Room Rental Cash Flows

Month Days Avaliable Rooms (144) Occupancy Rate

April 30 4,320 0.35
May 31 4,464 0.45
June 30 4,320 0.55
July 31 4,464 0.75
August 31 4,464 0.75
September 30 4,320 0.45
October 31 4,464 0.35

First year occupancy is 75%

Cash Flows From Operations

Revenue Year 1 Year 2 Year 3

Rooms 3,824,550 5,099,400
Food and Bev 1,811,160 2,414,880
Events 1,175,000 1,175,000
6,810,710 8,689,280
Expenses
Salaries 2,315,641 2,954,355
Food and Bev cost 843,348 1,024,464
Operating costs 345,000 953,499 1,216,499
Advertising 100,000
Admin exp 408,643 521,357
Marketing 204,321 260,678
Mortgage 697,500 1,395,000 1,325,250
Management fee 681,071 937,856
1,142,500 6,801,524 8,240,460

Cash flow before tax -1,142,500 9,186 448,820

Tax rate (38%) -434,150 3,491 170,552

Projected Cash Flows -708,350 5,696 278,269

 Food and Bev Cash Flows

Occupied Room Rates Room Revenue Month

1,512 200 302,400 April
2,009 250 502,200 May
2,376 300 712,800 June
3,348 375 1,255,500 July
3,348 375 1,255,500 August
1,944 350 680,400 September
1,562 250 390,600 October
5,099,400
3,824,550 First year occupancy is 75%

Valuation of Operating Cash Flows

GLG share of Operations
Year 1 -708,350 0.25 -177,088
Year 2 5,696 0.25 1,424
Year 3 278,269 0.25 69,567

Year 3 69,567
Year 2 1,424
70,991
Mutiplier of 6 425,946
Year 1 -177,088
Value of Op 248,859
Occupied Revenue (150)
1,512 226,800
2,009 301,320
2,376 356,400
3,348 502,200
3,348 502,200
1,944 291,600
1,562 234,360
2,414,880
1,811,160
Cash Flows For Condos

1st yr 2nd yr 3rd yr

Revenue 5,040,000 20,160,000
Condo fee 336,000
5,040,000 20,160,000 336,000

Construction costs 8,400,000 8,400,000

Maintenance costs 320,000
Interest on financing 336,000 1,008,000 1,344,000
8,736,000 9,408,000 320,000

Cash flow before tax -3,696,000 10,752,000 16,000

Tax 38% -1,404,480 4,085,760 6,080

Projected Cash Flows -2,291,520 6,666,240 9,920

Valuation of Condo

Year 1 -2,291,520
Year 2 6,666,240
4,374,720
GLG share 0.25
1,093,680