Mürren,
Austria
Hotel In Mürren

Mürren is located at 1,650 metres above sea level in the Swiss Alps, in the Bernese Oberland in the canton of Berne. Approximately 3½ hours from Zurich by public transport; 2 hours from Berne. Closest major centre: Interlaken. The village is an internationally well-known holiday destination for both winter sports and summer tourism.

Properties Two buildings located on adjacent properties and operated as a single business entity:
Rooms Beds Floors
Main building: 29 48 4
Annexe: 21 40 3

Centrally located in village; prime winter location at end of ski slopes.

Sizeable kitchen, cold storage and freezer areas; ski room; lounges.

Seating capacity in restaurant areas: 276 (dining room 100; restaurant 82; sun terrace 80; bar 14).

History of asset The historic main building and the hotel operation date back to the end of the 19th century (built 1894). In the 1950s it was acquired by a major Swiss retail chain group which increased capacity by adding the annexe across the road in the 1964. The main building was completely renovated and refurbished in the 1990s at a cost of CHF 7 million.

In 1999 the group made the strategic decision to dispose of its non-core assets which included four hotels in various mountain resorts.

The properties and hotel operation were acquired in April 2000 as a going concern by the current owners in a management buy-in transaction conceptualised and executed by GlobeCapital. The acquisition was funded with loan finance from Credit Suisse and the Schweizerische Gesellschaft für Hotelkredit, and equity capital provided by the management team and an investor consortium.

Current legal entity Swiss company (containing all properties and the hotel operation).

The financial year of the company runs from May to April.


Hotel operation Official three-star grading by Swiss Hotel Association, with annexe serving economy market segment.

Two distinct seasons: skiing and winter sports season mid December to Easter; summer season May to end September.

Established customer base, with following source countries:

Summer Winter
USA 28% Switzerland 47%
Switzerland 21% UK 22%
UK 19% Germany 13%
Japan 15% 
Other 17% Other 18%
100% 100%

Bed occupancy rates: summer 57%; winter 61%; average open period 59%.

Annual turnover:
CHF 1.7 million.

Cash generated by operations (2001/2002 financial year):
CHF 190 000.


Cost structure * CHF '000
Turnover 1 537
Less: direct costs 333
Less: staff costs 570
Less: overhead costs 210
Less: management cost 169
Hotel operating profit 255
Less: repairs and maintenance 57
Less: property taxes 19
Less: leasing of equipment 14
Less: cost of staff accommodation 22
Plus: income from staff accommodation and management apartment 47
Net cash operating profit available for
capital expenditure or distribution 190

* Audited figures: annual financial statements for the year to April 2002

Investment potential The investment is considered to offer potential for further value growth in the following areas:

Turnover lifted from CHF 1.7 million level through enhanced marketing effort (with an estimated 70% of any additional turnover generated as additional net cash profit);

Possible upgrading to four-star status; 

Possible redevelopment of parts of the properties, for example into apartments for sale on sectional-title basis.

The investment opportunity has become available because the initial acquisition consortium has taken the strategic decision to:

Replace the existing finance from financial institutions with shareholder funding in order to have unencumbered ownership of the properties

Rationalize the existing shareholding structure.

Documents for inspection Selling documentation (July 1999)
Architect's valuation report (July 1999)
Audited financial statements, year ended April 2001
Audited financial statements, year ended April 2002
Management accounts, 2002 / 2003 year-to-date
Detailed monthly budget, year ending April 2003
Purchase and sale agreement (May 2000) 
Sale agreement: staff house (December 2002)
Company secretarial documentation

Asking Price: $3,200,000.00 US

REFERENCE #2262

DALLI (B)