Group 15.1 - The Elysium, Calgary (Feasibility Analysis

Key Decisions

Financials

Financials & Calculations

Pre-Opening Analysis

Hotel Functioning

Pre-Opening Analysis

Hotel Functioning

Assumptions

Competition Analysis

Construction and Investment

Supply and Demand Analysis

Pricing

Rooms Department

Human Resources

Food and Beverage

Key Decisions

Scarboro

West Connaught

Connaught Center

Victoria Crossing center

Key DecisionsArea Quantitative

Analysis

Key Lodging Demand Generators Include:Airports, Amusement parks, Association headquarters, casinos, colleges & universities, companies & businesses, convinient highway stopping points, convention centers, court houses, festival sites, hospitals, offices & industrial parks, national or state parks, racetracks, shopping malls, sport stadiums, theaters, tourist attractions, world and state fairs.

Area Quantitative Analysis

Downtown 2,592 3,231

Total/ Average 2,592 3,231

Airport 1,895 3109

Total 1,895 3,109

7267 7387

Total 7267 7387AVERAGE

Area Decision Matrix10% 10

Airport 1-10km away 100Downtown 10-20km away 75

20-30km away 50Suburb 30-40km away 25

10% 10

Key Market Areas

Costumer Mix/ Demand

Generators

Total Room Supply 2013

Proposed Room Supply

by 2018

70 % Business (financial &

business center) 30% Leisure

travelers attending the

numerous fairs such as the

Stampede and enjoying well

located accomodations.

Segments provided by the airport traffic:

Transient guests, Business

guests (early departure/late

night arrival, day use)

North Western & Southern Suburbs

Leisure guests, transient guests travelling by car

towards the Rockies,

Edmonton or using the

Canamex Road, Trans Canada

Highway

Total Points per Category

Proximity to an International

Airport

Room Supply 2013

Victoria Crossing center

Chinatown


Claculated from the STR fileAlix Waldis:CANADIAN MONTHLY LODGING OUTLOOK – FEBRUARY 2013, HVS

Suburb - Airport 0-2000 1002000-4000 804000-6000 606000-8000 40

Downtown 8000 and over 20

Proposed Supply

10% 10Suburb 0-500 100Downtown 500-1000 80Airport 1000-2000 60

2000-3000 403000 and higher 20

Occupancy %

20% 20Airport highest 100Downtown medium 60Suburb lowest 20

ADR

20% 20Downtown 15%<average 100

10%<average 805%<average 605%>average 40

Airport 10%>average 20Suburb 15%>average 0

RevPAR

20% 20Downtown highest 100Airport medium 60Suburb lowest 20

Cost of Land

10% 10Suburb lowest price 100Airport moderate price 60Downtown Highest Price 20

Total Points

Calgary Area Comparison

Room Supply 2013

Calgary Area Comparison

Area Overview (Environmental Analysis)

Transportation & Roads (Location Analysis)

Companies in the Area (Potential Customer Analysis)

Hotels in the Area (Potential Competitor Analysis)

Proposed Supply

Other (Extra Benefits)

Other (Extra Benefits)

Snapshot Hotels in the Area

Key Decisions

Where in Calgary?

AirportWhere in Calgary Center?

Suburb

Sunalta

Stampede Park

Eau Claire

East Victoria Crossing

Block from the Light Rail Transit


Calgary Districts KPIsAdditions to Calgary

Hotel Supply



RevPAR 2012

69.60% 218.04 151.91 400 to 600

69.60% 218 152 500

73.40% 136.74 100.35 200 to 400

73.40% 137 100 300

68.85% 124.045 85.135 150 to 200

68.85% 124 85 20071% 160 112 333

Downtown Airport Suburb

7.5 10 2.5

75 100 25

2 10 10

Occuapancy % 2012

ADR 2012 (CAD)

Land Prices (CAD per sqm)

Eau Claire

East Village


Claculated from the STR fileAlix Waldis:CANADIAN MONTHLY LODGING OUTLOOK – FEBRUARY 2013, HVS

20 100 100

8 6 10

80 60 100

12 20 4

60 100 20

20 4 0

100 20 0

20 12 4

100 60 20

2 6 10

20 60 100

71.5 68 40.5

Downtown

Downtown

3,231

Over 3'000 shops and businesses only in Downtown from which over 100 are head offices /Calgary Downtown is Western Canada's business centre /hometown of the well-known Stampede / All Calgary's museums are located a stroll away / the Saddledome

built for the Olympics also hosts various gigantesc events / head quarters of Scotia Bank, RBC, National Treasury Branch

50 million people accessible by ground transportation within 24 hours via major ground traffic generators: Canadian Pacific Railway & National Canadian Railway /Highway 1 /

Intersection of the TransCanadian Railway and the Crowchild Trail (leading to Banf National Park and the Rockies)

Mainly Gas & Energy related companies (Calgary will by 2025 produce over 5% of the global oil production): Suncor Energy Inc., Enbridge Inc. Head offices and the largest

part of business center is located in Downtown: Imperial Oil Ltd. Canadian Natural Resources Ltd.

Sheraton Suites Eau Claire, The Westin Calgary, International Hotel Suites Calgary, Delta Bow Valley, Calgary Marriot Downtown Hotel, Hotel le Germain Calgary, The Fairmont Palliser, Ramada Hotel Downtown Calgary, Sandman Hotel Calgary City

Center, Holiday Inn Express Calgary, NUVO Hotel Suites, Best Western Plus Suites Downtown Calgary, Hotel Arts, Kensington Riverside Inn, Hyatt Regency Calgary,

Regency Suites Hotel, N. Hotel Elan

Free transportation within Downtown with the C-Train / between 5'000 and 10'000 people walk between the 4th and 6th avenue at peak times / 17th avenue, the busiest

area in Calgary with over 400 shops & businesses

Free transportation within Downtown with the C-Train / between 5'000 and 10'000 people walk between the 4th and 6th avenue at peak times / 17th avenue, the busiest

area in Calgary with over 400 shops & businesses

Key Decisions

Airport

Downtown

Block from the Light Rail Transit

TELUS convention center & many other

meeting venues

CORE Shopping center

West Downtown

Area Decision MatrixAdditions to Calgary

Hotel Supply

Calgary Districts KPIs

Occupancy Percentages by Area in Calgary

2010 2011

Downtown 67.10% 69.80%Airport 66.80% 66.30%Suburb 61.40% 63.15%Average 65.10% 66.42%Source: http://www.visitcalgary.com/industry-members/research/annual-reports

ADR by Area in Calgary in Canadian Dollars

2010 2011

Downtown 185 196 Airport 128 128 Suburb 110 112 Average 141 145 Source: http://www.visitcalgary.com/industry-members/research/annual-reports

RevPAR by Area in Calgary in Canadian Dollars

2010 2011

Downtown 124 137 Airport 85.76 85 Suburb 67 71 Average 92 97

The ElysiumOn the intersection of 8th Avenue and 9th St. SW, opposite the Holiday Inn

Suites.

Source: http://www.visitcalgary.com/industry-members/research/annual-reports

Additions to Calgary Hotel SupplyDowntown Additions to Hotel Supply

Proposed PropertyFairfield Inn & Suites Downtown

Renaissance Clubsport DowntownHillton Garden Inn DowntownHomewood Suites Downtown

Residence Inn Beltline DowntownTotal

Source: STR doc provided by the Director of the Project

Airport Additions to Hotel SupplyProposed Property

Homewood Suites AirportCambria Suites Airport

Holiday Inn & Suites AirportPark Inn By Radisson Airport

Hilton Calgary AirportElement Calgary Airport South

Total

Airport South

Airport South

Agrium Inc., Sysco Canada, Inc., Enmax Corp.

3109 7387

Lowest land costs

Western Canadian Distribution Hub / Most expanding neighbourhood in Calgary, mostly due to the airport expansion project / residential area family-friendly

Glenmore Trail (= Highway 8 going from East to West of Alberta) / Deerfoot Trail (=Highway 2 part of the Canamex road) / Crowchild Trail (leading to Banf National Park and

the Rockies)

In addition to the traffic due to ground transportation, Trans Canada Highway (from East to West of Canada),

Calgary International Airport has connections to 100 destinations and produces a flow of over 12 millions of

travelers per year


the Rockies)

International Airport of Calgary with an average of 33'000 daily passengers, Canada's 4th busiest airport with an expansion project ment to open on April 2015. Head offices: WestJet Airlines Ltd. Canada Safeway

Ltd.

Residence Inn Calgary, Courtyard Calgary Airport, Best Western Premier Airport, Hampton Inn & Suites by Hillton, Four Points by Sheraton, Hillton Garden Inn

Carriage House Inn, Sandman South, Holiday Inn Hotel Express & Suites, Delta Calgary South

Expansion of the International Airport of Calgary currently under construction (meant to open by 2015).

Lowest land costsExpansion of the International Airport of Calgary

currently under construction (meant to open by 2015).

Key Decisions

CORE Shopping center

Area Decision MatrixCalgary Area Comparison

Overall value Index

Room Supply by Sector in Calgary

Calgary Districts KPIs

Occupancy Percentages by Area in Calgary

Var 2012 Var 2013

3.60% 73.40% -3.80% 69.60%4.60% 70.90% 2.50% 73.40%5.10% 68.25% 0.60% 68.85%4.43% 70.85% -0.23% 70.62%


ADR by Area in Calgary in Canadian Dollars

Var 2012 Var 2013

8% 211 3% 218 4% 133 3% 137 7% 120 3% 124 6% 155 3% 160


RevPAR by Area in Calgary in Canadian Dollars

Var 2012 Var 2013

13% 155.0 -2% 152 11% 94.2 7% 100 16% 82.0 4% 85 13% 110.4 2% 113


Additions to Calgary Hotel SupplyDowntown Additions to Hotel Supply

Number of Rooms Opening Date Development Stage124 June 2014 Under Construction200 July 2015 Final Planning198 August 2015 Final Planning117 August 2015 Final Planning360 April 2016 Final Planning999

Source: STR doc provided by the Director of the Project

Airport Additions to Hotel SupplyNumber of Rooms Opening Date Development Stage

122 March 2014 Under Construction105 October 2014 Final Planning120 December 2014 Planning228 December 2015 Final Planning252 January 2016 Final Planning132 July 2016 Final Planning959

South North west

SouthSouth North west

Agrium Inc., Sysco Canada, Inc., Enmax Corp. SMART Technologies Inc., University of Calgary

7387 794

Lowest land costs Nearest location from Banff & the Rockies


the Rockies)

Crowchild Trail (leading to Banf National Park and the Rockies) / Stoney Trail (Highway surrounding Calgary)


the Rockies)


Carriage House Inn, Sandman South, Holiday Inn Hotel Express & Suites, Delta Calgary South

Sandman, Marriott Courtyard, Best Western Hotel, Sheraton Cavalier Calgary Hotel, Hampton Inn & Suites by Hillton

This area is expected to have the fastest growth pace in the coming years due to the expansion of the airport by around 20 of its current capacity (YYY, 2011).

Lowest land costsLowest land costs Nearest location from Banff & the Rockies


Downtown Room Supply

North west References

North west References

Google Maps

SMART Technologies Inc., University of Calgary

794

Nearest location from Banff & the Rockies



Only the companies with a minimal revenue of 3 millions have been

selected

Sandman, Marriott Courtyard, Best Western Hotel, Sheraton Cavalier Calgary Hotel, Hampton Inn & Suites by Hillton

Hotels have been retrieved from TripAdvisor and googlemap.com

Supplies have been calculated based on the STR document

http://www.calgaryeconomicdevelopment.com/sites/default/files/pdf/company-lists/Website_Version_-_FP_Top_Calgary_Companies_%282013%29_branded.pdf

Nearest location from Banff & the Rockies

Overall value index

Downtown

Environmental Analysis (20pts) 11

Environmental Analysis (20pts) 11

Location Analysis (10pts) 4

Potential Customer Analysis (25pts) 13

Potential Competitor Analysis (15pts) 2

Proposed Supply (25pts) 4

Extra Benefits (5pts) 2

Investment Result 36


2010Downtown 2,530Aiport 1,470Suburb 7267

Total Room Supply 11,267


Current Hotel Property Number of Rooms

Westin Calgary 525Sheraton Hotel Suites Calgary Eau Claire 323Ascend Collection Hotel Elan 62International Hotel 248Regency Suites Hotel Calgary 129Holiday Inn Express & Suites Calgary 56Sandman Calgary Downtown 301Best Western Plus Suites Downtown 124

Best Western Premier Freeport Inn & Suites joined the portfolio in February 2011

Courtyard Calgary Airport & Residence Inn Calgary Airport joined the portfolio during 2012

NUVO Hotel Suites 32Ramada Hotel Downtown Calgary 200Delta Bow Hotel 394

Total Current Room Supply 2394Proposed Hotel Property

Hillton Garden Inn Downtown 198Renaissance Clubsport Downtown 200Fairfield Inn & Suites Downtown 124Homewood Suites Downtown 117Residence Inn Beltline Downtown 360

Total Proposed Room Supply 999

Overall value index

Downtown Airport South North-West

11 7 0 2

1111 7 0 2

4 4 1 1

13 9 1 2

2 3 5 4

4 6 8 7

2 3 0 0

36 32 15 16


% of Total 2011 % of Total 2012 % of Total 201322.45% 2,530 22.26% 2,530 21.64% 2,59213.05% 1,567 13.79% 1,895 16.21% 1,89564.50% 7267 63.95% 7267 62.15% 7267

100.00% 11,364 100.00% 11,692 100.00% 11,754


Number of Rooms % of Total Stars

525 21.93% 5*323 13.49% 5*62 2.59% 4*

248 10.36% 4*129 5.39% 4*56 2.34% 3*

301 12.57% 4*124 5.18% 4*

Hotel Elan joined the portfolio during 2013Best Western Premier Freeport Inn & Suites

joined the portfolio in February 2011Courtyard Calgary Airport & Residence Inn Calgary Airport joined the portfolio during 2012

32 1.34% 4*200 8.35% 3*394 16.46% 3*2394 100.00%

198 19.82% 4*200 20.02% 5*124 12.41% 4*117 11.71% 4*360 36.04% 4*999 100.00%

Overall value index

North-West

2

22

1

2

4

7

0

16


% of Total22.05%16.12%61.83%

100.00%

Basic AssumptionsCurrency - Canadian Dollar CAD 1.00Average Inflation Rate 2014 - 2018 2.11%Average GDP Growth Rate 2014 - 2018 2.33%Days per Year 2015 - 2018 365Days per Year 2014 360Days per Month 2014 30Exchange Rate USD/CAD CAD 1.04

Accounting Assumptions in CanadaAccounts Receivable Payment Delay (Days) 30Accounts Payable Payment Delay (Days) 45Inventory Turnover (Days) 7Income Tax Rate 17.52%Income Tax Payment Delay (Days) 10Social Charges Contribution Delay (Days) 90Wifi, Telephone & Satelite TV Payment Delay 30Laundry, Dry Cleaning Payment Delay 30IT Outsourcing Payment Delay 45Dividends Payment Delay 365Property Taxes & Insurance 356Other Fixed Charges 45Dividends 11%

Basic AssumptionsAccounting

Assumptions in Canada

avisingh:Source: On 29 October 2013, 1.00 U.S. dollar(s) = 1.04 Canadian Dollar(s), at an exchange rate of 1.0445 (using nominal rate). http://www.bankofcanada.ca/

Information of estimated Payment Delays received from Mr. Micheal Bitcom, Director of Food and Beverage for The Westin Calgary.

Opening Balance SheetCurrent Assets 2014Cash 801,654 Accounts Receivables - Inventory -

Total Current Assets 801,654 Fixed AssetsLand 10,764,000 Building 58,653,447 Furniture & Equipment 10,466,970

Total Fixed Assets 79,884,418 Total Assets 80,686,072

LiabilitiesAccounts Payable - Accrued Expenses - Dividends Payable - Taxes Payable - Long Term Loan 52,445,946

Total Liabilities 52,445,946 EquityShare Capital 28,240,125 Retained Earnings -

Total Equity 28,240,125 Total Liabilities & Equity 80,686,072

Capital Structure

Captial Structure AssumptionsDebt to Equity Ratio 65%Equity 35%Debt 65%Total 100%

Estimate Cost of Capital BetweenDebt 4%Equity 11%

We assume opening cash balance to be equal to the working capital.

After a conversation with Mr. JT Dhoot, Senior Analyst for Superior Lodging Corp. he told us the following information to calculate our WACC: "For your project, you can assume a 65% debt and 35% equity ratio. The cost of debt for pojects simmilar to yours is generally between 4% - 5% in canada."

We Assume a cost of equity to be 11.33% in accordance with the Hotel/Gaming industry average given by Mr. Aswath Damodar (Stern Scool of Business, NYU).

http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html

Domestic HNWIWACC 6.4%E/V 35.00%Cost of Equity 11.33%D/V 65.00%Cost of Debt 4.50%1 - Tax Rate 0.82

Cost of CapitalCost of Equity 11%Cost of Debt 4.5%

LTL CalculationLoan Initial Balance

Initial Balance CAD 52,445,946.50 2013 CAD 50,774,171.94 2014 CAD 49,027,167.52 2015 CAD 47,201,547.91 2016 CAD 45,293,775.41 2017 CAD 43,300,153.15 2018 CAD 41,216,817.89 2019 CAD 39,039,732.55 2020 CAD 36,764,678.36 2021 CAD 34,387,246.73 2022 CAD 31,902,830.68 2023 CAD 29,306,615.91 2024 CAD 26,593,571.48 2025 CAD 23,758,440.04 2026 CAD 20,795,727.69 2027 CAD 17,699,693.28 2028 CAD 14,464,337.33 2029 CAD 11,083,390.36 2030 CAD 7,550,300.77 2031 CAD 3,858,222.16 2032 CAD -0.00

avisingh:

Cost of Capital

Accounting Assumptions in

Canada

Opening Balance Sheet

Capital structure Cost of Cappital

avisingh:Source: On 29 October 2013, 1.00 U.S. dollar(s) = 1.04 Canadian Dollar(s), at an exchange rate of 1.0445 (using nominal rate). http://www.bankofcanada.ca/


Capital Structure

Captial Structure Assumptions

28,240,125.04 52,445,946.50

80,686,072

Average5% 4.5%

We assume opening cash balance to be equal to the working capital.

Cost of Capital

20 year Loan

LTL CalculationInterest Expense Reinbursment Annuity

CAD 2,360,067.59 CAD 1,671,774.56 CAD 4,031,842.15 CAD 2,284,837.74 CAD 1,747,004.41 CAD 4,031,842.15 CAD 2,206,222.54 CAD 1,825,619.61 CAD 4,031,842.15 CAD 2,124,069.66 CAD 1,907,772.50 CAD 4,031,842.15 CAD 2,038,219.89 CAD 1,993,622.26 CAD 4,031,842.15 CAD 1,948,506.89 CAD 2,083,335.26 CAD 4,031,842.15 CAD 1,854,756.81 CAD 2,177,085.35 CAD 4,031,842.15 CAD 1,756,787.96 CAD 2,275,054.19 CAD 4,031,842.15 CAD 1,654,410.53 CAD 2,377,431.63 CAD 4,031,842.15 CAD 1,547,426.10 CAD 2,484,416.05 CAD 4,031,842.15 CAD 1,435,627.38 CAD 2,596,214.77 CAD 4,031,842.15 CAD 1,318,797.72 CAD 2,713,044.44 CAD 4,031,842.15 CAD 1,196,710.72 CAD 2,835,131.44 CAD 4,031,842.15 CAD 1,069,129.80 CAD 2,962,712.35 CAD 4,031,842.15

CAD 935,807.75 CAD 3,096,034.41 CAD 4,031,842.15 CAD 796,486.20 CAD 3,235,355.95 CAD 4,031,842.15 CAD 650,895.18 CAD 3,380,946.97 CAD 4,031,842.15 CAD 498,752.57 CAD 3,533,089.59 CAD 4,031,842.15 CAD 339,763.53 CAD 3,692,078.62 CAD 4,031,842.15 CAD 173,620.00 CAD 3,858,222.16 CAD 4,031,842.15

CAD -0.00 CAD 4,031,842.15 CAD 4,031,842.15

avisingh:

avisingh:We have assumed a 20 year loan due to the high cost of construction in Canada.

Cost of Cappital LTL calculation

Qualitative Analysis

Competitive Set

Hotel Elan

Holiday Inn Express & Suites Calgary

Sandman Calgary Downtown

Ramada Hotel Downtown Calgary


Source of information

Analysis of Facilities

Hotel Elan




Analysis of Services

Hotel Elan





Overall Value Index of Competition

Property

Weighted average

Hotel Elan




Reference

Quantitative Analysis

Hotel ElanHoliday Inn Express & Suites CalgarySandman Calgary DowntownRamada Hotel Calgary Downtown

TOTAL

Rate Analysis of CompetitionStandard / Cheapest room

BAR, 1 night, 1 person, excluding breakfast

Hotel ElanHoliday Inn Express & Suites CalgarySandman Calgary DowntownRamada Hotel Downtown CalgaryThe ElysiumAverage

Deluxe RoomBAR, 1 night, 1 person, excluding breakfast

Hotel Elan

January February March April Mai June July August September October November December0

50

100

150

200

250

300

350

400

450

Hotel Elan




Average

Holiday Inn Express & Suites CalgarySandman Calgary DowntownRamada Hotel Downtown CalgaryThe ElysiumAverage

SuitesBAR, 1 night, 1 person, excluding breakfast

Hotel ElanHoliday Inn Express & Suites CalgarySandman Calgary DowntownRamada Hotel Downtown CalgaryThe ElysiumAverage

Lowest rate vs. Value Index

Hotel Elan



50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


Ramada Hotel Calgary Downtown

The Elysium

Average


Location # Rooms

1122, 16th Avenue 62

1020, 8th Avenue 56

888, 7th Avenue 301

708, 8th Avenue 200

Qualitative AnalysisAnalysis of Facilities

Analysis of ServicesOverall Value Index

of Competition

Hotel Website Trip Advisor & Hotel Website

Analysis of FacilitiesRestaurant(s) Bar

0 0

Breakfast room only, complimentary buffet Not provided

1 0

Breakfast room only, complimentary buffet Not provided

1 1

On-site dining facilities Catering Partner

2 2

North American and Mexican Specialties Irish pub, small catering

Analysis of ServicesExpress Checkin-Checkout 24h Front Desk

0 1

Not provided Provided

2 0

Provided Not provided

2 1

Provided Provided

1 1

Express Check-out only Provided


Rating Distance from Crowchild Trail

0% 15%

0 1

3 AAA 2.3 km / 5min

0 3

3 AAA 1.3 km / 3 min

0 2


0 4


Rating out of 5

Based on hotel's website Based on Google Maps

Quantitative AnalysisRooms 2012 Occ %

62 73.00%

56 68.00%

301 74.00%

200 79.00%

Average Occupancy of the entire

619 73.50%

Rate Analysis of CompetitionStandard / Cheapest room

BAR, 1 night, 1 person, excluding breakfastJanuary

Weekday Weekend269 219164 119189 119179 132190 140

198.2 145.8

Deluxe RoomBAR, 1 night, 1 person, excluding breakfast

JanuaryWeekday Weekend

349 259


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

Total Rooms Competitors


169 129219 179209 137210 200

236.5 176

SuitesBAR, 1 night, 1 person, excluding breakfast

JanuaryWeekday Weekend

429 349179 132229 189

300 240284 228

Average price of this category in CAD Overall Value Index

$244.00 3.03

$152.75 2.93


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


Alix Waldis:Ramada Hotel offers only standard and executive rooms.

$174.83 3.015 $183.08 3.19 $197.46

$188.67



Rooms Breakdown Rating

62 Suites 3 AAA

16 Suites / 40 Double Rooms 3 AAA

301 Rooms 3 AAA

200 executive and standard rooms 3 AAA


Quantitative Analysis

Google Hotel Finder

Analysis of FacilitiesBusiness Center

1 1

3 small meeting rooms & 1 catering room

0 1

Not provided

1 1

Banquet & Meeting Facilities Assistance for meeting

1 1

Banquet & Meeting Facilities

Analysis of ServicesRoom Service Wi-FI

0 1

Only breakfast available Free WiFi

0 1

Only breakfast available Free WiFi

1 2

Provided Free High Speed

1 1

According to Trip Advisor (review categories)

ConferenceMeeting rooms

Provided Free WiFi


5% 5%

1 1

Ranked #8 (*out of 97 in Millbrae) 89%

3 3


2 2


4 4


Rating out of 4 Rating out of 5

Based on Trip Advisor rating Based on Trip Advisor Rating

Quantitative AnalysisRooms sold Theoretical Market Share

45 10%

38 9%

223 49%

158 32%

Ranking out of 97 hotels on TripAdvisor

% customers rated hotel as Very Good or Excellent


464

Rate Analysis of Competition

FebruaryWeekday Weekend

269 219164 119179 119199 127210 130

204.2 142.8


349 259


50

100

150

200

250

300

350

400

450

Hotel Elan




Average


169 129209 179229 137230 200239 176


429 349199 127249 199

300 240294 229

Deluxe rate vs. Value Index

Hotel Elan



50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average




The Elysium

Average


Affiliation In room facilities

Independent

Intercontinental

Sandman (Canadian Brand)

Wyndham

Seeting areaErgonomic chairs & lamp

FridgeMicrowaveHair Dryer

Coffe-Maker Iron/Ironing board Private Balcony

Hair DryerCoffe-Maker

SafeDaily News paper, small kitchen

Hair Dryer, Ergonomic chair and desk lampCoffe-Maker

Iron/Ironing board


Iron/Ironing boardDaily News paper


Rates from Hotel's own Website. See Tab Rates analysis for methodology

Analysis of FacilitiesFitness Pool

2 0

modern layout, nice view Not provided

1 0

Health & Fitness Not provided

1 1

Cardio & treadmills Indoor Pool

1 1

Very limited Roof-top pool

Analysis of ServicesLoyalty program Free Shuttle

2 0

Not Provided

2 0

Not Provided

2 0

Not Provided

1 0

Loyalty program but with restricted room offer Not Provided


Room Rating out of 5 Cleanliness TripAdvisor out of 5

5% 5%

4 4

5 4

3 3

4 3

2 3

4 3

1 3

3 3


Based on Trip Advisor Based on Trip Advisor

Quantitative AnalysisActual Market Share Penetration Rate

10% 97%

8% 91%

48% 99%

34% 105%


MarchWeekday Weekend

269 219164 119199 119199 134210 140

208.2 146.2


349 259


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

179 139229 179229 167240 210

246.5 186


429 349199 134279 199

320 240307 231


$304.00 3.03

$175.67 2.93


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


$207.33 3.015 $209.50 3.19 $237.92

$224.13


In room facilities Features

Private meeting room for each suite, heated parking space, fitness, breakfast room

Breakfast room, business center,

Seeting areaErgonomic chairs & lamp

FridgeMicrowaveHair Dryer

Coffe-Maker Iron/Ironing board Private Balcony


SafeDaily News paper, small kitchen

Hair Dryer, Ergonomic chair and desk lampCoffe-Maker

Iron/Ironing board

On-site diningBusiness Center

Whirlpool / Swimming PoolParking

Fitness facilityMeeting Room


Iron/Ironing boardDaily News paper

Exercise RoomCoin Laundry available

Outdoor Pool

Rates from Hotel's own Website. See Tab Rates analysis for methodology Hotel Website, Trip Advisor, Booking.com

Analysis of FacilitiesSuites Overall design of facilities

1 1

Modern, boutique style

1 0

Basic and old-fashioned

1

Modern but with standard facilities

0

Standard & Executive Rooms Functional, traditional design

Analysis of ServicesConcierge Service Parking

1 1

Provided 18$ per day

0 2

Not Provided Available

0 1

Not Provided Extra Fee

0 1

Not Provided 18$ per day


Sleeping Quality General rating TripAdvisor

5% 5%

4 4

4 4

2.5 3.5

2.5 3.5

2.5 4

2.5 4

2.5 3.5

2.5 3.5


Based on TripAdvisorBased on Trip Advisor

As suggested by Mrs. Tavares during the Lodging Performance class, the occupancy percentage has been calculated according to each property's Value Index Scoring and matched to an average occupancy of 73.5% in Calgary Downtown in year 2012 (Visitcalgary.com). Following the scoring, hotels with high Value Index have been estimated to have an occupancy above the average while the lower scoring properties have an occupancy lower than the average.


