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The Merchant, Chinatown NY - Miguel Guedes de Sousa

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The Merchant, Chinatown NY - Miguel Guedes de Sousa

  1. 1. The Merchant Chinatown, NY
  2. 2. Merchant Hospitality Group will launch a new hotel in Chinatown, New York. This brand will bring you into the past and show you innovations of the future together under one roof. In the South of the city, we find the THE MERCHANT hotel at 396 Broadway.
  3. 3. MERCHANT: a new Hotel the vibrant Chinatown district of New York City. A 10-story brick-and-limestone building from 1899, designed by William Birkmire, architect of the Mexican National Opera House. It runs for a full 175 feet along Walker Street and faces onto Cortlandt Alley, a place that echoes with past eras and is described as one of the last pre-war streetscapes still to be found downtown.
  4. 4. MERCHANT ARRIVAL The car moves through the teaming Chinese wet market and glides past the New Museum, arriving at the front door of a massive brick façade with French style bronzed windows and doors that lead you from the frenetic exterior into a beautiful cloister with clean bright spaces that inspire your every sense. This is a serene moment in your life…
  5. 5. MERCHANT SERVICE From the room that you have requested to your favorite afternoon snack that was prepared for your arrival. You know what you want and the Merchant knows how to make it easy for you to have it. Your sense of comfort and well being is anticipated and is always thought of. If it’s your private jogging partner every morning or the turning down process only after you have left for dinner, it’s all about You… At long last.
  6. 6. LOBBY LOUNGE This is the library, conservatory, coffee and tea room all in one… like home.
  7. 7. the Shanghai MERCHANT
  8. 8. the Shanghai MERCHANT beer & duck house
  9. 9. ROOFTOP BEER GARDEN The kitchen of Burger Baby serves a world-class selection of burgers, rotisserie and grill items and entree salads that are sure to please even the most discerning palettes. The menu is ingredient driven, utilizing the absolute best available, fresh and organic ingredients that are hand-selected from regional sources. The price points enhance the experience with remarkable value – this is your place. While the burgers are the headliners, the menu mix, the energy and scene keep you coming back for more. Burger Baby is all about attitude: a vibrant environment with a positive, uplifting feel. Any time of day - breakfast, lunch, dinner or late night - you can count on Burger Baby to deliver or serve up what you want, a new concept delivering sexy food. burger baby what you love and what you crave…
  10. 10. BURGER BABY BEER GARDEN
  11. 11. Retail with a twist
  12. 12. Up to the Rooms
  13. 13. Whether you’re staying at Merchant House or Merchant Hotel you will experience our new sense of comfort, just like home.
  14. 14. Merchant House delivers design and innovation, making you want to come back to your home away from home.
  15. 15. The home larder on every other floor offers Merchant branded culinary surprises which make for easy home cooking.
  16. 16. “I leave my hotel feeling energized, loved and comforted… a new sense of power for adventure in this great city.”
  17. 17. Merchant HOSPITALITY GROUP
  18. 18. Merchant - a new feeling in hospitality
  19. 19. We design, develop and operate irresistible and profitable hotel, food and beverage concepts. Our mission Our culture delivers the promise of creating value through DESIGN, SERVICE & FOOD every time. We honor our social and environmental responsibilities.
  20. 20. a. kitchen restaurant, Philadelphia, PA AMAN-I-KHAS, Rajasthan, India Mercato di Vetro, Hollywood, CA AKA, Philadelphia, PA Waldorf=Astoria Hotel, New York, NY Voyeur, Hollywood, CA Certified Angus Beef, Wooster, OH Hard Rock Hotel & Casino, Las Vegas, NV Wild Knight, Phoenix, AZ Bull & Bear, New York, NY Dream Hotel, New York, NY Peacock Alley, New York, NY Sense Spa at The Carlyle, New York, NY Porto Vivo, Long Island, NY The Smith, New York, NY Baros Island, Maldives Wasted Space, Las Vegas, NV Fatty Crab, New York, NY Over the last 25 years the members of the Merchant Hospitality team have managed and helped build memorable brands Amangalla, Sri Lanka Magnolia Bakery, New York, NY Diamond Mills Inn, Saugerties, NY The Vault, New York, NY Aquila, Costa Rica Honey Baked Foods, Holland, OH Voyeur, Hollywood, CA Social Hollywood, Hollywood, CA Town Hall Restaurant, San Francisco, CA Night Hotel, New York, NY AKA, Central Park, Times Square, UN, Sutton Place, NY AKA, Washington DC Delphine, Hollywood, CA The Harrison, New York, NY Greystone Manor, Hollywood, CA Red Cat, New York, NY
  21. 21. The Team
  22. 22. Mark Zeff Design & Branding Based in New York City, Mark Zeff is an international, full-service design-consulting firm. Following its philosophy of natural fusion, Mark Zeff blends interior and environmental design and brand development to create experiences that inspire and stimulate the senses. Mark Zeff, founder and president of Mark Zeff approaches each project, from luxury yachts to the development of global brands and revolutionary hospitality ventures, with a holistic design methodology that embodies its natural fusion philosophy. With innovation as its bedrock, Mark Zeff delivers cutting edge design with an eye for elegance and style. Design & Branding Over the last 25 years, Mark Zeff has evolved from a residential design firm into one of the nation’s leading multi-disciplinary boutique design agencies. Zeff believes the attention to detail given to its private residential clients is essential to its success and is a characteristic the firm has maintained through its evolution. Mark Zeff began his career in the United States working with private clients throughout the world including Hilary Swank and Gabriel Bryne among others. The strength and range of the firm’s residential projects laid the groundwork for its expansion into commercial design and branding. The firm is involved with a number of mixed-use development and master planning projects including its work with Morgans Hotel Group on the re-design and expansion of the Hard Rock Hotel & Casino in Las Vegas. The design company completed its first project in Hong Kong for Another Department/Emperor Group, a concept store, Brother & Sister in Kowloon and in development is a 200-room hotel in the center of Hong Kong that will have two restaurants and a rooftop spa. Mark Zeff has also set the standard for luxury spas with the concepts and interiors for the Cornelia Spa on Fifth Avenue and Sense, a Rosewood Spa at The Carlyle Hotel, both located in New York City. Mark Zeff is counted among the Top-200 Interior Design Giants and the top 75 Hospitality Giants in Interior Design magazine. Mark Zeff is an award wining firm whose many accolades include: The Hospitality Design Award for Best Hotel/Day Spa, Gold Key Award for Excellence in Hospitality Design, Best of The Year by Interior Design, How International Design Award for Environmental Graphics, and Print magazine’s Design Annual Award and Creativity + Commerce.
