Prime investment opportunity in Tangier, offering the chance to redevelop an exclusive hotel and apartments

For Sale

private treaty

Tangier

| Morocco

1,000,000

Asking price

Summary

Somatour SARL (the “Owner”) has appointed CBRE (Pty) Limited as its exclusive agent and advisor (“Advisor”) to present this hotel opportunity to prospective investors. The subject property is a 100 key hotel based in Tangier, Morocco, is for sale on vacant possession, with bulk approved to expand with an additional 71 hotel keys and 51 apartments.

The property promises an appealing opportunity, attracting investors from the regional market, for investment in an existing hotel with a redevelopment opportunity, which post completion will become an investment grade asset in the local market of Tangier.

The Owner is looking to dispose of the Property as an asset sale. This Investment Memorandum (“IM”) seeks to provide the necessary information to assist with initial interaction on the opportunity. All communications to the process should be directed to the contacts below. Inspections and meetings will be arranged upon request and may be subject to approval.

Investment Highlights

Hard currency: Most income will be in hard currency, with overseas regional tourists being the primary demand drivers.
Professional Management: The Property will be managed and branded by an international operator.
Vacant Possession: The investment opportunity is available on vacant possession, with no binding operator agreement in place.
Scale: The project can be scaled up from the existing 100 keys to 171 hotels keys and 51 apartments, bringing the total key count to 222.
Diversification: The Property’s hospitality income streams will be supplemented by the residences’ long stay offering, as well as income from the proposed expanded F&B facilities.
Location: The sites is situation in the second largest industrial node in Morrocco after Casablanca, and is the most popular leisure destination in the country. With the most populous port in Africa, the site for this hotel provides key competitive advantages.
Redevelopment: The current hotel is non-operational and therefore bringing no operational disruption to the hotel. All redevelopment rights and plans are in place to immediately start with the redevelopment.
Vision: A bleisure-centric hotel combining world-class redevelopment into an investment grade hospitality asset with rich culture, history, and culinary experience.

Location

Situation

Morocco plays a pivotal cornerstone in Africa, bridging the divide between the diverse African expanse and the European landscape. Beyond its reputation as an iconic travel destination renowned for its rich tapestry of culture and history, Morocco positions itself as a key industrial and economic powerhouse within the continent.

Given its unique geographical location, touching both the Atlantic Ocean and the Mediterranean Sea, Morocco isn’t merely celebrated for its sweeping deserts and historic medinas. It boasts one of Africa’s most robust and versatile port infrastructures, ensuring it’s at the heart of pan-African economic. The establishment of vital assets, such as the Tangier Med Port, myriad Free Zone economic areas, expansive road networks, and the foray into high-speed rail transit, emphasizes Morocco’s role as a nexus between Europe, North Africa, and the broader African region.

The nation’s urban expansion and burgeoning middle class have sparked a robust demand for premium residential estates and accommodations tailored to its rapidly growing workforce. Reinforcing Morocco’s business prominence is the rise of opulent hotel chains and resorts across its key cities, with illustrious brands echoing its commitment to luxury and refinement. These entities are meticulously placed to serve a rising tide of both regional and international business visitors, alongside the growing wave of tourists seeking a blend of leisure, culture, and history.

Morocco’s real estate profile is as diverse as its landscapes, stretching from luxurious palatial abodes nestled within ancient city walls to ultramodern beachfront condos. Furthermore, the nation showcases an extensive array of recreational and leisure options, from the sun-baked coasts perfect for water sports, to its golf estates, equestrian trails, and the beckoning trails of the Atlas Mountains

Description

The existing property was acquired by the Client in 2022, and has not been operational since as the Client has gone through a process to obtain approved zoning and plans for the redevelopment. The hotel is not contracted to any local or international hotel group

Current property overview:	Redevelopment Overview:
• 100 key hotel	• 171 key hotel
• No apartments	• 51 Apartments

Current Hotel: 100 standard rooms
Redevelopment Hotel: 146 standard rooms and 25 suites
Redevelopment Apartments: 46 three bed and 5 two bed luxury apartments
Amenities: Spa, Two restaurants, Lobby bar, Grab-and-go café, Two Pools, Undeground parking, Valet parking
Building Period: Construction is expected to be completed within 27 months with all rights to develop in place

Location - Tangier Overview

Tangier stands as Africa’s foremost gateway, marking the primary juncture between Europe and the African continent. Beyond its status as a top-tier tourist hub in the region, Tangier has cemented itself as Morocco’s second-leading industrial epicentre, only surpassed by Casablanca.

Owing to its geographically strategic placement, Tangier is not merely a resort city but also possesses Africa’s most expansive port infrastructure. This position has propelled the city into becoming an integral economic nexus for the entire African continent. The establishment of pivotal infrastructures, such as the Tangier Med Port, Free Zone industrial locales, extensive highway networks, and high-velocity rail lines, underscores its role as the primary portal to both Morocco and the broader West African region.

There’s been a noticeable surge in demand for upscale residential properties alongside accommodations for the expanding workforce. Testament to Tangier’s escalating business relevance is the blossoming of luxurious hotel chains and resorts, including renowned names like Hilton, Kenzi, Holiday Inn, Sofitel, Movenpick, Sol Azur, and Cezar, to name a few. These establishments are strategically poised to cater to an influx of both domestic and international business travellers, complemented by the burgeoning leisure and cultural tourist segment.

Investment Rational

Brand Penetration: International operators increased presence and interest in Morocco will further cement the country as a strong business and leisure destination.
Road Infrastructure: The road network to the Property is strong and is well connected to all motorways in and out of the city, as well as being positioned strategically within the business district.
Regional Growth: Sustained economic growth in Morocco is creating a strong middle-income class demand segment that the Property can target.
Regional Airlift: Morocco’s access to Europe and the Middle East has improved with additional regional flights in and out of these key destinations.
Stability: Morocco by extension is politically stable, with a Government of national unity between them.
Support: Morocco’s Government has sustained tourism investment, driven by the sector’s significant contribution to the country’s foreign exchange and employment.

