中国极酒店 G Hotels China Proposal

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中国极酒店 G Hotels China

Proposal

Intercontinental Hotels & Resorts Shanghai Ruijin

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Proposal Table of Content

• Title Page - pg 1

• Table of Content -pg 2

• Overview -pg 3

• External Rendering - pg 4

• Internal Rendering - pg 5

• Lobby Plans- pg 6

• Floor Plans pg- 7

• Roof Plans- pg 8

• Double Queen Room Plan - pg 9

• King Room Plan- pg 10

• King Room Internal Rendering- pg 11

• Amenities Program - pg 12

• Restaurant Elements - pg 13

• Private Dinning Rooms - pg 14

• 24 hour Spa- pg 15

• 24 hour Gym- pg 16

• Pro Formas- pg 17-19

• List of 20 Cities - pg 20

• Map of 20 Cities - pg 21

• Team Members - pg 22-25

• Strategic Partners - pg 26-34

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Proposal Overview

A new concept in modern hotels for people who want to stay at a specifically Chinese Hotel in China. G Hotels

China ( 中国极酒店 ) will present an immediately different context from the standard western model. G Hotels China ( 中国极

酒店 ) will combine the highest international standards and management practices with a distinct Chinese cultural bias. The

hotels will be completely bilingual. Even the name G ( 极 ) was selected for its Chinese meaning (utmost) . G Hotels China

( 中国极酒店 ) will be located in emerging business areas of important cities. Public areas will reinforce the Chinese context

and incorporate a 1st class restaurant and bar. The exterior will have a modern look with traditional Chinese accents.

All great hotel brands are performance art. They provide not just a bed but an opportunity to participate in a bit

of fantasy. The G Hotels China ( 中国极酒店 ) product will be aimed at the top of the market and will have room rates

competitive with the best hotels in town. The demographic group being targeted is between 21 to 45. The focus will be on

guests who are able to afford the experience they want and are creatively oriented. G Hotels China ( 中国极酒店 ) wants to

appeal to both people who are part of the Chinese culture and people who want to visit it. The hotel will offer 5 star amenities

including 24 hour room service, state of the art business center, gym and extraordinary concierge services.

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Proposal External Rendering

Intercontinental Hotels & Resorts Shanghai Ruijin

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Proposal Internal Rendering

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Proposal Lobby Plans

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Proposal Floor Plans

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Proposal Roof Plans

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Proposal Double Queen Room Plan

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Proposal King Room Plan

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Proposal King Room Internal Rendering

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Proposal Amenities Program

• 24 hour Room Service

• 24 Business Center

• Rooftop Lounge

• Outside Deck

• Low Carbon Footprint Model

• Upscale Bathroom Fixtures

• Internet TV

• Anti-theft Warning System

• Same Day Laundry Service

• Video Conference System

• 24 hour Self-service key Access

• Business Center with VIP Assistant

•24 hour gym with traditional Chinese Bath•Upscale Bathroom Fixtures •Anti-theft Warning System

•Private Dinning Catering

•Four Star restaurant for breakfast, lunch and

dinner with a lounge component as well.

•VIP Assistant

•In Room Amenities:

•Totally wired smart rooms

•Big screen TV

•Door card receiving lights, air

conditioning, drapes shades, dimmer

switches for lights from bedside

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Proposal Restaurant Elements

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Proposal Private Dinning Room

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Proposal 24 Hour Spa

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Proposal 24 hour Gym

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Proposal Pro Forma

G Hotels China Closing and Construction Costs

All amounts U.S. $ x 1,000

Land Purchase 985,000

ClosingBank Fees 2.0% 9,000,000 180,000Mortgage Recording Taxes 0Mortgage Transfer Tax 0Legal Fees 50,000Feasibility Study 10,000Title Insurance 0.2% 9,000,000 18,000Prepaid Exp 0Environmental Phase I 10,000Accounting/Audit 0Broker Fee 0

Total Closing Costs 268,000

Soft Costs Per SF Per RoomArch 2.0% of Hard Costs 124,125Interior Design 1.0% of Hard Costs 62,063Engineering 0.5% of Hard Costs 31,031Expeditor 20,000Entitlements / Permits / Zoning Consultant 50,000Construction Manager 2.0% of Hard Costs 124,125Developer Fee 10.0% of Hard Costs 620,625Insurance 1.0% 9,000,000 90,000Pre-opening Expenses $1,000 per room 120,000Interest Reserve (avg balance $9.0M at avg int rate of 10%) 450,000Working Capital $2,000 per room 240,000Contingency 5.0% 96,598Total Soft Costs 2,028,567 $36.88 16,905

Hard Costs SF Per SF Per RoomNew Construction $95 55,000 5,225,000FF&E $6,000 per room 720,000Contingency 5.0% 261,250Total Hard Costs 6,206,250 $112.84 51,719

Total Hard and Soft Costs 8,234,817 $149.72 68,623

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Proposal Pro Forma

G Hotels China All amounts U.S. $ x 1,000

Year 1 Year 2 Year 3 Year 4 Year 5

$ % $ % $ % $ % $ %No. of rooms 110 110 110 110 110Rooms available 40,150 40,150 40,150 40,150 40,150Rooms sold 27,704 28,105 28,507 28,908 29,310Occupancy % 69.0% 70.0% 71.0% 72.0% 73.0%Average Rate Hotel $149 $161 $169 $177 $186

RevenuesRooms 4,128 78.4% 4,523 77.7% 4,817 76.5% 5,129 76.8% 5,460 77.1%Restauraunt Food & Beverage 1,032 19.6% 1,187 20.4% 1,365 21.7% 1,433 21.5% 1,505 21.2%Telecom 55 1.1% 56 1.0% 57 0.9% 58 0.9% 59 0.8%Other Income 50 0.9% 53 0.9% 55 0.9% 58 0.9% 61 0.9%

Total Revenues 5,265 100.0% 5,818 100.0% 6,294 100.0% 6,677 100.0% 7,084 100.0%

Departmental ExpensesRooms 826 20.0% 1,085 24.0% 1,108 23.0% 1,128 22.0% 1,201 22.0%Restaurant Food & Beverage 774 75.0% 890 75.0% 1,024 75.0% 1,075 75.0% 1,128 75.0%Telecom 55 100.0% 56 100.0% 57 100.0% 58 100.0% 59 100.0%Other Income 13 25.0% 13 25.0% 14 25.0% 14 25.0% 15 25.0%

Total Departmental Expenses 1,667 31.7% 2,045 35.1% 2,202 35.0% 2,275 34.1% 2,403 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 ExpensesAdministrative & General 316 6.0% 378 6.5% 378 6.0% 401 6.0% 425 6.0%Marketing 105 2.0% 116 2.0% 126 2.0% 134 2.0% 142 2.0%Repairs & Maintenance 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283 4.0%Heat, Light & Power 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283 4.0%Franchise Fees 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283 4.0%Asset Management Fee 340 6.45% 375 6.45% 406 6.45% 431 6.45% 457 6.45%

Total Undistributed Operating Expenses 1,053 26.5% 1,193 27.0% 1,259 26.5% 1,335 26.5% 1,417 26.5%

Gross Operating Profit 2,545 48.3% 2,581 44.4% 2,833 45.0% 3,067 45.9% 3,264 46.1%

Fixed ExpensesManagement Fees 158 3.0% 175 3.0% 189 3.0% 200 3.0% 213 3.0%Insurance 60 1.1% 66 1.1% 73 1.2% 80 1.2% 88 1.2%Land Lease 1,050 19.9% 1,082 18.6% 1,114 17.7% 1,147 17.2% 1,182 16.7%Real Estate Tax 81 1.5% 89 1.5% 98 1.6% 108 1.6% 119 1.7%Reserve for capital replacements 105 2.0% 175 3.0% 252 4.0% 267 4.0% 283 4.0%

Total Fixed Expenses 1,455 27.6% 1,586 27.3% 1,726 27.4% 1,803 27.0% 1,885 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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Proposal Pro Forma

Financing Per RoomPurchase Price (in millions) 985,000 8,955Closing, Hard & Soft Costs 8,401,552Total Purchase 9,386,552 85,332Rate 5.5%Term 25Debt 60% 5,631,931Equity for Purchase 40% 3,754,621Debt Service at Year 1 415,020

Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5Equity for Purchase -3,755Cash Flow before Debt Service 1,090 995 1,107 1,264 1,379Carrying Costs While Under Renovation

Insurance -60 -60Real Estate Taxes -81 -81

Debt Service 0 0 -415 -415 -415 -415 -415Sale at End of 5th Year Cap Rate 17,239Loan Balance at end of 5th Year -5,028Cash Inflows/Outflows -3,896 -141 675 579 692 849 13,175

DCR 2.63 2.40 2.67 3.04 3.32IRR 29%

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Proposal 20 Top Cities For G Hotels China

1) Shanghai2) Guangzhou3) Fuzhou4) Kunming5) Beijing6) Shenzhen7) Tianjin8) Hongkong9) Ningbo10) Dalian

11) Hangzhou12) Qingdao13) Wuxi 14) Xiamen15) Sanya16) Huangshan17) Lijiang18) Nanjing19) Haikou20) Chongquing

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Proposal Map For G Hotels China

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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 excellent return on

investment makes him a sought after expert in the market. Mr. Bates has held senior management positions with

Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels and Resorts, Helmsley Hotels,

Boutique Hotels & Resorts International as well as several independent 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.

Destination Hotel Partners, LLC,

James C. Bates, President & CEO

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Patrick Parsons

Patrick Parsons has over 15 years experience in the Chinese real

estate market, widely recognized as one of the first true western developers in Beijing. He

has over 10 years experience working with Beijing’s Tier 1 Chinese developers, and has

built strong relationships with Chinese government officials. With in-depth experience in

research, marketing, sales, construction and development. Instrumental in major

apartment and office projects ,including villa complexes, five star hotels, retail and mixed-

use projects up to 1 million square meters in size. Worked with and consulted for some of

Beijing’s largest real estate developers

Over the years his main focus has been in the retail and hospitality industry.

He has developed some of the most renown retail and mixed development projects in

Northern China varying from the top of the market with Ritz Carlton and brands such as

Chanel and Gucci as well as mass market developments with 4 star Hotels and brands

such as Zara and H & M. He has been a pioneer in lots of these projects.

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Bill BrothersWQB Architecture PLLC

WQB Architecture PLLC is a professional practice committed to design excellence and superior project management.

The firm specialties include: luxury and government assisted housing, hospitality and resort projects, healthcare planning and design projects and community and land use planning.

Mr. Brothers is a Registered Architect in New York, New Jersey, Connecticut, Rhode Island; member National Council of Architectural Registration Boards (NCARB).

Mr. Brothers has acted as a developer for five residential projects with 17 buildings and routinely provides development and real estate related financial-consulting services for several major developers and a variety of governmental and not-for-profit organizations. He is a licensed real estate broker in the State of New York under his real estate development company Interactive Development Associates.

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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.

Allen J. Ostroff

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Proposal Strategic Partners

Horwath HTL - Hospitality Consultant JP Morgan Chase - International Bank Ernst & Young - Accounting Norton Rose LLP- Legal AECOM Robert Colin Bryant- Architecture & Design Hotel Dynamics, LLC - Owners Representative Buy China Direct - FF& E Consultant • Shanghai Construction Decoration (Group) Co.,Ltd. - Interior Design

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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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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.

We operate in more than 60 countries.

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.

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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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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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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Robert Colin Bryant

Robert Bryant has twenty-five years of diverse experience in the lodging, real

estate, and food-service industries. He is a specialist in property feasibility and development,

strategic planning and concept determination, resort asset or interim management,

construction, marketing, and operations-both corporate and entrepreneurial.

Robert is aware of the fact that the creation of new places and repositioning of

existing ones will require thought and implementation that is truly different from others in the

real estate arena. Therefore, Robert Colin Bryant and its affiliates are organized in the form of

an orchestra, whereby the firm acts as a conductor of an orchestra of "sections", each

sounding wonderful in their own right, but sublime when "well-orchestrated" to create properties

of timeless elegance and strong financial performance. Our goal is to find fresh solutions that

no longer render the predictable acceptable.

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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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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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Shanghai Construction Decoration (Group) Co.,Ltd.

Construction is the solidification of music, label of culture. It has been 50 years since the foundation of Shanghai Housing Renovation Co.,Ltd. in 1960.We push forward decoration industry by the brand of Shanghai Construction Decoration Group.The only assets is brand , the only product is project, the only aim of our company is providing the best service.

Shanghai Construction Decoration (Group) Co.,Ltd. formerly belongs to Shanghai Municipal Housing, Land and Resources Administration. It is classified as first batch restructuring enterprise. After completion of two round restructure, our company is moving towards steadiness.

Shanghai Construction Decoration (Group) Co.,Ltd. is the core of Shanghai Construction Decoration Group, and has qualification of national first class in general contract, construction decoration and interior design. We have certification of ISO9001 and management right of international economic and technological cooperation. Also we have machinery installation, steel structure, garden structure, building curtain walls, fire public device, housing demolition these specialty qualification. Among all our architecture renovation and design are numbered in Shanghai, and we are regarded as contract of Shanghai brilliant modern architecture project.

中国极酒店 G Hotels China Proposal

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