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Group 6 (Fall 2014)
Chi Yu Chen (Peter)
Danni Lu
Sutrisno Tan
Wut Yi Soe
Market Overview Property Location
Property Description
Property Pro-Forma
Cash Flows
The Peninsula New York is housed in a 23-
story, 1905 landmark building on Fifth
Avenue and 55th Street in mid-town
Manhattan. The hotel, acquired by the HSH
Group (The Hong Kong and Shanghai Hotels,
Limited) in 1988, carries an old world
elegance with modern interiors. Peninsula
Hotels Group is one of the world’s premier
hospitality brands and the standard of the
New York property’s rooms reflect this.
Classically styled without being staid, each
room features intuitive bedside electronic
controls, a marble bathroom and Oscar de la
Renta toiletries that are exclusive to
Peninsula Hotels.
 New York City is arguably the world’s most exciting city, home to some of the
most recognizable and cherished landmarks and attractions. The island of
Manhattan alone packs more legendary icons into one area than any other
city, and with so much to see and do, a trip to New York may seem a little
overwhelming. We have compiled some of the city's most popular attractions,
some evergreen and some new and noteworthy. All are worth a visit.
 700 Fifth Avenue of 55th Street, 10019, USA
 + 212 956 2888
 pny@peninsula.com
 17 miles (28km) from John F. Kennedy/10miles(15km) from LaGuardia/ 15
miles(25km) from Newark
MAP
 In-House Transportation
The Peninsula New York
provides only the best for its guests with
a bespoke Peninsula Edition BMW
house car based on availability or, for
guests who have booked a suite. This
complimentary three-hour chauffeur-
driven service will allow our customers
to explore the city in one of two MINI
Cooper S Clubmans customized with
refrigerators, iPod connections and
more for true Peninsula style and
comfort.
 Public Transportation
Take E, M train and get off at 5
Ave/53 St and walk to The Peninsula
New York about 2 minutes (0.1 miles).
The Peninsula places you amid world-class shopping: Armani, Prada,
and Gucci are all less than 2 blocks away.
Paley Park St. Thomas Church
Prefer culture to couture?
The Peninsula is just 3
blocks from both the
Theater District and the
Museum of Modern Art.
For more organic views,
spend some downtime in
Central Park, only 4 blocks
north, offering 843 acres
of green space and
unparalleled people-
watching.
MOMACentral Park
Restaurant
& Bar
Vu hair NY
The
Peninsula
Spa
The Pool
Fitness
Center
Salon De Ning
Just one of the spectacular dining options
at the Peninsula New York, Salon De
Ning is a top-rated rooftop bar and
lounge. One of New York’s hottest hubs,
Salon De Ning features two outdoor
terraces, Chinese-style day beds, and
spectacular NYC views.
Fitness Center and Pool
A fitness enthusiast’s paradise, the fitness
center at the Peninsula New York boasts a
range of up-to-the-minute equipment, a sun-
lit yoga studio, and personal trainers. The
fitness center also features a large glass-
enclosed indoor pool with stunning views,
and food and drink service.
The Peninsula Spa by ESPA
Named a five-star spa by Forbes Travel guide, The Peninsula
Spa by ESPA is a retreat like no other. Recently awarded the
#1 Hotel Spa in the USA by Condé Nast, this city-sanctuary
offers treatments and therapies influenced by philosophies
from across the globe.
