Louis Group Hotel Debentures
The Devon Valley Hotel Erinvale Estate Hotel & Spa
We invite you to purchase Louis Group Hotel debentures in the Devon Valley Hotel, the Erinvale Estate Hotel & Spa and future hotels which may be acquired.
Louis Group is a family company which was established in 1914 and has over nine decades transformed itself into a global Property, Hotel, Financial Services and Technology Group. Built on Christian and family values, the Group has been able to establish its business interests in England, Germany, Isle of Man, Namibia, Scotland, South Africa and Switzerland.
The decision by the Group and its partners to purchase and refurbish the Devon Valley Hotel in 2004, marked the beginning of an exciting journey into the hospitality industry, which saw us receive a number of prestigious awards including ‘Best Boutique Hotel in South Africa 2008’ and ‘Best Boutique Hotel in Germany 2008’. In addition, our hotels have also won 2nd Gold Crown RCI Resort in Africa and ‘Best Customer Rated Hotel’ (Expedia.com) in Africa.
Louis Group Hotels, Spas & Vineyards, currently owns a suite of boutique hotels in South Africa and Europe, which all carry ‘Premier’ rating as hospitality establishments. Among these are:
- Devon Valley Hotel (Stellenbosch)
- Erinvale Estate Hotel & Spa (Somerset West)
- Place on the Bay (Camps Bay)
- Fairways on the Bay (Camps Bay)
- The Lobster House (Camps Bay)
- SylvanVale Vineyards (Stellenbosch)
- Schloss Hubertushöhe (Berlin)
- BahnHof (Gstaad)
These acquisitions serve to illustrate that as always Louis Group is to be measured by its actions; and we are keenly pursuing additional hotel opportunities in Southern Africa, prior to the 2010 World Cup, and in Europe.
The Devon Valley Hotel & SylvanVale Vineyards
The Devon Valley Hotel, recently awarded ‘Best Boutique Hotel in South Africa’ at the 2008 AA Travel Guides American Express Accommodation Awards, is a luxurious boutique hotel surrounded by its own vineyard, only 6 km from Stellenbosch. The hotel offers luxurious accommodation, impeccable conferencing facilities and an exquisite dining experience.
This contemporary colonial hotel offers high ceilings, wooden floors, cosy fire places, and lavender courtyards. The hotel represents the wonderful rustic charm of the country, while incorporating all the luxuries of a modern lifestyle. Its range of rooms enables guests to enjoy privacy, exquisite furnishings, their own private patios and gardens and unobstructed views of the Devon Valley and Helderberg Mountains.
Erinvale Estate Hotel & Spa
Erinvale Estate Hotel & Spa is situated in Somerset West, neighbouring the magnificent Erinvale Golf Course and surrounded by the majestic Hottentots Holland Mountains.
The typically Cape Dutch styled hotel is elegantly set amidst peaceful private gardens, quaint walkways and beautiful Oak trees. The rooms, main building, conference venues and petite chapel tastefully combine the original setting and high thatched roofs with a contemporary palette of earthy hues to add an African feel. The hotel`s 57 Suites, Standard and Superior rooms are classically furnished and set amidst the tranquil gardens and quaint walkways.
The Estate offers a range of excellent restaurants, the Erinvale Estate Spa, operated by Ginkgo Spa and Wellness Group, and state-of-the-art conference facilities.
The Promoter
The Promoter is Louis Group Hotels (South Africa) which currently owns the Devon Valley Hotel & SylvanVale Vineyards and Erinvale Estate Hotel. After the succesful implementation of this debenture, the Promoter will consider purchasing other hotels from third parties or Louis Group Hotels (Global) – which owns Place on the Bay, Fairways on the Bay, Lobster House, Schloss Hubertushöhe and Bahnhof.
Three-year financial forecast of Louis Group Hotels (SA)
(includes only Devon Valley Hotel & SylvanVale Vineyards and Erinvale Estate Hotel & Spa)
| February 2009 | February 2010 | February 2011 | |
| Assets under management | 77 000 000 | 77 000 000 | 77 000 000 |
| ROA | 11% | 15% | 17% |
| Revenue | 29 198 000 | 36 010 000 | 39 970 000 |
| NPBITD | 8 741 000 | 11 592 000 | 12 903 000 |
Summary of the investment
- The Promoter will issue 75 000 debentures at R1 000 each;
- The offer will open at 09:00 (SA time) on 25 June 2008 and close at 17:00 (SA time) on 23 September 2008;
- Investors will earn interest at prime less 1% (prime is currently 15,5%) payable quarterly at the end of February, May, August and November each year;
- The investment period is for five years, which means that after five years the capital invested will be repaid to the investor;
- Although the proposed investment period is for five years, Louis Group Capital offers a structured product which will enable you to invest for any timeframe between one and five years if you require a shorter term of investment.