ADD EXHB 14 ea029078101ex1-15c.htm DETAILED FINANCIAL PROFORMAS (UNAUDITED)

Exhibit 1A-15C

 

STATE COLLEGE PROPERTIES

CONSOLIDATED FINANCIAL PROFORMA

 

  # of Rooms: 396

 

   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7   Year 8   Year 9   Year 10 
   1/1/2027   1/1/2028   1/1/2029   1/1/2030   1/1/2031   1/1/2032   1/1/2033   1/1/2034   1/1/2035   1/1/2036 
   12/31/2027   12/31/2028   12/31/2029   12/31/2030   12/31/2031   12/31/2032   12/31/2033   12/31/2034   12/31/2035   12/31/2036 
Available Rooms   144,540    144,540    144,540    144,540    144,936    144,540    144,540    144,540    144,936    144,540 
Rooms Occupied   104,069    104,069    104,069    104,354    104,069    104,069    104,069    104,354    104,069    104,069 
Occupancy %   72.0%   72.0%   72.0%   72.2%   71.8%   72.0%   72.0%   72.2%   71.8%   72.0%
ADR   212.61    219.91    226.51    233.31    240.31    247.51    254.94    262.59    270.47    278.58 
Revpar   153.08    158.34    163.09    168.44    172.55    178.21    183.56    189.58    194.20    200.58 
Operating Revenue                                                  
Rooms Revenue  $22,126,574   $22,886,127   $23,572,711   $24,346,412   $25,008,289   $25,758,537   $26,531,294   $27,402,101   $28,147,049   $28,991,461 
F&B Revenue  $998,232   $1,048,144   $1,100,551   $1,155,579   $1,213,358   $1,274,025   $1,337,727   $1,404,613   $1,474,844   $1,548,586 
Parking Revenue  $634,189   $634,189   $634,189   $634,189   $634,189   $634,189   $634,189   $634,189   $634,189   $634,189 
Retail Rents  $1,623,838   $1,636,857   $1,650,241   $1,663,801   $1,677,731   $1,763,065   $1,777,503   $1,792,229   $1,807,250   $1,822,571 
Other Revenue  $321,753   $327,083   $332,519   $338,064   $343,720   $349,489   $355,373   $361,375   $367,497   $373,742 
Total Operating Revenue  $25,704,585   $26,532,400   $27,290,211   $28,138,044   $28,877,286   $29,779,306   $30,636,085   $31,594,508   $32,430,829   $33,370,549 
Departmental Expenses                                                  
Rooms Expenses  $4,334,408   $4,460,871   $4,576,921   $4,706,086   $4,818,229   $4,943,642   $5,072,342   $5,215,580   $5,339,958   $5,479,048 
F & B Expenses  $879,975   $919,153   $960,076   $1,002,823   $1,047,476   $1,094,119   $1,142,840   $1,193,734   $1,246,896   $1,302,428 
Parking Expenses  $259,699   $259,699   $259,699   $259,699   $259,699   $259,699   $259,699   $259,699   $259,699   $259,699 
Retail Expenses  $461,124   $469,985   $479,026   $488,246   $497,652   $509,025   $518,810   $528,791   $538,972   $549,356 
Other Departmental Expenses  $171,678   $174,800   $177,985   $181,233   $184,546   $187,926   $191,373   $194,889   $198,475   $202,133 
Total Departmental Expenses  $6,106,884   $6,284,508   $6,453,707   $6,638,087   $6,807,602   $6,994,410   $7,185,064   $7,392,693   $7,584,000   $7,792,664 
Total Departmental Income   $19,597,701   $20,247,892   $20,836,504   $21,499,957   $22,069,684   $22,784,895   $23,451,021   $24,201,815   $24,846,829   $25,577,885 
Undistributed Operating Expenses                                                  
Administrative & General  $1,836,747   $1,894,229   $1,948,120   $2,007,514   $2,060,780   $2,119,647   $2,180,274   $2,247,077   $2,307,031   $2,373,272 
Information & Telecom Systems  $272,462   $281,003   $289,221   $298,324   $306,418   $315,414   $324,684   $334,952   $344,088   $354,239 
Sales & Marketing  $1,451,895   $1,498,904   $1,542,519   $1,590,610   $1,633,800   $1,681,550   $1,730,768   $1,785,027   $1,833,791   $1,887,693 
Franchise Fee  $2,135,802   $2,209,308   $2,275,587   $2,350,276   $2,414,170   $2,486,595   $2,561,193   $2,645,256   $2,717,170   $2,798,685 
Property Operations & Maintenance  $1,028,167   $1,060,814   $1,091,435   $1,125,241   $1,155,477   $1,188,955   $1,223,444   $1,261,512   $1,295,583   $1,333,299 
Utilities  $779,443   $805,510   $829,330   $856,026   $879,232   $905,362   $932,313   $962,508   $988,782   $1,018,357 
Total Undistributed Expenses  $7,504,516   $7,749,768   $7,976,212   $8,227,993   $8,449,878   $8,697,523   $8,952,676   $9,236,332   $9,486,446   $9,765,544 
Gross Operating Profit   $12,093,185   $12,498,125   $12,860,291   $13,271,964   $13,619,806   $14,087,372   $14,498,345   $14,965,483   $15,360,384   $15,812,341 
                                                   