AprilWeekday Weekend

269 219164 119179 129219 134229 140212 148.2


349 259



50

100

150

200

250

300

350

400

450

Hotel Elan




Average

199 139209 169249 169290 210

251.5 184


429 349219 134279 189

320 280312 238

Rate of Suites vs. Value Index

Hotel Elan



50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average




The Elysium

Average


Features Services

Private meeting room for each suite, heated parking space, fitness, breakfast room

Breakfast room, business center, Laundry service, on-site self laundry

Complimentary High Speed WiFiComplimentary Calls in North America

On-site diningBusiness Center

Whirlpool / Swimming PoolParking

Fitness facilityMeeting Room

Wake up call24H Business Center

Room Service24H Call Reservation Center

24H Front Desk Guest Services

Exercise RoomCoin Laundry available

Outdoor Pool

Room ServiceValet ParkingWake up Calls

Mail and Postier ServicesExpress Check-out

24H Front Desk Guest ServicesBell Services

Baby-sitting services

Hotel Website, Trip Advisor, Booking.com

Analysis of FacilitiesTotal Score of 8 Rating 1-5

6 4

4 3

7 4

8 5

Functional, traditional design

Analysis of ServicesLaundry Services Total Score

0 6

2 9

0 9

Not Provided

1 7

Provided


General Rating Booking.com Overall Rating Services

5% 25%

4.6 3

4.6

4.1 2.5

4.1

3.8 3

3.8

3.8 1

3.8


Based on Booking.comResults from analysis of Services (see above)



MaiWeekday Weekend

269 219169 119179 129219 149240 160

215.2 155.2

MaiWeekday Weekend

349 259



50

100

150

200

250

300

350

400

450

Hotel Elan




Average

199 139209 169249 169290 210

251.5 184

MaiWeekday Weekend

429 349219 149279 189

340 280317 242


$389.00 3.03

$190.58 2.93


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


$211.92 3.015 $- 3.19

$299.17

$197.88


Services

Laundry service, on-site self laundry

Complimentary High Speed WiFiComplimentary Calls in North America

Wake up call24H Business Center

Room Service24H Call Reservation Center

24H Front Desk Guest Services

Room ServiceValet ParkingWake up Calls

Mail and Postier ServicesExpress Check-out

24H Front Desk Guest ServicesBell Services

Baby-sitting services

Hotel Website, Trip Advisor, Booking.com

References Self analysis based on the hotels' website

Legend

Analysis of ServicesRating 1 - 5

3

2.5

3

References Analysis based on the hotels' website

1Legend

0 = Not provided1= Provided but average (with justification)2= Over the average (with the justification)

0 = Not provided1= Provided but average (with

justification)2= Over the average (with the

justification)

Legend

Overall Value Index of CompetitionVALUE INDEX

25%Weighted points

43.03

32.93

43.015

53.19

Legend

Rating out of 5

0 = Not provided1= Provided but average (with

justification)2= Over the average (with the

justification)

Overall Rating Facilities

Green number = Results Red Number = Rating of result. 1-5

Results from analysis of Facilities (see above)


June July AugustWeekday Weekend Weekday Weekend Weekday

269 219 269 219 269169 119 279 279 159209 119 399 399 199237 149 299 299 219250 160 340 340 230

226.8 153.2 317.2 307.2 215.2


349 259 349 259 349


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

209 149 289 289 209239 149 409 409 219257 169 309 309 309280 210 370 370 280

263.5 181.5 339 316.5 271.5


429 349 429 349 429237 149 349 349 299269 169 419 419 199

340 290 380 380 340319 239 394 374 317


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


Green number = Results Red Number = Rating of result. 1-5


August SeptemberWeekend Weekday Weekend

219 269 219119 169 119119 199 119149 219 149160 230 160

153.2 217.2 153.2


259 349 259


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

149 209 149149 219 149169 239 169210 240 200

181.5 254 181.5


349 429 349149 219 149119 199 119

290 320 260227 292 219


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average



October November DecemberWeekday Weekend Weekday Weekend Weekday Weekend

269 219 269 219 269 219169 119 169 119 149 109199 119 189 109 169 109219 149 179 139 179 118220 160 200 160 200 140

215.2 153.2 201.2 149.2 193.2 139


349 259 349 259 349 259


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

209 149 169 149 169 129219 149 209 149 209 149229 169 229 169 209 149240 200 210 200 210 200

251.5 181.5 239 181.5 234 171.5


429 349 429 349 429 349219 149 179 139 179 118199 119 189 109 169 109

320 280 320 240 320 240292 224 279 209 274 204


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average



AVERAGE

244153175183197190

AVERAGE

304


50

100

150

200

250

300

350

400

450

Hotel Elan




Average

176207210238224

AVERAGE

389191212

299273


50

100

150

200

250

300

350

400

450

Hotel Elan




The Elysium

Average


Land Choice of Downtown Calgary

Area Overview

The Elysium Downtown Calgary Total Size Projection

Room types Rooms

Transportation & Roads (Location Analysis)

Over 3'000 shops and businesses only in Downtown from which over 100 are head officse and Western

Canada's business centre / Stampede / All museums are

located in this area / Saddledome

Canadian Pacific Railway & National Canadian

Railway /Highway 1 / 50 million people accessible by ground transportation within 24 hours / Intersection of the TransCanadian Railway and the Crowchild Trail (leading to Banf National Park and

the Rockies)

Land Choice of Downtown Calgary Total Size Projection

Double Queen Room 40

Single King Room 100

Princess Suite 9

Grand Presidential Suite 1

Total 150

Restaurant & Bar Seats

Restaurant 100

Bar 30

Total 130

Banqueting Meeting Rooms

Grand Hall 1

Calgary Hall 1

Total (Grand Calgary Hall) 2

Common Areas Areas

Gym 1

Pool and pool area 1

Business Centre 1

Lobby 1

Total 4

Back of House Areas Guest Areas 12,071.30 Administrative AreasBack of the House CorridorsGeneral StorageEngineers Office & MaintenanceEquipmnet RoomsMechanical/Electrical RoomsF&B StorageEmployee Facilities

The adjustable wall between the two halls makes it possible to merge them together

The Estimated costs for construction were provided by Mr. JT Dhoot, Senior Analyst for Superior Lodging Corp. Calgary. The estimate are based on knowledge of the historical development costs of comprarable projects and information related to planned project costs provided by well- known hotel brands. These are broad estimates should not be relied upon as anything other than an indication of the potential development cost. Further analysis will have to be done with qualified quantity surveyors and cost engineers.

Estimated costs for construction is CAD 250 per sqft.(JT Dhoot)

LaundryParking Back of the House Area 5,673.70

Constuction Costs for Building, FFE, Guest Service Areas, etcHVS Estimates Per Sqmt CADBuilding Costs- Construction CAD 2,421.90 Building Costs- FFE CAD 589.85 Total CAD 3,011.75

Additional Costs Percentage Proffesional & Legal Fees 12%Contingency 5%Pre-Opening ExpensesWorking Capital 1.50%Project Management 12%Total

Estimated Development Costs Total CostLand Cost CAD 10,764,000.00 Building Costs- Construction CAD 42,976,615.50 Building Costs- FFE CAD 10,466,970.36 Proffesional & Legal Fees CAD 6,413,230.30 Contingency CAD 2,672,179.29 Pre-Opening Expenses CAD 178,191.99 Working Capital CAD 801,653.79 Project Management CAD 6,413,230.30 Total CAD 80,686,071.53

Initial Asset Balance Sheet

Cash CAD 801,653.79 CAD 58,653,447.39

FF&E CAD 10,466,970.36 Land CAD 10,764,000.00 Assets CAD 80,686,071.53

Building (Including Preopening Expenses)



We are considering WC to be our cash due to that we do not have any current assets, apart from cash or any current liabilities.

DepreciationBuilding Depreciation 2014Beginning balance CAD 58,653,447.39 Amount to depreciate CAD 58,653,447.39 Depreciation CAD 2,932,672.37 Accumulated depreciation CAD 2,932,672.37 NBV CAD 55,720,775.02

FF&E Depreciation 2014Beginning balance CAD 10,466,970.36 Amount to depreciate CAD 10,466,970.36 Depreciation CAD 1,495,281.48 Accumulated depreciation CAD 1,495,281.48 End balance CAD 8,971,688.88


Proposed Supply

2592


Total Sqmt per room type Hallway Walls

Companies in the Area (Potential Customer

Analysis)

Hotels in the Area (Potential Competitor Analysis)

Mainly Gas & Energy related companies (Calgary will by

2025 produce over 5% of the global oil production): Suncor Energy Inc.,

Enbridge Inc. Head offices and the largest part of

business center is located in Downtown: Imperial Oil Ltd.

Canadian Natural Resources Ltd.

Sheraton Suites Eau Claire, The Westin Calgary,

International Hotel Suites Calgary, Delta Bow Valley, Calgary Marriot Downtown

Hotel, Hotel le Germain Calgary, The Fairmont Palliser,

Ramada Hotel Downtown Calgary, Sandman Hotel

Calgary City Center, Holiday Inn Express Calgary, NUVO Hotel Suites, Best Western

Plus Suites Downtown Calgary, Hotel Arts, Kensington

Riverside Inn, Hyatt Regency Calgary, Regency Suites Hotel,

N. Hotel Elan

Total Size Projection Floor PlanConstruction Costs for Building, FFE, Guest Service Areas, etc.

20% of the area is allocated to hallways

avisingh:30% extra space to account for walls (interior and exterior)

avisingh:4 m2 per person are needed for a restaurant.

Capacity calculated by 1.11 sqmt per person. Round Table seating.https://www.banquettables.pro

1,280 256 460.8

3,200 640 1,152.0

540 108 194.4

100 20 36.0

5,120 1,024 1,843

Size per cover Total size Sqmt Kitchen/Service area

4.00 400.00 250.00

4.00 120 20.00

520 270

Size Sqmt People capacity Kitchen

700 625 100

200 180 -

900 805 100

Size Sqmt

312

546

78

250

1,186

20% of the area is allocated to hallways


avisingh:4 m2 per person are needed for a restaurant.

Capacity calculated by 1.11 sqmt per person. Round Table seating.https://www.banquettables.pro

The adjustable wall between the two halls makes it possible to merge them together



Constuction Costs for Building, FFE, Guest Service Areas, etcTotal Construction sqmt Total CAD

17,745 CAD 42,976,615.50 - CAD 10,466,970.36

CAD 53,443,585.86

Costs CAD Total CAD CAD 53,443,585.86 CAD 6,413,230.30 CAD 53,443,585.86 CAD 2,672,179.29

CAD 178,191.99 CAD 53,443,585.86 CAD 801,653.79 CAD 53,443,585.86 CAD 6,413,230.30

CAD 16,478,485.67

Per sqmt Gross % CAD 5,382.00 13.34% CAD 2,421.90 53.26%

CAD 589.85 12.97% CAD 361.41 7.95% CAD 150.59 3.31%

CAD 10.04 0.22% CAD 45.18 0.99%

CAD 361.41 7.95% CAD 9,322.38 100%

Fixed Assets (Straight Line) DepreciationBuilding 5%FF&E 14%



We are considering WC to be our cash due to that we do not have any current assets, apart from cash or any current liabilities.

avisingh:Depreciation of 5% as we estimate a useful life of 20 yearsavisingh:Estimated 5 years of useful life.

Depreciation2015 2016 2017

CAD 58,653,447.39 CAD 58,653,447.39 CAD 58,653,447.39 CAD 58,653,447.39 CAD 58,653,447.39 CAD 58,653,447.39


CAD 52,788,102.65 CAD 49,855,430.28 CAD 46,922,757.91

2015 2016 2017 CAD 10,466,970.36 CAD 10,466,970.36 CAD 10,466,970.36 CAD 10,466,970.36 CAD 10,466,970.36 CAD 10,466,970.36

CAD 1,495,281.48 CAD 1,495,281.48 CAD 1,495,281.48 CAD 2,990,562.96 CAD 4,485,844.44 CAD 5,981,125.92 CAD 7,476,407.40 CAD 5,981,125.92 CAD 4,485,844.44


Other (Extra Benefits) Snapshot Hotels in the Area Land Price

CAD 5382.- per sqmt


Total Sqmt

Free transportation within Downtown with the C-Train / between 5'000 and 10'000

people walk between the 4th and 6th avenue at peak times / 17th avenue, the second busiest area in

Calgary with over 400 shops & businesses

Construction Costs for Building, FFE, Guest Service Areas, etc.

FFE Costs Initial Asset Balance Sheet


1,997

4,992

842

156

7,987

Kitchen Circulation Take Away Counter Walls

50.00 50.00 225

- - 42

50.00 50.00 267

Pre Function Space Walls Total Sqmt

125.00 462.50 1,388

36.00 118.00 354

161 580.50 1,742


20% of Kitchen/Service Area

0.2 sqmt per person.

FFE CostsArea Type Number of areas Total area

Parking 105 2646Laundry 1 250Lobby 1 160

Bar 1 140Restaurant 1 450

Kitchen 2 400Business Center 1 50

Event Areas 2 1050Gym 1 200

Swimming Pool 1 350Staff Areas 1 500

Rooms 150 5120Corridor 6 1471

Miscalenious 1 -

All coat estimates from HVS cost estimate guide for hotel (2013)

Price for the entire laundry set up

Administartion and Engineering and Maintenance

Cost per roomElevators, key system, electronic signage boards, ecterior signage, entrance doors

Price for all the features

avisingh:Depreciation of 5% as we estimate a useful life of 20 yearsavisingh:Estimated 5 years of useful life.

Depreciation2018

CAD 58,653,447.39 CAD 58,653,447.39

CAD 2,932,672.37 CAD 14,663,361.85 CAD 43,990,085.54

2018 CAD 10,466,970.36 CAD 10,466,970.36

CAD 1,495,281.48 CAD 7,476,407.40 CAD 2,990,562.96


Land Size

2000 sqmt

The Elysium Downtown Calgary Total Size Projection The Elysium Floor Plan

Floor -2

Initial Asset Balance Sheet

Fixed Assets Depreciation Depreciation

20 King and 20 Double Queen20 King and 20 Double Queen

Floor -1

Ground Floor

Floor 1

Floor 2

Floor 3

Floor 4Total Sqmt Floor 5

975 Floor 6

182

1,157


FFE CostsCost per SqFoot Cost per SqMeter Total cost

USD 1,089.52 CAD 1,138.00 CAD 119,490.38 USD 232,994.85 CAD 243,363.12 CAD 243,363.12

USD 159.08 CAD 1,788.54 CAD 286,165.78 USD 319.47 CAD 3,591.80 CAD 502,852.08 USD 145.70 CAD 1,638.10 CAD 737,147.16

USD 54.51 CAD 612.86 CAD 245,142.33 USD 134.61 CAD 1,513.42 CAD 75,671.00 USD 153.75 CAD 1,728.61 CAD 1,815,041.49 USD 187.36 CAD 2,106.49 CAD 421,297.62

USD 95.36 CAD 1,072.13 CAD 375,246.30 USD 183.69 CAD 2,065.23 CAD 1,032,613.15

USD 24,672.33 CAD 25,770.25 CAD 3,865,537.72 USD 2,837.98 CAD 2,964.27 CAD 444,640.52

USD 289,862.81 CAD 302,761.71 CAD 302,761.71 TOTAL CAD 10,466,970.36

Cost pe parkingr space

Price for the entire laundry set up

Cost per room

In the guide corridor price is related to the number of rooms rather than size of corridor

Price for all the features

The Elysium Floor Plan

Type of Room

Underground Parking (60)

Staff area includes: Administration, Engineering and Maintainence.


Underground Parking (45)+Laundry+Receieving Area

Lobby (including bar area)+Front Office (including Security)+Restaurant+Main Kitchen

Business Center+Event Facilities+Secondary Kitchen+Food Storage

Staff Area+Gym+Swimming Pool+Storage Areas

King Rooms + Double Queen Rooms

King Rooms + Double Queen Rooms

King Rooms

King Rooms+Junior Suites+President Suite

Total



Cost pe parkingr space

In the guide corridor price is related to the number of rooms rather than size of corridor


Number of Rooms

Parking Spot=6*3



Parking Spot=6*3 Laundry=250 Receiving Area=50

Lobby=300 Front Office=200 Restaurant+Main Kitchen=750

Business Center=50 Event Facilities=1050 Secondary Kitchen=100 Food Storage=50

Administration=500 Gym=200 Swimming Pool=350 Storage Areas=200

40

40

40

20+9+1




Room Area (Square Meters) Total Area Per Room Type Floor Area

1080 1512 1966

Additional 20% for hallway space

Additional 30% for wallsTOTAL=ROOM AREA+HALLWAY AREA+WALLS

40% allocated to driving and walking area instead of 20% hallway area

45*6*3+250+50 1494 1942

1250 1500 1950

1250 1500 1950

1250 1500 1950

32 1536 1997

32 1536 1997

32 1536 1997

32 King Room; 60 Junior Suite; 100 President Suite 1536 1997

13650 17745

40% allocated to driving and walking area instead of 20% hallway area

Demand Forecast & Supply

% Occupancy History

Forecasted Room Supply in Calgary Downtown - 2014/2018

2008 2009

Room Supply 1,312 1,413

Occupancy in Downtown (%)

January February

2008 58.74 63.69

2009 58.62 59.55

2010 55.4 58.3

2011 51.6 67.1

2012 63.7 71.1

2013 59.7 63.8

Avg 57.6 63.9

Occupancy HistoryAdditions to Hotel Supply and Office

Space

Alix Waldis:2008 Data are the averages of the entire city of Calgary and not only restricted to the area of Downtown. Retrieved from 2013 Market Pipeline Report, Canada by STR.Alix Waldis:2009 Data are the average for the entire city of Calgary and not only restricted to Downtown. Retrieved from 2013 Market Pipeline Report, Canada by STR.

Alix Waldis:Data retrieved October 1st, 2013 from http://www.visitcalgary.com/sites/default/files/Occupancy_2010_dec_v9_0.pdf

Alix Waldis:Retrieved October 1st, 2013 from http://www.visitcalgary.com/sites/default/files/occupancy_2011-12.pdf Alix Waldis:Retrieved October 1st, 2013 from http://www.visitcalgary.com/sites/default/files/pdf/occupancy_2012-12.pdf Alix Waldis:Calgary Tourism, Destination Report Q2 2013. Retrieved October 1st, 2013 from http://www.visitcalgary.com/sites/default/files/pdf/q2_2013_destination_report-final-web.pdf

Seasonality in Calgary

Monthly Demand

January February

2008 206,239 209,894

2009 194,630 203,405

2010 188,969 188,150

2011 191,379 215,556

2012 216,076 222,691

2013 221,582 224,888

Avg 203,713 212,513

Number of Rooms % YearlyHigh Season 1,105,544 37%Middle Season 1,472,575 50%Low Season 391,275 13%

Total Demand 2,969,394 100%

Demand in Downtown

Monthly Demand for Downtown

January February

2008 77,069 83,562

2009 82,836 84,145

2010 99,886 105,115

2011 108,618 141,246

2012 140,267 156,562

2013 151,041 161,414

Avg 109,953 122,007

New Independent Hotel Induced Demand2014 2015

Total New Branded Room Supply 2,592 2,790 Yearly Supply 946,080 1,018,350

Alix Waldis:2008 Data are the averages of the entire city of Calgary and not only restricted to the area of Downtown. Retrieved from 2013 Market Pipeline Report, Canada by STR.

Alix Waldis:Linear demand growth forecast retrieved from PFK Consulting Canada 'Alberta Accomodation Outlook 2014'.

Alix Waldis:Based on the average difference of ADR between 2008 and 2009 in Calgary city, we calculated the ADR for Downtown based on the numbers we found for 2010 backwards to 2009, then to 2008.

Alix Waldis:Based on the average change of ADR from 2009 to 2010 within the entire city of Calgary provided in the STR 2013 Market Pipeline Report, Canada, we calculated the ADR for Downtown for 2009. This assumption was necessary as the ADR in Calgary is significantly lower than in Downtown.

Demand Impact 4% 4%Induced Roomnights 37,843 40,734

Actual Demand in Downtown

ADR in Downtown

January February

2008 147.39 164.70

2009 165.66 183.31

2010 165.33 179.28

2011 178.33 182.64

2012 191.11 204.79

2013 126.52 216.85

Avg 165.32 195.89

RevPar in Downtown

January February

2008 107.72 126.35

2009 101.47 121.04

2010 91.63 104.58

2011 92.11 122.54

2012 121.69 145.82

2013 126.52 148.14

Avg 107.99 130.27

General Economic Projections

Year Delta GDP Inflation

2008 0.70% 2.40%

2009 -2.80% 0.30%

2010 3.20% 1.80%

2011 2.53% 2.66%

2012 1.71% 0.94%

2013 1.61% 1.51%

2014 2.16% 1.75%

Alix Waldis:Linear demand growth forecast retrieved from PFK Consulting Canada 'Alberta Accomodation Outlook 2014'.

Alix Waldis:Based on the average difference of ADR between 2008 and 2009 in Calgary city, we calculated the ADR for Downtown based on the numbers we found for 2010 backwards to 2009, then to 2008.

Alix Waldis:Based on the average change of ADR from 2009 to 2010 within the entire city of Calgary provided in the STR 2013 Market Pipeline Report, Canada, we calculated the ADR for Downtown for 2009. This assumption was necessary as the ADR in Calgary is significantly lower than in Downtown.

Alix Waldis:Data retrieved October 5th, 2013 from imf.com

Alix Waldis:Retrieved October 5th, 2013 from imf.com

Alix Waldis:Data have been retrieved from Market Pipeline Report 2013, Canada by STR.

2015 2.43% 2.02%

2016 2.47% 2.02%

2017 2.39% 2.02%

2018 2.20% 2.02%

2019 2.37% 2.02%

Year Room Occupancy

2008 74.30%

2009 72.24%

2010 65.94%

2011 70.06%

2012 73.51%

2013 68.87%

2014 69.61%

2015 73.46%

2016 75.45%

2017 75.41%

2018 73.49%

# of rooms 150

Days open 365

Monthly Occupancy Forecast in Downtown

Forecasted Room Supply in Downtown - 2014

Month January February

59.7 63.8 Calgary Average from the 6

past years

59.7% 63.8%

77760 77760

48286 51601

% Occupancy Forecast 62% 66%Adjusted Occupancy 42.1% 46.4%

Forecasted Occupancy in Downtown for 2014

Monthly Room Supply in Downtown

Forecasted Demand in Downtown for 2014


% Occupancy History


2010 2011 2012 2013 2014 2015

1,803 2,105 2,202 2,530 2,592 2,790


March April May June July August

73.02 73.56 84.65 92.62 83.22 74.24

64.84 80.77 83.47 89.66 79.89 73.57

63.8 66.8 72.7 75.4 75.5 67.1

71.4 65.5 73.5 79.7 79.2 69.9

70.1 72.5 77.2 78.7 84 72.5

68.4 78.4 80.3 62.6

68.6 71.8 78.3 83.2 80.4 71.5

Additions to Hotel Supply and Office

Space


Demand in Downtown

New Independent Hotel Induced

Demand


Monthly Demand


234,662 257,654 262,054 276,971 282,595 279,664

231,211 215,811 230,704 236,079 270,716 258,494

229,025 224,187 238,954 258,692 278,315 256,822

254,785 234,953 255,386 274,029 297,235 261,465

257,982 251,804 269,628 288,114 315,641 284,012

260,461 271,242 280,939 273,486 316,285

247,082 241,116 257,228 270,057 293,164 270,019

# of Months Demand per month %4 9%6 8%2 7%

12

Demand in Downtown



95,796 96,517 111,064 121,516 109,189 97,406

91,615 114,133 117,939 126,683 112,890 103,961

115,031 120,440 131,078 135,946 136,127 120,981

150,297 137,878 154,718 167,769 166,716 147,140

154,360 159,645 169,994 173,297 184,968 159,645

173,052 198,352 203,159 158,378 0 0

130,025 137,828 147,992 147,265 141,978 125,827

New Independent Hotel Induced Demand2016 2017 2018

3,231 3,591 3,591 1,179,315 1,310,715 1,310,715

4% 4% 4% 47,173 52,429 52,429


ADR in Downtown


163.00 173.04 183.28 216.80 219.93 168.93

173.59 197.10 198.68 243.69 227.41 176.36

175.50 180.54 189.14 214.20 206.26 167.54

200.92 182.89 192.01 203.73 219.85 177.24

202.78 207.49 212.75 234.57 254.69 184.29

203.91 221.07 217.97 237.41

195.78 198.00 202.97 222.48 226.93 176.36

RevPar in Downtown


122.09 156.57 165.92 194.49 186.61 141.63

121.48 118.53 137.55 143.73 160.11 122.79

112.00 120.66 137.55 161.41 155.79 112.48

143.44 119.86 141.09 162.42 174.09 123.92

142.12 150.43 164.21 184.60 213.89 133.68

139.44 173.41 174.93 148.68

134.25 141.09 154.45 164.28 181.26 123.36


Delta FX

0.09% 3.50% 5.10% 1.80%

5.99% 6.30% -0.50% 3.60%

-9.19% 7.00% 4.20% 2.20%

-9.19% 6.50% 4.00% 2.00%

-3.79% 5.10% 4.10% 1.50%

1.11% 4.90% 4.30% 1.30%

0.97% 4.80% 4.20% 1.20%

Uemployement Rate

Economy Growth

Population Growth Calgary


Alix Waldis:Retrieved October 5th, 2013 from http://www.calgary.ca/CA/fs/Documents/Corporate-Economics/Calgary-and-Region-Economic-Outlook/Calgary-and-Region-Economic-Outlook-2011-Q1.pdf?noredirect=1



0.96% 4.20% 4.10% 1.10%

0.96% 3.80% 4.20% 1.10%

1.00% 3.80% 4.20% 1.10%

0.97% 4.15% 4.18% 1.20%

0.97% 3.99% 4.17% 0.30%


2,592


68.4 78.4 80.3 78.7 84.0 72.5

Alix Waldis:This number has been calculated on the Supply & Demand Sheet

68.4% 78.4% 80.3% 78.7% 84.0% 72.5%

77760 77760 77760 77760 77760 77760

55321 63408 64945 63651 67937 58637

71% 82% 84% 82% 87% 75%51.1% 66.5% 80.0% 78.4% 83.9% 71.9%


% Occupancy History


2016 2017 2018

3,231 3,591 3,591


September October November December Total Year

82.83 86.37 61.11 57.54 74.30

79.43 79.46 59.76 57.83 72.24

78 71.2 55.4 51.7 65.9

79.6 74.1 71.7 57.4 70.1

83.8 76.9 75.9 55.7 73.5

68.9

80.7 77.6 64.8 56.0 71.2

New Independent Hotel Induced

Demand


General economic Projections

Alix Waldis:The Data is retrieved from 2013 Market Pipeline Report, Canada by STR.


Monthly Demand


271,171 257,608 243,651 187,789 2,969,951

272,164 238,019 232,946 173,273 2,757,451

276,950 249,872 239,818 182,104 2,811,860

283,047 263,401 245,583 196,013 2,972,832

299,899 279,025 256,402 199,169 3,140,443

280,980 261,343 244,618 187,562 2,948,725

Demand in Downtown



108,667 113,323 80,172 75,495 1,169,777

112,234 112,283 84,445 81,714 1,224,879

140,634 128,374 99,886 93,215 1,426,714

167,558 155,981 150,929 120,827 1,769,674

184,528 169,334 167,132 122,651 1,942,384

0 0 0 0 1,045,396

142,724 135,859 116,513 98,781



ADR in Downtown

September October November December Yearly Average

183.01 183.20 156.51 159.76 176.63

193.63 195.47 164.02 166.15 190.42

190.53 186.09 165.33 160.67 181.70

198.09 199.18 302.41 170.54 200.65

217.58 214.09 212.41

203.96

202.07 199.79 233.87 165.61 198.75

RevPar in Downtown

September October November December Yearly Average

166.37 157.30 103.16 96.68 143.74

160.71 134.17 96.45 83.63 125.14

148.66 132.43 91.63 83.13 121.00

157.63 147.53 145.78 97.88 135.69

182.32 164.68 160.34

151.85

162.87 148.21 118.71 90.51 138.10


September October November December

83.8 76.9 75.9 55.7

Alix Waldis:Forecast for the monthly occupancy has been achieved as following: 1. Based on the monthly occupancy of the past 6 years, in Downtown and the forecasted growth in Occupancy of 4%, we calculated the average and added the 4%.2. According toXXX , newly opened hotels have an occupancy of 20% less than the average during the 4 first month. THis is why our occupancy from January to April is so low.3. In addition to that, independent hotels have on average an occupancy lower by 7% than the average.

83.8% 76.9% 75.9% 55.7%

77760 77760 77760 77760

67775 62195 61387 45051

87% 80% 79% 58%83.7% 76.5% 75.4% 54.4%

Adjusted 2014 Average 67.53%

Additions to Hotel Supply in DowntownProposed Property

Holiday Inn Express & Suites Airport Calgary

Acclaim Hotel

Service Plus Inn & Suites Calgary

NUVO Hotel Suites

Hotel Alma

Hotel Le Germain Calgary

Four Points Calgary Airport

Best Western Premier Freeport Inn & Suites

Courtyard Calgary Airport

Residence Inn Calgary Airport

Hotel Elan

Hillton Garden Inn Downtown

Renaissance Clubsport Downtown

Fairfield Inn & Suites Downtown

Homewood Suites Downtown

Residence Inn Beltline DowntownGrand Total

General economic Projections

Regression DataForecasted Occupancy

Monthly Occupancy Forecast


Sources:

Given the yearly average occupancy rate of 69.9 over the last 5 years, we considered: - Low season (in yellow): occupancy rate lower than 65%

- Middle season (in orange): occupancy rate between 65 and 75% - High season (in red): occupancy rate higher above 75%


http://www.visitcalgary.com/sites/default/files/occupancy_2011-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/occupancy_2012-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/q2_2013_destination_report-final-web.pdf

ReferencesChanges % are retrieved from the STR document provided by the director of the projectChanges % are retrieved from the STR document provided by the director of the projecthttp://www.visitcalgary.com/sites/default/files/Occupancy_2010_dec_v9_0.pdfhttp://www.visitcalgary.com/sites/default/files/occupancy_2011-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/occupancy_2012-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/q2_2013_destination_report-final-web.pdf

Regression for the Occupancy Rate taking Foreign Exchange, Unemployment Rate & Economy Growth into consideration.

SUMMARY OUTPUT

http://www.visitcalgary.com/sites/default/files/Occupancy_2010_dec_v9_0.pdf


Regression Statistics

Multiple R

R Square

Adjusted R Square

Standard ErrorObservations

ANOVA

Regression

Residual

Total

Intercept

X Variable 1

X Variable 2

X Variable 3

Alix Waldis:Forecast for the monthly occupancy has been achieved as following: 1. Based on the monthly occupancy of the past 6 years, in Downtown and the forecasted growth in Occupancy of 4%, we calculated the average and added the 4%.2. According toXXX , newly opened hotels have an occupancy of 20% less than the average during the 4 first month. THis is why our occupancy from January to April is so low.3. In addition to that, independent hotels have on average an occupancy lower by 7% than the average.

Additions to Hotel Supply in DowntownNumber of Rooms Opening Date Development Stage

101 February 2008 Open

123 March 2009 Open

139 April 2009 Open

32 June 2009 Open

96 October 2009 Open


159 Mai 2010 Open




62 June 2013 Open

198 June 2014 Under Construction

200 July 2015 Final Planning

124 August 2015 Final Planning

117 August 2015 Final Planning

360 April 2016 Final Planning2279

Monthly Occupancy Forecast

STR (2013): 2013 Market Pipeline Report, Canada. Provided by the Director of the Project.

Given the yearly average occupancy rate of 69.9 over the last 5 years, we considered: - Low season (in yellow): occupancy rate lower than 65%

- Middle season (in orange): occupancy rate between 65 and 75% - High season (in red): occupancy rate higher above 75%

http://www.visitcalgary.com/sites/default/files/occupancy_2011-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/occupancy_2012-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/q2_2013_destination_report-final-web.pdf

Changes % are retrieved from the STR document provided by the director of the projectChanges % are retrieved from the STR document provided by the director of the projecthttp://www.visitcalgary.com/sites/default/files/Occupancy_2010_dec_v9_0.pdfhttp://www.visitcalgary.com/sites/default/files/occupancy_2011-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/occupancy_2012-12.pdfhttp://www.visitcalgary.com/sites/default/files/pdf/q2_2013_destination_report-final-web.pdf


SUMMARY OUTPUT



Regression Statistics

0.9865397177

0.9732606147

0.9331515367

0.00813863436

df SS MS F Significance F

3 0.0048218178 0.0016072726 24.26534498 0.039839748

2 0.0001324747 6.6237368506E-005

5 0.0049542925

Coefficients Standard Error t Stat P-value Lower 95%

1.1306674183 0.0610657391 18.5155773966 0% 0.867922749

-0.946396685 0.1970814101 -4.8020596389 4% -1.79436955

-5.8345638458 0.8245619496 -7.0759557228 2% -9.38236757

-3.4605369514 0.5917980994 -5.8474958856 3% -6.00683866

Downtown Additions to Office Surface Proposed Property Number of Floors

Fairfield Inn & Suites Downtown 40

Cadillac Flairview 36

Oxford Properties Group 25

Brookfield Office Properties 54

Allied Properties Telus & Westbank 58

Manulife Redevelopment 27

3 Eau Claire Develpments 50

3GWL Ready Advisors 28

Strategic Group 11

Aspen Properties 26

Matthews Southwest Developments 12

Brookfield Asset Management 42

Total Surface

Source: Calgary The Real Estate Forum, Retrieved October 13th, 2013 from http://www.realestateforums.com/calgaryref/docs/2013/a1.pdf


SUMMARY OUTPUT

Significance F

Upper 95% Lower 95.0% Upper 95.0%

1.393412087 0.867922749 1.393412087

-0.09842382 -1.79436955 -0.09842382

-2.28676012 -9.38236757 -2.28676012

-0.91423524 -6.00683866 -0.91423524

Downtown Additions to Office Surface Opening Date Address Surface

Q3 2014 Eighth Avenue Place - West 71000

Q1 2016 Calgary city center 73000

2016 Eau Claire Tower 55300

2017 Brookfield Place East 11000

2017 Telus Sky 38700

2017 Manulife Financial Corp. 50000

TBD 3 Eau Claire 22000

2018 First Canadian Center East 53000

TBD Barron Building Development 18000

TBD Palliser West 45000

TBD 600 Center 36000

TBD Brookfield Place Tower 90000

563000


Downtown Additions to Office Surface Industry

Oil & sand

Gas

Energy

Energy

Telus (events)

Energy

Communication

TBD

TBD

TBD

TBD

TBD


Segmentation

Business Market

(24.8% of Total visitors in Calgary)

Individuals traveling for professional reasons (business meetings, seminars, temporary projects) that keep them away from home.

