projections. Guest Rooms

Transcription

1 CJ Chetan Jala Zazen Lodging Advisors

2 FORECAST Results May Vary. Results are based on industry standards and speculation. No investment should be made solely on projections. Buyer must perform due diligencee before acting on any investment decisions. Quality Inn & Suites by Choice Hotels Former Comfort Inn & Suites 80 Guest Rooms 54 Rooms Built in Story Structure 26 Rooms Built in Story Structure

3 FORECAST-RESULTS MAY VARY Contact Chetan Jala Zazen Lodging Advisors INPUTS MORTGAGE 1 MORTGAGE 2 Property Name Quality Inn & Suites Purchase Price $2,500,000 Mortgage % 80.00% Mortgage % 0.00% Location Cleburne, Texas (Dallas-Fort Worth MSA) Other Expenses Loan Amount $2,000,000 Loan Amount Point of Contact CHETAN JALA Total $2,500,000 Annual Interest Rate 7.50% Annual Interest Rate 0.00% Contact No Equity/Capital Contribution 20.00% Term (Years) 30 Term (Years) 0 Stories: 3 Total Equity Investment $500,000 Total Payments $5,034,344 Total Payments # of Rooms: 80 Property Corridors INTERIOR $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 Revenue Costs NOI 0 11 Years ROI % 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ROI Debt Ratio Debt Service Coverage Ratio $250,000 $150,000 $100,000 $50,000 CASH FLOW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. * Buyer must account for out of pocket expenses, including but not limited to,franchise transfer costs, PIP (product improvement plan expenses), etc *Buyer to verify all assumptions and expenses Forecast Purposes only- results may vary 5/1/2017

4 FORECAST-RESULTS MAY VARY Contact Chetan Jala Zazen Lodging Advisors Pro-Forma Financial Statements Quality Inn & Suites Cleburne, Texas (Dallas-Fort Worth MSA) Year Year Year Year Year Year Year Year Year Year ROOM COUNT ROOMS AVAILABLE ROOMS OCCUPIED OCCUPANCY PERCENTAGE ROOM REVENUE ADR REVPAR ,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 13,140 14,016 15,184 16,060 16,352 16,644 16,936 17,228 17,520 17, % 48.0% 52.0% 55.0% 56.0% 57.0% 58.0% 59.0% 60.0% 61.0% $775,260 $840,960 $926,224 $995,720 $1,030,176 $1,065,216 $1,100,840 $1,119,820 $1,138,800 $1,157,780 $59.00 $60.00 $61.00 $62.00 $63.00 $64.00 $65.00 $65.00 $65.00 $65.00 $26.55 $28.80 $31.72 $34.10 $35.28 $36.48 $37.70 $38.35 $39.00 $39.65 REVENUES: Rooms 100.0% $775, % $840, % $926, % $995, % $1,030, % $1,065, % $1,100, % $1,119, % $1,138, % $1,157,780 Telephone 0.0% $ % $ % $ % $ % $ % $ % $ % $ % $ % $232 Food&Beverage 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Miscellaneous (Net) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Revenues 100.0% $775, % $841, % $926, % $995, % $1,030, % $1,065, % $1,101, % $1,120, % $1,139, % $1,158,012 DEPARTMENTAL EXPENSES: Rooms 19.0% $147, % $159, % $175, % $189, % $195, % $202, % $209, % $212, % $216, % $219,978 Food & Beverage 1.9% $15, % $16, % $18, % $19, % $20, % $22, % $24, % $26, % 0.0% TV/Internet/Phone Bundle 3.1% $24, % $24, % $25, % $25, % $25, % $25, % $27, % $27, % $29, % $30,000 Total Departmental Expenses 24.0% $186, % $200, % $218, % $233, % $241, % $249, % $260, % $266, % $245, % $249,978 DEPARTMENTAL INCOME 76.0% $589, % $640, % $707, % $762, % $789, % $815, % $840, % $853, % $893, % $908,033 UNDISTRIBUTED EXPENSES: Administration & General 9.5% $73, % $79, % $88, % $94, % $97, % $101, % $104, % $106, % $108, % $110,011 Marketing 3.5% $27, % $25, % $23, % $24, % $25, % $26, % $27, % $28, % $28, % $28,950 Energy Cost 4.5% $34, % $37, % $41, % $44, % $46, % $47, % $49, % $50, % $51, % $52,111 Maintenance & Repair 2.0% $15, % $25, % $37, % $39, % $41, % $42, % $44, % $44, % $45, % $46,320 Franchise Fees 12.0% $93, % $100, % $111, % $119, % $123, % $127, % $132, % $134, % $136, % $138,961 Total Undistributed Expenses 31.5% $244, % $269, % $301, % $323, % $334, % $346, % $357, % $364, % $370, % $376,354 INCOME BEFORE FIXED COSTS 44.5% $344, % $371, % $406, % $438, % $454, % $469, % $482, % $489, % $523, % $531,680 FIXED COSTS: Real Estate Taxes 5.2% $40, % $41, % $42, % $43, % $44, % $45, % $46, % $47, % $48, % $49,955 Other Taxes 2.9% $22, % $25, % $27, % $28, % $28, % $29, % $29, % $30, % $30, % $30,818 Insurance 1.0% $7, % $7, % $8, % $8, % $8, % $8, % $8, % $8, % $8, % $8,396 Management Fee 3.0% $23, % $25, % $27, % $29, % $30, % $31, % $33, % $33, % $34, % $34,740 Replacement Reserve 1.0% $7, % $16, % $27, % $39, % $41, % $42, % $44, % $44, % $45, % $46,320 Total Fixed Costs 13.1% $101, % $116, % $133, % $149, % $153, % $157, % $162, % $164, % $167, % $170,229 CASH FLOW BEFORE DEBT SERVICE 31.4% $243, % $254, % $273, % $288, % $300, % $311, % $320, % $324, % $355, % $361,451 ANNUAL DEBT SERVICE 1st Mortgage Loan Amount 80.00% Years: 30 Interest 19.3% $149, % $147, % $146, % $144, % $142, % $141, % $138, % $136, % $134, % $131,677 Rate: 7.50% Principal 2.4% $18, % $19, % $21, % $23, % $24, % $26, % $28, % $31, % $33, % $36,134 Annual Payments $167, % $167, % $167, % $167, % $167, % $167, % $167, % $167, % $167, % $167, % $167,811 CASH FLOW AFTER 1ST MORTGAGE 9.8% $75, % $87, % $105, % $121, % $132, % $143, % $152, % $157, % $188, % $193,640 Debt Coverage Ratio nd Mortgage Loan Amount 0.00% Years: 0 Interest 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - Rate: 0.00% Principal 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - Annual Payments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ANNUAL CASH FLOWS 9.8% $75, % $87, % $105, % $121, % $132, % $143, % $152, % $157, % $188, % $193,640 Debt Coverage Ratio Total Debt Coverage Ratio Total Equity 20.0% $15, $17,432 $21,106 $24,212 $26,536 $28,705 $30,516 $31,424 $37,628 $38,728 $500,000 RETURN ON EQUITY INVESTMENT 15% 17% 21% 24% 27% 29% 31% 31% 38% 39%

