12 A- A A a abe X2 X2 A . A E E date with security updates, fixes, and improvements, choose Check for Updates. 1- Review the RevPAR, Occupancy and ADR for years 2022- 2025. 2022 2023 2024 2025 Occupancy ADR RevPAR Going back to our conversation we spoke about a hotel has three 'levers" to increase revenue; Occupancy, ADR (Average Daily Rate) or a combination of both. In each year which is the hotel looking to grow of those levers to grow revenue: 2022- 2023- 2024- 2025- Why is it more profitable for a hotel to grow revenue through increase of ADR vs. occupancy? 2- This hotel is situation in a large urban CBD (central business district). Given what you understand from the articles and publications from STR, what is the RevPAR growth (or lack of growth) in 2022? Why do you believe the hotel is submitting that RevPAR growth (or decrease? What is the absolute RevPAR or true RevPAR number? 3- This hotel is dependent upon group business. Group business generates Food and Beverage. Why is that? Examine the "F&B Operating Revenue". What other financial information would like to see that may not be shown in this document? Why? 4- Examine Gross Operating Profit from each year. What do you notice within the actual operating profit form 2022- 2025? What about the % change numbers? 5- Compare the Gross Operating Profit % change for each year. What do you notice?FISCAL YEAR 2023 through 2025 BUDGETS Updated 01-13-22 (000'S) Actual Updated 12-2-21 Budget Fiscal 2019 Fiscal 2022 Budget Fiscal 2023 Fiscal 2024 Budget % che Leap Year Fiscal 2025 % % % chg Number of Rooms 159,170 159,170 Extra Day of Rev 159,170 % chg Number of Day 365 365 460,428 365 159.170 Occupancy (9% 53.5% 38.8% 366 -2470 bps 54.1% 1530 hips Room Rate ($) 04.24 50% $ 213.92 4.1% 365 216.45 47% Rooms Sold 291,770 178.092 248,576 216.19 60.8% 1.1% S 670 bps 39.0% Hotel Rev Par 79.21 39.6% 222 76 137.54 -42.4% $ 249.001 115 81 0.2% 279,011 3.0 462% S 11691 10% S 12.1% 135 36 Operating Revenue: 15.8% Rooms Division 63,153 69.5% 36,373 76.5% 42.4% 53,174 F&B Division 75. 7% 25 361 27.9% 46.2% 9,035 19.0% 53,831 -64.4%% 15,215 727%% 21.7% Other Operating Division 125 68.4% 1.2% 8,190 62,153 70.5% 15.5 0.1% 22 0.0% 24.6% 821% 30 0.0% 23,518 26.7% 29.3% 2.243 35.8% 19.6% Miscellaneous Income 250 34 1 2,145 4.5% -4.4% 1.802 0.0% 12.3% 2 6/ -16.0% 38 Total Revenue 0.0% 12.19 90.882 100.0% 1,952 17.575 100.0% -47.7% 70,223 100.0% 26% 8.3% 47.6% 2,434 74,007 2.8% 5.4% 24.79 100.0% 88,143 100.0% 19.19 Departmental Profits: Rooms Division 43,113 683% F&B Division 24,421 67.1% -43.4% 36,382 4,989 19.70 68.4% 49.0% 35,459 (734) -8.1% 65.9% -114.7% 168 1.1% -2.5% 41.633 67.0% Other Operating Division 122.9% 1,457 8.0% 765.8% 17.4% 125 100.0% 22 100.0% Miscellaneous Income -821% 30 2,521 100.0% 35.8% 10.7% 73.0% 2.243 100.0% 34 2,145 100.0% -4.46 100.0% 12.3% 1,802 100.0% 38 100.0% 12.10 Total Departmental Profit 50.470 55.5% 25.854 54.3% 48.8% 16.0% 1.952 100.0% 8.3% 8.383 54.7% 18.5% 2,434 100.09% $8.902 526% 1.4% 24.7% 46,626 52.9% 19.99 Undistributed Operating Expenses: Administrative & General 6.083 6.7% 8.7% Information & Telecommunication Systems -31.8% 5384 1,877 7.7% 29.8% 5,607 21% 1,244 7.6% 2.6% -33.7% 1,471 4.29% 6.165 1.09% Sales & Marketing 5,333 21% 10.09 5.9% 182% 1.500 3.566 7.5% -33.1% 20% 2.0% 1,569 Repairs & Maintenance 4,739 3.298 3.6% 6. 7% 1.89% 32.9% 1.916 2,734 S. 7% 6.6% 3.7% -17.1% 3,229 5.481 6.2% 1.905 18.1% 21% 1,747 3.7% 4.4% 0.9% 11.5% Heat, Light & Power 4.0% 258 3,602 Total Undistributed Expenses -8.3% 1,780 2 5% 4.1% 10.6% 8.497 20.4% 1.9% 1.834 2 5% 3,439 28.2% 1.999 -27.3% 16,603 23 . 