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HARROW PARK ART HOTEL, ONIRU
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INPUTS/ASSUMPTIONS
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 Base Case
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 GENERAL ASSUMPTIONS Case in Use Base Case Best Case Worst Case
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 Annual Inflation Rate12%12%10%14%
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 Tax Rate32%32%32%32%
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 Annual GDP Growth Rate5%5%7%3%
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 Dividend Payout Ratio40%40%60%20%
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 Months in a Year 12 12 12 12
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 Days in a Month 30 30 30 30
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 PROJECT ASSUMPTIONS
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 Land 189,511,040 189,511,040 189,511,040 189,511,040
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 Building 726,800,000 726,800,000 654,120,000 799,480,000
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 Plant & Machinery 41,072,000 41,072,000 36,964,800 45,179,200
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 Furniture, Fittings & Equipments 114,240,480 114,240,480 102,816,432 125,664,528
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 Motor Vehicles 20,500,000 20,500,000 18,450,000 22,550,000
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 Working Capital (months) 6 6 3 9
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 Contingencies8%8%4%12%
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 Fund Raising Fees3%3%3%3%
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 REVENUE ASSUMPTIONS
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 Trading Income:
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 Foods & Beverages % of Occupancy rate35%35%42%28%
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 Laundry Services % of Occupancy rate20%20%30%10%
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 Bar & Restaurant % of Occupancy rate40%40%44%36%
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 Foods & Beverages Average Cost/meal 2,500 2,500 2,000 3,000
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 Laundry Services Average Cost 1,000 1,000 800 1,200
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 Bar & Restaurant
Average Cost/Accom/night
5,000 5,000 4,000 6,000
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 Conference Halls 600,000 600,000 660,000 540,000
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 Number of times used in a months 2 2 2 2
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 Accommodation
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 No. of Rooms
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 Total No. Rooms 42 42 42 42
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 Standard 28 28 28 28
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 Deluxe 9 9 9 9
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 Executive Suite 5 5 5 5
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 Occupancy Rate
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 Standard50%50%63%38%
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 Deluxe40%40%50%30%
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 Executive Suite40%40%50%30%
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 Growth Rate in Occupancy
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 Standard15%15%23%8%
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 Deluxe15%15%23%8%
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 Executive Suite10%10%15%5%
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 Tariff
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 Standard 42,746 42,746 51,295 34,196
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 Deluxe 56,192 56,192 67,431 44,954
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 Executive Suite 108,753 108,753 130,503 87,002
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 Tariff Growth Rate12%12%14%10%
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 OPERATING EXPENSES ASSUMPTIONS
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 Cost Of Sales:
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 Foods & Beverages % of
Food & Bev. Rev.		40%40%30%50%
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 Bar & Restaurant % of
Bar & Res. Rev.		30%30%20%40%
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 Laundry Services % of Laundry Serv. Rev.20%20%10%30%
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 Salaries
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 Adminstration Department
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 General Manager 550,000 550,000 825,000 275,000
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 Purchasing Manager 200,000 200,000 300,000 100,000
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 Concierge 80,000 80,000 120,000 40,000
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 Drivers 30,000 30,000 45,000 15,000
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 Receptionists 60,000 60,000 90,000 30,000
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 Washermen 30,000 30,000 45,000 15,000
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 Door Man 35,000 35,000 52,500 17,500
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 Chief Security Officer 100,000 100,000 150,000 50,000
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 Security Officer 40,000 40,000 60,000 20,000
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 Finance & Accounts Department
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 Financial Controller 280,000 280,000 420,000 140,000
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 Clerical Officers 50,000 50,000 75,000 25,000
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 Maintenance Department
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 Facilities Manager 150,000 150,000 225,000 75,000
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 Technician 50,000 50,000 75,000 25,000
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 Cleaners 20,000 20,000 30,000 10,000
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 Kitchen Department
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 Chef 500,000 500,000 750,000 250,000
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 Cooks 80,000 80,000 120,000 40,000
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 Bar & Restuarant Department
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 Bar Tenders 35,000 35,000 52,500 17,500
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 Waiters 35,000 35,000 52,500 17,500
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 Administration Expenses:
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 Management Fee % of Gross Revenue3%3%3%3%
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 Management Incentive Fee % of Adjusted Gross Operating Profit7.5%7.5%7.5%7.5%
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 Refurbishment Fund % of Gross Revenue5%5%5%5%
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 License Fee % of Gross Revenue1%1%1%1%
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 Auditors Remuneration - - - -
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 Property Maintenance 17,000,000 17,000,000 14,450,000 19,550,000
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 Adminstration Expenses 15,000,000 15,000,000 12,750,000 17,250,000
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 Insurance Building % of NBV1%1%1%1%
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 Insurance on Other Assets % of NBV5%5%5%5%
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 Depreciation
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 Building %2%2%2%2%
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 Plant & Machinery %20%20%20%20%
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 Furniture,Fittings & Equipments %20%20%20%20%
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 Motor Vehicles %25%25%25%25%
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 Creditors %0%0%0%0%