Superior Room
Size
370 sq ft / 34 sq m
Rates from US$ 595
per night
Deluxe SuiteSize
1,050 sq ft / 98 sq m
Rates from US$ 4,100
per night
Items Amount
Purchase Price $647,275,087.89 (Going in cap rate: 7.1%)
Cash on Hand $100,000,000
Loan Amount $547,275,087.89
LTV 84.55%
Mortgage Interest 4.043%, 30 years
Debt Service $17,837,748
Items Assumptions Reference
Rent $800 (185 Rooms, 54 Suites) Peninsula Website
Vacancy Rate
Year 1: 13%
Year 2: 12%
Year 3: 11%
Year 4-6: 8-10%
Market Report
RETaxes 6,545,196 Market Report
Management Fee 5% (EGI) Given
Utilities $10,000 Per Room Projection
CAM $24,000 Per Room Projection
Admin And Marketing $45,000 Per Room Projection
Insurance $3,000 Per Room Projection
Cash Flow
inYear
2014 2015 2016 2017 2018 2019
Price/Net
Operating
Income
(647,275,087.89) 45,956,531.24 46,458,003.93 46,943,113.62 47,411,042.18 47,860,930.54
Loan/Debt
Service
547,275,087.89 (17,837,747.99) (17,837,747.99) (17,837,747.99) (17,837,747.99) (17,837,747.99)
Sale Price
(Exit cap
rate 8.6%)
- - - - - 561,533,449.89
Payoff
Loan
- - - - -
(518,247,846.97)
Total (100,000,000) 28,118,783.25 28,620,255.94 29,105,365.64 29,573,294.19 73,308,785.47
IRR
“Great investors need to have the right
combination of intuition, business sense and
investment talent” -Andrew Lo-
 http://www.nycgo.com/articles/nyc-statistics-page
 http://newyork.peninsula.com/en/special-offers?gclid=CJLxo4-
LrsICFW4V7AodNiAAlA
 http://www.propertyshark.com/mason/Property-Report/?propkey=20577
 http://www.bankrate.com/
 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0C
CgQFjAB&url=http%3A%2F%2Fwww.hvs.com%2FJump%2FArticle%2FDownloa
d.aspx%3Fid%3D6365&ei=zzSBVPmgGtSAygTf3YDYBg&usg=AFQjCNEcPHBbIT
51lTjbl1LpJoz7Sl5Jmg&sig2=FyCMVOGqAdx2psURhqImfA&bvm=bv.80642063,d
.aWw&cad=rjt
 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja
&uact=8&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.hvs.com%2Fjump%2Far
ticle%2Fdownload.aspx%3Fid%3D6766&ei=9zSBVM_pNsGeyASikIGQBQ&usg=
AFQjCNFueNMz9Mtjlzxkn3dDbonDx6-
0zg&sig2=N335QFnViEr4bGDRNu3TYg&bvm=bv.80642063,d.aWw

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The Peninsula Hotel (Property Investment Finance)

  • 1. Group 6 (Fall 2014) Chi Yu Chen (Peter) Danni Lu Sutrisno Tan Wut Yi Soe
  • 2. Market Overview Property Location Property Description Property Pro-Forma Cash Flows
  • 3.
  • 4. The Peninsula New York is housed in a 23- story, 1905 landmark building on Fifth Avenue and 55th Street in mid-town Manhattan. The hotel, acquired by the HSH Group (The Hong Kong and Shanghai Hotels, Limited) in 1988, carries an old world elegance with modern interiors. Peninsula Hotels Group is one of the world’s premier hospitality brands and the standard of the New York property’s rooms reflect this. Classically styled without being staid, each room features intuitive bedside electronic controls, a marble bathroom and Oscar de la Renta toiletries that are exclusive to Peninsula Hotels.
  • 5.  New York City is arguably the world’s most exciting city, home to some of the most recognizable and cherished landmarks and attractions. The island of Manhattan alone packs more legendary icons into one area than any other city, and with so much to see and do, a trip to New York may seem a little overwhelming. We have compiled some of the city's most popular attractions, some evergreen and some new and noteworthy. All are worth a visit.  700 Fifth Avenue of 55th Street, 10019, USA  + 212 956 2888  pny@peninsula.com  17 miles (28km) from John F. Kennedy/10miles(15km) from LaGuardia/ 15 miles(25km) from Newark
  • 6. MAP  In-House Transportation The Peninsula New York provides only the best for its guests with a bespoke Peninsula Edition BMW house car based on availability or, for guests who have booked a suite. This complimentary three-hour chauffeur- driven service will allow our customers to explore the city in one of two MINI Cooper S Clubmans customized with refrigerators, iPod connections and more for true Peninsula style and comfort.  Public Transportation Take E, M train and get off at 5 Ave/53 St and walk to The Peninsula New York about 2 minutes (0.1 miles).
  • 7.
  • 8. The Peninsula places you amid world-class shopping: Armani, Prada, and Gucci are all less than 2 blocks away.