  23. 23. Randy Cook Chief Financial Officer For the past 10 years Mr. Cook was part of the Executive Committee at Korman Communities working in different roles during the 100 year-old company’s rapid growth and brand development phase. Since 2006, Mr. Cook served as the Chief Operating Officer of the $1.5 billion Korman portfolio which owns and operates Class-A residential real estate as well the luxury extended-stay hotel brand AKA. In his most recent role Mr. Cook was responsible for the launching of the first luxury extended-stay hotel brand in the United States. Despite a challenging financial environment in the late 2000’s, Mr. Cook was able to lead the AKA brand to successful financial results, which allowed for the continued development and expansion of the AKA brand. Under Mr. Cook’s leadership, the AKA brand grew to 9 locations including Manhattan (4), Washington DC (2), Philadelphia, Los Angeles and London. As a new, ground-up brand Mr. Cook was responsible for designing and implementing all operating systems, personnel decisions and business strategies for the AKA brand. This includes establishing service standards, Chief Financial Officer reservations systems, standard operating procedures for all departments, food & beverage outlets, revenue management systems as well as marketing and branding platforms. Mr. Cook provided key leadership to AKA’s 500+ employees to collectively execute a brand mission with great pride and passion. AKA’s highly innovative concept has won major acclaim over the past several years including Inc. Magazine’s Best Extended Stay, Detail’s Magazine #1 High-End Extended Stay as well as praise from the New York Times, Wall Street Journal and Conde Nast Traveller. Prior to the launching of the AKA brand, Mr. Cook served as Korman’s Executive Vice President primarily working on real estate transactions during the Company’s very active period from 2003 to 2007. This included new property acquisition modeling, dispositions, portfolio forecasting, benchmarking and tax structuring. Before joining Korman Communities in 2002 Mr. Cook spent five years in the Real Estate Assurance Practice at PricewaterhouseCoopers. Mr. Cook’s clients included investors and operators of all property types of real estate including hotels, apartments, shopping centers, office buildings and industrial parks. Mr. Cook graduated from the University of Pennsylvania in 1997 with a B.A. in International Relations and a minor in Economics. While at the University, Mr. Cook studied business at The Wharton School as well as at the Warsaw School of Economics in Warsaw, Poland.
  24. 24. Jonathan Blitz Head of Operations Began his career in hospitality with the prestigious Aman Resorts. At the age of 22 he was appointed the youngest ever Manager of an Aman Resort by the Chairman, Adrian Zecha and the Director of Operations, Andrew Thomson. In this capacity, Jonathan Blitz developed Aman-i-Khas, the group’s first ever resort in Rajasthan, India which he subsequently ran successfully for a number of years. Under his leadership Aman-i-Khas was awarded numerous prestigious accolades such as: • Gallivanter’s Guide. The 2007 Awards for Excellence: Best Resort in India and the Indian Ocean - No. 2 • Tatler: Top Ten Spas. UK 2004 • Zagat Survey. Top International Hotels, Resorts & Spas Listed for Rajasthan, India: Notable Newcomers - No. 1. USA 2006 • Travel & Leisure. Top 25 Romantic Getaways. Top 10 Spas. 2004 • Conde Nast Traveler.100 Best New Hotels in the World 2004: Hot List -No. 1. 2004 In 2004, Jonathan was nominated as one of the top 5 General Managers in the World by Gallivanter’s Guide. Head of Operations Jonathan’s abilities were recognized by Adrian Zecha and in addition to his Management role at Aman-i-Khas he was given further responsibility and assigned special projects for Aman Resorts. He was made Manager of The Manor Hotel In Delhi; a boutique hotel under the Management of Aman Resorts. He also created Tented Resorts India Pvt. Ltd. for Aman Resorts for which he traveled around North and Central India, located, negotiated and secured 6 sites for development of future Aman Resorts. Jonathan was sent to the Kingdom of Bhutan to create a concept for a luxury lodge- which would be added to the existing Amankora collection. In 2007 Jonathan was sent to rehabilitate Amanwella which was a struggling Aman Resort in war-torn Sri Lanka. In 2010 Jonathan left Aman Resorts to assume leadership of Baros Maldives, an award winning luxury resort in The Maldives. Built in 1973, Baros Maldives is the third oldest resort in the Maldives and a member of SLH. Under his leadership Baros Maldives was awarded numerous prestigious accolades such as: • TripadvisorTravelers Choice 2011. · Top 10 Best Luxury Resorts Worldwide: Ranked 10th in the Top 10. · Best Luxury Resort Asia: Ranked 2nd in the Top 10. · Best for Romance (Asia): Ranked 2nd in the Top 10. • World Travel Awards 2011 Indian Ocean’s Leading Hotel • World Travel Awards 2010 Indian Ocean’s Leading Hotel • World Travel Awards 2010 Indian Ocean’s Leading Villa • TripadvisorTravelers Choice 2010: · Best Luxury Resort Asia: Ranked 5th in the Top 10 Hospitality Industry Jonathan’s core values are to lead his team through diligence, interpersonal skills, standards and innovation, leading them and therefore the business that he is running towards success and growth. His passion is the creation of unique, quality ‘once in a lifetime’ guest experiences. In his opinion these can turn a good holiday into an unforgettable holiday which he thinks is of paramount importance in the high end leisure segment of the Hospitality Industry.
  25. 25. John Doherty Chef & Menu Engineer After 30 extraordinary and fulfilling years at The Waldorf=Astoria, Executive Chef John Doherty leaves to fulfill his dream of entrepreneurship. Doherty says “the desire to create innovative menu and food concepts, develop exciting restaurant brands, and write additional books, is so powerful, that I must pursue my vision”. Doherty has aligned with Designer Mark Zeff to create exciting restaurant concepts in New York. Their mission is to “design and develop irresistible products and restaurant concepts & experiences that deliver on the promise every time.” Doherty will balance his time between developing and opening restaurants, products, and expanding the scope of his Leadership speaking engagements. He recently developed and opened Porto-Vivo Restaurant in Huntington, The Astor Room in Astoria and the Diamond Mills Inn in Saugerties N.Y. to rave reviews among other projects and is the Quality Ambassador and Consulting Chef for Certified Angus Beef. Chef & Menu Engineer Perhaps it was prophesy when the graduating class of 1978 at the Culinary Institute of America voted John Doherty as student most likely to succeed, because by the time Doherty turned 27, he was named Executive Chef at The Waldorf=Astoria. The year was 1985 and Doherty became the youngest person ever named to the position of Executive Chef in the New York landmark’s notable history. After more than 23 years after his appointment to the post, the passionate, affable culinary leader holds the distinction of having cooked for more presidents, royalty and heads-of-state than any other chef in the country. While holding the reigns of New York’s famed kitchen, Doherty elevated the quality of food to a level that positioned The Waldorf as one of New York’s dining hot spots. Doherty released The Waldorf=Astoria Cookbook in 2006, featuring over 120 recipes. “The challenge of this job has inspired me to grow personally and professionally. I have loved every minute of leading this inspired team of individuals through every special event, over the top request.” Beyond cooking technique and creativity, Doherty’s admirable leadership abilities were the key to the success of The Waldorf’s culinary operations, which garner more than $100 million in annual sales and are responsible for cuisine at some of the country’s loftiest galas, events and fundraisers; 24-hour room service; and three distinct, successful restaurants, Peacock Alley, Bull and Bear Steakhouse, and Oscar’s Cafe. Doherty’s Chef’s Table has been the focus of the PBS show, At The Chef’s Table and Doherty has appeared in numerous Travel Channel, A&E and Food Network programs. Other television appearances include The Today Show, CBS, CW11 and numerous appearances on regional affiliates. He is a frequent guest speaker at national culinary and hospitality colleges and industry events. He is an advisory board member to New York’s City Harvest, and the Culinary Institute of America. He has been awarded an honorary Doctorate degree from Johnson & Wales, an honorary Masters degree from the Culinary Institute of America and a Leadership award from Niagara University as well as Food Arts Magazines’ Silver Spoon Award.
