The document is a financial report for the proposed Grant Hotel project presented by APEX Hospitality Group. It provides details on the construction costs, sources of funding, projected revenues, operating expenses and returns. The key points are:
- The hotel will be a 282 room, 4-star boutique property located in downtown Chicago opening in March 2018.
- Total development costs are $106 million to be funded through $20 million in equity from APEX, $19 million from partner SapMo, and a $60 million loan.
- Revenue is projected to grow from $26 million in 2018 to $40 million in 2023 led by room sales. Food and beverage and retail will also
This document provides a marketing report for the Grant Hotel in Chicago. It includes sections on branding, business development, customer profiles, marketing mix, SWOT analysis, sales strategy, and other marketing tactics. The report profiles key customer segments for the hotel including male and female business travelers from the US and China, as well as upper middle class leisure travelers. It outlines strategies for various marketing channels including web, social media, mobile, print, and local advertising. The overall goal of the report is to provide a comprehensive marketing plan to drive business and ensure customer satisfaction for the Grant Hotel.
This document brings together a set
of latest data points and publicly
available information relevant for
Hospitality Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely..
The document provides an integrated marketing communications plan for Hotel Marisol in Coronado, California. It includes a SWOT analysis noting the hotel's strengths like its central location and renovated facility but also weaknesses such as small rooms and limited amenities. Research included interviews with visitors and competitors. The target market is couples ages 25-65 looking for a romantic getaway. Objectives are to create awareness and position the hotel accordingly. Tactics proposed include a website, PR, direct marketing, social media, and event sponsorships. Effectiveness will be measured through online metrics and promotional code tracking. The total budget is $75,000.
W Hotels aims to launch a marketing campaign on January 1, 2015 with a $30,000 budget. The campaign will focus on increasing their interactive online presence through social media platforms like Instagram, Twitter, Pinterest and Facebook to engage current and potential guests. They will also develop a smartphone app to allow guests to make hotel and dinner reservations as well as chat with concierge services. The goal is to provide a comfortable experience for business travelers, families and temporary residents while maintaining competitive prices and visibility online.
Joseph Walkosky has over 20 years of experience in the casino and travel industries marketing to and developing relationships with high-value customers. He has held director-level positions developing player databases and organizing promotional events at casinos in West Virginia, Pennsylvania, and Ohio. Walkosky also has experience in tourism marketing, working with airlines and destinations to attract American travelers. He aims to utilize his skills in relationship building, promotions, and service excellence to drive revenue through repeat business and exceptional customer experiences.
The West Michigan office market saw solid activity in 2016, with average rental rates up and vacancy rates down from the previous year. New construction projects were completed, including the 120,000 SF Arena Place in downtown Grand Rapids. Several large office buildings in downtown and the suburbs changed hands. Medical office leasing became more active after slowing in 2015. The market is expected to continue seeing demand for downtown office space and new construction in 2017, though limited parking availability may constrain leasing. Rental rates and vacancies are expected to remain favorable for landlords.
This document provides a marketing report for the Grant Hotel in Chicago. It includes sections on branding, business development, customer profiles, marketing mix, SWOT analysis, sales strategy, and other marketing tactics. The report profiles key customer segments for the hotel including male and female business travelers from the US and China, as well as upper middle class leisure travelers. It outlines strategies for various marketing channels including web, social media, mobile, print, and local advertising. The overall goal of the report is to provide a comprehensive marketing plan to drive business and ensure customer satisfaction for the Grant Hotel.
This document brings together a set
of latest data points and publicly
available information relevant for
Hospitality Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely..
The document provides an integrated marketing communications plan for Hotel Marisol in Coronado, California. It includes a SWOT analysis noting the hotel's strengths like its central location and renovated facility but also weaknesses such as small rooms and limited amenities. Research included interviews with visitors and competitors. The target market is couples ages 25-65 looking for a romantic getaway. Objectives are to create awareness and position the hotel accordingly. Tactics proposed include a website, PR, direct marketing, social media, and event sponsorships. Effectiveness will be measured through online metrics and promotional code tracking. The total budget is $75,000.