Management Fees  $729,940   $754,383   $776,716   $801,744   $823,504   $848,004   $873,275   $901,586   $926,225   $953,956 
Income Before Non-Operating Expenses  $11,363,245   $11,743,741   $12,083,575   $12,470,220   $12,796,302   $13,239,368   $13,625,070   $14,063,898   $14,434,159   $14,858,384 
Non-Operating Expenses                                                  
Leases  $26,328   $26,378   $26,428   $26,480   $27,103   $27,156   $27,211   $27,267   $27,324   $27,981 
Property & Other Taxes  $846,120   $868,723   $891,948   $915,814   $940,338   $965,539   $991,435   $1,018,047   $1,045,395   $1,073,499 
Insurance  $405,265   $415,502   $426,008   $436,790   $447,855   $459,212   $470,868   $482,831   $495,109   $507,712 
Total Non-Operating Expenses  $1,277,713   $1,310,603   $1,344,385   $1,379,084   $1,415,296   $1,451,907   $1,489,514   $1,528,144   $1,567,827   $1,609,191 
EBITA  $10,085,532   $10,433,138   $10,739,190   $11,091,136   $11,381,006   $11,787,461   $12,135,557   $12,535,753   $12,866,332   $13,249,193 
Replacement Reserve  $973,253   $1,005,845   $1,035,622   $1,068,993   $1,098,005   $1,130,673   $1,164,366   $1,202,114   $1,234,966   $1,271,942 
Net Income - Before Debt Service  $9,112,279   $9,427,294   $9,703,568   $10,022,143   $10,283,001   $10,656,788   $10,971,190   $11,333,639   $11,631,366   $11,977,251 
Asset Management Fee 1  $514,092   $530,648   $545,804   $562,761   $577,546   $595,586   $612,722   $631,890   $648,617   $667,411 
Debt - Interest Payment  $4,393,436   $4,393,436   $4,393,436   $4,357,980   $4,277,588   $4,192,238   $4,101,623   $4,005,420   $3,903,283   $3,794,847 
Debt - Principal Payment   -    -    -   $1,303,415   $1,383,806   $1,469,157   $1,559,771   $1,655,974   $1,758,111   $1,866,547 
Enterprise Expenses  $102,000   $104,040   $106,121   $108,243   $110,408   $112,616   $114,869   $117,166   $119,509   $121,899 
Net Cash Flow from Property  $4,102,751   $4,399,169   $4,658,207   $3,689,745   $3,933,653   $4,287,192   $4,582,206   $4,923,189   $5,201,846   $5,526,546 
LP Equity Net Cash Flow (90%)   $3,692,476   $3,959,252   $4,192,386   $3,320,770   $3,540,288   $3,858,473   $4,123,985   $4,430,870   $4,681,661   $4,973,892 

 

LP Equity Return Invested Capital  $62.8M   5.9%   6.3%   6.7%   5.3%   5.6%   6.1%   6.6%   7.1%   7.5%   7.9%
LP Equity Return Capital Raised  $75.0M   4.9%   5.3%   5.6%   4.4%   4.7%   5.1%   5.5%   5.9%   6.2%   6.6%

 

 

 

 

HYATT PLACE STATE COLLEGE

FINANCIAL PROFORMA

 

  # of Rooms: 165

 