  26. 26. Paul Clark International Merchant Consultant Paul is a qualified chartered accountant who has more than 25 years experience in hospitality, travel and transport, and hotel and resort companies. His expertise spans all areas of operations, sales, marketing and finance. In 1984 he joined Trusthouse Forte Hotels and was promoted to Director of Finance for North America. He then moved back to the UK to take up the role of Financial Controller for the Virgin Voyager Group which included Virgin Atlantic Airways. Paul left Virgin to become MD of Odyssey Resorts International, a chain of all inclusive resorts in the Caribbean, Mexico and Africa. International Merchant Consultant He then joined Sea Containers Ltd which also owned Orient Express Hotels as Commercial Director, a post he held for many years. He was then invited back to Virgin by Richard Branson to lead a start up Virgin Hotels venture. Paul provides consulting and management services, more latterly as CEO of DeVere Hotels, and worked with, amongst others, Marco Pierre White on developing new restaurant and hotel opportunities in the licensed retail arena. Together the two re-launched Wheeler’s of St James, a famous restaurant in London. Paul led the financing and roll out of a portfolio of branded boutique hotel/restaurants under the Wheelers brand; eight boutique hotel sites were acquired in eighteen months through LBO’s. Paul brings unparalleled sector, strategic and P&L experience to the Merchant Team, having had a successful track record with a number of well known and significant businesses and a number of non executive directorships in the hotel and leisure sector, both internationally and in the UK.
  27. 27. Successful experience matters. Creating a new concept of living with hospitality.
  28. 28. “Warm, engaging hospitality is at Merchant’s very core. We understand that caring, professional service, high quality food, and excellence in property management are all non-negotiable.” The Merchant team is comprised of three partners combining over 75 years of exceptional proven patterns of success in designing and launching new, innovative, and sustainable concepts comprised of hotels, restaurants, clubs and spas. The team possesses an outstanding track record that has resulted in numerous operations that have achieved iconic status. This team’s expertise is in launching new businesses that create tremendous excitement, interest and press that invariably culminates in massive guest traffic. We recognize that the key to long-term success lies in guest retention; as such, Merchant has mastered day-to-day operations by instituting a focused and systematic approach that positively and powerfully reaches every guest, everyday.
  29. 29. Scope of Services Merchant Hospitality Group, LLC (“Merchant Hospitality”) proposes to manage the property (the “Project”) on behalf of TBD LLC (“Owner”) with the following scope of services: 1. Pre-Opening Services Merchant Hospitality will provide Pre-Opening Services from the date of closing through the opening of the building to include: • • • • • • Process of Operations Establishing a pre-opening budget. Pre-marketing activities. Interviewing and hiring all team members with staggered start dates as appropriate based on the ramp-up of business. Construction and design consultation to ensure end product is appropriate to accomplish the operating/ financial goals of the Project. IT infrastructure consulting (cable, internet, WiFi, phone systems, etc.) to ensure the proper IT infrastructure is designed for the Project. Sales – immediately begin building awareness of the Project within established sales network as well as targeted market segments and prospective clients within Zone 1 of the Project. 2. Business Strategy Merchant Hospitality would develop the general business strategy to maximize cash flow and value for the Project. These services include the following: • • • • • Market Assessment - completing a comprehensive market assessment to define the targeted market segments and the depth and price point that can realistically be achieved within each market segment. Sales & Marketing Strategy – developing a comprehensive Sales & Marketing strategy designed to create maximum exposure and qualified sales opportunities for the Project. Operations Team – identifying the operations team that will be necessary to accomplish the financial goals of the Project (management, sales, maintenance, housekeeping, etc.). Five Year Proforma – developing a five year pro-forma to set short and long term financial goals for the Project. Exit Strategy – ensuring overall business strategy is in line with ultimate exit strategy in order to maximize value at the time of disposition. 3. Operations Management Merchant Hospitality will manage the day-to-day operations of the Project through a well-trained and highly skilled on-site team. These services include the following: • • • • Operations Team – recruit, hire and train the necessary personnel to successfully operate all aspects of the Project and achieve desired financial goals. Personnel – on an on-going basis approving all hiring decisions to continually ensure the consistency and quality of all site-level personnel. Revenue Management – overseeing pricing strategy and all pricing decisions designed to maximize revenues for the Project. Annual Budget – preparing and submitting to Owner for approval the annual operating budget.