W Hotels aims to launch a marketing campaign on January 1, 2015 with a $30,000 budget. The campaign will focus on increasing their interactive online presence through social media platforms like Instagram, Twitter, Pinterest and Facebook to engage current and potential guests. They will also develop a smartphone app to allow guests to make hotel and dinner reservations as well as chat with concierge services. The goal is to provide a comfortable experience for business travelers, families and temporary residents while maintaining competitive prices and visibility online.
Joseph Walkosky has over 20 years of experience in the casino and travel industries marketing to and developing relationships with high-value customers. He has held director-level positions developing player databases and organizing promotional events at casinos in West Virginia, Pennsylvania, and Ohio. Walkosky also has experience in tourism marketing, working with airlines and destinations to attract American travelers. He aims to utilize his skills in relationship building, promotions, and service excellence to drive revenue through repeat business and exceptional customer experiences.
The West Michigan office market saw solid activity in 2016, with average rental rates up and vacancy rates down from the previous year. New construction projects were completed, including the 120,000 SF Arena Place in downtown Grand Rapids. Several large office buildings in downtown and the suburbs changed hands. Medical office leasing became more active after slowing in 2015. The market is expected to continue seeing demand for downtown office space and new construction in 2017, though limited parking availability may constrain leasing. Rental rates and vacancies are expected to remain favorable for landlords.
A description of Rotman's Ally Program WiMen - a network of men who are committed to understanding and increasing diversity and gender inclusion in the Rotman community and in the workplace.
Sarah completed an Insights Discovery personality profile on March 19, 2014. The profile provides an overview of Sarah's personality preferences, strengths, possible weaknesses, communication style, and tips for personal development. Some key points:
- Sarah is cautious, conventional, and values tradition. She is precise, disciplined, and appreciates quality.
- Sarah's strengths include her attention to detail, consistency in standards, and ability to weigh all factors before decisions. Possible weaknesses could include not acting until all facts are available and occasionally becoming too focused.
- Effective communication with Sarah involves speaking slowly, providing facts and being clear/concise. Barriers include being vague or rushing her.
- Sarah's opposite type
6/25/16- At the 7th Annual VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey and Rian Bosak, Head of Network Operations Full Screen, presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals. Check out their presentation below.
Machine learning algorithms analyze large amounts of data to identify patterns and make predictions. There are two main types: supervised learning predicts outcomes based on historical labeled data, while unsupervised learning identifies structure in unlabeled data to group it into categories. Effective machine learning requires choosing the right algorithm for the specific data and application, and allows creating intelligent processes that generate useful predictions for a data-driven world.
6/25/16- At the 7th Annual VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey and Rian Bosak, Head of Network Operations Full Screen, presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals. Check out their presentation below.
Mohammed Emad is seeking a leadership position utilizing his education and experience. He has over 10 years of experience in retail, customer service, and business operations. His experience includes roles at Nike, Westinghouse Digital, California Unified Service Providers, and Facia Facia Clothing. Emad has a Bachelor's degree in Business Management and Supply Chain Management from California State University, Long Beach. His skills include proficiency in Microsoft Office, exposure to SAP and database software, customer service, and human resources management.
VidCon's "Fair Use and Youtube- A Creator's Take"Weintraub Tobin
“On June 25th, 2016, at the 7th Annual 2016 VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey with Rian Bosak, Head of Network Operations at Fullscreen presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals.
This document is an investor presentation for Sanctuary Beach Resort. It provides an overview of Hersha Hospitality Trust's portfolio recovery through August 2022, continued property cash flow growth, accelerated corporate cash flow, investment thesis focusing on luxury and lifestyle assets in key markets, major capital projects completion, long-term margin growth opportunities, pro forma capitalization reflecting debt reduction through asset sales, and interest savings from a new credit facility.
This document brings together a set
of latest data points and publicly
available information relevant for
Hospitality Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
This document summarizes the financial analysis section of a feasibility study for a proposed 100-room motor hotel. It includes estimates for capital investment required totaling $3.37 million to be financed through 75% debt and 25% equity for land and buildings and 80% debt and 20% equity for furniture and equipment. It also provides pro forma income statements projected over 5 years for the hotel's room and food and beverage departments based on assumptions for occupancy rates, average daily room rates, and operating costs.
