Holiday Inn Express Gunnison, CO

Pennbridge Gunnison
(Holiday Inn Express)
Distributions - August 2008
Paid September 21, 2008
Syndicated Value
Total Equity
Loan
Investor
Pennbridge Gunnison 1, LLC
Pennbridge Gunnison 2, LLC
Pennbridge Gunnison 3, LLC
Pennbridge Gunnison 4, LLC
Pennbridge Gunnison 5, LLC
Pennbridge Gunnison 7, LLC
Pennbridge Gunnison 8, LLC
Pennbridge Gunnison 9, LLC
Pennbridge Gunnison 10, LLC
Pennbridge Gunnison 11, LLC
Pennbridge Gunnison 12, LLC
Pennbridge Gunnison 13, LLC
Pennbridge Gunnison 14, LLC
Pennbridge Gunnison 16, LLC
Pennbridge Gunnison 17, LLC
Total
$11,332,000.00
$6,332,000.00
$5,000,000.00
Equity Invested
$326,000.00
$200,000.00
$388,500.00
$450,000.00
$300,000.00
$543,000.00
$247,500.00
$130,214.00
$506,560.00
$746,921.70
$200,000.00
$500,000.00
$500,000.00
$657,318.30
$635,986.00
Leverage
$257,422.62
$157,927.98
$306,775.11
$355,337.97
$236,891.98
$428,774.48
$195,435.88
$102,822.17
$400,000.00
$589,799.19
$157,927.98
$394,819.96
$394,819.96
$519,044.77
$502,199.94
TOTAL
$583,422.62
$357,927.98
$695,275.11
$805,337.97
$536,891.98
$971,774.48
$442,935.88
$233,036.17
$906,560.00
$1,336,720.89
$357,927.98
$894,819.96
$894,819.96
$1,176,363.07
$1,138,185.94
% of
Ownership
5.148%
3.159%
6.136%
7.107%
4.738%
8.575%
3.909%
2.056%
8.000%
11.796%
3.159%
7.896%
7.896%
10.381%
10.044%
$6,332,000.00
$5,000,000.00
$11,332,000.00
100.000%
Monthly 8%
Cash Flow
$2,173.33
$1,333.33
$2,590.00
$3,000.00
$2,000.00
$3,620.00
$1,650.00
$868.09
$3,377.07
$4,979.48
$1,333.33
$3,333.33
$3,333.33
$4,382.12
$4,239.91
Registered
Agent fee to
NCR
$61.34
$61.34
$61.34
$61.34
$61.34
$61.34
$46.00
$46.00
$46.00
$46.00
$46.00
$46.00
$46.00
$46.00
$30.66
Distribution pd
September 21st
$2,111.99
$1,271.99
$2,528.66
$2,938.66
$1,938.66
$3,558.66
$1,604.00
$822.09
$3,331.07
$4,933.48
$1,287.33
$3,287.33
$3,287.33
$4,336.12
$4,209.25
$42,213.33
$766.70
$41,446.63
Holiday Inn Express - Gunnison, CO
Income Statement
Actual
Rms Available
Rms Sold
ADR
Occ %
RevPar
REVENUE
Rooms
Food & Beverages
Telephone
Other Operated Departments
Rentals & Other Income
TOTAL REVENUES
CURRENT PERIOD - AUGUST 2008
%
Budget
%
3,317
2,498
120.61
75.31%
90.83
3,317
2,700
125.00
81.40%
101.75
Diff
(202)
(4.39)
-6.09%
(10.92)
301,286
624
113
190
16
302,229
99.69%
0.21%
0.04%
0.06%
0.01%
100.00%
337,500
1,000
270
378
425
339,573
99.39%
0.29%
0.08%
0.11%
0.13%
100.00%
(36,214)
(376)
(157)
(188)
(409)
(37,344)
71,344
455
125
71,923
23.68%
403.03%
65.61%
23.80%
72,986
300
259
73,545
21.63%
111.11%
68.57%
21.66%
1,642
(155)
135
1,621
230,305
76.20%
266,028
78.34%
(35,723)
UNDISTRIBUTED EXPENSES
Administrative & General
Marketing
Franchise Fees
Facilities & Maintenance
Energy/Utilities
TOTAL UNDIST EXPENSES
23,998
9,343
18,078
7,477
3,469
62,366
7.94%
3.09%
5.98%
2.47%
1.15%
20.64%
18,095
14,715
20,250
6,094
5,175
64,329
5.33%
4.33%
5.96%
1.79%
1.52%
18.94%
(5,903)
5,372
2,172
(1,383)
1,706
1,963
GROSS OPERATING PROFIT
167,939
55.57%
201,699
59.40%
(33,760)
9,067
7,000
2,202
12,089
30,358
3.00%
2.32%
0.73%
4.00%
10.05%
10,187
7,000
2,219
13,583
32,989
3.00%
2.06%
0.65%
4.00%
9.71%
1,120
17
1,494
2,631
137,581
45.52%
168,710
49.69%
(31,129)
DEPARTMENTAL EXPENSES
