For this section of the report, we will take into consideration the applicable costs in development of the proposed lodging facility in conjunction with our forecasted operating statement and the financing components involved in the project. We intend to forecast an estimate of return given the assumptions of the project.
Mortgage Component
For the Fairfield of Tallahassee, we will use the provided term sheet to assume that suggest a blended interest rate of 5.28% percent, 20-year amortization mortgage with a 0.08164 constant, and an 80 percent loan-to-value ratio is appropriate. The term sheet of the loan will be provided in the addenda of this report
Estimate of Equity Yield Component
The remaining capital required
…show more content…
Equity Yield
We have forecasted the equity yield to be earned by the equity investor to be approximately $4,099,171.51 based upon the assumption of a required 18% return. The results are summarized in the following table.
Conclusion
In determining the potential feasibility of the Fairfield of Tallahassee, we analyzed the lodging market, researched the area’s economics, reviewed the estimated development cost, and prepared a forecast of income and expense. Given the assumptions made in the content of this report the equity and debt investor should be provided a positive return which confirms the feasibility of the acquisition for the Fairfield of Tallahassee.
We hereby certify that we have no undisclosed interest in the property and our employment and compensation are not contingent upon our findings. This study is subject to the comments made throughout this report and to all assumptions and limiting conditions set forth herein. The conclusions presented in this report are based upon the information available and received at the time the report was filed. NHCG has taken every possible precaution to evaluate this information for its complete accuracy and reliability. Parts of this report were prepared or arranged by third-party contributors, as indicated throughout the document. While third-party contributions have been reviewed by NHCG for reasonableness and consistency for including in this report, third-party information has not
Assumptions need to be made for the Cost of Equity. We used the corporate rate of 11.766%
Our estimated cost of capital, 20.81%, is lower than Ricketts’ expected return, 30%-50%, thus the investment is worthy. However, it’s higher than other pessimistic members’ expected return, 10%-15%, making the decision more complex and requiring further valuation。
(3) How would you evaluate the Revere Street property? What are the risks and rewards, financials, and renovation issues;
The local community lodging industry with its two or three property types makes for an interesting discussion. (1) What types of properties are present in your community, and how have they evolved? (2) How does each meet guest needs? (3) What kind of technology do they apply to serve guest needs? Begin by answering question (1) and (2).
The public hearing that potential would involve the family unit, was the rezoning of 693 acres, so that development of a residential area. The residential area is located by Almaville Road and Independence
Capital Gains Yield: I was able to find the stock prices by multiplying the P/E ratio times EPS, both of which are found in exhibit 6. g = 1.90%
There are a magnitude of distinctive concerns that a purchaser would have regarding the property in question. First of all, since the purchaser would want to change what the property is being used for, the one would need to know that they can make the necessary changes to the operation of the land and that
It is a well-known fact that the property matters are complex enough to require detailed attention. There are several factors to be taken into consideration to make sure the deal is fundamentally and legally solid. When it comes to a property's title, factors which plays an important role are-
The investment company is confident in establishing an RV park in the preferred location of the Northwestern Florida region. The RV park industry in this area shows a considerable advantage since tourism is the number two economic strength and is the top travel destination in the world (Florida Dept. of State, Internet). Business for the area should flow easily and steadily. Taxes and cost of living are considerably lower than many other states, the weather is more conducive to a year-round operation of an RV park. Travelers are drawn to Florida for many reasons: great weather, notable attractions, and affordability. This is indicative of the Northwestern region
The analysis of the financial projection in this report is based on the assumptions and the information which you (client) provided. These assumptions and information can be change with the passage of time. The
4. Analysis: Open the Forte Hotel Data (Conjoint, 3 Analysis) data set in My Marketing Engineering, which has competed Steps 5 and 6 in the Tutorial for you. Follow Step 7 in the Tutorial, ((ME>XL==>Conjoint==>Run Analysis) and assess the viability of the four specific hotel concepts that Forte is exploring for the State College area. Base this evaluation on the preferences of a sample of 40 business travelers on that sheet (Exhibit 2) and the cost estimates summarized in Exhibit 3. The base cost to build each hotel room (without the attributes and options listed in Exhibit 3) is expected to be about $40,000 for a 150- to 200-room hotel, regardless of the mix of room
The research obtained for the financial features of this project will be shown through a spreadsheet. The financial statement will be for this current year instead of the time period when I choose to apply this project because it would be unrealistic, as well as extremely difficult to research the future expenses of such large ticket items.
Unless otherwise stated, all information for this report was obtained from the owner of the property, (Chris Logan personal communication, 7th March 2016).
The market value analysis will be either an appraisal by a member of the Appraisal Institute, opinion(s) of local real estate broker(s), analysis by the General Partner, or some combination of these. We anticipate that most Loans will be secured by improved or unimproved real property with respect to which the borrower intends to effect a change in use. The market value analysis for such properties will usually be supported by a third-party appraisal prepared on an "as completed" basis (i.e., an appraisal based on the assumption that the intended improvements will be completed). The market value analysis may also assume that all public improvements will be completed as proposed and that the property will be marketed and sold in the manner planned by the Borrower.
The land for the operation of a lodging facility has been considered with regards to access of the hotel, potential hazards, availability utilities, a potential for flooding and other concerns to those traveling to and from, as well as staying or operating the lodging facility. The consideration of the site is an important first step to undertake to determine the feasibility of this hotel. This conclusion of this stage will determine if the site will be appropriate to accommodate the construction and operations of a lodging facility. We will consider the appraisal that was supplied to us from the clients for this section as well as information provided by FEMA, Tallahassee Property Appraiser and Google maps for purposes of provide a visual