacity from 30 to 180 seats (EUR 100200 per day) 2 meeting rooms (EUR 100 per day) Lobby-bar Business centre Restaurant, bar Beauty room, hairdresser Solarium, sauna Dry cleaning Bank subsidiary
3. Hotel Opera. The main advantage of this hotel is its location in the heart of the city opposite to the opera. Thanks to this the hotel has high occupancy rate without investing too much in marketing and advertising. The hotel positions itself as a 4-star facility of European level. The hotel has 51 rooms (5 superiors, 15 junior suites and 31 standard rooms). Room prices (www.hotel-opera.com.ua/en/nomeri/vartist-prozhivanna:) Room category Standard Junior suite Superior EUR per night 123 144 222 Additional services: 2 restaurants, bar Business centre Conference-hall (EUR 60 per hour), equipment is provided against additional payment Meeting-room (EUR 10 per hour) Dry cleaning
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2.2. 2.3.
Are there plans to build other hotels close to the project location? What kinds of marketing are to be applied?
No
Own website ................................................................................................Yes Travel agencies (promotional stays) ..........................................................Yes Travel agencies (low-cost travels) ..............................................................Yes Cooperation with airlines ...........................................................................Yes Advertising ..............................................................newspapers, TV, nternet Internet-based booking systems (gds/ads/ids) .......................................Yes Pinted materials ...............catalogues, brochures, booklets, posters, cards promotional videos .....................................................................................Yes direct postal distribution ............................................................................Yes souvenirs .....................................................................................................Yes PR-measures...............................................................................................Yes loyalty programs for corporate partners and customers .........................Yes 2.4. Advantages and drawbacks of the project? Advantages: convenient location close to the city centre and to the motorway from Kyiv hotel quality is in line with the market needs (4 stars), low competition in this market segment tax exemption for 10 years wide offer of services, which helps to reduce market and seasonal risks Drawbacks relatively small number of rooms and hence higher maintenance costs; 2.5. 2.6. Contact person: Name: Filled in on: Language skills: Name: Filled in on: Language skills: Telegin Oleg Vitaliyovych Telegin Oleg Vitaliyovych 15.02.2011 Ukrainian, Russian Telegin Oleg Vitaliyovych 15.02.2011 Ukrainian, Russian Who filled in this questionnaire?
Who is the present contact person for this project?
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Project of Kristal and Almaz hotel, Lviv HHH

1.1. 1.2. 1.3. Type of project: Name of project: Term of project implementation: Reconstruction Kristal and Almaz hotels Reconstruction starts 2012 Putting into operation - 2015 Reconstruction term: 2-3 years. 1.4. 1.5. 1.6. 1.7. Hotel classification (stars): Type of hotel: Number of rooms: Room category: Kristal: single - 140 Almaz: single 120 1.8. double - 279 Singles connected - 80 Single 35 EUR Double 49 EUR Note: Including accommodation, food, medical procedures.. 1.9. The hotel can offer the following facilities: Restaurant Conference hall Fitness centre Medical care Parking Note: Medical treatment facilities are provided in balneal clinic; doctor and nurse services, playing rooms form children, conference hall, fitness centre, parking, sports area. 1.10. Restaurants: Type Total number of rooms 543 519 Cuisine National/ fast food National/ fast food Quality Price 10 EUR Interior Modern design 10 EUR Other 1.Kristal main 2.Almaz main Rooms for the disabled 3 Approximate price (room price for one person): double - 320 Singles connected - 80 Rooms for the disabled 3 + Middle class (***) Tourist, sports, for medical treatment and long staying period Kristal 543, Almaz - 519
1.11. Conference-sale: Type Total number of rooms 1. Conference hall
Price
Interior Modern design and high quality decoration
Technical equipment All necessary for conducting conferences: Projector, presentation board, monitor, Wi-Fi, sound system, system of synchronized interpreting.
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PART 2: INVESTMENT PROJECTS IN UKRAINE Kristal and Almaz
1.12. Fitness centre: yes Note: there will be a sports area on the hotel territory.
2. LOCATION
2.1. 2.2. 2.3. Address: Truskavets, historic part of the city. GPS-coordinates: 4901631.32north. latitude., 2302926.46 east. longitude. Place characteristics: City centre Park zone Notes: The hotels are located at the mountain part of resort opposite the beautiful park near the natural source of mineral water. 2.4. Distance to: City centre: ........................................1km The nearest airport: .................... 100 km The nearest railway station: .........1,3 km Highway: ........................................ 25 km Transport connections (types of public transport) Route taxi ............................................ Yes Note: The airport is located 100 km away from Truskavets at Lviv. 2.5. Map:

3.1. 3.2. What is the base of building? - ferroconcrete construction. Technical information: Surface for the building: Number of storeys: flat Kristal 11 storeys, Almaz 11 storeys.
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3.3. 3.4. 3.5.
Building/decoration characteristics: hotels connected to the balneal clinic by a covered passage. Type and state of technical equipment: The hotels will be equipped in line with the latest energy-saving and renewable technologies. Features: Type Electricity Gas Drink water Waste water Quantity Status of supply chains Description

4.1. What permits for construction/licenses have you got? Type Project of land use Note: Project documentation is in the process of preparing. All necessary permits will be obtained during 2011-2112.. 4.2. Is the land purpose in line/will it be in line with project implementation of hotel construction? Yes, it is Present land purpose Maintaining resort objects 4.3. What land rights have you got at the moment? Right Land ownership Building ownership Land leasing Building leasing 4.4. Do you have a possibility to purchase land (get property acquisition) in case of absence of land ownership? Yes. Given by? When? Valid till Notes Future land purpose Issued Valid till Note

1. 2. Name of juridical person/physical person-entrepreneur: CJSC Truskavetskurort Address, phone/fax number, e-mail address, other contacts: 2, bulvar Drohobucha, Truskavets, Lvivska oblast, 82200. ph. (03247) 60000, 60020. e-mail: e.geraschenko@truskavetskurort.ua www.truskavetskurort.ua 3. Date of foundation (for juridical person): state registration - 24.03.1999
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4.
Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations)): 30322940 Extract from EDRPOU is in the annex of this form: Yes / No
5. 6. 7. 8. 9.
Founders (for juridical person): Governing body: Registered capital:
stockholders. Board of survey council, council board of directors, Director General. nominal
Main activities of Ukrainian partner: resort services. Are there any daughter enterprises, subsidiaries? CJSC Truskavetskurort includes: Resorts: Almaz, Kristal, Rubin, Yantar, Vesna, Beriska, Kashtan; Medical centres: 1, 2 3 Med-Palace; Daughter enterprise Apteka; hydro-geological regime operating station; Shevchenko Palace of culture; affiliates - Logistics enterprise, Auto transport enterprise Diet catering Veselka, Truskavetskurortteproenergo, Supporting manufacturing enterprises.
10.
Who is the contact person of the project? Name and contact information: Igor Shklyarouk 5-7, Studentska str., Kyiv 04050, ph. +38(044) 5869809, mob.+38(098)7868686 e-mail: truskavec@gmail.com Position Deputy head of Survey council board of CJSC Truskavetskurort Shareholding and management.
11. 12. 13. 14.
What is the investment strategy of Ukrainian partner? Are there any current contractual relationships on the project? Agreement on architect service. Have you (your colleagues or contractual partner) got previous experience in similar projects? We are experienced in constructing and operating hotel and office premises in Kyiv and Truskavets. What is your experience in hotel/ tourist/ restaurant business? Managing resort complex CJSC Truskavetskurort that includes resorts, villas, medical centres. www.truskavetskurort.ua
15.
What is your motivation for implementing this hotel project? Business expansion and financial result.

1. 2. 3. 4. Total investment: Equity: Loan: Finance model: Planning stage (before the start of construction) 24 700000 EUR Foreseen for project in total: 24 700000 EUR Foreseen for project in total: 24 700000 EUR Please think carefully about financing aspects of the project and answer the following questions:
Note: we invite all potential investors.
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What is in your opinion the term to amortize investments? 7 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? 1.Municipal expenses 2.Staff wages 3.Manufactured goods. 4.Food. 5.Maintenance expenses. Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? From the current turnover.

1. What can you offer to the investor? Equity participation shareholding management for a fee Credit (loan). 2. What kind of investor are you looking for? Investor Equity participation (In the form of LLC or JSC) Significant part of investor (>50 %) Easy part of investor (<50 %) Management partner Creditor (Loan) Brand partner Building company Architect/engineering company 3. 4. What amount should be invested and what are the investors rights in this connection? Proportionally to the investment amount. Should investment be made directly to Ukraine or via some off-shore companies? No difference Preferred Acceptable Objectionable
V. MARKET ANALYSIS
1. GUESTS
1.1. Target group: People with digestion diseases, problems on urinology, genecology, diabetes, those hardworking who would like to get rid of stress, to go on rehabilitazation. Corporative clients. Opening 49 EUR In 5 years 83 EUR
1.2.
Average room price for one person:
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1.3.
What occupancy do you predict? 2012 - 48 % 2016 - 72 %
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels: Are there some other hotels being built in the near? Karpaty, Perlyna Prykarpattya, Shakhtar. Yes, some small villas.
What marketing steps are you planning for hotel popularization? Own website ........................................................................... Yes Cooperation with tourist companies (night stays) .............. Yes Cooperation with tourist companies (budget trips) ............ Yes Cooperation with aircraft companies ................................... Yes Advertising newspapers, tv, internet GDS systems, tourist portals, on-line booking systems ..... Yes Corporative client POST-terminals
2.4.
What are the weak and the strong points of the project? The main advantages: 1. Unique mineral water sources of well known balneal resort (Naftousya, Maria, Sofia and others), Truskavets is the only one resort in Europe which main medical profile to treat urine diseases among many other health problems. 2. Well known brand Truskavetskurort; 3. Own medical base. 4. Covered passages to different buildings. 5. Absence of medical complexes of category 2-3* at the acceptable price.. 6. Good location in the historical centre. 1. A large investment amount; 2. Loans reduce the level of financial indecency and liquidity of an enterprise; 3. Repair will require the hotel to be closed for a while; 4. Thus financial loss; 5. Absence of an official 2-3* classification; Shklyarouk Igor e-mail: truskavec@gmail.com mob.+38(098)786-86-86
2.7.
Closeness to the most important infrastructure objects. Weak points:
2.5.
Contact person :
2.6. 2.7.
Who fill in the form? Name: Shklyarouk Igor Date: 03.02.2011 Languages: English, Ukrainian, Russian. Who is the current contact person of the project? Name: Date: Languages: Shklyarouk Igor 03.02.2011 English, Ukrainian, Russian.
2.8.
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Project of Stryiska hotel, Lviv HHH

