Lodging Demand Profile Property Rooms Daily Rooms Yearly A 340 124,100 B 320 116,800 C 450 164,250 D 150 54,750 Total 1260 459,900 Market

Using the information given below and with the aid of data presented via "Completed Checkpoint Assignment Example" attached, 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 critical assignment should follow the Checkpoint Assignment 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                      4Population                                           6Labor and Employment                      1Transportation                                    4Retail sales                                           1Eating & Drinking Sales                       3

Group/Conf./Convention Growth Categories: Percent Growth

Groups/Conferences                                    2Conventions                                                  2                           

Tourist/Transient Growth Categories: Percent Growth

Local Attraction Attendance                      2Local highway traffic                                  1Interstate traffic                                          2  

Financial Projection Data:

Number of rooms in proposed resort property:      400

Average rate in today’s 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     13Other                     3

Food & Beverage:

Food Cost      30Bev. Cost       20Pay/Rel          16Other              5

Telecommunication Expenses:

Assume telecommunications expenses are 25 percent greater than telephone revenue.

Undistributed Operating Expense Percentages:

A&G             4Marketing   3P.O.M.         4Energy         2Mgt. Fee      5