This month we look at budgeting in the hospitality industry with our industry guru, Monica Or FIH, explaining why budgeting is a key skill that all hospitality professionals should understand.
Read Monica’s top tips and industry advice.
The document summarizes plans for The Grand Hudson resort and casino project at Stewart Airport. It would include a 450,000 square foot hotel and casino, entertainment venues, restaurants, and retail. An analysis by independent consultants estimates it would generate over $500 million annually in revenue after 5 years. It is projected to create over 2,500 jobs and have significant economic benefits for the region through increased tax revenue, tourism, and related spending, while revitalizing Stewart Airport and surrounding communities.
Carter is a small regional food producer whose specialty is high-q.docxjasoninnes20
Carter is a small regional food producer whose specialty is high-quality nut products sold in the snack foods market. The company decided in 2018 to undertake a major expansion and “go national” in competition with some major snack foods companies. The company believes that its products were of higher quality than its competitors and that this quality difference will enable it to charge a premium price which would lead to greatly increased sales, profits and stock price. The company double its plant capacity and undertaken a major marketing campaign in an attempt to “go national.” Thus far, sales have not been up to the forecasted level, costs have been higher than were projected, and a large loss occurred in 2019, rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firm’s survival.
Joan Watson was brought in as assistant to John King, Johnson’s chairman, who had the task of getting the company back into a sound financial position. Carter’s 2018 and 2019 actual balance sheets and income statements, together with projections for 2020, are given in Tables 1 and 2. In addition, Table 3 gives the company’s 2018 and 2019 financial ratios, together with industry average data. The 2020 projected financial statement data represent the company’s best guess for 2020 results, assuming that some new financing is arranged to get the company “over the hump.”
Watson examined monthly data for 2019 (not given in the case), and she detected an improving pattern during the year. Monthly sales were rising, costs were falling, and large losses in the early months had turned to a small profit by December. Thus, the annual data look somewhat worse than final monthly data. Also, it appears to be taking longer for the advertising program to get the message out, for the new sales offices to generate sales, and for the new manufacturing facilities to operate efficiently. In other words, the lags between spending money and deriving benefits were longer than Carter’s managers had anticipated. For these reasons, the company see hope for the company—provided it can survive in the short run.
Watson must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions should be taken. Your assignment is to help her answer the following questions. Provide clear explanations, not yes or no answers.
Table 1.
Balance Sheets
2020E 2019 2018
Assets
Cash $ 85,632 $ 7,282 $ 57,600
Accounts receivable 878,000 632,160 351,200
Inventories 1,716,480 1,287,360 715,200
Total current assets $ 2,680,112 $ 1,926,802 $ 1,124,000
Gross fixed assets 1,197,160 1,202,950 491,000
Less accumulated depreciation 380,120 263,160 146,200
Net fixed assets $ 817,040$ 939,790$ 344,800
Total assets $ 3,497,152$ 2,866,592$ 1,468,800
Liab ...
A description of Rotman's Ally Program WiMen - a network of men who are committed to understanding and increasing diversity and gender inclusion in the Rotman community and in the workplace.
Sarah completed an Insights Discovery personality profile on March 19, 2014. The profile provides an overview of Sarah's personality preferences, strengths, possible weaknesses, communication style, and tips for personal development. Some key points:
- Sarah is cautious, conventional, and values tradition. She is precise, disciplined, and appreciates quality.
- Sarah's strengths include her attention to detail, consistency in standards, and ability to weigh all factors before decisions. Possible weaknesses could include not acting until all facts are available and occasionally becoming too focused.
- Effective communication with Sarah involves speaking slowly, providing facts and being clear/concise. Barriers include being vague or rushing her.
- Sarah's opposite type
6/25/16- At the 7th Annual VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey and Rian Bosak, Head of Network Operations Full Screen, presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals. Check out their presentation below.
Machine learning algorithms analyze large amounts of data to identify patterns and make predictions. There are two main types: supervised learning predicts outcomes based on historical labeled data, while unsupervised learning identifies structure in unlabeled data to group it into categories. Effective machine learning requires choosing the right algorithm for the specific data and application, and allows creating intelligent processes that generate useful predictions for a data-driven world.
