Via Email March 26, 2012 Susan Gallick Executive Director, Faculty Association at UCLA EMAIL: ucfa@earthlink.net RE: 2nd Response for PRR 2012‐139 UCLA Luskin Center Dear Ms. Gallick: In response to your follow emails inquiry dated March 22, please find enclosed the following responsive documents: 1) 2012‐139 PKF Revised 08.09.2011.pdf 2) 2012‐139 PKF Assumption 08.09.2011.pdf Please note: UCLA used the PKF materials as a resource to assist in the creation of the Business Case Analysis but some of the operational projections were modified and the project timeline changed. The CPRA authorizes UCLA to charge for reproduction costs and/or programming services.1 As a courtesy, these fees have been waived. Any subsequent requests may be subject to copying and/or programming fees. RMIP strives to honor the spirit and legislative intent of the California Public Records Act. We believe the attached responsive records successfully fulfill the purpose of this law and your request. This completes the response to your follow up email requests. Please feel free to contact me if you have any questions or comments. Sincerely,
Aimee M. Felker Director Records Management & Information Practices (310) 794‐8741 | (310) 794‐8961 (fax) | uclapublicrecords@finance.ucla.edu | www.finance.ucla.edu AMF:amf Enclosure(s): PRR 2012‐139 Responsive Documents + Request
1
California Government Code §6253(b) Page 1 of 1
August 9, 2011 The attached projections (8.9.2011 $185 ADR) were derived via the following assumptions and methodology x x x
x
x
x
x
PKF Consulting USA completed a market study for a proposed hotel and conference center on two different sites in a report dated July 24, 2009. Following this, we ran additional analyses based on specific guidelines provided by UCLA and validated by PKF Financial comparables – we pulled two sets of financial comparables o 5 university conference centers located outside California o 5 full service hotels with meeting space located in Los Angeles and San Diego We established room revenue based on a requested subsidized ADR for University related demand. We established other revenue line items based on southern California and University comparables, incorporating the IACC conference center facilities. The analysis excludes parking. For Revenues, we incorporated the following assumptions: o We expect the property to capture approximately 2/3rds of its demand from group and 1/3 from Transient demand. We estimate a $189 Transient rate and $184 group rate for a weighted rate of $185 in 2011 dollars. This reflects a stabilized year. o We have utilized a general inflation rate of 3.5% o Year one is assumed start July 2015 and post an ADR of $221. Year two and three ADR growth are expected to be above 3.5% as the subject ramps up. Years four and beyond are estimated at 3.5% annual ADR growth. This equates to a representative year ADR of $185 in 2011 dollars. o Occupancy is projected to ramp up from 60% in year one to 65% in year two and 70% in year three. The property is estimated to stabilize at 70% and cater only to university related demand. o All other line items were projected based on the specific facilities program at the subject versus the comparable operating statements. We utilized the university conference centers to support our food and beverage and conference services revenue projections. We utilized the southern California comps to establish a baseline expense for operating a 250-room conference hotel in Los Angeles. We reviewed detailed departmental schedules for rooms and food and beverage for the southern California comparables as well as a set of 10 additional California hotels. For expenses, we incorporated the following assumptions: o Beverage represents approximately 25% of food and beverage revenue. We have adjusted food and beverage expense upwards to adjust for a 5% PKF Consulting USA | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017 TEL: 213-680-0900 | FAX: 213-623-8240| www.pkfc.com
2012-139 - 001Follow Up Response
x
management fee on beverage as it will be operated by a third party. This equates to a 1.25% upward adjustment to food and beverage expense o We incorporated the higher salaries and benefits package by imputing 16.8% in year one and 18.8 percent in years 2 and on, applied to all salaries and wages. This is presented as a separate line item. o We applied a sourcing expense of 7.6% to all expenses except FF&E Reserves. This is presented as a separate line item. o We utilized a 5% annual reserve for replacement amount throughout the projections period. o We excluded management fees, other than the beverage management fee incorporated in food and beverage expense. We also excluded insurance and real estate taxes. Other Assumptions o The property is assumed to contain 250 guestrooms, 25,000 square feet of meeting and conference space, and the associated amenities and facilities as presented in the 2009 market study.