   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7   Year 8   Year 9   Year 10 
   1/1/2027   1/1/2028   1/1/2029   1/1/2030   1/1/2031   1/1/2032   1/1/2033   1/1/2034   1/1/2035   1/1/2036 
   12/31/2027   12/31/2028   12/31/2029   12/31/2030   12/31/2031   12/31/2032   12/31/2033   12/31/2034   12/31/2035   12/31/2036 
Available Rooms   60,225    60,225    60,225    60,390    60,225    60,225    60,225    60,390    60,225    60,225 
Rooms Occupied   43,362    43,362    43,362    43,481    43,362    43,362    43,362    43,481    43,362    43,362 
Occupancy %   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%
ADR   220.83    229.66    236.55    243.65    250.96    258.49    266.24    274.23    282.46    290.93 
ADR Growth   5.0%   4.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%
Revpar   159.00    165.36    170.32    175.43    180.69    186.11    191.69    197.45    203.37    209.47 
Operating Revenue                                                  
Rooms Revenue  $9,575,609   $9,958,634   $10,257,393   $10,594,060   $10,882,068   $11,208,530   $11,544,786   $11,923,708   $12,247,863   $12,615,299 
F&B Revenue  $275,506   $289,282   $303,746   $318,933   $334,880   $351,624   $369,205   $387,665   $407,048   $427,401 
Parking Revenue  $433,620   $433,620   $433,620   $433,620   $433,620   $433,620   $433,620   $433,620   $433,620   $433,620 
Other Operated Departments  $55,271   $55,271   $55,271   $55,271   $55,271   $55,271   $55,271   $55,271   $55,271   $55,271 
Federal Taphouse Rent  $250,572   $250,572   $250,572   $250,572   $250,572   $250,572   $250,572   $250,572   $250,572   $250,572 
Miscellaneous Income  $97,920   $99,879   $101,876   $103,914   $105,992   $108,112   $110,274   $112,480   $114,729   $117,024 
Total Operating Revenue  $10,688,499   $11,087,258   $11,402,478   $11,756,370   $12,062,403   $12,407,729   $12,763,728   $13,163,316   $13,509,104   $13,899,187 
Departmental Expenses                                                  
Rooms Expenses  $1,754,690   $1,809,436   $1,851,777   $1,899,185   $1,939,457   $1,984,840   $2,031,285   $2,083,288   $2,127,464   $2,177,247 
F & B Expenses  $287,134   $299,337   $312,059   $325,321   $339,147   $353,561   $368,587   $384,252   $400,583   $417,608 
Parking Expenses  $130,086   $130,086   $130,086   $130,086   $130,086   $130,086   $130,086   $130,086   $130,086   $130,086 
Other Departmental Expenses  $15,573   $15,573   $15,573   $15,573   $15,573   $15,573   $15,573   $15,573   $15,573   $15,573 
Total Departmental Expenses  $2,187,482   $2,254,432   $2,309,494   $2,370,164   $2,424,263   $2,484,060   $2,545,531   $2,613,199   $2,673,706   $2,740,514 
Total Departmental Income  $8,501,017   $8,832,826   $9,092,984   $9,386,206   $9,638,140   $9,923,669   $10,218,197   $10,550,117   $10,835,398   $11,158,674 
Undistributed Operating Expenses                                                  
Administrative & General  $759,421   $786,532   $809,165   $834,094   $856,535   $881,314   $906,854   $934,984   $960,313   $988,280 
Information & Telecom Systems  $76,622   $79,396   $81,672   $84,194   $86,436   $88,929   $91,497   $94,344   $96,875   $99,689 
Sales & Marketing  $674,250   $698,419   $718,495   $740,646   $760,514   $782,494   $805,150   $830,146   $852,573   $877,383 
Franchise Fee2  $943,198   $980,925   $1,010,353   $1,043,515   $1,071,884   $1,104,040   $1,137,161   $1,174,485   $1,206,415   $1,242,607 
Property Operations & Maintenance  $419,952   $435,006   $447,510   $461,306   $473,681   $487,371   $501,482   $517,051   $531,019   $546,472 
Utilities  $341,416   $354,153   $364,222   $375,526   $385,301   $396,332   $407,703   $420,467   $431,512   $443,973 
Total Undistributed Expenses  $3,214,858   $3,334,431   $3,431,417   $3,539,281   $3,634,350   $3,740,481   $3,849,849   $3,971,478   $4,078,707   $4,198,404 
Gross Operating Profit  $5,286,159   $5,498,394   $5,661,566   $5,846,925   $6,003,790   $6,183,189   $6,368,348   $6,578,639   $6,756,691   $6,960,270 
    49.5%   49.6%   49.7%   49.7%   49.8%   49.8%   49.9%   50.0%   50.0%   50.1%
Management Fees1  $320,655   $332,618   $342,074   $352,691   $361,872   $372,232   $382,912   $394,899   $405,273   $416,976 
Income Before Non-Operating Expenses  $4,965,504   $5,165,777   $5,319,492   $5,494,233   $5,641,918   $5,810,957   $5,985,436   $6,183,739   $6,351,418   $6,543,294 
Non-Operating Expenses                                                  
Leases  $12,444   $12,444   $12,444   $12,444   $12,444   $12,444   $12,444   $12,444   $12,444   $12,444 
Property & Other Taxes  $419,629   $432,218   $445,184   $458,540   $472,296   $486,465   $501,059   $516,091   $531,573   $547,521 
Insurance  $126,297   $130,086   $133,989   $138,008   $142,148   $146,413   $150,805   $155,329   $159,989   $164,789 
Total Non-Operating Expenses  $558,370   $574,748   $591,617   $608,992   $626,889   $645,322   $664,308   $683,864   $704,007   $724,754 
EBITA  $4,407,134   $4,591,029   $4,727,875   $4,885,241   $5,015,029   $5,165,635   $5,321,128   $5,499,875   $5,647,411   $5,818,541 
Replacement Reserve1  $427,540   $443,490   $456,099   $470,255   $482,496   $496,309   $510,549   $526,533   $540,364   $555,967 
Net Income - Before Debt Service  $3,979,594   $4,147,539   $4,271,776   $4,414,987   $4,532,533   $4,669,326   $4,810,578   $4,973,342   $5,107,047   $5,262,573 

