Desaru Coast is a master planned development area in Southern Malaysia that is envisioned as an integrated premium destination with a broad appeal. The project will eventually stretch over 1,500 ha and include numerous resorts and residential properties, two aquatic theme parks, 45-holes of championship-standard golf, a convention center, a hospitality school, and a waterfront retail center.

The scope of work involved a market research study related to the feasibility of the redevelopment and expansion of the existing properties, which would eventually entail the following:

• 4 Proposed Hotels

     - Aman Country Club and Villas – 50 keys and 50 branded villa units (4BR)

     - Sheraton Desaru Resort & Convention Centre – 350 keys

     - Plantation Hotel – 400 keys

     - Datai Desaru – 50 keys

• 5,000 Residential Units

• Two Championship Golf Courses (45 holes)

• Retail & Lifestyle Village/River Walk

• Marina – 250 berths (2018)

• Ocean Quest & Ocean Park Themed Attractions

Tasks included:

• Market Area Analysis;

• Resort Hotel & Branded Villa Market Analysis;

• Benchmark Review: Hotel-based Meeting and Convention Center Space;

• Resort Residential Real Estate Market Analysis;

• Golf Market Analysis;

• Resort Retail Analysis;

• Regional Marina Market Analysis;

• Immersive Attraction and Waterpark Market Analysis;

• Detailed Demand, Attendance and Pricing Forecasts for the proposed development including projections of likely visitation, take up and occupancy levels as well as achievable sales and rental rates for each proposed program element;

• Indicative Projections of Income and Expense for the various program elements;

• Outline Projections of Cash Flow from Rental Pool Operations (USALI-conform);

• Evaluation of the proposed developments’ ability to meet debt service obligations (DSCR, LLCR, PLCR);

• Estimate of expected Investment Returns and Payback Periods

More information on the project can be found here: https://desarucoast.com/ 

Brian Jennett led the team that performed this work while employed as a Director of Economics + Planning at AECOM.