MARKETING

The manner in which the hotel has been marketed is concerning regarding being able to emulate the profits after Marriott purchases the hotel. If Marriott cannot emulate the profits, then they cannot sell the hotel.

For example, a Chinese state$-$owned marketing pamphlet said, $$It$$s an absolutely stunning hotel...I encourage you to go there is you haven$$t been by$.$ This type of marketing, which reaches $100\%$ of all international visitors to Seattle from China, is marketing that cannot be emulated. Another example is that global leaders from certain countries only eat at one restaurant in Seattle, WA$,$ since the property opened: the Poverty Bay Steakhouse. World leaders have even Tweeted on multiple occasions that if tourists ever want to see what it is like to live like them, then they should stay at this hotel and eat at the in$-$house restaurant.

The media coverage is excellent, but this will likely stop once the hotel is sold. Also, given the volatile nature of the property$$s operations and on$-$going investigations into profits, there could bring bad publicity in the future especially if something related to the hotel is tried in court. Finally, the hotel is facing a criminal complaint from two African$-$American ex$-$employees who claim the hotel and specifically the Poverty Bay Steakhouse, engage in consistent racism both in narrative and practice. Dominique Hill and Irving Smith seem to have a fairly solid case. GNI is claiming that the claims cannot be substantiated and are not true $$ but you have also learned that GNI is trying to settle the case before it gets to court $($something GNI$$s ownership and management team has never done before at their other properties$).$

Finally, GNI Management believes they have a brand beyond that of Ritz$-$Carlton. They believe GNI is worth

$$3$ billion. This is why they call it $$Ritz$-$Carlton by GNI$$ when marketing inside the hotel and abroad. Marriott did not even realize this! GNI has $59$ global properties in their portfolio. This means GNI is valuing the name on the Seattle, WA$,$ property at a minimum $$50,850,000$ and quite possibly at closer to

$$70,000,000.$ This would place the GNI name as worth approximately $800\%$ more than the Ritz$-$Carlton name, $1000\%$ more than St$.$ Regis, or $650\%$ more than Four Seasons. Does this seem to be a likely true figure?

Complete the following chart, thinking of what the GNI brand is currently worth in a financial deal whereby one is purchasing a hotel with a nearly $60-$year lease:

$$ Amortization means that the amount you owe on something is paid off over time. For example, imagine you are purchasing a washing machine. You believe the washing machine will last ten years. Thus, a $$1,000$ washing machine will cost $$100/$year$.$ This is an amortization rate of $$100/$yr$.$ In this scenario, you are purchasing the GNI name on the building for potentially slightly less than $60$ years. First, you need to amortize it $($as in$,$ you wouldn$$t pay cash up front on your P&L$)$ and secondly$,$ what will the brand be worth as time goes on$?$ Will GNI as a brand be worth as much in $30-40$ years as Hilton? Marriott? Four Seasons?

Table $4.$ Value of GNI Brand

Year $1$ Year $10$ Year $20$ Year $30$ Year $40$

According to GNI $$65,000,000$

Worth to You $?$

Difference $?$

please complet the table a$.$ the value of GIN brand for the yeares, for year one its $$65,000,000$

then worth to you Year $1$ Year $10$ Year $20$ Year $30$ Year $40$

then diffrance. Year $1$ Year $10$ Year $20$ Year $30$ Year $40$

also answer

How much would you amortize annually for the next $58$ years?