Commercial

Geographic Canada: 81.8%, Europe: 7% US: 6.6%, Asia/Pacific: 3.8%, rest of the world <1% (Canada Statistics, 2011)

Demographic

(Statistics Canada, 2011)

Psychographic

"Mostly Canadian citizens, aged: 35 – 54, 60% married with no children on the household

Managerial & professional positions with an average of 35% Average income of CAD 78'500 $

70% travel by car to reach their destination60% married with no children on the household

A majority of travelers said they made they use technology on travel to make it more productive.The 35-44 are taking the most trips combining leisure and business.

Segmentation

Alix Waldis:http://hotelexecutive.com/newswire/43113/top-10-hospitality-industry-trends-for-2013

Psychographic

Technographic

Buying Behavior

In 2013, 34% of Canadian travelers booked through an OTA while 37% booked through the supplier website. 19% still called the hotel while 10% walked up in person.

Segments Size 45%

Client Mix Forecast


1. 14% High Tech: traveling for professional reasons improve their job satisfaction. Use the latest technologies to stay in touch with friends & relatives stayd at home while they enjoy social networking during their business trip.

2. 33% Veterans: aged between 35 and 54,the possibility to keep contact with friends & relatives stayd at home is one of the first criteria to choose their accomodation. They often play a key position in companies and know how to keep track of their expenses. If hotels keep them happy, veterans will be the ambassadors of their travel

program

3. 25% Road-Weary Travelers: 95% are domestic travelers and drive to their destination. They tend to become repeated guests. They enjoy entertainment programms and facilitated travel planning.

4. 7% New recruits: new to business travels, they lack the experience to be part of the savvy travelers but are keen on technologies. Social networking during business trips is part of their programme. They often travel more than requested.

5. 21% Wide-eyed and anxious: aged between 34 and 54, they need to feel safe when traveling. Thanks to technologies, they tend to have greater tendency to extend their stay. They also like to explore the surrounding area with its attractions.

More than 70% of travelers take their mobile phones on trip. Technoloygy is an indispensible travel tool. It helped 90% of them to get information on their journey.

Passionate high tech – embrace new technology (McGinnis, 2011; Ellens, 2010), Travelers are more used to managing their travels ahead of the journey and are more involved through self-service. They desire to book their stay through a tablet or smartphone and enjoy the ability to customize even details of their stay (“Conrad Hotel

Rolls”, 2012).

Price inelastic, commercials have a high tendency to book last minute. The peak period is the mid-week. Their criteria to choose the accomodation is the location, the aminities, complimentary WiFi and the accessibility.


Based on the averages in the business hotel industry in Canada by PKF, we segmented our market as folliowing.

Segment

Bu

sin

es

s

Commercial

Gov.

MICE

Extended Stay

Looking at the psychographic caracteristics of our business segments, we came to the conclusion that from all our segments, only the MICE and commercial guests are keen on bring someon eon a business trip. Therefore, we estimated to have 35% of the business guests sharing a room with their partner.

Le

isu

re

Solo

Couples

SMERFE

Total

Total Leisure


Total Business

Party SizeBusiness

People Margin1 65%2 35%

1.35

PRICING

LOWEST RATE

Sta

nd

ard

Kin

g

Hotel Elan


Average Competitive Set

Our HotelDemand per segment

# of rooms per segment

Average Party Size per Segment




Targeted ADR

DELUXE RATEHotel Elan



Our Hotel Demand per Segment# of rooms per segment

Targeted ADR

SUITE RATEHotel Elan



Our HotelDemand per Segment # of rooms per segment

Targeted ADR

Rack Rate

Occupancy

Do

ub

le Q

ue

en

R

oo

mHoliday Inn Express & Suites Calgary


De

lux

e

Su

ite

s



Grand Presidential

Suite

Forecast Monthly and Yearly ADR

Monthly Ocuupancy Rate for 2014Month January

Average Occupancy Forecast 42.10%

Daily Average Room BreakdownKing room 42Double Queen room 16.8Suites 3.8Presidential 0.25

Average Monthly ADR per CategoryJanuary

King room 196.5Double Queen room 224Suites 309Presidential 550ADR 212 Yearly ARR 248

In terms of room breakdown throughout the year, we took into consideration the fact that: 1. MICE segments favor the spring and fall season to plan any business event so that they avoid holiday and summer period. 2. Businessmen do not travel during school holidays and summer season. 3. Leisure guests favor special events (Calgary has a higher event volume in summer), week-ends and holiday time, as well as the summer season. 4. Since The Elysium is new on the market, the business segment will be lower than expectations while leisure will increase the occupancy rate especially during major events such as the Stampede.Based on this facts and on our segmentation for each room category, we distributed the rooms to obtain our forecasted monthly room occupancy.

Alix Waldis:Because 2014 is The Elysium's opening year, we adjusted the occupancy rate taking into consideration an occupancy rate of 20% less than what it is supposed in the first month, and then slowly decreasing the difference step by step based on the article of O'Neill and Carlbäck on the Independent Hotels' performance.

2014 Monthly Rack Rates

The ElysiumJanuary

Weekday

King Room 210

230

Suites 330

550

ADR Forecast 2015 - 2018

2014

Total ADR 247.53

Inflation 1.75%

% Occupancy 68%

CAD 9,026,069.12

Distribution Mix

Demand Share by Channel in Canada - 2013Distribution Channels

Queen Double Room

Presidential Suite

Based on the 2014 demand for each type of room, we calculated an average rate for our two markets, the business and the leisure markets.In order to find out the ADR per segment, the calculation is based on a 100% of occupancy so to determine the # of rooms sold per segment.

Forecasted Room Revenue


Property Direct / Other

Brand.com

CRS / Voice

OTA

GDS

The Elysium's Distribution Channels

Dir

ect

Bo

oki

ng Property Direct

Brand.com

Voice

Dir

ect

Bo

oki

ng

Voice

OTA

GDS

Forecasted Use of Distribution Channels

Type of channel 2014

43%

Brand.com 12%

6%

OTAs 28%

GDSs 11%

Remark:

Ind

ire

ct

Bo

oki

ng

Property Direct/ Other

Direct Voice Booking (CRS)

As The Elysium is new on the market, it is necessary to use third party distribution channels in order to enlarge its audience for potential bookings. Once its reputation has been settled in customer's mind, loyalty programmes direct booking will take over to reach the largest share of booking channels.

Segmentation

Business Market

(24.8% of Total visitors in Calgary)

Individuals traveling for professional reasons (business meetings, seminars, temporary projects) that keep them away from home.

Governement & Contracted rates {Gov.} MICE Extended Stay {Extended}

Canada: 81.8%, Europe: 7% US: 6.6%, Asia/Pacific: 3.8%, rest of the world <1% (Canada Statistics, 2011)

(Statistics Canada, 2011)

"Mostly Canadian citizens, aged: 35 – 54, 60% married with no children on the household

Managerial & professional positions with an average of 35% Average income of CAD 78'500 $

70% travel by car to reach their destination60% married with no children on the household


Client Mix ForecastClient Mix by

Volume over 5 Years

Party Size

Alix Waldis:http://www.businesstravelnews.com/uploadedFiles/White_Papers/BTN_Concur_0412_FINAL.pdf



5% 15% 10%

Client Mix Forecast


traveling for professional reasons improve their job satisfaction. Use the latest technologies to stay in touch with friends & relatives stayd at home while they enjoy social networking during their business trip.

aged between 35 and 54,the possibility to keep contact with friends & relatives stayd at home is one of the first criteria to choose their accomodation. They often play a key position in companies and know how to keep track of their expenses. If hotels keep them happy, veterans will be the ambassadors of their travel

program

3. 25% Road-Weary Travelers: 95% are domestic travelers and drive to their destination. They tend to become repeated guests. They enjoy entertainment programms and facilitated travel planning.

new to business travels, they lack the experience to be part of the savvy travelers but are keen on technologies. Social networking during business trips is part of their programme. They often travel more than requested.

5. 21% Wide-eyed and anxious: aged between 34 and 54, they need to feel safe when traveling. Thanks to technologies, they tend to have greater tendency to extend their stay. They also like to explore the surrounding area with its attractions.


Passionate high tech – embrace new technology (McGinnis, 2011; Ellens, 2010), Travelers are more used to managing their travels ahead of the journey and are more involved through self-service. They desire to book their stay through a tablet or smartphone and enjoy the ability to customize even details of their stay (“Conrad Hotel

Rolls”, 2012).

Contracted rates have a high tendency for last bookings. The partnership with surrounding headquarters and companies triggers demand for meeting venues and business lunches.

Because of more tights budgets, meeting planners are neglecting luxury hotels' venues to favour more affordable venues .MICE have the tendency to book in advance and enjoy lower rates because of the booking volume.

Extended stays book in advance and are the segment that most likely mixes business during the week with leisure at week-ends. They prefer larger rooms because of the length of their stay.



Based on the averages in the business hotel industry in Canada by PKF, we segmented our market as folliowing.

Needs to be at rack because the demand cohere with the weekday peak time.

2014 2015 2016

45% 46% 47%

5% 5% 5%

15% 16% 16%

10% 11% 12%



5% 4% 3%

10% 8% 7%

10% 10% 10%

100% 100% 100%

25% 22% 20%



75% 78% 80%

Party SizeLeisure

People Margin1 19%2 56%3 15%4 10%

2.16

PRICING

BusinessADR Rack Commercial

255

Data Not Available

168

190

197

203

266.75 290 29055%

100 55



220

BusinessADR Rack Commercial

334

Data Not Available

206

225

240

251

286.75 310 31045%

40 18275

Business

ADR Rack Commercial405

Data Not Available

230255

None

297

369.70 400 40018%

9 2355

550Based on our competition analysis, we fixed a rate not yieldable throughout the year.

25% Based on our occupancy forecast for 2014 (please see below), we do not expect an occupancy rate over 25% as this product is targeted for a tiny part of the leisure market.


Monthly Ocuupancy Rate for 2014February March April

46.36% 51.14% 66.54%

Daily Average Room Breakdown46 51 67

18.5 20.5 26.64.2 4.6 6.0

0.25 0.25 0.25

Average Monthly ADR per CategoryFebruary March April

206.5 207.5 219.5224 261 275309 339 355.5550 550 550

219 231 243

In terms of room breakdown throughout the year, we took into consideration the fact that:1. MICE segments favor the spring and fall season to plan any business event so that they avoid holiday and summer period. 2. Businessmen do not travel during school holidays and summer season. 3. Leisure guests favor special events (Calgary has a higher event volume in summer), week-ends and holiday time, as well as the summer season.4. Since The Elysium is new on the market, the business segment will be lower than expectations while leisure will increase the occupancy rate especially during major events

Based on this facts and on our segmentation for each room category, we distributed the rooms to obtain our forecasted monthly room occupancy.


2014 Monthly Rack RatesJanuary February

Weekend Weekday Weekend

165 235 140

210 230 210

260 330 260

550 550 550


2015 2016 2017

252.54 257.64 262.85

2.02% 2.02% 2.02%

73% 75% 75%

CAD 10,157,547.29 CAD 10,643,327.56 CAD 10,853,011.64

Distribution Mix

Demand Share by Channel in Canada - 2013Proportion Examples Channels Breakdown



55%

18% Hotel's own website

10%

Voice Direct

Voice Travel Agent

Voice Third Party

12%

Expedia, Kayak, Priceline Merchant

Opaque

5% Sabre, Galileo

The Elysium's Distribution Channels

Walk-ins, loyalty programs, management contracted rates

800-phone numbers, available 24H

Although, The Elysium will not have a particularly high same-day booking rate, The Elysium expects to have a large proportion of direc booking via the RFP forms for meetings, group bookings, ecause business travelers are more attracted by loyalty

programmes and special services or amenities, Because a majority business travelers, in particular unmanaged business travelers, are keener on booking their hotels by

themselves via hotel's website so to enhance their business journey, The Elyseum will put all efforts on encouraging online bookings primarily through its website while installing upselling process to increase revenue. It will provide all necessary

information on the accomodation offers & services as well as packages with upgrading possibilities, .Although the proportion of Voice booking is only 13%, the contribution to the revenue exceeds 17%. The main reason for that is that upselling works at best in voice booking to produce ancillary revenues. Furthermore, the upscale independent hotels

sell their rooms at the highest rates via Voice booking. Therefore, The Elysium will enhance direct booking and revenue growth with a 24H reservation center.


2015 2016 2017

43% 45% 48%

13% 16% 22%

6% 7% 8%

27% 22% 13%

11% 10% 9%

Although the proportion of Voice booking is only 13%, the contribution to the revenue exceeds 17%. The main reason for that is that upselling works at best in voice booking to produce ancillary revenues. Furthermore, the upscale independent hotels

sell their rooms at the highest rates via Voice booking. Therefore, The Elysium will enhance direct booking and revenue growth with a 24H reservation center.

Because The Elysium's primary target market consist of business travelers, OTAs will help settling the hotel in its competitive environment and provide it with visibility at a larger scale. However, because OTAs have reached their maturity in North

America and slowed down their growth, The Elysium is expecting to sell less rooms via OTAs. It will therefore help maximising revenue and favor upselling in the direc booking process.

GDSs remain an important retailer in the business hotel market because it provide hotels with a visibility on the global market. According to STR, GDS are expected to provide hotels with business from the Asian market, appealing to small corporate

account and meeting & events. As Asia is expected to be the major upcoming segment in Canada, this channel is relevant to The Elysium's strategy.


Segmentation

Leisure Market

(75.2% of total visitors in Calgary)

Solo travelers {Solo} Couples Leisure Groups {SMERFE}

Edmonton: 60%, International travelers: 13%

(Deloitte, p. 7 to 12, 2013)

This market consists of individuals and families whose purpose of travelling is to visit Friends & Relatives, or who are spending time in an area because of sightseeing and events happening at that time.

"Mostly Canadian citizens, aged: 18 – 45 (growing segment of the 18-24 years old) 52% female - 48% male "

Generation X & Y makes respectively 31% and 12% of the total leisure travelers 60% of the travelers to Calgary reached their destination by car.

Average budget spent on vacation trips: CAD 1'509.- (distributed over 2 rips on average). Price has become a top criteria when choosing accommodation.

Before booking, information is gathered from social media, TripAdvisor being at the top list of the favourite media, especially in the 18-45 age range.

Party SizeAverage

Length of StayPricing



Solo travelers undertake 4.3 travels/year while groups of adult travelers take 4.8 travels/year.


5% 10% 10%

Client Mix Forecast

Average budget spent on vacation trips: CAD 1'509.- (distributed over 2 rips on average). Price has become a top criteria when choosing accommodation.

Before booking, information is gathered from social media, TripAdvisor being at the top list of the favourite media, especially in the 18-45 age range.

In order to gain a better work/life balance, the leisure market is ready to increase spendings on vacation. In terms of F&B, leisure travelers pay importance to what they eat following the crieteria of organic and healthy

options.

The growing trend that impacted the Young Baby Boomers segment are the friends getaways. Since a few years, the long-time friends have become keen on undertaking a longer week-end that caters to the idea of an

entertaining getaway in fun-filled destinations.

the most common source in travel planning is the internet followed by online travel agencies, branded websites and other websites. 25% adult travelers also gathers information from co-workers, friends & relatives. 15% also

used guide books.

80% of domestic travelers favour shorter leisure trips of 1 to 3 days. Length of travel and presence of attractions are amongst the most valuable criteria when choosing

accommodation.Today's leisure travelers are price conscious and seeking week-end getaways as well as shorter breaks.


Social Network such as Tripadvisor has become the main source of information for people to research on the travel destination, accomodations. While social networks and mobile have become inseperable for researching

and bookings, photo-sharing is about to dominate in spreading their feedbacks.

The leisure market appreciate conviently located hotels downtown next to events venues and shopping centers. Looking for shorter breaks or week-end getaways, the leisure market is price elastic. They are the

segment that will most likely book in advance compared to business to enjoy best available rates. But the usual lead time is between 2 to 7 days. The peak period are the summer season and the holidays. Ongoing sportive and cultural events trigger the demand. Therefore, July with the Stampede is the high season with the highest

rates.



Alix Waldis:Deloitte, p. 7-8, 2013. Retrieved October 23rd from http://www.deloitte.com/assets/Dcom-Canada/Local%20Assets/Documents/CB/ca_en_navigate_summer_2013_06112013.pdf


Because of their extended stay, this segment is keener on enjoying larger accomodations. Therefore, they represent a smaller proportion of guesst for our standard rooms.

2017 2018 Average

48% 48% 47%

5% 5% 5%

19% 20% 17%

12% 12% 11%




2% 2% 3%

4% 3% 6%

10% 10% 10%

100% 100% 100%

16% 15% 20%




84% 85% 80%

Average Length of StayBusiness

Length of stay Segment Proportion1 38%2 23%3 14%4 25%

Total 100%

2.26

PRICING

BusinessGov. MICE Extended

Data Not Available

220 235 2005% 15% 5%

5 15 5

Average length of stay per segment




BusinessGov. MICE Extended

Data Not Available

250 275 2405% 15% 10%

2 6 4

Business

Gov. MICE Extended

Data Not Available

360 360 3305% 2% 10%

0 0 1

Based on our competition analysis, we fixed a rate not yieldable throughout the year.Based on our occupancy forecast for 2014 (please see below), we do not expect an occupancy rate over 25% as this product is targeted for a tiny part of the leisure market.


Monthly Ocuupancy Rate for 2014May June July

80.02% 78.36% 83.87%


32.0 31.3 33.57.2 7.1 7.5

0.25 0.25 0.25

Average Monthly ADR per CategoryMay June July

241.5 241.5 370292 312 400373 373 440550 550 550

264 269 383

3. Leisure guests favor special events (Calgary has a higher event volume in summer), week-ends and holiday time, as well as the summer season.4. Since The Elysium is new on the market, the business segment will be lower than expectations while leisure will increase the occupancy rate especially during major events

Based on this facts and on our segmentation for each room category, we distributed the rooms to obtain our forecasted monthly room occupancy.

Alix Waldis:http://www.hotelmarketing.com/index.php/content/article/european_business_travelers_prefer_to_book_direct_with_hotels/

Alix Waldis:http://www.newmediatrendwatch.com/world-overview/91-online-travel-market?start=1

2014 Monthly Rack RatesMarch April

Weekday Weekend Weekday

230 155 245

270 240 290

360 290 375

550 550 550


2018

268.17

2.02%

73%

CAD 10,789,216.36

Distribution Mix

Demand Share by Channel in Canada - 2013Costs %




-

15%

14%

24%

28.50%

30%

46%

20%

The Elysium's Distribution ChannelsAlthough, The Elysium will not have a particularly high same-day booking rate, The Elysium expects to have a large proportion

of direc booking via the RFP forms for meetings, group bookings, ecause business travelers are more attracted by loyalty programmes and special services or amenities,

Because a majority business travelers, in particular unmanaged business travelers, are keener on booking their hotels by themselves via hotel's website so to enhance their business journey, The Elyseum will put all efforts on encouraging online bookings primarily through its website while installing upselling process to increase revenue. It will provide all necessary

information on the accomodation offers & services as well as packages with upgrading possibilities, .Although the proportion of Voice booking is only 13%, the contribution to the revenue exceeds 17%. The main reason for that is that upselling works at best in voice booking to produce ancillary revenues. Furthermore, the upscale independent hotels

sell their rooms at the highest rates via Voice booking. Therefore, The Elysium will enhance direct booking and revenue




2018 Average

52% 46%

25% 18%

10% 7%

5% 19%

8% 10%

Because The Elysium's primary target market consist of business travelers, OTAs will help settling the hotel in its competitive environment and provide it with visibility at a larger scale. However, because OTAs have reached their maturity in North

America and slowed down their growth, The Elysium is expecting to sell less rooms via OTAs. It will therefore help maximising revenue and favor upselling in the direc booking process.

GDSs remain an important retailer in the business hotel market because it provide hotels with a visibility on the global market. According to STR, GDS are expected to provide hotels with business from the Asian market, appealing to small corporate

account and meeting & events. As Asia is expected to be the major upcoming segment in Canada, this channel is relevant to



Segmentation

Homogeneous

Compatible

Measurable

Substantial

Accessible

Actionable

PricingForecast

Monthly and Yearly ADR

2014 Monthly RacK Rates

Alix Waldis:Measures are based on 2012's numbers with adding +3% for 2013 according to the forecast of PKF (PKF Consulting Inc. 2011) and +4% for 2014 according to the forecast of for the growth in demand in Calgary Downtown.


Identifiable

Client Mix Forecast


Alix Waldis:Deloitte, p. 7-8, 2013. Retrieved October 23rd from http://www.deloitte.com/assets/Dcom-Canada/Local%20Assets/Documents/CB/ca_en_navigate_summer_2013_06112013.pdf

Alix Waldis:According to PKF, 43% of the Canadian companies expect their business travel volume to grow in the coming years.Calgary is expected to produce by 2020 a fifth of the global production in oil.

Alix Waldis:Canadian Tourism Commission, p. 13, 2012. Retrieved October 23rd, 2013 from http://en-corporate.canada.travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/US%202009%20Market%20Profile_EN.pdf


Remarks

Domestic businesses expect their business travel volume to increase in the following years. In parallel with the economic growth, especially in the gas & oil

industry, Calgary's growth in demand is expected to be driven mostly by commercials.

We expect our hotel to increase their contracts with surrounding head offices while offering contract rates to

its repeated customers. Therefore, we expect a constant increase in the Gov. Segment in the 4 first

years to slow down by the end of 2018.

The # of meetings and the # of attendees per meeting is expected to grow steadily according to PKF. 44% of

the meeting planners mentioned they will shift away from luxury resorts & hotels towards upscale hotel.

Furthermore, the repositioning of Calgary as a MICE destination will increase the marketshare within the

MICE segment.

Within the business market, the extended stay is the segment that grows the most rapidly and is one of the most profitable. The Elysium expects this segment to

increase. This will also increase the occupancy over the week-ends as those segment appreciate mixing leisure

with business.


Alix Waldis:Jackson, J. (2012). Calgary Hotel Association, Destination Marketing Fund, Stategic Marketing Plan 2013-2015, p. 9.



Because of our strong positioning as a business hotel, we expect solo travelers to decrease in our client mix

Parallel with the new positioning of Calgary and more specifically Dowtown as a destination for Leisure

vacation in itself, we expect the SMERF to increase in purchasing volume.

Because the business segment in Calgary is expected to have the largest growth in demand, our client mix will

move towards a larger business segment against a smaller leisure segment.



Average Length of StayLeisure

Length of stay Segment Proportion1 48%2 27%3 10%4 15%

Total 100%

1.92

PRICING

LeisureSolo Couples SMERFE

Data Not Available

250 270 2505% 5% 10%

5 5 10

Because the business segment in Calgary is expected to have the largest growth in demand, our client mix will

move towards a larger business segment against a smaller leisure segment.



LeisureSolo Couples SMERFE

Data Not Available

270 290 2705% 10% 10%

2 4 4

Leisure

Solo Couples SMERFE

Data Not Available

370 390 33010% 35% 20%

1 3 2

Based on our competition analysis, we fixed a rate not yieldable throughout the year.Based on our occupancy forecast for 2014 (please see below), we do not expect an occupancy rate over 25% as this product is targeted for a tiny part of the leisure market.


Monthly Ocuupancy Rate for 2014August September October

71.91% 83.66% 76.48%


28.8 33.5 30.66.5 7.5 6.9

0.25 0.25 0.25

Average Monthly ADR per CategoryAugust September October

209 241.5 202268 292 248345 359 311550 550 550

234 263 222

2014 Monthly Rack RatesApril May


160 270 175

240 310 250

310 400 310

550 550 550

Business Market

Commercial Gov. MICE

All segments are compatible because, while their date stay (weekdays VS. Week-ends & holidays VS. Middle season) are complementary, their expectations in hotel's design and features cohere with one another.

1039176

Yes, their major reason to travel to Clagary is business. they seek safe place to stay and conveniently located for business while expecting to have the possibility to enjoy state-of-the-art facilities. Technology plays a key role and must be available onsite in whatever

form.

Out of the 150 corporate head offices producing over CAD 1 billion$ of revenue, 100 are located in Downtown. Furthermore, the business segments is expected to consistently grow due to positive forecast in Calgary's economy and the Gas&Oil industry.

Since Calgary Downtown is the business center of the city and the business hub of Western Canada, business travelers consist of its main market seeking accomodations conveniently located next to convention centers & head quarters, easily accessible by car. Full

service facilities are at the top of the favourite types of accomodation. The upscale services with complimentary hot breakfast, free Wifi, 24H business center and reseraation center, the Express check-in/out will enhance business's travelrs experience with all elements for

high productivity.

Criteria when selecting a hotel: complimentary Wifi, full service accomodation, complimentary hot breakfast, work area in the room (desk and ergonomic chairs), on-site restaurants.

2014 Monthly RacK Rates

ADR Forecast 2015-2018

Distibution Mix

Alix Waldis:Measures are based on 2012's numbers with adding +3% for 2013 according to the forecast of PKF (PKF Consulting Inc. 2011) and +4% for 2014 according to the forecast of for the growth in demand in Calgary Downtown.

Client Mix by Volume (over 5 years)

Last minute bookers, 50% of them travel alone and come by

car. 90% of them book full-board.

Last minute bookers, their stay is often booked by the surrounding

companies & head quarters.

MICE are identifiable because of the larger parties. They

require meeting facilities as well as technological

equipment.

47%

5%

17%

11%

3%

6%

10%

Client Mix by Volume

Commercial

Gov.

MICE

Extended Stay

Solo

Couples

SMERFE



47%

5%

17%

11%

3%

6%

10%


Commercial

Gov.

MICE

Extended Stay

Solo

Couples

SMERFE


Alix Waldis:Jackson, J. (2012). Calgary Hotel Association, Destination Marketing Fund, Stategic Marketing Plan 2013-2015, p. 9.



Pricing MethodologyThe objective for the pricing strategy was a return on investment strategy. After a carefull analysis of the induced demand (Please refer to the section Methodology in the Supply & Demand section), the forecasts clearly show that the demand for roomnights in Calgary Downtown will grow by an average of +4% in the coming years.Based on a detailed benchmark and environmental analysis, the conclusions for the demand are the following: - Today's traveler is looking for more value for money. Therefore, price-consciousness play a crucial role in the booking process. A clear positioning on the added value by the Elysium will come across it. - Calgary demand is subject to seasonality with high demand from commercials and MICE in Spring and Fall and peak season for the leisure market in summer due to the on-going cultural events. - Today's requirement in terms of service and facilities are up-to-date technological features (complimentary High Speed Wifi), seek for an insight in the local culture. Hotels are challenged in their involvement within the surrounding community and an environment encouraging productivity.- Business travellers also favour full-service facilities including on-site dining, health center (fitness & swimming-pool), business center, meeting & events venues. After an estimation of the costs, the pricing strategy that was selected was to match the competitive set based on the benchmark analysis. As the Elysium is an independent hotel, we therefore chose to offer rooms at a rate of 10% higher than our branded competitors offering more value for money than Hotel Elan as we have a more extended range of service.In conclusion, the matching strategy will allow us to maximise our future sales growth.



Monthly Ocuupancy Rate for 2014November December

75.44% 54.44%

Daily Average Room Breakdown Yearly average

75 54 67.530.2 21.8 27.0

6.8 4.9 6.10.25 0.25 0.3

Average Monthly ADR per CategoryNovember December Yearly average

212.5 195 228.58224 224 270.33309 309 344.29550 550 550

222 211 247.53

2014 Monthly Rack RatesJune July


270 175 370

330 270 400

400 310 440

550 550 550

Business Market Leisure Market

Extended Stay Solo Couples


Yes, their major reason to travel to Clagary is business. they seek safe place to stay and conveniently located for business while expecting to have the possibility to enjoy state-of-the-art facilities. Technology plays a key role and must be available onsite in whatever

While expecting more value for money, leisure segments seek conveniently located accomodations to attend the various sports and cutural event on hand. They can afford upscale accomodations and

technology is also important to them

Out of the 150 corporate head offices producing over CAD 1 billion$ of revenue, 100 are located in Downtown. Furthermore, the business segments is expected to consistently grow due to positive forecast in Calgary's economy and the Gas&Oil industry.

With the repositioning of Downtown Calgary as a hub for leisure, the # of events is expected to increase. The previous business center is already on the way to become a week-end destination for

entertainment seekers.

Since Calgary Downtown is the business center of the city and the business hub of Western Canada, business travelers consist of its main market seeking accomodations conveniently located next to convention centers & head quarters, easily accessible by car. Full

service facilities are at the top of the favourite types of accomodation. The upscale services with complimentary hot breakfast, free Wifi, 24H business center and reseraation center, the Express check-in/out will enhance business's travelrs experience with all elements for

Since the major reasons for leisure travel to Calgary are the many sports and cultural events throughout the year, The Elysium boast an outstanding accommodation place in Calgary Downtown's

heart. Moreover, the upscale services in state-of-the-art facilities will enhance customers' experience at an affordable price. Free Wifi to share their experience on the social medias, Fitness facilities, Concierge service to add the extra touch to their journey, on-site dining facilities with an dining

experience that take them on a journey to Asia.

Criteria when selecting a hotel: complimentary Wifi, full service accomodation, complimentary hot breakfast, work area in the room (desk and ergonomic chairs), on-site restaurants.

Only a few steps away from Calgary's largest event venues and main points of interest, the convenient location of the hotel in the heart of Downtown offers upscale services at affordable prices and a

boutique identity.

Distibution Mix

Client Mix by Volume (over 5 years)

Their accomodation will be booked by the head quarters

or the offices based in Calgary Downtown.

47%

5%

17%

11%

3%

6%

10%


Commercial

Gov.

MICE

Extended Stay

Solo

Couples

SMERFE

47%

5%

17%

11%

3%

6%

10%


Commercial

Gov.