 

Footnotes

 

1Calculated as a % of Total Revenue
2Calculated as a % of Rooms Revenue

 

2

 

 

FRASER CENTRE RETAIL

FINANCIAL PROFORMA

 

  Target SF: 27,000 58.4%
  Planet Fitness SF: 19,237 41.6%

 

   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7   Year 8   Year 9   Year 10 
   1/1/2027   1/1/2028   1/1/2029   1/1/2030   1/1/2031   1/1/2032   1/1/2033   1/1/2034   1/1/2035   1/1/2036 
   12/31/2027   12/31/2028   12/31/2029   12/31/2030   12/31/2031   12/31/2032   12/31/2033   12/31/2034   12/31/2035   12/31/2036 
Operating Revenue                                        
Target Rent1  $719,393   $719,393   $719,393   $719,393   $719,393   $790,614   $790,614   $790,614   $790,614   $790,614 
Target Reimbursable Expenses  $256,815   $261,951   $267,190   $272,534   $277,985   $283,545   $289,215   $295,000   $300,900   $306,918 
Planet Fitness Rent2  $224,111   $228,536   $233,152   $237,769   $242,579   $247,388   $252,336   $257,382   $262,530   $267,781 
Planet Fitness Reimbursable Expenses  $172,946   $176,405   $179,934   $183,532   $187,203   $190,947   $194,766   $198,661   $202,634   $206,687 
Total Retail Revenue  $1,373,266   $1,386,285   $1,399,669   $1,413,229   $1,427,159   $1,512,493   $1,526,931   $1,541,657   $1,556,678   $1,571,999 
Operating Expenses                                                  
Property Operations & Maintenance  $76,999   $78,539   $80,110   $81,712   $83,347   $85,014   $86,714   $88,448   $90,217   $92,022 
Utilities  $159,732   $162,927   $166,185   $169,509   $172,899   $176,357   $179,884   $183,482   $187,151   $190,895 
Taxes  $177,167   $180,710   $184,325   $188,011   $191,771   $195,607   $199,519   $203,509   $207,579   $211,731 
Insurance  $23,637   $24,110   $24,592   $25,084   $25,586   $26,098   $26,620   $27,152   $27,695   $28,249 
Management Fees3  $23,588   $23,698   $23,814   $23,929   $24,049   $25,950   $26,074   $26,200   $26,329   $26,460 
Total Operating Expenses  $461,124   $469,985   $479,026   $488,246   $497,652   $509,025   $518,810   $528,791   $538,972   $549,356 
Net Operating Income  $912,142   $916,300   $920,643   $924,983   $929,507   $1,003,468   $1,008,121   $1,012,866   $1,017,706   $1,022,644 

 

Footnotes

 

1Target’s current term expires 1/15/26. Forecasts assume Target renews at the terms and conditions of their lease renewal option in 2027 and again in 2032.
2Planet Fitness’ current term expires 7/1/2032. Forecasts assume Planet Fitness renews at the terms and conditions of their lease renewal option in 2032 and every year after.
3Calculated as a % of Rental Revenue

 

3

 

 

SCHOLAR STATE COLLEGE

FINANCIAL PROFORMA

 

  # of Rooms: 72

 

