A rooms supportable estimate

Using the information given below calculate a rooms supportable estimate and a three-year financial projection to the point of income before fixed charges for the following hypothetical lodging development project. Assume the property will take two years to build, and its first full operational year is 2017 and all work must be shown on how each calculation was determined. Property​No. of Rooms ​ A.A.O.​ Market Segmentation A​320​ 71%​ ​ C/B=40%, G/C/C=30%, T/T=30%​ B​310​ 64%​ C/B=60%, G/C/C=20%, T/T=20% C​250​ 77%​ ​ C/B=50%, G/C/C=10%, T/T=40% D​180​ 78%​ ​ C/B=30%, G/C/C=50%, T/T=20% Com/Bus. Growth Categories​Percent Growth Comm. Leasing Activity​1 Population​3 Labor and Employment​2 Transportation​2 Retail sales​1 Eating & Drinking Sales​3 Group/Conf./Convention Growth Categories: Conference Growth​2 Convention Growth​2 Tourist/Transient Growth Categories: Local Attraction Attendance​2 Local highway traffic​1 Interstate traffic growth​6​ Financial Projection Data: Number of rooms in proposed property: ​500 Average rate in today’s dollars for all three years: ​ ​$95.00 First through third year projected occupancy: ​66% Revenue Percentage Assumptions: Food Revenue: One restaurant with 140 seats, open all year, one breakfast meal service with an average check for $14.00 and a turn-over rate of 1.3. There is no room service. Beverage Revenue: 30% of food revenue​ Telecommunications Revenue: $2.50 per occupied room. Other Revenue: 5% of room revenue. Expense Percentage Assumptions: Rooms: Room Pay/Rel​17 Other​5 Food & Beverage: Food Cost ​28 Bev. Cost​15 Pay/Rel​22 Other​5 Telephone Expenses: Assume telecommunications expenses are 25 percent greater than telephone revenue. Undistributed Operating Expense Percentages: A&G​5 Marketing​2 P.O.M.​4 Energy​3 Mgt. Fee​5