5 FORECAST-RESULTS MAY VARY Contact Chetan Jala Zazen Lodging Advisors Quality Inn & Suites Cleburne, Texas (Dallas-Fort Worth MSA) Year Year Year Year Year Year Year Year Year Year Total Revenues $775,415 $841,128 $926,409 $995,919 $1,030,382 $1,065,429 $1,101,060 $1,120,044 $1,139,028 $1,158,012 Departmental Expenses $186,299 $200,282 $218,983 $233,687 $241,233 $249,891 $260,660 $266,266 $245,372 $249,978 Undistributed Expenses $244,256 $269,161 $301,083 $323,674 $334,874 $346,264 $357,845 $364,014 $370,184 $376,354 Fixed Costs $101,433 $116,715 $133,001 $149,688 $153,781 $157,939 $162,163 $164,832 $167,520 $170,229 Total Cost $531,988 $586,159 $653,067 $707,048 $729,889 $754,095 $780,667 $795,112 $783,076 $796,561 Net Operating Income (CADS) $243,427 $254,969 $273,342 $288,871 $300,493 $311,334 $320,393 $324,932 $355,952 $361,451 Capital Reserve $7,754 $16,823 $27,792 $39,837 $41,215 $42,617 $44,042 $44,802 $45,561 $46,320 Debt Service 167, , , , , , , , , ,811 Cash Flow $75,616 $87,158 $105,531 $121,059 $132,682 $143,523 $152,582 $157,121 $188,140 $193,640 ROI 15.1% 17.4% 21.1% 24.2% 26.5% 28.7% 30.5% 31.4% 37.6% 38.7% Debt Service Coverage Ratio ROI % 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% ROI Debt Ratio Debt Service Coverage Ratio $250,000 $150,000 $100,000 $50,000 CASH FLOW Revenue Costs NOI $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400, Years

6 Contact Chetan Jala Zazen Lodging Advisors 5/1/2017 Hotel Investment Analysis # of Rooms: 80 Stories: 3 Amount Interest Rate Amortization Annual Debt Service (Years 1-5) Monthly Debt Service Per Room % of Total Purchase Price $2,500,000 $31, % Equity $500,000 $6, % Mortgage 1 $2,000, % 30 $167,811 $13,984 $25, % Mortgage % 0 0.0% Operating Cash Flow Summary Year Year Year Year Year Year Year Year Year Year Total Revenues $775,415 $841,128 $926,409 $995,919 $1,030,382 $1,065,429 $1,101,060 $1,120,044 $1,139,028 $1,158,012 Net Operating Income (CADS) $243,427 $254,969 $273,342 $288,871 $300,493 $311,334 $320,393 $324,932 $355,952 $361,451 Debt Service 167, , , , , , , , , ,811 Cash Flow $75,616 $87,158 $105,531 $121,059 $132,682 $143,523 $152,582 $157,121 $188,140 $193,640 Debt Service Coverage Ratio Annual Cash-on-Cash Return 15% 17% 21% 24% 27% 29% 31% 31% 38% 39%