Attached Files: File Copy of hotel_analysis.xlsx (18.823 KB) Hyatt Hotels has the opportunity to purchase a new hotel for $38 million. The hotel would generate cash flows listed in the attached file. Calculate the Payback period, Discounted Payb

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Home>Mathematics homework help>Attached Files: File Copy of hotel_analysis.xlsx (18.823 KB) Hyatt Hotels has the opportunity to purchase a new hotel for $38 million. The hotel would generate cash flows listed in the attached file. Calculate the Payback period, Discounted Payb

Ten-Year Proforma

$000's Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Number of Rooms: 114 114 114 114 114 114 114 114 114 114
Occupied Rooms: 24,966 26,630 28,295 28,295 28,295 28,295 28,295 28,295 28,295 28,295
Occupancy: 60% 64% 68% 68% 68% 68% 68% 68% 68% 68%
Average Rate: $ 589.84 $ 607.53 $ 625.76 $ 644.53 $ 663.87 $ 683.78 $ 704.30 $ 725.43 $ 747.19 $ 769.60
RevPAR: $ 353.90 $ 388.82 $ 425.52 $ 438.28 $ 451.43 $ 464.97 $ 478.92 $ 493.29 $ 508.09 $ 523.33
REVENUE
Rooms $14,726 $16,179 $17,706 $18,237 $18,784 $19,348 $19,928 $20,526 $21,142 $21,776
Food & Beverage 4,229 4,566 4,920 5,068 5,220 5,376 5,538 5,704 5,875 6,051
Telephone 138 151 164 169 174 179 185 190 196 202
Spa/Health Club 1,382 1,508 1,640 1,689 1,740 1,792 1,846 1,901 1,958 2,017
Other Income 415 452 492 507 522 538 554 570 587 605
Total 20,890 22,856 24,922 25,670 26,440 27,233 28,050 28,891 29,758 30,651
DEPARTMENTAL EXPENSES*
Rooms 2,863 3,021 3,187 3,283 3,381 3,483 3,587 3,695 3,805 3,920
Food & Beverage 3,340 3,512 3,690 3,801 3,915 4,032 4,153 4,278 4,406 4,538
Telephone 111 117 123 127 130 134 138 143 147 151
Spa/Health Club 1,159 1,194 1,230 1,267 1,305 1,344 1,384 1,426 1,469 1,513
Other Expenses 180 188 197 203 209 215 222 228 235 242
Total 7,653 8,032 8,427 8,680 8,940 9,208 9,485 9,769 10,062 10,364
DEPARTMENTAL INCOME 13,237 14,824 16,495 16,990 17,500 18,025 18,565 19,122 19,696 20,287
UNDISTRIBUTED OPERATING EXPENSES
Administrative & General 1,938 2,025 2,115 2,178 2,243 2,311 2,380 2,451 2,525 2,601
Marketing 1,453 1,518 1,586 1,633 1,682 1,733 1,785 1,838 1,894 1,950
Prop. Operations & Maint. 848 886 925 953 981 1,011 1,041 1,072 1,105 1,138
Utilities 1,938 2,025 2,115 2,178 2,243 2,311 2,380 2,451 2,525 2,601
Total 6,177 6,453 6,740 6,942 7,150 7,365 7,586 7,814 8,048 8,289
HOUSE PROFIT 7,059 8,371 9,755 10,048 10,349 10,659 10,979 11,309 11,648 11,997
Management Fee 0.03 627 686 748 770 793 817 841 867 893 920
INCOME BEFORE FIXED CHARGES 6,433 7,685 9,007 9,278 9,556 9,842 10,138 10,442 10,755 11,078
FIXED EXPENSES
Insurance 872 898 925 953 981 1,011 1,041 1,072 1,105 1,138
Reserve for Replacement 418 686 997 1,027 1,058 1,089 1,122 1,156 1,190 1,226
Total 1,290 1,584 1,922 1,980 2,039 2,100 2,163 2,228 2,295 2,364
NET INCOME $5,143 $6,101 $7,085 $7,298 $7,517 $7,742 $7,975 $8,214 $8,460 $8,714
1 1 1 1 1 1 1 1 1
*Departmental expenses are expressed as a percentage of departmental revenues.

&12Toscana - Operating Analysis

&8Prepared by HVS