6/25/16- At the 7th Annual VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey and Rian Bosak, Head of Network Operations Full Screen, presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals. Check out their presentation below.
Mohammed Emad is seeking a leadership position utilizing his education and experience. He has over 10 years of experience in retail, customer service, and business operations. His experience includes roles at Nike, Westinghouse Digital, California Unified Service Providers, and Facia Facia Clothing. Emad has a Bachelor's degree in Business Management and Supply Chain Management from California State University, Long Beach. His skills include proficiency in Microsoft Office, exposure to SAP and database software, customer service, and human resources management.
VidCon's "Fair Use and Youtube- A Creator's Take"Weintraub Tobin
“On June 25th, 2016, at the 7th Annual 2016 VidCon in Anaheim, CA , Weintraub Tobin Shareholder Scott M. Hervey with Rian Bosak, Head of Network Operations at Fullscreen presented “Fair Use and Youtube- A Creator’s Take” to a standing room only audience of digital media creators and industry professionals.
This document is an investor presentation for Sanctuary Beach Resort. It provides an overview of Hersha Hospitality Trust's portfolio recovery through August 2022, continued property cash flow growth, accelerated corporate cash flow, investment thesis focusing on luxury and lifestyle assets in key markets, major capital projects completion, long-term margin growth opportunities, pro forma capitalization reflecting debt reduction through asset sales, and interest savings from a new credit facility.
This document brings together a set
of latest data points and publicly
available information relevant for
Hospitality Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
This document summarizes the financial analysis section of a feasibility study for a proposed 100-room motor hotel. It includes estimates for capital investment required totaling $3.37 million to be financed through 75% debt and 25% equity for land and buildings and 80% debt and 20% equity for furniture and equipment. It also provides pro forma income statements projected over 5 years for the hotel's room and food and beverage departments based on assumptions for occupancy rates, average daily room rates, and operating costs.
This month we look at budgeting in the hospitality industry with our industry guru, Monica Or FIH, explaining why budgeting is a key skill that all hospitality professionals should understand.
Read Monica’s top tips and industry advice.
The document summarizes plans for The Grand Hudson resort and casino project at Stewart Airport. It would include a 450,000 square foot hotel and casino, entertainment venues, restaurants, and retail. An analysis by independent consultants estimates it would generate over $500 million annually in revenue after 5 years. It is projected to create over 2,500 jobs and have significant economic benefits for the region through increased tax revenue, tourism, and related spending, while revitalizing Stewart Airport and surrounding communities.
Carter is a small regional food producer whose specialty is high-q.docxjasoninnes20
Carter is a small regional food producer whose specialty is high-quality nut products sold in the snack foods market. The company decided in 2018 to undertake a major expansion and “go national” in competition with some major snack foods companies. The company believes that its products were of higher quality than its competitors and that this quality difference will enable it to charge a premium price which would lead to greatly increased sales, profits and stock price. The company double its plant capacity and undertaken a major marketing campaign in an attempt to “go national.” Thus far, sales have not been up to the forecasted level, costs have been higher than were projected, and a large loss occurred in 2019, rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firm’s survival.
Joan Watson was brought in as assistant to John King, Johnson’s chairman, who had the task of getting the company back into a sound financial position. Carter’s 2018 and 2019 actual balance sheets and income statements, together with projections for 2020, are given in Tables 1 and 2. In addition, Table 3 gives the company’s 2018 and 2019 financial ratios, together with industry average data. The 2020 projected financial statement data represent the company’s best guess for 2020 results, assuming that some new financing is arranged to get the company “over the hump.”
Watson examined monthly data for 2019 (not given in the case), and she detected an improving pattern during the year. Monthly sales were rising, costs were falling, and large losses in the early months had turned to a small profit by December. Thus, the annual data look somewhat worse than final monthly data. Also, it appears to be taking longer for the advertising program to get the message out, for the new sales offices to generate sales, and for the new manufacturing facilities to operate efficiently. In other words, the lags between spending money and deriving benefits were longer than Carter’s managers had anticipated. For these reasons, the company see hope for the company—provided it can survive in the short run.
Watson must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions should be taken. Your assignment is to help her answer the following questions. Provide clear explanations, not yes or no answers.
