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    Phuket Beach - Team 1

    Uploaded by

    Eduardo Chacón
    This document summarizes the financial projections for a hotel renovation and expansion project over a 6 year period. Key details include: - Total renovation costs of €1.7M in Year 0. - Projected revenues grow from €13.2M in Year 1 to €15.4M in Year 6 with possible losses accounted for. - Operating cash flows are positive every year after Year 0 ranging from €1.3M to €1.6M. - Net income ranges from a €1.7M loss in Year 0 to €1.3M profit in Year 6.

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    Phuket Beach - Team 1

    Uploaded by

    Eduardo Chacón
    114 views6 pages
    This document summarizes the financial projections for a hotel renovation and expansion project over a 6 year period. Key details include: - Total renovation costs of €1.7M in Year 0. - Projected revenues grow from €13.2M in Year 1 to €15.4M in Year 6 with possible losses accounted for. - Operating cash flows are positive every year after Year 0 ranging from €1.3M to €1.6M. - Net income ranges from a €1.7M loss in Year 0 to €1.3M profit in Year 6.

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    This document summarizes the financial projections for a hotel renovation and expansion project over a 6 year period. Key details include: - Total renovation costs of €1.7M in Year 0. - Projected revenues grow from €13.2M in Year 1 to €15.4M in Year 6 with possible losses accounted for. - Operating cash flows are positive every year after Year 0 ranging from €1.3M to €1.6M. - Net income ranges from a €1.7M loss in Year 0 to €1.3M profit in Year 6.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    114 views6 pages

    Phuket Beach - Team 1

    Uploaded by

    Eduardo Chacón
    This document summarizes the financial projections for a hotel renovation and expansion project over a 6 year period. Key details include: - Total renovation costs of €1.7M in Year 0. - Projected revenues grow from €13.2M in Year 1 to €15.4M in Year 6 with possible losses accounted for. - Operating cash flows are positive every year after Year 0 ranging from €1.3M to €1.6M. - Net income ranges from a €1.7M loss in Year 0 to €1.3M profit in Year 6.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 6

    Cost of Equity 12%

    Corporate tax 30%


    Discount Period

    Year 0 Year 1 Year 2


    Net Room Revenue 13,200,000 € 13,464,000 €
    Possible loss in revenue -132,000 € -134,640 €

    Rent Revenue 170,000 € 170,000 €


    Repair and Maintenance costs 10,000 € 10,000 €
    Renovation costs -770,000 €
    Cost of facility usage billed -55,000 € -55,000 €
    EBITDA 125,000 € 125,000 €
    Depreciation -128,333 € -128,333 €
    EBIT -3,333 € -3,333 €
    Corporate Tax 0 0
    Net Income (Loss) -770,000 € -3,333 € -3,333 €

    Operating Cash flow


    EBIT 0€ -3,333 € -3,333 €
    Depreciation 0€ -128,333 € -128,333 €
    Corporate Tax 0€0 0
    Operating Cash flow 125,000 € 125,000 €
    Loss of Hotel revenue -132,000 € -134,640 €
    Cash flow including opportunity cost -7,000 € -9,640 €

    CAPEX -770,000 € 0€ 0€

    Change in Net Working Capital


    Ending Net Working Capital
    Starting Net Working Capital
    Change in Net Working Capital
    Year 3 Year 4 Year 5 Year 6 Premises
    14,137,000 € 14,844,000 € 15,140,000 € 15,443,000 €
    -141,370 € -148,440 € -151,400 € -154,430 € 1%

    178,500 € 178,500 € 187,425 € 187,425 € 5%


    10,000 € 10,000 € 10,000 € 10,000 € 10,000 €
    -770,000 €
    -55,000 € -55,000 € -55,000 € -55,000 € -55,000 €
    133,500 € 133,500 € 142,425 € 142,425 €
    -128,333 € -128,333 € -128,333 € -128,333 € 6
    5,167 € 5,167 € 14,092 € 14,092 €
    1,550 € 1,550 € 4,228 € 4,228 € 30%
    3,617 € 3,617 € 9,864 € 9,864 €

