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SAS Trappes Enzo

presented by October France

€104,000

5.65%

48 months

B

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location

Location

Paris, France

activity

Activity

Restaurants and catering services

Warning

Unfortunately, you cannot lend to this project.

Why? This project* does not fall within the regulatory framework of October IFP, defined by the ordinance of 30 May 2014 (ordinance on participatory financing). It is therefore not offered to individual lenders as part of participatory financing.

According to the Ordinance of 30 May 2014, a project consists of a purchase or a set of purchases of goods or services contributing to the completion of a predefined transaction in terms of purpose, amount and timetable.

Presentation of the company

Created in 2017, SAS Trappes Enzo is active in the Hotel sector. The company, managed by David Dassin, has 6 employees and is based in Trappes. The main shareholder owns about ten hotels, several of which are under the Enzo and Ibis franchise.

The company’s main activities are:

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

The 3-star rated hotel is part of the Enzo hotel franchise (Groupe louvre hotel) and has 65 rooms and a restaurant open during the week for dinner. The occupancy rate in 2018 is 75%.

The hotel works with business and tourism guests, welcomes its guests 24 hours a day and also has a meeting room that can accommodate 30 people.

The hotel was bought in November 2017 and the rooms and restaurant were renovated. 

Project Description

The company requests a loan of 104 000 € over 48 months to finance his current accounts partner. This project will be realised next month.

As reminder we already lend to David Dassin : 280 000 € to Saint Exupéry during 48 months (25 108,68 € of outstanding capital) and 416 000 € to Saint Maur Styles during 36 months (333 628,41 € of outstanding capital).

The amount offered on the platform is limited to 50 960€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 1 019 000 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

In 2018 the increase in turnover and ebitda margin is due to the increase in the occupancy rate, renovation of the rooms and cost control.

The forecast is based on the 2018 performance.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,10 and a strong financial structure, with a forecast net debt / ebitda ratio of 2,2 and a net debt/ shareholder equity of 251%.

The analysis of the project leads to a credit rating of B and a 5,65% annual interest rate.

*The multiple of FCCR at 1,1 means that the company has a safety margin of 10% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

  • Good historical performance based on diversified client base.
  • Repayment ability with a forecasted FCCR of 1,10 reinforced by support by shareholder.
  • Hotel with good potential because it was formerly underused and well located.

Point of caution:

  • Some competition.