These assumptions are subject to the attached statement of assumptions and limiting conditions.
PKF Consulting USA | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017 TEL: 213-680-0900 | FAX: 213-623-8240| www.pkfc.com
2012-139 - 002Follow Up Response
STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This report is made with the following assumptions and limiting conditions: Economic and Social Trends - The consultant assumes no responsibility for economic, physical or demographic factors which may affect or alter the opinions in this report if said economic, physical or demographic factors were not present as of the date of the letter of transmittal accompanying this report. The consultant is not obligated to predict future political, economic or social trends.
Information Furnished by Others - In preparing this report, the consultant was required to rely on information furnished by other individuals or found in previously existing records and/or documents. Unless otherwise indicated, such information is presumed to be reliable. However, no warranty, either express or implied, is given by the consultant for the accuracy of such information and the consultant assumes no responsibility for information relied upon later found to have been inaccurate. The consultant reserves the right to make such adjustments to the analyses, opinions and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available.
Hidden Conditions - The consultant assumes no responsibility for hidden or unapparent conditions of the property, subsoil, ground water or structures that render the subject property more or less valuable. No responsibility is assumed for arranging for engineering, geologic or environmental studies that may be required to discover such hidden or unapparent conditions.
Hazardous Materials
- The consultant has not been provided any information regarding the presence of any material or substance on or in any portion of the subject property or improvements thereon, which material or substance possesses or may possess toxic, hazardous and/or other harmful and/or dangerous characteristics. Unless otherwise stated in the report, the consultant did not become aware of the presence of any such material or substance during the consultant’s inspection of the subject property. However, the consultant is not qualified to investigate or test for the presence of such materials or substances. The presence of such materials or substances may adversely affect the value of the subject property. The value estimated in this report is predicated on the assumption that no such material or substance is present on or in the subject property or in such proximity thereto that it would cause a loss in value. The consultant assumes no responsibility for the presence of any such substance or material on or in the subject property, nor for any expertise or engineering knowledge required to discover the presence of such substance or material. Unless otherwise stated, this report assumes the subject property is in compliance with all federal, state and local environmental laws, regulations and rules.
Zoning and Land Use - Unless otherwise stated, the projections were formulated assuming the hotel to be in full compliance with all applicable zoning and land use regulations and restrictions.
Licenses and Permits
- Unless otherwise stated, the property is assumed to have all required licenses, permits, certificates, consents or other legislative and/or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.
Engineering Survey - No engineering survey has been made by the consultant.
Except as specifically stated, data relative to size and area of the subject property was taken from sources considered reliable and no encroachment of the subject property is considered to exist.
Subsurface Rights - No
opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated.
Maps, Plats and Exhibits - Maps, plats and exhibits included in this report are for illustration only to serve as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced or used apart from the report. PKF Consulting USA | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017 TEL: 213-680-0900 | FAX: 213-623-8240| www.pkfc.com
2012-139 - 003Follow Up Response
STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS (continued)
Legal Matters
- No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate consultants.
Right of Publication
- Possession of this report, or a copy of it, does not carry with it the right of publication. Without the written consent of the consultant, this report may not be used for any purpose by any person other than the party to whom it is addressed. In any event, this report may be used only with proper written qualification and only in its entirety for its stated purpose.
Testimony in Court
- Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal, unless such arrangements are made a reasonable time in advance of said hearing. Further, unless otherwise indicated, separate arrangements shall be made concerning compensation for the consultant's time to prepare for and attend any such hearing.
Archeological Significance
- No investigation has been made by the consultant and no information has been provided to the consultant regarding potential archeological significance of the subject property or any portion thereof. This report assumes no portion of the subject property has archeological significance.
Compliance with the American Disabilities Act - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. requirements of the ADA.
We assumed that the property will be in direct compliance with the various detailed
Definitions and Assumptions
- The definitions and assumptions upon which our analyses, opinions and conclusions are based are set forth in appropriate sections of this report and are to be part of these general assumptions as if included here in their entirety.