Table 1.
Balance Sheets
2020E 2019 2018
Assets
Cash $ 85,632 $ 7,282 $ 57,600
Accounts receivable 878,000 632,160 351,200
Inventories 1,716,480 1,287,360 715,200
Total current assets $ 2,680,112 $ 1,926,802 $ 1,124,000
Gross fixed assets 1,197,160 1,202,950 491,000
Less accumulated depreciation 380,120 263,160 146,200
Net fixed assets $ 817,040$ 939,790$ 344,800
Total assets $ 3,497,152$ 2,866,592$ 1,468,800
Liab ...
InstructionsInstructionsRead and follow these instructions to .docxvanesaburnand
The document provides instructions for completing various worksheets using financial data from Choice Hotels (CHH) and Marriott International's 10-K annual reports for 2017 and 2016. It instructs the user to collect revenue, expense, asset, liability and cash flow data from the 10-K reports and complete the worksheets, calculating percentage changes and answering questions. The questions ask which company would be a more attractive acquisition target based on changes in revenue, expenses and net income, and what advice would be given to Choice Hotels to reduce total liabilities.
1) XP Inc. reported financial results for 1Q20 with strong growth across all business lines and key metrics like AUC, active clients, and gross revenue up significantly YoY.
2) The CEO highlighted how XP adapted quickly to the pandemic by transitioning nearly all employees to remote work while maintaining a high level of performance. XP's digital business model proved resilient during this period.
3) Key metrics for 1Q20 included AUC of R$366B (+58% YoY), over 2 million active clients (+81% YoY), and gross revenue of R$1.856B (+84% YoY). Adjusted net income grew 147% YoY to R$415M.
1) PV & FV computations. 1. If you deposit $100,000 into a savi.docxjeremylockett77
1) PV & FV computations.
1. If you deposit $100,000 into a saving account yielding 8%, how big will it grow to in 5 years? Assume quarterly compounding.
2. What amount should be deposited in a bank account today to receive $300,000 in 6 years at 12 % interest rate? Assume quarterly compounding.
3. If $4,000 is deposited into an investment account yielding 10% every quarter starting on 1/1/2018, what amount will be available in the investment account in 4 years.
4. What is the present value of 5 $10,000 payments each of which will be received at the beginning of each period, discounted at 6% per a compounding period.
5. Hawk, Inc. issued 20,000 shares of bond on 1/1/2018. Those are $1,000/ share par value, 6 year, 6% stated interest rate bonds. The prevailing market rate on 1/1/2018 was 8%.
Calculate the price of the bond.
6. Hawk, Inc. considers the Pepsi Bottling Company and Coca Cola Bottling Company in
Salisbury for business expansion. Financial analysts specialized in valuation of soft drink companies estimated that Pepsi bottling will earn $400,000 a year over the next 25 years, while Coca-Cola Bottling will earn $600,000 over the next 30 years. Due to different credit rating of the two companies, the prevailing market interest rate of Pepsi is 10% and that of Coca-Cola is 8%. The Pepsi is asking $3,400,000, while The Coca-Cola is asking $6,000,000. Which is the better
offer to Hawk?
7. Hawk, Inc purchased a rental property for $1,000,000. This property will be leased for 10
years and the salvage value will be $400,000 after 10 years. How much annual rent should Hawk charge to earn 8% return on the investment?
2)
Company
Adjusted Trail Balance
As of 12/31/2018
AccountDebitCredit
Cash $30,000
Accounts receivable 40,000
Allowance for doubtful accounts $ 1,000
Notes receivable 18,000
Inventory,1/1/2018 51,000
Prepaid insurance 6,000
Long-term investment in MS stock 80,000
Buildings 500,000
Accumulated depreciated on buildings300,000
Furniture and equipment 110,000
Accumulated depreciation of F & E 30,000
Patent 90,000
Accounts payable 20,000
Bonds Payable100,000
Common stock 360,000
Retained earnings 257,000
Dividends 160,000
Sales 410,000
COGS 243,000
Salary expense 50,000
Rent expense 60,000
Gain on sale of discontinued operation 60,000*
Net loss from operations of
discontinued operation 100,000*
Totals 1,538,0001,538,000
*net of tax amounts, tax = 30%.
