Rosewood 3 by panniuniu

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									Inputs
                 Required per annum
Additional Costs Unique Guests
Total Numberper perVisits No Year per to Stayretained)
CLTV Calculation Expense per Guestper Brand Strategy
         Marketing With Multi-property
Average Grossof RepeatCost ifChanges(system-wide)
Year ProfitCustomerStayper Expense are
         per Spend per
Average DailyGuest Acquisition Customer Stay Guests
           Nights per
Number of Days Average Guest Staysthey(system-wide)
GrossNumber Being guest (assuming Guest
           Stays
          Total Margin
Cash Flow of ofRetention Room
of which:NewNight from Customer
Revenue Number Customer per
TotalCostPer AcquireRetained Retained
Less Annualfrom of Customer
DiscountExpectedCustomer from Customer
          to
Expected Rate CLTV Guests
Probability Marketing of Rate
          Cash Number Flow
Average GuestFlow
Discount Factor Cash
NPV of
Total NPV of


CLTV Calculation With New Brand Strategy
Year
Number of nights/stay
Number of stays/guest (assuming retention)
Revenue/night
Revenue/customer
Gross Profit per Customer
Customer acquisition cost
Annual marketing cost/customer
Incremental marketing cost/Customerb
Cash Flow from Customer if Retained

Probability of retention
Expected customer cash flow

Discount factor

NPV of Expected Cash Flow from Customer
Total NPV of CLTV

Increase in CLTV per customer of new Market
Multiplied by # of Customers to obtain increas
Divided by 32% gross margin to obtain increas
b
  $1 million growing at 3% per year allocated to 1
                                      115,000
                                      $750.00
                                         2.0
                                         32%
                                          1.3
                                      $138.70            growing at                            6%
                  8%                    11500 Corporate growing at
                                      $150.00
                                       24,919
     Without Rosewood Branding With Rosewood$1,000,000
                                          8%
                                       21.67%
                                                                                               3%
              115,000
              $750.00 ($150.00)
                 2.0
                 32%
                 1.2
              $130.00     2003                     2004
                                                     2.0
                                                     1.2
                                                $795.00
                                              $1,908.00
                                                $610.56                     2005
                                                                              2.0
                                                                              1.2
                                                                         $842.70
                                                                       $2,022.48
                                                                         $647.19            2006
                                                                                              2.0
                                                                                              1.2
                                                                                         $893.26
                                                                                       $2,143.83
                                                                                         $686.03
              $150.00 ($150.00)
               19,169
                5,750     1.00
              16.67% ($150.00)                 ($133.90)
                                                $476.66
                                                   1.00
                                                $476.66                 ($137.92)
                                                                         $509.28
                                                                            0.17
                                                                          $84.90        ($142.05)
                                                                                         $543.97
                                                                                            0.03
                                                                                          $15.12
                         1.000
                       $378.49                    1.080
                                                $441.35                    1.166
                                                                          $72.78           1.260
                                                                                          $12.00


Strategy
                  2003                 2004                      2005    2006
                                        2.0                       2.0     2.0
                                        1.3                       1.3     1.3
                                       $795                      $843    $893
                                     $2,067                    $2,191  $2,322
                                    $661.44                   $701.13 $743.19
         -$150.00
                  -$133.90 -$137.92 -$142.05
                    -$8.96   -$9.23   -$9.50
         -$150.00 $518.58 $553.98 $591.64

             1.00                      1.00                      0.22                 0.05
         -$150.00                   $518.58                   $120.04               $27.78

                  1.00                      1.08                      1.17            1.26

       ($150.00) $480.17                                    $102.92                 $22.05
       $461.09

  w Marketing Plan
 in increase in profit of Rosewood from new brand st
ain increase in Revenue of Rosewood from new bran
ocated to 115,000 guests
Exhibit 8
Exhibit 8
Exhibit 8
Page 5 8
Exhibit
Sourcce            2007
                     2.0
                     1.2
                $946.86
              $2,272.46           2008
                                    2.0
                                    1.2
                             $1,003.67
                             $2,408.81             2009
                                                     2.0
                                                     1.2
                                              $1,063.89
                                              $2,553.33
                $727.19
               ($146.32)
                $580.87
                   0.00        $770.82
                              ($150.71)
                               $620.11
                                  0.00          $817.07
                                               ($155.23)
                                                $661.84
                                                   0.00
                  $2.69
                  1.360
                  $1.98          $0.48
                                 1.469
                                 $0.33            $0.09
                                                  1.587
                                                  $0.05




        2007    2008                         2009
         2.0     2.0                          2.0
         1.3     1.3                          1.3
        $947  $1,004                       $1,064
      $2,462  $2,610                       $2,766
     $787.79 $835.05                      $885.16

   -$146.32 -$150.71                      -$155.23
     -$9.79 -$10.08                        -$10.38
    $631.68 $674.27                        $719.55

             0.01           0.00             0.00
            $6.43          $1.49            $0.34

             1.36           1.47             1.59

            $4.72          $1.01            $0.22
                            $82.60
 w brand strategy       $9,498,542
m new brand strategy   $29,682,943

								
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