Ownership and Legal Information

Information	Details
Owner	Somatour SARL
Seller	Somatour SARL
Method of Sale	Asset Sale
Sector	Hospitality
Operator	Vacant Possession
Property	Currently a 100-key hotel with expansion rights for additional 71 keys and 51 apartments.

Hotel Amenities

Fully serviced hotel – The hotel will boast a range of luxurious amenities such as a spa, business centre, fitness centre, and two pools. These facilities will be instrumental in drawing month-long stays, catering to ex-pats and business travellers looking for apartment-hotel accommodations.

SPA – The spa, inspired by Moroccan Hammams, will blend tradition with modernity, offering a comprehensive menu and unparalleled relaxation. Open to both guests and the public, it will serve as an additional revenue stream for the hotel.

Business Centre – Business travelers are a primary market for our hotel. The business centre, catering to the modern trend of remote work, should be spacious and professional, allowing multiple guests to simultaneously use amenities like Wi-Fi, printers, and video conferencing.

Concierge/local transport – The concierge will foster local partnerships and guide guests, regardless of their stay length, to Tangier’s highlights. Securing an adept concierge is HR’s priority, offering extended services for long-term guests and handling local transport, ensuring competitive rates.

Fitness centre – The hotel will feature a 24-hour gym for guests, apart-hotel, and monthly renters. Regular cleanliness checks will be ensured, and additional spaces for yoga and other wellness classes will be available for rent.

Pools – The existing structure boasts two pools, one being child-friendly. These will be upgraded for premium relaxation, offering poolside dining and cocktails. Nestled within the hotel grounds, they ensure guest privacy and enhance the overall experience.

F & B Offering

The hotel will offer diverse dining options, including a three-meal restaurant, a takeaway café, and a high-end Moroccan-themed dinner venue, all catering to international tastes. An upscale lobby bar, exclusive nightclub, and various in-between dining spots enhance guest experience. With comprehensive catering services, the hotel is primed for events like weddings and business meetings. Given its proximity to Spain and Morocco’s appeal to Europeans, event hosting is anticipated to significantly boost hotel revenue.

Moroccan Cuisine/traditional restaurant – This restaurant will offer premium Moroccan dishes for lunch and dinner, with a seating capacity of 300 people.
Hotel 3-meal international cuisine and in-room dining – The primary hotel restaurant, catering to breakfast, lunch, and dinner, also provides in-room dining for guests and has a seating capacity of 300 people.
Grab-and-go café – This café offers quick bites, coffee, and tea, with limited seating mainly near high-traffic areas like the lobby. The menu blends traditional and Moroccan snacks.
Night club – The nightclub, infused with a Moroccan and early-evening jazz vibe, transitions to popular music as the night progresses. It can accommodate both live and recorded music.

Sales Process

This property is being sold by way of a Private Tender process under a Sole Mandate with CBRE Excellerate.

Interested parties will have access to the Property Brochure and NDA on registration on the CBRE-X online website.

Should you wish to access the full Due Diligence information in the ClicktoPurchase (CTP) data room, we will require you to sign the Non-Disclosure Agreement (NDA), and provide information regarding the entity and individuals represented by that entity, that is expressing an interest in the property. This can be in the form of a link to your company website, your company profile or a brief resume for both the company and key individuals involved in the transaction.

On successful review of your registration, you will be granted access to the CTP data room. Besides all DD documentation, you will also have access to the sale agreement.

Should you wish to submit an offer on the property, you will be required to provide proof of funds or comfort from a financial institution that they would favourably consider an application from yourself for funding for the property in question. Interested parties are invited to submit their best unconditional offer as soon as possible.

Only interested parties that have submitted an NDA and provided the aforementioned information, will be invited to view the property in the company of the Agent or a representative of the Seller.

FICA and KYC verification will be required in order to register on (CTP).

In the instance where a binding offer acceptable to the Seller is presented, the Seller reserves the right to accept any offer but undertakes to instruct the Agent to inform all interested parties (those that have signed a NDA and accessed the DD information via CTP) that there is an offer under consideration at least 5 business days after receipt of that offer.

The agent will present all offers to the Sellers.

All offers need to be open for acceptance for a minimum period of 15 business days from date of submission.

The agent will communicate acceptance of their offer to the winning party and inform all other parties that have not been successful.

Offers will be assessed on, amongst others, the following criteria:

The price offered.

Ability to perform and provision of comfort letter or proof of funds for the transaction in question.

Conditionality of the offer and timeline to conclude the deal.

Disclaimer

The website provides information about properties but does not guarantee its accuracy. Users access the site at their own risk and should seek professional advice before making any decisions based on the information provided. Property descriptions are general and do not constitute an offer or contract. All details are believed to be correct but should be verified by users.

The company and its employees do not make any representations or warranties regarding the properties. Prices quoted are exclusive of taxes. The information on the website may contain errors, omissions, or may change without notice. Users should conduct their own investigations before making any investment decisions. The information provided should not be considered financial or investment advice.

Any information given by the company or the vendor is for illustration purposes only and does not constitute a representation, condition, or warranty. Users are responsible for conducting their own due diligence to verify the accuracy of the information provided.

Contact Lead Agent

Omar Benkabbou

+212 620 009090

Omar.Benkabbou@cbre.com

Fabio Nava

+27 (0) 82 585 2498

Fabio.Nava@cbreexcellerate.com

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Contacts

CBRE Excellerate

+27 (0) 11 911 8000