Instructions: using information on the above adjusted trial balance prepa ...
MGM Resorts International is a global entertainment company with a market capitalization of $19 billion and net revenues of $10.6 billion. It has 27 unique hotel brands across the United States and Macau, including Bellagio, MGM Grand, and Mandalay Bay. MGM Resorts is a leader in conventions and meetings with over 3.9 million square feet of space, as well as entertainment with 20+ venues in Las Vegas. It also operates over 400 food and beverage outlets, making it one of the largest non-chain restaurant operators in the world.
MGM Resorts International is a global entertainment company with a market capitalization of $19 billion and net revenues of $10.6 billion. It has 27 unique hotel brands across the United States and Macau, including Bellagio, MGM Grand, and Mandalay Bay. MGM Resorts is a leader in conventions and meetings with over 3.9 million square feet of space, as well as entertainment with 20+ venues in Las Vegas. It also operates over 400 food and beverage outlets, making it one of the largest non-chain restaurant operators in the world.
The document provides an overview of the Convention & Visitors Bureau (CVB) budget for fiscal year 2021. It summarizes key impacts of COVID-19 including significant decreases in tourist development tax revenue, hotel occupancy rates, and visitor numbers. The CVB's proposed FY2021 budget decreases revenues by $9.7 million and expenses by $42.5 million compared to FY2020 due to the pandemic's effects on tourism. Performance measures are also expected to decline substantially and some may need to be changed or replaced.
This document provides an overview and summary of the Convention & Visitors Bureau's (CVB) FY 2021 budget workshop. It summarizes the CVB's performance measures and impacts from COVID-19, including significant declines in tourist development tax revenue, hotel occupancy rates, and other key indicators. The budget proposal reflects an estimated $9.7 million (40%) reduction in total revenues and $42.5 million (49.8%) reduction in expenditures from FY 2020 levels due to the pandemic's economic effects. The forecast anticipates a gradual 3% annual increase in tourist development tax revenues from FY 2022 onward contingent on recovery.
This document provides an overview and summary of the Convention & Visitors Bureau's (CVB) FY 2021 budget workshop. It summarizes the CVB's performance measures and impacts from COVID-19, including significant declines in tourist development tax revenue, hotel occupancy rates, and other key indicators. The budget proposal reflects an estimated $9.7 million (40%) reduction in total revenues and $42.5 million (49.8%) reduction in expenditures from FY 2020 levels due to the pandemic's economic impacts. The forecast assumes a gradual 3% annual increase in tourist development tax revenues starting in FY 2022 as travel rebounds.
Strategies for Hilton Worldwide (HLT) to Expend Growth WeiyingZhang3
Hilton Worldwide is facing declining growth as its market share shrinks in the upscale and luxury hotel segments. To address this, the document recommends short term strategies such as establishing fashion partnerships to attract younger customers and long term strategies like expanding Hilton's glamping properties and deepening its digital capabilities. Implementing these recommendations could boost Hilton's revenue and increase its net present value by $9.5 million over five years.
The report provides an investment analysis and recommendation for Wynn Resorts Ltd. It finds that while Wynn has performed well historically, recent significant declines in revenues from its Macau operations due to regulatory changes create uncertainty. With a target price range of $65-$69 providing limited upside potential, the report recommends "No Action" given the risks surrounding Wynn's Macau business. Key risks include uncertainty around future Macau government actions and Wynn's existing equity deficit, while new developments in Macau and Massachusetts provide potential opportunities.
The document provides an overview and budget summary for the Pinellas County Tourist Development Council (CVB) for fiscal year 2021. Key points include:
- Revenues are projected to decrease by $9.7 million (40%) to $52.8 million due to declines in tourist tax revenue from COVID-19 impacts.
- Expenses are budgeted to decrease by $42.5 million (50%) to $44.1 million, driven by reductions in grants/aids and operating costs.
- Staffing is projected to decrease by 4 positions to 48 FTEs.
- Performance measures like hotel occupancy and revenues significantly declined in March and April 2020 and the full economic impact of the
2. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 2
Executive Summary
1100 South Michigan will soon be known as The Grant Hotel: an independent boutique hotel
located in the southwest quadrant of the Michigan Avenue and 11th street; within the south loop
area. APEX Hospitality Group is the management company presenting The Grant Hotel project.