MICE

Extended Stay

Solo

Couples

SMERFE



Average Monthly ADR per CategoryTarget

200230300400

2014 Monthly Rack RatesJuly August


370 230 160

400 280 240

440 360 310

550 550 550

Leisure Market

SMERFE


While expecting more value for money, leisure segments seek conveniently located accomodations to attend the various sports and cutural event on hand. They can afford upscale accomodations and

technology is also important to them

With the repositioning of Downtown Calgary as a hub for leisure, the # of events is expected to increase. The previous business center is already on the way to become a week-end destination for

entertainment seekers.

Since the major reasons for leisure travel to Calgary are the many sports and cultural events throughout the year, The Elysium boast an outstanding accommodation place in Calgary Downtown's

heart. Moreover, the upscale services in state-of-the-art facilities will enhance customers' experience at an affordable price. Free Wifi to share their experience on the social medias, Fitness facilities, Concierge service to add the extra touch to their journey, on-site dining facilities with an dining

experience that take them on a journey to Asia.

Only a few steps away from Calgary's largest event venues and main points of interest, the convenient location of the hotel in the heart of Downtown offers upscale services at affordable prices and a

boutique identity.

2014 Monthly Rack RatesSeptember October


270 175 220

310 250 260

380 310 320

550 550 550

2014 Monthly Rack RatesOctober November


160 235 160

220 230 210

290 330 260

550 550 550

2014 Monthly Rack RatesDecember

Average RateWeekday Weekend

210 160 215

230 210 263

330 260 332

550 550 550

Human Resource Function


Year Delta GDP Inflation

2008 0.70% 2.40%

2009 -2.80% 0.30%

2010 3.20% 1.80%

2011 2.53% 2.66%

2012 1.71% 0.94%

2013 1.61% 1.51%

2014 2.16% 1.75%

2015 2.43% 2.02%

2016 2.47% 2.02%

2017 2.39% 2.02%

2018 2.20% 2.02%

2019 2.37% 2.02%

Head Count of FTE

Positions

The Elysium, Downtown Calgary's corporate culture is the base for attracting and retaining its eployees on a long-term basis. The values and beliefs of the company shape the employees’ way of interacting with each other and how they communicate these to their external environment. The Elysiium provides its employees with the necessary tools in order to succeed in delivering quality work and fostering constant personal growth.

Human Resources Function

General Economic

Projections

Alix Waldis:Data retrieved October 5th, 2013 from imf.com

Alix Waldis:Retrieved October 5th, 2013 from imf.com





http://www.bclaws.ca/Recon/document/ID/freeside/00_96113_01#section52 this web had information of bereavement leave, including defination, salary, entitlement and proceeding information/

http://humanservices.alberta.ca/working-in-alberta/1472.html

Senior Management General Manager

Sales & Marketing Sales & Marketing Manager

Sales Executives

Revenue Manager

Human ResourcesHuman Reources Manager

Human Resoursce Assistant

FinanceChief Accountant

Auxiliary Accountant

Rooms Division

Front Office Manager

Receptionist/Night Auditor

Security Personnel

Head of Housekeeping

Public Areas Attendant

Housekeeping Supervisor

Bellboy

Room Attendant

Life Guard

Maintenance and IT Supervisor

Food & Beverage

F&B Manager

Restaurant/ Bar Supervisor

Hostess/Cashier



Food & Beverage

Waiter/Waitress

Bartender

Excutive Chef

Sous Chef

Cooks

Stewards

Total Number of Employees Employed

Human Resources Hierarchy Flow Chart

HR Leave Policy



HR Leave PolicyType of Leave

Earned Leave

Casual Leave

Sick Leave

Maternity Leave

http://www.qp.alberta.ca/1266.cfm?page=E09.cfm&leg_type=Acts&isbncln=9780779725663this employment standards code of Alberta contains details of Barned leave and Casual leave, raning from eligible to proceeding information.

http://www.qp.alberta.ca/1266.cfm?page=E09.cfm&leg_type=Acts&isbncln=9780779725663this employment standards code of Alberta contains details of Barned leave and Casual leave, raning from eligible to proceeding information.

for the Sick leave the referrence has been taken from the following websites for Alberta. http://alis.alberta.ca/pdf/cshop/rightresponse.pdfhttp://www.slsedmonton.com/civil/employment-law/#Sickness



Maternity Leave

Paternity Leave

Personal Leave of Absence

Bereavement Leave

Paid National and Festive Holidays


There are two websites should be considered.http://www.workershelp.ca/leaveofabsence.asp

this website contain the information about maternity and parental leave of eligibility of employees, entitlement etc.

http://humanservices.alberta.ca/working-in-alberta/1473.html This web contains eligible and salary condition and length of the Maternity and Parental leave






Paid National and Festive Holidays

Human Resources FTE Payroll

Senior Management

General Manager

Total Sales & Marketing

Marketing & Sales Manager

Sales Excutives

Revenue Manager

Total Human Resources

Human Resources Manager

Human Resources Assistant

Total Finance

Chief Accountant


Total Room Division



Security Personnel



Room Attendant


Bellboy

Lifeguard

Maintenance and IT supervisor

Total F&B





monthly salary is based on three websites

https://www.go2hr.ca/about/media-room/salaries

http://www.salaryexplorer.com/salary-survey.php?job=28&jobtype=1&loctype=1&loc=38

http://www.workingincanada.gc.ca/LMI_report_area.do?reportOption=wage&PROVINCE_ID=35&GEOAREA_CD=9219&selectLocation=Continue

F&B Manager

Restaurant/Bar Supervisor

Host/Hostess

Waiter/Waitress

Bartender

Excutive Chef

Sous Chef

Cooks

Stewards

Grand Total

Social Charges

Employee

Pension Plan 4.95%

Total 4.95%

Total Management

General Manager

Total Sales & Marketing

Sales & Marketing Manager

Sales Excutives

Revenue Manager

Total Human Resources

Human Resources Manager

Human Resources Assistant

Total Finance

Chief Accountant






Total Room Division



Security Personnel



Room Attendant


Bellboy

Lifeguard

Maintenance and IT supervisor

Total F&B

F&B Manager

Restaurant/Bar Supervisor

Host/Hostess

Waiter/Waitress

Bartender

Excutive Chef

Sous Chef

Cooks

Stewards

Total

Bonuses Increased by Inflation ratePaid Leave and Public Holiday increased by Inflation rate

Outsourced Employees

Employee Outsourcing For BanquetsDepartment Position

Food Service Waiter

Department Position

Food Service Waiter

Monthly Cost of Outsourcing - 2014Base Salary

Waiter CAD 80.00

Monthly Head Count

Waiter

Yearly Costs for Outsourcing - 5 year forecastBase Salary

Waiter CAD 80.00

Yearly Head Count

Waiter

The Elysium, Downtown Calgary - Balance Scorecard

Perspective

Financial

Explanation for Amount of Waiters/Waitresses Outsourced:Accodring to conference & banqueting industry standards, you need approximately 1 waiter for every 25 people ("Food and Beverage," 2010) for a sit down banquet.

Since the maximum capacity for our conference and banqueting space is 700 people (since we have 900 sqmt), we would need to outsource a maximum of 28 waiters for a sit down banquet at full capacity.

Depending on seasonality, high/low, we would outsource waiters to serve at small meetings/conferences. For example if it's low season and we have a meeting scheduled at our conference center we would have our FTE Waiters serve. But if high season the minimum service we would outsource would be 2 waiters (for 50 pax. meetings).

http://www.associationandmeetings.com/forms/foodandbeveragetips.pdf





Hourly salary is CAD 10 for an 8 hour shift.

Calculated in accordance to total covers per month, forecasted by Banqueting & Conference Department, and industry standards stated above under Outsourced Employees.


Forecast a 10% growth each year.

Customer

Internal Business Process

Learning and Growth

Job ProfileExplanation for Amount of Waiters/Waitresses Outsourced:Accodring to conference & banqueting industry standards, you need approximately 1 waiter for every 25 people ("Food and Beverage," 2010) for a sit down banquet.









Calculated in accordance to total covers per month, forecasted by Banqueting & Conference Department, and industry standards stated above under Outsourced Employees.


Forecast a 10% growth each year.

Job Description









Summary of Salaries Expense

Includes Senior Management, Human Resources and Finance.

Includes Outsourced employees, Paid Leave and Bonuses.




Monthly Summary of Salaries - 2014

Total Admin and General

Total Sales and Marketing

Total Rooms Division

Total F&B

Total Other

Grand Total

Yearly Summary of Salaries -2014-18

Total Admin and General

Total Sales and Marketing

Total Rooms Division

Total F&B

Total Other

Grand Total

% of Other HR expense

Daily Distribution of StaffMorning Shift

Rooms Division Staffing

Front Office Manager 0.5

Receptionist/Night Auditor 2

Head of Housekeeping 0.5

Housekeeping Supervisor 1

Room Attendant 11

Public Area Attendant 1

Bellboy 2





Lifeguard -

IT and Maintainence -

Security Personnel 1

F&B Staffing

F&B Manager 0.5Restaurant/Bar Supervisor 0.5

Hostess/Cashier 0.5Waiter 6

Bartender -Executive Chef -

Sous Chef 1Cooks 3

Stewards 1Administrative Staffing

General Manager 0.5Revenue Manager 0.5

Sales & Marketing Manager 0.5Sales Executive 1

HR Manager 0.5HR Assistant 0.5

Chief Accountant 0.5Auxillary Accountant 0.5

Operating BudgetHuman Resource Benchmark Expenses

Admin (includes compensation & other benefits)

Tarining and E-Learning

Recruitment Costs

Management and Working Conditions

Performance Appraisal

Internal Communication

Career Development and HR Planning

Stakeholder Management

Total

The calculations for the Human Resource expences to create a benchmark was taken from our learning in class (Kim, 2013)For the long term business Training and E-Learning is an important part for People Development (i.e HR) as the Elysium strives to acheive an unprecidented standard of service and provide its employees with adequate tools for them to facilitate personal growth. Also a large percentage of the expense goes to the recruitment cost as The Elysium endeavours to employ only the personell most suited for the job requirement. This sometimes can be time consuming, hence leading to greater costs.

Total Human Resource Expense

2014

Salary Expense CAD 2,976,315.62

Other HR Expenses CAD 137,572.76

Breakdown

CAD 35,768.92

Tarining and E-LearningCAD 31,641.73

Recruitment CostsCAD 15,133.00

Management and Working ConditionsCAD 13,757.28

Performance AppraisalCAD 12,381.55

Internal CommunicationCAD 11,005.82

Career Development and HR PlanningCAD 9,630.09

Stakeholder ManagementCAD 8,254.37

Total Other Expenses CAD 137,572.76

Pre Opening Expense Salaries

Positions Monthly Total Salary

Senior Management CAD 8,605.00General Manager CAD 8,605.00

Sales & Marketing CAD 19,025.00Sales & Marketing Manager CAD 4,333.00Sales Executives CAD 7,692.00Revenue Manager CAD 7,000.00

Human Resoursce CAD 13,388.00Human Reources Manager CAD 5,692.00Human Resoursce Assistant CAD 7,696.00

Finance CAD 8,020.00Chief Accountant CAD 5,313.00Auxiliary Accountant CAD 2,707.00

Admin (includes compensation & other benefits)

Rooms Division CAD 87,680.90Front Office Manager CAD 4,589.00Receptionist/Night Auditor CAD 19,919.90Security Personnel CAD 4,884.00Head of Housekeeping CAD 3,000.00Public Areas Attendant CAD 4,440.00Housekeeping Supervisor CAD 22,716.00Bellboy CAD 5,679.00Room Attendant CAD 5,679.00Life Guard CAD 8,000.00Maintenance and IT Supervisor CAD 8,774.00

Food & Beverage CAD 70,045.00F&B Manager CAD 4,067.00Restaurant/ Bar Supervisor CAD 6,150.00Hostess/Cashier CAD 4,000.00Waiter/Waitress CAD 22,716.00Bartender CAD 6,000.00Excutive Chef CAD 4,849.00Sous Chef CAD 3,333.00 Cooks CAD 11,358.00Stewards CAD 7,572.00

Pre-Opening ExpensesPre-Opening Salary

Pre-Opening Other HR ExpensesBreakdown

Training and E-Learning 40%Recruitment 55%

Safety & Hygiene 5%

Total other Pre-Opening Expenses 100%

Total Pre-Opening Expenses



Delta FX Uemployement Rate Economy Growth

0.09% 3.50% 5.10%

5.99% 6.30% -0.50%

-9.19% 7.00% 4.20%

-9.19% 6.50% 4.00%

-3.79% 5.10% 4.10%

1.11% 4.90% 4.30%

0.97% 4.80% 4.20%

0.96% 4.20% 4.10%

0.96% 3.80% 4.20%

1.00% 3.80% 4.20%

0.97% 4.15% 4.18%

0.97% 3.99% 4.17%

Head Count of FTE

Positions Headcount 2014


General Economic

Projections

Occupancy Forecast

Head Count of FTE

HR Hierarchy Flow Chart







General Manager 1

Sales & Marketing Manager 1

Sales Executives 2

Revenue Manager 1

Human Reources Manager 1

Human Resoursce Assistant 2

Chief Accountant 1

Auxiliary Accountant 1

Front Office Manager 1

Receptionist/Night Auditor 7

Security Personnel 2

Head of Housekeeping 1

Public Areas Attendant 3

Housekeeping Supervisor 2

Bellboy 3

Room Attendant 12

Life Guard 2

Maintenance and IT Supervisor 2

F&B Manager 1

Restaurant/ Bar Supervisor 2

Hostess/Cashier 2



Waiter/Waitress 12

Bartender 3

Excutive Chef 1

Sous Chef 1

Cooks 6

Stewards 4

Total Number of Employees Employed 77


HR Leave Policy



HR Leave PolicyEligibility

All regular, full-time employees who has worked for the same employer for 30 work days or more in the 12 months preceding the general holiday are eligable for earned leave.An employee is not entitled to general holiday pay if the employee does not work on a

general holiday when required or scheduled to do so, or is absent from employment without the consent of the employer on the employee’s last regular work day preceding, or the employee’s first regular work day following, a general holiday.

An employee becomes entitled to an annual vacation of at least 2 weeks after each of the first 4 years of employment, and 3 weeks after 5 consecutive years of employment and each year of employment after that.

Though not required by Law, The Elysium provides sick leave to its employees. The Employee must provide a valid medical certificate from a doctor/clinic approved by the hotel's HR.

Maternity leave is a statuory leave. All women employees are entitled to maternity benefits. The conditions that apply is the following: A pregnant employee who has been employed by an employer

for at least 52 consecutive weeks.




All permament male emplyees are eligible for paternity leave.

9 National holidays shall be announced before the beginning of each financial year. Below is the list of proposed public holidays for 2014.Holiday

New Year’s DayAlberta Family DayGood FridayVictoria DayCanada DayLabour Day


for at least 52 consecutive weeks.

An employee who is entitled to personal emergency leave can take up to 10 days of unpaid leave due to:Personal illness, injury or medical emergency,or Death, illness, injury, medical emergency or urgent matter relating to the following family members:A

spouse*;A parent, step-parent, foster parent, child, step-child, foster child, grandparent, step-grandparent, grandchild or step-randchild of the employee or the employee's spouse;The spouse of an employee's child;A brother or sister of the employee;A relative

of the employee who is dependent on the employee for care or assistance.

Employees are eligible in the event of the death of an immediate family member (defined as a member of an employee's immediate family, and any other individual who is a member of a prescribed class.).










Thanksgiving DayRemembrance DayChristmas Day


Salaries per Employee and Salary Forecast for next 5 years

Base Salary per Month

Senior Management CAD 8,605.00

General Manager CAD 8,605.00

Total Sales & Marketing CAD 15,179.00

Marketing & Sales Manager CAD 4,333.00

Sales Excutives CAD 3,846.00

Revenue Manager CAD 7,000.00

Total Human Resources CAD 9,540.00

Human Resources Manager CAD 5,692.00

Human Resources Assistant CAD 3,848.00

Total Finance CAD 8,020.00

Chief Accountant CAD 5,313.00

Auxiliary Accountant CAD 2,707.00

Total Room Division CAD 29,162.70

Front Office Manager CAD 4,589.00

Receptionist/Night Auditor CAD 2,845.70

Security Personnel CAD 2,442.00

Head of Housekeeping CAD 3,000.00

Housekeeping Supervisor CAD 2,220.00

Room Attendant CAD 1,893.00

Public Areas Attendant CAD 1,893.00

Bellboy CAD 1,893.00

Lifeguard CAD 4,000.00

Maintenance and IT supervisor CAD 4,387.00

Total F&B CAD 25,003.00









F&B Manager CAD 4,067.00

Restaurant/Bar Supervisor CAD 3,075.00

Host/Hostess CAD 2,000.00

Waiter/Waitress CAD 1,893.00

Bartender CAD 2,000.00

Excutive Chef CAD 4,849.00

Sous Chef CAD 3,333.00

Cooks CAD 1,893.00

Stewards CAD 1,893.00

Grand Total CAD 95,509.70

Social Charges

Employer

Pension Plan 4.95%

Worker's Compensation 0.89%

Total 5.84%

Monthly Payroll Breakdown for 2014

Head Count Annual Salary

Total Management 1 CAD 103,260.00

General Manager 1 CAD 103,260.00

Total Sales & Marketing 4 CAD 182,148.00

Sales & Marketing Manager 1 CAD 51,996.00

Sales Excutives 2 CAD 46,152.00

Revenue Manager 1 CAD 84,000.00

Total Human Resources 3 CAD 114,480.00

Human Resources Manager 1 CAD 68,304.00

Human Resources Assistant 2 CAD 46,176.00

Total Finance 2 CAD 96,240.00

Chief Accountant 1 CAD 63,756.00

Auxiliary Accountant 1 CAD 32,484.00





The Social contributions are taken from the Canadian government website from the section canadian revenue agency.

http://www.cra-arc.gc.ca/vdgllry/bsnss/srs-pyrll-eng.html?clp=bsnss/srs-pyrll7-eng

Total Room Division 35 CAD 349,952.40

Front Office Manager 1 CAD 55,068.00

Receptionist/Night Auditor 7 CAD 34,148.40

Security Personnel 2 CAD 29,304.00

Head of Housekeeping 1 CAD 36,000.00

Housekeeping Supervisor 2 CAD 26,640.00

Room Attendant 12 CAD 22,716.00

Public Areas Attendant 3 CAD 22,716.00

Bellboy 3 CAD 22,716.00

Lifeguard 2 CAD 48,000.00

Maintenance and IT supervisor 2 CAD 52,644.00

Total F&B 32 CAD 300,036.00

F&B Manager 1 CAD 48,804.00

Restaurant/Bar Supervisor 2 CAD 36,900.00

Host/Hostess 2 CAD 24,000.00

Waiter/Waitress 12 CAD 22,716.00

Bartender 3 CAD 24,000.00

Excutive Chef 1 CAD 58,188.00

Sous Chef 1 CAD 39,996.00

Cooks 6 CAD 22,716.00

Stewards 4 CAD 22,716.00

Total 77 CAD 1,146,116.40

Paid Leaves and Public HolidayBonuses

Final Total

2014Bonuses Increased by Inflation rate CAD 48,760.00

Paid Leave and Public Holiday increased by Inflation rate CAD 45,932.76




The Elysium pays all Earned Leave and Public Holidays Collectively in the month of June.The Elysium pays all Bonuses collectively at the end of the year in December.

Employee Outsourcing For BanquetsPosition Minimum per Event

Waiter 2

Position Maximum per Event

Waiter 28

Monthly Cost of Outsourcing - 2014Base Salary January 2014

CAD 80.00 CAD 0.00

January 2014

0

Yearly Costs for Outsourcing - 5 year forecastBase Salary Cost for 2014

CAD 80.00 CAD 42,880.00

2014

536


Strategic Objective

Maximize revenue per department, eliminate time consuming tasks and reduce the time it takes to carry out specific tasks and increase upselling.










Hourly salary is CAD 10 for an 8 hour shift.Hourly salary is CAD 10 for an 8 hour shift.

Maximize customer satisfaction, create customer loyalty and retention.

Job Profile

Maximize employee satisfaction in order to reduce turnover rate, decrease recruitment costs (linked to lower turnover rate) and improve Aloft LAX's reputation as an employer of choice.

Improve training programs and maximize their effectiveness, improve internal communications and encourage personal growth of employees, identify high potential employees and offer possibilities of internal promotions.









Hourly salary is CAD 10 for an 8 hour shift.Hourly salary is CAD 10 for an 8 hour shift.

Job Description












January 14 February 14 March 14

CAD 30,013.00 CAD 30,013.00 CAD 30,013.00

CAD 19,025.00 CAD 19,025.00 CAD 19,025.00

CAD 87,680.90 CAD 87,680.90 CAD 87,680.90

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 0.00 CAD 2,640.00 CAD 2,640.00

CAD 206,763.90 CAD 209,403.90 CAD 209,403.90


Salary Expense 2014 Salary Expense 2015

CAD 415,841.28 CAD 424,989.79

CAD 262,739.61 CAD 268,519.88

CAD 1,199,944.74 CAD 1,226,343.53

CAD 960,217.22 CAD 981,342.00

CAD 137,572.76 CAD 143,944.00

CAD 2,976,315.62 CAD 3,045,139.21

4.6% 4.7%

Daily Distribution of StaffMorning Shift Afternoon Shift


0.5 0.5

2 2

0.5 0.5

1 1

11 4

1 2

2 1

- 1

- 1

1 1

F&B Staffing

0.5 0.50.5 0.50.5 0.56 4- 1- 0.51 -3 21 1

Administrative Staffing0.5 0.50.5 0.50.5 0.51 1

0.5 0.50.5 0.50.5 0.50.5 0.5

Operating BudgetHuman Resource Benchmark Expenses Total Other HR Expense

26% 2014

23% 2015

11% 2016

10% 2017

9% 2018

8% Average

7%

6%

100%



2015 2016 2017

CAD 3,045,139.21 CAD 3,115,811.37 CAD 3,188,406.24

CAD 143,944.00 CAD 150,789.87 CAD 158,154.26

Breakdown

CAD 37,425.44 CAD 39,205.37 CAD 41,120.11

CAD 33,107.12 CAD 34,681.67 CAD 36,375.48

CAD 15,833.84 CAD 16,586.89 CAD 17,396.97

CAD 14,394.40 CAD 15,078.99 CAD 15,815.43

CAD 12,954.96 CAD 13,571.09 CAD 14,233.88

CAD 11,515.52 CAD 12,063.19 CAD 12,652.34

CAD 10,076.08 CAD 10,555.29 CAD 11,070.80

CAD 8,636.64 CAD 9,047.39 CAD 9,489.26

CAD 143,944.00 CAD 150,789.87 CAD 158,154.26


Monthly Total Salary Pre-Opening Months

CAD 8,605.00 2CAD 8,605.00 2

CAD 19,025.00 5CAD 4,333.00 1CAD 7,692.00 2CAD 7,000.00 2

CAD 13,388.00 4CAD 5,692.00 2CAD 7,696.00 2

CAD 8,020.00 2CAD 5,313.00 1CAD 2,707.00 1

The estimation of arrival of the staff has been take according to HVS guide (HVS, 2001) on Pre-Opening.The management staff ideally arrives 8-6 weeks prior to opening and the operational staff arrives 2-4 weeks before the opening. We estimated the arrival time for management for opening staff to be 2 months and for the junior management it is estimated at 1 month to 15 days.

We include only the relevant factors from the Benchmark, that relate to pre-opening expenses. We then modified the percentages according to what we predict will be most costly based on our research(HVS, 2001).

Since there would be no Outsourcing expense until January, The other expense is assumed at 4%.

CAD 87,680.90 5.5CAD 4,589.00 1CAD 19,919.90 0.5CAD 4,884.00 0.5CAD 3,000.00 0.5CAD 4,440.00 0.5CAD 22,716.00 0.5CAD 5,679.00 0.5CAD 5,679.00 0.5CAD 8,000.00 0.5CAD 8,774.00 0.5

CAD 70,045.00 5.5CAD 4,067.00 1CAD 6,150.00 0.5CAD 4,000.00 0.5CAD 22,716.00 0.5CAD 6,000.00 0.5CAD 4,849.00 1CAD 3,333.00 0.5CAD 11,358.00 0.5CAD 7,572.00 0.5

24

Pre-Opening ExpensesCAD 171,338.45

CAD 6,853.54Breakdown

CAD 2,741.42CAD 3,769.45CAD 342.68

CAD 6,853.54

CAD 178,191.99


We include only the relevant factors from the Benchmark, that relate to pre-opening expenses. We then modified the percentages according to what we predict will be most costly based on our research(HVS, 2001).

Since there would be no Outsourcing expense until January, The other expense is assumed at 4%.

During the pre opening period, the largest share will be spent on Recruitment. As new hotel, the key for a successful HR is to find the most appropriate employees to fit in our vision. Once the right talents and skills have been detected, employees will be trained to be ready for the opening and their skills will be further developped at the beginning of the operations (K. Kramer, 2013).



1.80% Occupancy Forecast3.60% January

2.20% 2014 42.10%2.00% 2015

1.50% 2016

1.30% 2017

1.20% 2018

1.10%

1.10%

1.10%

1.20%

0.30%

Head Count of FTE

Headcount 2015 Headcount 2016


Population Growth Calgary

HR Hierarchy Flow Chart

HR Leave Policy

HR FTE Payroll



FTE Overviews are based on the following criteria:

Fixed Criteria:AAA Three Diamond Independent Hotel150 rooms 1 restaurant with 100 place seating 1 bar with 30 place seating 2 Banquet Halls with IT equipment for rental*Hotel open for 365 days a year

Variable Criteria:Percetnage OccupancyQualification Absenteeism-Average two employees hiered per operational level category to cover absentees during high occupancy (Freihofer Kay, 2012 ) .

Labour Deparment, (2012). Government of nct of delhi . Sham Nath Marg, Delhi-54: Labour Department of NCTDelhi.

1 1

1 1

2 2

1 1

1 1

2 2

1 1

1 1

1 1

7 7

2 2

1 1

3 3

2 2

3 3

12 12

2 2

2 2

1 1

2 2

2 2





12 12

3 3

1 1

1 1

6 6

4 4

77 77


HR Leave Policy

HR Leave PolicyEligibility Entitlement

All regular, full-time employees who has worked for the same employer for 30 work days or more in the 12 months preceding the general holiday are eligable for earned leave.An employee is not entitled to general holiday pay if the employee does not work on a

general holiday when required or scheduled to do so, or is absent from employment without the consent of the employer on the employee’s last regular work day preceding, or the employee’s first regular work day following, a general holiday.

If in at least 5 of the 9 weeks preceding the work week in which the general holiday occurs the employee worked on the same day of the week as the day on which the general holiday falls, the

general holiday is to be considered a day that would normally have been a work day for the employee.

An employee becomes entitled to an annual vacation of at least 2 weeks after each of the first 4 years of employment, and 3 weeks after 5 consecutive years of employment and each year of employment after that.

If an employee has a common anniversary date, the employee becomes entitled to an annual vacation , at least 2 weeks’ vacation or a proportionately lesser period of vacation if the employee has been

employed for less than one year;on the 2nd, 3rd, 4th and 5th common anniversary date for at least 2 weeks's vacation. on the 6th,7th common anniversary,r, at least 3 weeks’vacation.

Though not required by Law, The Elysium provides sick leave to its employees. The Employee must provide a valid medical certificate from a doctor/clinic approved by the hotel's HR.

The Employee is entitled upto 10 days of paid sick leave a year.However if the employee is able to work, s/he would be adviced to do so.


The maternity leave to which a pregnant employee is entitled is a period of not more than 15 weeks starting at any time during the 12 weeks immediately

before the estimated date of delivery. And an employee who takes maternity leave must take a period of leave of at least 6 weeks immediately following the date of delivery, unless the employee and her employer agree to shorten the period by the employee’s giving her employer a medical certificate

indicating that resumption of work will not endanger her health.

All permament male emplyees are eligible for paternity leave.

9 National holidays shall be announced before the beginning of each financial year. Below is the list of proposed public holidays for 2014.Holiday Date

New Year’s Day 1 JanuaryAlberta Family Day 17 FebruaryGood Friday 18 AprilVictoria Day 19 MayCanada Day 1 JulyLabour Day 1 September




In the case of an employee entitled to maternity leave , a period of not more than 37 consecutive weeks immediately following the last day of maternity leave; in the case of a parent who has been

employed by the employer for at least 52 consecutive weeks, a period of not more than 37 consecutive weeks within 52 weeks after the child’s birth; and in the case of an adoptive parent who has been

employed by the employer for at least 52 consecutive weeks, a period of not more than 37 consecutive weeks within 52 weeks after the child is placed with the adoptive parent for the purpose of adoption.

An employee who is entitled to personal emergency leave can take up to 10 days of unpaid leave due to:Personal illness, injury or medical emergency,or Death, illness, injury, medical emergency or urgent matter relating to the following family members:A

spouse*;A parent, step-parent, foster parent, child, step-child, foster child, grandparent, step-grandparent, grandchild or step-randchild of the employee or the employee's spouse;The spouse of an employee's child;A brother or sister of the employee;A relative

of the employee who is dependent on the employee for care or assistance.

Employees have the right to take up to 10 days of unpaid job-protected leave each calendar year due to illness, injury and certain other emergencies and urgent matters

Employees are eligible in the event of the death of an immediate family member (defined as a member of an employee's immediate family, and any other individual who is a member of a prescribed class.).

An employee who requests leave under this is entitled to up to 8 weeks of unpaid leave to provide care or support to a family member if a medical practitioner or nurse practitioner issues a certificate stating

that the family member has a serious medical condition with a significant risk of death within 26 weeks.

