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Characteristic:
| 1. |
Return on investment fluctuates according to the condition of US economy, due to
the number of corporate travelers highly affected by the condition of US economy. |
| 2. |
Due to changing of occupancy is on a daily basis, a relative higher variation on
income projection is expected. |
| 3. |
Return on investment (not including future appreciation value of the real estate),
we usually expect 3% to 35% annually. |
| 4. |
For hotel investments, we usually recommend higher investment equity with low
finance and efficient management to eliminate the foreseeable risks. |
Example
Investment Objective: Days Inn
Location: South Plainfield New Jersey
Total Usage Space: 87,000 Square Feet
Land area: 4 Acr.
Purchase Price: 3,500,000
Investment amount: 2,000,000
Finance: 1,500,000
Purchased year: 1997
Construction Replacement cost: 7,800,000
(Land 2,800,000 + Construction 5,000,000)
DAYS INN INVESTMENT RETURN TABLE

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