Rooms
Telephone
Other Operated Departments
TOTAL DEPARTMENTAL EXPENSES
TOTAL DEPART INCOME
FIXED CHARGES
Management Fees*
Property Taxes
Insurance
FF&E Reserves
TOTAL FIXED CHARGES
NET OPERATING INCOME*
* Manager NOI Guaranty see comments on Inception to Date Report
Holiday Inn Express - Gunnison, CO
Income Statement
Actual
Rms Available
Rms Sold
ADR
Occ %
RevPar
REVENUE
Rooms
Food & Beverages
Telephone
Other Operated Departments
Rentals & Other Income
TOTAL REVENUES
INCEPTION TO DATE 04/09/08 to 08/31/08
%
Budget
%
15,515
9,920
109.97
63.94%
70.31
15,408
10,349
114.15
67.17%
76.67
Diff
107
(429)
(4.18)
-3.23%
(6.36)
1,090,928
2,278
454
2,846
572
1,097,077
99.44%
0.21%
0.04%
0.26%
0.05%
100.00%
1,181,346
3,000
1,035
1,449
2,125
1,188,955
99.36%
0.25%
0.09%
0.12%
0.18%
100.00%
(90,419)
(722)
(581)
1,397
(1,553)
(91,878)
DEPARTMENTAL EXPENSES
Rooms
Telephone
Other Operated Departments
TOTAL DEPARTMENTAL EXPENSES
269,179
1,980
1,786
272,945
24.67%
436.30%
62.76%
24.88%
297,525
1,500
994
300,019
25.19%
144.94%
68.57%
25.23%
28,346
(480)
(793)
27,074
TOTAL DEPART INCOME
824,133
75.12%
888,937
74.77%
(64,804)
UNDISTRIBUTED EXPENSES
Administrative & General
Marketing
Franchise Fees
Facilities & Maintenance
Energy/Utilities
TOTAL UNDIST EXPENSES
84,906
43,158
65,537
23,859
11,725
229,186
7.74%
3.93%
5.97%
2.17%
1.07%
20.89%
81,622
53,329
70,881
29,430
22,575
257,836
6.86%
4.49%
5.96%
2.48%
1.90%
21.69%
(3,285)
10,171
5,343
5,571
10,850
28,651
GROSS OPERATING PROFIT
594,947
54.23%
631,101
53.08%
(36,153)
FIXED CHARGES
Management Fees*
Property Taxes
Insurance
FF&E Reserves
TOTAL FIXED CHARGES
32,912
35,000
9,178
43,883
120,973
3.00%
3.19%
0.84%
4.00%
11.03%
35,669
35,000
11,095
47,558
129,322
3.00%
2.94%
0.93%
4.00%
10.87%
2,756
1,917
3,675
8,348
NET OPERATING INCOME*
473,974
43.20%
501,779
42.21%
(27,805)
* Due to Management Fee Subordination per RIM Management Contract actual
NOI is equal to budgeted NOI (501,779). Adjustment to Management fees will
be reflected next month.
1 of 3
Holiday Inn Express
Gunnison, CO
Financial Review
August 2008
Current Month Results:
Actual
Budget
Last Year
Occupancy
75.31%
81.4%
92.89%
ADR
$120.61
$125.00
$116.30
RevPar
$90.83
$101.75
$112.03
Room Revenues
$301,285.88
$337,500.00
$358,320.30
F & B Reveues
$524.00
$1,000.00
$0.00
The hotel finished the month of August with a Rev Par of $90.83 versus last year of
$112.03. The British Group Quintec contributed 865 room nights at a rate of $120 during
2007 and was a one time group which was not expected to return 2008. The total revenue
contribution of this group for the month of August last year was $103,800. Due to the
loss of this group the hotel experienced an 18.9% decrease in RevPar as compared to
August 2007 but ADR increased by 3.7% as compared to August 2007.
Star Report (one month removed):
Actual
Rolling 12 Mos
Rolling 3 Mos
Occupancy Index
103.6%
104.1%
99.9%
ADR Index
110.6%
114.7%
112.9%
RevPar Index
114.5%
119.3%
112.8%
The latest monthly STAR report for the month of July reflects the Holiday Inn Express
improving RevPar by 13.2% versus the previous year (running twelve months) as
opposed to a 9.2% improvement for the competitive set of hotels.
