Border Hotel Case Calculations

Revenue Estimates
Revenue Item 100% Monthly 75% Monthly 50% Monthly Notes
Rooms $2,956,500 $2,217,375 $1,478,250 8,100 daily
Leases $180,000 $135,000 $90,000
TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250

Expences
TOTAL VARIABLE COSTS $454,000 $340,500 $227,000
TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002
TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002
EBIT $1,279,500 $608,874 -$61,752 Depreciation $320,000 $320,001 $320,002
EBITDA $1,599,500 $928,875 $258,250 Furnishing Interest $110,000 $110,000 $110,000
20yr Mortgage Interest $182,000 $182,000 $182,000
TOTAL INTEREST $292,000 $292,000 $292,000 TAXES (40%) $395,000.00 $126,749.60 -$141,500.80 Furnishing Principal $180,160 $180,160 $180,160
20yr Mortgage Principal $49,713 $49,713 $49,713
TOTAL PRINCIPAL $229,873 $229,873 $229,873
NET INCOME $362,627 -$39,749 -$442,124
DIVIDEND PAYMENT $29,010 -$3,180 -$35,370 RETAINED EARNINGS $333,617 -$36,569

EBIT/INTEREST 4.38 2.09 (0.21)
EBITDA/INTEREST 5.48 3.18 0.88
BURDEN $675,121.67 $675,121.67 $675,121.67
EBIT/BURDEN 1.90 0.90 (0.09) ROE= Net Income/OE (H1) 32.97% -3.61% -40.19% Revenue Estimates
Revenue Item 100% Monthly 75% Monthly 50% Monthly
Rooms $2,956,500 $2,217,375 $1,478,250
Leases $180,000 $135,000 $90,000
TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250

Expences
TOTAL VARIABLE COSTS $454,000 $340,500 $227,000
TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002
TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002
EBIT $1,279,500 $608,874 -$61,752 Depreciation $320,000 $320,001 $320,002
EBITDA $1,599,500 $928,875 $258,250 Furnishing Interest $110,000 $110,000 $110,000 TOTAL INTEREST $110,000 $110,000 $110,000 TAXES (40%) $467,800.00 $199,549.60 -$68,700.80 Furnishing Principal $180,160 $180,160 $180,160
20yr Mortgage Principal $49,713