1.1. 1.2. Type of project: Name of project: Term of project implementation: Hotel classification (stars): 1.3. 1.4. 1.5. Type of hotel: Number of rooms: Room category: new construction Constuction of municipal hotel complex (capacity 344 beds) in Lviv on rented territory at 121, Stryiska str. Construction starts in 2011, operation since the first quarter of 2014 Middle class (***) hotel for budget tourism 172 (one hundred seventy two) Single / Double / Suite / Apartments Double (167 rooms) ................ 50,00 EUR Suite (5 rooms) ....................... 90,00 EUR 1.6. The hotel can offer the following facilities: Restaurant - one: ........................96 seats Conference-hall one: ............ 450 sq. m. Fitness centre - one: ....................50 sq.m. Business centre - ................................ one Parking............................................90 cars 1.7. Restaurants: Type Total number of rooms 96 Cuisine European (limited service) Quality high Price 15 / per cheque Price Interior Technical equipment Fully equipped for conference conducting. Interior Other 1.Restaurant 1.8. Conference-sale: Type Total number of rooms 300 1. Multi-functional 1.9. Fitness centre.
Approximate price (room price for one person):
Note: all necessary equipment
2. LOCATION
2.1. 2.2. Address: Place characteristics: 121, Stryiska str., Lviv, Ukraine Suburbs
Note: Lviv suburban zone
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PART 2: INVESTMENT PROJECTS IN UKRAINE Stryiska
2.3.
Distance to:
City centre: .................................................. 7 km The nearest airport:: .................................. 4 km The nearest railway station: ...................... 5 km Highway:0,4 km
Transport connections ( types of public transport): Bus/Trolleybus ....................................Yes 0,2 Route taxi ........................................................ Yes 2.4. Map :

3.1. What is the base of building? Technical information: Number of storeys: 5 3.2. 3.3. Building/decoration characteristics Separate building Features: Type Electricity Gas Drink water Waste water Amount Is being calculated Is being calculated Is being calculated Is being calculated Status City supply chains near territory City supply chains near territory City supply chains near territory City supply chains near territory Description Ferroconcrete construction.
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If building/ reconstruction is on, please describe state of building: State of building: Building state: Expenses at present: New building Construction has not begun yet 400.000 Euro
Is constructing continue\ stopped? : construction has not begun yet. Present situation with contractual agreement: Agreement with building company has not being reached yet.

4.1. What permission for construction/licenses do you have? Type Project of land use Project documentation State expertise 4.2. 4.3. What permits/licenses would you need to get? Approval of working project (expertise), permit to start constructing. Is the land purpose in line/will be in line with project implementation of hotel construction? Present land purpose Construction of hotel complex with capacity of 100 persons State expertise 4.4. What land rights have you got at the moment): Right Leasing agreement for 10 years. Building ownership 4.5. Granted by? When? Valid till 2021 Valid certificate on ownership Notes Future land purpose Construction of hotel resort complex with capacity of 344persons Issued 2008 Being elaborated Valid till Notes
Do you have a possibility to purchase land (get property acquisition) in case of absence of property right for land? Yes.

1. 2. Name of juridical person/physical person-entrepreneur: Private enterprise Firma Garantia. Address, phone/fax number, e-mail address, other contacts:: 70-B, Shevchenko str, Lviv ph. +380 50 3375010 fax +380 32 294 9099 firmagarantia@gmail.com 3. 4. 5. 6. Date of foundation (for juridical person) 2002 . Founders (for juridical person): Private persons Governing body Founders and Director Construction Main activities of Ukrainian partner:
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7. 8. 9.
Registered capital:
Confidential information No.
Are there any daughter enterprises, subsidiaries? Who is the contact person for this project? Name and contact information: Ivan Loun mob. +380 50 3375010 What are his/her functions? Head of project, hotel consultant Shareholding, management render to hotel operator.
10. 11. 12. 13.
What is the investment strategy of Ukrainian partner? Are there currently any contractual relationships on the project? Agreement on intentions for cooperation with hotel operator. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? 9 years of operation activities and project-management in hotel business.
14.
What is your motivation for implementing this hotel project? Commercial interest.
1.
Total investment: Planning stage (before construction starts) ...............................60,000 EUR Building stage ......................................................................... 6,000,000 EUR Funds for construction ........................................................... 4,000,000 EUR Funds for settlement .............................................................. 2,000,000 EUR
2.
Justification of costs (table with all important cost figures).
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3.
Equity: Foreseen for project in general: .......................................... 6,000,000..EUR Available .....................................................................................100,000..EUR Already invested in the project ................................................500,000..EUR Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 5 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? See the table above.
4.
5. 6.
What annual turnover can be expected after completion? What annual turnover will be in the future? 1,700,0000 EUR Are you going to establish amortization fund for operation costs or will the financing be from the current turnover? Yes, according to requirements of hotel operator.

1. 2. 3. What can you offer to the investor? Shareholding of full redemption of project. What amount should be invested and what are the investors rights in this connection? 700,000 Euro 100 per cent share. Should the investments be made directly to Ukraine or via some off-shore companies? No difference
V. MARKET ANALYSIS
1. GUESTS
1.1. 1.2. Target client group: Business and vacation budget tourists Average room price for one person: Since opening .................. 50,00 EUR In 5 years .......................... 58,00 EUR 1.3. What occupancy do you predict? 63 per cent annually
2. COMPETITIVENESS
2.1. 2.2. 2.3. Please describe three nearest hotels: Jockey hotel and Grand resort hotel. Are there some other hotels being built in the near? No. What marketing steps are planned for hotel popularization? All measures taken by hotel operator.
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2.4.
What are the weak and the strong points of the project? Budget hotel positioning that is rare for Lviv market, good road connections, closeness to the ring road and the airport.
2.5. 2.6.
Contact person: Who filled in this form? Date: Languages:
Ivan Loun Ivan Loun 15.02.2011. Ukrainian, Russian, English Ivan Loun
2.7.
Who is the current contact person of the project?
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Project of Volosianka Village hotel, Lviv region HH

The Project is a winner in the prestigious Europe and Africa Property Awards 2009 (CNBC-2009) International Programme dedicated to finding best property development projects worldwide.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8.
Project type (new development, renovation, further construction etc.): New development. Project name: Hotel facility of suite type (160 places) in Saddle Stow, Volosianka Village, Skoliv Raion, Lviv Oblast Scheduled commissioning date: 2Q/2012. Hotel rating (stars): (see: www.hotelstars.eu): Business (**) Hotel theme: (business, sports, tourist, long-stay accommodation etc..) suite type with a spa facility and mixed-use park area. No. of rooms: Room categories: 84 rooms(with an option to add 19 additional rooms). Single (studio): 39 / Double: 19 / Executive: 18 / Suite of rooms: 8 Single High season: Midterm: Low season: Holidays: EUR80 EUR44 EUR28 EUR120 Double EUR110 EUR68 EUR52 EUR160 Conference hall: 1 Swimming pool: 1 Fitness centre: 1 Saunas: 2 Business centre: 1 Parking lot: 1 Executive EUR152 EUR72 EUR56 200EUR Suite of rooms EUR184 EUR112 EUR80 EUR240
Project duration (show expected development commencement and commissioning dates):
Indicative price (of the room):
1.9.
Hotel servicing facilities:
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PART 2: INVESTMENT PROJECTS IN UKRAINE Volosianka Village
Note: as per proprietary concept, the hotel facility will have other premises, e.g.: cloak rooms for individual storage of skis; sports inventory hire; massage parlours etc. 1.10. Fitness centre: a full set of fitness stations. Note: The hotel facility concept envisions a kitchen in every suite of rooms.
2. LOCATION
2.1. 2.2. 2.3. Location: GPS-coordinates: Location outline: Saddle Stow, Volosianka Village, Skoliv Raion, Lviv Oblast. 48.80391, 23.44476 . Suburbs, Park area
Note: the hotel facility is located in the recreational area of the Carpathian mountains and has a park of its own with the total area of 2.9 ha. 2.4. Distance from: The downtown area: ............................ 3 km Nearest airport: Lviv ....................... 130 km Nearest railroad terminal: .................. 3 km Motorway (Kyiv Chop): ....................31 km 2.5. Commuting options (public transport): Bus/trolley bus ..........................Yes 0.5 km Minibus taxi ................................ Yes 0.5.km Note: In accordance with the Plan of Preparations for EURO 2012, the auto road Skole-Volosianka is currently refurbished. .2.6. Map:
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3. DEVELOPMENT QUALITY AND TECHNICAL FACILITIES

