Transcript Art Factory Hotels Proposal

Lawyers Inns
Proposal
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Lawyers Inns
Proposal
Table of Content
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Title page - pg 1
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24 hour Deposition Room - pg 11
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Table of content -pg 2
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24 hour Virtual Library - pg 12
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Overview -pg 3
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24 hour Gym - pg 13
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External Rendering - pg 4
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Bar & Grill - pg 14
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Internal Rendering - pg 5
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Pro Forma - pg 15-17
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Floor Plans- pg 6
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List of 30 Cities for Lawyers Inns Hotels - pg 18
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Single Room Plan pg- 7
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Map of 30 Cities for Lawyers Inns Hotels - pg 19
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Single Room Internal Rendering- pg 8
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Team Members - pg 20-23
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Amenities Program - pg 9
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Strategic Partners - pg 24-31
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24 hour Video Conference Room - pg 10
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Lawyers Inns
Proposal
Overview
Lawyers Inns is a new concept in hotels designed to serve attorneys and various affiliated users
of hotel services. These properties will be targeted to guests who need accommodations convenient to
county, federal and state courthouses. These would be located in over 30 key cities with high volume
courthouse activities throughout the United States. There is a real need for hotels that will cater to this
important niche market .
The Lawyers Inns will provide the attorney with larger SMART Rooms, excellent steak house
on site, upscale bar and lounge area. A 24 hour concierge service providing local stenographic services,
research, paralegal, local corresponding law offices and video conferencing.
There will be a virtual law library, various conference rooms, large meeting rooms for
depositions with video capability, continuing education, panel discussions, mock trial rehearsal facilities and
meeting venues.
There is one lawyer for every three hundred citizens in the United States and courthouses such
as New York City, Broward County Florida to name a few are locations that are key to the market.
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Lawyers Inns
Proposal
External Rendering
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Lawyers Inns
Proposal
Internal Rendering
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Lawyers Inns
Proposal
Floor Plans
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Lawyers Inns
Proposal
Single Room Plan
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Lawyers Inns
Proposal
Single Room Internal Rendering
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Lawyers Inns
Proposal
Amenities Program
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24 hour Room Service
Bar & Grill for Breakfast, Lunch and Dinner
24 hour Video Conference Amenities
24 hour Deposition Conference rooms/ Mock Rehearsal Court room
24 hour Virtual Law Library
24 Business Center
Low Carbon Footprint Model
Upscale Bathroom Fixtures
Anti-theft Warning System
24 hour gym with Sauna and Steam
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Lawyers Inns
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24 hour Video Conference Room
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Lawyers Inns
Proposal
24 hour Deposition Room
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Lawyers Inns
Proposal
24 hour Virtual Library
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Lawyers Inns
Proposal
24 hour Gym
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Lawyers Inns
Proposal
Bar & Grill Restaurant
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Destination Hotel Partners
lawyers Inns
Closing and Construction Costs
Lawyers Inns
Proposal
Pro Forma
All amounts U.S. $ x 1,000
Land Purchase
Closing
Bank Fees
Mortgage Recording Taxes
Mortgage Transfer Tax
Legal Fees
Feasibility Study
Title Insurance
Prepaid Exp
Environmental Phase I
Accounting/Audit
Broker Fee
985,000
2.0%
9,000,000
0.2%
9,000,000
Total Closing Costs
Soft Costs
Arch
Interior Design
Engineering
Expeditor
Entitlements / Permits / Zoning Consultant
Construction Manager
