Hubbart Formula - 418 Words
Problem: Reference : Kasavana Brooks, 5th Edition, Pg. 351
Hubbart Formula Approach, Room Pricing
The Casa Vana Inn, a 200 room property, is projected to cost $9,900,000 inclusive of land, building, equipment, and furniture. An additional $100,000 is needed for working capital, bringing the total cost of construction and opening to $10,000,000. The hotel is financed with a loan of $7,500,000 at 12% annual interest and cash of $2,500,000 provided by the owners. The owners desire a 15% annual...
418 Words | 3 Pages