    5,167 € 5,167 € 14,092 € 14,092 €


    -128,333 € -128,333 € -128,333 € -128,333 €
    1,550 € 1,550 € 4,228 € 4,228 €
    131,950 € 131,950 € 138,198 € 138,198 €
    -141,370 € -148,440 € -151,400 € -154,430 €
    -9,420 € -16,490 € -13,203 € -16,233 €

    0€ 0€ 0€ 0€
    Explanation
    Given
    Family customers

    Growth every two years

    Range from 770k to 1m


    Pro-rata allocation

    Years

    of Net Income (0 if loss)


    Ke 12%
    Corporate tax 30%
    Discount rate 5%

    Year 0 Year 1 Year 2


    Net Room Revenue 13,200,000 € 13,464,000 €
    Possible loss in revenue 660,000 € 673,200 €

    Investment (Renovation) -800,000 €


    Investment (Equipment) -900,000 €
    Pub Revenue 4,672,000 € 4,905,600 €
    Food & Beverage Costs -1,168,000 € -1,226,400 €
    Salaries -747,520 € -784,896 €
    Other Operating Expenses -1,027,840 € -1,079,232 €
    Cost of facility usage -55,000 € -55,000 €
    EBITDA -1,700,000 € 1,728,640 € 1,815,072 €
    Depreciation -283,333 € -283,333 €
    EBIT 1,445,307 € 1,531,739 €
    Corporate Tax 433,592 € 459,522 €
    Net Income (Loss) -1,700,000 € 1,011,715 € 1,072,217 €

    Operating Cash flow


    EBIT 0€ 1,445,307 € 1,531,739 €
    Depreciation 0€ -283,333 € -283,333 €
    Corporate Tax 0€ 433,592 € 459,522 €
    Operating Cash flow 1,295,048 € 1,355,550 €
    Loss of Hotel revenue 0€ 0€
    Cash flow including opportunity cost 1,295,048 € 1,355,550 €
    Year 3 Year 4 Year 5 Year 6 Premises
    14,137,000 € 14,844,000 € 15,140,000 € 15,443,000 €
    706,850 € 742,200 € 757,000 € 772,150 € 5%

    -800,000 €
    -900,000 €
    5,150,880 € 5,408,424 € 5,678,845 € 5,962,787 € 5%
    -1,287,720 € -1,352,106 € -1,419,711 € -1,490,697 € 25%
    -824,141 € -865,348 € -908,615 € -954,046 € 16%
    -1,133,194 € -1,189,853 € -1,249,346 € -1,311,813 € 22%
    -55,000 € -55,000 € -55,000 € -55,000 € -55,000 €
    1,905,826 € 2,001,117 € 2,101,173 € 2,206,231 €
    -283,333 € -283,333 € -283,333 € -283,333 € 6
    1,622,492 € 1,717,784 € 1,817,839 € 1,922,898 €
    486,748 € 515,335 € 545,352 € 576,869 € 30%
    1,135,745 € 1,202,448 € 1,272,488 € 1,346,029 €

    1,622,492 € 1,717,784 € 1,817,839 € 1,922,898 €


    -283,333 € -283,333 € -283,333 € -283,333 €
    486,748 € 515,335 € 545,352 € 576,869 €
    1,419,078 € 1,485,782 € 1,555,821 € 1,629,362 €
    0€ 0€ 0€ 0€
    1,419,078 € 1,485,782 € 1,555,821 € 1,629,362 €
    Explanation
    Given
    Family customers

    Can range from 800k to 1,2m

    64 covers/day@200€ /5% growth


    of sales
    of sales
    of sales
    Pro-rata allocation

    Years

    of Net Income (0 if loss)

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