Developer Fee
Insurance
Pre-opening Expenses
Interest Reserve (avg balance $9.0M at avg int rate of 10%)
Working Capital
Contingency
Total Soft Costs
Hard Costs
New Construction
FF&E
Contingency
Total Hard Costs
Total Hard and Soft Costs
180,000
0
0
50,000
10,000
18,000
0
10,000
0
0
268,000
Per SF
2.0% of Hard Costs
1.0% of Hard Costs
0.5% of Hard Costs
2.0% of Hard Costs
10.0% of Hard Costs
1.0%
9,000,000
$1,000 per room
$2,000 per room
5.0%
SF
$95
55,000
$6,000 per room
5.0%
122,925
61,463
30,731
20,000
50,000
122,925
614,625
90,000
110,000
450,000
220,000
94,633
1,987,302
$36.13
Per SF
Per Room
18,066
Per Room
5,225,000
660,000
261,250
6,146,250
$111.75
55,875
8,133,552
$147.88
73,941
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Lawyers Inns
Proposal
Pro Forma
Destination Hotel Partners
Lawyers Inns
All amounts U.S. $ x 1,000
Year 1
$
No. of rooms
Rooms available
Rooms sold
Occupancy %
Average Rate Hotel
%
110
40,150
27,704
69.0%
$149
Year 2
$
110
40,150
28,105
70.0%
$161
%
Year 3
$
110
40,150
28,507
71.0%
$169
%
Year 4
$
110
40,150
28,908
72.0%
$177
%
Year 5
$
110
40,150
29,310
73.0%
$186
%
Revenues
Rooms
Restauraunt Food & Beverage
Telecom
Other Income
Total Revenues
4,128
1,032
55
50
5,265
78.4%
19.6%
1.1%
0.9%
100.0%
4,523
1,187
56
53
5,818
77.7%
20.4%
1.0%
0.9%
100.0%
4,817
1,365
57
55
6,294
76.5%
21.7%
0.9%
0.9%
100.0%
5,129
1,433
58
58
6,677
76.8%
21.5%
0.9%
0.9%
100.0%
5,460
1,505
59
61
7,084
77.1%
21.2%
0.8%
0.9%
100.0%
Departmental Expenses
Rooms
Restaurant Food & Beverage
Telecom
Other Income
Total Departmental Expenses
826
774
55
13
1,667
20.0%
75.0%
100.0%
25.0%
31.7%
1,085
890
56
13
2,045
24.0%
75.0%
100.0%
25.0%
35.1%
1,108
1,024
57
14
2,202
23.0%
75.0%
100.0%
25.0%
35.0%
1,128
1,075
58
14
2,275
22.0%
75.0%
100.0%
25.0%
34.1%
1,201
1,128
59
15
2,403
22.0%
75.0%
100.0%
25.0%
33.9%
Operating Department Income
3,598
68.3%
3,773
64.9%
4,091
65.0%
4,402
65.9%
4,680
66.1%
Undistributed Operating Expenses
Administrative & General
Marketing
Repairs & Maintenance
Heat, Light & Power
Franchise Fees
Total Undistributed Operating Expenses
316
105
211
211
211
1,053
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
378
116
233
233
233
1,193
6.5%
2.0%
4.0%
4.0%
4.0%
20.5%
378
126
252
252
252
1,259
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
401
134
267
267
267
1,335
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
425
142
283
283
283
1,417
6.0%
2.0%
4.0%
4.0%
4.0%
20.0%
Gross Operating Profit
2,545
48.3%
2,581
44.4%
2,833
45.0%
3,067
45.9%
3,264
46.1%
Fixed Expenses
Management Fees
Insurance
Land Lease
Real Estate Tax
Reserve for capital replacements
Total Fixed Expenses
158
60
1,050
81
105
1,455
3.0%
1.1%
19.9%
1.5%
2.0%
27.6%
175
66
1,082
89
175
1,586
3.0%
1.1%
18.6%
1.5%
3.0%
27.3%
189
73
1,114
98
252
1,726
3.0%
1.2%
17.7%
1.6%
4.0%
27.4%
200
80
1,147
108
267
1,803
3.0%
1.2%
17.2%
1.6%
4.0%
27.0%
213
88
1,182
119
283
1,885
3.0%
1.2%
16.7%
1.7%
4.0%
26.6%
Cash flow before Debt Service
1,090
20.7%
995
17.1%
1,107
17.6%
1,264
18.9%
1,379
19.5%
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Lawyers Inns
Proposal
Pro Forma
Financing
Purchase Price (in millions)
Closing, Hard & Soft Costs
Total Purchase
Rate
Term
Debt
Equity for Purchase
Debt Service at Year 1
Equity for Purchase
Cash Flow before Debt Service
Carrying Costs While Under Renovation
Insurance
Real Estate Taxes
Debt Service
Sale at End of 5th Year
Loan Balance at end of 5th Year
Cash Inflows/Outflows
DCR
IRR
Per Room
8,955
985,000
8,401,552
9,386,552
5.5%
25
60% 5,631,931
40% 3,754,621
415,020
85,332
Year -2
-3,755
Year -1
Year 1
1,090
Cap Rate
Year 2
995
Year 3
1,107
Year 4
Year 5
1,264
1,379
-60
-81
0
-60
-81
0
-415
-415
-415
-415
-3,896
-141
675
579
692
849
-415
17,239
-5,028
13,175
2.63
2.40
2.67
3.04
3.32
8%
29%
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Lawyers Inns
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30 top cities for Lawyers Inns
1. New York
2. Boston
3. Washington DC
4. Baltimore
5. Newark
6. Seattle
7. Las Vegas
8. Austin
9. Houston
10. Dallas
11. Los Angeles
12. San Francisco
13. Philadelphia
14. Phoenix
15. Cleveland
16. Chicago
17. San Jose
18. Detroit
19. Portland
20. Atlanta
21. Fort Lauderdale
22. Memphis
23. Miami
24. Charlotte
25. Nashville
26. Milwaukee
27. Denver
28. St. Louis
29. Cincinnati
30. Kansas City
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Lawyers Inns
Proposal
US Map for Lawyers Inns
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Lawyers Inns
Proposal
Team Members
President and CEO of Destination Hotel Partners, LLC a global hotel development company
specializing in hotels, resorts, and mixed-use development. Vice Chairman CEO of China Topsun Hotels
International Group Ltd., a Chinese based joint venture hotel development company. Vice Chairman CEO of
Goldstone Hospitality Group LLC, a New York based joint venture hotel development company.