Thanksgiving Day 13 OctoberRemembrance Day 11 NovemberChristmas Day 25 December



Base Salary per Month Base Salary per Annum

CAD 8,605.00 CAD 103,260.00

CAD 8,605.00 CAD 103,260.00

CAD 15,179.00 CAD 182,148.00

CAD 4,333.00 CAD 51,996.00

CAD 3,846.00 CAD 46,152.00

CAD 7,000.00 CAD 84,000.00

CAD 9,540.00 CAD 114,480.00

CAD 5,692.00 CAD 68,304.00

CAD 3,848.00 CAD 46,176.00

CAD 8,020.00 CAD 96,240.00

CAD 5,313.00 CAD 63,756.00

CAD 2,707.00 CAD 32,484.00

CAD 29,162.70 CAD 349,952.40

CAD 4,589.00 CAD 55,068.00

CAD 2,845.70 CAD 34,148.40

CAD 2,442.00 CAD 29,304.00

CAD 3,000.00 CAD 36,000.00

CAD 2,220.00 CAD 26,640.00

CAD 1,893.00 CAD 22,716.00

CAD 1,893.00 CAD 22,716.00

CAD 1,893.00 CAD 22,716.00

CAD 4,000.00 CAD 48,000.00

CAD 4,387.00 CAD 52,644.00

CAD 25,003.00 CAD 300,036.00





CAD 4,067.00 CAD 48,804.00

CAD 3,075.00 CAD 36,900.00

CAD 2,000.00 CAD 24,000.00

CAD 1,893.00 CAD 22,716.00

CAD 2,000.00 CAD 24,000.00

CAD 4,849.00 CAD 58,188.00

CAD 3,333.00 CAD 39,996.00

CAD 1,893.00 CAD 22,716.00

CAD 1,893.00 CAD 22,716.00

CAD 95,509.70 CAD 1,146,116.40


Annual Salary January

CAD 103,260.00 CAD 8,605.00

CAD 103,260.00 CAD 8,605.00

CAD 182,148.00 CAD 19,025.00

CAD 51,996.00 CAD 4,333.00

CAD 46,152.00 CAD 7,692.00

CAD 84,000.00 CAD 7,000.00

CAD 114,480.00 CAD 13,388.00

CAD 68,304.00 CAD 5,692.00

CAD 46,176.00 CAD 7,696.00

CAD 96,240.00 CAD 8,020.00

CAD 63,756.00 CAD 5,313.00

CAD 32,484.00 CAD 2,707.00







CAD 349,952.40 CAD 87,680.90

CAD 55,068.00 CAD 4,589.00

CAD 34,148.40 CAD 19,919.90

CAD 29,304.00 CAD 4,884.00

CAD 36,000.00 CAD 3,000.00

CAD 26,640.00 CAD 4,440.00

CAD 22,716.00 CAD 22,716.00

CAD 22,716.00 CAD 5,679.00

CAD 22,716.00 CAD 5,679.00

CAD 48,000.00 CAD 8,000.00

CAD 52,644.00 CAD 8,774.00

CAD 300,036.00 CAD 70,045.00

CAD 48,804.00 CAD 4,067.00

CAD 36,900.00 CAD 6,150.00

CAD 24,000.00 CAD 4,000.00

CAD 22,716.00 CAD 22,716.00

CAD 24,000.00 CAD 6,000.00

CAD 58,188.00 CAD 4,849.00

CAD 39,996.00 CAD 3,333.00

CAD 22,716.00 CAD 11,358.00

CAD 22,716.00 CAD 7,572.00

CAD 1,146,116.40 CAD 206,763.90

Paid Leaves and Public Holiday CAD 0.00Bonuses CAD 0.00

Final Total CAD 206,763.90

2015 2016CAD 49,832.72 CAD 50,929.04CAD 46,943.28 CAD 47,976.03





Employee Outsourcing For BanquetsMinimum per event 2014 Minimum per event 2015

2 2

Maximum per Event 2014 Maximum per Event 2015

28 28

Monthly Cost of Outsourcing - 2014February 2014 March 2014

CAD 2,640.00 CAD 2,640.00

February 2014 March 2014

33 33

Yearly Costs for Outsourcing - 5 year forecastCost for 2015 Cost for 2016

CAD 47,168.00 CAD 51,884.80

2015 2016

590 649


Measurement Target/Thresholds

Measure the revenue generated per employee, measure time taken for completing tasks, revenue generated per available seat hour.

Decrease recruitment costs by 1% in 2017, 10% reduction of time taken to complete tasks and increase productivity . Decrease training cost percentage

by 5% over the 5 years as non-management employee turnover rate will decline each year by 5%.


Decrease customer complaints by 2015 by 15% and by 2016 again by 5%.

Job Profile

Measure guest satisfaction by using customer surveys, observing tripadvisor reviews and managing and evaluating Starwood's own in-house guest reviews.

Create accurate employee surveys, hold performance appraisal interviews with staff on a frequent basis, create clear and approriate job profiles and job descriptions.

Increase employee statisfaction by 10% by 2015, decrease turnover rate by 5% each year until 2018 and decrease absence rates of non-management

employees from 3.8 days in 2014 to 2.43 in 2018.

Measure training success by comparing customer complaints before and after the trainings and by reviewing the employee productivity.

Provide 100% of employees with their position suitable training in their first year of employment and recruit 30% of the vacant positions from within the

hotel. Further, a 10% increase of customer satisfaction survey score by 2015 is desirable.

Job Description




April 14 May 14 June 14 July 14

CAD 30,013.00 CAD 30,013.00 CAD 30,013.00 CAD 30,013.00

CAD 19,025.00 CAD 19,025.00 CAD 19,025.00 CAD 19,025.00

CAD 87,680.90 CAD 87,680.90 CAD 87,680.90 CAD 87,680.90

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 5,520.00 CAD 6,560.00 CAD 51,452.76 CAD 2,640.00

CAD 212,283.90 CAD 213,323.90 CAD 258,216.66 CAD 209,403.90


Salary Expense 2015 Salary Expense 2016 Salary Expense 2017

CAD 424,989.79 CAD 434,339.57 CAD 443,895.04

CAD 268,519.88 CAD 274,427.32 CAD 280,464.72

CAD 1,226,343.53 CAD 1,253,323.09 CAD 1,280,896.19

CAD 981,342.00 CAD 1,002,931.53 CAD 1,024,996.02

CAD 143,944.00 CAD 150,789.87 CAD 158,154.26

CAD 3,045,139.21 CAD 3,115,811.37 CAD 3,188,406.24

4.7% 4.8% 5.0%

Daily Distribution of StaffEvening/Night Shift Total


- 1

1 5

- 1

- 2

- 15

1 4

- 3

- 1

- 1

1 3

F&B Staffing

- 11 21 24 141 2

0.5 11 22 71 3

Administrative Staffing- 1- 1- 1- 2- 1- 1- 1- 1

Operating BudgetTotal Other HR Expense

4.6%

4.7%

4.8%

5.0%

5.1%

4.8%



2018

CAD 3,263,002.89

CAD 166,085.37

Breakdown

CAD 43,182.20

CAD 38,199.64

CAD 18,269.39

CAD 16,608.54

CAD 14,947.68

CAD 13,286.83

CAD 11,625.98

CAD 9,965.12

CAD 166,085.37


Salary Expense

CAD 17,210.00CAD 17,210.00CAD 33,717.00

CAD 4,333.00CAD 15,384.00CAD 14,000.00CAD 26,776.00CAD 11,384.00CAD 15,392.00

CAD 8,020.00CAD 5,313.00CAD 2,707.00



CAD 11,358.00CAD 2,839.50CAD 2,839.50CAD 4,000.00CAD 4,387.00

CAD 39,480.50CAD 4,067.00CAD 3,075.00CAD 2,000.00


CAD 171,338.45



Occupancy ForecastFebruary March April May June

46.36% 51.14% 66.54% 80.20% 78.36%

Head Count of FTE

Headcount 2017 Headcount 2018 Qualification

The Elysium, Downtown Calgary's corporate culture is the base for attracting and retaining its eployees on a long-term basis. The values and beliefs of the company shape the employees’ way of interacting with each other and how they communicate these to their external environment. The Elysiium provides its employees with the necessary tools in order to succeed in delivering quality


Balance Scorecard

Job ProfileJob

Description





1 1 A

1 1 A

2 2 A

1 1 A

1 1 A

2 2 A

1 1 A

1 1 A

1 1 A

7 7 B

2 2 B

1 1 A

3 3 C

2 2 B

3 3 C

12 12 C

2 2 B

2 2 A

1 1 A

2 2 A

2 2 B





12 12 B

3 3 A

1 1 A

1 1 B

6 6 C

4 4 C

77 77

HR Leave Policy

HR Leave PolicyEntitlement Salary Conditions

Sick leave is Paid.

Maternity leave is unpaid.

If in at least 5 of the 9 weeks preceding the work week in which the general holiday occurs the employee worked on the same day of the week as the day on which the general holiday falls, the

general holiday is to be considered a day that would normally have been a work day for the employee.

It depends on whether the employee working on a normal work day or not. In not working on a normal work day,- a general holiday falls on a day that would normally have been a work day for the employee, and the employer must pay the employee of an amount that is at least the

average daily wage of the employee. Another situation is pay the employee general an amount that is at least the average daily wage of the employee, and an amount that is at least

1.5 times the employee’s wage rate for each hour of work or provide employee one day's holiday.

If an employee has a common anniversary date, the employee becomes entitled to an annual vacation , at least 2 weeks’ vacation or a proportionately lesser period of vacation if the employee has been

employed for less than one year;on the 2nd, 3rd, 4th and 5th common anniversary date for at least 2 weeks's vacation. on the 6th,7th common anniversary,r, at least 3 weeks’vacation.

For each week of vacation, the employer must pay an employee paid by the month vacation pay of an amount at least equal to the employee’s wages for the employee’s normal hours of

work in a work month divided by 4 1/3. If paid other than monthly,at least equal to,for 2 weeks’ vacation or any lesser amount, 4% of the employee’s wages for the year of

employment or for 3 weeks’ vacation, 6% of the employee’s wages.

The Employee is entitled upto 10 days of paid sick leave a year.However if the employee is able to work, s/he would be adviced to do so.




Maternity leave is unpaid.

Paternity leave is unpaid.

Personal leave of absence is unpaid.

Bereavement leave is unpaid.

9 National holidays shall be announced before the beginning of each financial year. Below is the list of proposed public holidays for 2014.Date Day

1 January Wednesday17 February Thursday18 April Friday19 May Saturday1 July Sunday1 September Monday

In the case of an employee entitled to maternity leave , a period of not more than 37 consecutive weeks immediately following the last day of maternity leave; in the case of a parent who has been

employed by the employer for at least 52 consecutive weeks, a period of not more than 37 consecutive weeks within 52 weeks after the child’s birth; and in the case of an adoptive parent who has been

employed by the employer for at least 52 consecutive weeks, a period of not more than 37 consecutive weeks within 52 weeks after the child is placed with the adoptive parent for the purpose of adoption.

Employees have the right to take up to 10 days of unpaid job-protected leave each calendar year due to illness, injury and certain other emergencies and urgent matters

An employee who requests leave under this is entitled to up to 8 weeks of unpaid leave to provide care or support to a family member if a medical practitioner or nurse practitioner issues a certificate stating

that the family member has a serious medical condition with a significant risk of death within 26 weeks.

13 October Tuesday11 November Wednesday25 December Thursday



Base Salary per Annum Head Count 2014 Head Count 2015

CAD 103,260.00 1 1

CAD 103,260.00 1 1

CAD 182,148.00 4 4

CAD 51,996.00 1 1

CAD 46,152.00 2 2

CAD 84,000.00 1 1

CAD 114,480.00 3 3

CAD 68,304.00 1 1

CAD 46,176.00 2 2

CAD 96,240.00 2 2

CAD 63,756.00 1 1

CAD 32,484.00 1 1

CAD 349,952.40 35 35

CAD 55,068.00 1 1

CAD 34,148.40 7 7

CAD 29,304.00 2 2

CAD 36,000.00 1 1

CAD 26,640.00 2 2

CAD 22,716.00 12 12

CAD 22,716.00 3 3

CAD 22,716.00 3 3

CAD 48,000.00 2 2

CAD 52,644.00 2 2

CAD 300,036.00 32 32

CAD 48,804.00 1 1

CAD 36,900.00 2 2

CAD 24,000.00 2 2

CAD 22,716.00 12 12

CAD 24,000.00 3 3

CAD 58,188.00 1 1

CAD 39,996.00 1 1

CAD 22,716.00 6 6

CAD 22,716.00 4 4

CAD 1,146,116.40 77 77


January February March

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 19,025.00 CAD 19,025.00 CAD 19,025.00

CAD 4,333.00 CAD 4,333.00 CAD 4,333.00

CAD 7,692.00 CAD 7,692.00 CAD 7,692.00

CAD 7,000.00 CAD 7,000.00 CAD 7,000.00

CAD 13,388.00 CAD 13,388.00 CAD 13,388.00

CAD 5,692.00 CAD 5,692.00 CAD 5,692.00

CAD 7,696.00 CAD 7,696.00 CAD 7,696.00

CAD 8,020.00 CAD 8,020.00 CAD 8,020.00

CAD 5,313.00 CAD 5,313.00 CAD 5,313.00

CAD 2,707.00 CAD 2,707.00 CAD 2,707.00

CAD 87,680.90 CAD 87,680.90 CAD 87,680.90

CAD 4,589.00 CAD 4,589.00 CAD 4,589.00

CAD 19,919.90 CAD 19,919.90 CAD 19,919.90

CAD 4,884.00 CAD 4,884.00 CAD 4,884.00

CAD 3,000.00 CAD 3,000.00 CAD 3,000.00

CAD 4,440.00 CAD 4,440.00 CAD 4,440.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 8,000.00 CAD 8,000.00 CAD 8,000.00

CAD 8,774.00 CAD 8,774.00 CAD 8,774.00

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 4,067.00 CAD 4,067.00 CAD 4,067.00

CAD 6,150.00 CAD 6,150.00 CAD 6,150.00

CAD 4,000.00 CAD 4,000.00 CAD 4,000.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 6,000.00 CAD 6,000.00 CAD 6,000.00

CAD 4,849.00 CAD 4,849.00 CAD 4,849.00

CAD 3,333.00 CAD 3,333.00 CAD 3,333.00

CAD 11,358.00 CAD 11,358.00 CAD 11,358.00

CAD 7,572.00 CAD 7,572.00 CAD 7,572.00

CAD 206,763.90 CAD 206,763.90 CAD 206,763.90

CAD 0.00 CAD 0.00 CAD 0.00CAD 0.00 CAD 0.00 CAD 0.00

CAD 206,763.90 CAD 206,763.90 CAD 206,763.90

2017 2018 Total 2014-18CAD 52,049.48 CAD 53,194.57 CAD 254,765.81CAD 49,031.51 CAD 50,110.20 CAD 239,993.78


Employee Outsourcing For BanquetsMinimum per event 2016 Minimum per event 2017 Minimum per event 2018

2 2 2

Maximum per Event 2016 Maximum per Event 2017 Maximum per Event 2018

28 28 28

Monthly Cost of Outsourcing - 2014April 2014 May 2014 June 2014

CAD 5,520.00 CAD 6,560.00 CAD 5,520.00

April 2014 May 2014 June 2014

69 82 69

Yearly Costs for Outsourcing - 5 year forecastCost for 2017 Cost for 2018 Total 2014 - 2018

CAD 57,073.28 CAD 62,780.61 CAD 261,786.69

2017 2018

713 785


Target/Thresholds Initiatives

Decrease recruitment costs by 1% in 2017, 10% reduction of time taken to complete tasks and increase productivity . Decrease training cost percentage

by 5% over the 5 years as non-management employee turnover rate will decline each year by 5%.

Decrease recruitment costs by promoting recruitment from within and considering job referrals of trusted employee contacts. Moreover, increase

productivity by improving task productivity and by providing training for upselling.

Decrease customer complaints by 2015 by 15% and by 2016 again by 5%.

Job Profile

By implementing an accurate guest survey and evaluating these on a weekly basis, appropriate and immediate solutions can be found for negative guest

comments.

Increase employee statisfaction by 10% by 2015, decrease turnover rate by 5% each year until 2018 and decrease absence rates of non-management

employees from 3.8 days in 2014 to 2.43 in 2018.

Apply frequent employee performance appraisal interviews and establish a succession planning system for already existing employees.

Provide 100% of employees with their position suitable training in their first year of employment and recruit 30% of the vacant positions from within the

hotel. Further, a 10% increase of customer satisfaction survey score by 2015 is desirable.

Offer appropriate orientation for new recruits, review the offered training programs on a frequent basis and create development opportunities.

Furthermore, allocate the appropriate amount of time for training, set up relevant recruitment procedures and determine future employee potential.

Job Description




August 14 September 14 October 14 November 14 December 14

CAD 30,013.00 CAD 30,013.00 CAD 30,013.00 CAD 30,013.00 CAD 30,013.00







Salary Expense 2017 Salary Expense 2018 Salary Expense 2014-18

CAD 443,895.04 CAD 453,660.73 CAD 2,172,726.41

CAD 280,464.72 CAD 286,634.95 CAD 1,086,151.54

CAD 1,280,896.19 CAD 1,309,075.91 CAD 6,269,583.47

CAD 1,024,996.02 CAD 1,047,545.93 CAD 5,017,032.70

CAD 158,154.26 CAD 166,085.37 CAD 756,546.27

CAD 3,188,406.24 CAD 3,263,002.89 CAD 15,302,040.39

5.0% 5.1% 4.9%

Rooms DepartmentFront OfficeThe reception will be open 24 hours for 7 days a week. The Front Office is led by the Front Office Manager who 's duties also include overseeing Housekeeping, Laundry and Maintenance. It is decided that there will be two 8-hour shifts which would be 7 am to 3 pm and 3 pm-11 pm with always atleast two receptionist on duty. Furthermore, it is decieded that there is a requirement for a night auditor from 11 pm to 7. Apart from the Receptionists, The Elysium, Downtown Calgary has on duty during the day atleast one bellboy at all times so as to help the guests with their luggage. There is also one security guard on duty at all times of the day. Also there would be a lifeguard on duty during all opening hours of the pool and he would report directly to the Front Office manager.HousekeepingAll Housekeeping staff shall report to the Executive Housekeeper who in turn shall report to the front office manager. The number of the housekeeping supervisors is based on the initial assumption that 1 supervisor can overlook 60 rooms per shift (Raghubalan, 2009). The Room Attendants would work in a team of 15 per day of whom 11 shall work in the housekeeping and 4 in the Laundry. There will always be atleast one Floor Attendant present at all times looking after the Lobby, Pool Area, Restaurant, Bar and Business centre as they are of high importance for the hotels image and guest satisfaction.

F&BThe Bacchus Bar and the Caprice restaurant have one common F&B manager who is responsible for both outlets and the bartenders and the waiters/waitresses report to him.KitchenAs the restaurant is open from 6:30 am to 23.00 pm the kitchen staff will work in 3 shifts: 5.30 am to 1.30 pm, 10.00 am to 4.00 pm and 3.30 pm to 11.30 pm. Due to the high volume of guests three employees are needed during breakfast time. As their shift lasts until 1.30 pm they can also begin the lunch service with the cooks who work the afternoon shift. During the lunch and dinner shifts at least 2 cooks are present at all times to assist the Executive chef or one of his sous chefs; One among the Executive Chef or one of the two Sous Chefs shall be present at the restaurant during each service.Caprice RestaurantThe restaurant has 3 shifts which last from 5.30 am to 1.30 pm, 10.00 am to 4.00 pm and 3.30 pm to 11.30 pm. Based on experience stewarding will also be divided in 3 shifts ; there will be atleast one steward present for each service and there will be two in the period after breakfast and during lunch.Bacchus BarThe bar is open from 1400h to 0100h, therefore the bartenders work in 2 shifts from 1400h to 2200h and from 1700h to 0100h.

Administrative/ExecutiveThe Administrative and Executive employees of The Elysium Downtown Calgary have a set work day from 0900h to 1800h unless a special case requires them to be present otherwise.




Occupancy ForecastJuly August September October November

83.87% 71.91% 83.66% 76.48% 75.44%

Head Count of FTE

Qualification

Job Description


Daily Distibution of

Staff

Operating Budget





A

A

A

A

A

A Qualification Key

A 1. Bachelor Degree

A 2. High School Diploma

A 3. Less Than 9th Grade

B

B

A

C

B

C

C

B

A

A

A

B





B

A

A

B

C

C

HR Leave Policy

HR Leave PolicyApplication Process

Employers must give employees their annual acation in one unbroken period no later than 12 months after an employee becomes entitled to it. If an employee so requests in writing, the

employer may provide the vacation in two or more periods, so long as each vacation period is at least one

day long.

The Employee must provide a valid medical certificate atleast a few hours before the begining of the shift. Incase of a last minuete emegency the hotel will provide transport to the nearest

medical facility.

Employee must give her employer at least 6 weeks’ written notice of the date she will start her maternity leave, and if so requested by her

employer, the pregnant employee must provide her employer with a medical certificate certifying that she is pregnant and giving the estimated date of delivery.If employee proceeds

the leave beyond the stipulated time, they will have to get special approval from a qualified amd registered medical physician within 2 weeks.

9 National holidays shall be announced before the beginning of each financial year. Below is the list of proposed public holidays for 2014.Day

WednesdayThursdayFridaySaturdaySundayMonday

Employee must give her employer at least 6 weeks’ written notice of the date she will start her maternity leave, and if so requested by her

employer, the pregnant employee must provide her employer with a medical certificate certifying that she is pregnant and giving the estimated date of delivery.If employee proceeds

the leave beyond the stipulated time, they will have to get special approval from a qualified amd registered medical physician within 2 weeks.

An employee must give the employer at least 6 weeks’ written notice of the date the employee will start parental leave unless (a) the medical condition of the birth mother or child makes it impossible to comply with this requirement; (b) the date of the child’s placement with

the adoptive parent was not foreseeable. If the employee cannot comply with the written notice requirement,

the employee must give the employer written notice at the earliest possible time of the date the employee will start or has started parental leave.

An employee must inform the employer before starting the leave that he or she will be taking a personal emergency leave of absence.If an employee has to begin a personal emergency

leave before notifying the employer, the employee must inform the employer as soon as possible. Notice does not have to be given in writing. Oral notice is sufficient.

The employee must give the employer a copy of the certificate as soon as practicable of an intetnion to take a bereavement leave.

TuesdayWednesdayThursday



Head Count 2015 Head Count 2016 Head Count 2017

1 1 1

1 1 1

4 4 4

1 1 1

2 2 2

1 1 1

3 3 3

1 1 1

2 2 2

2 2 2

1 1 1

1 1 1

35 35 35

1 1 1

7 7 7

2 2 2

1 1 1

2 2 2

12 12 12

3 3 3

3 3 3

2 2 2

2 2 2

32 32 32

The senior Management receives 9 days of paid leave a year as compared to the junior staff who receive 24 days of paid leave.

Adjusted to an Inflation of 1.75%.

1 1 1

2 2 2

2 2 2

12 12 12

3 3 3

1 1 1

1 1 1

6 6 6

4 4 4

77 77 77


April May June

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 19,025.00 CAD 19,025.00 CAD 19,025.00

CAD 4,333.00 CAD 4,333.00 CAD 4,333.00

CAD 7,692.00 CAD 7,692.00 CAD 7,692.00

CAD 7,000.00 CAD 7,000.00 CAD 7,000.00

CAD 13,388.00 CAD 13,388.00 CAD 13,388.00

CAD 5,692.00 CAD 5,692.00 CAD 5,692.00

CAD 7,696.00 CAD 7,696.00 CAD 7,696.00

CAD 8,020.00 CAD 8,020.00 CAD 8,020.00

CAD 5,313.00 CAD 5,313.00 CAD 5,313.00

CAD 2,707.00 CAD 2,707.00 CAD 2,707.00

CAD 87,680.90 CAD 87,680.90 CAD 87,680.90

CAD 4,589.00 CAD 4,589.00 CAD 4,589.00

CAD 19,919.90 CAD 19,919.90 CAD 19,919.90

CAD 4,884.00 CAD 4,884.00 CAD 4,884.00

CAD 3,000.00 CAD 3,000.00 CAD 3,000.00

CAD 4,440.00 CAD 4,440.00 CAD 4,440.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 8,000.00 CAD 8,000.00 CAD 8,000.00

CAD 8,774.00 CAD 8,774.00 CAD 8,774.00

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 4,067.00 CAD 4,067.00 CAD 4,067.00

CAD 6,150.00 CAD 6,150.00 CAD 6,150.00

CAD 4,000.00 CAD 4,000.00 CAD 4,000.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 6,000.00 CAD 6,000.00 CAD 6,000.00

CAD 4,849.00 CAD 4,849.00 CAD 4,849.00

CAD 3,333.00 CAD 3,333.00 CAD 3,333.00

CAD 11,358.00 CAD 11,358.00 CAD 11,358.00

CAD 7,572.00 CAD 7,572.00 CAD 7,572.00

CAD 206,763.90 CAD 206,763.90 CAD 206,763.90

CAD 0.00 CAD 0.00 CAD 45,932.76CAD 0.00 CAD 0.00 CAD 0.00

CAD 206,763.90 CAD 206,763.90 CAD 252,696.66

Total 2014-18CAD 254,765.81CAD 239,993.78


Employee Outsourcing For BanquetsMinimum per event 2018 Skill Level

2 C

Maximum per Event 2018 Skill Level

28 C

Monthly Cost of Outsourcing - 2014June 2014 July 2014 August 2014

CAD 5,520.00 CAD 2,640.00 CAD 2,640.00

June 2014 July 2014 August 2014

69 33 33

Yearly Costs for Outsourcing - 5 year forecastTotal 2014 - 2018

CAD 261,786.69


KPI's

Salaries vs. revenue generated per employee. Recruitment costs, percentage of training costs and turnover costs.

The number of complaints and negative comments about the hotel, its employees and the service provided and the guest satisfaction in percentage

measured by the guest survey.

Employee satisfaction survey scores, turnover rate for non-management and management positions and the number of absent days per department.

Number of training hours offered per employee, average cost per employee recruited, percentage increase of performance per employee and time taken

to complete specific tasks.







Occupancy ForecastDecember Average

54.44% 67.54%

73.46%

75.45%

75.41%

73.49%

Operating Budget

Pre-Opening Expense Salaries


Qualification Key

A

B

C




Head Count 2018 Social Contribution Bonuses 80-85%

1 CAD 5,111.37 CAD 6,884.00

1 CAD 5,111.37 CAD 6,884.00

4 CAD 9,016.33 CAD 9,066.40

1 CAD 2,573.80 CAD 3,466.40

2 CAD 2,284.52 -

1 CAD 4,158.00 CAD 5,600.00

3 CAD 5,666.76 CAD 4,553.60

1 CAD 3,381.05 CAD 4,553.60

2 CAD 2,285.71 -

2 CAD 4,763.88 CAD 6,416.00

1 CAD 3,155.92 CAD 4,250.40

1 CAD 1,607.96 CAD 2,165.60

35 CAD 17,322.64 CAD 9,580.80

1 CAD 2,725.87 CAD 3,671.20

7 CAD 1,690.35 -

2 CAD 1,450.55 -

1 CAD 1,782.00 CAD 2,400.00

2 CAD 1,318.68 -

12 CAD 1,124.44 -

3 CAD 1,124.44 -

3 CAD 1,124.44 -

2 CAD 2,376.00 -

2 CAD 2,605.88 CAD 3,509.60

32 CAD 14,851.78 CAD 12,259.20

Altough there are no obligations for paying bonuses, The Elysium pays its senior management staff an annual bonus of 80% of a single month's salary.http://www.salary.com/how-bonuses-work/



Adjusted to an Inflation of 2.20%. Adjusted to an Inflation of 2.20%.

1 CAD 2,415.80 CAD 3,253.60

2 CAD 1,826.55 CAD 2,460.00

2 CAD 1,188.00 -

12 CAD 1,124.44 -

3 CAD 1,188.00 -

1 CAD 2,880.31 CAD 3,879.20

1 CAD 1,979.80 CAD 2,666.40

6 CAD 1,124.44 -

4 CAD 1,124.44 -

77 CAD 56,732.76 CAD 48,760.00


June July August September

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 8,605.00 CAD 8,605.00 CAD 8,605.00 CAD 8,605.00

CAD 19,025.00 CAD 19,025.00 CAD 19,025.00 CAD 19,025.00

CAD 4,333.00 CAD 4,333.00 CAD 4,333.00 CAD 4,333.00

CAD 7,692.00 CAD 7,692.00 CAD 7,692.00 CAD 7,692.00

CAD 7,000.00 CAD 7,000.00 CAD 7,000.00 CAD 7,000.00

CAD 13,388.00 CAD 13,388.00 CAD 13,388.00 CAD 13,388.00

CAD 5,692.00 CAD 5,692.00 CAD 5,692.00 CAD 5,692.00

CAD 7,696.00 CAD 7,696.00 CAD 7,696.00 CAD 7,696.00

CAD 8,020.00 CAD 8,020.00 CAD 8,020.00 CAD 8,020.00

CAD 5,313.00 CAD 5,313.00 CAD 5,313.00 CAD 5,313.00

CAD 2,707.00 CAD 2,707.00 CAD 2,707.00 CAD 2,707.00

CAD 87,680.90 CAD 87,680.90 CAD 87,680.90 CAD 87,680.90

CAD 4,589.00 CAD 4,589.00 CAD 4,589.00 CAD 4,589.00

CAD 19,919.90 CAD 19,919.90 CAD 19,919.90 CAD 19,919.90

CAD 4,884.00 CAD 4,884.00 CAD 4,884.00 CAD 4,884.00

CAD 3,000.00 CAD 3,000.00 CAD 3,000.00 CAD 3,000.00

CAD 4,440.00 CAD 4,440.00 CAD 4,440.00 CAD 4,440.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 5,679.00 CAD 5,679.00 CAD 5,679.00 CAD 5,679.00

CAD 8,000.00 CAD 8,000.00 CAD 8,000.00 CAD 8,000.00

CAD 8,774.00 CAD 8,774.00 CAD 8,774.00 CAD 8,774.00

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 4,067.00 CAD 4,067.00 CAD 4,067.00 CAD 4,067.00

CAD 6,150.00 CAD 6,150.00 CAD 6,150.00 CAD 6,150.00

CAD 4,000.00 CAD 4,000.00 CAD 4,000.00 CAD 4,000.00

CAD 22,716.00 CAD 22,716.00 CAD 22,716.00 CAD 22,716.00

CAD 6,000.00 CAD 6,000.00 CAD 6,000.00 CAD 6,000.00

CAD 4,849.00 CAD 4,849.00 CAD 4,849.00 CAD 4,849.00

CAD 3,333.00 CAD 3,333.00 CAD 3,333.00 CAD 3,333.00

CAD 11,358.00 CAD 11,358.00 CAD 11,358.00 CAD 11,358.00

CAD 7,572.00 CAD 7,572.00 CAD 7,572.00 CAD 7,572.00

CAD 206,763.90 CAD 206,763.90 CAD 206,763.90 CAD 206,763.90

CAD 45,932.76 CAD 0.00 CAD 0.00 CAD 0.00CAD 0.00 CAD 0.00 CAD 0.00 CAD 0.00

CAD 252,696.66 CAD 206,763.90 CAD 206,763.90 CAD 206,763.90


Monthly Cost of Outsourcing - 2014September 2014 October 2014 November 2014

CAD 6,560.00 CAD 5,520.00 CAD 2,640.00

September 2014 October 2014 November 2014

82 69 33









Bonuses 80-85%

CAD 6,884.00 CAD 2,581.50 CAD 119,899.02

CAD 6,884.00 CAD 2,581.50 CAD 119,899.02

CAD 9,066.40 CAD 6,476.70 CAD 262,739.61

CAD 3,466.40 CAD 1,299.90 CAD 60,374.48

- CAD 3,076.80 CAD 104,829.61

CAD 5,600.00 CAD 2,100.00 CAD 97,535.52

CAD 4,553.60 CAD 4,786.00 CAD 184,194.44

CAD 4,553.60 CAD 1,707.60 CAD 79,310.31

- CAD 3,078.40 CAD 104,884.13

CAD 6,416.00 CAD 2,406.00 CAD 111,747.83

CAD 4,250.40 CAD 1,593.90 CAD 74,029.46

CAD 2,165.60 CAD 812.10 CAD 37,718.38

CAD 9,580.80 CAD 17,342.16 CAD 1,199,944.74

CAD 3,671.20 CAD 1,376.70 CAD 63,941.50

- CAD 2,276.56 CAD 271,476.27

- CAD 1,953.60 CAD 66,561.08

CAD 2,400.00 CAD 900.00 CAD 41,800.94

- CAD 1,776.00 CAD 60,510.07

- CAD 1,514.40 CAD 309,582.62

- CAD 1,514.40 CAD 77,395.66

- CAD 1,514.40 CAD 77,395.66

- CAD 3,200.00 CAD 109,027.16

CAD 3,509.60 CAD 1,316.10 CAD 122,253.80

CAD 12,259.20 CAD 12,340.40 CAD 960,217.22

Employee Leaves and Public Holiday

Total Salary Expense per Department 2014

Altough there are no obligations for paying bonuses, The Elysium pays its senior management staff an annual bonus of 80% of a single month's salary.http://www.salary.com/how-bonuses-work/






