Calculate a rooms supportable estimate and a one-year financial projection to the point of income before fixed charges for the following hypothetical resort development project. Use 2014 as the current year for the demand projections and assume the resort will take two years to build with its first full operational year being 2017.
Calculations for this should follow example provided. Therefore, Microsoft Excel must be used for calculating these numbers.
Competing Lodging Demand Profile Data:
Property No. of Rooms Occupancy Market Segmentation
A 300 70% C/B=40%, G/C/C=30%, T/T=30%
B 300 62% C/B=60%, G/C/C=20%, T/T=20%
C 320 86% C/B=50%, G/C/C=10%, T/T=40%
D 210 72% C/B=30%, G/C/C=50%, T/T=20%
Com/Bus. Growth Categories Percent Growth
Comm. Leasing Activity 4
Population 6
Labor and Employment 1
Transportation 4
Retail sales 1
Eating & Drinking Sales 3
Group/Conf./Convention Growth Categories: Percent Growth
Groups/Conferences 2
Conventions 2
Tourist/Transient Growth Categories: Percent Growth
Local Attraction Attendance 2
Local highway traffic 1
Interstate traffic 2
Financial Projection Data:
Number of rooms in proposed resort property: 400
Average rate in todayâs dollars : $285.00
First through third year projected occupancy: 68%
Revenue Percentage Calculations/Assumptions:
Room Revenue= No. of rooms X average rateX occupancy X 365 days
Food Revenue:
One restaurant with 120 seats, open all year, one breakfast meal service with an average check for $11.00 and a turn-over rate of 1.3.
Beverage Revenue:
30% of food revenue
Telecommunications Revenue:
$2.50 per occupied rooms. (occupied rooms = 365 days X Projected Occupancy X Number of rooms)
Other Revenue:
5% of room revenue.
Expense Percentage Assumptions:
Rooms:
Room Pay/Rel 13
Other 3
Food & Beverage:
Food Cost 30
Bev. Cost 20
Pay/Rel 16
Other 5
Telecommunication Expenses:
Assume telecommunications expenses are 25 percent greater than telephone revenue.
Undistributed Operating Expense Percentages:
A&G 4
Marketing 3
P.O.M. 4
Energy 2
Mgt. Fee 5
Calculate a rooms supportable estimate and a one-year financial projection to the point of income before fixed charges for the following hypothetical resort development project. Use 2014 as the current year for the demand projections and assume the resort will take two years to build with its first full operational year being 2017.
Calculations for this should follow example provided. Therefore, Microsoft Excel must be used for calculating these numbers.
Competing Lodging Demand Profile Data:
Property No. of Rooms Occupancy Market Segmentation
A 300 70% C/B=40%, G/C/C=30%, T/T=30%
B 300 62% C/B=60%, G/C/C=20%, T/T=20%
C 320 86% C/B=50%, G/C/C=10%, T/T=40%
D 210 72% C/B=30%, G/C/C=50%, T/T=20%
Com/Bus. Growth Categories Percent Growth
Comm. Leasing Activity 4
Population 6
Labor and Employment 1
Transportation 4
Retail sales 1
Eating & Drinking Sales 3
Group/Conf./Convention Growth Categories: Percent Growth
Groups/Conferences 2
Conventions 2
Tourist/Transient Growth Categories: Percent Growth
Local Attraction Attendance 2
Local highway traffic 1
Interstate traffic 2
Financial Projection Data:
Number of rooms in proposed resort property: 400
Average rate in todayâs dollars : $285.00
First through third year projected occupancy: 68%
Revenue Percentage Calculations/Assumptions:
Room Revenue= No. of rooms X average rateX occupancy X 365 days
Food Revenue:
One restaurant with 120 seats, open all year, one breakfast meal service with an average check for $11.00 and a turn-over rate of 1.3.
Beverage Revenue:
30% of food revenue
Telecommunications Revenue:
$2.50 per occupied rooms. (occupied rooms = 365 days X Projected Occupancy X Number of rooms)
Other Revenue:
5% of room revenue.
Expense Percentage Assumptions:
Rooms:
Room Pay/Rel 13
Other 3
Food & Beverage:
Food Cost 30
Bev. Cost 20
Pay/Rel 16
Other 5
Telecommunication Expenses:
Assume telecommunications expenses are 25 percent greater than telephone revenue.
Undistributed Operating Expense Percentages:
A&G 4
Marketing 3
P.O.M. 4
Energy 2
Mgt. Fee 5