3.1. What has been envisioned as the basis for development? (e.g., reinforced concrete elements, a cottage, a manor etc.) The structural scheme of sections is of framework and stone type with transverse brick-made curtain walls and cast reinforced concrete pillars in outside walls. The pillars together with horizontal cast girders make the framework with supporting filler bonds 3.2. Technical details: Development surface: rocky ground of 4-5 categories. Number of storeys: the building has varied number of storeys, from four-storey block to six-storey one, plus an attic floor.
3.3.
Development/interior design features (e.g., availability of adjacent buildings; special facade etc.): Hotel with spa centre. Boiler house Parking lot Maintenance facility (administration, storage areas and other support premises) Technological site Hydrotechnical facilities Facade finishing is a combination of water-resistant stucco, natural stone and face brick.
3.4.
Type and condition of utility installations (e.g., use of renewable energy sources; sewage water recycling etc.): System for utility and drinking cold and hot water supply, circulation water supply system, household, industrial sewage and storm collectors have been designed. Heating, ventilation and air conditioning systems, including emergency smoke evacuation systems, have been designed in accordance with applicable requirements.
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3.5.
Specific features: Type Electricity Q-ty Condition The following electric technical fixtures in the hotel facility have been envisioned: 1.Working electric lighting (emergency lighting from rechargeable battery, 2. Power equipment 3.Phone network, 4.Radio network, 5.TV receivers and acoustic alarm. Hook-up to the existing medium-pressure gas supply line Features As per U 131-2006/2, of 07.04.2008.
Natural gas
Medium pressure gas supply line U 33-222, of 07.04.2008: supply to modular heat generator of TM type. No gas supply to the hotel building envisaged. From artesian well (please refer to the Hydrogeological Opinion by ZAKHIDUKRGEOLOGIA, SE).
Drinking water
The source of water supply to the hotel are water-supply wells of own intake facility (please refer to the Hydrogeological Opinion by ZAKHIDUKRGEOLOGIA, SE). For sewage disposal, a separate system of household, industrial sewage disposal and storm collectors has been envisioned with sewage evacuation into designed external sewage networks
Sewage
1st phase comprises local treatment plants at Vedmezha Vezha Hotel Facility (U No.200, of 20.01.2009); 2nd phase includes local treatment plants of Biotal type.
3.6.
Please provide characteristic of the building in the event of construction/renovation commencement: Development project condition (new development; refurbishment; modernisation): The new hotel facility development project consists of a building that comprises four sections separated by vertical contraction joints. Development phase (foundation pit, erected structure (e.g., 20%), ready erected structure): Already completed: the arrangement of foundations for Blocks , , and D; also one storey of Block A and two storeys of Block D complete with brickwork. Project availability percentage-wise is around 20% overall.
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Funds spent to date:
EUR 845,000
Building works continue/halted? The construction works continue but at a slow pace. Current situation with the work and labour contract: Contract with development company is effective
4. BUILDING PERMITS AND LAND TITLE

4.1. What building permits/licenses do you already have? Type Land development project Design project documentation State expert assessment Building permit Fire safety 26.03.09. 04.09.09 27.12.11. Issue date Valid through Notes Valid Until completion of development Until completion of development Yes Yes Yes
Sanitary and epidemiological inspection
Note: Positive comprehensive State Expert Assessment Opinion by LvivDerzhBudExpertiza, No. 1376, of 2008. 4.2. 4.3. What permits/licenses do you still need to obtain? All permits and licenses obtained. Does/will the designated use of the land plot comply with the hotel development project implementation? Current designated use of the plot Developing and servicing hotel facility 4.4. Future designated use of the plot Developing and servicing hotel facility
What land title do you currently have (Please specify the land title you have (property right to land; long-term lease) and the type of documentary proof of that): Title Property right to land plot Estate in freehold Land plot tenancy agreement From Company co-founders 02.10.08 For 49 years Registered with the Land Administration Authority on 08.10.08 Acquired from When? Valid through Notes
Property lease agreement Other (e.g., the right to use the land of another) 4.5. In absence of the title to land plot, will it be possible to buy/acquire ownership of that land plot? The Company has the priority right to acquire the land plot.
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1. 2. Name of legal entity/First, second names of private entrepreneur: Hanroc Developments, UA, Limited Liability Company Registered address, phone/fax number, e-mail address, other contact details: Legal address: Mailing address: 3. 4. 5. 33 Shevchenka St., Volosianka Village, Skolivsky Raion, Lviv Oblast Office 207 B, 34 Vasylkivska St., Kyiv 03022 Phone: 044 499-50-11; fax: 044-499-50-10; e-mail: sales@uaproperty.com USREOU ID: 35010494. Yes Oleksandr Sviatoslavovych Abramovych, Ukraine national: 30%; Jeremy Spencer Cornach, UK national: 30%; Emma Spencer Cornach, UK national: 20%; Martin Angelov Dichev, Bulgarian national: 20%. General meeting of Company founders Construction Development Real estate management 8. 9. 10. Authorised fund: nominal: paid: 100% (EURO20,000) No Subsidiary companies, branches or related parties, if any
Registration date (for legal entity): 26 March 2007 Registration ID (USREOU): Founders (for legal entity): The excerpt from USREOU attached hereto
6. 7.
Managing bodies:
Main lines of business of the Ukrainian partner:
Who is the contact person for the Project (name, contact details, experience) Oleksandr Sviatoslavovych Abramovych Phone: 044-499-50-11, 050-384-44-44 Functional responsibilities within the company? Manager, co-founder
11.
What is the Ukrainian partners investment strategy within the Project? Strategy of the Ukrainian partner is, as follows: to attract investments in order to accelerate the hotel facility development and commissioning; long-term management with optional further sale of rooms and general-use areas.
12.
Are there any contractual relations related to Project implementation to date? 2. Main Development Contract. 3. Designers Development Servicing Contract 4. Development Technical Supervision Contract
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13.
Do you (or your employees/contractual partners) have previous experience of participation in similar projects? The Company co-founders have under their belts a number of development projects successfully implemented on the territory of Bulgaria (two suite-type hotel facilities at ski resorts; villas for summer vacations). The Project won a prestigious International Europe and Africa Property Awards 2009 Competition dedicated to searches of best real estate professionals worldwide.
14.
What is your experience in hotel/tourism/restaurant business? The Company co-founders have previous experience of suite-type hotel facilities operation in Bulgaria via a company of their own and tourism operators.
15.
What motivates you to implement the above hotel development project? To implement a trendy development project and to receive stable profits.

1. Total capital for construction: EUR4,680,000 Design phase (before the commencement of construction): EUR120,000 (already disbursed) Construction phase: 2. Funds for construction: Funds for finishing works: EUR4,560,000 EUR4,200,000; of these, EUR650,000 already disbursed EUR360,000; of these, EUR75,000 already disbursed.
Cost certification: (table with all important cost indicators): [Table] is annexed to this Questionnaire. Calculations include the building phase and the one of further hotel facility operation within five years.
3.
Your own invested capital:
Envisioned for the whole project, in general: EUR200,000 (as contributions to the Authorised Fund); Available: EUR100,000 (as a contribution to the Authorised Fund); Currently invested in the Project: EUR20,000, as of 01 February, 2011 (the Authorised Fund fully paid).
4.
Borrowed funds:
Envisioned for the whole project, in general: EUR6,415,000 Available: EUR1,800,000 (planned drawing as per investment agreements after the completion of construction) Currently invested in the Project: EUR1,670,000 (of this amount, EUR845,000 directly invested into construction and assembly works)
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5.
Financing model: What is the envisaged term of investment depreciation? The planned return on investments has been envisaged in five to six years depending on the financial model of facility operation and feasibility of subsequent sale of the premises. What current manufacturing (electricity, staffing) and operational (current repairs/major repairs) costs have been envisioned? As per indicators in the Table.
6.
What annual turnover amounts can be expected after the completion of development? What will the annual turnover be in future? As per indicators in the Table. Will there be a depreciation fund for operational expenses established or the funding will be provided from current turnover? The financing shall be provided from the annual turnover.

1. What could you offer to an investor? Shared participation in the Company (increase of its Authorised Fund) and investments in the development of the hotel facility. What type of investor you are looking for? Investor Participation with own capital (e.g., as a limited liability or joint-stock company) Investors considerable participation (>50 %) Managing partner (performing managerial functions) Principal holder (loan) 2. Desirable Acceptable at 49% Desirable Acceptable Undesirable
What funds the investor will have to invest and what rights related to such investment he/she will obtain? Additional investment of EUR2,800,000 for five years. The investor will obtain property rights on 50% unsold premises and 80%, on profits received from their further operation + 49% from profits received from overall operation of the facility. Will the investment have to be a direct one in Ukraine or executed via offshore companies? Not important
3.
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V. MARKET RESEARCH
1. GUESTS
1.1. Target structure of hotel visitors: The hotel facility is meant for renting out suites and general-purpose premises round the year (private vacations, ski resort, recreational activities, sightseeing, active leisure, mass events: business meetings, forums, trainings, various corporate events etc.). 1.2. 1.3. Average room price: At opening: EUR80 Five years after opened: EUR100 What are your hotel occupancy rate forecasts? January ................................ 100 % February ................................ 80 % March ..................................... 60 % April ........................................ 30 % May ......................................... 40 % June ........................................ 60 % July .......................................... 80 % August ..................................... 90 % September .............................. 50 % October ................................... 30 % November ............................... 30 % December ............................... 80 %
2. COMPETITIVENESS
2.1. Please provide description of three nearby hotels: There is Vezha Vedmezha Hotel Facility beside our development project. It has 25 executive and positions itself as a hotel for VIP visitors. The average daily price of room is at EUR120. Zakhar Berkut Hotel is located at the entrance to the facility territory and comprises a five-storey building built in 2005. Has 24 rooms of various categories, of them eight Standard, 12 semi deluxe, and four de luxe rooms. There are no other objects potentially competing with our hotel nearby. 2.2. Are there any other hotels developed/scheduled for development nearby? Given the individual development concept (a suite-type hotel), no similar projects will be developed in the region in the nearest future. 2.3. What marketing tools have been planned for hotel promotion purposes? Own web site .........................................................................................Yes Via tourism companies (as overnight accommodation) .....................Yes Via tourism companies (for economy-class tours) ..............................Yes Collaboration with air carriers ............................................................... No Advertising: .....................................................printed media, TV, Internet Note: the partner office in the UK guarantees wide attraction of English-speaking customers.
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2.4.
What are the strong and the weak points of this Project? The Project, while unique for the region, in the same time embodies successful experience of similar European projects.
2.5. 2.6.
Contact person: Name: Filling-out date:
Oleksandr Sviatoslavovych Abramovich Svitlana Mykolayivna Pshenychna 15 February 2011
Name of the person who has filled out the Questionnaire?
Command of languages: Ukrainian, Russian Who is the current contact person for the Project? Name: Filling-out date: Oleksandr Sviatoslavovych Abramovich 15 february 2011.
Command of languages: Ukrainian, Russian, English
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Project Fortress of Hetmans hotel, Tchernivti region HHHH

