| 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 | | | | | | | | | | Variance to Existing Franchise |
| Variance in FFE Reserve | | | | | | | | | | Variance to Existing Franchise |
| Intial Supplies | | | | | | | | | | Above |
| Fees | | | | | | | | | | Above |
| PIP | | | | | | | | | | Above |
| Net Benefit | | | | | | | | | | Subtract incremental cash cost from incremental profit |
|