   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7   Year 8   Year 9   Year 10 
   1/1/2027   1/1/2028   1/1/2029   1/1/2030   1/1/2031   1/1/2032   1/1/2033   1/1/2034   1/1/2035   1/1/2036 
  12/31/2027   12/31/2028   12/31/2029   12/31/2030   12/31/2031   12/31/2032   12/31/2033   12/31/2034   12/31/2035   12/31/2036 
Available Rooms   26,280    26,280    26,280    26,352    26,280    26,280    26,280    26,352    26,280    26,280 
Rooms Occupied   18,922    18,922    18,922    18,973    18,922    18,922    18,922    18,973    18,922    18,922 
Occupancy %   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%   72.0%
ADR   220.14    226.75    233.55    240.56    247.77    255.21    262.86    270.75    278.87    287.24 
ADR Growth   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%   3.0%
Revpar   158.50    163.26    168.16    173.20    178.40    183.75    189.26    194.94    200.79    206.81 
Operating Revenue                                                  
Rooms Revenue  $4,165,474   $4,290,438   $4,419,151   $4,564,196   $4,688,277   $4,828,926   $4,973,793   $5,137,043   $5,276,697   $5,434,998 
F&B Revenue  $486,397   $510,717   $536,252   $563,065   $591,218   $620,779   $651,818   $684,409   $718,629   $754,561 
Parking Revenue  $200,569   $200,569   $200,569   $200,569   $200,569   $200,569   $200,569   $200,569   $200,569   $200,569 
Other Operated Departments  $54,085   $55,167   $56,270   $57,396   $58,544   $59,714   $60,909   $62,127   $63,369   $64,637 
Miscellaneous Income  $40,870   $41,687   $42,521   $43,371   $44,239   $45,124   $46,026   $46,947   $47,886   $48,843 
Total Operating Revenue  $4,947,394   $5,098,578   $5,254,764   $5,428,597   $5,582,847   $5,755,112   $5,933,115   $6,131,094   $6,307,151   $6,503,608 
Departmental Expenses                                                  
Rooms Expenses  $803,499   $825,837   $848,795   $874,260   $896,645   $921,572   $947,191   $975,608   $1,000,589   $1,028,405 
F & B Expenses  $382,196   $399,585   $417,767   $436,775   $456,648   $477,426   $499,149   $521,860   $545,605   $570,430 
Parking Expenses  $129,613   $129,613   $129,613   $129,613   $129,613   $129,613   $129,613   $129,613   $129,613   $129,613 
Other Departmental Expenses  $135,212   $137,917   $140,675   $143,489   $146,358   $149,285   $152,271   $155,317   $158,423   $161,591 
Total Departmental Expenses  $1,450,520   $1,492,952   $1,536,849   $1,584,136   $1,629,264   $1,677,896   $1,728,224   $1,782,398   $1,834,229   $1,890,039 
Total Departmental Income  $3,496,874   $3,605,626   $3,717,914   $3,844,461   $3,953,582   $4,077,216   $4,204,891   $4,348,697   $4,472,922   $4,613,570 
Undistributed Operating Expenses                                                  
Administrative & General  $434,305   $446,568   $459,203   $473,072   $485,638   $499,464   $513,711   $529,342   $543,527   $559,124 
Information & Telecom Systems  $69,609   $71,730   $73,921   $76,332   $78,519   $80,932   $83,424   $86,165   $88,656   $91,403 
Sales & Marketing  $373,660   $385,037   $396,783   $409,665   $421,435   $434,367   $447,721   $462,359   $475,754   $490,464 
Franchise Fee2  $374,893   $386,139   $397,724   $410,778   $421,945   $434,603   $447,641   $462,334   $474,903   $489,150 
Property Operations & Maintenance  $167,976   $173,091   $178,371   $184,162   $189,453   $195,266   $201,270   $207,850   $213,872   $220,485 
Utilities  $171,701   $176,948   $182,368   $188,401   $193,755   $199,733   $205,911   $212,782   $218,892   $225,710 
Total Undistributed Expenses  $1,592,144   $1,639,513   $1,688,370   $1,742,410   $1,790,745   $1,844,365   $1,899,677   $1,960,832   $2,015,604   $2,076,335 
Gross Operating Profit  $1,904,730   $1,966,113   $2,029,544   $2,102,051   $2,162,837   $2,232,851   $2,305,214   $2,387,865   $2,457,318   $2,537,235 
    38.5%   38.6%   38.6%   38.7%   38.7%   38.8%   38.9%   38.9%   39.0%   39.0%
Management Fees1  $148,422   $152,957   $157,643   $162,858   $167,485   $172,653   $177,993   $183,933   $189,215   $195,108 
Income Before Non-Operating Expenses  $1,756,308   $1,813,156   $1,871,901   $1,939,193   $1,995,352   $2,060,198   $2,127,221   $2,203,932   $2,268,103   $2,342,127 
Non-Operating Expenses                                                  
Leases   -    -    -    -    -    -    -    -    -    - 
Property & Other Taxes  $148,454   $152,907   $157,494   $162,219   $167,086   $172,098   $177,261   $182,579   $188,057   $193,698 
Insurance  $86,891   $89,498   $92,182   $94,948   $97,796   $100,730   $103,752   $106,865   $110,071   $113,373 
Total Non-Operating Expenses  $235,344   $242,405   $249,677   $257,167   $264,882   $272,829   $281,014   $289,444   $298,127   $307,071 
EBITA  $1,520,964   $1,570,751   $1,622,225   $1,682,026   $1,730,470   $1,787,369   $1,846,207   $1,914,488   $1,969,976   $2,035,055 
Replacement Reserve1  $197,896   $203,943   $210,191   $217,144   $223,314   $230,204   $237,325   $245,244   $252,286   $260,144 
Net Income - Before Debt Service  $1,323,068   $1,366,808   $1,412,034   $1,464,882   $1,507,156   $1,557,165   $1,608,882   $1,669,245   $1,717,690   $1,774,911 

 

Footnotes

 

1Calculated as a % of Total Revenue
2Calculated as a % of Rooms Revenue

 

4

 

 