Dissemination of Material - Neither all nor any part of the contents of this report shall be disseminated to the general public through advertising or sales media, public relations media, news media or other public means of communication without the prior written consent and approval of the consultant(s).
Distribution and Liability to Third Parties
- The party for whom this report was prepared may distribute copies of this appraisal report only in its entirety to such third parties as may be selected by the party for whom this report was prepared; however, portions of this report shall not be given to third parties without our written consent. Liability to third parties will not be accepted.
Use in Offering Materials
- This report, including all cash flow forecasts, market surveys and related data, conclusions, exhibits and supporting documentation, may not be reproduced or references made to the report or to PKF Consulting in any sale offering, prospectus, public or private placement memorandum, proxy statement or other document ("Offering Material") in connection with a merger, liquidation or other corporate transaction unless PKF Consulting has approved in writing the text of any such reference or reproduction prior to the distribution and filing thereof.
Limits to Liability - PKF Consulting cannot be held liable in any cause of action resulting in litigation for any dollar amount which exceeds the total fees collected from this individual engagement.
Legal Expenses - Any legal expenses incurred in defending or representing ourselves concerning this assignment will be the responsibility of the client.
PKF Consulting USA | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017 TEL: 213-680-0900 | FAX: 213-623-8240| www.pkfc.com
2012-139 - 004Follow Up Response
UCLA Hotel & Conference Center Representative Year of Operation Stated in Number of Units: Number of Annual Rooms Available: Number of Rooms Occupied: Annual Occupancy: Average Daily Rate: Revenue Per Available Room: Amount Revenues Rooms Food & Beverage Conference Services Other Operated Departments Rentals and Other Income Total Revenues
2011 Dollars 250 91,250 63,875 70% $185.00 $129.50 Ratio Per Room P.O.R.
$11,817,000 6,388,000 3,385,000 319,000 160,000 22,069,000
53.5% 28.9% 15.3% 1.4% 0.7% 100.0%
$47,268 25,552 13,540 1,276 640 88,276
$185.00 100.01 52.99 4.99 2.50 345.50
2,938,000 4,791,000 1,490,000 153,000 9,372,000
24.9% 75.0% 44.0% 48.0% 42.5%
11,752 19,164 5,960 612 37,488
46.00 75.01 23.33 2.40 146.72
12,697,000
57.5%
50,788
198.78
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses
1,741,000 1,100,000 1,019,000 753,000 4,613,000
7.9% 5.0% 4.6% 3.4% 20.9%
6,964 4,400 4,076 3,012 18,452
27.26 17.22 15.95 11.79 72.22
Gross Operating Profit
8,084,000
36.6%
32,336
126.56
Additional Expense Retirement Contribution Sourcing Cost Total Fixed Expenses
978,000 1,137,000 2,115,000
4.4% 5.2% 9.6%
3,912 4,548 8,460
15.31 17.80 33.11
Net Operating Income
5,969,000
27.0%
23,876
93.45
1,103,000
5.0%
4,412
17.27
$4,866,000
22.0%
$19,464
$76.18
Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses Departmental Profit
FF&E Reserve Net Operating Income After Reserve
Source: PKF Consulting
PKF Revised 08.09.2011.xlsx : 10yr
2012-139 - 005Follow Up Response
UCLA Hotel & Conference Center Projected Operating Results Number of Units: Number of Annual Rooms Available: Number of Rooms Occupied: Annual Occupancy: Average Daily Rate: Revenue Per Available Room: Revenues Rooms Food & Beverage Conference Services Other Operated Departments Rentals and Other Income Total Revenues
2015/16 250 91,250 54,750 60.0% $221.00 $132.60 Amount Ratio
2016/17 250 91,250 59,310 65.0% $231.00 $150.15 Amount Ratio
2017/18 250 91,250 63,880 70.0% $239.00 $167.30 Amount Ratio
2018/19 250 91,250 63,880 70.0% $248.00 $173.60 Amount Ratio
2019/20 250 91,250 63,880 70.0% $256.00 $179.20 Amount Ratio
$12,100,000 7,586,000 3,446,000 325,000 163,000 23,620,000
51.2% 32.1% 14.6% 1.4% 0.7% 100.0%
$13,701,000 7,852,000 3,864,000 365,000 182,000 25,964,000
52.8% 30.2% 14.9% 1.4% 0.7% 100.0%
$15,267,000 8,127,000 4,307,000 406,000 203,000 28,310,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
$15,842,000 8,411,000 4,458,000 421,000 210,000 29,342,000
54.0% 28.7% 15.2% 1.4% 0.7% 100.0%
$16,353,000 8,706,000 4,614,000 435,000 218,000 30,326,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses
3,240,000 5,690,000 1,516,000 156,000 10,602,000
26.8% 75.0% 44.0% 48.0% 44.9%
3,483,000 5,889,000 1,700,000 175,000 11,247,000
25.4% 75.0% 44.0% 47.9% 43.3%
3,738,000 6,095,000 1,895,000 195,000 11,923,000
24.5% 75.0% 44.0% 48.0% 42.1%
3,869,000 6,308,000 1,962,000 202,000 12,341,000
24.4% 75.0% 44.0% 48.0% 42.1%
4,005,000 6,529,000 2,030,000 209,000 12,773,000
24.5% 75.0% 44.0% 48.0% 42.1%
Departmental Profit
13,018,000
55.1%
14,717,000
56.7%
16,387,000
57.9%
17,001,000
57.9%
17,553,000
57.9%
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses
2,016,000 1,437,000 1,186,000 872,000 5,511,000
8.5% 6.1% 5.0% 3.7% 23.3%
2,117,000 1,352,000 1,240,000 914,000 5,623,000
8.2% 5.2% 4.8% 3.5% 21.7%
2,220,000 1,400,000 1,283,000 958,000 5,861,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,299,000 1,448,000 1,328,000 991,000 6,066,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,378,000 1,499,000 1,374,000 1,026,000 6,277,000
7.8% 4.9% 4.5% 3.4% 20.7%
Gross Operating Profit
7,507,000
31.8%
9,094,000
35.0%
10,526,000
37.2%
10,935,000
37.3%
11,276,000
37.2%
Additional Expense Retirement Contribution Sourcing Cost Total Fixed Expenses
1,011,000 1,301,000 2,312,000
4.3% 5.5% 9.8%
1,183,000 1,372,000 2,555,000
4.6% 5.3% 9.8%
1,244,000 1,446,000 2,690,000
4.4% 5.1% 9.5%
1,287,000 1,497,000 2,784,000
4.4% 5.1% 9.5%
1,332,000 1,549,000 2,881,000
4.4% 5.1% 9.5%
Net Operating Income
5,195,000
22.0%
6,539,000
25.2%
7,836,000
27.7%
8,151,000
27.8%
8,395,000
27.7%
1,181,000
5.0%
1,298,000
5.0%
1,416,000
5.0%
1,467,000
5.0%
1,516,000
5.0%
$4,014,000
17.0%
$5,241,000
20.2%
$6,420,000
22.7%
$6,684,000
22.8%
$6,879,000
22.7%
FF&E Reserve Net Operating Income After Reserve
Source: PKF Consulting
PKF Revised 08.09.2011.xlsx : 10yr
2012-139 - 006Follow Up Response
UCLA Hotel & Conference Center Projected Operating Results Number of Units: Number of Annual Rooms Available: Number of Rooms Occupied: Annual Occupancy: Average Daily Rate: Revenue Per Available Room: Revenues Rooms Food & Beverage Conference Services Other Operated Departments Rentals and Other Income Total Revenues
2020/21 250 91,250 63,880 70.0% $265.00 $185.50 Amount Ratio
2021/22 250 91,250 63,880 70.0% $274.00 $191.80 Amount Ratio
2022/23 250 91,250 63,880 70.0% $284.00 $198.80 Amount Ratio
2023/24 250 91,250 63,880 70.0% $294.00 $205.80 Amount Ratio
2024/25 250 91,250 63,880 70.0% $304.00 $212.80 Amount Ratio
$16,928,000 9,010,000 4,776,000 451,000 225,000 31,390,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
$17,503,000 9,326,000 4,943,000 466,000 233,000 32,471,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
$18,142,000 9,652,000 5,116,000 483,000 241,000 33,634,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
$18,781,000 9,990,000 5,295,000 500,000 250,000 34,816,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
$19,420,000 10,339,000 5,480,000 517,000 259,000 36,015,000
53.9% 28.7% 15.2% 1.4% 0.7% 100.0%
Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses
4,145,000 6,758,000 2,101,000 216,000 13,220,000
24.5% 75.0% 44.0% 47.9% 42.1%
4,290,000 6,994,000 2,175,000 224,000 13,683,000
24.5% 75.0% 44.0% 48.1% 42.1%
4,440,000 7,239,000 2,251,000 232,000 14,162,000
24.5% 75.0% 44.0% 48.0% 42.1%
4,595,000 7,492,000 2,330,000 240,000 14,657,000
24.5% 75.0% 44.0% 48.0% 42.1%
4,756,000 7,755,000 2,411,000 248,000 15,170,000
24.5% 75.0% 44.0% 48.0% 42.1%
Departmental Profit
18,170,000
57.9%
18,788,000
57.9%
19,472,000
57.9%
20,159,000
57.9%
20,845,000
57.9%
2,462,000 1,552,000 1,423,000 1,062,000 6,499,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,547,000 1,606,000 1,472,000 1,099,000 6,724,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,637,000 1,662,000 1,524,000 1,137,000 6,960,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,729,000 1,720,000 1,577,000 1,177,000 7,203,000
7.8% 4.9% 4.5% 3.4% 20.7%
2,825,000 1,781,000 1,632,000 1,218,000 7,456,000
7.8% 4.9% 4.5% 3.4% 20.7%
11,671,000
37.2%
12,064,000
37.2%
12,512,000
37.2%
12,956,000
37.2%
13,389,000
37.2%
Additional Expense Retirement Contribution Sourcing Cost Total Fixed Expenses
1,379,000 1,603,000 2,982,000
4.4% 5.1% 9.5%
1,427,000 1,659,000 3,086,000
4.4% 5.1% 9.5%
1,477,000 1,718,000 3,195,000
4.4% 5.1% 9.5%
1,529,000 1,778,000 3,307,000
4.4% 5.1% 9.5%
1,583,000 1,840,000 3,423,000
4.4% 5.1% 9.5%
Net Operating Income
8,689,000
27.7%
8,978,000
27.6%
9,317,000
27.7%
9,649,000
27.7%
9,966,000
27.7%
1,570,000
5.0%
1,624,000
5.0%
1,682,000
5.0%
1,741,000
5.0%
1,801,000
5.0%
$7,119,000
22.7%
$7,354,000
22.6%
$7,635,000
22.7%
$7,908,000
22.7%
$8,165,000
22.7%
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses Gross Operating Profit
FF&E Reserve Net Operating Income After Reserve
Source: PKF Consulting
PKF Revised 08.09.2011.xlsx : 10yr
2012-139 - 007Follow Up Response
SCENARIO 2 - 250 ROOMS
2011
Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses
2015/16
2016/17
2017/18 2018/19 Expenses
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
$2,938,000 4,791,000 1,490,000 153,000 9,372,000
