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Proforma
<br />City of Ramsey, MN siNe
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<br />Year 1
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<br />Year 2
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<br />. Year 3
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<br />Year
<br />Ye
<br />Year 5
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<br />Lodging Rooms Available
<br />21,900
<br />21,900
<br />21,900 .
<br />21,900
<br />21,900
<br />Lodging Occupancy %
<br />60.0%
<br />60.0%
<br />64.87o -
<br />64.8%
<br />68.1%
<br />68.1%
<br />71.5%
<br />71.570
<br />74.7%
<br />74.7%
<br />Total Occ. Rooms
<br />13,150
<br />14,202
<br />14,912
<br />15,658
<br />16,362
<br />Average Day Rate
<br />$112.00
<br />$117.60
<br />$121.13
<br />$124.76.
<br />$128.50
<br />Revenue Per Available Room (REVPAR)
<br />$67.25
<br />$76.26
<br />$82.48
<br />$89.20
<br />$96.01
<br />REVENUE:
<br />• Guest Rooms .
<br />1,472,800
<br />89.60 %
<br />1,670,155
<br />90.05%
<br />1,806,273
<br />90.31%
<br />1,953,484 •
<br />90.5651
<br />2,102,633
<br />90.81°%
<br />F&B Revenue .
<br />131,560
<br />8.007o
<br />142,020
<br />7.667o
<br />149,121 .
<br />7.46%
<br />156,577
<br />7.26%
<br />163,623
<br />7.077o
<br />Vending Revenue
<br />39,450
<br />2.40%
<br />42,606
<br />2.30%
<br />. 44,736
<br />2.24%
<br />46,973
<br />2.18 %
<br />49,087
<br />2.12 %
<br />TOTAL HOTEL REVENUE
<br />1,643,750
<br />100%
<br />. 1,854,781
<br />100%
<br />2,000,130
<br />100%
<br />2,157,034
<br />100%
<br />2,315,343
<br />100%
<br />HOTEL PAYROLL EXPENSE
<br />Hotel Manager
<br />65,000
<br />3.95%
<br />65,975 .
<br />3.56%
<br />• 66,965.
<br />3.35%
<br />67,969
<br />3.15%
<br />68,989
<br />2.98%
<br />Ast.Manager/SalesManager
<br />45,000
<br />2.747o
<br />46,350
<br />2.50%
<br />47,741
<br />239%
<br />49,173
<br />2.28%
<br />50,648
<br />2.19%
<br />Housekeeping
<br />65,750
<br />4.007 -
<br />67,723
<br />3.657o
<br />69,754
<br />3.49%
<br />71,847
<br />333%
<br />.74,002
<br />3.20°%
<br />Maintenance
<br />29,456
<br />1,79 %
<br />33,403
<br />1.80%
<br />45,157
<br />2.26%
<br />48,837
<br />2.26%
<br />52,566
<br />2.27%
<br />Front Desk
<br />103,096
<br />6.27%
<br />106,189
<br />5.73%
<br />109,375
<br />5.47 %
<br />112,656
<br />5.22%
<br />116,035
<br />5.01%
<br />B&B Staffing •
<br />72,325
<br />4.40%
<br />78,111
<br />4.21%
<br />82,017
<br />4.10%
<br />86,117
<br />3.99%
<br />89,993
<br />3.89%
<br />Breakfast/Social
<br />14,728
<br />0.90%
<br />15,170
<br />0.82%
<br />' 15,625
<br />0.78%
<br />16,094
<br />0.75%
<br />' 16,576
<br />0.72%
<br />Workers Comp Insurance
<br />7,708
<br />0.47%
<br />7,991
<br />0.43%
<br />8,475
<br />0.42%
<br />8,762 •
<br />0.41%
<br />9,056 .
