Question

Please fill in the red boxes to complete the valuation P277 Option 2 - Existing Hotel Moutain Lodge Average Daily Rate: 550 Year 2 Year 3 Years Year 4 112 112 45 60% 70% S60 565 570 om Available Rooms 2 Occupancy 3 Occupied Rom-nights 4 Average Daily Room Rate(ADR) 5 Revenues 6 Total Departmental Expenses 7 Departmental Profit Total Non-Departmental Expenses 10 Gross Operating Profit 10 Total Fixed Expenses 10 Net Operating Income Year 1 112 30% 12264 $55 5674520 5202.356 5472.164 202.156 $269,808 567,452 5202.356 $331.128 $478.296 $600,916 $69.50 $211.12 5478,296 5600916 $69,50 S110376 S159.432 $200,312 $229,950 10 Market Cap Rate 10 Estimated Resale Value 10% $2,023.560

Answer 1

Answer )

Screenshot with formula as

Mountain Lodge Average Daily rate:$50 Year 1 112 item 1 Available Rooms 2 Occupancy 3 Occupied Room-nights 4 Average Daily Rate 5 Revenue 6 Total departmental Expenses 7 Departmental Profit 8 Total non departmental Expenses 9 Gross operating profit 10 Total Fixed Expenses 11 Net Operating Income 112 30% 12264 $55 C5*C6*365 $6,74,520 C7*08 $2,02,356 $4,72,164 C9-C10 $2,02,356 $2,69,808 C11-C12 $67,452 $2,02,356 C13-C14 Year 2 Year 3 Year 4 Year 5 112 112 112 45% 60% 70% 18396 24528 28616 $60 $65 $70 $11,03,760 $15,94,320 $20,03,120 $3,31,128 $4,78,296 $6,00,936 $7,72,632 $11,16,024 $14,02,184 $3,31,128 $4,78,296 $6,00,936 $4,41,504 $6,37,728 $8,01,248 $1,10,376 $1,59,432 $2,00,312 $3,31,128 $4,78,296 $6,00,936 75% 30660 $75 $22,99,500 $6,89,850 $16,09,650 $6,89,850 $9,19,800 $2,29,950 $6,89,850 Market Cap rate Estimated Resale Value 10% $20,23,560 C15/C17 10% 8% $33,11,280 $59,78,700 5% $1,20,18,720 5% $1,37,97,000

Table form :

Mountain Lodge
Average Daily rate:$50
	item	Year 1	Year 2	Year 3	Year 4	Year 5
1	Available Rooms	112	112	112	112	112
2	Occupancy	30%	45%	60%	70%	75%
3	Occupied Room-nights	12264	18396	24528	28616	30660
4	Average Daily Rate	$55	$60	$65	$70	$75
5	Revenue	$6,74,520	$11,03,760	$15,94,320	$20,03,120	$22,99,500
6	Total departmental Expenses	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
7	Departmental Profit	$4,72,164	$7,72,632	$11,16,024	$14,02,184	$16,09,650
8	Total non departmental Expenses	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
9	Gross operating profit	$2,69,808	$4,41,504	$6,37,728	$8,01,248	$9,19,800
10	Total Fixed Expenses	$67,452	$1,10,376	$1,59,432	$2,00,312	$2,29,950
11	Net Operating Income	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
	Market Cap rate	10%	10%	8%	5%	5%
	Estimated Resale Value	$20,23,560	$33,11,280	$59,78,700	$1,20,18,720	$1,37,97,000

Answer 2

Answer )

Screenshot with formula as

Mountain Lodge Average Daily rate:$50 Year 1 112 item 1 Available Rooms 2 Occupancy 3 Occupied Room-nights 4 Average Daily Rate 5 Revenue 6 Total departmental Expenses 7 Departmental Profit 8 Total non departmental Expenses 9 Gross operating profit 10 Total Fixed Expenses 11 Net Operating Income 112 30% 12264 $55 C5*C6*365 $6,74,520 C7*08 $2,02,356 $4,72,164 C9-C10 $2,02,356 $2,69,808 C11-C12 $67,452 $2,02,356 C13-C14 Year 2 Year 3 Year 4 Year 5 112 112 112 45% 60% 70% 18396 24528 28616 $60 $65 $70 $11,03,760 $15,94,320 $20,03,120 $3,31,128 $4,78,296 $6,00,936 $7,72,632 $11,16,024 $14,02,184 $3,31,128 $4,78,296 $6,00,936 $4,41,504 $6,37,728 $8,01,248 $1,10,376 $1,59,432 $2,00,312 $3,31,128 $4,78,296 $6,00,936 75% 30660 $75 $22,99,500 $6,89,850 $16,09,650 $6,89,850 $9,19,800 $2,29,950 $6,89,850 Market Cap rate Estimated Resale Value 10% $20,23,560 C15/C17 10% 8% $33,11,280 $59,78,700 5% $1,20,18,720 5% $1,37,97,000

Table form :

Mountain Lodge
Average Daily rate:$50
	item	Year 1	Year 2	Year 3	Year 4	Year 5
1	Available Rooms	112	112	112	112	112
2	Occupancy	30%	45%	60%	70%	75%
3	Occupied Room-nights	12264	18396	24528	28616	30660
4	Average Daily Rate	$55	$60	$65	$70	$75
5	Revenue	$6,74,520	$11,03,760	$15,94,320	$20,03,120	$22,99,500
6	Total departmental Expenses	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
7	Departmental Profit	$4,72,164	$7,72,632	$11,16,024	$14,02,184	$16,09,650
8	Total non departmental Expenses	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
9	Gross operating profit	$2,69,808	$4,41,504	$6,37,728	$8,01,248	$9,19,800
10	Total Fixed Expenses	$67,452	$1,10,376	$1,59,432	$2,00,312	$2,29,950
11	Net Operating Income	$2,02,356	$3,31,128	$4,78,296	$6,00,936	$6,89,850
	Market Cap rate	10%	10%	8%	5%	5%
	Estimated Resale Value	$20,23,560	$33,11,280	$59,78,700	$1,20,18,720	$1,37,97,000