1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. Type of project: Name of project: New construction Fortress of Hetmans Hotel and tourist complex with additional services 2,5 years since start of financing Hotel classification (stars): Type of hotel: Room capacity: Room category: First class (****) Tourist. 48 rooms Single / Double / Suite / Apartments
Note: Hotel complex will include suite, semi-suite, standard rooms and hostel. It is planned to design rooms and decoration in Middle age style, they will reflect the style of people inhabiting Khotyn fortress. 1.8. Approximate price (for the room for one person): from 8 to 50 uro per day, depending on the room class Note: One of complex exposition (barracks) will be used as hostel at night. All rooms will be decorated with stone, wood and forged products. The hotel can offer the following facilities: Restaurants: 3 Conference hall Swimming pool Fitness centre Sauna Medical care Business centre Parking Currency exchange Note:. Turkish bath; Museum expositions (150m2): Fortresses of Ukraine- 14 (reconstructed 1:50 with descriptions); Diaram of Khotyn battle of 1621; Hall of Khotyn fortress history of Moldovian, Turkish, Polish, Russian and Kozaks periods.; Expositions will include pictures, manekens, clothes, armour, flags.. Fortress court with viewing platform 17 century-styled. Exposition of soldier barracks (Polish, Kozaks, Turkish and Russian); Museum prison; Chapel; It is plan to place sculpture composition of heroes of Khotyn fortress before the fortress (Turkish sultan, Russian marshal, Polish kings Khodkevych, Sobesky, Ukrainian Hetmans: Khmelytsky, Orlyk, Moldovian host Shtefan The Great. Two fortresses with viewing platform are 17 century-styled.
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PART 2: INVESTMENT PROJECTS IN UKRAINE Fortress of Hetmans
1.9.
Restaurants: Restaurant complex: Capacity - 120 seats Banquet hall (conference hall) 120 seats Banquet hall - 16 seats Fast food cafe - 100 seats They are also 17 century-styled having expositon on the history of Hetmans Petro Sagaidachnyi and Jan Sobeskyi. Cuisine, personnel clothes are all Kozaks styled.. Products are received from the farmers, menu and prices in regards to different clients group. Pizeria - Hachapuri 60 seats Turkish style, all meals are being preprared in front of clients. Wine cellar/banquet hall 12 seats.
1.10. Conference hall: Type Total number of seats 120 Quality Price Interior Technical equipment Will be fully equipped for conducting conferences, meetings etc. 1. Conference hall
1.11. Fitness centre: Note: fitness centre will also include therapeutic exercises.
2. LOCATION
2.1 2.1. 1, Fortechna str., Khotyn, Chernivetska oblast. Ukraine Place characteristics: Park zone
Note: Land for complex neighbouring tot he territory of state museum zone Khotyn Fotress. Accoding to marketing data 380 thousand tourists visited museum Khotyn Fortress, one million tourists visited Kamjanets-Podilska Fortress 25 km from Khotyn. 2.2. Distance: City centre: ...................................................1.km Nearest airport : ..................................... 60. km Nearest railway station: ......................... 25. km Highway: ......................................................2 km 2.3. Transport connections (( types of public transport ): Bus/Trolleybus ................................................Yes Route taxi .......................................................Yest Note:. City of Khotyn is situated at the junction oft he four regions, at the crossroads of internal and international routes: Romania, Moldova, Belarus, Poland Chernivtsi Kyiv route Chernivtsi Chishinau route Dnister reservoir is one of the biggest and beautiful in Europe, it is plan to organize here new water routes and other services.
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2.4.
Map :

3.1. What is the base of building? Reinforced concrete structure, stone Ratushnyak, wood, stone, forged items Total area of main building 6500m2 3.2. Technical information: Building ground: Number of storeys 3.3. rock 3 storey Rest rooms (20 persons) and sauna (30) one the ground floor. (20 ) (30 ), Ground floor will also have museum expositions (15002), 1st floor restaurant complex, 2nd and 3rd hotel complex with swimming pool and additional services. City of masters will be an additional building next to the complex: Museum-production units: Bakery Butchers Drinks Diaries Pickles, canned All rooms will be divided into two:
Building/decoration characteristics:
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The first one where you can see the different appliances, dishes, which were made in ancient times. The second will present the ancient recipes of products that are in place to try or buy. Museum shop or restaurant. Workshops: Forge Pottery Embroideries Weaving basket weaving Woodcarving Art in these workshops can be seen as manufactured products and can immediately purchase or order. 3.4 Type and state of technical equipment: When choosing the place it was taken into accaount availability of convenient roads, gas and electricity networks, drind and waste water. 3.4. Features: To secure saving energy and environmental protection project documentation contains system of minimization of natural resourses use and all modern technologies of new technologies in the construction of clearage facilities and heating. Type Electricity Gas Drink water Waste water Amount Status Description

4.1. What permission for construction/licenses do you have? Available documentation: Project documentation for construction of Fortress of Hetmans complex, approved projects on external networks connections. Historical-urban justification being developed by Kyiv instutite of Project restoration. Permit to preparatory works is received. Prepared building site (worker housing, kitchen, warehouse and office space, toilet). Trenches ready. Project documentation of clearage plants - at the stage of passing environmental review. Note: land (0,97 hectors) in private property. 4.2. 4.3. What permits/licenses would you need to get? Permit to start works as part of ecological expertise documentation. Is the land purpose in line/will be in line with project implementation of hotel construction? Yes, it is. The land purpose is contruction of new complex.
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4.4.
What land rights have you got in the moment? Right Land ownership Given by? Sold by the private person in 2009 When? Valid till Note Available state ownership certificate.

1. 2. 3. 4. Name of juridical person/physical person-entrepreneur: The project is going to be conducted by Fortress of Hetmans Ltd and New Fortress. Address, phone/fax number, e-mail address, other contacts: 1, Fortechna str., Khotyn, Chernivetska oblast. Ukraine phone/fax 0373 528355 Foundation date ( for juridical person:): January 2009 . Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 36093461 Extract from EDRPOU is in the annex of this form. Founders (for juridical person): Halan Valerij born in 1958 . entrepreneur, co-owner of project Vakoula Vitaly born in 1971 entrepreneur, co-owner of project; Houlyk Roksolana born in 1990 entrepreneur, co-owner of project; 5. 6. Governing body : Council of founders Main activities of Ukrainian partner: Implemented investment projects, their financing sourses: Mountain - Ski complex Migovo, Chernivtsi region .. s.Myhovo - own funds, shares; - Rest "Legend of the Carpathians, Ivano - Frankivsk region .. s.Kuty - own funds Shareholders - restaurant - hotel complex "Hetman Fortress", a suburb of Kyiv, s.Hatne - own funds, shares; - Chain of jewelry stores - Chernivtsi and Frankivsk region - own funds, shares; 7. 8. Registered capital: nominal / paid-in Are there any daughter enterprises, subsidiaries? Main activity of founders is hotel and tourist business. Who is the contact person for this project? Name and contact information: Vakoula Vitaly mob. (050) 519 46 71 What are his/her functions? Director 9. What is the investment strategy of Ukrainian partner? Project elaboration, building, putting into operation and long-term operation or sale. 10. 11. Are there currently any contractual relationships on the project? Agreements with general contractor and construction crew. Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes. See .6. No
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12.
What is your experience in hotel/ tourist/ restaurant business? More than 9 year experience in building and operation of recreation zones and mountain-ski complex.
13.
What is your motivation for implementing this hotel project? Tourist business nowadays is one of the most perspective business branches. Mother Nature has created all conditions for developing tourism in our region: mountains, lakes. Rivers, historical sites and cultural sites and quite not poluted ecology. There is an opportunity to take an advantage of current touristic flow more that 300 thousand tourists annually. There is no analogue for this project taking into account its concept that will help attract a vast amount of tourists from different countries.