The sixteen-story building is a simple and functional space that emphasizes the idea of art,
self-expression, and modern Chicago culture. As a four star hotel we strive to offer excellent
customer service and service level in each of their stays.
Construction and Development Period: 25 Months – Opening 1st of March of 2018
Construction and Development Costs: $ 106,040,200
Internal Rate of Return (IRR): 19.80%
Annual Return on Investment (ROI): from 15.82% (2018) to 30.28% (2023)
Fact Sheet
The Grant Hotel will be a 4-star upper upscale hotel that will be managed by APEX
Hospitality Group. The property will include the following:
Annual ADR: $260
16-Story Building
o First 3 Floors: Common Areas
o Top 13 Floors: Guest Rooms
Number of Rooms: 282
o Standard King and Double Rooms
o Family Double Rooms
o Junior Suites
o Full Suites
F&B Outlets:
o MC Prime House
o The Crossing
o Banquets/Private Events: 2nd Floor & Rooftop
Amenities
o Parking garage/valet parking
o In-house dry cleaning services
o Large fitness center, pool, hot tub and steam room
o 24-hour business lounge
o “Drew a Blank Box”
Retail Outlets
o Pop-Up Retail Store
o Parking Lot
o Outsourced Restaurants
3. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 3
Sources of Funds
The total Development and construction cost will be of $ 106,040,200. From this amount,
APEX Hospitality will be contributing $20,000,000 in equity. On the other hand, SapMo Real
Estate Development Company is being asked for a contribution of $19,000,000 (in addition to
the price of the land $6,972,000). The rest will be obtained through a commercial loan of
$60,068,200 with a 7% rate of interest.
Breakdown of Contributions
o APEX Hospitality Group: $20,000,000
o SapMo Cash Contribution: $19,000,000
o SapMo Land Contribution: $6,972 000
o Land Preparation Costs: $4,000,000
o Commercial Loan: $60,068,200
$6.972 M
$19 M
$20 M
$60.068 M
The Grant Hotel
Sources of Funds
Equity contribution of Land by SapMo
Cash Equity contribution by SapMo
Equity Contribution by Development Group
Commercial Mortgage at 65% LTV
4. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 4
Use of Funds
The Grant Hotel’s construction and development costs are broken down into building, soft
costs, FF&E and Pre Opening. Following you can find a more detailed explanation of what is
included in each of the mentioned categories.
Land contribution by SapMo
Building -
o Investment on Chicago feel architecture, will have
Chicago style windows as shown in the images.
o Flooring: Granite, Laminate, concrete and hardwood
floor
o Rooms: 8 feet tall walls, smallest rooms 350 sq. ft.,
large windows for view purposes, large
bathtubs/standup showers, granite countertops.
$74.73M
$4.79M
$8.74M
$5.16M
The Grant Hotels
Uses of Funds
Building
Soft Costs
FF & E
Pre open.
5. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 5
Soft Costs
o The 25-month construction period interest and costs
o Interior design fee – Artistic touch through the hotel
FF&E
o Guestroom/guest bathroom furniture and fixtures
o Public space and meeting room furniture and fixtures
o Technology and telecommunication equipment
o Kitchen and Laundry equipment
o Soft goods including carpeting, drapes, room accessories
Pre-Opening
o Supply inventories - linen, operating supplies, initial purchases
o Pre-opening recruiting, staffing, and training
o Operating reserves ,Technical services fees
6. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 6
2018 2019 2020 2021 2022 2023
RETAIL $229,459.2 $406,498.4 $431,005.4 $424,544.1 $450,208.1 $443,353.3
F&B $11,285,00 $14,276,00 $15,041,00 $15,417,00 $15,802,00 $16,198,00
ROOMS $15,109,00 $20,823,00 $23,082,00 $23,931,00 $24,780,00 $25,630,00
$-
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
$30,000,000.00
$35,000,000.00
$40,000,000.00
$45,000,000.00
TOTALREVENUE
The Grant Hotel
Revenue Breakdown
Revenue Breakdown
The revenue generated in the Grant Hotel will be generated mainly by the: Rooms Division
department, the Food and Beverage department, the Retail Outlets, and the Events department.
