With 572 berths and a major commercial area, Club de Mar Mallorca is a leading marina in the Spanish Mediterranean, thanks to its established and prestigious experience in the sector since 1969. This, together with the extension of the concession to 2044, sparked a decision to modernise the marina. This modernisation includes reorganisation of the port basin to increase the size of the berths, and construction of a new commercial area, to enhance the quality of the services provided while considering sustainability.
Club de Mar Mallorca (on behalf of Banco Santander, the lender) trusted in ALG’s experience and knowledge of marinas to assess the commercial viability of the project.
Objectives, goals and purposes
ALG’s aim was to assess Club de Mar's business plan for the port expansion from an independent point of view, fulfilling the following objectives:
- Understanding the current and future value proposition of Club de Mar Mallorca in terms of the type of marina, customers, vessels, etc.
- Description of the local and regional market and analysis of the competitiveness of the marina in its target market.
- Determine and justify potential new demand, based on competitive positioning, new developments and expected growth in demand.
- Determine the economic and financial feasibility of the project.
Study methodology and activities
To achieve these objectives, ALG divided its activities into two main blocks: market research and the business plan.
The scope of work for the market research included a comparison of Club de Mar Mallorca and its competitors, covering:
- Identification of the segments of demand to be analysed and the areas/marinas that represent the competition.
- A description of supply analysing the main competing marinas for existing marinas and new developments (number of berths and distribution by LOA, ancillary services provided, benchmark tariffs…).
- Analysis of demand (historical development of the fleet by LOA, analysis of current and historical occupation in the competing marinas by LOA and seasonality).
- Review of Club de Mar Mallorca’s value proposition and its current and future competitive positioning with regard to market needs, conducting a SWOT analysis.
- Definition of potential occupation scenarios.
The scope of the business plan includes projection of Club de Mar Mallorca’s future performance based on its past performance and its competitive positioning according to the conclusions obtained from the market study. This involved:
- Projection of demand scenarios for the main business model variables (berth occupation, demand for electricity, water and fuel supplies, occupation of retail spaces and other additional services provided).
- Revenue forecasts based on demand projections and tariffs defined in the value proposition according to benchmark analysis.
- Estimation of costs (fixed and variable), CapEx investment budget and disbursements, and financing assumptions.
- Preparation of financial statements for the project: profit and cash flow statements and analysis of the profitability of the project (IRR, NPV).
- Sensitivity analysis of critical variables, such as occupancy, tariffs and financial assumptions.
Success and outcomes
ALG provided support throughout the financing process to attract an investor to develop the port modernisation project for Club de Mar Mallorca, accounting for over 60 million euros in investment.
Work within the boundaries of Club de Mar Mallorca is now underway, with the marina expected to be fully operational by 2024. This is a year later than the original completion date, which was pushed back by the COVID-19 pandemic.
This complete transformation process will enable the marina to maintain its position as one of the leading locations in the Mediterranean, offering the highest quality standards in one of the world's most important yachting destinations.