CAD 3,253.60 CAD 1,220.10 CAD 56,668.13

CAD 2,460.00 CAD 922.50 CAD 85,691.92

- CAD 1,600.00 CAD 54,513.58

- CAD 1,514.40 CAD 309,582.62

- CAD 1,600.00 CAD 81,770.37

CAD 3,879.20 CAD 1,454.70 CAD 67,564.24

CAD 2,666.40 CAD 999.90 CAD 46,440.84

- CAD 1,514.40 CAD 154,791.31

- CAD 1,514.40 CAD 103,194.21

CAD 48,760.00 CAD 45,932.76 CAD 2,838,742.86


September October November December Total



































CAD 0.00 CAD 0.00 CAD 0.00 CAD 0.00 CAD 45,932.76CAD 0.00 CAD 0.00 CAD 0.00 CAD 48,760.00 CAD 48,760.00



Monthly Cost of Outsourcing - 2014December 2014

CAD 0.00

December 2014

0



CAD 122,536.79 CAD 125,232.60 CAD 127,987.72

CAD 122,536.79 CAD 125,232.60 CAD 127,987.72

CAD 268,519.88 CAD 274,427.32 CAD 280,464.72

CAD 61,702.72 CAD 63,060.18 CAD 64,447.51

CAD 107,135.87 CAD 109,492.85 CAD 111,901.70

CAD 99,681.30 CAD 101,874.28 CAD 104,115.52

CAD 188,246.71 CAD 192,388.14 CAD 196,620.68

CAD 81,055.13 CAD 82,838.35 CAD 84,660.79

CAD 107,191.58 CAD 109,549.79 CAD 111,959.89

CAD 114,206.29 CAD 116,718.82 CAD 119,286.64

CAD 75,658.10 CAD 77,322.58 CAD 79,023.68

CAD 38,548.18 CAD 39,396.24 CAD 40,262.96

CAD 1,226,343.53 CAD 1,253,323.09 CAD 1,280,896.19

CAD 65,348.21 CAD 66,785.87 CAD 68,255.16

CAD 277,448.74 CAD 283,552.62 CAD 289,790.77

CAD 68,025.42 CAD 69,521.98 CAD 71,051.47

CAD 42,720.56 CAD 43,660.41 CAD 44,620.94

CAD 61,841.30 CAD 63,201.80 CAD 64,592.24

CAD 316,393.44 CAD 323,354.09 CAD 330,467.88

CAD 79,098.36 CAD 80,838.52 CAD 82,616.97

CAD 79,098.36 CAD 80,838.52 CAD 82,616.97

CAD 111,425.76 CAD 113,877.12 CAD 116,382.42

CAD 124,943.38 CAD 127,692.14 CAD 130,501.37

CAD 981,342.00 CAD 1,002,931.53 CAD 1,024,996.02







CAD 57,914.83 CAD 59,188.96 CAD 60,491.12

CAD 87,577.14 CAD 89,503.84 CAD 91,472.92

CAD 55,712.88 CAD 56,938.56 CAD 58,191.21

CAD 316,393.44 CAD 323,354.09 CAD 330,467.88

CAD 83,569.32 CAD 85,407.84 CAD 87,286.82

CAD 69,050.66 CAD 70,569.77 CAD 72,122.31

CAD 47,462.54 CAD 48,506.71 CAD 49,573.86

CAD 158,196.72 CAD 161,677.05 CAD 165,233.94

CAD 105,464.48 CAD 107,784.70 CAD 110,155.96

CAD 2,901,195.21 CAD 2,965,021.50 CAD 3,030,251.97


Total

CAD 8,605.00

CAD 8,605.00

CAD 19,025.00

CAD 4,333.00

CAD 7,692.00

CAD 7,000.00

CAD 13,388.00

CAD 5,692.00

CAD 7,696.00

CAD 8,020.00

CAD 5,313.00

CAD 2,707.00

CAD 87,680.90

CAD 4,589.00

CAD 19,919.90

CAD 4,884.00

CAD 3,000.00

CAD 4,440.00

CAD 22,716.00

CAD 5,679.00

CAD 5,679.00

CAD 8,000.00

CAD 8,774.00

CAD 70,045.00

CAD 4,067.00

CAD 6,150.00

CAD 4,000.00

CAD 22,716.00

CAD 6,000.00

CAD 4,849.00

CAD 3,333.00

CAD 11,358.00

CAD 7,572.00

CAD 206,763.90

CAD 45,932.76CAD 48,760.00

CAD 301,456.66



CAD 127,987.72 CAD 130,803.45 CAD 626,459.58

CAD 127,987.72 CAD 130,803.45 CAD 626,459.58

CAD 280,464.72 CAD 286,634.95 CAD 1,372,786.49

CAD 64,447.51 CAD 65,865.35 CAD 315,450.25

CAD 111,901.70 CAD 114,363.54 CAD 547,723.57

CAD 104,115.52 CAD 106,406.06 CAD 509,612.68

CAD 196,620.68 CAD 200,946.33 CAD 962,396.30

CAD 84,660.79 CAD 86,523.33 CAD 414,387.91

CAD 111,959.89 CAD 114,423.01 CAD 548,008.40

CAD 119,286.64 CAD 121,910.94 CAD 583,870.52

CAD 79,023.68 CAD 80,762.20 CAD 386,796.02

CAD 40,262.96 CAD 41,148.74 CAD 197,074.50

CAD 1,280,896.19 CAD 1,309,075.91 CAD 6,269,583.47

CAD 68,255.16 CAD 69,756.77 CAD 334,087.51

CAD 289,790.77 CAD 296,166.17 CAD 1,418,434.57

CAD 71,051.47 CAD 72,614.60 CAD 347,774.56

CAD 44,620.94 CAD 45,602.60 CAD 218,405.43

CAD 64,592.24 CAD 66,013.27 CAD 316,158.69

CAD 330,467.88 CAD 337,738.18 CAD 1,617,536.22

CAD 82,616.97 CAD 84,434.54 CAD 404,384.05

CAD 82,616.97 CAD 84,434.54 CAD 404,384.05

CAD 116,382.42 CAD 118,942.83 CAD 569,655.30

CAD 130,501.37 CAD 133,372.40 CAD 638,763.09

CAD 1,024,996.02 CAD 1,047,545.93 CAD 5,017,032.70


Total Salary Expenseper Department 2018

Total Salary Expense per Department 2014-2018



CAD 60,491.12 CAD 61,821.92 CAD 296,084.96

CAD 91,472.92 CAD 93,485.32 CAD 447,731.14

CAD 58,191.21 CAD 59,471.42 CAD 284,827.65

CAD 330,467.88 CAD 337,738.18 CAD 1,617,536.22

CAD 87,286.82 CAD 89,207.13 CAD 427,241.47

CAD 72,122.31 CAD 73,709.00 CAD 353,015.98

CAD 49,573.86 CAD 50,664.49 CAD 242,648.44

CAD 165,233.94 CAD 168,869.09 CAD 808,768.11

CAD 110,155.96 CAD 112,579.39 CAD 539,178.74

CAD 3,030,251.97 CAD 3,096,917.52 CAD 14,832,129.06

Rooms Hypothesis and Assumptions Hotel capacity 150

Hotel occupancy forecast 201468%

Average Lenght Of Stay 2014 2.18

Double occupancy (persons/room) 20141.55

Average Length of Stay by Segment 2014

Business 2.26

Leisure 1.92

2014

Business 1.35

Leisure 2.16

Average 1.76

Client Mix 2014Commercial 45%Government and Contract 5%MICE 15%Extended Stay 10%Solo travelers 5%Couples 10%

Average Party Size (Single/Double Occupancy)

Rooms Hypothsis

and Assumptions

Party Size and Average Length

of Stay

Rooms Construction

Area

SMERF 10%Total Business 75%Total Leisure 25%Total 100%

Rooms Construction Area (in sqM)Type of room: Number of roomsKing Room 100Double Queen Room 40Junior Suites 9President Suite 1TOTAL 150

Total rooms with 2 Queen beds 40Total rooms with a King bed 110

Initial Linen Purchase

Cal

cula

tion

of th

e Li

nen

to B

uy

Item Price/ItemFlat Bed Sheets King CAD 13.23 Flat Bed Sheets Queen CAD 11.99 Fitted Bed Sheets King CAD 12.36 Fitted Bed Sheets Queen CAD 10.09 Pillows CAD 2.91 Pillow Cases CAD 3.45 Pillow Protector CAD 2.22 Duvet King CAD 20.89 Duvet Queen CAD 17.76 Duvet Cover King CAD 20.93 Duvet Cover Queen CAD 19.79 Quilts King CAD 21.55 Quilts Queen CAD 19.27 Bath Towels CAD 3.94 Hand Towels CAD 0.42 Face Towels CAD 1.18 Bathrobes CAD 6.79 Bath Mats CAD 2.36 Mattress Protectors King CAD 6.61 Mattress Protectors Queen CAD 5.74 Mattresses King CAD 146.23

2 pillows on a King Bed, 4 pillows on 2 Queen Beds



Mattresses Queen CAD 128.47

Furniture, Electronics & Other AmenitiesItem Price/Item

RoomBed Queen CAD 283.46 Bed King CAD 317.82 Closet CAD 326.41 Desk CAD 151.18 Mirror CAD 54.97 Desk Chair CAD 77.30 Armchair for Suites CAD 206.15 Sofa for Suites CAD 446.66 Trash Can CAD 6.35 Coffee table CAD 116.82 Nightstands CAD 85.90 Desk Lamp CAD 28.57 Night Lamp CAD 28.36 Electrical Kettle CAD 9.40 LCD TV 47" CAD 161.90 Telephone CAD 31.71 Electronic Safe CAD 317.96 Decorative Pillow CAD 29.22 BathroomHair Dryer CAD 19.82 Amentities CAD 1.43 Shower Cabin CAD 329.00 Bathtub CAD 149.00 Pedestal lavatory CAD 299.00 Toilet CAD 99.00 Shower Head CAD 41.98

Inte

rnet

Pro

vide

r

Internet ProviderProvider CableSkyway West Business Internet Services YNucleus Inc. Y

1 in Standard rooms and 2 in Suites

2 pillows on a King Bed, 4 pillows on 2 Queen BedsShampoo, bath gel, conditioner, body lotion, dental kit, shaving kit, soap, slippers, comb, shower cap, sewing kit, loofah

As the source to compare the providers we used http://canadianisp.ca/cgi-bin/ispsearch.cgi

aRadiant Communications YInternet LIGHTSPEED Communications Y

We have chosen Skyway West Business Internet Services to be our internet provider due to the extensive range of services they provide compare to the competitors in the area.

Salaries ExpensePosition Base Salary per Month

Front Office Manager CAD 4,589.00Receptionist/Night Auditor CAD 2,845.70Security Personnel CAD 2,442.00Executive Housekeeper CAD 3,000.00Housekeeping Supervisor CAD 2,220.00Room Attendant CAD 1,893.00Public Areas Attendant CAD 1,893.00Bellboy CAD 1,893.00Lifeguard CAD 4,000.00Maintenance and IT supervisor CAD 4,387.00

Inflation Rates 2014-2018Inflation Rate for the next 4 years 2.02%Inflation per month 2014 1.75%

Other Expenses

Oth

er E

xpen

ses

Expense Actual Calculation/Year

Payroll & related expensesPayroll Rooms CAD 1,199,944.74

Other expensesReservationsTelephoneCable TV CAD 89,910.00WIFI CAD 14,640.00Newspaper subscription CAD 84,305.00Bathroom Amenities CAD 1.43 per kit

Shaw Cable Business HD Basic Package

Price found on the Skyway West Business Internet Services websiteRates vary with

each publisher. Rates were acquired directly from the firms by email

Calgary Herald and Financial Times have annual subscriptions. Calgary Sun gave us price per newspaper per day.

Cleaning SuppliesDecorationsDry cleaningLinen replacement CAD 58,348.28Operating suppliesLaundry

2014 Monthly Forecasted Operating BudgetMonthly Operating Budget 2013 Jan-14# of days 30Total Capacity 150Occupancy 42.10%Rooms sold 1894ADR CAD 212.02 Rooms Revenue CAD 401,640.40 Other Revenues CAD 32,056.84 Total departmental revenues CAD 433,697.24 Direct Operating Expenses

CAD 29,162.70 Total Direct Operating Expenses CAD 29,162.70 Other Operating expensesReservations CAD 8,032.81 WIFI CAD 1,220.00 Newspaper Subscription CAD 7,025.42 Telephone CAD 4,016.40 Satellite TV CAD 7,623.62 Dry Cleaning CAD 12,049.21 Laundry CAD 12,049.21 Linen replacement CAD - Guest amenities CAD 4,757.26 Cleaning supplies CAD 2,008.20 Decoration CAD 12,049.21

Operational Supplies CAD 6,024.61

Other Expenses CAD 19,674.70 Total Other Operating Expenses CAD 76,855.95 Total Operating Expenses CAD 106,018.65

Total Departmental Profit CAD 327,678.59

Yearly Forecasted Operating Budget

Payroll Expense

In the year 2016 we will replace all 4 pars of often used linen

25 Parking Passes (sold to exterior clients for 400 CAD per month) and Airport Transfers revenue (50 CAD per transfer). We assume that 15% of hotel guests will use this service.

Number of rooms* price per kit* average party size

Cost of outsourced transfers is 44.60 per transfer

Yearly Forecasted Operating BudgetYearly Operating Budget 2014Total Capacity 150Days open 360Occupancy 68%Rooms sold 36464ADR CAD 247.53 Rooms Revenue CAD 9,026,069.12 Other Revenues CAD 544,580.57 Total Departmental Revenues CAD 9,570,649.69 Direct Operating ExpensesPayroll Rooms(incl. tax) CAD 1,199,944.74 Total Direct Operating Expenses CAD 1,199,944.74 Other Operating expensesReservations CAD 184,764.28 WIFI CAD 14,640.00 Newspaper Subscription CAD 84,305.00 Telephone CAD 92,382.14 Cable TV CAD 91,483.43 Dry Cleaning CAD 277,146.43 Laundry CAD 277,146.43 Linen replacement CAD - Guest amenities CAD 93,424.05 Cleaning supplies CAD 180,521.38 Decoration CAD 45,130.35 Operational Supplies CAD 135,391.04 Other Expenses CAD 378,725.87 Total Other Operating Expenses CAD 1,855,060.39 Total Operating Expenses CAD 3,055,005.14 Total departmental profit CAD 6,515,644.55 RevPAR CAD 177.23 Varience -

Ratio Analysis2014

The Elysium Operating Expense % 31.92%Cost per Occupied Room CAD 83.78 VarianceCostPOR w/o payroll CAD 50.87 Variance

Rooms Hypothesis and Assumptions 150 150 150

2015 2016 201773% 75% 75%

2015 2016 2017 2.19 2.19 2.21

2015 2016 20171.53 1.51 1.48

2015 2016 2017

2.26 2.26 2.26

1.92 1.92 1.92

2015 2016 2017

1.35 1.35 1.35

2.16 2.16 2.16

1.76 1.76 1.76

2015 2016 201746% 47% 48%

5% 5% 5%16% 16% 19%11% 12% 12%

4% 3% 2%8% 7% 4%

Rooms Construction

Area

Initial Linen Purchase

Average Linen Weight per day

Calculations

Furniture, Electronics and Other Amntities

Internet Provider

Salaries Expense

This are takes into account the bathroom space as well`

20% of the rooms area is allocated as hallway area

The area is larger than competittors in proximity

10% 10% 10%78% 80% 84%22% 20% 16%

100% 100% 100%

Rooms Construction Area (in sqM)Area/room Hallway Total sqM

32 640 384032 256 153660 108 648

100 20 1206144

Initial Linen PurchaseQuantity/room Total par Total Price

1 440 CAD 5,822.88 2 320 CAD 3,837.08 1 440 CAD 5,436.83 2 320 CAD 3,228.76 4 900 CAD 2,622.74 4 2400 CAD 8,272.44 4 900 CAD 2,002.31 1 165 CAD 3,446.85 2 120 CAD 2,130.78 1 440 CAD 9,209.98 2 320 CAD 6,333.85 1 165 CAD 3,555.43 2 120 CAD 2,312.52 2 1200 CAD 4,725.32 2 1200 CAD 501.36 2 1200 CAD 1,416.34 2 1200 CAD 8,147.10 1 600 CAD 1,416.34 1 165 CAD 1,090.93 2 120 CAD 689.37 1 165 CAD 24,127.95

This are takes into account the bathroom space as well`

20% of the rooms area is allocated as hallway area

The area is larger than competittors in proximity

4 par for often used linen and towels. 1.5 par for long lasting inventory




For supplies to be purchased in Canada supplier's price is listed directly in Price/Item

2 120 CAD 15,416.82 Total Rooms Linen CAD 115,743.97

Furniture, Electronics & Other AmenitiesQuantity/room Total Par Total Price

2 96 CAD 27,211.82 1 132 CAD 41,952.30 1 180 CAD 58,753.13 1 180 CAD 27,212.57 1 180 CAD 9,894.97 1 180 CAD 13,914.62 2 24 CAD 4,947.67 1 12 CAD 5,359.91 2 360 CAD 2,286.00 1 12 CAD 1,401.80 2 360 CAD 30,923.88 1 180 CAD 5,142.07 2 360 CAD 10,208.94 1 180 CAD 1,692.09

1 OR 2 192 CAD 31,084.32 2 360 CAD 11,415.60 1 180 CAD 57,232.80

2 OR 4 412 CAD 12,038.64

1 180 CAD 3,567.60 2 10000 CAD 14,309.65 1 137 CAD 45,007.20 1 36 CAD 5,364.00 1 180 CAD 53,820.00 1 180 CAD 17,820.00 1 180 CAD 7,556.40

Total CAD 500,117.98

Internet ProviderDial Up DSL Point-Point

Y Y YY Y N


1 in Standard rooms and 2 in Suites

2 pillows on a King Bed, 4 pillows on 2 Queen BedsShampoo, bath gel, conditioner, body lotion, dental kit, shaving kit, soap, slippers, comb, shower cap, sewing kit, loofah

Minimum order accepted by suppliers

As the source to compare the providers we used http://canadianisp.ca/cgi-bin/ispsearch.cgi

N Y YY Y N


Salaries ExpenseBase Salary per Annum Head Count 2013 Bonuses

CAD 55,068.00 1 CAD 3,671.20CAD 34,148.40 7 -CAD 29,304.00 2 -CAD 36,000.00 1 CAD 2,400.00CAD 26,640.00 2 -CAD 22,716.00 12 -CAD 22,716.00 3 -CAD 22,716.00 3 -CAD 48,000.00 2 -CAD 52,644.00 2 CAD 3,509.60

Other ExpensesThe Elysium

13.29%

2.00%1.00%1.00%0.16%0.93%1.04%

Price found on the Skyway West Business Internet Services website

Calgary Herald and Financial Times have annual subscriptions. Calgary Sun gave us price per newspaper per day.

2.00%0.50%3.00%

-1.50%3.00%

2014 Monthly Forecasted Operating BudgetFeb-14 Mar-14 Apr-14

30 30 30150 150 150

46.36% 51.14% 66.54%2086 2301 2994

CAD 218.59 CAD 230.85 CAD 243.39 CAD 456,016.96 CAD 531,299.19 CAD 728,814.98 CAD 34,291.04 CAD 36,797.71 CAD 44,866.83

CAD 490,308.01 CAD 568,096.90 CAD 773,681.81

CAD 29,162.70 CAD 29,162.70 CAD 29,162.70 CAD 29,162.70 CAD 29,162.70 CAD 29,162.70

CAD 9,120.34 CAD 10,625.98 CAD 14,576.30 CAD 1,220.00 CAD 1,220.00 CAD 1,220.00 CAD 7,025.42 CAD 7,025.42 CAD 7,025.42 CAD 4,560.17 CAD 5,312.99 CAD 7,288.15 CAD 7,623.62 CAD 7,623.62 CAD 7,623.62


CAD - CAD - CAD - CAD 5,239.13 CAD 5,779.77 CAD 7,520.14 CAD 2,280.08 CAD 2,656.50 CAD 3,644.07

CAD 13,680.51 CAD 15,938.98 CAD 21,864.45

CAD 6,840.25 CAD 7,969.49 CAD 10,932.22


CAD 114,113.24 CAD 125,193.40 CAD 154,585.97

CAD 376,194.76 CAD 442,903.51 CAD 619,095.84


In the year 2016 we will replace all 4 pars of often used linen

25 Parking Passes (sold to exterior clients for 400 CAD per month) and Airport Transfers revenue (50 CAD per transfer). We assume that 15% of hotel guests will use this service.

Number of rooms* price per kit* average party size

Yearly Forecasted Operating Budget2015 2016 2017

150 150 150365 365 365

73% 75% 75%40222 41310 41289

CAD 252.54 CAD 257.64 CAD 262.85 CAD 10,157,547.29 CAD 10,643,327.56 CAD 10,853,011.64

CAD 581,004.40 CAD 588,458.80 CAD 578,187.19 CAD 10,738,551.69 CAD 11,231,786.36 CAD 11,431,198.83


CAD 203,150.95 CAD 212,866.55 CAD 217,060.23 CAD 14,935.73 CAD 15,237.43 CAD 15,545.23 CAD 86,007.96 CAD 87,745.32 CAD 89,517.78



CAD - CAD 58,348.28 CAD - CAD 103,051.68 CAD 105,839.99 CAD 105,786.15 CAD 203,150.95 CAD 212,866.55 CAD 217,060.23 CAD 50,787.74 CAD 53,216.64 CAD 54,265.06


CAD 2,029,023.83 CAD 2,163,885.54 CAD 2,127,583.70 CAD 3,255,367.36 CAD 3,417,208.63 CAD 3,408,479.90 CAD 7,483,184.34 CAD 7,814,577.73 CAD 8,022,718.94

CAD 196.14 CAD 205.15 CAD 208.79 11% 5% 2%

Ratio Analysis2015 2016 2017

30.31% 30.42% 29.82% CAD 80.94 CAD 82.72 CAD 82.55

-3% 2% 0% CAD 50.45 CAD 52.38 CAD 51.53

-1% 4% -2%

In the third year we plan to change the 4 pars of the often used linen

Rooms Hypothesis and Assumptions 150

201873%

2018 2.21

20181.47

2018

2.26

1.92

2018

1.35

2.16

1.76

201848%

5%20%12%

2%3%

Salaries Expense

Other Expenses

2014 Monthly

Forecasted Budget

Yearly Forecasted Operating

Budget

Ratio Analysis

10%85%15%

100%

Initial Linen PurchaseSupplier's price Source:

USD 12.67 http://www.alibaba.com/ USD 11.48 http://www.alibaba.com/ USD 11.83 http://www.alibaba.com/ USD 9.66 http://www.alibaba.com/ USD 2.79 http://www.alibaba.com/ USD 3.30 http://www.alibaba.com/ USD 2.13 http://www.alibaba.com/ USD 20 http://www.alibaba.com/ USD 17 http://www.alibaba.com/

USD 20.04 http://www.alibaba.com/ USD 18.95 http://www.alibaba.com/ USD 20.63 http://www.alibaba.com/ USD 18.45 http://www.alibaba.com/ USD 3.77 http://www.alibaba.com/ USD 0.40 http://www.alibaba.com/ USD 1.13 http://www.alibaba.com/ USD 6.50 http://www.alibaba.com/ USD 2.26 http://www.alibaba.com/ USD 6.33 http://www.alibaba.com/ USD 5.50 http://www.alibaba.com/ USD 140 http://www.alibaba.com/

Suppliers were contacted through the website message system to acquire current prices


USD 123 http://www.alibaba.com/

Furniture, Electronics & Other AmenitiesSupplier's price: Source:

USD 271.38 http://www.alibaba.com/ USD 304.28 http://www.alibaba.com/ USD 312.50 http://www.alibaba.com/ USD 144.74 http://www.alibaba.com/ USD 52.63 http://www.alibaba.com/ USD 74.01 http://www.alibaba.com/

USD 197.37 http://www.alibaba.com/ USD 427.63 http://www.alibaba.com/

- http://www.canadianhotelsupply.com/ USD 111.84 http://www.alibaba.com/ USD 82.24 http://www.alibaba.com/ USD 27.35 http://www.alibaba.com/ USD 27.15 http://www.alibaba.com/

USD 9 http://www.alibaba.com/ USD 155 http://www.alibaba.com/

- http://www.canadianhotelsupply.com/ USD 42.88 http://www.alibaba.com/

- http://www.canadianhotelsupply.com/

- http://www.canadianhotelsupply.com/ USD 1.37 http://www.alibaba.com/

- www.rona.ca - www.rona.ca - www.rona.ca - www.rona.ca - www.rona.ca

Internet ProviderWireless AntiSpam

Y YN Y



Y NN Y


Salaries ExpenseTotal Salary Expense 2014

CAD 1,376.70 CAD 63,941.50CAD 2,276.56 CAD 271,476.27CAD 1,953.60 CAD 66,561.08

CAD 900.00 CAD 41,800.94CAD 1,776.00 CAD 60,510.07CAD 1,514.40 CAD 309,582.62CAD 1,514.40 CAD 77,395.66CAD 1,514.40 CAD 77,395.66CAD 3,200.00 CAD 109,027.16CAD 1,316.10 CAD 122,253.80

Employee Leaves and Public Holiday

2014 Monthly Forecasted Operating BudgetMay-14 Jun-14 Jul-14

30 30 30150 150 150

80.02% 78.36% 83.87%3601 3526 3774

CAD 263.60 CAD 268.97 CAD 382.62 CAD 949,195.75 CAD 948,393.34 CAD 1,444,013.66 CAD 51,927.83 CAD 51,055.95 CAD 53,944.06

CAD 1,001,123.58 CAD 999,449.29 CAD 1,497,957.72





CAD 28,475.87 CAD 28,451.80 CAD 43,320.41

CAD 14,237.94 CAD 14,225.90 CAD 21,660.20


CAD 814,161.37 CAD 812,787.47 CAD 1,241,286.15


Yearly Forecasted Operating Budget2018

150365

73%40233

CAD 268.17 CAD 10,789,216.36

CAD 564,022.21 CAD 11,353,238.57

CAD 1,309,075.91 CAD 1,309,075.91

CAD 215,784.33 CAD 15,859.24 CAD 91,326.04

CAD 107,892.16 CAD 99,102.29

CAD 323,676.49 CAD 323,676.49

CAD - CAD 103,080.05 CAD 215,784.33 CAD 53,946.08

CAD 161,838.25 CAD 396,067.81

CAD 2,108,033.55 CAD 3,417,109.46 CAD 7,936,129.11

CAD 207.37 -1%

Ratio Analysis2018

30.10% CAD 84.93

3% CAD 52.40

2%

Party SizeBusiness Leisure

Number of people Margin Number of people

1 65% 1

2 35% 2

3

4

1.35

Average Length of StayBusiness Leisure

Length of stay Segment Proportion Length of stay1 38% 12 23% 23 14% 3

Average Party Size per Segment

Ratio Analysis

4 25% 4Total 100% Total

2.26Average length of stay per

segment


2014 Monthly Forecasted Operating BudgetAug-14 Sep-14 Oct-14

30 30 30150 150 150

71.91% 83.66% 76.48%3236 3765 3442

CAD 233.79 CAD 262.73 CAD 221.65 CAD 756,513.62 CAD 989,098.16 CAD 762,878.69 CAD 47,677.40 CAD 53,835.08 CAD 50,075.08

CAD 804,191.01 CAD 1,042,933.23 CAD 812,953.77





CAD 22,695.41 CAD 29,672.94 CAD 22,886.36

CAD 11,347.70 CAD 14,836.47 CAD 11,443.18


CAD 645,121.05 CAD 849,973.33 CAD 652,475.56

Party SizeLeisure

Margin

19%

56%

15%

10%

2.16

Average Length of StayLeisure

Segment Proportion48%27%10%

15%100%

1.92

Linen Weight King/Suites Single Occ.Linen type Weight/Item (kg) Linen pieces in room Total Weight

Bed Linen King 1.02 1 1.02Bed Linen Queen 0.86 0 0Pillow Cases 0.15 2 0.3Bath Towels 0.22 1 0.22Hand Towels 0.08 1 0.08Face Towels 0.05 1 0.05Bathrobes 1.15 1 1.15Bath Mats 0.61 1 0.61

Total 3.43

Taken from General Laundry Planning Calculation Methods.pdf or actual weight provided by the supplier

Average Linen Weight per Day2014 2015 2016

Single Occ. Rooms 136.306 152.118 158.853Double Occ. Rooms 236.81 278.05 289.04 TOTAL kg 373.119 430.165 447.891

2014 Monthly Forecasted Operating BudgetNov-14 Dec-14

30 30150 150

75.44% 54.44%3395 2450

CAD 222.15 CAD 210.72 CAD 754,175.84 CAD 516,173.64 CAD 49,530.15 CAD 38,522.61

CAD 803,705.99 CAD 554,696.25

CAD 29,162.70 CAD 29,162.70 CAD 29,162.70 CAD 29,162.70

CAD 15,083.52 CAD 10,323.47 CAD 1,220.00 CAD 1,220.00 CAD 7,025.42 CAD 7,025.42 CAD 7,541.76 CAD 5,161.74 CAD 7,623.62 CAD 7,623.62

CAD 22,625.28 CAD 15,485.21 CAD 22,625.28 CAD 15,485.21

CAD - CAD - CAD 8,525.93 CAD 6,151.81 CAD 3,770.88 CAD 2,580.87

CAD 22,625.28 CAD 15,485.21

CAD 11,312.64 CAD 7,742.60


CAD 644,563.71 CAD 431,248.40

King/Suites Double Occ. Double QueenLinen pieces in room Total Weight Linen pieces in room Total Weight

1 1.02 0 00 0 2 1.724 0.6 4 0.62 0.44 2 0.442 0.16 2 0.162 0.1 2 0.12 2.3 2 2.31 0.61 1 0.61

Total 5.23 Total 5.93Average total double occ. weight 5.58

Average Linen Weight per Day2017 2018

164.008 161.088 277.42 258.45 441.430 419.540

Customer MixInternal guests

Breakfast

Customer Mix

Hotel Occupancies

Lunch

Dinner

Bar

Room service

Hotel Occupancies2014

JanuaryFebruary

MarchAprilMayJuneJuly

AugustSeptember

OctoberNovemberDecember

Average high seaseonAverage low season

Average 2014

Average number of expected guests forecastSingle roomsDouble roomsSuitesRestaurant capacityHotel capacityBar capacity

Average Guests expected/day BreakfastLunchDinnerBarRoom service

Competitive F&B Analysis

Main competitors

Main competitors

Sheraton Suites Eau Claire“Barclay's” Restaurant

International Hotel Suites Calgary“4th Avenue Café”

Delta Bow Valley “Elements Bistro”

Calgary Marriott Downtown Hotel“Milestone's” Restaurant

The Fairmont Palliser“The Rimrock”

CHARCUTRoast house

Rose Garden Thai Restaurant

The King & I Thai Restaurant

Average prices of main competitorsMain competitors

Barclay's RestaurantElements BistroThe RimrockCharcut Rose GardenThe King & I

Our average checks according to meal typeAverage CheckAverage check lunch Average check dinner Average breakfast

Food to Beverage ratiosFoodBeverageTotal

Our F&B Average checks applied

Average checks were given to us through an interview with the according F&B representative.

