Strategic Capital Partners Capital Project Request Hotel GM Marriott Tapitio Pass Hugo Gryll Project Name Project Description: Convert Bar to Meeting Space This project will convert our existing "high energy" bar to meeting space. The popularity of the bar has eroded in recent years following the opening of several other clubs nearby. The cost of live entertainment and the security and liability concerns have also continued to rise. This plan will transition the 3,500 square feet into a multi-use meeting room. The space is adjacent to the lobby and has a wall of windows overlooking the pool area. Proforma Assumptions: The proforma assumes a 3 month construction period, a 20% capture of the bar revenue in the lobby bar (this is based on our observation of how many in-house guests were utilizing the bar during the past year), and meeting room revenue based on our historical 3 year average per square foot for the other meeting space in the hotel. Based on planner comments, we feel this space will be in high demand. Risk Low Cash Flow Proforma Period Capital Investment Incremental Cash Flow 0 $ Amount (127,500) 1 O Incremental Cash Flow 2 Incremental Cash Flow 3 Incremental Cash Flow 4 Incremental Cash Flow 5 sssss $ 35,000 $ 37,500 $ 40,000 $ 42,500 $ 45,000 For Asset Manager Use: 5 Discount Rate NPV