What is approximately the gross income

Assignment Help Operation Management

Reference no: EM132826845

The Historic Old Post Office Building: The Ritz-Carlton Hotel in Seattle

Identify a fair price to purchase the hotel and make an offer on behalf of Marriott.

Hotel operation

Goals in this project:

1. Identify a holistic picture of the current financial profitability of the hotel and amenities
2. Realize the cap rate and the hotel's worth (i.e. a fair selling point)
3. Offer a recommendation to Marriott as to the structure of the deal
4. Offer advice on how to improve the property's financial performance when Marriott purchases it
5. Finally, you should build a seven-year proforma for the property.

To find the cap rate of the Ritz-Carlton Seattle Smith Tower hotel, you need to know the following information (show all of your math):

1. What is approximately the gross income?

2. What is approximately your net income (i.e. gross income - operating expenses)?

3. What should the purchase price be in your estimation? $131,500,000 is what GNI is seeking. Explain your proposed purchase price using the cap revenue and projected future revenue.

4. What do you believe the cap rate is for this property?

5. What do you believe the cap rate will be ten years from now?

Attachment:- The Historic Old Post Office Building.rar

Reference no: EM132826845

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