Ashgrove Select Service Hotel — development pro forma
"Synthetic sample project. Figures are internally consistent, not market data."

USES OF FUNDS,Amount,$/gross sf,% of total
Land acquisition,2750000.00,32.51,0.0949
Hard cost,19627200.00,232.00,0.6772
Hard cost contingency (5%),981360.00,11.60,0.0339
Soft cost (21%),4327797.60,51.16,0.1493
Construction period interest,1298144.09,15.34,0.0448
Total development cost,28984501.69,342.61,1.0000

SOURCES OF FUNDS,Amount,% of total
Construction loan,17390701.01,0.6000
Sponsor equity,11593800.68,0.4000

OPERATING BASIS,Value
Keys,132
ADR,172.0
Occupancy,0.74
RevPAR,127.28

STABILIZED OPERATIONS,Amount
Effective gross revenue,7236173.47
Operating expense,4486427.55
Net operating income,2749745.92

RETURNS,Value
Yield on cost,0.094870
Exit capitalisation rate,0.085000
Spread over exit cap (bps),99
Stabilised value,32349952.00
Development profit,3365450.31
Unlevered IRR,0.135308
Levered IRR,0.184505
Equity multiple,2.677

CASH FLOW,Year 0,Year 1,Year 2,Year 3,Year 4,Year 5,Year 6,Year 7
Unlevered,-28984501.69,2825363.93,2903061.44,2982895.63,3064925.26,3149210.71,3235814.00,41764365.78
Levered,-11593800.68,1181942.68,1259640.19,1339474.38,1421504.01,1505789.46,1592392.75,22730243.52