Saint Maur Styles

Presentation of the company

Saint Maur Styles is the company set up in 2016 to acquire the ongoing concern of SNC Classics Hotel Saint Maur active in the hospitality sector. Saint Maur Styles, managed by David Dassin, has 10 employees and is based in Goussainville.

The hotel is well located with a direct access to Paris and to Disneyland, making it a prime choice for corporate as well as stopover travelers.

Amenities include 75 rooms newly renovated for most of them, 3 meeting rooms, 2 parkings as well as a bar offering breakfast services.

The company’s main activity is:

• General hospitality services
• Food and beverages offering through a bar and breakfast service
• Event management with meeting rooms for corporate functions

The hotel has been partly renovated to be aligned with Ibis Style standards, refurbishment works are due to be finished by the end of year 2018.

Project Description

The company wishes to borrow 415 000 € over 36 months to refinance refurbishment works as well as the acquisition of furniture for the hotel to be turned into an Ibis Style franchise. This project will be realised in the next few months.

As a reminder, the Lendix lending community supported M David Dassin and M Riad Boucetta in 2017 with 280 000 € to refinance refurbishment costs of a then newly acquired hotel to be converted into Ibis Budget franchise from the Accor Group.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 33 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest."

The amount offered on the platform is limited to 203840€, which is in line with the regulatory limits

Analyst’s Opinion

With a turnover of 1 032 000 € in 2017 and an experienced team, the company has a good track record combined with an acceptable and growing operating margin.

In 2017, the decrease of profitability is linked to non-recurring costs and investments that were made in anticipation to the new Ibis Style Franchise. The forecast is based on the projected performance of 2019 that represents a full year under new management, new IBIS STYLE brand and with all rooms fully operationnal.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,49 and an excellent financial structure, with a forecast net debt / ebitda ratio of 1,2 and a net debt / shareholder equity of 26%. Convertible notes issued by 123IM in 2016 were considered as quasi equity due to their nature and maturity after Lendix loan.

The analysis of the project leads to a credit rating of C and a 6,35% annual interest rate.

Strong points:

• Good historical performance based on diversified client base mostly composed of business and stopover travelers
• Correct repayment ability with a forecasted FCCR of 1.49 reinforced by the support of banking pool and shareholders.
• Experienced management in the hospitality sector with 2* and 3* hotels under Accor brand in their portfolio

Point of vigilence: