POOLED RENTAL OPERATION CONDOTEL CONCEPT

TOP HOTELS AND RESORTS IN MACTAN

COSTABELLA TROPICAL RESORT HOTELS / RESORTS NUMBER OF ROOMS PEAK SEASON (MARCH-MAY) & OCTOBER HIGH SEASON (JULY- AUGUST) (DEC-JAN) LOW SEASON (FEB /JUNE) (SEPT/ NOV) SHANGRI-LA MACTAN RESORT 530 98% 95% 80% IMPERIAL PALACE 556 100% 85% CRIMSON HOTEL 290 93% 86% 75% PLANTATION BAY 220 91% 84% 72% BLUEWATERS RESORT 158 92% 73% MOVENPICK HOTELS 245 97% 90% 78% COSTABELLA TROPICAL RESORT 156 70% 256 60% AVERAGE 301 74%

AVERAGE PUBLISHED RATE HOTELS / RESORTS DELUXE (STUDIO) SUPERIOR (1BEDROOM) SUITE (2BEDROOM) SHANGRI-LA MACTAN RESORT 16,500 22,500 35,500 IMPERIAL PALACE 12,500 18,500 26,500 CRIMSON HOTEL 13,500 19,500 28,500 PLANTATION BAY 10,500 15,500 20,500 BLUEWATERS RESORT 9,500 MOVENPICK HOTELS COSTABELLA TROPICAL RESORT 7,500

Q3 2017 to Q1 2018 Objective To achieve an occupancy rate of 54% and an average room rate of PHP 4,772 ++ per night In Mactan, this is considered as the most affordable average room rate per night

2017 OCCUPANCY & REVENUE BUDGET (March to June)

2017 OCCUPANCY & REVENUE BUDGET (July to December)

PROJECTED EXPENSES TO BE COVERED BY PROPERTY MANAGEMENT BREAKDOWN OF EXPENSES: 1.) Maintenance (building and amenities) 2.) Salaries and Wages (Personnel, Security) 3.) Equipments 4.) Insurance 5.) Supplies (Furniture and Fixtures) 6.) Food & Beverage 7.) Advertising 8.) TRAVEL AGENCY/AGODA/BOOKING.COM COMMISSION

POOLED RENTAL MANAGEMENT SAMPLE RETURN ON INVESTMENT   SAMPLE RETURN ON INVESTMENT 1st Year of Operations (2018) 60% occupancy TOTAL NUMBER OF ROOMS 200 AVERAGE HOTEL RATE PER NIGHT 4772++ HOTEL OCCUPANCY RATE 60.00% NET SALES PER NIGHT Php572,640.00 No. of Days in a Year 350 Net Sales Per Year Php200,424,000.00 Less: Operating Expenses (70%) Php140,296,800.00 RENTAL POOL INCOME PER YEAR Php60,127,200.00 Total Condotel Area (sample only) 8310.96 Rental Pool Income/Sqm/Month 602.89 Studio Unit Area 36.50 sqm Yearly Income Php264,065.82 Add: 15 Usable days Php71,580.00 YEARLY INCOME PER STUDIO Php335,645.82 MONTHLY INCOME PER STUDIO Php22,005.00 INVESTMENT Php3,200,000.00 RETURN ON INVESTMENT 8.25%

PROJECTED NET INCOME COMPUTATION Based on a conservative average room rate of PHP 4,772 per night with 200 rooms at 60% occupancy rate for 1 month Net Income = Base Profit/sq.m x unit size STUDIO = PHP 22,005 (Php 602.89 x 36.50) 1BR = PHP 28,637 (Php 602.89 x 47.50) 1BR Corner = PHP 36,173 (Php 602.89 x 60.00) 2BR = PHP 57,371 (Php 602.89 x 95.16)

FINANCIAL RATIO ANALYSIS For a Studio with a monthly income of PHP 22,005 on 60% occupancy rate, conservative Return on Investment is at 8.5% per year For Tambuli CONDOTEL Operation, Return on Investment would range from 8% to 19% per year

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