Rooms Division
o Business Man & Women, DINKs and Chinese guests will appreciate
Closeness to convention centers
Closeness to tourist attractions
o ADR $260
o OCC 73%
Food and Beverage
o The Crossing
o MC Prime House
o Banquets & Group Events
Retail Outlets
o Pop Up Store: Chicago based retailers & artists can feature their products - related
to theme; self-expression
o Restaurant rented from local chefs
o Garage
7. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 7
$15.109.000
$11,285,000
$229,459
YEAR 1
ROOMS
F&B
RETAIL
$25,630,000
$16,198,000
$443,353
YEAR 6
ROOMS
F&B
RETAIL
In the following graphs, you can see the comparison between the 1st year and the 6th
year. As the years go by the Rooms department becomes stronger in relation to the rest of the
departments and as you see, the total increases as well.
8. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 8
Food & Beverage Revenue Breakdown
The F&B Department, being the second largest revenue-generating department after
Rooms Division, has a very important role towards the profitability of our hotel.
MC Prime House: 146 seats
Classic Chicago steak house made modern with Italian influences with high emphasis on the bar
featuring wine and premium spirits.
Breakfast: 60 covers at $22.50
Lunch: 50 covers at $30
Dinner: 160 covers at $60
Bar: 50 covers at $30
The Crossing: 40 seats
The concept is derived form the impact of railroads during the first World’s Exposition hosted in
Chicago creating a social lounge ambience with coffee and breakfast by day and cocktails and
small bites by night.
Breakfast: 50 covers at $7
Dinner: 60 covers at $30
Bar: 40 covers at $30
Banquets & Group Events
We will encounter business meetings, conventions, group parties, and most importantly
weddings.
$280 per sq. ft.
$3,906,000 yearly Sales
$5.077 M
$1.638 M$263.165 M
$3.906 M
The Grant Hotel
F&B Revenue Breakdown
MC Prime House
The Crossing
Room Service
Banquets
9. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 9
Net Operating Income
As shown in the graph above, the net operating income will grow as the years go by. The
first year starts low because of the low occupancy expected and due to the fact that the hotel will
open only 9 months from the 12 months that a full operating year consists. As the years go by it
evidently increases, as the operation increases its occupation and the years of operation are
composed of 12 months. With the established marketing plan, preopening promotional
investments and uniqueness of the property it is estimated that the occupancy rate will be of 73%
within the 3 first years of operation.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Millions
The Grant Hotel
Net Operating Income
10. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 10
Return on Investment
APEX Hospitality group knows that by maintaining high quality service, investing on
highly developed marketing strategies, a strong cost control management, and the competitive
advantage of The Grant Hotel, the operation will be able to obtain a solid 30.28% return on
investment by year 6.
As the graph explains the ROI will increase as the years go on. If we compare this graph
with the Net Operating Income graph, we can understand how both of them are related. If Net
Operating income increases the ROI will also increase.
In addition to this, the IRR will be of 19.80%. This high IRR because the land acquisition
costs are a bargain for the project hence increasing our IRR by 2-3 points over the average.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Percentage
The Grant Hotel
Return on Investment
11. GRANT HOTEL FINANCIAL REPORT
APEX HOSPITALITY GROUP 11
Real Estate Tax Exemptions
APEX Hospitality group is applying tax abatement for The Grant Hotel based on the several
positive impacts that the project will have on the city of Chicago, which include:
Offer employment opportunities
Ecofriendly building and routine
Increase development in the south loop
Enhance tourism
Transmit the Chicago culture to our guests through architecture, service and design.
Allow self-expression and enhance the Local Chicago artist industry
The projected approval of tax exemption is of 1.1%. The expected annual tax payment is of
$2,250,000 encountering a 6.5% of the fixed charges or costs of the hotel. In the case of not
being approved, the taxes will be a 7.6% of the fixed charges making the IRR be a 19.38%
instead of the 19.80% estimated with the tax abatement.
Exit Strategy
At the end of the 6 years APEX Hospitality group will have a buy back agreement with
SapMo at an agreed upon appraised value of the property.