Our average checks for lunch have been calculated based on the averages of the main copetitors.

Industry's average ratios have been provided by Mr. Michael Bitcon, the F&B Director of the Westin Calgary hotel. The above ratios are the revised industry's averages to match our position in the market.

LunchDinnerBreakfast

Average Lunch FoodAverage Lunch BeveragesAverage Dinner FoodAverage Dinner BeveragesBreakfast

Annual Price changes based on inflationYearInflation % change

Average Lunch FoodAverage Lunch BeveragesAverage Dinner FoodAverage Dinner BeveragesBreakfast

Total LunchTotal DinnerTotal Breakfast

Caprice Restaurant Revenue 2014Occupancy rateRoom soldInternal Guests BreakfastExternal Guests BreakfastTotal guests BreakfastInternal Guests LunchExternal Guests LunchTotal Guests LunchInternal Guests DinnerExternal Guests DinnerTotal guests dinner



BreakfastLunch foodLunch beveragesLunch totalDinner foodDinner beveragesDinner total

Total F&B Revenue Restaurant

Table Turnover

Caprice Restaurant Sales Forecast 2014 - 2018BreakfastLunch foodLunch beveragesLunch totalDinner foodDinner beveragesDinner totalTOTAL

Table Turnover

Bar Competitive AnalysisName

The Unicorn PubDicken's PubMoxie's Bar

The Oak RoomLiquid Lounge

Bacchus Bar Consumer Behavior

Seasonality

Monday

We assume that during the high season the average consumption of beverages at the bar will be higher than during the low season, due to lower number of leasure guests

TuesdayWednesdayThursdayFridaySaturdaySundayAverage

Bacchus Bar Revenue 2014Occupancy rate Hotel %Internal guests using the Bar %External guests using the BarInternal guests HotelInternal guests BarTotal guests BarAverage guests/dayBar occupancy %Bar Revenue

Bacchus Bar Sales Forecast 2014 - 2018Occupancy rate Hotel %Internal guests using the Bar %External guests using the BarInternal guests HotelInternal guests BarTotal guests BarInflationBar RevenueBar Maximum CapacityNumber of Days OpenSeat Turnover

Average Check


Room service Revenue 2014Occupancy rate Hotel %Rooms occupiedInternal guestsGuests using Room service %Guests using Room serviceFood Revenue for RSBeverage Revenue from RSTotal Room service Revenue

Room Service Sales Forecast 2014 - 2018Occupancy rate Hotel %Rooms occupiedInternal guestsGuests using Room service %

Guests using Room service

Food Revenue for RSBeverage Revenue from RSTotal Room service Revenue

Seminars and Banquets

Competitive Analysis of Seminars and BanquetsProperty

Hotel Elan

Westin Calgary



The Elysium Downtown Calgary

The Elysium Seminars and Banquets Pricing

Average check lunch Average check dinner

Average breakfast

FoodBeverage

Total

Food Costs

Beverage Costs

Labor Costs

FoodBeverage

LaborRentalTotal

Return

Seminars and Banquets Revenue 2014

Occupancy rate Hotel %

Rooms occupied

Double occupancy MICE

Room occupied by MICE

In-house MICE guests

Projected external seminar guests

In-house MICE guests %

Revenue from FoodRevenue from Beverages

Revenue from Room Rental

Total Seminar Revenue

Sales Forecast Seminars and Banquets 2014 - 2018

Occupancy rate Hotel %

Room occupied by MICE

External MICE guests

Total MICE guests (internal and external)

Revenue from Food

Revenue from Beverages

Revenue from Room Rental

Total Seminar Revenue

External Seminars and Banquets DemandAssumptions of External Banquet Demand

Season

Lunch

Dinner

CostsFood costs

Fish

Poultry

Beef

Total Food costs (incl. Above)

Breakfast costs

Beverage costs

Labour costs

Utility costs

Variable costs

Liquor licence

A liquor Restaurant

A licence bar

Special Event licence

Alcohol Servers Online Training

Total Fixed cost per year

Total Variable cost per year

IT EquipmentIn-house

Operating Budget F&B 2014

Breakfast Revenue

Food Revenue from Restaurant

Beverages Revenue from Rest.

Total Revenues from Restaurant

Food Revenue from S&B

Beverage Revenue from S&B

Rental Space Revenue from S&B

Total Revenue from S&B

Bar Revenue

Food Revenue from Room Service

Beverage Revenue from Room Service

Total Revenues Room Service

Total Revenue

Breakfast costs

Food costs

Beverage costs

F&B Salaries

Minibar expense

Utility costs

Variable costs

Fixed costs

Total Operating Expenses

Net Operating Profit

Operating Budet Forecast 2014 - 2018

Breakfast Revenue

Food Revenue from RestaurantBeverages Revenue from Rest.Total Restaurant RevenuesFood Revenue from S&BBeverage revenue from S&BRental Space RevenueTotal Revenue from S&BBar RevenueRoom Service Revenue FoodRoom Service Revenue BeveragesTotal Room Service RevenueTotal RevenueBreakfast costsFood costsBeverage costsF&B SalariesMinibar expenseUtility costsVariable costsFixed costs

Total Operating ExpensesNet Operating Profit

Customer MixInternal guests

95%

We expect that most of our hotel guests wouldn’t miss the opportunity to have

breakfast in the morning. Following latest trends, breakfast in Canada is gaining in

popularity.

Hotel Occupancies

Average Number of Expected Guests

Forecast


Avearge Prices of Main

Competitiors

15%

35%

30%

15%

The number of internal hotel guests during lunch is expected to be low, as leasure

guests leave the hotel during the day and prefer to lunch outside, while few business customers will find the lunch useful to their

needs.

We expect that the restaurant will be occupied with both external and internal

clients during the dinner. We also consider that long-stay guests will not dine in our

restaurant more than a few times, as they would want to have dinner somewhere else

in town. Also, the take away option will mostly be used by external clients.

Both business clients and leisure guests will consider staying at the bar during the day,

whether to have a coffee in the relaxing environment or enjoy a drink at the end of

the day.

Room service is expected to be used by few customers: Business clients who don’t have

enough time to have dinner, or leasure guests who, by some reason, didn’t manage

to have dinner earlier

Hotel Occupancies2014 2015

42%

73%

46%51%67%80%78%84%72%84%76%75%54%80%59%68%

Average number of expected guests forecast100401010015030

2014High season Low season

181 13568 61110 9371 5628 21


DescriptionAverages 3 courses

High season in Canada is from May to September. As it is the warmest time of the year, it is followed by numerous events, which attract both foreign and domestic tourists. It is also common for domestic tourists to have their holidays during this season. As for low season, it lasts from October through to April, due to a long and cold winter weather.

DescriptionAverages 3 courses

Starter

CAD 17.00

CAD 13.00

CAD 17.00

Local ingredients, continental cuisine CAD 15.00

Fine dinning, steakhouse CAD 20.00

CAD 18.20

Eclectic cuisine with locally-sourced ingredients

Western menu fused with Far East flavours and local ingredients

"“Our Kitchen is Your Kitchen", local ingredients

"local chef-driven cuisine, with Italian and Country French accents"

Authentic Thai cuisine CAD 14.70

Fine dining, Thai cuisine CAD 14.15

Average prices of main competitors3 courses 2 courses

CAD 53.00 CAD 39.00 CAD 65.50 CAD 50.50 CAD 64.60 CAD 46.50 CAD 55.10 CAD 38.80 CAD 42.40 CAD 31.25 CAD 55.15 CAD 42.68

Our average checks according to meal type3 courses 2 courses

CAD 55.96 CAD 41.45 CAD 67.15 CAD 49.75 CAD 10.00 CAD 10.00

Food to Beverage ratiosLunch ratio food/ beverage Dinner Ratio food/ beverage

80% 60%20% 40%100% 100%





As we are targeting mostly corporate clients during lunch, we expect a 20% increase in beverage consumption during dinner

Our Food and Beverage average checks for lunch and dinner have been calculated based on the average prices of our courses.

3 coursesFood Beverage

CAD 44.77 CAD 11.19 CAD 40.29 CAD 26.86

CAD 10.00

CAD 33.16 CAD 8.29

CAD 29.85 CAD 18.82 CAD 10.00

Annual Price changes based on inflation2014 1015

1.146% 1.643%

CAD 33.54 CAD 34.09 CAD 8.39 CAD 8.52



Caprice Restaurant Revenue 2014January February

42% 46%1895 20862794 3077150 150

2944 3227441 486

1200 12001641 16861029 11341350 13502379 2484



Our Food and Beverage average checks for lunch and dinner have been calculated based on the average prices of our courses.

The price of our breakfast is 10 CAD. This price has been chosen based on the industry averages and our positioning on the market.

We assume 30 days a month and 365 days a year for the forecast

CAD 29,778.91 CAD 32,638.64 CAD 55,050.79 CAD 56,548.24 CAD 13,762.70 CAD 14,137.06 CAD 68,813.49 CAD 70,685.30 CAD 71,832.54 CAD 74,977.18 CAD 45,293.95 CAD 47,276.80

CAD 117,126.49 CAD 122,253.98

CAD 215,718.88 CAD 225,577.92

0.81 0.87

Caprice Restaurant Sales Forecast 2014 - 20182014 2015

CAD 562,173.84 CAD 619,097.34 CAD 767,863.34 CAD 812,134.06 CAD 191,965.83 CAD 203,033.51 CAD 959,829.17 CAD 1,015,167.57

CAD 1,087,223.60 CAD 1,164,146.05 CAD 685,547.90 CAD 734,051.29

CAD 1,772,771.49 CAD 1,898,197.34 CAD 3,294,774.50 CAD 3,532,462.25

1.11 1.19

Bar Competitive AnalysisDescription Opening Hours

Oldest pub in town, ranked 1stnearby location, classic pub

nearby location, bar Bar and Lounge at the Palliser Calgary

Lobby bar at Westin Hotel Calgary Mon - Fri: 11:00 a.m. - 11:00 p.m.

Bacchus Bar Consumer BehaviorHigh season

% occupancy hotel % of clients using the bar

80%

30%

Mon-Sat 11 am - 2 amSun 12 pm - 9 pm Mon to Fri-11:00am - 2:00am

Sat - 5:00pm til 2:00amSun - 12:00pm til late

Tue-Thu, Sat 11 am - 1 amFri 11 am - 2 am

Mon - Sat: 11:30 a.m. to MidnightSun & holidays: 2 p.m. to Midnight


80%

30%30%30%40%40%40%

80% 34%

Bacchus Bar Revenue 2014January February

42% 46%29% 29%450 450

2941 3239861 949

1311 139944 47

146% 155% CAD 21,337.61 CAD 22,755.81

Bacchus Bar Sales Forecast 2014 - 20182014 201568% 73%31% 33%5400 5616

56611 6146717969 2006223369 256781.1% 1.6%

CAD 384,597.49 CAD 424,678.67 30 30

360 3602.2 2.4

16.5 16.5


We expect the the demand for the bar to rise 4% a year for the external guests

All the prices are subjected to the yearly inflation adjustment.

Room service Revenue 2014January February

42% 46%1894.5 2086.22941 323915% 15%441 486

CAD 9,779.68 CAD 10,769.26 CAD 6,653.83 CAD 7,327.12

CAD 16,433.51 CAD 18,096.38

Room Service Sales Forecast 2014 - 20182014 201568% 73%

36464 4022256611 6146715% 15%

8492 9220

CAD 188,234.39 CAD 188,854.30

CAD 128,069.65 CAD 128,491.42 CAD 319,928.88 CAD 322,559.71


Competitive Analysis of Seminars and BanquetsNumber of venues Total meeting space (sqmt)

2 70

30 2420 (Largest 840)

4 208

10 930

2 900

Room Service charge is estimated at the industry average of 10%Food check for Room Service is calculated as an average of breakfast price and an average food check for dinner, as those are the most popular Room Service orders.

Beverage check for Room Service is calculated based on the average beverage checks for lunch and dinner.


The Elysium Seminars and Banquets Pricing3 courses 2 courses CAD 55.96 CAD 41.45

CAD 67.15 CAD 49.75

CAD 10.00 CAD 10.00

Lunch ratio food/ beverage Dinner Ratio food/ beverage80% 70%20% 30%100% 100%

29%

of total revenue25.00%

17%

F&B Cost CAD 47.01 CAD 13.63 CAD 20.15 CAD 5.04

- CAD 11.09 - -

CAD 67.15 CAD 29.76

17%

Seminars and Banquets Revenue 2014January February

42% 46%

1894.5 2086.2

15% 15%1.5 1.5

284 313

426 469

330 690

Food Costs for the Seminars and Baquets is estimated below the restaurant average, as recomended by the F&B Director of Westin Calgary. Beverage costs are estimated at the industry average.

We assume double occupancy for MICE as 1.5, as most of the Corporate clients would prefer to fill in the rooms and cut costs.

The number of rooms occupied by MICE is taken from the Demand Forecast. According to our demand forecast the

Seminar and Banquet demand is expected to increase yearly by 4% due to downtown business area development.

CAD 35,430.90 CAD 54,317.66 CAD 17,715.45 CAD 27,158.83

CAD 35,430.90 CAD 54,317.66

CAD 88,577.25 CAD 135,794.14

Sales Forecast Seminars and Banquets 2014 - 20182014 2015

68% 73%

15% 16%

7360 7654

15564 17187

CAD 737,552.95 CAD 818,441.18

CAD 368,776.47 CAD 409,220.59

CAD 737,552.95 CAD 818,441.18

CAD 1,843,882.37 CAD 2,046,102.95


High Season Mid-Season

8 6

14 12

Costs% of Revenue

27.0%

23.0%

30.0%

32.0%



Breakfast cost is estimated higher than industry average, as we will only use fresh locally produced ingredients.

% of Breakfast Revenue

23.0%

% of Revenue

25.0%

% of Total Revenue

17%

2.0%

0.7%

CAD 400.00

CAD 400.00

CAD 1,200.00

CAD 1,050.00

CAD 800.00

CAD 2,250.00

% of total cost25%

Operating Budget F&B 2014January February

CAD 29,778.91 CAD 32,638.64

CAD 126,883.33 CAD 131,525.42

CAD 59,056.64 CAD 61,413.86

CAD 215,718.88 CAD 225,577.92

CAD 35,430.90 CAD 54,317.66

CAD 17,715.45 CAD 27,158.83

CAD 35,430.90 CAD 54,317.66

CAD 88,577.25 CAD 135,794.14

CAD 21,337.61 CAD 22,755.81

CAD 9,779.68 CAD 10,769.26

CAD 6,653.83 CAD 7,327.12


Utility and Variable costs % provided by M. Bitcon, F&B Director of Westin Calgary

CAD 16,433.51 CAD 18,096.38

CAD 342,067.25 CAD 402,224.24

CAD 6,849.15 CAD 7,506.89

CAD 54,007.12 CAD 61,286.42

CAD 26,190.88 CAD 29,663.90

CAD 70,045.00 CAD 70,045.00

CAD 12,964.70 CAD 14,276.56

CAD 6,841.34 CAD 8,044.48

CAD 2,250.00 CAD 2,645.69

CAD 66.67 CAD 66.67

CAD 179,214.86 CAD 193,535.61

CAD 162,852.39 CAD 208,688.63

Operating Budet Forecast 2014 - 20182014 2015

CAD 562,173.84 CAD 619,097.34

CAD 1,855,086.93 CAD 1,976,280.11 CAD 877,513.73 CAD 937,084.80

CAD 3,294,774.50 CAD 3,532,462.25 CAD 729,196.36 CAD 818,441.18 CAD 364,598.18 CAD 409,220.59 CAD 729,196.36 CAD 818,441.18

CAD 1,822,990.89 CAD 2,046,102.95 CAD 380,239.94 CAD 424,678.67 CAD 188,234.39 CAD 188,854.30 CAD 128,069.65 CAD 128,491.42 CAD 316,304.04 CAD 317,345.72

CAD 5,814,309.37 CAD 6,320,589.59 CAD 129,299.98 CAD 142,392.39 CAD 865,329.77 CAD 930,190.95 CAD 437,605.37 CAD 571,237.68 CAD 960,217.22 CAD 981,342.00 CAD 252,397.75 CAD 279,774.92 CAD 116,286.19 CAD 126,411.79 CAD 38,244.52 CAD 151,734.65

CAD 800.00 CAD 800.00

CAD 2,800,180.80 CAD 3,183,884.39 CAD 3,014,128.57 CAD 3,136,705.20

Customer MixExternal guests

Breakfast

Avearge Prices of Main

Competitiors

Our Average Checks

Food to beverage Ratios

Our F&B Average Checks

Applied

Lunch

Dinner

Bar

Room service

Hotel Occupancies2016 2017

75% 75%

Average number of expected guests forecastDouble occupancy

2014 1.552015 1.532016 1.512017 1.482018 1.47

2014 2015Average Total

158 16564 65101 10463 6624 25

Competitive F&B AnalysisAverages 3 courses

High season in Canada is from May to September. As it is the warmest time of the year, it is followed by numerous events, which attract both foreign and domestic tourists. It is also common for domestic tourists to have their holidays during this season. As for low season, it lasts from October through to April, due to a long and cold winter weather.

Averages 3 courses Averages 3 courses

Main Dessert

CAD 25.00 CAD 11.00

CAD 22.00 CAD 11.00

CAD 35.50 CAD 13.00

CAD 28.00 CAD 16.00

CAD 28.40 CAD 16.20

CAD 22.50 CAD 14.40

CAD 20.10 CAD 7.60

CAD 30.20 CAD 10.80

Average prices of main competitors1 course


Our average checks according to meal type1 course

CAD 26.95 CAD 32.34 CAD 10.00

Food to Beverage ratiosAverage ratio

70%30%100%





As we are targeting mostly corporate clients during lunch, we expect a 20% increase in beverage consumption during dinner

Our Food and Beverage average checks for lunch and dinner have been calculated based on the average prices of our courses. Prices, which are applied to

our Restarant (excluding VAT).

3 courses 2 coursesTotal Food

CAD 55.96 CAD 33.16 CAD 67.15 CAD 29.85

CAD 10.00 CAD 10.00

Total Lunch CAD 41.45 Total Dinner CAD 48.67 Total Breakfast CAD 10.00

Annual Price changes based on inflation2016 2017

1.945% 2.025%

CAD 34.76 CAD 35.46 CAD 8.69 CAD 8.87



Caprice Restaurant Revenue 2014March April51% 67%2301 29943394 4416150 150

3544 4566536 697

1200 12001736 18971250 16271350 13502600 2977



Our Food and Beverage average checks for lunch and dinner have been calculated based on the average prices of our courses. Prices, which are applied to

our Restarant (excluding VAT).

The price of our breakfast is 10 CAD. This price has been chosen based on the industry averages and our positioning on the market.



CAD 128,007.36 CAD 146,543.37

CAD 236,640.41 CAD 272,281.07

0.92 1.10

Caprice Restaurant Sales Forecast 2014 - 20182016 2017


CAD 1,041,390.02 CAD 1,053,372.01 CAD 1,197,670.79 CAD 1,206,625.27

CAD 755,190.28 CAD 760,836.52 CAD 1,952,861.08 CAD 1,967,461.79 CAD 3,635,286.06 CAD 3,660,937.39

1.17 1.14

Bar Competitive AnalysisAv. Price of 1 beer Av. Price of 1 wine

CAD 7.20 CAD 7.50 CAD 4.50 - CAD 5.70 -

- - - CAD 9.40

CAD 5.80 CAD 8.45

Bacchus Bar Consumer BehaviorLow season

% occupancy hotel % of clients using the bar

59%

25%


59%

25%25%25%35%35%35%

59% 29%

Average price of 1 beerAverage price of 1 wine (glass)

Bacchus Bar Revenue 2014March April51% 67%29% 29%450 450

3573 46491046 13611496 1811

50 60166% 201%

CAD 24,347.11 CAD 29,473.91

Bacchus Bar Sales Forecast 2014 - 20182016 201775% 75%31% 30.0%5841 6074

62461 6109219245 1831825086 243921.9% 2.0%

CAD 416,124.33 CAD 404,936.90 30 30

360 3602.3 2.3

16.6 16.6


We expect the the demand for the bar to rise 4% a year for the external guests


Room service Revenue 2014March April51% 67%

2301.3 2994.33573 464915% 15%536 697

CAD 11,879.64 CAD 15,457.00 CAD 8,082.59 CAD 10,516.53

CAD 19,962.22 CAD 25,973.53

Room Service Sales Forecast 2014 - 20182016 201775% 75%

41310 4128962461 6109215% 15%

9369 9164

CAD 195,640.68 CAD 195,225.84

CAD 133,108.68 CAD 132,826.44 CAD 335,143.53 CAD 334,695.34


Competitive Analysis of Seminars and BanquetsSeminar package Seminar features

Other technological

Other technological

Other technological

free wireless

Room rental, 2 coffee breaks, 1 lunch




Free wireless+ Other technological


Room Service charge is estimated at the industry average of 10%Food check for Room Service is calculated as an average of breakfast price and an average food check for dinner, as those are the most popular Room Service orders.

Beverage check for Room Service is calculated based on the average beverage checks for lunch and dinner.


The price of our S&B package is estimated as an industry's average

Average price

The Elysium Seminars and Banquets Pricing1 course

CAD 26.95

CAD 29.11

CAD 10.00

Average ratio75%25%100%

Seminars and Banquets Revenue 2014March April

51% 67%

2301.3 2994.3

15% 15%1.5 1.5

345 449

518 674

690 820


Food Costs for the Seminars and Baquets is estimated below the restaurant average, as recomended by the F&B Director of Westin Calgary. Beverage costs are estimated at the industry average.

We assume double occupancy for MICE as 1.5, as most of the Corporate clients would prefer to fill in the rooms and cut costs.



CAD 56,585.08 CAD 69,980.66 CAD 28,292.54 CAD 34,990.33

CAD 56,585.08 CAD 69,980.66

CAD 141,462.70 CAD 174,951.66

Sales Forecast Seminars and Banquets 2014 - 20182016 2017

75% 75%

17% 17%

7961 8279

18247 19056

CAD 871,491.60 CAD 910,828.48

CAD 435,745.80 CAD 455,414.24

CAD 871,491.60 CAD 910,828.48

CAD 2,178,729.01 CAD 2,277,071.20


Low Season Average Party Size

2 60

6 200

Minibar CostItem Quantity

Bottled Water 0.5l (sparkling) 1

Bottled Water 0.5l (flat) 2

Breath mints 1

Peanuts 1

Cookies 1

Healthy candy bars 1



Prices source: costco.com


Crackers 1

Operating Budget F&B 2014March April

CAD 35,847.46 CAD 46,185.47

CAD 136,734.15 CAD 153,515.41

CAD 64,058.80 CAD 72,580.19

CAD 236,640.41 CAD 272,281.07

CAD 56,585.08 CAD 69,980.66

CAD 28,292.54 CAD 34,990.33

CAD 56,585.08 CAD 69,980.66

CAD 141,462.70 CAD 174,951.66

CAD 24,347.11 CAD 29,473.91

CAD 11,879.64 CAD 15,457.00

CAD 8,082.59 CAD 10,516.53


Utility and Variable costs % provided by M. Bitcon, F&B Director of Westin Calgary

CAD 19,962.22 CAD 25,973.53

CAD 422,412.44 CAD 502,680.18

CAD 8,244.91 CAD 10,622.66

CAD 63,966.08 CAD 74,365.57

CAD 31,195.26 CAD 36,890.24

CAD 70,045.00 CAD 70,045.00

CAD 15,748.56 CAD 20,490.99

CAD 8,448.25 CAD 10,053.60

CAD 2,778.48 CAD 3,306.46

CAD 66.67 CAD 66.67

CAD 200,493.22 CAD 225,841.18

CAD 221,919.22 CAD 276,838.99

Operating Budet Forecast 2014 - 20182016 2017

CAD 641,034.96 CAD 640,103.59

CAD 2,030,782.81 CAD 2,049,322.87 CAD 963,468.29 CAD 971,510.92


CAD 2,178,729.01 CAD 2,277,071.20 CAD 416,124.33 CAD 404,936.90 CAD 195,640.68 CAD 195,225.84 CAD 133,108.68 CAD 132,826.44 CAD 328,749.36 CAD 328,052.28



CAD 800.00 CAD 800.00

CAD 3,275,979.74 CAD 3,321,945.47 CAD 3,282,909.02 CAD 3,349,052.29

Customer MixExternal guests

5Few external corporate clients are

expected to have breakfast meetings in our hotel

Our F&B Average Checks

Applied

Annual Price Changes based on Inflation

Caprice Restaurant

Revenue and Sales Forecast

Bacchus Bar Revenue and

Sales Forecast

Room Service Revenue and

Sales Forecast

40

45

15

0

Considering the location of the hotel, we are expecting many external corporate clients for business lunch and takeaway

We expect external corporate clients to come back for the take

away option, along with other external guests coming for a good

dining experience.

Considering the location, our bar is an attractive option for external guests to enjoy their time in the

relaxing environment

Room service is only offered to internal guests

Hotel Occupancies2018

73%

Average number of expected guests forecast

2016 2017 2018Total Total Total168 164 15966 65 64105 104 10266 65 6426 25 24

Competitive F&B AnalysisAverage 2 courses Average 1 course

Average 2 courses Average 1 course

Starter/dessert Main Main

CAD 14.00 CAD 25.00 CAD 25.00

CAD 12.00 CAD 22.00 CAD 22.00

CAD 15.00 CAD 35.50 CAD 35.50

CAD 15.50 CAD 28.00 CAD 28.00

CAD 18.10 CAD 28.40 CAD 28.40

CAD 16.30 CAD 22.50 CAD 22.50

CAD 11.15 CAD 20.10 CAD 20.10

CAD 12.48 CAD 30.20 CAD 30.20

AveragesTotal Average competition

Our F&B Average checks appliedPrices, which are applied to our Restarant (excluding VAT).

2 courses 1 courseBeverage Total Food


CAD 10.00 CAD 10.00

Annual Price changes based on inflation2018

2.022%

CAD 36.18 CAD 9.04

CAD 32.56 CAD 20.53 CAD 10.91

CAD 45.22 CAD 53.09 CAD 10.91

Caprice Restaurant Revenue 2014May June July80% 78% 84%3601 3526 37745311 5201 5566150 150 150

5461 5351 5716839 821 879

1200 1200 12002039 2021 20791957 1916 20511350 1350 13503307 3266 3401

Prices, which are applied to our Restarant (excluding VAT).

CAD 55,234.59 CAD 54,120.23 CAD 57,819.09 CAD 68,380.19 CAD 67,796.68 CAD 69,733.52 CAD 17,095.05 CAD 16,949.17 CAD 17,433.38 CAD 85,475.24 CAD 84,745.85 CAD 87,166.90 CAD 99,824.28 CAD 98,598.90 CAD 102,666.27 CAD 62,944.11 CAD 62,171.45 CAD 64,736.13

CAD 162,768.39 CAD 160,770.36 CAD 167,402.40

CAD 303,478.22 CAD 299,636.44 CAD 312,388.39

1.26 1.24 1.31

Caprice Restaurant Sales Forecast 2014 - 20182018 CAD 633,472.87 CAD 849,487.59 CAD 212,371.90

CAD 1,061,859.48 CAD 1,209,499.57

CAD 762,648.91 CAD 1,972,148.47 CAD 3,667,480.83

1.14

Bacchus Bar Consumer Behavior

Bar capacity

30 CAD 6.70 2

Average price/beverage

Assumed number of Beverages consumed

Average beverage price was calculated based on the average price of 1 beer (most popular drink in Canada) and 1 glass of wine, as the popularity of wine Canada has been constantly increasing.

On average, Canadians consume 2 alcohol bevereges a day during, while on Friday and the weekend the average number of consumed alcohol beverages is 3

30 CAD 6.70 230 CAD 6.70 230 CAD 6.70 230 CAD 6.70 330 CAD 6.70 330 CAD 6.70 330 CAD 6.70 2.43

CAD 4.90 CAD 8.50

Bacchus Bar Revenue 2014May June July80% 78% 84%34% 34% 34%450 450 450

5590 5474 58591917 1877 20092367 2327 2459

79 78 82263% 259% 273%

CAD 38,509.71 CAD 37,862.73 CAD 40,010.24

Bacchus Bar Sales Forecast 2014 - 2018201873%29%6317

5920317307236242.0% CAD 392,165.16

303602.2

16.6

Average beverage price was calculated based on the average price of 1 beer (most popular drink in Canada) and 1 glass of wine, as the popularity of wine Canada has been constantly increasing.


Room service Revenue 2014May June July80% 78% 84%

3600.9 3526.2 3774.155590 5474 585915% 15% 15%839 821 879


Room Service Sales Forecast 2014 - 2018201873%

402335920315%

8880

CAD 193,015.81

CAD 131,322.79 CAD 330,896.72


Competitive Analysis of Seminars and BanquetsPackage minimum price Package maximum price Wedding package price

CAD 70 CAD 160 Upon Request


CAD 75 CAD 140 No Weddings


CAD 72 CAD 163 No Weddings

The information above has been taken from companies' websites or from the S&B representatives directly.