<br />0.39 %
<br />Payrolllax-
<br />50,383
<br />3.07%
<br />52,614
<br />2.84%
<br />55,638
<br />2.78%
<br />57,682
<br />267%
<br />59,733
<br />2.58%
<br />TOTAL HOTEL PAYROLL
<br />453,445
<br />27.59%
<br />473,525
<br />25.53%
<br />500,745
<br />25.04%
<br />519,136
<br />24.07%
<br />537,598
<br />23.22%
<br />HOTEL OPERATING EXPENSE
<br />Cleaning Supplies
<br />6,575
<br />0.40%
<br />7,101
<br />0.38%
<br />7,456
<br />0.37%
<br />7,829
<br />0.36%
<br />8,181
<br />0.35%
<br />Laundry Supplies
<br />9,863
<br />0.60%
<br />10,652
<br />0.57%
<br />11,184
<br />0.56%
<br />11,743
<br />0.54%
<br />12,272
<br />0.53%
<br />Linens
<br />13,150
<br />0.80°%
<br />14,202
<br />0.77%
<br />14,912
<br />0.75%
<br />15,658
<br />0.73%
<br />16,362
<br />0.71%
<br />Guest Supplies
<br />16,438
<br />1.00%
<br />17,753
<br />0.9651
<br />18,640
<br />0.93°%
<br />19,572
<br />0.9170
<br />20,453
<br />0.88%
<br />Operating Supplies - -
<br />11,178 .
<br />0.68%
<br />• 12,072
<br />0.65%
<br />12,675
<br />0.63°/u
<br />13,309
<br />0.62%
<br />13,908
<br />0.60%
<br />Repairs & Maintenance
<br />11,046
<br />0.67 %
<br />• 16,702
<br />0.90%
<br />27,094
<br />1.35 %
<br />39,070
<br />1.81%
<br />.42,053
<br />1.82%
<br />Swimming Pool Maintenance
<br />12,500
<br />0.76%
<br />15,000
<br />: 0.81 %
<br />18,000
<br />0.90%
<br />21,600
<br />1.00%
<br />25,920
<br />1.12%
<br />Grounds/landscape
<br />7,500
<br />0.4670
<br />'7,725 -
<br />0.42%
<br />7,957
<br />0.40°%
<br />8,195
<br />0.387o
<br />8,441
<br />0.36%
<br />Franchise Fee
<br />60,225
<br />3.66%
<br />60,225
<br />3.25%
<br />60,225
<br />3.01%
<br />60,225
<br />2.79%
<br />60,225
<br />2.60°%
<br />Property MgmtSystem Expense
<br />" 5,160
<br />0.31%
<br />5,263
<br />0.28%
<br />5,368
<br />0.27%
<br />5,476
<br />0.25%
<br />- 5,585
<br />0.24%
<br />Complimentary Breakfast
<br />52,600
<br />3.2070
<br />56,808
<br />3.06%
<br />59,648
<br />2.98%
<br />62,631
<br />2.90%
<br />65,449
<br />2.83%
<br />Travel Agent Fees
<br />36,820
<br />2.24%
<br />41,754
<br />2.25%
<br />45,157
<br />2.26%
<br />48,837
<br />2.26%
<br />52,566
<br />2.27%
<br />Reservations Expense
<br />9,000
<br />0.55%
<br />9,180
<br />0.4970
<br />9,364
<br />0.47%
<br />9,551
<br />0.447o
<br />9,742
<br />0.42%
<br />F&B Expenses
<br />65,750
<br />4.00%
<br />71,010
<br />3.837o
<br />74,561
<br />3.73 %
<br />78,289
<br />3.63%
<br />. 81,812
<br />3.53%
<br />Vending Expense
<br />19,725
<br />1.20%
<br />21,303
<br />1.15%
<br />22,368
<br />1.12%
<br />23,487
<br />1.09%
<br />24,543
<br />1.06%
<br />Marketing / Advertising
<br />8,100
<br />0.49%
<br />9,186
<br />0.50%
<br />, 9,935
<br />0.50%
<br />10,744
<br />0.50%
<br />11,564
<br />050%
<br />Utilities
<br />98,625
<br />6.00%
<br />111,287
<br />6.00%
<br />12 ,008
<br />6.0051
<br />129,422
<br />6.00%
<br />138,921
<br />6.00%
<br />Cable/Internet/Phone
<br />54,750
<br />3.33%
<br />61,779
<br />333%
<br />• 66,620
<br />3337o
<br />71,846
<br />333%
<br />77,119
<br />333%
<br />Credit Card Expense
<br />36,984
<br />2.25%
<br />41,733
<br />2.25%
<br />45,003 .
