Question
You want to open an 88-room 4 star hotel and have to present your idea to investors. What do you expect the annual operating costs
You want to open an 88-room 4 star hotel and have to present your idea to investors. What do you expect the annual operating costs to be and how will you present your idea to investors? (see expected revenue table below)
Occupancy | # Occupied | Revenue |
100% | 88 | $17,600.00 |
90% | 79 | $15,840.00 |
80% | 70 | $14,080.00 |
70% | 62 | $12,320.00 |
60% | 53 | $10,560.00 |
50% | 44 | $8,800.00 |
40% | 35 | $7,040.00 |
30% | 26 | $5,280.00 |
20% | 18 | $3,520.00 |
10% | 9 | $1,760.00 |
(based on min. $200/night) |
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ANSWER Assuming that the hotel is already built the annual operating costs would be approximately 15 ...Get Instant Access to Expert-Tailored Solutions
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
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