| Strategic Capital Partners |
| Franchise Comparison |
|
Existing |
|
|
Westin |
|
Hilton |
|
Marriott |
|
Calculation Requirmement |
|
| Market Share Index |
| Occupancy |
82.30 |
|
|
109.0 |
|
107.0 |
|
108.0 |
| ADR |
96.80 |
|
|
115.0 |
|
106.0 |
|
110.0 |
| Revpar |
82.30 |
|
|
125.4 |
|
113.4 |
|
119 |
|
| Hotel Financial Report – Prior Year |
| Available Rooms |
146,000 |
| Occupancy |
70% |
|
|
|
|
|
|
|
|
Calculate new occupancy at the brand benchmark |
| Occupied Rooms |
102,200 |
|
|
|
|
|
|
|
|
Calculate new occupied rooms |
| ADR |
$ 165.00 |
|
|
|
|
|
|
|
|
Calculate new ADR at the brand benchmark |
| RevPar |
$ 115.50 |
|
|
|
|
|
|
|
|
Calculate new RevPar (Occupancy % X ADR) |
|
| Revenue |
| Room Revenue |
$ 16,863,000 |
65.0% |
|
|
|
|
|
|
|
Calculate room revenue (RevPar X Available Room Nights) |
| F&B |
$ 7,782,923 |
30.0% |
|
|
|
|
|
|
|
Calculate on a per room occupied basis for existing, apply to new occupied room nights |
| Other |
$ 1,297,154 |
5.0% |
|
|
|
|
|
|
|
Calculate on a per room occupied basis for existing, apply to new occupied room nights |
| Total |
$ 25,943,077 |
100.0% |
|
| Departmental Profit |
| Rooms |
$ 12,647,250 |
75% |
|
|
|
|
|
|
|
Use Existing Profit % for revised revenue |
| F&B |
$ 2,334,877 |
30% |
|
|
|
|
|
|
|
Use Existing Profit % for revised revenue |
| Other |
$ 1,102,581 |
85% |
|
|
|
|
|
|
|
Use Existing Profit % for revised revenue |
| Total |
$ 16,084,708 |
62% |
|
|
|
|
|
|
|
Calculate (Total Departmental Profit divided by Total Revenue) |
|
| Undistributed Expenses |
| Adminstrative |
$ 1,556,585 |
6.0% |
|
|
|
|
|
|
|
Use Existing cost %, apply against total revenue |
| Sales and Marketing |
$ 1,297,154 |
5.0% |
|
|
|
|
|
|
|
Use Existing cost %, apply against total revenue |
| Repairs and Maintenance |
$ 908,008 |
3.5% |
|
|
|
|
|
|
|
Use Existing cost %, apply against total revenue |
| Energy Expense |
$ 518,862 |
2.0% |
|
|
|
|
|
|
|
Use Existing cost %, apply against total revenue |
| Total Undistributed Expenses |
$ 4,280,608 |
16.5% |
|
|
|
|
|
|
|
Calculate (Total Undistributed Expense divided by Total Revenue) |
| Franchise Related Fees |
| Franchise Royalty Fee |
$ 843,150 |
3.3% |
|
|
6% Rooms |
|
5.5% Rooms |
|
6% Rooms |
Apply % to revised room revenue |
| Sales and Marketing Fee |
$ 252,945 |
1.0% |
|
|
2% Rooms |
|
2.5% Rooms |
|
2% Rooms |
Apply % to revised room revenue |
| Reservations Expense |
$ 337,260 |
1.3% |
|
|
$5.65 POR |
|
$4.95 POR |
|
0.8% Rooms |
Apply $ POR or % of room revenue |
| Frequency Program Fee |
$ 389,146 |
1.5% |
|
|
1.5% Total |
|
1.7% Total |
|
1.8% Total |
Apply % to Total Revenue |
| Total Franchise Related Fees |
$ 1,822,501 |
7.0% |
|
| Gross Operating Profit |
$ 9,981,599 |
38.5% |
|
|
|
|
|
|
|
Calculate based on revised costs. |
|
| FFE Reserve |
$ 1,297,154 |
5.0% |
|
|
5% |
|
6% |
|
5% |
|
| Initial Supplies |
|
|
|
$ 55,000 |
| Other Fees |
| Training |
|
|
|
$ 10,500 |
| Guest Response |
|
|
|
$ 25,000 |
|
| Product Improvement Plan |
|
|
|
$ 3,500,000 |
|
$ 3,200,000 |
|
$ 3,000,000 |
|
|
| Net Benefit Year 1 |
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Variance to Existing Franchise |
| Variance in FFE Reserve |
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Variance to Existing Franchise |
| Intial Supplies |
|
|
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Above |
| Fees |
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|
Above |
| PIP |
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Above |
| Net Benefit |
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|
Subtract incremental cash cost from incremental profit |
|