1. Total amount: Planning stage (before the start of construction) ..................EUR Building stage ..................................................................................................................EUR Building costs ..................................................................................................................EUR Costs for settlement ........................................................................................................EUR 2. Justification of costs: Land purchase and documentation ..............................................................- 606 000 EUR Project documentation and expertise ... .....................................................- 152 000 EUR Building materials, wages, municipal costs. ......................................... - 4240 000 EUR (1? = 606 EUR. 7000?= 4240 000 ..) Building materials, wages, equipment of external and internal communacations ...................................................................... - 749 000 EUR condioning fire satety electricity video survey heating gas telephone, internet, radio fire alarm drink water tv ventilation waste water Territory design (4000m2):..............................................................................- 550 000 EUR - 14 museum houses of folk craft - 2 entry towers - outdoor advertising - fence and viewing platform (on perimeter 200 p/) Internal design: ..................................................... (757 EUR. 7 000m2) - 5 303 000 EUR - equipment of restaurant, hotel, museum manekens (36) weapon copies (150) - furniture (all the rooms) flags, banner, emblems - sanitary toilet equipment copies of documents. maps - matrasses, textile, carpits Ukraine castle mocks (16pieces) - lamps other musiums exhibits pictures (200)
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Preparation of documents:.............................................................................- 290 000 EUR - putting into operation - complex launch - advertising (during constructing) - staff training - staff uniform Total project costs: ........................................................................................- 11 880 000 EUR. Note 3. Subject to change due to change of dollar and market prices. Equity: Foreseen for project in general:..............................5 950 000.EUR Available .....................................................................5 950 000 EUR Already invested in the project ...............................1 020 000.EUR 4. 5. Loan: Finance model: PLANNED INCOME: 1. Accommodation (hotel, hostel)80 persons. 15 EUR 250 days = ..................................................300 000. EUR 2. Meals (fast food ) - 400000 p. 3 EUR = ............................................ 1 200 000 EUR 3. Meals (restraurants, pizzeria) - 180 persons./day 15 EUR 300 days = .............................................. 810 000 EUR 4. Hot bath - 100 persons 150 days 1,5 EUR = ......................................... 22500 EUR 5. Sauna - 4 persons. 11 EUR 200 days = ...................................................8800 EUR 6. Services (billiards, shops, photo salon etc) - 30000 persons. 1,5 EUR. = ...................................................................450 000 EUR 7. Historical exposition 500000 persons. 3 EUR = .................................. 1500 000 EUR 8. Host court 300000 persons. 2,5 EUR = ................................................750 000 EUR 9. Toilets: - 300000 persons. 1hryvnia = ...........................(300 000hrvn) 28 000 EUR Gross income : ................................................................................................... - 5 070 000 EUR Expenses: ........................................................................................................... - 2 015 000 EUR Profit: .................................................................................................................. - 3 055 000 EUR EXPECTED FINANCIAL FLOWS: 1 year - construction ................................................................................................................0 2 year construction, operations ........................................................................................0% 3 year - operation .............................................................................................................. - 80% 4 year ......................................................................................of planned profitability Note Provided planned profitability: Total income for 3 year operation .............................................................. ~ 11 660 000 EUR Total profit .........................................................................................................- 7025 000 EUR 100% 5 year- ................................................................................................................................ 120% Foreseen for project in general ........................... 11 900 000EUR
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PROJECT PAYBACK - 4 YEARS. Profitablity can increase and payback period will reduce provided good advertising and good control and organization of work. Total profit for 3 years ........................................................................... - 7 025 thousand EUR Market price of completed business .............................................................- 19 million EUR

1. What can you offer to investor? Purchase of 50% project; Purchase of object at the present stage; Constructing and putting into operation by means of investor expenses conditions to be negotiated. What kind of investor are you looking for? Investor Significant part of investor (>50 %) Easy part of investor (<50 %) 2. What amount should be invested and and what are the investors rights in this connection? 50 per cent of building costs, full partnership Should the investments be made directly to Ukraine or via some off-shore companies? No differece Preferred Acceptable Objectionable
V. MARKET ANALYSIS
1. GUESTS
1.1. Target client group: Tourist coming for 2-4 hours (about 350000 persons visited Khotyn fortress in 2007) Tourists coming for 3-7 day tours. Locals (week-end tours, holiday tours) Hotel and restaurant services to travellers (1-2 days) Schools of the region 1.2. Average room price for one person: After opening ......................... 16 EUR In five years after opening ..........EUR 1.3. What occupancy do you predict? January ...............................30 % February ..............................30 % March ..................................30 % April .....................................60 % May ................................... 100 % June .................................. 100 % July ........................................... 60 % August...................................... 60 % September............................... 70 % October .................................... 70 % November ................................ 30 % December ................................ 30 %
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: The nearest hotel cannot compete because of their capacity is 3-8 rooms and low level of service. Are there some other hotels being built near? 2.3 What marketing steps are planned for hotel popularization? Own website .....................................................................Yes Cooperation with tourist companies (nights stay) .........Yes Advertising ..................................... newspapers, tv, internet Commentary: minimal risks (tourist flow of more that 350 thousand persons per year and is increasing), no competitiveness
It is plan to increase tourist flow by means of services, advertising and well-khnown tourist routes. reduce of building costs (company has workshops for producing building material and design organization of business sphere, providing with other services. investment in liquid main funds big amount of services provided in one complex attracting tourists from nearest recreation zones etc. 200 jobs will be created that will affect positively social state of region.. 2.3. What are the weak and the strong points of the project? Advantages: unique, no analogue; close to state museum zone Khotyn Fortress; big amount of services provided in one place; no analogue to the size of land territory; no one in the near to compete Risks: Un-timely financing will lead to freezing of funds for construction Unstable political and economical situation in Ukraine. All other risks were carefully considered and recognized as not affecting profitability. 2.4. 2.5. Contact person:Vakoula Vitaly mob: (050) 519 46 71. Who filled in the form? Name: Date: Languages: Name: Date : Languages: Vakoula Vitaly, Fortress of Hetmans Ltd., Director 02.02.11 Ukrainian, Russian Halan Valeriy, Fortress of Hetmans Ltd , co-owner 02.02.11 Ukrainian, Russian, Czech.
Who is the current contact person for the project?
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2.6.
Other: Already carried out works: Prepared documentation; Purchase of 1 hector land territory; All project documentation; External and internal Design Historical exposition approved; Territory prepared; Communications; Trachea ready 80 60 2; Purchase of building material (20%); All historical items are being produced in the workshops; Presentation of the project; Launch of website Monitoring of similar tourist objects, cooperation with Ukrainian and European experts. Annex business plan of Fortress of Hetmans Ltd.
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Project of Amadeus hotel, Khmelnytsk region HH

1.1. 1.2. Type of project: Name of project: New construction Reconstruction of the lost historic building on Polsky rynok square 3/5, 3/5, 3/6., Kamianets Podilskyi, Khmelnytska oblast. Preparation of project documentation (6 months), building (3 years) 1.3. 1.4. 1.5. 1.6. Hotel classification (stars): Tourist class(**) Type of hotel: Room number: Room category: Tourist 60 Single / Double/twin / Suite / Apartments
Note: a room with two separated beds and the one with one double bed for two persons, extra bed also available 1.7 1.7. Approximate price (room price for one person): The hotel can offer the following facilities: Restaurants: 3 Conference-hall Sauna Business centre Parking 1.8. Restaurants: Type 1.lobby bar 2.main restaurant 3.Beer pub 1.9. Conference-hall: Type Total number of seats 100 Quality Price Interior Technical equipment Equipment for making presentations, wireless internet, 1. Conference-hall High quality lighting, 20 EUR/ minimalism ventilation and hour conditioning sound system Total number of seats 30 100 60 Cuisine minimalism National, European Beer menu, starters minimalism National theme, European Used for breakfasts Price Interior Other Double/Twin 40 EUR Note: extra bed is paid extra.
1.10. Location: 1.11. GPS-coordinates:
Polsky rynok square, Kamjanets Podilsky, Khmelnytska oblast. 48.675254, 26.571336
1.12. Place characteristics: Centre of old city Notes: centre of National historic-architecture zone Podilski Tovtry
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PART 2: INVESTMENT PROJECTS IN UKRAINE Amadeus
1.13. Distance to:
City centre: ...................................................2 m The nearest airport: .............. 85 m (Chernivtsi) The nearest railway station: ....................... 4 m Highway: ........................................................ 3 m
1.14. Transport connections (types of public transport): Route taxi ..........................................................Yes Note: taxi (for instance to railway station -2 EUR) 1.15. Map:

2.1. 2.2 2.2 2.2. What is the base of building? Ferroconcrete construction. Technical information: Building ground: soil Number of storeys: 4 Building/decoration characteristics: Features: Type Electricity Gas Drink water Waste water Amount Status Connection network on another territory Description
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3.1. What permission for construction/licenses do you have? Type Project of the land use Issued 2009 Valid till Notes 2012 Construction permit
Note: Permit for preparatory works on reconstruction the lost historic building. What permits/licenses would you need to get? Present land purpose Commercial not housing funds 3.2. Right Land leasing Other: tender 3.3. Do you have a possibility to purchase land (get property acquisition) in case of absence of property right to land? It is impossible to purchase land as it belongs to National historic-architecture reservation. Is the land purpose line/will be in line with project implementation of hotel construction? Future land purpose Commercial not housing funds Given by and when? Valid till Note
What land rights have you got at the moment?:

1. 2. Name of juridical person/physical person-entrepreneur: Lastovetskyi Andriy, fouder of Garant-K Ltd. Address, phone/fax number, e-mail address, other contacts: Kyiv, Ukraine ph.+38044 235 82 82, e-mail:main@vspp.kiev.ua 3. 4. 5. 6. 7. Date of foundation (for juridical person): 23.03.2000 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 1 069 120 0000 004179 Main activities of Ukrainian partner: hotel business Are there any daughter enterprises, subsidiaries? No Who is the contact person for this project? Name and contact information: Lastovetskyi Andriy ph.+38044 235 82 82, e-mail:main@vspp.kiev.ua 8. 9. 10. What are his/her functions? Fouder of Garant-K Ltd What is the investment strategy of Ukrainian partner? Long-term operation and ultimate sale Are there currently any contractual relationships on the project? No Have you (your colleagues or contractual partner) got previous experience in similar projects? Amadeus club 4* hotel, Kamianets Podilskyi, www.amadeus-club.com
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11.
What is your experience in hotel/ tourist/ restaurant business? 8 years. Last 3 years we have our own project Amadeus club. Architecture&design - consulting operator of hotel and restaurant business. A member of Ukrainian tourist association since2001. What is your motivation for implementing this hotel project? Economics

Total amount: 3 000 000 EUR(before construction begins) 200 000 EUR Building stage 2 800 000 EUR 1. Equity: Foreseen for project in general: 3 000 000 EUR Already invested in the project 300 000 EUR 2. Finance model: Please think carefully about financing aspects of the project and answer the following questions: What is in your opinion the term to amortize investments? 10-15 years What costs are foreseen for production (electricity, personnel) and operation (current repair, capital repair)? Costs for gas, water, electricity etc. Staff wages, current repair 3. What annual turnover can be expected after completion? What annual turnover will be in the future? 180 000 EUR per year, 360 000 EUR in the future Are you going to establish amortization reserves for operation costs or will the financing be from the current turnover? From the current turnover