  30. 30. • • Business Licenses – obtaining all relevant business licenses for the operations of the project. Real Estate Tax Appeals – overseeing appeal process and working with attorneys to significantly lower real estate taxes at the project (particularly important given the additional revenue generated by the furnished apartment model and the potential this has to significantly increase the assessed value of the Project). 4. Sales Strategy & Management Merchant Hospitality will be responsible for creating a sales machine what will drive qualified business to the Project to maximize sales opportunities and revenue. These services will include the following: Merchant Hospitality will be responsible for establishing all necessary accounting systems necessary to operate the project. • • • • Accounting systems to be provided by Merchant Hospitality include: G/L, Expense & Financial Reporting Module Residential Module (specialized to serviced apartments) Payroll Accounting System 7. Accounting & Payroll Services Merchant Hospitality will provide basic accounting and payroll oversight services including the following: • • • • Sales Team – recruiting, hiring and training a sales team that will successfully target and close business within the budgeted rate range while achieving targeted occupancy levels. The sales team will include experienced sales associates with direct sales experience relevant to the Project who will bring a book a business in addition to the industry knowledge necessary to quickly uncover key contacts within the Projects targeted market segments and key demographics. Outreach Sales Effort – managing an outreach sales strategy using techniques proven to be successful in establishing a large, diversified client base in new markets. Sales Partnerships – working established partner relationships (brokers, travel agencies, relocation companies, production companies, etc.) to immediately build a sales funnel for the Project. Inbound Traffic – using established and highly effect techniques to drive maximum qualified in-bound traffic to the property by casting a wide net through strategic website, PR, internet and print advertising campaigns. • • • • Preparing of all monthly financial reports. Establishing all internal control procedures and monitoring key financial functions to ensure they adhere to established protocol. If required, working with outside auditors to satisfy annual audit requirements. Engaging tax professionals to prepare annual tax return and issue K-1 to partners. 8. Insurance Merchant Hospitality will be responsible, if requested by Owner, for obtaining all necessary insurance for the Project including Property & Liability, Excess Umbrella Coverage and Workers Compensation insurance on behalf of Owner. 5. Employees & Benefits Administration 9. Marketing & Branding Merchant Hospitality will employ all site-level personnel necessary to operate the project. These employees will be treated as leased employees and Owner will reimburse Merchant Hospitality for all costs and expenses associated with leased employees. Merchant Hospitality will be responsible for administering all employee benefits necessary to attract and retain quality personnel in order to successfully operate the Project. Merchant Hospitality will be responsible for establishing and executing an annual marketing budget and marketing plan in addition to establishing and promoting a brand designed to maximize exposure of the Project within the targeted market segments and key demographic. The Marking & Branding will include the following services: 6. Financial Reporting & Accounting Systems Merchant Hospitality will be responsible for all financial reporting for the project. These responsibilities include the following: • • • • • • • • • • • • Monthly financial reporting to Owner to include the following information: Income Statement Balance Sheet and detailed Trial Balance Actual/Budget Variance Report Operations Recap Bank Reconciliations Accounts Receivable & Accounts Payable Statements General Ledgers Capital Improvement Summary Payroll Summary Rent Roll Rate & Occupancy Trend Reports • • • • • • • Budget – establish approved annual marketing budget with Owner. Website – creating and maintaining a website designed to drive relevant traffic to the project. Search Engine Optimization (SEO) Management – selecting an SEO vendor and working with the vendor to continually improve natural search rankings relevant to the business strategy of the Project. Public Relations – if approved in annual marketing budget, working with public relations firm to gain exposure for the Project within targeted market segments and key resident demographic. Marketing Collateral – working with vendor to create all necessary marketing collateral for the project (brochures, photography, etc.). Internet & Print Advertising – working with selected vendor to purchase and place all necessary advertising for the project. Brand – establishing and promoting a brand designed to maximize exposure of the Project to the targeted market segments and key resident demographic.
  31. 31. Phase 1 Inception through Construction, approx. 24 weeks out F&B Process • • • • • • • • • • Food and Beverage Concept designs New Space Analysis • Analyze front of the house space • Analyze rear of house • Analyze engineering of Kitchen Develop Pro Forma and Market Feasibility Studies Pre-Opening Budget Evaluation of operational needs through construction Develop and implement PR program Wage Scale Analysis Staffing Guide created Assessment of Computer and POS needs Manage Critical Path Phase 2 Pre-Opening and Opening (16 weeks out to opening) • • • • • • • • • • • Finalize Purchasing of kitchen/bar small wares Management Hiring A customized strategic plan will be developed to implement a system that will realize results to: a. Drive and maximize profitability b. Control operational costs c. Run an efficient operation d. Develop consistency in the product and the operation Operating Standards creation Hourly Hiring Staff Training Concept implementation Pre-Opening events Evaluation of staff Ongoing Training Evaluating standards implementation Phase 3 Post Opening (Fully Operational) • Customer Service Evaluation • Employee Evaluation / Quality of Service analysis • Front of House • Service personnel • Management • On going Training • Monthly reviews of Operation and P&L • Asset Management for owners • Observe Operation and businesses • Total Operation Analysis • Analysis of Sales processes and costs of sales • Food Cost • Labor costs • Identify any new procedures and/or equipment needed • Standards Analysis • Sales Analysis • Analyze accounting procedures and processes • Purchasing analysis
  32. 32. Our dedicated interior design team will create, manage and oversee all aspects of the project. For each facet of the project we will progress through the following phases: 1. Research – We will execute all necessary research in order to develop and create a unique and proprietary design concept for the project. MZ team will collaborate with Landmark and Expediter to get building permits in an expeditious manner. 2. Concept / Schematic Design –We will develop schematic designs for presentation to the client. Throughout the Schematic Design, style elements, program, overall design concept and layout will be addressed. 3. Design Development – We will take the approved Schematic Design concept and develop it into a fully inclusive design with all necessary detail in order to communicate the comprehensive design intent. The Design Development phase will result in a pragmatically correct design program addressing all project needs. 4. Material & Vendor Resourcing – Inherent to our design process is the resourcing of new and innovative materials. The design team collects all pertinent material samples, specifications and vendors to properly develop the specification package. We will secure vendor timelines and availability for manufacturing custom pieces, reserves stock items for eventual purchasing and document lead times on goods and services. Design Process 5. FF&E & IF Specification Development – All FF&E (Furniture, Fixtures and Equipment) and IF (Interior Finishes) specifications will be developed into a cohesive set of schedules which are incorporated into all drawings as necessary. The completion of this phase will result in two comprehensive specification books, one for interior finishes, and one for FF&E. These specifications books document every item specified in the project and correspond to schedules and drawing sets. Specifications include detailed product information, photos, drawings, sources, dimensions, and quantities where relevant. These specifications books with drawings provide a comprehensive package for the bidding process and purchasing for all specified materials in the project. 6. Budget Development – We will develop (if needed by client) a comprehensive budget outlining all designed items. This package will be developed in conjunction with vendors and contractors. MZ team will develop a balanced bid package to be presented to client so as to choose contractor and move forward. 7. OSE Specifications Development – Will be specified and chosen to fit the brand by others. 8. Model Rooms – A FF&E Program and Interior Design Construction Documents will be created for the Model Room mock-ups with the capability to be extended and deployed for Base Building. 9. VE Phase- As needed we will participate in the value engineering phase with fabricators, vendors, GC and subcontractors to maintain original design intent. 10. Production Drawings & Construction Documents – The client must retain an Architect of Record to create all construction documents that will / might be required for the Project. However, we will develop all production and construction documents necessary to communicate the design intent of all interior components for the project, including custom millwork and furniture. 11. Coordination with Consultants – As needed, we will provide all necessary design documents to all consultants. We will work with all consultants to ensure design integrity and that no design elements are lost in translation between disciplines. 12. Construction Administration (for Interior Design related issues only) – We shall provide construction administration between the client and the contractor for design related issues. Project conference calls will be held on a weekly basis. Discussions include design constructability, coordination with disciplines and consultants, and limited FF&E progress. Site visits are required during construction to resolve field conditions and general construction items, as well as FF&E purchasing and fabrication.