  • 9. Paley Park St. Thomas Church Prefer culture to couture? The Peninsula is just 3 blocks from both the Theater District and the Museum of Modern Art. For more organic views, spend some downtime in Central Park, only 4 blocks north, offering 843 acres of green space and unparalleled people- watching. MOMACentral Park
  • 10. Restaurant & Bar Vu hair NY The Peninsula Spa The Pool Fitness Center Salon De Ning Just one of the spectacular dining options at the Peninsula New York, Salon De Ning is a top-rated rooftop bar and lounge. One of New York’s hottest hubs, Salon De Ning features two outdoor terraces, Chinese-style day beds, and spectacular NYC views. Fitness Center and Pool A fitness enthusiast’s paradise, the fitness center at the Peninsula New York boasts a range of up-to-the-minute equipment, a sun- lit yoga studio, and personal trainers. The fitness center also features a large glass- enclosed indoor pool with stunning views, and food and drink service. The Peninsula Spa by ESPA Named a five-star spa by Forbes Travel guide, The Peninsula Spa by ESPA is a retreat like no other. Recently awarded the #1 Hotel Spa in the USA by Condé Nast, this city-sanctuary offers treatments and therapies influenced by philosophies from across the globe.
  • 11. Superior Room Size 370 sq ft / 34 sq m Rates from US$ 595 per night
  • 12.
  • 13. Deluxe SuiteSize 1,050 sq ft / 98 sq m Rates from US$ 4,100 per night
  • 14.
  • 15.
  • 16. Items Amount Purchase Price $647,275,087.89 (Going in cap rate: 7.1%) Cash on Hand $100,000,000 Loan Amount $547,275,087.89 LTV 84.55% Mortgage Interest 4.043%, 30 years Debt Service $17,837,748
  • 17. Items Assumptions Reference Rent $800 (185 Rooms, 54 Suites) Peninsula Website Vacancy Rate Year 1: 13% Year 2: 12% Year 3: 11% Year 4-6: 8-10% Market Report RETaxes 6,545,196 Market Report Management Fee 5% (EGI) Given Utilities $10,000 Per Room Projection CAM $24,000 Per Room Projection Admin And Marketing $45,000 Per Room Projection Insurance $3,000 Per Room Projection
  • 18.
  • 19. Cash Flow inYear 2014 2015 2016 2017 2018 2019 Price/Net Operating Income (647,275,087.89) 45,956,531.24 46,458,003.93 46,943,113.62 47,411,042.18 47,860,930.54 Loan/Debt Service 547,275,087.89 (17,837,747.99) (17,837,747.99) (17,837,747.99) (17,837,747.99) (17,837,747.99) Sale Price (Exit cap rate 8.6%) - - - - - 561,533,449.89 Payoff Loan - - - - - (518,247,846.97) Total (100,000,000) 28,118,783.25 28,620,255.94 29,105,365.64 29,573,294.19 73,308,785.47 IRR
  • 20.
  • 21. “Great investors need to have the right combination of intuition, business sense and investment talent” -Andrew Lo-
  • 22.  http://www.nycgo.com/articles/nyc-statistics-page  http://newyork.peninsula.com/en/special-offers?gclid=CJLxo4- LrsICFW4V7AodNiAAlA  http://www.propertyshark.com/mason/Property-Report/?propkey=20577  http://www.bankrate.com/  https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0C CgQFjAB&url=http%3A%2F%2Fwww.hvs.com%2FJump%2FArticle%2FDownloa d.aspx%3Fid%3D6365&ei=zzSBVPmgGtSAygTf3YDYBg&usg=AFQjCNEcPHBbIT 51lTjbl1LpJoz7Sl5Jmg&sig2=FyCMVOGqAdx2psURhqImfA&bvm=bv.80642063,d .aWw&cad=rjt  https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja &uact=8&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.hvs.com%2Fjump%2Far ticle%2Fdownload.aspx%3Fid%3D6766&ei=9zSBVM_pNsGeyASikIGQBQ&usg= AFQjCNFueNMz9Mtjlzxkn3dDbonDx6- 0zg&sig2=N335QFnViEr4bGDRNu3TYg&bvm=bv.80642063,d.aWw