1. 2. 3. What can you offer to the investor? Final sale What kind of investor are you looking for? Management partner What amount should be invested and what are the investors rights in this connection? 300 000 EUR. All the rights. Should the investments be made directly to Ukraine or via some off-shore companies? No difference
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V. MARKET ANALYSIS
1. COMPETITIVENESS
1.1. 1.2. Please describe three nearest hotels: Club ****; Kleopatra ****; Hetman; Taras Bulba. What marketing steps are planned for hotel popularization? Own website .................................................................................... Yes Cooperation with tourist companies (nights stay) ........................ Yes Cooperation with tourist companies (budget trips) ...................... Yes Cooperation with air-craft companies ........................................... Yes Advertising .................................................... newspapers, tv, internet 1.3. 1.4. Contact person: Borusevich Olga ph. +380 67 401 36 65, e-mail:olgaborus@yandex.ru Who filled in the form? Name: Borusevich Olga Date: 31.01.2011 Who is the current contact person for the project? Name: Lastovetskyi Andriy Date: 31.01.2011 Languages: English, German
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PART 2: INVESTMENT PROJECTS IN UKRAINE Arkadia Zhemchuzhina
Project of Arkadia Zhemchuzhina hotel, Odessa HHHH

1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. Type of project: Name of project: New construction Arkadia Zhemchuzhina 2,5 years since start of financing Hotel classification (stars): Room capacity: Room category: First class (****) 200 Single / Double / Suite / Apartments Type of hotel: (business, sports, tourist etc ) tourist
Term of project implementation (please give the predicted dates of start of construction and opening):
Approximate price (for the room for one person): 150 euro The hotel can offer the following facilities: Restaurants: 3 Conference hall 3 Swimming pool 2 Fitness centre Sauna Medical care Business centre Parking Currency exchange
1.9.
Conference hall: Type Total number of seats 20-600 Quality Price Interior Technical equipment all
2. LOCATION
10 minutes from the center of Odessa, 50 m from sea Address 1 Arkadia Odessa Ukraine 2.1. 2.2. Place characteristics: Beach Distance: City centre: 10 min Nearest airport : 30 min Nearest railway station: 10 min Highway: 25 min
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3.1. 3.2. 3.3. What is the base of building? Technical information: Number of storeys: Features: Type Electricity Gas Drink water Waste water Amount 1600kWatt available 3880-1430 m3/day available 27 m3/h available 27m3/h in project Status Description 10 230 piles and basement

4.1. What permission for construction/licenses do you have? What permits/licenses would you need to get? We have all the permits and licenses 4.2. 4.3. Is the land purpose in line/will be in line with project implementation of hotel construction? The land purpose is in line What land rights have you got in the moment? The land is in rent for 49 years.

1. 2. Name of juridical person/physical person-entrepreneur: Zhemchuzhina LTD Address, phone/fax number, e-mail address, other contacts: 1 Arkadia Odessa Ukraine +380503167286 buh@ukr.net www.arkadia-project.com.ua 3. 4. Foundation date (for juridical person:): 24.02.2004. 1556 120 0000 001195 Registered number (EDRPOU National State Registry of Ukrainian Enterprises and Organizations): 31631066 Extract from EDRPOU is in the annex of this form: 5. 6. 7. 8. 9. Governing body : Registered capital: nominal / paid-in: No Yes / No General Direktor Shestakov Yuri
Are there any daughter enterprises, subsidiaries?
What is the investment strategy of Ukrainian partner? Investment for constructing and operating Are there currently any contractual relationships on the project? No
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10. 11. 12.
Have you (your colleagues or contractual partner) got previous experience in similar projects? Yes What is your experience in hotel/ tourist/ restaurant business? 6 years of operating of the hotel What is your motivation for implementing this hotel project? Profit

1. Total amount: Building stage EUR Building costs 26 mln EUR

1. What can you offer to investor? What kind of investor are you looking for? Investor Significant part of investor (>50 %) Easy part of investor (<50 %) 2. What amount should be invested and and what are the investors rights in this connection? 50 per cent of building costs, full partnership Should the investments be made directly to Ukraine or via some off-shore companies? No differece Preferred Acceptable Objectionable
V. MARKET ANALYSIS
1. GUESTS
1.1. Average room price for one person: After opening: In five years after opening: 1.2. What occupancy do you predict? 150 EUR 200-250 EUR 60% in a year
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2. COMPETITIVENESS
2.1. 2.2. Please describe three nearest hotels: small hotels for 20-40 rooms? No hotels with its own beach What marketing steps are planned for hotel popularization? Own website .......................................... www.arkadia-project.com.ua Cooperation with tourist companies (nights stay) .........................Yes Cooperation with tourist companies (budget trips) .......................Yes Cooperation with air-craft companies ............................................Yes 2.3. What are the weak and the strong points of the project? There are no weak points. The strong point is its location and situation with the hotels in Odessa 2.4. 2.5. Contact person: Buhmarin Ilya Who filled in the form? Buhmarin Ilya Languages: Name: Date : Languages: Russian English Ilya Buhmarin 02.24.2011 Russian, English Who is the current contact person for the project?
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PART 2 Section B Projects General Information

PART 2: INVESTMENT PROPOSAL Arena Hotel complex Arena, Kharkiv region
Name of investment project Name of enterprise (organization) Contacts of enterprise (postal address, phone and fax numbers Type of ownership State share % Head of enterprise Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services) Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object Sports recreating hotel complex Arena Physical person entrepreneur Osadchuk I.A. 47, Otakara Yarosha str, app.5, Kharkiv Private property Osadchuk Igor Head Osadchuk Igor 067 570 33 60 Osadchuk Igor Head Osadchuk Igor 067 570 33 60 International transportation, production and sale of industrial lighting equipment. www.sveteco.com.ua), (www.valkiria.com.ua). 6 200 Sports recreating hotel complex (2,02 acre territory) 488 km of Kyiv-Kharkiv-Dovzhansky highway, Road transaction: Moscow-Kharkiv-Sevastopol, KyivKharkiv-Donetsk Dovzhansky and Kharkiv ring road, nearby two elite cottage villages Florinka and Rodychi. Accommodation and providing recreational services to tourists, UEFA family, and others. Providing accommodation and recreational services. Development of land allocation in 2004-2005 Development of Detailed Project 2005-2006, Construction 2007-2011 and object approve 2011.
Purpose of project Main tasks to be accomplished during project implementation Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.)
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Total investment, (thousand dollars USA), including: Own funds, the need for additional financing Method (form) of investment: Offer to investor
Equity 850 thousand dollars USA, the need for loan of 300 plus 500 thousand dollars USA Credit or shareholding 1. To provide with finance and logistical support. 2. To complete the object and fulfill contract obligations. 1. Tourist accommodation 2. Possibility to sell premises for commercial use on the the 2,02 acre territory. Various agreements are possible. According to agreements. 10 -100% 10 - 90% Various agreements are possible 5 -20
Sources of income from the project
Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved) Term Interest rate expected schedule of selected tranches of credit line repayment schedule ensuring Payback period of project in years
10-20 years 5-7% 100 thousand dollars USA each quarter of the year. After three year period Mortgage of already built premises It depends on the income: 1. from accommodation 10 years 2. about 5 years in case of premises sale. 2 274328.08 hrvn 3,05 18,5
Net present value, NPV Profit index, PI Internal rate of return, IRR, %
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PART 2: INVESTMENT PROPOSAL Arena
PART 2: NVESTMENT PROPOSAL Temp
Hotel complex Temp, Kharkiv

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services)) Authorized capital, thousands of dollars USA Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object Purpose of project Main tasks to be accomplished during project implementation List of expected results Determination of the planned phases of the project preparation period and completion percentage for each stage Increase of tourist flow. Level of working project of construction Construction of 4* hotel Temp for 90 rooms Olympic sports club Temp LLC 16, Batumska str, Kharkiv 61070 +380573152018 +380573152018 sktemp@rambler.ru private
Director Zajizhaj Pavlo +380573152018 Director Zajizhaj Pavlo +380573152018 Physical culture and sports 202,6 30 103,9 Construction of 4* hotel Temp for 90 rooms 16, Batumska str, Kharkiv 61070 Expansion of ski-base infrastructure
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Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula) Internal rate of return, IRR, %
15 000,00 116,9 14 883,1 Credit Investor invests into the project, mutual maintenance and operation of the project. Hotel facilities Depends on the amount of investment Mixed variant is possible. 6
10 years. 15% Deferred payment 6 month with equal parts Starting from the 3rd year of operation Real estate 6 5 250 000 1.7 70 33,56
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PART 2: INVESTMENT PROPOSAL Temp
PART 2: INVESTMENT PROPOSAL Central
Hotel complex Central, Donetsk

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services) Authorized capital, thousands of dollars USA Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object Purpose of project Main tasks to be accomplished during project implementation List of expected results 87, Artema str., Donetsk 83001 Repair of acting hotel and completing it with three more storeys for increase of room funds. A three storey completion will solve the problem of lack of hotel rooms during Euro 2012 in Donetsk. Increase of room funds, infrastructure expansion and profit increase. Construction of hotel. (a three storey and dome completion) (dome above A) Central HotelLLC 87, Artema str., Donetsk 83001 (062)332-39-80 (062)332-29-18 vadim@ruoil.donbass.com private LLC 0% Director General Ryabenko Volodymyr (062)332-29-61 Expert economist Lebedev Vadim 099-480-60-62 Hotel business, caf and restaurant activities 1 776,87 68 150,00
178
Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.) Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years
Insufficient financing is the main problem at the moment. The object is practically in perfection stage.
2 187,50 1 875,00 Credit Hotel accommodation and additional services. -
7-10 years 8% in hryvnia No more than 0,1 % 0,00 hryvnia. 6 months credit vacations, after that monthly. 2011. (from February) Last credit year Unfinished construction 7-10 years
179
PART 2: INVESTMENT PROPOSAL Central Crowne Plaza hotel complex 4*
PART 2: INVESTMENT PROPOSAL Ukraina
Hotel complex Ukraina, Donetsk

