Question
Strategic Capital Partners Capital Project Request Hotel Marriott Tapitio Pass GM Hugo Gryll Project Name Project Description: Install automated parking gates This project will
Strategic Capital Partners Capital Project Request Hotel Marriott Tapitio Pass GM Hugo Gryll Project Name Project Description: Install automated parking gates This project will install automated parking gates at the two entrances to our parking lot. The office park that surrounmds the hotel has continued to grow, and non-guests are frequently using our parking facilities. We have analyized paid parking within our competitive set, and 3 of our 5 competitive hotels currently charge for parking. We have received Franchisor approval to begin charging for parking. Proforma Assumptions: The proforma assumes the gates will be installed in 3 days. Revenue assumptions are based on pricing competitively with our competitors who currently charge for parking, and based on our average overnight vehicle counts for past 2 years. This amount has also been discounted by 20% to account for potential disputes and potential inclusion of no cost parking for certain groups. Risk Moderate Cash Flow Proforma Capital Investment 3 Incremental Cash Flow Incremental Cash Flow Period Amount O Incremental Cash Flow 1 Incremental Cash Flow 2 Incremental Cash Flow 0123 0 4 5 SSSSSS $ (65,000) $ 15,000 $ 17,500 $ 20,000 $ 22,500 $ 25,000 B 4 For Asset Manager Use: 5 Discount Rate 6 NPV 7
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