COURTYARD STATE COLLEGE
FINANCIAL PROFORMA

 

  # of Rooms: 78

 

    Year 1     Year 2     Year 3     Year 4     Year 5     Year 6     Year 7     Year 8     Year 9     Year 10  
    1/1/2027     1/1/2028     1/1/2029     1/1/2030     1/1/2031     1/1/2032     1/1/2033     1/1/2034     1/1/2035     1/1/2036  
    12/31/2027     12/31/2028     12/31/2029     12/31/2030     12/31/2031     12/31/2032     12/31/2033     12/31/2034     12/31/2035     12/31/2036  
Available Rooms     28,470       28,470       28,470       28,548       28,470       28,470       28,470       28,548       28,470       28,470  
Rooms Occupied     20,498       20,498       20,498       20,555       20,498       20,498       20,498       20,555       20,498       20,498  
Occupancy %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %
ADR     205.77       211.95       218.30       224.85       231.60       238.55       245.70       253.07       260.67       268.49  
ADR Growth     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %
Revpar     148.16       152.60       157.18       161.89       166.75       171.75       176.91       182.21       187.68       193.31  
Operating Revenue                                                                                
Rooms Revenue   $ 4,217,996     $ 4,344,536     $ 4,474,872     $ 4,621,746     $ 4,747,392     $ 4,889,814     $ 5,036,508     $ 5,201,816     $ 5,343,232     $ 5,503,529  
F&B Revenue   $ 236,329     $ 248,146     $ 260,553     $ 273,581     $ 287,260     $ 301,623     $ 316,704     $ 332,539     $ 349,166     $ 366,624  
Other Operated Departments   $ 31,123     $ 31,746     $ 32,381     $ 33,028     $ 33,689     $ 34,363     $ 35,050     $ 35,751     $ 36,466     $ 37,195  
Miscellaneous Income     -       -       -       -       -       -       -       -       -       -  
Total Operating Revenue   $ 4,485,449     $ 4,624,428     $ 4,767,806     $ 4,928,355     $ 5,068,341     $ 5,225,799     $ 5,388,262     $ 5,570,106     $ 5,728,863     $ 5,907,348  
Departmental Expenses                                                                                
Rooms Expenses   $ 775,905     $ 797,476     $ 819,645     $ 844,236     $ 865,852     $ 889,923     $ 914,663     $ 942,104     $ 966,226     $ 993,087  
F & B Expenses   $ 210,646     $ 220,230     $ 230,251     $ 240,727     $ 251,680     $ 263,132     $ 275,104     $ 287,621     $ 300,708     $ 314,390  
Other Departmental Expenses   $ 8,403     $ 8,571     $ 8,743     $ 8,918     $ 9,096     $ 9,278     $ 9,463     $ 9,653     $ 9,846     $ 10,043  
Total Departmental Expenses   $ 994,955     $ 1,026,277     $ 1,058,639     $ 1,093,881     $ 1,126,629     $ 1,162,333     $ 1,199,231     $ 1,239,378     $ 1,276,780     $ 1,317,520  
Total Departmental Income   $ 3,490,494     $ 3,598,150     $ 3,709,167     $ 3,834,475     $ 3,941,712     $ 4,063,467     $ 4,189,031     $ 4,330,728     $ 4,452,083     $ 4,589,828  
Undistributed Operating Expenses                                                                                
Administrative & General   $ 333,263     $ 342,784     $ 352,582     $ 363,394     $ 373,044     $ 383,725     $ 394,718     $ 406,845     $ 417,680     $ 429,668  
Information & Telecom Systems   $ 63,248     $ 65,103     $ 67,014     $ 69,133     $ 71,010     $ 73,098     $ 75,249     $ 77,633     $ 79,747     $ 82,098  
Sales & Marketing   $ 212,285     $ 218,396     $ 224,687     $ 231,638     $ 237,828     $ 244,691     $ 251,755     $ 259,559     $ 266,516     $ 274,224  
Franchise Fee1   $ 421,800     $ 434,454     $ 447,487     $ 462,175     $ 474,739     $ 488,981     $ 503,651     $ 520,182     $ 534,323     $ 550,353  
Property Operations & Maintenance   $ 216,683     $ 222,921     $ 229,342     $ 236,437     $ 242,756     $ 249,760     $ 256,971     $ 264,937     $ 272,037     $ 279,906  
Utilities   $ 110,437     $ 113,859     $ 117,389     $ 121,342     $ 124,788     $ 128,665     $ 132,665     $ 137,142     $ 141,051     $ 145,446  
Total Undistributed Expenses   $ 1,357,715     $ 1,397,516     $ 1,438,500     $ 1,484,119     $ 1,524,165     $ 1,568,920     $ 1,615,009     $ 1,666,298     $ 1,711,354     $ 1,761,695  
Gross Operating Profit   $ 2,132,779     $ 2,200,634     $ 2,270,667     $ 2,350,356     $ 2,417,547     $ 2,494,547     $ 2,574,022     $ 2,664,430     $ 2,740,729     $ 2,828,133  
      47.5 %     47.6 %     47.6 %     47.7 %     47.7 %     47.7 %     47.8 %     47.8 %     47.8 %     47.9 %
Management Fees1   $ 134,563     $ 138,733     $ 143,034     $ 147,851     $ 152,050     $ 156,774     $ 161,648     $ 167,103     $ 171,866     $ 177,220  
Income Before Non-Operating Expenses   $ 1,998,216     $ 2,061,902     $ 2,127,633     $ 2,202,505     $ 2,265,497     $ 2,337,773     $ 2,412,375     $ 2,497,327     $ 2,568,863     $ 2,650,912  
Non-Operating Expenses                                                                                
Leases   $ 11,412     $ 11,412     $ 11,412     $ 11,412     $ 11,983     $ 11,983     $ 11,983     $ 11,983     $ 11,983     $ 12,582  
Property & Other Taxes   $ 139,018     $ 141,799     $ 144,635     $ 147,527     $ 150,478     $ 153,488     $ 156,557     $ 159,688     $ 162,882     $ 166,140  
Insurance   $ 92,658     $ 94,511     $ 96,401     $ 98,329     $ 100,296     $ 102,302     $ 104,348     $ 106,435     $ 108,563     $ 110,735  
Total Non-Operating Expenses   $ 243,088     $ 247,722     $ 252,448     $ 257,269     $ 262,756     $ 267,772     $ 272,888     $ 278,106     $ 283,428     $ 289,456  
EBITA   $ 1,755,127     $ 1,814,180     $ 1,875,185     $ 1,945,236     $ 2,002,740     $ 2,070,001     $ 2,139,487     $ 2,219,221     $ 2,285,435     $ 2,361,456  
Replacement Reserve1   $ 179,418     $ 184,977     $ 190,712     $ 197,134     $ 202,734     $ 209,032     $ 215,530     $ 222,804     $ 229,155     $ 236,294  
Net Income - Before Debt Service   $ 1,575,709     $ 1,629,203     $ 1,684,472     $ 1,748,102     $ 1,800,007     $ 1,860,969     $ 1,923,956     $ 1,996,417     $ 2,056,280     $ 2,125,162  