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Head of enterprise (organization): Position Name Phone number Main activities of enterprise (list of products, services) Authorized capital, thousands of dollars USA Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object Purpose of project Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.) As planned - 195 As planned 3 750,00 12 000,00 Multifunctional complex: hotel 4*, restaurant, caf, bar, conference services, swimming pool, fitness. 88, Artema str., Donetsk Reconstruction of already acting building, construction of 4*hotel. Project works: February-August 2011. Dismantle works: February-April 2011 . External prep works: May -August 2011. Internal prep works: August 2011. January 2012 . Building works: February 2011. January 2012 . Engineering system inside the building: March 2011 July 2011 Landscaping works: July 2011 September 2011. 20 million 2,5 17,5 credit Ukraina hotel Hotel Ukraina-Donetsk LLC 88, Artema str., Donetsk
Director Kozakova Nadia +380989740606 Hotel facilities
Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: - credit - concessions - leasing - rent - other (please specify)
180
Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Internal rate of return, IRR, %
2011 11115 2012 2013 2014 2015 28815 27829 25406 21073 2016 14147 2017 4098
Hotel services as main , plus additional services 50/50 Share of profit, %
5 -10
Min 5 years, max - 8 years Depends on the loan currency
2011 2012 141400 11900 2011 2012 3000 2013 9000 2014 2015 17500 23400 2016 45200 2017 49200
Mortgage of assets. Up to 8 years. 154 271 thousand hryvnjas. 1,11 18 %
181
PART 2: INVESTMENT PROPOSAL Ukraina
PART 2: INVESTMENT PROPOSAL Grand-Hotel
Hotel complex Grand-Hotel, Donetsk region

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services) Project description: Location of investment object Purpose of project Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: - term - interest rate - fee for processing - interest payment The second phase construction of Grand-Hotel hotel complex Physical person entrepreneur Makejev Ivan 23, Dzerkalna str., Mariupol 87506 Ukraine 0629402465 0629401706 info@mak-grandhotel.com Private
Physical person entrepreneur Makejev I.O. 0676200055 Physical person entrepreneur Makejev I.O. 0676200055
Hotel services, restaurant activity The second phase construction of Grand-Hotel hotel complex 6, Korolenka str., Mariupol, 87505 The second phase construction of Grand-Hotel hotel complex 2500 1000 1250 credit 5 years 7-10 % 0,5-1 % monthly
182
- expected schedule of selected tranches of credit line - repayment schedule
February 2011.- 3 million hrvn., April-May 2011. 2 million hrvn., June July 2011. 5 million hrvn. First year repayment of credit interests, from 2nd year repayment of the credit interests and credit itself. The first phase construction of Grand-Hotel hotel complex Six years
- ensuring Payback period of project in years
183
PART 2: INVESTMENT PROPOSAL Grand-Hotel
PART 2: INVESTMENT PROPOSAL Druzhba
Hotel complex Druzhba, Donetsk

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Main activities of enterprise (list of products, services) Authorized capital, thousands of dollars USA Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object Located in the city centre.. Distance to : City executive commettee 300 , State region administration 400 , Football stadium Donbas Arena 1 km, Railway station 7 km, airport 9 km Reconstruction also implies obtaining 3-4 * category. At the moment Hotel Druzhba is acting enterprise, five storeys, and 73 rooms with a max capacity 106 persons. Total square 5 639,6 . .; Building size - 80,9 . 14,6.; It is foreseen to increase room number from73 till 181 or 204. etc. Creating modern 3 4 star business hotel. 15,4 million 10,0 million Reconstruction of Druzhba hotel Hotel Druzhba LLC 48, Universytetska str. Donetsk 83050 (062) 335-06-94, (062) 335-32-92 (062) 335-24-75 uprav@bisholding.com, info@druzhba-hotel.com.ua, www. druzhba-hotel.com.ua Private LLC non Owner representative Zhoukov Yury (062) 335-32-92, (062) 335-06-94 Hotel services 26,452 48 750
Purpose of project Main tasks to be accomplished during project implementation
List of expected results Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing
184
Method (form) of investment: - credit - concessions - leasing - rent - other (please specify) Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula)
All variants will be considered.
Investor should attract finance Hotel services and other activities. Will be negotiated. All variants will be considered, including sale of the object.
All variants will be considered. All variants will be considered. Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ Will be negotiated during concluding an agreement/ 6 8 years 2 412 thousand 1,1 26,17 % (income without taxes) Funds profitability 37,85% (net profit/ Investment profitability 34,04% (net profit /investment) 17,6
Internal rate of return, IRR, %
185
PART 2: INVESTMENT PROPOSAL Druzhba
PART 2: INVESTMENT PROPOSAL Staro
Hotel complex Staro, Kyiv

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services) Authorized capital, thousands of dollars USA Staff quantity Main production turnover, thousands dollars USA Project description: Location of investment object List of expected results Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Offer to investor Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Construction of 4* Staro hotel at 34, Kostyantynivska str, Kyiv. Stolytsya-Centre-plus LLC
5-B, Aviatora Antonova str., Kyiv, 03186 044-351-12-29 / 351-12-33 sergestaro@gmail.com Private enterprise
Director Starodubtsev Sergiy 044-351-12-29 Director Starodubtsev Sergiy 044-351-12-29 Rent of non-residential buildings 2 500,0 8 64,0 A four star hotel complex 34, Kostyantynivska str, Kyiv. Putting into operation
Credit of 4 052,0 dollars USA To secure financing Putting hotel into operation According to agreement
186
Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line - repayment schedule - ensuring Payback period of project in years Net present value, NPV Profit index, PI Profitability indices, % (please specify indices and their calculation formula) Internal rate of return, IRR, %
According to agreement
According to agreement According to agreement
Will be determined in case of getting investment 5 238,0 Will be determined in case of getting investment Will be determined in case of getting investment Will be determined in case of getting investment
187
PART 2: INVESTMENT PROPOSAL Staro
PART 2: INVESTMENT PROPOSAL Boryspil Plaza
Hotel complex Boryspil Plaza, Kyiv region

Name of investment project Name of enterprise (organization) Contacts of enterprise (organization): Postal address Phone Fax e-mail web-site: Type of ownership Organizational- juridical form State share (%) Head of enterprise (organization): Position Name Phone number Contact person for investment project: Position Name Phone number Main activities of enterprise (list of products, services) Authorized capital, thousands of dollars USA Staff quantity Project description: Location of investment object Purpose of project Main tasks to be accomplished during project implementation Determination of the planned phases of the project preparation period and completion percentage for each stage (initiation, preparation of feasibility studies, project preparation, contract preparation, implementation, etc.) Boryspil Plaza hotel complex _._._____ LLC 1, Lysenka str. Schaslyve village, Boryspil region, Kyivska oblast, 08325 (044) 495-86-51 (044) 495-86-52 info@boryspilplaza.com www.boryspilplaza.com Private LLC 0% Director Gurjanov Olexander (044) 495-86-51 Director assistant Moroz Dmytro +38 (050) 442-46-65 Development of immovable real estate According to national bank currency rates 13.01.11 it comprises 50,263 dollars USA 4 It is intended to build new Radisson conference hotel. 1, Lysenka str. Schaslyve village, Boryspil region, Kyivska oblast, 08325 To build a hotel meeting all international standards A new modern hotel will be built near the capital Kyiv and Ukraines biggest international airport. Project status: Project stage 100% ready Working documents stage 80% ready. The state expertise is obtained; Construction permit is obtained;
188
Total investment, (thousand dollars USA), including: - own funds /budget funds - the need for additional financing Method (form) of investment: Offer to investor
81000 8000 73000 credit A private investor should secure timely financing according to agreement and the project owners in their turn will provide management of the project, its successful implementation. Hotel services; SPA complex in the hotel, conference facilities. In direct proportion to the part of each of the parties. 30-100%
Sources of income from the project Proposal for revenue sharing between the investor and enterprise. Investor is offered : - the right to purchase shares, % - share of volume of sales % - production share % - share of profit, % - other (please specify) Proposal on term of the contract between the investor and enterprise, in years. Proposal on the credit term (in case credit funds are involved - term - interest rate - fee for processing - fee for each tranche of credit line - interest payment - expected schedule of selected tranches of credit line
5-10 years
- repayment schedule
- ensuring Payback period of project in years
10 year 8% annually 0,1% absent During 10 years annuities Q1 2011 10,950 Mln. USD Q2 2011 18,250 Mln. USD Q3 2011 18,250 Mln. USD Q4 2011 18,250 Mln. USD Q1 2012 7,300 Mln. USD Total:73 Mln. USD From 2013 to 2023monthly annuities at the amount of 885691 USD (includes credit body and % __). Total repayment will be 106282972 USD, 73000000 USD credit body, 33282972 USD interests. Land territories of _._._____ LLC of total 4,279 acre square, also unfinished building. 7,5 years.
189
PART 2: INVESTMENT PROPOSAL Boryspil Plaza
PART 2: INVESTMENT PROPOSAL Morshyn
Hotel complex Morshyn, Lviv

Name of investment project: Company/organisation name: Company/organisation contact details: Mailing address: Phone: Fax: e-mail: Ownership form: Legal status Government property share (in %) Company/organisation manager): Position: First, second names, patronymic: Phone: Investment project contact person Position: First, second names, patronymic: Phone: Principal product of the Company (list of goods/services) Authorised fund of the Company, in USD thousand: Number of employees Corporate primary production turnover, in USD thousand Project description: Investment object location Project objective: Key tasks to be resolved throughout Project implementation: Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.) Total investment (USD thousand), incl.: - equity capital/budget appropriations - need for additional financing Development of an Absolut 5-star hotel in the town of Morshyn Energo Resurs-Invest Corporation 131 Zelena St., Lviv 79035 Phone: (032) 260-12-97; Fax: 032-225-54-39 info@energoresurs.com Private ownership Corporation
President of EnergoResurs-Invest Corporation Ivan O. Nironovych 032-225-54-37, 260-12-97 Corp. President Ivan O. Nironovych (032) 260-12-97 Preinsulated pipes and heat piping network components; modular waste treatment facilities; industrial development; assembly and installation 12.6 450 25,000 The project envisions the development of the 5-star Absolute Hotel facility in the town of Morshyn Morshyn, Lviv Oblast Development Commissioning of the 5-star Absolute Hotel facility Design specifications and estimates developed
7,000 2,000 5,000
190
Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate) Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
External investment (loan facility)
Investor finances development project implementation; The Company undertakes for the building and the commissioning of the five-star Absolut Hotel Tourism 50% / 50% - 50% share in sales volume - 50% share in earned profits
10 years
7 years 10% On a monthly bases With a grace period Deferred equal payments Development project Five years
20%
191
PART 2: INVESTMENT PROPOSAL Morshyn
PART 2: INVESTMENT PROPOSAL Villa Shevchenko
Hotel complex Villa Shevchenko, Lviv region

