BUSINESS STRATEGY
Sunborn International strives to be the global market leader in floating accommodation, tourism and event properties.
Sunborn London Yacht Hotel Strategy
Sunborn London is Sunborn International’s second yacht hotel in London. It has been operating at its current location since 2014. Sunborn International’s strategy for Sunborn London Yacht Hotel is to continue its operations in London until the completion of a new, larger yacht hotel in London by the end of 2026. Sunborn London Yacht Hotel will then move to Seville, where it will continue to operate.
In conjunction with the move to Seville, Sunborn London Yacht Hotel will undergo improvements to its public and accommodation facilities, as well as energy efficiency upgrades. Sunborn International has negotiated a 30-year lease with an option to extend the lease in Seville. The Group expects to enter into a final lease agreement in the first half of 2025, subject to its approval of the technical implementation plan for the project by the Seville Port Authority.
In Seville, the ship will be moored in the Port of Seville near the Muelle de las Delicias park, a central location within walking distance of, among other attractions, Plaza de España and the Feria de Abril fairgrounds. The strategy in Seville is supported by the growing demand for hotel capacity, the convenient location just two and a half hours by train from Madrid, and Seville being the fourth-largest city in Spain.
After Sunborn London Yacht Hotel moves to Seville, the Group plans to place a new Evolution series luxury carbon-neutral yacht hotel on the same berth in London. This new yacht hotel will feature 225 rooms, increased restaurant capacity, lower operating costs, and high energy efficiency. Sunborn International already has permanent planning permission and a 30-year berth lease for the new London Yacht Hotel, which will take effect upon completion and arrival of the new vessel.
The construction contract for the new London Yacht Hotel can be signed once the Spanish Export Credit Agency (CESCE) has approved it. Financing for the construction requires a self-financing share, which the Group intends to cover through funds raised in the directed share issues in connection with the Share Exchange. Following this, CESCE is expected to approve the construction contract during the first half of 2025.
According to a February 2022 valuation report by leading property valuation company CBRE, the net present value of the new London Yacht Hotel is approximately £106 million (approximately €127 million). Sunborn International Group is targeting a turnover of £18.5 million (approximately €22.1 million) and a stabilised run-rate operating margin of £7.2 million (approximately €8.6 million) by the fourth year of operation. The directed share issues associated with the Share Exchange will enable the construction of the new London Yacht Hotel to proceed on schedule and as planned.
Sunborn Gibraltar Yacht Hotel Strategy
In March 2025, SBIH announced a joint venture project and the purchase of a majority stake in the Gibraltar vessel. Upon completion of the transaction, ownership of the vessel would be transferred to the Singaporean joint venture, XNS Holdings PTE. LTD., in which SBIH would hold a 42 percent stake. The total value of the transaction is USD 155 million. If the transaction is not completed, the vessel will continue to operate as normal under the ownership of Sunborn (Gibraltar) LTD.
The arrangement allows the current hotel ship to continue operations in Gibraltar for the time being and facilitates planning for a potential new hotel to be built in Gibraltar. The lease agreement for the Sunborn Gibraltar Yacht Hotel's berth at Gibraltar's Ocean Village Marina is valid until 15 August 2028. Sunborn International Group’s strategy is to continue its hotel operations in Gibraltar after the current berth agreement expires.
Sunborn International Group is currently negotiating for a new hotel ship with 140–160 rooms to be built in Gibraltar. The design of this new vessel will incorporate over a decade of operational data collected in Gibraltar and reflect the latest market assumptions regarding the development and demand for hotel accommodation and restaurant services in the years ahead.
If the current yacht hotel were to be relocated, Sunborn International’s management estimates that the relocation could generate approximately 2–3% of annual turnover in the medium term, once operations have stabilized. Additionally, an annual growth of EUR 5 million in the Group's operational EBITDA is projected. This estimate is based on the yacht hotel's current turnover and costs, along with a market analysis conducted by management.
Sunborn International Growth Strategy
The Sunborn International's growth strategy is to secure long-term berths in the world's most important metropolises and to provide hotel, event, and restaurant services there cost-effectively with products that are scalable and replicable.
Sunborn International is continuously evaluating new locations for relocating existing or building new yacht hotels. Its strategy focuses on identifying attractive destinations with high demand for hotel accommodation and high property rental prices, where Sunborn International's model is most competitive. These locations are typically major cities where Sunborn International can utilise otherwise unused or underutilised waterfront areas, especially in environments where high costs or complex permitting processes hinder conventional construction.
Many of the world’s largest cities have coastlines or harbor areas located centrally. In such attractive locations, Sunborn seeks to secure long-term rights to moor its vessels. These long-term agreements provide operational flexibility, allowing the Group to scale accommodation up or down depending on demand, and to reorganise yacht hotel locations globally as needed.
Additionally, Sunborn International's strategy is to locate yacht hotels near tourist attractions to take advantage of natural demand for accommodation—such as around exhibition centers. The mobility of yacht hotels also allows Sunborn to respond to peaks in demand created by large public events. Vessels can be temporarily relocated to areas experiencing unusually high visitor numbers, thereby also supporting event organizers by boosting available accommodation.
Over the next 5–10 years, Sunborn International plans to build over 3,500 hotel rooms based on its new Evolution series of ships. It is also planning to develop new types of floating structures more suitable for a wider range of destinations beyond yacht hotels. Current development projects are underway in London, Vancouver, and Seville, with active initiatives in Ireland, Iceland, China, the Middle East, and Oceania.