MICE forecast for 2014 is expected to be 15% and Calgary hotel association expect a 0.8% yearly increase in MICE (Jackson, p. 4, 2012)

CAD 117

F&B and Rental RatiosF&B and Meeting space rental ratios % of package price

Food 40%Beverage 20%

Rental Space 40%

2014 15%2015 16%2016 17%2017 17%2018 18%

Seminars and Banquets Revenue 2014May June July

80% 78% 84%

3600.9 3526.2 3774.15

15% 15% 15%1.5 1.5 1.5

540 529 566

810 793 849

820 690 330

The Elysium MICE Demand Forecast 2014-2018



MICE forecast for 2014 is expected to be 15% and Calgary hotel association expect a 0.8% yearly increase in MICE (Jackson, p. 4, 2012)


CAD 76,374.99 CAD 69,497.06 CAD 55,244.76

CAD 190,937.47 CAD 173,742.64 CAD 138,111.90

Sales Forecast Seminars and Banquets 2014 - 20182018

73%

18%

8610

19594

CAD 936,530.24

CAD 468,265.12

CAD 936,530.24

CAD 2,341,325.61


Banquets in /year

48

Minibar CostPrice per 1 unitTotal cost per occupied room

CAD 0.31 CAD 0.31

CAD 0.41 CAD 0.83

CAD 0.98 CAD 0.98

CAD 1.10 CAD 1.10

CAD 1.20 CAD 1.20

CAD 1.28 CAD 1.28

Assumptions are based on seasonality which is different from hotel occupancy seasonlaity

CAD 1.15 CAD 1.15

TOTAL CAD 6.84

Operating Budget F&B 2014May June July

CAD 55,234.59 CAD 54,120.23 CAD 57,819.09

CAD 168,204.47 CAD 166,395.58 CAD 172,399.79

CAD 80,039.16 CAD 79,120.62 CAD 82,169.51

CAD 303,478.22 CAD 299,636.44 CAD 312,388.39

CAD 76,374.99 CAD 69,497.06 CAD 55,244.76

CAD 38,187.49 CAD 34,748.53 CAD 27,622.38

CAD 76,374.99 CAD 69,497.06 CAD 55,244.76

CAD 190,937.47 CAD 173,742.64 CAD 138,111.90

CAD 38,509.71 CAD 37,862.73 CAD 40,010.24

CAD 18,588.36 CAD 18,202.74 CAD 19,482.70

CAD 12,647.02 CAD 12,384.66 CAD 13,255.51

CAD 31,235.37 CAD 30,587.40 CAD 32,738.20

CAD 564,160.78 CAD 541,829.21 CAD 523,248.72

CAD 12,703.96 CAD 12,447.65 CAD 13,298.39

CAD 81,922.45 CAD 79,225.61 CAD 77,423.37

CAD 42,345.85 CAD 41,029.14 CAD 40,764.41

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 24,642.16 CAD 24,130.96 CAD 25,827.77

CAD 11,283.22 CAD 10,836.58 CAD 10,464.97

CAD 3,710.85 CAD 3,563.97 CAD 3,441.75

CAD 66.67 CAD 66.67 CAD 66.67

CAD 246,720.15 CAD 241,345.58 CAD 241,332.33

CAD 317,440.63 CAD 300,483.63 CAD 281,916.39

Operating Budet Forecast 2014 - 20182018

CAD 633,472.87

CAD 2,058,987.16 CAD 975,020.80

CAD 3,667,480.83 CAD 936,530.24 CAD 468,265.12 CAD 936,530.24

CAD 2,341,325.61 CAD 392,165.16 CAD 193,015.81 CAD 131,322.79 CAD 324,338.60

CAD 6,725,310.19 CAD 145,698.76 CAD 992,234.72 CAD 590,185.81

CAD 1,047,545.93 CAD 280,895.44 CAD 134,506.20 CAD 154,396.76

CAD 800.00

CAD 3,346,263.63 CAD 3,379,046.56

Room Service Revenue and

Sales Forecast

Seminars and

Banquets

Food Costs and Minibar costs

Operating Budget F&B 2014-2018


Average check for 3 courses

CAD 53.00 CAD 39.00 CAD 25.00

CAD 46.00 CAD 34.00 CAD 22.00

CAD 65.50 CAD 50.50 CAD 35.50

CAD 59.00 CAD 43.50 CAD 28.00

CAD 64.60 CAD 46.50 CAD 28.40

CAD 55.10 CAD 38.80 CAD 22.50

Average check for 2 courses

Average check for 1 course

CAD 42.40 CAD 31.25 CAD 20.10

CAD 55.15 CAD 42.68 CAD 30.20

CAD 55.09 CAD 40.78 CAD 26.46 CAD 40.78


All the data from the table above has been gathered from the companies' websites.Average checks for different restaurants have been calculated based on the average menu prices.

1 courseBeverage Total

CAD 5.39 CAD 26.95 CAD 9.70 CAD 29.11

Caprice Restaurant Revenue 2014August September October

72% 84% 76%3236 3765 34424773 5552 5076150 150 150

4923 5702 5226754 877 801

1200 1200 12001954 2077 20011758 2046 18701350 1350 13503108 3396 3220

CAD 49,790.35 CAD 57,678.12 CAD 52,858.19 CAD 65,529.41 CAD 69,659.70 CAD 67,135.83 CAD 16,382.35 CAD 17,414.92 CAD 16,783.96 CAD 81,911.77 CAD 87,074.62 CAD 83,919.79 CAD 93,837.65 CAD 102,511.25 CAD 97,211.13 CAD 59,169.25 CAD 64,638.38 CAD 61,296.39

CAD 153,006.90 CAD 167,149.63 CAD 158,507.52

CAD 284,709.02 CAD 311,902.38 CAD 295,285.50

1.17 1.31 1.22


Bacchus Bar Revenue 2014August September October

72% 84% 76%34% 34% 29%450 450 450

5024 5845 53431722 2004 15652172 2454 2015

72 82 67241% 273% 224%

CAD 35,348.86 CAD 39,928.39 CAD 32,783.03


Room service Revenue 2014August September October

72% 84% 76%3235.95 3764.7 3441.6

5024 5845 534315% 15% 15%754 877 801



Seminars and Banquets Revenue 2014August September October

72% 84% 76%

3235.95 3764.7 3441.6

15% 15% 15%1.5 1.5 1.5

485 565 516

728 847 774

330 690 820



CAD 49,571.46 CAD 72,011.14 CAD 74,695.77

CAD 123,928.64 CAD 180,027.86 CAD 186,739.42

Operating Budget F&B 2014August September October

CAD 49,790.35 CAD 57,678.12 CAD 52,858.19

CAD 159,367.06 CAD 172,170.95 CAD 164,346.96

CAD 75,551.60 CAD 82,053.31 CAD 78,080.35

CAD 284,709.02 CAD 311,902.38 CAD 295,285.50

CAD 49,571.46 CAD 72,011.14 CAD 74,695.77

CAD 24,785.73 CAD 36,005.57 CAD 37,347.88

CAD 49,571.46 CAD 72,011.14 CAD 74,695.77

CAD 123,928.64 CAD 180,027.86 CAD 186,739.42

CAD 35,348.86 CAD 39,928.39 CAD 32,783.03

CAD 16,704.43 CAD 19,433.91 CAD 17,766.03

CAD 11,365.25 CAD 13,222.32 CAD 12,087.53

CAD 28,069.68 CAD 32,656.23 CAD 29,853.56

CAD 472,056.20 CAD 564,514.86 CAD 544,661.50

CAD 11,451.78 CAD 13,265.97 CAD 12,157.38

CAD 70,718.60 CAD 82,196.79 CAD 79,937.93

CAD 36,762.86 CAD 42,802.40 CAD 40,074.70

CAD 70,045.00 CAD 70,045.00 CAD 70,045.00

CAD 22,144.68 CAD 25,763.10 CAD 23,552.02

CAD 9,441.12 CAD 11,290.30 CAD 10,893.23

CAD 3,105.02 CAD 3,713.18 CAD 3,582.59

CAD 66.67 CAD 66.67 CAD 66.67

CAD 223,735.74 CAD 249,143.40 CAD 240,309.52

CAD 248,320.46 CAD 315,371.46 CAD 304,351.98


Opening hours lunch Opening hours dinner

5pm-9pm daily

Mon-Sun 11 am - 2 am

Mon-Sun 5:30 PM – 9:00 PM

Sun–Thu 11:00-12:00 (AM) Fri– Sat 11:00-01:00 (AM)

Mon-Fri: 6:00AM-11:00 PMSat&Sun: 6:00AM-2:00PM; 5:00PM-10:00PM

11am-2pm Monday-Friday11am-5pm Saturday-

Sunday

Mon-Fri 11:30 AM – 1:30 PM

Mon-Tue: 11:00 am – 11:00 pmWed-Fri: 11:00 am – 1:00 am

Sat: 5:00 pm – 1:00 amSun: 5:00 pm – 10:00 pm

Mon-Fri 11 am - 2:30 pmMon-Sat 5 pm - 10 pm

Mon-Thu 11:30am-10:30pmFri 11:30am-11:30pmSat 4:30pm-11:30pmSun 4:30pm- 9:30pm

All the data from the table above has been gathered from the companies' websites.Average checks for different restaurants have been calculated based on the average menu prices.

Caprice Restaurant Revenue 2014November December

75% 54%3395 24505007 3613150 150

5157 3763791 570

1200 12001991 17701845 13311350 13503195 2681



CAD 157,255.74 CAD 131,979.36

CAD 292,878.60 CAD 244,277.69

1.21 0.96



Bacchus Bar Revenue 2014November December

75% 54%29% 29%450 450

5270 38031543 11141993 1564

66 52221% 174%

CAD 32,436.80 CAD 25,445.71


Room service Revenue 2014November December

75% 54%3394.8 2449.85270 380315% 15%791 570


Seminars and Banquets Revenue 2014November December

75% 54%

3394.8 2449.8

15% 15%1.5 1.5

509 367

764 551

820 330

CAD 74,202.44 CAD 41,284.45 CAD 37,101.22 CAD 20,642.23

CAD 74,202.44 CAD 41,284.45

CAD 185,506.09 CAD 103,211.14

Operating Budget F&B 2014November December

CAD 52,160.04 CAD 38,062.74

CAD 163,213.68 CAD 140,330.14

CAD 77,504.88 CAD 65,884.81

CAD 292,878.60 CAD 244,277.69

CAD 74,202.44 CAD 41,284.45

CAD 37,101.22 CAD 20,642.23

CAD 74,202.44 CAD 41,284.45

CAD 185,506.09 CAD 103,211.14

CAD 32,436.80 CAD 25,445.71

CAD 17,524.44 CAD 12,646.21

CAD 11,923.16 CAD 8,604.15

CAD 29,447.60 CAD 21,250.36

CAD 540,269.08 CAD 394,184.90

CAD 11,996.81 CAD 8,754.43

CAD 79,354.90 CAD 60,924.92

CAD 39,741.51 CAD 30,144.23

CAD 90,415.00 CAD 90,415.00

CAD 23,231.75 CAD 16,764.80

CAD 10,805.38 CAD 7,883.70

CAD 3,553.70 CAD 2,592.81

CAD 66.67 CAD 66.67

CAD 259,165.73 CAD 217,546.55

CAD 281,103.36 CAD 176,638.35

The Elysium Operating Budget 2014 Balance Sheet Calculations2014 Income Statement Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 Accounting Assumptions in CanadaOccupied Rooms 1,894 2,086 2,301 2,994 3,601 3,526 3,774 3,236 3,765 3,442 3,395 2,450 Rooms Revenue Receipts 2014 2015 2016 2017 2018 Accounts Receivable Payment Delay (Days) 30Occupancy 42% 46% 51% 67% 80% 78% 84% 72% 84% 76% 75% 54% - OB A/R - 441,771 495,680 518,447 527,652 Accounts Payable Payment Delay (Days) 45Average/ Reference Rate 212 219 231 243 264 269 383 234 263 222 222 211 +CB A/R 441,771 495,680 518,447 527,652 524,053 Inventory Turnover (Days) 7RevPAR 89.25 101 118 162 211 211 321 168 220 170 168 115 = Credit Revenue 5,374,877 6,030,771 6,307,771 6,419,761 6,375,979 Income Tax Rate 17.54%

= Net Revenue 9,953,476 11,168,094 11,681,058 11,888,447 11,807,368 Income Tax Payment Delay (Days) 10Departamental Revenues Suplementary Room Tax 382,826 429,542.07 449,271.45 457,247.95 454,129.54 Social Charges Contribution Delay (Days) 90Rooms 433,697 490,308 568,097 773,682 1,001,124 999,449 1,497,958 804,191 1,042,933 812,954 803,706 554,696 = Revenue 9,570,650 10,738,552 11,231,786 11,431,199 11,353,239 Wifi, Telephone & Satelite TV Payment Delay 30Food & Beverage 342,067 402,224 422,412 502,680 564,161 541,829 523,249 472,056 564,515 544,661 540,269 394,185

30Laundry, Dry Cleaning Payment Delay 30

Total 775,764 892,532 990,509 1,276,362 1,565,284 1,541,279 2,021,206 1,276,247 1,607,448 1,357,615 1,343,975 948,881 Dividends Payment Delay 365Departamental Expenses Suplementary Room Tax 4%Rooms 106,019 114,113 125,193 154,586 186,962 186,662 256,672 159,070 192,960 160,478 159,142 123,448 F&B Revenue Receipts 2014 2015 2016 2017 2018 Property Taxes & Insurance 365Food & Beverage 179,215 193,536 200,493 225,841 246,720 241,346 241,332 223,736 249,143 240,310 259,166 217,547 - OB A/R - 258,060 280,530 291,107 296,083 Other Fixed Costs Payment Delay (Days) 45Total 285,234 307,649 325,687 380,427 433,682 428,007 498,004 382,806 442,103 400,788 418,308 340,994 +CB A/R 258,060 280,530 291,107 296,083 298,493 Dividends 11%Operating Profit 490,531 584,883 664,823 895,935 1,131,602 1,113,271 1,523,203 893,442 1,165,345 956,828 925,667 607,887 = Credit Revenue 3,139,727 3,413,118 3,541,800 3,602,339 3,631,668 Suplementary Room Tax Payment Delay 0%Undistribuited Operating Expenses = Net revenue 5,814,309 6,320,590 6,558,889 6,670,998 6,725,310 Administrative & General 64,104 64,104 64,104 64,104 64,104 64,104 64,104 64,104 64,104 64,104 64,104 64,104

30Marketing 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 Assumptions % of Revenues Energy 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 51,283 Energy 4.0%Total 166,670 166,670 166,670 166,670 166,670 166,670 166,670 166,670 166,670 166,670 166,670 166,670 Cost Expenditures Property Taxes 3.4% Taxes + InsuranceGross Operating Profit 323,861 418,213 498,152 729,264 964,932 946,601 1,356,532 726,771 998,674 790,157 758,997 441,216 Beverage 2014 2015 2016 2017 2018 Insurance 0.5% 4%Property Taxes & Insurance 50,001 50,001 50,001 50,001 50,001 50,001 50,001 50,001 50,001 50,001 50,001 50,001 -OB A/P - 54,986 70,743 72,400 72,846 Other Fixed Charges 3.0%Other Fixed Charges 38,462 38,462 38,462 38,462 38,462 38,462 38,462 38,462 38,462 38,462 38,462 38,462 + CB A /P 54,986 70,743 72,400 72,846 72,761 Admin & General 5.0%EBITDA 235,397 329,749 409,689 640,801 876,468 858,137 1,268,069 638,308 910,211 701,694 670,533 352,753 = Net purchases 445,998 573,800 587,245 590,866 590,174 Source:Building Depreciation 244,389 244,389 244,389 244,389 244,389 244,389 244,389 244,389 244,389 244,389 244,389 244,389 +OB Inventory - 8,392 10,955 11,256 11,330 Furniture & Equipment Depreciation 124,607 124,607 124,607 124,607 124,607 124,607 124,607 124,607 124,607 124,607 124,607 124,607 -CB Inventory 8,392 10,955 11,256 11,330 11,319 Total 368,996 368,996 368,996 368,996 368,996 368,996 368,996 368,996 368,996 368,996 368,996 368,996 COGS 437,605 571,238 586,944 590,792 590,186 Industry name Number of firms Dividend Payout Dividend YieldEBIT (133,599) (39,247) 40,693 271,805 507,472 489,141 899,072 269,311 541,215 332,697 301,537 (16,243) Hotel/Gaming 57 11% 1.58%Loan Interest 196,672 196,672 196,672 196,672 196,672 196,672 196,672 196,672 196,672 196,672 196,672 196,672 EBT (330,271) (235,919) (155,980) 75,132 310,800 292,469 702,400 72,639 344,542 136,025 104,865 (212,916)Income Tax - - - - - - - - - - - - Payment Methods Used in Canada AverageNet Income (330,271) (235,919) (155,980) 75,132 310,800 292,469 702,400 72,639 344,542 136,025 104,865 (212,916) Food 2014 2015 2016 2017 2018 Cash Sales 0.46

-OB A/P - 108,730 114,834 119,079 121,158 Credit Card Sales 0.14 0.54 +CB A /P 108,730 114,834 119,079 121,158 122,354 Credit Sales (other than credit cards) 0.32 = Net purchases 881,925 931,435 965,859 982,726 992,423 Electronic Fund Transfer 0.08 +OB Inventory - 16,595 17,839 18,510 18,840 Total 1.00 -CB Inventory 16,595 17,839 18,510 18,840 19,029 Source: http://www.cdnpay.ca/imis15/pdf/pdfs_publications/examining_canadian_payment_report_2012.pdf

2014 - 2018 Income StatementsCOGS 865,330 930,191 965,188 982,396 992,235

45

Yearly Income Statements 2014 2015 2016 2017 2018 7Number of Rooms 150 150 150 150 150Occupied Rooms 36,464 40,222 41,310 41,289 40,233 Occupancy 68% 73% 75% 75% 73%Average/Reference Rate 248 253 258 263 268 Wifi, Telephone & Satelite TV 2014 2015 2016 2017 2018RevPAR 167 186 194 198 197 -OB A/P - 16,316 17,247 17,826 18,182

+ CB A /P 16,316 17,247 17,826 18,182 18,317 Revenues COGS 198,506 209,843 216,887 221,215 222,854 Rooms 9,570,650 10,738,552 11,231,786 11,431,199 11,353,239

30 Food & Beverage 5,814,309 6,320,590 6,558,889 6,670,998 6,725,310 Total 15,384,959 17,059,141 17,790,675 18,102,197 18,078,549 Departamental Expenses Laundry, Dry Cleaning 2014 2015 2016 2017 2018Rooms 3,055,005 3,255,367 3,417,209 3,408,480 3,417,109 -OB A/P - 45,558 50,092 52,488 53,522 Food & Beverage 2,800,181 3,183,884 3,275,980 3,321,945 3,346,264 + CB A /P 45,558 50,092 52,488 53,522 53,207 Total 5,855,186 6,439,252 6,693,188 6,730,425 6,763,373 COGS 554,293 609,453 638,600 651,181 647,353 Operating Profit 9,529,773 10,619,890 11,097,487 11,371,771 11,315,176

30 Undistribuited Operating ExpensesAdministrative & General 769,248 852,957 889,534 905,110 903,927 Sales and Marketing 615,398.36 682,365.65 622,673.63 633,576.88 632,749.21 Energy 615,398 682,366 711,627 724,088 723,142 Social Contributions 2014 2015 2016 2017 2018Total 2,000,045 2,217,688 2,223,834 2,262,775 2,259,819 Total Salaries Charges 2,838,743 2,901,195 2,965,022 3,030,252 3,096,918 Gross Operating Profit 7,529,728 8,402,201 8,873,652 9,108,997 9,055,357 Gross Salaries 2,682,108 2,741,114 2,801,419 2,863,050 2,926,037 Property Taxes & Insurance 600,013 665,307 693,836 705,986 705,063 Social ChargesOther Fixed Charges 461,549 511,774 533,720 543,066 542,356 Employer Contribuition 156,635 160,081 163,603 167,202 170,881 EBITDA 6,468,166 7,225,120 7,646,096 7,859,945 7,807,937 Employee Contribuition 132,764 135,685 138,670 141,721 144,839 Building Depreciation 2,932,672 2,932,672 2,932,672 2,932,672 2,932,672 Total Contribuition 289,399 295,766 302,273 308,923 315,719 Furniture & Equipment Depreciation 1,495,281 1,495,281 1,495,281 1,495,281 1,495,281 Social Contributions 2014 2015 2016 2017 2018Total 4,427,954 4,427,954 4,427,954 4,427,954 4,427,954 -OB A/E - 71,359 72,929 74,533 76,173 EBIT 2,040,212 2,797,167 3,218,142 3,431,991 3,379,983 +CB A/E 71,359 72,929 74,533 76,173 77,849 Loan Interest 2,360,068 2,284,838 2,206,223 2,124,070 2,038,220 Expense 289,399 295,766 302,273 308,923 315,719 EBT (319,855) 512,329 1,011,919 1,307,922 1,341,763 Social Charges Contribution Delay (days) 90Income Tax 89,862 177,491 229,409 235,345 Net Income (319,855) 422,466 834,429 1,078,512 1,106,418 Depreciation 4,427,954 4,427,954 4,427,954 4,427,954 4,427,954 Internally Generated Funds 4,108,099 4,850,420 5,262,383 5,506,466 5,534,372 Income Taxe Payable 2014 2015 2016 2017 2018Cumulated IGF 4,108,099 8,958,519 14,220,901 19,727,367 25,261,739 -OB Tax Payable 0 - 2,462 4,863 6,285

+CB Tax Payable 0 2,462 4,863 6,285 6,448 Retained Earnings Expense - 89,862 177,491 229,409 235,345 Beginning Balance - (319,855) 55,168 795,891 1,753,286 Payment Delay 10 + Net Profit (319,855) 422,466 834,429 1,078,512 1,106,418 - Dividends Declared 47,442.97 93,706.35 121,116.91 124,250.76 End Balance (319,855) 55,168 795,891 1,753,286 2,735,453 Dividends Payable 2014 2015 2016 2017 2018

Dividends Paid 0 (47,443) (93,706) (121,117) (124,251)

OB Dividends Payable 0 0 47442.971932455 93706.3468223198 121116.91261151

Balance Sheet 2014 - 2018CB Dividends Payable 0 47443.0 93706.3468223198 121116.912611513 124250.75902102

Dividends Declared - 47,442.97 93,706.35 121,116.91 124,250.76 Current Assets 2014 2015 2016 2017 2018 Return on Equity 11%Cash 3,467,025 6,545,655 9,898,513 13,381,784 16,801,053 Accounts Receivables 699,830 776,210 809,554 823,734 822,546 Other Fixed Costs Payable 2014 2015 2016 2017 2018Inventory 24,988 28,795 29,767 30,171 30,348 -OB Payable - 56,903 63,095 65,801 66,953

Total Current Assets 4,191,844 7,350,660 10,737,833 14,235,689 17,653,947 +CB Payable 56,903 63,095 65,801 66,953 66,866 Fixed Assets Expense 461,549 511,774 533,720 543,066 542,356 Land 10,764,000 10,764,000 10,764,000 10,764,000 10,764,000 Payment Delay 45Building 55,720,775 52,788,103 49,855,430 46,922,758 43,990,086 Furniture & Equipment 8,971,689 7,476,407 5,981,126 4,485,844 2,990,563

Total Fixed Assets 75,456,464 71,028,510 66,600,556 62,172,602 57,744,648 Property Taxes & Insurance Payable 2014 2015 2016 2017 2018Total Assets 79,648,308 78,379,170 77,338,389 76,408,292 75,398,596 -OB Payable - 600,013.40 665,306.51 693,836.33 705,985.67

Liabilities +CB Payable 600,013.40 665,306.51 693,836.33 705,985.67 705,063.40 Accounts Payable 225,590 252,916 261,793 265,708 266,639 Expense 600,013.40 665,306.51 693,836.33 705,985.67 705,063.40 Accrued Expenses 728,275 801,331 834,171 849,112 849,778 Payment Delay 365Dividends Payable 0.0 47443 93706 121117 124251Taxes Payable 0.0 2462 4863 6285 6448

Total 953,866 1,104,152 1,194,532 1,242,222 1,247,115 Admin & General Costs 2014 2015 2016 2017 2018Long Term Loan 50,774,172 49,027,168 47,201,548 45,293,775 43,300,153 Average % of Revenues 5% 5% 5% 5% 5%

Total Liabilities 51,728,038 50,131,319 48,396,080 46,535,998 44,547,268 Admin & General Payroll 415,841 424,990 434,340 443,895 453,661 Equity Other HR Costs 137,573 143,944 150,790 158,154 166,085 Share Capital 28,240,125 28,240,125 28,240,125 28,240,125 28,240,125 Other Costs 215,834 284,023 320,600 303,061 318,798 Retained Earnings (319,855) 55,168 795,891 1,753,286 2,735,453 Total 769,247.95 852,957 889,534 905,110 903,927

Total Equity 27,920,270 28,295,293 29,036,016 29,993,411 30,975,578 Total Liabilities & Equity 79,648,308 78,426,613 77,432,096 76,529,408 75,522,846 Sales and Marketing Costs 2014 2015 2016 2017 2018

Average % of Revenues 4.0% 4.0% 3.5% 3.5% 3.5%Marketing Payroll 262,740 268,520 274,427 280,465 286,635

Statements of Cashflows 2014 - 2018Other 352,659 413,846 354,154 353,112 358,322 Total Costs 615,398 682,366 622,674 633,577 632,749

2014 2015 2016 2017 2018Depreciation 4,427,954 4,427,954 4,427,954 4,427,954 4,427,954 Net Income (319,855) 422,466 834,429 1,078,512 1,106,418

Internally Generated Funds (IGF) 4,108,099 4,850,420 5,262,383 5,506,466 5,534,372 Changes in Accounts Receivables (699,830) (76,380) (33,344) (14,180) 1,188 Changes in Inventory (24,988) (3,807) (972) (404) (177)Changes in Accounts Payables 225,590 27,326 8,876 3,916 930 Changes in Accrued Expenses 728,275 73,055 32,840 14,941 666 Changes in Taxes Payable - 2,462 2,401 1,422 163 Cash Flow from Operating Activites 229,048 22,657 9,801 5,695 2,770

Operating Cash Flow (IGF +/- ∆WCR) 4,337,146 4,873,077 5,272,183 5,512,161 5,537,142

Investments (Cash Flow From Investing Activities) - - - - - Cash Available Or Required After Investing Activities 4,337,146 4,873,077 5,272,183 5,512,161 5,537,142

LT Borrowings - - - - - Reimbursement of LTL (1,671,775) (1,747,004) (1,825,620) (1,907,772) (1,993,622)Shares Issued - - - - - Dividends paid - (47,443) (93,706) (121,117) (124,251)Cash Flows from Financing Activities (1,671,775) (1,794,447) (1,919,326) (2,028,889) (2,117,873)

Cash Variance 2,665,372 3,078,630 3,352,857 3,483,272 3,419,269

Beginning Balance of Cash 801,654 3,467,025 6,545,655 9,898,513 13,381,784 Ending Balance of Cash 3,467,025 6,545,655 9,898,513 13,381,784 16,801,053

Financial Ratios The Elysium 2014-2018Profitability Ratios 2014 2015 2016 2017 2018Profit Margin -2% 2% 5% 6% 6%Return on Assets 0% 1% 1% 1% 1%Gross Return on Assets 3% 4% 4% 4% 4%Return on Equity -1% 1% 3% 4% 4%

Sales Mix 2014 2015 2016 2017 2018Rooms 62% 63% 63% 63% 63%F&B 38% 37% 37% 37% 37%Total 100% 100% 100% 100% 100%

Working Capital & Working Capital Requirment 2014 2015 2016 2017 2018Current Assets 4,191,844 7,350,660 10,737,833 14,235,689 17,653,947 Current Liabilities 953,866 1,104,152 1,194,532 1,242,222 1,247,115 WC (CA - CL) 3,237,978 6,246,508 9,543,301 12,993,467 16,406,832 Variance 3,008,530 3,296,793 3,450,166 3,413,365 WCR (WC - Cash) (229,048) (299,147) (355,212) (388,317) (394,221)Variance (70,100) (56,064) (33,106) (5,904)

Liquidity Ratios 2014 2015 2016 2017 2018Current Ratio 4 7 9 11 14 Quick Ratio 4.37 6.63 8.96 11.44 14.13

Solvency Ratios 2014 2015 2016 2017 2018Debt to Equity Ratio 65% 65% 65% 65% 65%Interest Coverage Ratio 0.86 1.22 1.46 1.62 1.66Solvency Ratio 1.54 1.56 1.60 1.64 1.69

WACC 2014 2015 2016 2017 2018High Net Worth Individual in Canada 6% 6% 6% 6% 6%

Free Cash Flow (FCF) 2014 2015 2016 2017 2018EBIT 2,040,212 2,797,167 3,218,142 3,431,991 3,379,983 - Tax - 89,862 177,491 229,409 235,345 + Depreciation 4,427,954 4,427,954 4,427,954 4,427,954 4,427,954 - Variance WCR - (70,100) (56,064) (33,106) (5,904)FCF 6,468,166 7,065,158 7,412,541 7,597,430 7,566,688

Project FeasibilityEconomic Value Added (EVA) 2014 2015 2016 2017 2018NOPAT 1,693,376 2,321,648 2,671,058 2,848,553 2,805,386 ROCE 2% 3% 4% 4% 4%Captial 78,694,442 77,322,461 76,237,564 75,287,186 74,275,731 WACC 6% 6% 6% 6% 6%

EVA -3,325,786.67 -2,610,009.22 -2,191,404.49 -1,953,294.13 -1,931,949.67

NPV Calculations 2014 2015 2016 2017 2018WACC 6% 6% 6% 6% 6%FCF CAD 6,468,166 CAD 7,065,158 CAD 7,412,541 CAD 7,597,430 CAD 7,566,688 Present Value CAD -41,903,468 Investment Cost CAD -80,686,072 Net Present Value (NPV) CAD -122,589,540

Internal Rate of Return 2013 2014 2015 2016 2017 2018FCF CAD - CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 7,566,688.09 Investment CAD -80,686,071.53

2013 2014 2015 2016 2017 2018IRR Calculation CAD -80,686,071.53 CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 7,566,688.09

IRR % -21.6%

Feasebility Forecast According to Inflation Growth RateInternal Rate of Return 2013 2014 2015 2016 2017 2018FCF CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 7,566,688.09 Terminal Value CAD 181,027,948 FCF including terminal value CAD -80,686,071.53 CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 188,594,635.63 Present Value of FCF CAD 162,856,589 NPV CAD 82,170,517 Inflation Rate 2.11%FCF including Terminal Value CAD -80,686,072 6468166.27093769 7065158.1825289 7412540.90795758 7597429.96512018 183020038.166365IRR 23.5%

Feasebility Forecast According to GDP Growth RateInternal Rate of Return 2013 2014 2015 2016 2017 2018FCF CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 7,566,688.09 Terminal Value CAD 191,179,361 FCF including terminal value CAD -80,686,071.53 CAD 6,468,166.27 CAD 7,065,158.18 CAD 7,412,540.91 CAD 7,597,429.97 CAD 198,746,049.09 Present Value of FCF CAD 170,308,481 NPV CAD 89,622,410 Average GDP Growth Rate 2.33%FCF including Terminal Value CAD -80,686,072 6468166.27093769 7065158.1825289 7412540.90795758 7597429.96512018 198746049.090182IRR 25.4%

Account Recievable Payment Delay (days)

Account Recievable Payment Delay (days)

Source: http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html

Account Payables Payment Delay (days)

Inventory Turnover Delay (days)

Wifi, Telephone & Satelite TV Payment Delay

Laundry, Dry Cleaning Payment Delay

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The Elysium Operating

Budget 2014

Balance Sheet Calculations

2014-2018 Income

Statements

Balance Sheet 2014-2018

Statements of Cashflows 2014-2018

Financial Ratios The Elysium 2014-2018

WACC and Free Cash Flow

Project Feasibility


Total Credit

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