Name of investment project: Company name: Contact details of the project-initiating company: Property redevelopment into 4-star hotel, 5 Shevchenko St., Truskavets TruskavetsKurort, Closed Joint-Stock Company TruskavetsKurort, CJSC, 13 Bilasa St., Truskavets 82200, Lviv Oblast. Phone/fax: 032-47-6-00-00 Private 0 Viktor M. Zhdanov, Director General Phone: 032-48-6-00-00 Myron M. Petriv, Chief Engineer Phone: 032-47-6-00-07 Recreational and resort services
Ownership form: Legal status: Government property share (in %) Company manager:
Investment project contact person:
Principal product of the Company: Authorised fund of the Company, in USD thousand: Number of employees: Corporate primary production turnover, in USD thousand Project description: Investment object location: Project objective: Key tasks to be resolved throughout Project implementation: List of expected results: Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.) Total investment (USD thousand), incl.: Equity capital (USD thousand): Need for additional financing (USD thousand): Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate)
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Design specifications and estimates ready
4,021.0 0.0 4,021.0 Loan facility
192
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate) Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in % 7 Sales of hotel accommodation and related services
7 years 11% (in USD) N/a N/a In two years as of the commencement financing date On a quarterly basis in proportions of 25-30% of the loan amount In proportions starting from year three as of the commencement financing date Mortgage 5
193
PART 2: INVESTMENT PROPOSAL Villa Shevchenko
PART 2: INVESTMENT PROPOSAL Villa Oksana
Hotel complex Villa Oksana, Lviv region

Name of investment project: Company name: Contact details of the project-initiating company: Villa Oksana redevelopment into 4-star hotel TruskavetsKurort, Closed Joint-Stock Company TruskavetsKurort, CJSC, 13 Bilasa St., Truskavets 82200, Lviv Oblast. Phone/fax: 032-47-6-00-00 Private 0 Viktor M. Zhdanov, Director General Phone: 032-48-6-00-00 Myron M. Petriv, Chief Engineer Phone: 032-47-6-00-07 Recreational and resort services
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Ready for interior facing works
1,621.0 0.0 1,621.0 Loan facility
194
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
Sales of hotel accommodation and related services
195
PART 2: INVESTMENT PROPOSAL Villa Oksana
PART 2: INVESTMENT PROPOSAL Villa Maria
Hotel complex Villa Maria, Lviv region

Name of investment project: Company name: Contact details of the project-initiating company: Villa Maria redevelopment into 4-star hotel TruskavetsKurort, Closed Joint-Stock Company TruskavetsKurort, CJSC, 13 Bilasa St., Truskavets 82200, Lviv Oblast. Phone/fax: 032-47-6-00-00 Private 0 Viktor M. Zhdanov, Director General Phone: 032-48-6-00-00 Myron M. Petriv, Chief Engineer Phone: 032-47-6-00-07 Recreational and resort services
2,912, as of 01.01.2011 39,421.4 Truskavets, Lviv Oblast Facility renovation Building renovation with accommodation rating upgrade to 4 star category Premises modernised Accommodation standards increased Ready for interior facing works
1,935.0 0.0 1,935.0 Loan facility
196
Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in % 7 Sales of hotel accommodation and related services
197
PART 2: INVESTMENT PROPOSAL Villa Maria
PART 2: INVESTMENT PROPOSAL Lypynskogo
Hotel complex Lypynskoho, Lviv

Name of investment project: Company/organisation name: Company/organisation contact details: Mailing address: Phone: Fax: e-mail: Ownership form: Legal status: Government property share (in %) Company/organisation manager: Position: First, second names, patronymic Phone: Investment project contact person: Position: First, second names, patronymic Phone: Principal product of the Company (list of goods/services) Authorised fund of the Company, in USD thousand: Number of employees: Corporate primary production turnover, in USD thousand Project description: Investment object location: Project objective: Key tasks to be resolved throughout Project implementation: List of expected results: Building a hotel with 127 standard rooms, two deluxe suites, a parking lot for 38 cars, fitness hall, bar, restaurant and childrens play centre Lypynskoho St., Lviv Hotel development Solving municipal hotel facility problems with business-class proposals The hotel placed in the downtown area (1o min. walk from the Rynok Square) in 2 kilometres from the main transport artery connecting with Kyiv. Benefits of the project include convenient location and good visibility. Project proposal 3-star hotel development on Lypynskoho St., Lviv RecreAction Ukraine. Hospitality Business Solutions 76/6 I. Franka St., Lviv 79011 Ukraine; Phone: +380 50 337 5010 Fax: +380 32 276 1888 e-mail: office@Recre-Action.com Owned by territorial community of the town of Lviv
Ivan Yu. Lun, Advisor to Lviv Mayor on municipal hotel infrastructure issues Phone.: +380 50 337 5010 Serghiy I. Kiral, Manager of Foreign-economic Relations and Investments Department, Phone: 38 (032) 254 60 06, Mob.: (050) 313 02 21 Delivery of hotel services As per the laws in force 100
Establishing scheduled phases of Project preparation, deadlines and completion ratio for each phase (initiation, feasibility study development, contract development, implementation etc.)
198
Total investment (USD thousand), incl.: - equity capital/budget appropriations; - need for additional financing Way (form) of investment attraction: - loan - concession - lease - tenancy - other (please elaborate) Proposals for investor (what should he do during project implementation; what should the Company do in the event of private investor attraction): Source of revenue from Project implementation: Proposals on revenue sharing between investor and the Company (in the event of private investor attraction): Investor is offered (in the event of private investor attraction): - stock purchase right, in % - share in sales volume, in % - share in goods manufactured, in % - share in earned profits, in % - other rights (please elaborate): Proposals on the duration of the contract between investor and the Company (in the event of private investor attraction), years Proposals on terms and conditions of loan facility (in the event of loan attraction) - term: - interest rate: - loan agreement administration fee: - fee for each credit facility tranche: - interest payment: - expected schedule of loan facility tranche drawdown: - loan amortisation schedule: - collateral security: Project payback period, years Net present value, NPV Profitability index, __ Profitability index, in % (please show types of profitability indexes and their calculation formulas) Internal rate of return, IRR, in %
UAH7,698,680
- Concession - Tenancy - Share capital payment
Establishment of a joint venture; share capital payment Hotel operation To be determined during negotiations To be determined during negotiations
10
10 15 % 1% N/a 9 years On a quarterly basis Within ten years The developed project Five years 0 (on five-year basis) ROE on a nine-year basis at 19.01% calculated as per the following formula (EBIT/authorised fund) -
199
PART 2: INVESTMENT PROPOSAL Lypynskogo

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National Agency on Holding and Preparation of Euro 2012 Department of Infrastructure Development 2 Mechnikova Str.

With the support of the Ukrainian German Development Cooperation

Ukraine at the International Hotel Investment Forum in Berlin March 2011

National Agency on Preparation and Holding in Ukraine UEFA EURO 2012

Tourism Sector and Investment and Cooperation Projects in Ukraine

Part 1 Market Analysis .......................................................................................................

Profile of second largest Country in Europe ....................................................................................... 20

Foreword by Vice Prime Minister Mr Borys Kolesnikov:

Lets switch on Tourism!

Yours sincerely Borys Kolesnikov Vice Prime Minister

PART 1 MARKET ANALYSIS

Ukraine Huge Development potential

Tourism in 2011 Back on the growth path

Russians remain important group

PART 1: MARKET ANALYSIS

Incentives for Euro 2012 investments

PART 1: MARKET ANALYSIS

Table 3 Rating of top 10 countries of visitors to Ukraine

Outbound tourism growing as well

Key Facts at a glance

Hotel and 26 office centre Campsite 5

10 percent of Hotels in Kiev

PART 1: MARKET ANALYSIS

The Ukrainian Hospitality Industry1

PART 1: MARKET ANALYSIS

Use of capacities slightly lower than in EU countries

Hotel Capacity in Ukraine close to 80.000 beds

Hotel Supply in Ukraine way behind international average

Average staying period

Increase in top class hotels

PART 1: MARKET ANALYSIS

PART 1: MARKET ANALYSIS

Origin of tourists in Ukraine by country

Focus regions of tourist industry

Great Britain France Italy

32,7% 27,1% 8,7%

New system for categorization of hotels looming

PART 1: MARKET ANALYSIS

PART 1: MARKET ANALYSIS

Incomes from Hotel Accommodation

Growing SME sector in tourism

Investments in development of the hotel infrastructure

PART 1: MARKET ANALYSIS

PART 1: MARKET ANALYSIS

Economic Program shows results

Annual growth rate of 4 percent expected

Source: Ukrainian Authorities, WB projections

Table 9: Key Macroeconomic Indicators

PART 1: MARKET ANALYSIS

PART 1: MARKET ANALYSIS

Views from outside Investment climate improves

Legal Framework of Investment Activities

National Target Programme for Euro 2012

Attractive conditions for investments

Indicators for doing business in Ukraine

PART 1: MARKET ANALYSIS

PART 1: MARKET ANALYSIS

Profile of second largest Country in Europe

PART 2 Section A: Detailed Investment project descriptions

Term of project implementation:

The hotel can offer the following facilities:

PART 2: INVESTMENT PROJECTS IN UKRAINE Cosmopolit