Do a 5 Year Valuation with 100% capacity (0% Vacancy), Case #1 Pension Funds Name Empire Hotel
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Do a 5 Year Valuation with 100% capacity (0% Vacancy),
| Case #1 Pension Funds | |
| Name | Empire Hotel |
| Location | Rochester, NY |
| Acquisition Year | 1994 |
| Year of Construction | 1969 |
| Cost | $ 9,800,000.00 |
| Occupancy | 60% |
| Capitalization Rate | 10%-12% |
| Rooms | 364 |
| Average Rate | $72 |
| Rooms * Average Rate | $26,208 |
| Performace in $1000's | |
| Revenues | |
| Rooms | $ 5,739.00 |
| Food & Beverage | $ 3,900.00 |
| Other | $ 361.00 |
| Total Revenues | $ 10,000.00 |
| + | |
| Departmental Exoenses | |
| Rooms | $ (1,386.00) |
| Food & Beverage | $ (2,925.00) |
| Other | $ (267.00) |
| Total Departmental Exoenses | $ (4,578.00) |
| Total Revenues | $ 5,422.00 |
| House Expenses | |
| Administration | $ (790.00) |
| Base Management Fee | $ (301.00) |
| Advertising/Promotion | $ (690.00) |
| Repairs/Maintenance | $ (522.00) |
| Heat/Light/Power | $ (472.00) |
| Total Other House Expenses | $ (2,775.00) |
| Gross Operating Profit | $ 2,647.00 |
| Other Cash Expenditures | |
| Real Estate Taxes | $ (569.00) |
| Insurance | $ (307.00) |
| Reserves for furniture, fixtures, and equipment | $ (659.00) |
| Total Other Cash Expenditures | $ (1,535.00) |
| Net Cash from Operations before Debt Service | $ 1,112.00 |
Expert Answer:
Related Book For 
Financial and Managerial Accounting Information for Decisions
ISBN: 978-1259347641
5th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