6/d 3.0%% 23% 23.5% 17,115 23.1% 9.0%% 3.1% 18,815 21.3% 9.99 Gross Operating Profit 31,973 35.2% 12,415 26.1% -61.2% 21.780 31.0% 75.4% 21,787 29.4% 0.03% 27.811 31.6% 27.7% Basic Management Fees 2,651 29% 2,148 4.5% -19.0% 2.213 3.2% 3.0% 2.279 3.1% 3.0% 2.347 27% 3.0% Non-Operating Income & Expenses Rent Expense Hotel 47 0.1% 260 0.5% 459.2% 271 Insurance 0.4% 44% 278 490 0.5% 0.4% 596 1.3% 2.6% 286 216% 1,006 EBITDA 1.4% 689% 0.3% 1.097 28.786 31.7% 1.5% 2.6% 1.196 9.411 19.8% 9.0% 67.3% 18.289 94.3% 9.0%% FFE Replacement Reserve 26.06 1.496 8,132 3,655 4.0% 24.5% -0.9% 1.903 23.982 4.0% 2.809 27.296 4.06 32.3% 47.9% 47.69 2,960 EBITDA Less Replacement Reserves 4.0% 3,526 25,130 27.7% 5.4% 7,508 15.8% 70.1% 4.09% 15.481 22 0% 19.1% 1062% 15,172 20.5% -2.0% 20.457 23.296 34.8% (1) Assumes current and projected () FY20 - F ated in the 1 1 th Edition of the Uniform System of Accounts for the Lodging In (3) 4.0% union wage increase effective 9/1/20; assumes 4.0% union wage increase for each year thereafter (4) Reduction in union HAW benefits for FY19 with a 5.0% increase effective 9/1/19 and thereafter (4) Assumes 2.5% non-union wa (3) Incentive Fee not included in 3-yr budg d (6) In surmce up dated per MPEAHard Rock in $1 Billion Deal By HNN Newswire f in January 25, 2022 | 8:57 AM 6. Margaritaville Resort Floats Encouraging Signs for New York's Adrift Hospitality Market LOS ANGELES - Underpinned by continued strengthening in average daily rate (ADR), STR and Tourism Economics have slightly upgraded the U.S. hotel forecast, just released at the 7. Sands To Sell Both Las Vegas Properties for $6.25 Billion Americas Lodging Investment Summit (ALIS). S. Apartment Developers See Opportunity in Market Discount The timeline for recovery remains mostly the same from the previous version of the forecast losed Hotels released in November. On a nominal basis, ADR is expected to surpass the pre-pandemic . New York Governor Proposes Plan comparable this year, while revenue per available room (RevPAR) is anticipated to exceed To Loosen Restrictions on Converting Hotels, Offices 2019 levels in 2023. When adjusted for inflation, however, full recovery of ADR and RevPAR to Housing are not projected until after 2025. Occupancy is projected to surpass 2019 levels in 2023. 0. Latest Hotel Forecast: Leisure Surpasses 2019; Business and Group Have 'a Long Way To Go' "The industry recaptured 83% of pre-pandemic RevPAR levels in 2021, and momentum is expected to pick up after a slow start to this year," said Carter Wilson, STR's SVP of consulting. "With so much of that RevPAR recovery being led by leisure-driven ADR, however, it is important to keep an eye on the real versus the nominal. Terms of recovery are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the bottom-line hit from labor and supply shortages. We are anticipating inflation to remain higher throughout the first half of the year with a gradual leveling off during [the third quarter] and [the fourth quarter]. If that happens, and we avoid major setbacks with the pandemic, this year will certainly be one to watch with demand and occupancy also shaping up to hit significant levels during the second half." "Looking beyond the first quarter, the backdrop for sustained travel recovery is strong," said Aran Ryan, Tourism Economics director. "As the public health situation improves, sturdy labor market fundamentals, healthy consumer balance sheets, and continued business investment are anticipated to support further lodging demand growth and pricing gains." US Hotel Performance Growth Projected Through 2024 US Key Performance Indicators (Standard Methodology Metric 2021 2022 2023 2024 Forecast Forecast Forecast Occupancy 57.6% 63.8% 66.1% 66.8% ADH $125 $134 $140 $145 RevPAR $72 597 RevPAR Compared +7% to 2019 -17% -1% +12% 80 CoStar