A B D E F G H 4 Hotel Marriott Tapitio Pass 5 GM Hugo Gryll 6 7 Project Name Build Market adjacent to the Front Desk 8 Project Description: Franchisor has approved a new "grab and go" market place as a replacement for both a gift shop and room service. This is based on a long term study of guest preferences, and the fact that room service looses considerable money in every one of the hotels. Our project will utilize a portion of the gift shop space adjacent to the front desk, and the space will be cashiered by the front desk associates. The remaining space form the gift shop will be repurposed to a business/shipping center that will be leased. 9 A local operator has signed a letter of intent to lease space for 10 years. LO Proforma Assumptions: Our proforma assumptions include the labor and other expense savings from the elimination of room service, the lease income from the existing gift shop and the incremental sales and profit of the market based on the data supplied from the Franchisor. This data is based on results from 750 existing units, and is sized based on our occupancy. 11 12 13 Risk Low 14 15 Cash Flow Proforma 16 Period Amount 17 Capital Investment 0 $ (65,000) 18 Incremental Cash Flow 1 $ 27,500 19 Incremental Cash Flow 2 $ 30,000 20 Incremental Cash Flow 3 $ 32,500 21 Incremental Cash Flow 4 $ 35,000 22 Incremental Cash Flow 5 $ 37,500 23 24 For Asset Manager Use: 25 Discount Rate 26 NPV 27 A B D E F G H 4 Hotel Marriott Tapitio Pass 5 GM Hugo Gryll 6 7 Project Name Build Market adjacent to the Front Desk 8 Project Description: Franchisor has approved a new "grab and go" market place as a replacement for both a gift shop and room service. This is based on a long term study of guest preferences, and the fact that room service looses considerable money in every one of the hotels. Our project will utilize a portion of the gift shop space adjacent to the front desk, and the space will be cashiered by the front desk associates. The remaining space form the gift shop will be repurposed to a business/shipping center that will be leased. 9 A local operator has signed a letter of intent to lease space for 10 years. LO Proforma Assumptions: Our proforma assumptions include the labor and other expense savings from the elimination of room service, the lease income from the existing gift shop and the incremental sales and profit of the market based on the data supplied from the Franchisor. This data is based on results from 750 existing units, and is sized based on our occupancy. 11 12 13 Risk Low 14 15 Cash Flow Proforma 16 Period Amount 17 Capital Investment 0 $ (65,000) 18 Incremental Cash Flow 1 $ 27,500 19 Incremental Cash Flow 2 $ 30,000 20 Incremental Cash Flow 3 $ 32,500 21 Incremental Cash Flow 4 $ 35,000 22 Incremental Cash Flow 5 $ 37,500 23 24 For Asset Manager Use: 25 Discount Rate 26 NPV 27