James Bates has a long and successful track record in the hospitality industry for over 35
years. His innovative and dynamic approach to building brands, developing new product and executing
Destination
excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior
Hotel Partners, management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels
LLC,
and Resorts, Helmsley Hotels, Boutique Hotels & Resorts International as well as several independent
James C.
Bates,
President &
CEO
properties and projects.
Mr. Bates began his career in Beverly Hills, California at the Beverly Hills Hotel, Beverly
Wilshire Hotel, and The Beverly Hilton Hotel.
James Bates has served on several advisory boards including: Travel Industry Association of
America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best Western
International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE We Love
New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing Association
International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates has served on
numerous Convention and Visitors Bureaus Boards of Directors and advisory boards worldwide; and has
participated on numerous panels and guest speaking engagements worldwide including NAFEO
Conference, Nixon Peabody IPED Conference and White House Initiative on HCBU’s, and Shangri La Asia
Conference.
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Team Members
Mr. Campiglia is an established member of the American Institute of
Architects, A fellow of the Frank Lloyd Wright Foundation, certified member of
the National Architectural Review Board and is licensed to practice
Architecture in New York, New Jersey, Connecticut and California.
He has worked as a Senior Architect for the international firm of
Ellerbe Becket Architects. He maintains his practice as President of TCA
Thomas Campiglia, Architecture, a professional Architectural Administrative Practice in New York
City.
Architect
Currently Mr. Campiglia is a consultant to Destination Hotels Partners,
LLC, Lawyers Inns LLC, Canyon / Agassi, Columbia University, Emblem
Health Insurance, Mercy College and Ann Taylor Corporation. He has
extensive experience in both building renovation and new construction, and
has developed designs for Beaver Creek Ski Resort in Colorado, Woodlands
Inn in Houston Texas, Kiahuna Village in Kawai, Hawaii, Squaw Valley and
various resorts.
Mr. Campiglia has received awards for his work with the New York
City Center for Abused Children for the design of Brooklyn Children’s
Advocacy Center, a Merit Award for the Museum of Santa Barbara Design
Competition and recently received the Albert Meiniker Award for the design of
a room for a child with spastic quadriplegia.
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Lawyers Inns
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Team Members
Gary Jacobs
With 30 years of experience in operating and designing kitchens,
bars, concessions and serveries across the country, in the Caribbean
and Europe, Gary Jacobs has a long history of addressing both the preand post construction demands of all levels of foodservice operations. In
designing a facility, he is as concerned with first cost, fit and flow as he is
with durability, adaptability and ease of long term maintenance. With a
long and distinguished list of clients that he has built over the years,
Gary has been able to learn from the best, and has identified the
elements common to all successful operations.
Among the designers and architects he has collaborated with are
Rockwell Group, Jeffrey Beers International, Bogdanow Partners, Ten
Arquitectos, Costas Kondylis & Partners and Yabu Pushelberg.
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Lawyers Inns
Proposal
Team Members
Allen Ostroff
Allen Ostroff has over 25 years of experience as the Managing
Director of Prudential Insurance Company’s Realty Group and Prudential
Securities where he provided a wealth of experience in structuring
acquisitions, development, and asset and financial management. He
created a $3.6 billion hotel equity portfolio and a $1 billion shopping center
portfolio.
His expertise and successes in overseeing investments and
operations in 4-5 star hotels representing 30,000 rooms and 175
restaurants adds significant management depth and focus on the core
issues of control, efficiency, and value maximization. Mr. Ostroff knows the
hotel business trade, having led the key due diligence process and financial
structuring in over 200 acquisitions. Prior to joining Prudential, Mr. Ostroff
served as the General Manager of the 2,000 plus room New York Hilton,
Operations Manager at New York’s famed Waldorf Astoria, and Group Vice
President of Americana Hotels.
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Lawyers Inns
Proposal
Strategic Partners
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Horwath HTL - Hospitality Consultant
JP Morgan Chase - International Bank
Ernst & Young - Accounting
Norton Rose LLP- Legal
Jacobs, Doland & Beer - Food Service Design
Hotel Dynamics, LLC - Owners Representative
Buy China Direct - FF& E Consultant
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Lawyers Inns
Proposal
Strategic Partners
Horwath HTL
Horwath HTL is the largest specialist consulting network in this sector, with
50 offices in 39 countries. Our unrivalled global reach is matched by a unique depth
of knowledge and experience gained from thousands of projects over many years,
in all kinds of economic climates.