  33. 33. Our dedicated branding and identity team will collaborate directly with the Client to establish and develop an effective brand and identity strategy. Based on this strategy, a plan of action is established including an overall project timeline. The brand/project manager will coordinate and manage all aspects of the project from conception through delivery of materials and hand-over of brand guidelines to Client. For every brand and communication initiative, the branding team will apply the following the phases to ensure a timely and successful result: 1. IMMERSION - Research MARKZEFF will conduct all necessary research to understand current brand perception and brand audience. From this research the branding team is able to gain a better understanding of the brand in its entirety and will be better able to address necessary changes and challenges. During this phase, design inspiration and materials are collected. Mood boards and other inspirational elements are created to help better understand and define the vision of the brand. A oneor two- day brand stewardship session may be called to identify mission, vision and positioning of the brand. As a result, a unique and proprietary brand language is established. 2. SCHEMATIC DESIGN - Concept Development Throughout this phase MARKZEFF works in collaboration with the Client to define brand style and design elements. Schematic design includes the creation of three concepts and necessary variations which are presented to the Client for feedback and approval. When necessary, third party scopes are established and defined. These include but are not limited to: image licensing, original illustration, copy writing and web programming. MARKZEFF provides Art Direction and quality assurance for all third party materials and content. Branding Process 3. DESIGN DEVELOPMENT - Detail Design Following the approval and finalization of concept development, all design details are addressed and applied to a final layout. Once the layout(s) have been approved, the design is prepared for Pre-Production and a mechanical is produced. 4. MATERIAL & VENDOR RESOURCING (Part of Production Management) It is inherent to our design process to explore and resource new and innovative materials, production techniques and concepts. All materials are collected, reviewed and tested by the branding team. Vendors are researched and an active dialogue begins to ensure both quality and competitiveness within the market. 5. PRODUCTION SPECIFICATION (Part of Production Management) All materials and specifications are finalized and submitted to the Client for approval. Once approved, the details are entered into a design specification sheet and a package is created and submitted to approved Third Parties and Vendors. Included in this package is: Specification Sheet, Purchase Order and Files. Brand identity guidelines and style guides are created for hand over to client. 6. BUDGET DEVELOPMENT (Part of Production Management) A final budget is created and issued to the Client and Vendors for final review and approval. Included in this budget: fulfillment, handling and delivery and, when necessary, storage of materials. 7. PRE-PRODUCTION (Mechanical Creation) Mechanicals (files, mechanical/specification sheet and/or detailed story board) are issued. If contracted for production management, MARKZEFF delivers this package directly to the third party and will oversee production. If MARKZEFF does not manage production, package is delivered to Client. 8. PRODUCTION MANAGEMENT – Implementation/ End Product Quality Assurance MARKZEFF actively works will all vendors from the hand-over of Production Package through delivery of all materials to Client. The branding teams works with selected vendors to prepare and review color proofs, blue prints and ink drawdowns to ensure accurate and quality design results. MARKZEFF is present at press checks, on-site installations and film sets when material is being created.
  34. 34. Merchants patterns of success and leadership with world-class hotels, spas & fitness, and restaurants cover the full spectrum of design, concept development, opening, turnarounds and day to day operations. The team has developed its powerful bandwidth of skills with hotel companies such as The Hampshire Group, Rosewood Hotels, Waldorf=Astoria, Ian Schrager Hotels and Morgan’s Hotel Group, to name a few. Merchant is comprised of industry veterans and experts in all hospitality disciplines: profit engineering, culinary development, operations, business growth, strategic planning, and multi-unit international rollouts. Value The tenured team possesses outstanding operational expertise in control systems and world-class processes which encompass quality controls, human resources, leadership development, staff training and education. This group is also passionate about inventory controls, costs and expenses and facility maintenance. We bring a powerful budgeting and report of operations process into place, producing weekly P&L, cash flow and balance sheet statements. From idea development to realization, Merchant is focused on profit. We recognize that profit is the direct result of the right product at the right time. We value consistency in delivering excellence in environment, product and services. Ultimately, the guest’s experience is paramount. The team dynamic is unique, mastering all disciplines from design to finance. This creates complete integration of administration and leadership for hotels, restaurants and spa & fitness, consequently producing excellence in business performance. Merchant fully aligns with the mission, objectives and values of developers and hotel ownership, doing this enables both parties to work together and create powerful, sustainable restaurant and hospitality brands. Merchant delivers substantial and sustainable profit platforms.