 

Footnotes

 

1 Calculated as a % of Total Revenue
2 Calculated as a % of Rooms Revenue

 

5

 

 

RESIDENCE INN STATE COLLEGE
FINANCIAL PROFORMA

 

  # of Rooms: 81

 

    Year 1     Year 2     Year 3     Year 4     Year 5     Year 6     Year 7     Year 8     Year 9     Year 10  
    1/1/2027     1/1/2028     1/1/2029     1/1/2030     1/1/2031     1/1/2032     1/1/2033     1/1/2034     1/1/2035     1/1/2036  
    12/31/2027     12/31/2028     12/31/2029     12/31/2030     12/31/2031     12/31/2032     12/31/2033     12/31/2034     12/31/2035     12/31/2036  
Available Rooms     29,565       29,565       29,565       29,646       29,565       29,565       29,565       29,646       29,565       29,565  
Rooms Occupied     21,287       21,287       21,287       21,345       21,287       21,287       21,287       21,345       21,287       21,287  
Occupancy %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %     72.0 %
ADR     195.78       201.65       207.70       213.93       220.35       226.96       233.77       240.78       248.01       255.45  
ADR Growth     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %     3.0 %
Revpar     140.96       145.19       149.54       154.03       158.65       163.41       168.31       173.36       178.56       183.92  
Operating Revenue                                                                                
Rooms Revenue   $ 4,167,494     $ 4,292,519     $ 4,421,294     $ 4,566,410     $ 4,690,551     $ 4,831,268     $ 4,976,206     $ 5,139,535     $ 5,279,257     $ 5,437,635  
F&B Revenue     -       -       -       -       -       -       -       -       -       -  
Other Operated Departments   $ 42,483     $ 43,333     $ 44,199     $ 45,083     $ 45,985     $ 46,905     $ 47,843     $ 48,800     $ 49,776     $ 50,771  
Miscellaneous Income     -       -       -       -       -       -       -       -       -       -  
Total Operating Revenue   $ 4,209,977     $ 4,335,852     $ 4,465,494     $ 4,611,493     $ 4,736,536     $ 4,878,173     $ 5,024,049     $ 5,188,334     $ 5,329,032     $ 5,488,406  
                                                                                 
