2023 EST.

INCOME CAPITALIZATION APPROACH

Paseo Hotels - Due Diligence

YE 2023* Pr
GROSS Property Revenue
Room revenue
Food , beverage, and events revenue
Other operated departments

TOTAL GROSS OPERATING REVENUE

OPERATING EXPENSES
F&B exp.
other oprerating costs
Room supplies and maintenance

TOTAL DEPARTMENT EXPENSES

UNDISTRIBUTED EXPENSES
Administrative and General

TOTAL EXPENSES

NET INCOME BEFORE ADJUSTMENTS

Replacement Reserve 4%

NET INCOME from property and business operarions

less - income related to buisness ops
 Net Income from real and personal property
CAPITALIZATION RATE

INDICATED VALUE OF REAL AND PERSONAL PROPERTY

ROACH
ce

YE 2023* Projected Notes

$17,875,000 97% Hospitality Revenue and Expense Ranges a

$536,250 3% F&B and Operating Revenue: 3-5%
$0 0% Replacement Reserves: 3-5%
Departmental Expense: 35-40%
$18,411,250 100% Undistributed Expense (Including Tax): 30-4

$920,563 5%
$920,563 5%
$5,523,375 30%

$7,364,500 40%

$6,443,938 35%

$13,808,438 75%

$4,602,813

$736,450

$3,866,363
-$579,954 15%
 $3,286,408
9.00%

$36,515,646
d Expense Ranges as determined from Market Benchmark Data
venue: 3-5%

35-40%
(Including Tax): 30-40%