Laserfiche WebLink
ta <br />www.FinanceDTA.com <br />Table 10: Hotel Operating Expenses <br />SECTION II <br />LRV OF THE PROJECT <br />Expenses <br />.. <br />per •.. <br />ly <br />MReeinue <br />Annual <br />% of Total <br />Department Expenses <br />Rooms <br />25.00% <br />($9,188) <br />($3,353,438) <br />(18.32%) <br />Food Costs <br />50.00% <br />($11.76) <br />($2,940) <br />($1,073,100) <br />(5.86%) <br />Beverage Costs <br />40.00% <br />($4.41) <br />($1,103) <br />($402,413) <br />(2.20%) <br />Food and Beverage Labor Cost <br />20.00% <br />($6.91) <br />($1,727) <br />($630,446) <br />(3.44%) <br />Technology Costs <br />15.00% <br />($0.66) <br />($165) <br />($60,362) <br />(0.33%) <br />Minor Operated Department <br />20.00% <br />($2.94) <br />($735) <br />($268,275) <br />(1.47%) <br />Total Department Expenses <br />($63.43) <br />($15,858) <br />($5,788,033) <br />(31.61%) <br />Undistributed Operating <br />Expenses <br />Administration and General Operating <br />10.00% <br />($14.70) <br />($3,675) <br />($1,341,375) <br />(7.33%) <br />Marketing <br />6.00% <br />($8.82) <br />($2,205) <br />($804,825) <br />(4.40%) <br />Management Fee <br />6.00% <br />($8.82) <br />($2,205) <br />($804,825) <br />(4.40%) <br />Franchise Fee <br />8.00% <br />($11.76) <br />($2,940) <br />($1,073,100) <br />(5.86%) <br />Energy <br />6.00% <br />($8.82) <br />($2,205) <br />($804,825) <br />(4.40%) <br />Operations and Maintenance <br />5.00% <br />($7.35) <br />($1,838) <br />($670,688) <br />(3.66%) <br />Total Undistributed Operating Expenses <br />($60.27) <br />($15,068) <br />($5,499,638) <br />(30.04%) <br />It is our understanding that the proposed hotel will be comparable to the Westin South <br />Coast Plaza. According to CoStar, the cap rate for Luxury and Upper Upscale hotels in the <br />2-Mile Zone is 6.5%. <br />Figure 4: Hotel Market Cap Rate by Class <br />Market Cap Fate By Class <br />9.5% <br />9.0% <br />8.5% <br />6.0% <br />7.5% <br />7.0% <br />&5% <br />6.0% <br />Related Bristol at 3600 South Bristol Street <br />Land Residual Value Study Report <br />18 19 I 20 I 21 22 ! f 23 <br />Luxury & Upper Upscale Upscale & Upper Midscale <br />a Midscale & Economy <br />Exhibit 10 <br />September 27, 2023 <br />12 <br />