We remain the number one choice for hotel and real estate companies, as
well as financial institutions looking to invest in the industry. Whatever and wherever
your project, we offer the reassurance of an internationally consistent quality of
service combined with local solutions.
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Lawyers Inns
Proposal
Strategic Partners
JP Morgan Chase
JPMorgan Chase is one of the oldest financial institutions in the United States.
With a history dating back over 200 years, here's where we stand today:

We are a leading global financial services firm with assets of $2.3 trillion.
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We operate in more than 60 countries.
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We have more than 240,000 employees.

We serve millions of consumers, small businesses and many of the world's most
prominent corporate, institutional and government clients.
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We are a leader in investment banking, financial services for consumers, small
business and commercial banking, financial transaction processing, asset
management and private equity.

Our stock is a component of the Dow Jones Industrial Average.
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Lawyers Inns
Proposal
Strategic Partners
Ernst & Young
Ernst & Young is a global leader in assaurance, tax, transactions, and
advisory service. Our 167,000 people are united by our shared values, which
inspire our people worldwide and guide them to do the right thing, and our
commitment to quality, which is embedded in who we are and everything we do.
Ernst & Young is committed to doing its part in building a better working world
for our people, for our clients and for our communities.
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Lawyers Inns
Proposal
Strategic Partners
Norton Rose LLP
Norton Rose is a leading international legal practice. We offer a full business law service to
many of the world’s pre-eminent financial institutions and corporations from offices in Europe, Asia,
Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing how our
clients’ businesses work and understanding what drives their industries is fundamental to us. Our
lawyers share industry knowledge and sector expertise across borders, enabling us to support our
clients anywhere in the world. We are strong in financial institutions; energy; infrastructure, mining
and commodities; transport; technology and innovation; and pharmaceuticals and life sciences.
On June 1, 2013 Norton Rose will join forces with leading U.S. law firm Fulbright & Jaworski
L.L.P. to form Norton Rose Fulbright. With 3800 lawyers and 54 offices, including 11 in the USA,
Norton Rose Fulbright will be one of the largest global legal practices, with significant depth of
expertise in the world’s leading business and financial centers.
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Lawyers Inns
Proposal
Strategic Partners
Jacobs, Doland &Beer
Jacobs, Doland &Beer is a New York City based foodservice design firm
specializing in the planning and construction of all segments of commercial
foodservice and hospitality venues, both across the U.S. and overseas.
Jacobs, Doland &Beer specializes in developing back- and front- of house
foodservice solutions. Since one cannot thrive without the other, we use an integrated
approach to foodservice design to bring our clients’ concepts to life. We strive to meet
our clients’ needs - timelines, budgets, foodservice program sustainability - without
sacrificing the quality of the end result, whether designing retail operations or highthroughput production kitchens. From initial concept development, through design and
implementation, Jacobs, Doland &Beer design specialists work closely with owners,
chefs, architects and engineers through all phases of new construction and renovation
projects.
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Lawyers Inns
Proposal
Strategic Partners
Hotel Dynamics
Hotel Dynamics represents the hospitality industry's top experts in asset
management, financing, owner's representation and construction management.
Hotel Dynamics will strive to maximize the value of your asset and capital through
extensive due diligence for acquisition, re-branding and repositioning, property
renovation, new construction and asset management.
Our Team will bring unmatched expertise to all phases of the asset's lifecycle
for a wide array of clients. The process starts with conducting due diligence that will
enable asset owners to make the right acquisition or development decisions. We
then transition our skills to managing the asset and formulating a plan to reposition
the asset for long-term profitability. In the event that the repositioning decision
includes any form of construction or brand PIP, we can seamlessly plan and
implement the construction and renovations.
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Lawyers Inns
Proposal
Strategic Partners
Buy China Direct
BCD is a multinational company based in Guangzhou, China with offices in US,
Central America, and independent agents in South America, South Africa and Australia.
Our company objective is to be the leading world wide building materials supply chain by
providing factory direct materials straight to the developers' door steps at tremendous
savings.
We specialize in interior finishes and decorative building materials ranging from
kitchen cabinets, bathroom vanities, tubs, toilets, showers, taps and faucets, doors,
windows, ceramic, porcelain, glass and stone tiles to wood flooring and other decorative
essentials.
We aim to give our clients the competitive advantage in todays ever difficult market
by adding a global perspective and allowing small to mid size companies to order direct
from the factories. We are your partners from the moment we start to work together. We
provide manufacturing, sourcing, QC, CAD design and other logistic services direct to your
doors step.
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