  35. 35. PROFORMA
  36. 36. Projected financial statement Description Number In Season Off Season Room Nights Of Rooms ADR ADR Available Revenue: Memo information: Occupancy % Revenue growth rate Revenue growth rate rooms Revenue Growth rate F&B Rooms: Suite King rooms Room rentals Food and Beverage Roof Bar Food and Beverage 2nd Floor Lounge/ Events Food and Beverage Restaurant Food and Beverage Café & Bar Spa Airport transfers Excursion revenue Total revenue Year 1 Projected % of Sales Year 2 Projected % of Sales Year 3 Projected 86.0% 550 375 550 375 2,920 27,010 - - 25.5% 15.2% 20.2% 25.3% 7.6% 3.7% 2.3% 0.3% 100.0% 1,381,160 8,710,725 10,091,885 6,000,000 8,000,000 10,000,000 3,000,000 2,754,180 919,800 106,400 40,872,265 24.7% 14.7% 19.6% 24.5% 7.3% 6.7% 2.3% 0.3% 100.0% Year 4 Projected 86.0% 0.0% 7% 5% 8 74 % of Sales 1,381,160 8,710,725 10,091,885 6,600,000 8,800,000 11,000,000 3,300,000 3,226,644 1,011,780 154,764 44,185,073 Memo - revenue growth 22.8% 14.9% 19.9% 24.9% 7.5% 7.3% 0.4% 100.0% - Occupancy costs: Payroll and Related expenses Real Estate Taxes Property Insurance Repairs and Maintenance Water and Sewer Gas amd Electric Heat Linen and Amenities Occupancy costs Year 5 Projected 86.0% 0.0% 1,381,160 8,710,725 10,851,489 7,260,000 9,680,000 12,100,000 3,630,000 3,756,795 1,112,958 199,904 48,591,146 8.1% Departmental gross profit: Rooms Food and Beverage Roof Bar Food and Beverage 2nd Floor Lounge/ Events Food and Beverage Restaurant Food and Beverage Café & Bar Spa Airport Transfer Excursion Revenue Gross profit % of Sales 22.3% 14.9% 19.9% 24.9% 7.5% 7.7% 0.4% 100.0% % of Sales Year 6 Projected 86.0% 0.0% 1,381,160 8,710,725 11,734,750 7,623,000 10,164,000 12,705,000 3,811,500 4,153,908 1,168,606 216,025 51,576,789 10.0% 22.8% 14.8% 19.7% 24.6% 7.4% 8.1% 0.4% 100.0% % of Sales Year 7 Projected 86.0% 0.0% 1,381,160 8,710,725 12,774,538 8,004,150 10,672,200 13,340,250 4,002,075 4,642,933 1,227,036 232,146 54,895,328 6.1% 23.3% 14.6% 19.4% 24.3% 7.3% 8.5% 0.4% 100.0% % of Sales Year 8 Projected 86.0% 0.0% 1,381,160 8,710,725 14,016,507 8,404,358 11,205,810 14,007,263 4,202,179 5,141,163 1,288,388 232,146 58,497,813 6.4% 24.0% 14.4% 19.2% 23.9% 7.2% 8.8% 0.4% 100.0% % of Sales Year 9 Projected 86.0% 3.0% 1,422,595 8,972,047 15,991,756 8,824,575 11,766,101 14,707,626 4,412,288 5,616,862 1,352,807 216,025 62,888,040 6.6% 25.4% 14.0% 18.7% 23.4% 7.0% 8.9% 0.3% 100.0% % of Sales Year 10 Projected 86.0% 0.0% 1,381,160 8,710,725 17,399,802 9,265,804 12,354,406 15,443,007 4,632,902 6,151,945 1,420,448 232,146 66,900,459 7.5% 26.0% 13.9% 18.5% 23.1% 6.9% 9.2% 0.3% 100.0% % of Sales Year 11 Projected 86.0% 0.0% 1,381,160 8,710,725 19,788,010 9,729,094 12,972,126 16,215,157 4,864,547 6,845,301 1,491,470 216,025 72,121,730 6.4% 27.4% 13.5% 18.0% 22.5% 6.7% 9.5% 0.3% 100.0% % of Sales 86.0% 0.0% 1,381,160 8,710,725 22,936,102 10,215,549 13,620,732 17,025,915 5,107,775 7,539,850 1,566,044 232,146 78,244,113 7.8% 29.3% 13.1% 17.4% 21.8% 6.5% 9.6% 0.3% 100.0% 8.5% 70.0% 65.0% 65.0% 65.0% 65.0% 50.0% 45.0% 50.0% 64.5% 7,064,320 4,200,000 5,200,000 6,500,000 1,950,000 1,964,004 459,900 53,200 27,391,424 70.0% 65.0% 65.0% 65.0% 65.0% 50.0% 45.0% 50.0% 67.0% 7,064,320 4,290,000 5,720,000 7,150,000 1,320,000 2,359,950 505,890 77,382 28,487,542 70.0% 65.0% 65.0% 65.0% 40.0% 60.0% 45.0% 50.0% 64.5% 7,596,042 4,719,000 6,292,000 7,865,000 1,452,000 2,815,337 556,479 99,952 31,395,810 70.0% 65.0% 65.0% 65.0% 40.0% 66.0% 45.0% 50.0% 64.6% 8,214,325 4,954,950 6,606,600 8,258,250 1,524,600 3,150,671 584,303 108,012 33,401,711 70.0% 65.0% 65.0% 65.0% 40.0% 70.0% 45.0% 50.0% 64.8% 8,942,177 5,202,698 6,936,930 8,671,163 1,600,830 3,571,524 613,518 116,073 35,654,912 70.0% 65.0% 65.0% 65.0% 40.0% 73.0% 45.0% 50.0% 65.0% 9,811,555 5,462,832 7,283,777 9,104,721 1,680,872 3,998,402 644,194 116,073 38,102,425 70.0% 65.0% 65.0% 65.0% 40.0% 75.0% 45.0% 50.0% 65.1% 11,194,229 5,735,974 7,647,965 9,559,957 1,764,915 4,406,425 676,404 108,012 41,093,881 70.0% 65.0% 65.0% 65.0% 40.0% 70.0% 45.0% 50.0% 65.3% 12,179,861 6,022,773 8,030,364 10,037,954 1,853,161 4,870,707 710,224 116,073 43,821,117 70.0% 65.0% 65.0% 65.0% 40.0% 73.0% 45.0% 50.0% 65.5% 13,851,607 6,323,911 8,431,882 10,539,852 1,945,819 5,475,088 745,735 108,012 47,421,907 70.0% 65.0% 65.0% 65.0% 40.0% 70.0% 45.0% 50.0% 65.8% 16,055,272 6,640,107 8,853,476 11,066,845 2,043,110 6,083,107 783,022 116,073 51,641,011 70.0% 65.0% 65.0% 65.0% 40.0% 73.0% 45.0% 50.0% 66.0% 8.4% 23.0% 0.2% 0.6% 8.2% 23.0% 0.2% 0.6% 8.0% 0.6% 0.2% 0.6% 0.1% 0.1% 0.1% 9.5% 5,195,206 1,257,538 86,506 573,403 77,526 40,104 94,854 56,726 7,381,863 6.6% 1.6% 0.1% 0.7% 0.1% 0.1% 0.1% 9.6% 4,947,815 1,091,262 83,987 494,700 75,268 38,936 92,092 55,074 6,879,134 6.9% 1.5% 0.1% 0.7% 0.1% 0.1% 0.1% 9.5% 4,712,205 924,986 81,541 434,995 73,076 37,802 89,409 53,470 6,407,484 7.0% 1.4% 0.1% 0.7% 0.1% 0.1% 0.1% 9.5% 4,487,814 758,710 79,166 399,794 70,948 36,701 86,805 51,912 5,971,850 7.1% 1.2% 0.1% 0.6% 0.1% 0.1% 0.1% 9.3% 4,274,109 592,434 76,860 350,413 68,881 35,632 84,277 50,400 5,533,005 7.3% 1.0% 0.1% 0.6% 0.1% 0.2% 0.1% 9.2% 4,070,580 426,158 74,621 319,363 66,875 34,594 81,822 48,932 5,122,945 7.4% 0.8% 0.1% 0.6% 0.1% 0.2% 0.1% 9.3% 3,876,743 259,882 72,448 293,369 64,927 33,586 79,439 47,507 4,727,900 7.5% 0.5% 0.1% 0.6% 