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BKCYNY KAY 1. antay Legi-s 18 + li. A PROJECT MENITIES: A 66 unit luxury motel trata plus large 2 bedroom Owner unit including approximately

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BKCYNY KAY 1. antay Legi-s 18 + li. "A PROJECT MENITIES: A 66 unit luxury motel trata plus large 2 bedroom Owner unit including approximately 1.500 .. of professional conference facilities and a full kitchen Luxury motel rooms. second only in quality to the Surf and Sand Hotel after their major renovation, including fireplaces. Jacuzzi, cable t... In-closet safer, complimentary full breakfast, newspaper. etc., electronic entry system, huge entrance lobby, 2 story underground parking with CCTV Security, ete..ete. 34X686 sq.ft Complete approvals, plans, working drawing. ete. Ready to pull building permit within 45 days. LAND: STATUS: ARCHITECT PROJECT COORDINATOR (MODEL AVAILABLE): MORRIS SKENDERIAN & ASSOCIATES 2094 S. Coast Highway Laguna Beach, CA 92651 (714) 497-3374 MARSHALL LICUTERMAN General Partner Laguna Gateway Inn Association 2172 Dupont Dr., Suite 12 Irvine, CA 92715 (714) 833-3220 PURCHASE PRICE : $2.900,000.00 PRO-PORMA OPERATIU EXPORT Payroll and timp loyer Beit. Utilities 3. Property Tax Insurance $ 7.000 $ 3.000 5. $ 1.000 Equipment Leases Television. Telephone, Cable. Security. Etc. Supplies Maintenance 6. $3,000 $ 4.000 7. 3. 5,500 Management Promotion and Gueat Amenities Reserves $4.000 $ 5,000 10. $6.500 estimated Monthly expenses Estimated Monthly Mortgage Payment Annually 4798800 Loan of $6,630,000 at 11% Interest Rate 25 Years Amortization = $&4,981 Incone Need For Breakevens 131 401 Per Month SL, 577, 720 Annually Including: 6 Front Desk Clerks 1 Manager 1 Director of Sales 2 Assistant Managers B to 10 Maids 2 Maintenance Persons 20 to 22 Full Time Employees (Equivalent) *Assuming 117.83 A.D.R. With 698 Occupancy INCOME: ANALYSIS CRESCENT BAY INN Laguna Beach, California Average Cccupancy: Summer (weekend) 65 rooms x 44 days x 95% - 22 rooms (weekday) 65 rooms * 100 days * 851 - 5.967 rooma Winter (weekend) 65 rooms x 61 days x 75% 2,974 rooms (weekday) 65 rooms x 152 days x 501 4.940 room (65 rooms * 365 days = total rooms available) 16,590 23,725 avail. Average Occupancy 698 Average Daily Rate: Summer (weekend) 5150 X 44 days = S 6600 (weekday) 130 x 108 days = $ 14,040 Winter (weekend) $130 X 61 days - s 7,930 (weekday) 95 x 152 days - S 14.440 2a6roto 407,556 775, 710 36,587.5 469,300 2,039, 1975 $ 43,010 365 days 117.83 Average Daily Rate = $ Debt: loan ot 56.630.000 11 125 year amort.) Debt service - 5 6.4, 77,71: Summary: Income (gross) $1,961, 411 Expenses Sub Debt $1, 163, $ 779,772 New Income $ 383.639 FINANCIAL ANALYSIS to $2.500.000 $4,100.000 $ 400,000 Land and approved package Construction Cost (approx) F.F. & E. (Est) Financing Charge (points, interest . 3 months reserve after construction) Agency Permits & Fees . Utility Fees Reserves for start Up & Contingencies $ 550,000 $ 130,000 $ 250,000 Total Estimated cost $7,570,000 How did they estimate demand? Did they over estimate NOI? If yes, where? .Do you think the financial A nalysis is sufficient? Is the return appropriate? BKCYNY KAY 1. antay Legi-s 18 + li. "A PROJECT MENITIES: A 66 unit luxury motel trata plus large 2 bedroom Owner unit including approximately 1.500 .. of professional conference facilities and a full kitchen Luxury motel rooms. second only in quality to the Surf and Sand Hotel after their major renovation, including fireplaces. Jacuzzi, cable t... In-closet safer, complimentary full breakfast, newspaper. etc., electronic entry system, huge entrance lobby, 2 story underground parking with CCTV Security, ete..ete. 34X686 sq.ft Complete approvals, plans, working drawing. ete. Ready to pull building permit within 45 days. LAND: STATUS: ARCHITECT PROJECT COORDINATOR (MODEL AVAILABLE): MORRIS SKENDERIAN & ASSOCIATES 2094 S. Coast Highway Laguna Beach, CA 92651 (714) 497-3374 MARSHALL LICUTERMAN General Partner Laguna Gateway Inn Association 2172 Dupont Dr., Suite 12 Irvine, CA 92715 (714) 833-3220 PURCHASE PRICE : $2.900,000.00 PRO-PORMA OPERATIU EXPORT Payroll and timp loyer Beit. Utilities 3. Property Tax Insurance $ 7.000 $ 3.000 5. $ 1.000 Equipment Leases Television. Telephone, Cable. Security. Etc. Supplies Maintenance 6. $3,000 $ 4.000 7. 3. 5,500 Management Promotion and Gueat Amenities Reserves $4.000 $ 5,000 10. $6.500 estimated Monthly expenses Estimated Monthly Mortgage Payment Annually 4798800 Loan of $6,630,000 at 11% Interest Rate 25 Years Amortization = $&4,981 Incone Need For Breakevens 131 401 Per Month SL, 577, 720 Annually Including: 6 Front Desk Clerks 1 Manager 1 Director of Sales 2 Assistant Managers B to 10 Maids 2 Maintenance Persons 20 to 22 Full Time Employees (Equivalent) *Assuming 117.83 A.D.R. With 698 Occupancy INCOME: ANALYSIS CRESCENT BAY INN Laguna Beach, California Average Cccupancy: Summer (weekend) 65 rooms x 44 days x 95% - 22 rooms (weekday) 65 rooms * 100 days * 851 - 5.967 rooma Winter (weekend) 65 rooms x 61 days x 75% 2,974 rooms (weekday) 65 rooms x 152 days x 501 4.940 room (65 rooms * 365 days = total rooms available) 16,590 23,725 avail. Average Occupancy 698 Average Daily Rate: Summer (weekend) 5150 X 44 days = S 6600 (weekday) 130 x 108 days = $ 14,040 Winter (weekend) $130 X 61 days - s 7,930 (weekday) 95 x 152 days - S 14.440 2a6roto 407,556 775, 710 36,587.5 469,300 2,039, 1975 $ 43,010 365 days 117.83 Average Daily Rate = $ Debt: loan ot 56.630.000 11 125 year amort.) Debt service - 5 6.4, 77,71: Summary: Income (gross) $1,961, 411 Expenses Sub Debt $1, 163, $ 779,772 New Income $ 383.639 FINANCIAL ANALYSIS to $2.500.000 $4,100.000 $ 400,000 Land and approved package Construction Cost (approx) F.F. & E. (Est) Financing Charge (points, interest . 3 months reserve after construction) Agency Permits & Fees . Utility Fees Reserves for start Up & Contingencies $ 550,000 $ 130,000 $ 250,000 Total Estimated cost $7,570,000 How did they estimate demand? Did they over estimate NOI? If yes, where? .Do you think the financial A nalysis is sufficient? Is the return appropriate

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