Guest Tracking Scores (Ranking among others, prior three months): The
Holiday Inn Express Gunnison continues to excel as it relates to Overall Satisfaction
scores. The Holiday Inn Express Gunnison ranks in the top five percent of all Holiday Inn
Express hotels.
Actual
Goal
June
96.55
98
July
95.31
98
August
99.11
98
NOI Percentage:
Month
Year
Actual
45.52%
43.20%
Budget
49.69%
42.21%
2 of 3
Holiday Inn Express
Gunnison, CO
Financial Review
August 2008
The property continues to perform well relative to overall NOI. In August the property
fell short of budgeted NOI and Revenue by $33,391 and $37,344 respectively. The
operation continues to run efficiently and will continue to produce strong NOI relative to
budgets.
Month in Review and Discussion of Current Hotel Market Conditions:
There is no doubt we were impacted in the month of August by a slow economy and the
ability to replace the Quintec Helicopter business from the previous year. We continue to
explore all revenue opportunities moving forward. The Holiday Inn Express is
aggressively working on the following Sales and Marketing action items to improve our
revenue flow.
•
•
•
•
•
•
•
•
The property has completed HIRO training which will enable us to provide
more effective Revenue Management at the hotel.
Gary McLin, V.P. of Revenue Management and E-Commerce for Rim
Hospitality has been assisting the hotel with more effective E-Commerce
initiatives.
We are working with Susan Earles of IHG Performance Marketing to provide
a stronger presence on our website.
We are working with Ken Pahkim of IHG Field Marketing as his department
is assisting the hotel with State Tourism and Leisure related business.
We are scheduled to have our Expedia distribution channel open by the end of
October 2008.
We are targeting an increase of over 20% in Western State College business
over the next year.
Gunnison is constructing a new youth hockey rink which will attract out of
town guests. We are in close communications with the principals involved.
We are working closely with the Crested Butte Chamber of Commerce and
CVB for leads and cooperative opportunities.
Variance Analysis:
Rooms Department The Rooms Department had a profit of $229,942 or 76.32%. We
continue to work on better room attendant labor costs, breakfast costs and cleaning
supplies. We had the following variances within the Rooms Department
•
Complimentary Breakfast ran $4.91 per occupied room versus a budget of
$3.50 or a negative variance of $2,827
3 of 3
Holiday Inn Express
Gunnison, CO
Financial Review
August 2008
•
•
Cleaning Supplies ran $.99 per occupied room versus a budget of $.25 per
room or a negative variance of $1,805.
Travel Agent Commissions ran $1.76 per occupied room versus a budget of
$1.25 or a negative variance of $1,033.
Administrative and General Administrative and General Expenses were high due to
additional travel expenses of $1,958 for required IHG training incurred as well as an
investigation of two missing checks by the bank totaling $3,687 which will be reversed in
the September financial statements.
Inside The Hotel:
The Holiday Inn Express Inn Gunnison continues to move forward with the required IHG
Re Launch process. The signage has been approved and Jayne Carroll, Front Office
Manager, will be attending the required Stay Real training within the next few weeks. We
will be putting together a budget to include all additional required Re Launch
requirements.
Capital Needs:
Property Comments and Areas of Improvement:
An outside landscaper was hired. In the past few months the hotel has experienced a
dramatic improvement in the grounds overall.
Terminology Sheet
A&G
A:
ADR
AR
ARI
ACVB
B:
BP Var
BSC
CapEx
Comp Set
F&B
FTE
GDS
GOP
GSS
GSTS
HR
MPI
NGOP
NOI
OCC
OT
P/R
PMS
POR
POS
Q2
R/N
Rev
RevPar
RFP
RGI
SOP
SW
YTD
Administrative & General
Actual
Average Daily Room Rate
Accounts Receivable
Accounting Rate of Interest
Atlanta Convention & Visitors Bureau
Budget
Budget Passport Variance
Business Support Center
Capital Expenditures
Competitive Set
Food & Beverage
Full-Time Employment
Global Data Service
Gross Operating Profit
Guest Satisfaction Survey
Guest Satisfaction Tracking System
Human Resources
Management Performance Indicator
Notional Gross Operating Profit
Net Operating Income
Occupancy
Over-Time
Payroll
Property Management System
Per Occupied Room
Point of Sale
2nd Quarter
Room Nights
Revenue
Revenue Per Available Room
Requests for Proposal
Revenue Generation Index
Standard Operating Procedure
Salaries & Wages
Year-to-date