Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

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income and expense illustrates the subject property's net income, which is assumed to increase by 3.0% annually subsequent to the hotel's stabilized year of operation. The following values are assigned to the variable components for the purposes of this valuation. SUMMARY OF KNOWN VARIABLES Annual Net Income NI See Ten-Year Forecast Loan-To-Value Ratio M 65 % Interest Rate i 6.50 % Debt Service Constant f 0.081025 Equity Yield Ye 17.0 % Transaction Costs b 3.0 % Annual Constant Required to Amortize the Loan in Ten Years fp 0.136258 Terminal Capitalization Rate Rr 9.0 % The following table illustrates the present worth of a $1 factor at the 17.0% equity yield rate. PRESENT WORTH OF $1 FACTOR AT THE EQUITY YIELD RATE Year Present Worth of $1 Ending Factor at 17.0% 2012/13 0.854712 2013/14 0.730533 2014/15 0.624395 2015/16 0.533678 2016/17 0.456141 2017/18 0.389869 2018/19 0.333226 2019/20 0.284812 2020/21 0.243432 2021/22 0.208065 February-2011 Explanation of the Simultaneous Valuation Formula Sheraton Hotel Redding At Sundial Bridge – Redding, California ix
Using these known variables, the following intermediary calculations must be made before applying the simultaneous valuation formula. The fraction of the loan paid off during the projection period is calculated as follows. P = ( 0.08102 - 0.0650 ) / ( 0.13626 - 0.0650 ) = 0.224886 The annual debt service is calculated as f x M x V. (f x M x V)= 0.08102 x 0.65 x V = ( 0.05267 )V Inserting the known variables into the hotel valuation formula produces the following. ( 1,065,835 - 0.05267 V ) x 0.8547 + ( 1,519,000 - 0.05267 V ) x 0.73051 + ( 1,475,050 - 0.05267 V ) x 0.62437 + ( 1,730,500 - 0.05267 V ) x 0.53365 + ( 1,784,500 - 0.05267 V ) x 0.45611 + ( 1,841,150 - 0.05267 V ) x 0.38984 + ( 1,898,400 - 0.05267 V ) x 0.3332 + ( 1,958,350 - 0.05267 V ) x 0.28478 + ( 2,020,000 - 0.05267 V ) x 0.2434 + ( 2,083,150 - 0.05267 V ) x 0.20804 + ((( 2,121,662 / 0.090 ) - ( 0.030 x ( 2,121,662 / 0.090 )) - (( 1 - 0.224886 ) x 0.7 x V)) x 0.208037 )= ( 1 - 0.65 )V Like terms are combined as follows. $12,269,201 - 0.350165V = (1 - 0.65)V $12,269,201 = 0.70016V V = $12,269,201 / 0.70016 V = $17,523,301 Total Property Value as Indicated by the Income Capitalization Approach (Say) = $17,500,000 It is important to note that this analysis does not reflect any capital deductions (if applicable). February-2011 Explanation of the Simultaneous Valuation Formula Sheraton Hotel Redding At Sundial Bridge – Redding, California x
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February-2011 SUMMARY APPRAISAL REP
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stabilization. Based on our analysi
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Table of Contents SECTION TITLE PAG
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SUMMARY OF VALUE PARAMETERS Number
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2. Nature of the Assignment Subject
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Objective of the Appraisal an annua
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Exposure Period The hotel is expect
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Competency Scope of Work While mark
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3. Description of the Site and Neig
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Physical Characteristics HOTEL SITE
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SUBJECT SITE RENDERING AND SHARED P
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Turtle Bay Exploration Park The sub
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4. Description of the Proposed Proj
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Summary of the Facilities RENDERING
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Public Areas all signage will adequ
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Guestrooms Back-of-the-House ADA an
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5. Market Area Analysis Market Area
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FIGURE 5-1 ECONOMIC AND DEMOGRAPHIC
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FIGURE 5-2 HISTORICAL AND PROJECTED
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Unemployment Statistics increased u
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Airport Traffic Airport passenger c
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Tourist Attractions Additionally, t
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Conclusion frontage is back to norm
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FIGURE 6-1 HISTORICAL SUPPLY AND DE
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FIGURE 6-2 MONTHLY OCCUPANCY TRENDS
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FIGURE 6-4 COMPETITORS - OPERATING
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FIGURE 6-5 NEW SUPPLY DEMAND Propos
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FIGURE 6-8 AVERAGE ANNUAL COMPOUNDE
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7. Projection of Occupancy and Aver
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occupancy rate has been positioned
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Competitive Position calculated by
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FIGURE 7-6 MARKET AND SUBJECT PROPE
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8. Highest and Best Use As if Vacan
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9. Approaches to Value Income Capit
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10. Income Capitalization Approach
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FIGURE 10-1 COMPARABLE OPERATING ST
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FIGURE 10-3 COMPARABLE OPERATING ST
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FIGURE 10-4 DETAILED FORECAST OF IN
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Forecast of Income and Expense The
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available room. We expect the propo
Page 81 and 82: INCOME CAPITALIZATION Mortgage Comp
Page 83 and 84: Equity Component & Equity Yield Rat
Page 85 and 86: Terminal Capitalization Rate 20% fo
Page 87 and 88: Mathematical Proof of Value The val
Page 89 and 90: Our debt coverage ratio falls withi
Page 91 and 92: Derived Capitalization Rates FIGURE
Page 93 and 94: Discounted Cash Flow Analysis - “
Page 95 and 96: Discounted Cash Flow Analysis - “
Page 97 and 98: 11. Sales Comparison Approach Compa
Page 99 and 100: FIGURE 11-2 SUMMARY OF SELECTED COM
Page 101 and 102: Sale#2 Sheraton Delfina Santa Monic
Page 103 and 104: Sale#4 Holiday Inn Laguna Hills Lag
Page 105 and 106: Conclusion the subject’s leasehol
Page 107 and 108: FIGURE 12-1 SUBJECT PROPERTY CONSTR
Page 109 and 110: FIGURE 12-2 SUMMARY OF HOTEL GROUND
Page 111 and 112: FIGURE 12-4 DISCOUNTED CASH FLOW AN
Page 113 and 114: Pre-Opening and Working Capital Cos
Page 115 and 116: 13. Reconciliation of Value Indicat
Page 117 and 118: yet, in fact, exist as of the date
Page 119 and 120: 9. The Americans with Disabilities
Page 121 and 122: proposed project and/or the market
Page 123 and 124: of Professional Ethics and the Stan
Page 125 and 126: calculating the hotel’s market sh
Page 127 and 128: COMMERCIAL SEGMENT PROJECTIONS (YEA
Page 129 and 130: NI = Net income available for debt
Page 131: NI 1 - (f x M x V) = de 1 NI 2 - (f
Page 135 and 136: Page 2 Suzanne R Mellen 01/10/2011
Page 137 and 138: Page 4 Suzanne R Mellen 01/10/2011
Page 139: Addenda Requirements - certificatio
Page 143 and 144: EXAMPLES OF CORPORATE AND INSTITUTI
Page 145 and 146: Elaine Sahlins EMPLOYMENT 1997 - pr
Page 149 and 150: EXAMPLES OF PROPERTIES APPRAISED OR
Page 159 and 160: PROFESSIONAL AFFILIATIONS EDUCATION
Page 161 and 162: APPEARANCE AS AN EXPERT WITNESS, CO
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EXAMPLES OF PROPERTIES APPRAISED OR
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