<br />225%
<br />48,533
<br />225%
<br />52,095
<br />2.25%
<br />Management Fee
<br />98,625
<br />6.00%
<br />111,287
<br />6.00%
<br />120,008
<br />6.00%
<br />129,422
<br />6.00%
<br />138,921
<br />6.00%
<br />Other Expense/Frequent Stay
<br />3,288
<br />0.20%
<br />3,551
<br />0.19%
<br />3,728
<br />0.197o
<br />3,914
<br />0.18%
<br />4,091
<br />0.18%
<br />Accounting Services
<br />4,800
<br />0.29 %
<br />5,416
<br />0.29%
<br />5,841
<br />0,29%
<br />6,299
<br />0.29%
<br />6,761
<br />0.29%
<br />TOTAL OPERATING EXPENSES
<br />642,701
<br />39.10%
<br />710,986
<br />38.33%
<br />765,751
<br />3829%
<br />825,552
<br />38.2851
<br />876,984
<br />37.8851
<br />Income Before Fixed Expenses
<br />547,604
<br />0
<br />33.31%
<br />670,270
<br />36.14%
<br />733 633
<br />,
<br />36.68%
<br />812,246
<br />37.66%
<br />900,760
<br />38.90%
<br />Gross Operating Profit (GOP)
<br />RESERVES & FIXED EXPENSES
<br />Real Estate Taxes (Estimates)
<br />112,161
<br />6.82%
<br />112,161
<br />6.05%
<br />112,161
<br />5.61%
<br />112,161
<br />5.20%
<br />112,161
<br />4.84%
<br />Insurance
<br />25,200
<br />1.53%
<br />25,704
<br />1.39%
<br />26,218
<br />1317o
<br />26,742
<br />1.24%
<br />27,277
<br />1.18°%
<br />. Reserves For Replacement
<br />16,438
<br />1.00°%
<br />18,548
<br />1.00%
<br />40,003
<br />2.00 %
<br />I 64,711-
<br />• 3.007o
<br />. 92,614
<br />4.00
<br />NET OPERATING INCOME (401)
<br />393,805
<br />23.96%
<br />513,857
<br />27.70%
<br />555,252
<br />27.76°/
<br />608,631
<br />28.22%
<br />668,708
<br />28.88%
<br />Loan (Interest Payment)
<br />271,474
<br />16.52%
<br />263,506
<br />14.21 %
<br />255,089
<br />12.75%
<br />246,196
<br />11.41 %
<br />236,803
<br />10.23%
<br />LOAN (Principal Reduction)
<br />141,258
<br />8.59%
<br />149,226
<br />8.05%
<br />157,643
<br />• 7.88%
<br />166,536
<br />7.72%
<br />175,929
<br />7.60%
<br />NET CASH FLOW
<br />(S18,927)
<br />-1.15°%
<br />$101,124
<br />5.45%
<br />$142,519
<br />7,13%
<br />$195,899
<br />9.08%
<br />$255976
<br />11.06%
<br />RETURNNINVP9CE1T(ROI%
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<br />NOTE: The above information is a forwards looking projection of anticipated expenses and profits with regard to this project based on the professional experience of Core Distinction Group LLC (CDG) participation in other projects,
<br />Muller in nature Occupancy and ADRprojections derived from market dam trends reported by Smith Travel Research (ST8) in the maker's proximity along with to date rate shopping of local end surrounding hotels. This projection could
<br />change due to changes in the economy, both locally and overall, the acceptance of the project by the local com®roity and patrons and the fact that CDG has not been involved in a project in this area and in a munkgralitywith these
<br />demographics in the past Thereby, di investors understand and .knowledge that them forward looking projections are not warranted by CDG and are subject to change and fluctuation
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<br />1141r Core Distinction Group, LLC
<br />4
<br />12/28/2019
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