Cha-Am Project

EXPLANATIONS TO THE PLANNING NUMBERS

The profitability calculation has been prepared for the first financial year after completion

1. Sales

The sales revenues were determined based on the room prices, the seasons and the occupancy rate in the respective months. Next, the income for lodgings thus determined is the income from F & B with income of Euro 30.00 per person / full board including Drinks have been calculated. The revenue from the Medical Wellness area is planned at EUR 111,000 for 111,563 guest days per year 800 been set. In the first few years, we assume that the guests will use the offer 23% of the time, ie. at approx. 25,000 days this area is used, the turnover per guest per day in the wellness area has been calculated with euros

a. room prices, acc. investment

b. seasons, acc. investment

c. utilization, acc. investment

2. Use of goods

The use of goods is due to the high-quality overall concept of the hotel, which is also implemented in the restaurant area, with 11.5% been calculated. The high standard is first and foremost achieved through the processing of fresh, high-quality goods. Next to the For international guests, national dishes are also available in Italian, Japanese and Scandinavian restaurants Kitchen provided.

3. Discount income

As a supplier of goods, companies are chosen that are reliable and efficient. This applies to canned goods and the “dry offer” on food but also for the fresh offer. Here the suppliers of the markets can be used. The Delivery agreements will also provide for the deduction of discount. Discounts are deducted from the use of goods.

4. Personnel costs

Private Palace Hotel ChaAm plans to employ 340 people. In addition to filling some leadership positions with foreign Employees, primarily from Germany, are employed exclusively by local employees. Here is the wage level in the Thai hotel and gastronomy sector. Furthermore, labor costs are in accordance with the valid Agreements, in particular the statutory provisions for health insurance. In addition, in the first Years ago, the cost of training and education of employees has been calculated to the standard of the Private Palace Hotels.

5. Advertising

The advertising expenditure has been adjusted to the corporate strategy of Private Palace Hotels with just under 5%. Internationally active Hotel chains have a correspondingly high expenditure.

6. Commissions

For the mediation of travel through travel agencies and travel agencies commissions have been taken into account, the cost of the proceeds deducted.

7. Energy costs

The energy bill has taken into account that in each room / room air conditioning is installed and the operation of the Spa is associated with increased consumption costs.

8. Rent / lease

Have not been planned because all capital goods are to be purchased.

9. Maintenance

For maintenance, amounts have been used that also calculate internationally active hotel chains, this applies in particular to machines and furnishings. Expenses for the modernization of the building have not been calculated in the first years, they are with the Depreciation is covered.

10. Depreciation

The depreciations are within the limits of the tax allowable, differentiated according to buildings, outdoor facilities and equipment and inventory, depreciation amounts to 5.4%.

11. Interest

Since debt financing has not yet been conclusively negotiated, interest rates are in line with banking practices Project financing has been calculated at a premium.

12. Insurance

The required insurance will be taken out by an international insurance group.

13. Administration

The administration has been designed especially for the local organizational process and has been included in the costs. Basic accounting tasks are transferred to the management company, the costs of which are included in the management fee