Departmental Expenses                                                                                
Rooms Expenses   $ 1,000,313     $ 1,028,122     $ 1,056,704     $ 1,088,406     $ 1,116,275     $ 1,147,307     $ 1,179,202     $ 1,214,580     $ 1,245,679     $ 1,280,309  
F & B Expenses     -       -       -       -       -       -       -       -       -       -  
Other Departmental Expenses   $ 12,490     $ 12,740     $ 12,995     $ 13,254     $ 13,520     $ 13,790     $ 14,066     $ 14,347     $ 14,634     $ 14,927  
Total Departmental Expenses   $ 1,012,803     $ 1,040,862     $ 1,069,698     $ 1,101,661     $ 1,129,794     $ 1,161,097     $ 1,193,268     $ 1,228,927     $ 1,260,313     $ 1,295,235  
                                                                                 
Total Departmental Income   $ 3,197,174     $ 3,294,990     $ 3,395,795     $ 3,509,833     $ 3,606,742     $ 3,717,075     $ 3,830,781     $ 3,959,407     $ 4,068,720     $ 4,193,170  
                                                                                 
Undistributed Operating Expenses                                                                                
Administrative & General   $ 309,759     $ 318,346     $ 327,171     $ 336,954     $ 345,563     $ 355,144     $ 364,990     $ 375,906     $ 385,511     $ 396,200  
Information & Telecom Systems   $ 62,983     $ 64,773     $ 66,613     $ 68,664     $ 70,453     $ 72,455     $ 74,514     $ 76,809     $ 78,810     $ 81,049  
Sales & Marketing   $ 191,700     $ 197,052     $ 202,554     $ 208,662     $ 214,023     $ 219,999     $ 226,142     $ 232,962     $ 238,948     $ 245,621  
Franchise Fee2   $ 395,912     $ 407,789     $ 420,023     $ 433,809     $ 445,602     $ 458,970     $ 472,740     $ 488,256     $ 501,529     $ 516,575  
Property Operations & Maintenance   $ 223,555     $ 229,797     $ 236,213     $ 243,336     $ 249,588     $ 256,557     $ 263,721     $ 271,674     $ 278,655     $ 286,436  
Utilities   $ 155,890     $ 160,551     $ 165,351     $ 170,758     $ 175,388     $ 180,632     $ 186,034     $ 192,117     $ 197,327     $ 203,228  
Total Undistributed Expenses   $ 1,339,799     $ 1,378,307     $ 1,417,925     $ 1,462,183     $ 1,500,617     $ 1,543,757     $ 1,588,140     $ 1,637,724     $ 1,680,780     $ 1,729,111  
Gross Operating Profit   $ 1,857,375     $ 1,916,682     $ 1,977,870     $ 2,047,650     $ 2,106,125     $ 2,173,318     $ 2,242,640     $ 2,321,683     $ 2,387,939     $ 2,464,060  
      44.1 %     44.2 %     44.3 %     44.4 %     44.5 %     44.6 %     44.6 %     44.7 %     44.8 %     44.9 %
Management Fees1   $ 126,299     $ 130,076     $ 133,965     $ 138,345     $ 142,096     $ 146,345     $ 150,721     $ 155,650     $ 159,871     $ 164,652  
Income Before Non-Operating Expenses   $ 1,731,075     $ 1,786,607     $ 1,843,906     $ 1,909,305     $ 1,964,029     $ 2,026,973     $ 2,091,919     $ 2,166,033     $ 2,228,068     $ 2,299,408  
Non-Operating Expenses                                                                                
Leases   $ 2,472     $ 2,522     $ 2,572     $ 2,624     $ 2,676     $ 2,730     $ 2,784     $ 2,840     $ 2,897     $ 2,955  
Property & Other Taxes   $ 139,018     $ 141,799     $ 144,635     $ 147,527     $ 150,478     $ 153,488     $ 156,557     $ 159,688     $ 162,882     $ 166,140  
Insurance   $ 99,419     $ 101,408     $ 103,436     $ 105,505     $ 107,615     $ 109,767     $ 111,962     $ 114,202     $ 116,486     $ 118,815  
Total Non-Operating Expenses   $ 240,910     $ 245,729     $ 250,643     $ 255,656     $ 260,769     $ 265,984     $ 271,304     $ 276,730     $ 282,265     $ 287,910  
EBITA   $ 1,490,165     $ 1,540,878     $ 1,593,262     $ 1,653,649     $ 1,703,260     $ 1,760,988     $ 1,820,615     $ 1,889,303     $ 1,945,804     $ 2,011,497  
Replacement Reserve1   $ 168,399     $ 173,434     $ 178,620     $ 184,460     $ 189,461     $ 195,127     $ 200,962     $ 207,533     $ 213,161     $ 219,536  
Net Income - Before Debt Service   $ 1,321,766     $ 1,367,444     $ 1,414,643     $ 1,469,189     $ 1,513,798     $ 1,565,861     $ 1,619,653     $ 1,681,770     $ 1,732,642     $ 1,791,961  

 

Footnotes

 

1 Calculated as a % of Total Revenue
2 Calculated as a % of Rooms Revenue

 

6