0.1% 0.2% 0.1% 9.7% 3,692,136 252,321 70,338 271,287 63,036 32,608 77,125 46,123 4,504,974 7.6% 0.5% 0.1% 0.6% 9.9% 3,516,320 244,963 68,289 252,297 61,200 31,658 74,879 44,780 4,294,386 0.1% 0.1% 0.1% 9.4% 230,902 66,300 12,000 18,000 327,202 10.1% 3,348,876 237,829 66,300 252,297 25,000 30,736 74,879 4,035,917 30,000 33,105 63,105 0.5% 0.0% 0.1% 1.8% 2.4% 201,838 33,105 706,432 941,375 0.5% 0.0% 0.1% 1.7% 2.3% 201,838 1,325,552 33,105 706,432 2,266,927 0.5% 3.0% 0.1% 1.6% 5.1% 217,030 1,457,734 33,105 759,604 2,467,473 0.4% 3.0% 0.1% 1.6% 5.1% 234,695 1,031,536 33,105 821,433 2,120,768 0.5% 2.0% 0.1% 1.6% 4.1% 255,491 1,097,907 33,105 894,218 2,280,720 0.5% 2.0% 0.1% 1.6% 4.2% 280,330 1,169,956 33,105 981,155 2,464,547 0.5% 2.0% 0.1% 1.7% 4.2% 319,835 1,257,761 34,098 1,119,423 2,731,117 0.5% 2.0% 0.1% 1.8% 4.3% 347,996 1,338,009 34,098 1,217,986 2,938,089 0.5% 2.0% 0.1% 1.8% 4.4% 395,760 1,442,435 34,098 1,385,161 3,257,454 0.5% 2.0% 0.0% 1.9% 4.5% 458,722 1,564,882 34,098 1,605,527 3,663,230 0.6% 2.0% 0.0% 2.1% 4.7% Consolidated EBITDA Replacement reserve Tax Depreciation (390,307) - 22,414,132 613,084 3,728,532 51.7% 1.5% 14.0% 10.0% 40,595,919 1,173,662 3,447,554 51.5% 1.5% 14.0% 10.0% 37,285,318 1,081,826 3,239,091 51.5% 1.5% 14.0% 10.0% 34,475,543 1,003,507 3,010,487 51.5% 1.5% 14.0% 10.0% 32,390,914 943,321 2,825,125 51.5% 1.5% 14.0% 10.0% 30,104,873 877,467 2,655,304 51.5% 1.5% 14.0% 10.0% 28,251,246 823,430 2,442,336 50.3% 1.5% 14.0% 10.0% 26,553,043 773,652 2,192,623 49.6% 1.5% 14.0% 10.0% 24,423,363 728,867 2,241,413 54.8% 1.5% 14.0% 10.0% 21,926,229 662,776 (39,031) 52.0% 1.5% 14.0% 10.0% 4,059,592 51.9% 1.5% 14.0% 10.0% Sub total (351,276) 45.3% 19,559,635 47.9% 19,070,830 43.2% 21,252,159 43.7% 23,124,087 44.8% 24,602,692 44.8% 26,216,918 44.8% 28,208,502 44.9% 30,024,482 44.9% 32,474,961 45.0% 35,362,665 45.2% Other operating expenses: Administrative & general Marketing Insurance Travel agent commissions Other operating expenses Management Fee - 0.1% 0.1% (351,276) 2,279,003 17,368,321 16,791,826 18,740,494 20,451,950 21,750,299 23,168,724 24,920,992 26,518,793 28,681,208 31,231,384 17,368,321 2,241,413 19,609,734 Net operating income 2,191,314 0 2,511,665 0 2,672,137 0 2,852,393 0 3,048,194 0 3,287,511 0 3,505,689 0 3,793,753 0 4,131,281 16,791,826 2,192,623 18,984,449 18,740,494 2,442,336 21,182,831 20,451,950 2,655,304 23,107,254 21,750,299 2,825,125 24,575,424 23,168,724 3,010,487 26,179,211 24,920,992 3,239,091 28,160,083 26,518,793 3,447,554 29,966,347 28,681,208 3,728,532 32,409,740 31,231,384 4,059,592 35,290,976 3,921,947 15,687,787 19,609,734 65,000,000 3,796,890 15,187,559 34,797,293 65,000,000 4,236,566 16,946,265 51,743,558 65,000,000 4,621,451 18,485,803 70,229,361 65,000,000 4,915,085 19,660,339 89,889,700 65,000,000 5,235,842 20,943,369 110,833,069 65,000,000 5,632,017 22,528,067 133,361,136 65,000,000 5,993,269 23,973,078 157,334,213 65,000,000 6,481,948 25,927,792 183,262,005 65,000,000 7,058,195 28,232,781 211,494,786 65,000,000 0 Net Distributable Proceeds Calculation: Net Operating Income Depreciation Total Distributable Cash Flow Company funds carried forward Captial available to return to Investors cumulative return Investment ROI % Beg Bal Return Interest Ending Bal 20% 80% 26.72% 25.83% 28.83% 31.46% 33.46% 84,387,623 (15,687,787) 5,907,134 74,606,969 74,606,969 (15,187,559) 5,222,488 64,641,897 64,641,897 (16,946,265) 4,524,933 52,220,566 52,220,566 (18,485,803) 3,655,440 37,390,202 37,390,202 (19,660,339) 2,617,314 20,347,177 Total cumulative NOI Cumulative ROI to Investor Cumulative interest to Investor Cumulative total to Investor 133,638,903 106,911,122 21,956,810 128,867,932 35.64% 421,459 7.81 (1,535,089) ####### 29,502 (1,084,128) 38.34% 40.80% 44.12% 48.05% 2,191,442 (1,011,057) 153,401 1,333,786 1,333,786 (1,005,692) 93,365 421,459 2,191,442 (1,011,057) 153,401 1,333,786 1,333,786 (1,005,692) 93,365 421,459 26,179,211
  37. 37. Hotel Project Budget Keys: 84 GSF 63000 Description Ft² Cost/ Ft² Total FF&E Ft² Price/Key $/Ft² Total Cost Floor Roof Top Roof Top Bar and Restaurant 5,000 $150 $750,000 $8,929 $150 $750,000 Floor 10 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 9 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 8 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 7 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 6 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 5 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 4 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 3 Guest rooms 5,000 $200 $1,000,000 $11,905 $200 $1,000,000 Floor 2 Lounge and event space 5,000 $230 $1,150,000 $13,690 $230 $1,150,000 Ground Floor Lobby, Restaurant, Bar/ Café 3,000 $400 $1,200,000 $14,286 $400 $1,200,000 Basement Restaurant, Kitchen 5,000 $400 $2,000,000 $23,810 $400 $2,000,000 Sub Basement Back of House 5,000 $150 $750,000 $8,929 $150 $750,000 5,000,000  63,000 $224,405 $18,850,000
