Math - ROI.

Cost of Land � 1 Million USD
Cost of Building � 3 Million USD
Cost of FF&E � 1.5 Million USD
Working Capital � 500,000 USD
Total Investment � 6 Million USD
Debt Services - Nil

This is a 80 room hotel. Occupancy forecasted is 80%.
F&B to Room Revenue ratio is 1:1. (operating Profit for F&B 40%).
Other MOD have an operational profit of 75%.
If we have to give a 10% ROI to the Owners Equity, how much do you think that our ADR should be ?

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