[Mr. Henry Norman] Resort Hotel Development Costs
The following text and file were uploaded by Mr. Henry Norman on the facebook page, Yap’s Development (link). We repost the text and document here.
This file is an article I began to write mainly in order to educate myself at least superficially on the subject of resort hotel construction costs, what kind of revenue such beasts expect in order to make a profit, and most of all, how the land needed for a new resort hotel project is usually acquired and financed.
As time progressed, I realized that this could be of some interest to the People of Yap State, especially those that may contemplate signing a land lease contract with ETG. The article comes with an Excel workbook, so all numbers presented can be re-crunched at will, and verified!
To give you an idea of what is covered, here’s the “Table of Contents”:
• Different Developer/Land Owner Agreement Models
• What Is Inflation?
• Estimating Resort Hotel Development Costs
• How Much Land Is Required For 1,500 Hotel Rooms?
• How to Estimate Hotel Average Daily Room Rate (ADR)
• The “Yap Paradise” Resorts, and ETG Cost of Land
• Revenue, Profits, and Lease (Rent) Payments
• Guide on Excel Workbook Usage
Hundreds of thousands and “millions” and “billions” are concepts very difficult to fully comprehend, and due to the lease terms involved — 99 years — this article overflows with such numbers. Be assured, however, that the numbers presented are REAL — given the base assumptions made, which are actually quite conservative!
Dear Wa’ab Friends and Land Owners: Please do not let ETG take you for that proverbial ride… Surely you have to admit that, if ETG stands to make billions of dollars in profits over the next century, and the very foundation of these profits is the Wa’ab land that you inherited from your ancestors, then surely you are — or SHOULD be — entitled to a sizable part of these hefty profits, and not only a measly few hundred dollars per month…
I would like to have comments on this article, especially by Herr ArchitektDieter Kudler, and by Mr. ETG Representative Gang Yang… The more close to reality the information/data gets, the more valuable its use to Wa’ab Land Owners!
Kam’magar (and kag bul… it is way past my bed time!)