  38. 38.      PAYROLL BUDGET Total Salaries Head Count: 166   Monthly       1 1 2 6 6 4 4                                                                                                                                                3,000.00 2,000.00 2,400.00 7,200.00 7,200.00 4,800.00 4,800.00 31,400.00 36,000.00 24,000.00 28,800.00 86,400.00 86,400.00 57,600.00 57,600.00 376,800.00             Food and Beverage Manager Assistant F&B Manager Outlet Host Waiter Runner Bartender Sub total 7,000.00 3,000.00 5,200.00 30,000.00 12,000.00 12,000.00 69,200.00 84,000.00 36,000.00 62,400.00 360,000.00 144,000.00 144,000.00 830,400.00 1 2 1 10 10 8 6 6 Executive Chef Sous Chef Pastry Chef Line Cook Prep Cook Kitchen others Dishwashers Kitchen Porter Sub total 7,000.00 11,000.00 1,800.00 15,000.00 13,500.00 12,000.00 6,600.00 6,600.00 73,500.00 84,000.00 132,000.00 21,600.00 180,000.00 162,000.00 144,000.00 79,200.00 79,200.00 882,000.00 1 1 3 2 14 6 Housekeeping Executive Housekeeper Assistant Housekeeper HK supervisor Laundry coordinator Chamber maid Public area cleaner Sub total 5,000.00 2,500.00 2,200.00 1,800.00 2,800.00 1,200.00 15,500.00 60,000.00 30,000.00 26,400.00 21,600.00 33,600.00 14,400.00 186,000.00 Sub total 2,500.00 1,500.00 4,000.00 30,000.00 18,000.00 48,000.00 Sub total 4,000.00 1,800.00 5,800.00 48,000.00 21,600.00 69,600.00 10,000.00 4,500.00 5,000.00 2,500.00 2,800.00 2,400.00 1,000.00 28,200.00 120,000.00 54,000.00 60,000.00 30,000.00 33,600.00 28,800.00 12,000.00 338,400.00 227,600.00 51,473.01 279,073.01 2,731,200.00 617,676.07 3,348,876.07 Spa (see Spa Proforma) 1 Spa Manager 1 Head therapist 4 Therapist  Sub total    1 1 4 25 12 10  POMEC 1 Engineer 1 Technician HR   1 HR Manager 1 HR Assistant  Annually     Front Office Manager Assistant Front Office Manager Reservations/ Operator Guest Assistant Personal Assistant Doorman Porter Sub total          A&G            1 1 1 1 1 2 1 166 Purchase of building Project total Cash reserve Sales and Marketing 33,000,000.00 47,786,500.00 1,211,797.50 2,389,325.00 General Manager Executive Assistant Manager Financial Controller Assistant Chief Accountant IT Supervisor Storekeeper Clerk Sub total Sub total Related expenses TOTAL Payroll taxes & benefits FICA/Medicare 629,609.83 7.65% of gross payroll 208,936.80 208,936.80 84,387,622.50 84,387,622.50 7.65% of 15% of sales 0.80% up to 7K per EE per year SUI 4.03% up to 8.5K per EE per year MCTMT Sub Total Grand total FICA/Medicare on tips FUTA 0.34% of gross payroll 9,286.08 Worker's comp 2.10% of gross payroll 57,355.20 Disability insurance Health Insurance 9,464.00 57,890.95 10,140.00 60 per EE 400 10 12 67,600.00 Total Union provision 629,609.83 Total with Union $136,560 $766,170 65.44%
  39. 39. Spa Pro Forma                     Year 1 Assumptions Year 2 86% 86% 24,528 24,528 36,792 36,792 20% 22% 20% 25% 20 22 10 11 $150.00 $157.50 $50.00 $52.00 $15.00 $15.50 $11.00 $11.22 Year 6 86% 24,528 36,792 26% 32% 32 16 $191.44 $60.00 $17.50 $12.14 Year 7 86% 24,528 36,792 26% 32% 35 18 $201.01 $60.00 $18.00 $12.39 Year 8 86% 24,528 36,792 27% 30% 39 19 $211.07 $58.00 $18.50 $12.64 Year 9 86% 24,528 36,792 27% 32% 43 21 $221.62 $60.00 $19.00 $12.89 Year 10 86% 24,528 36,792 27% 32% 47 24 $232.70 $60.00 $19.50 $13.15 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $1,103,760 $1,274,843 $1,521,119 $1,597,175 $1,744,115 $1,831,321 $367,920 $478,296 $536,427 $597,502 $640,181 $706,406 $1,095,000 $1,264,725 $1,460,757 $1,687,175 $1,948,687 $2,250,733 $187,500 $208,780 $238,491 $272,056 $309,950 $352,702 $2,754,180 $3,226,644 $3,756,795 $4,153,908 $4,642,933 $5,141,163 Year 7 $1,922,887 $706,406 $2,599,597 $387,972 $5,616,862 Year 5 $2,096,687 $640,181 $3,002,535 $412,543 $6,151,945 Year 6 $2,201,521 $706,406 $3,467,927 $469,446 $6,845,301 Year 7 $2,311,597 $706,406 $4,005,456 $516,391 $7,539,850 $219,876 $249,926 $288,496 $312,086 $344,315 $373,146 $121,092 $148,250 $164,231 $181,261 $195,051 $214,379 $340,968 $398,176 $452,727 $493,347 $539,367 $587,525 $2,413,212 $2,828,468 $3,304,068 $3,660,562 $4,103,566 $4,553,637 $404,970 $225,949 $630,918 $4,985,944 $446,950 $229,340 $676,291 $5,475,655 $486,059 $252,578 $738,637 $6,106,664 $529,364 $267,915 $797,279 $6,742,571 Year 4 86% 24,528 36,792 25% 29% 27 13 $173.64 $56.00 $16.50 $11.67 Year 5 86% 24,528 36,792 26% 30% 29 15 $182.33 $58.00 $17.00 $11.91     $361,418 $379,489 $398,464 $418,387 $439,306 $461,272 $484,335 $508,552 $533,980 $2,500 $2,500 $3,000 $3,200 $2,500 $2,550 $2,550 $3,060 $3,264 $2,550 $2,601 $2,601 $3,121 $3,329 $2,601 $2,653 $2,653 $3,184 $3,396 $2,653 $2,706 $2,706 $3,247 $3,464 $2,706 $2,760 $2,760 $3,312 $3,533 $2,760 $2,815 $2,815 $3,378 $3,604 $2,815 $2,872 $2,872 $3,446 $3,676 $2,872 $2,929 $2,929 $3,515 $3,749 $2,929 $2,988 $2,988 $3,585 $3,824 $2,988 $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $800 $816 $832 $849 $866 $883 $901 $919 $937 $956 $105,000        344,208.00 Year 3 86% 24,528 36,792 25% 27% 24 12 $165.38 $54.00 $16.00 $11.44 $107,100 $109,242 $111,427 $113,655 $115,928 $118,247 $120,612 $123,024 $125,485 $449,208 $468,518 $488,731 $509,891 $532,042 $555,235 $579,519 $604,947 $631,576 $659,464 $1,964,004 $2,359,950 $2,815,337 $3,150,671 $3,571,524 $3,998,402 $4,406,425 $4,870,707 $5,475,088 $6,083,107 Spa Payroll assumptions 1 1 8 1 Spa Manager Head Therapist Therapists Receptionist Hourly $ Monthly Comission Annually 5500 66000 12 1152 1536 32256 7.5 5760 11616 208512 10 960 2160 37440 13372 15312 344208
  40. 40. Conclusion · Substantial Leadership Team – dynamic proven patterns of success · Exceptional Business Model – sustainable, innovative, exceptional Great Design, game changing F&B and · Extraordinary Market Opportunity – timely and timeless concepts excellence in operations are the three main · Perfect Timing – extraordinary value unexpected at these prices point drivers which result in higher revenue. · Design – an environment that moves you
  41. 41. Merchant HOSPITALITY GROUP NEW YORK © 2012 MERCHANT HOSPITALITY GROUP This document contains confidential information and is intended only for the individual or entity to whom it is addressed. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

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