$3,240,000 5,690,000 1,516,000 156,000 10,602,000
$3,483,000 5,889,000 1,700,000 175,000 11,247,000
$3,738,000 6,095,000 1,895,000 195,000 11,923,000
$3,869,000 6,308,000 1,962,000 202,000 12,341,000
$4,005,000 6,529,000 2,030,000 209,000 12,773,000
$4,145,000 6,758,000 2,101,000 216,000 13,220,000
$4,290,000 6,994,000 2,175,000 224,000 13,683,000
$4,440,000 7,239,000 2,251,000 232,000 14,162,000
$4,595,000 7,492,000 2,330,000 240,000 14,657,000
$4,756,000 7,755,000 2,411,000 248,000 15,170,000
$4,923,000 8,026,000 2,496,000 257,000 15,702,000
1,741,000 1,100,000 1,019,000 753,000 4,613,000
2,016,000 1,437,000 1,186,000 872,000 5,511,000
2,117,000 1,352,000 1,240,000 914,000 5,623,000
2,220,000 1,400,000 1,283,000 958,000 5,861,000
2,299,000 1,448,000 1,328,000 991,000 6,066,000
2,378,000 1,499,000 1,374,000 1,026,000 6,277,000
2,462,000 1,552,000 1,423,000 1,062,000 6,499,000
2,547,000 1,606,000 1,472,000 1,099,000 6,724,000
2,637,000 1,662,000 1,524,000 1,137,000 6,960,000
2,729,000 1,720,000 1,577,000 1,177,000 7,203,000
2,825,000 1,781,000 1,632,000 1,218,000 7,456,000
2,924,000 1,843,000 1,690,000 1,261,000 7,718,000
FF&E Reserve
1,103,000
1,181,000
1,298,000
1,416,000
1,467,000
1,516,000
1,570,000
1,624,000
1,682,000
1,741,000
1,801,000
1,865,000
Total Expense
$15,088,000
$17,294,000
$18,168,000
$19,200,000
$19,874,000
$20,566,000
$21,289,000
$22,031,000
$22,804,000
$23,601,000
$24,427,000
$25,285,000
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses
Wage Expense Rooms Food & Beverage Conference Services Other Operated Departments Administrative & General Marketing Property Operation and Maintenance Utility Costs Reserves
% Wages 45% 46% 20% 30% 40% 30% 30% 0% 0%
2011 $1,322,100 $2,203,860 $298,000 $45,900 $696,400 $330,000 $305,700 $0 $0
2015/16 $1,458,000 $2,617,400 $303,200 $46,800 $806,400 $431,100 $355,800 $0 $0
2016/17 $1,567,350 $2,708,940 $340,000 $52,500 $846,800 $405,600 $372,000 $0 $0
2017/18 $1,682,100 $2,803,700 $379,000 $58,500 $888,000 $420,000 $384,900 $0 $0
2018/19 $1,741,050 $2,901,680 $392,400 $60,600 $919,600 $434,400 $398,400 $0 $0
2019/20 $1,802,250 $3,003,340 $406,000 $62,700 $951,200 $449,700 $412,200 $0 $0
2020/21 $1,865,250 $3,108,680 $420,200 $64,800 $984,800 $465,600 $426,900 $0 $0
2021/22 $1,930,500 $3,217,240 $435,000 $67,200 $1,018,800 $481,800 $441,600 $0 $0
2022/23 $1,998,000 $3,329,940 $450,200 $69,600 $1,054,800 $498,600 $457,200 $0 $0
2023/24 $2,067,750 $3,446,320 $466,000 $72,000 $1,091,600 $516,000 $473,100 $0 $0
2024/25 $2,140,200 $3,567,300 $482,200 $74,400 $1,130,000 $534,300 $489,600 $0 $0
2025/26 $2,215,350 $3,691,960 $499,200 $77,100 $1,169,600 $552,900 $507,000 $0 $0
Total Wage Expense Retirement Contribution % of Total Revenue
16.8%/18.8%
$5,201,960 $977,968 4.4%
$6,018,700 $1,011,142 4.3%
$6,293,190 $1,183,120 4.6%
$6,616,200 $1,243,846 4.4%
$6,848,130 $1,287,448 4.4%
$7,087,390 $1,332,429 4.4%
$7,336,230 $1,379,211 4.4%
$7,592,140 $1,427,322 4.4%
$7,858,340 $1,477,368 4.4%
$8,132,770 $1,528,961 4.4%
$8,418,000 $1,582,584 4.4%
$8,713,110 $1,638,065 4.4%
$1,137,186 5.2%
$1,301,435 5.5%
$1,372,037 5.3%
$1,446,116 5.1%
$1,496,778 5.1%
$1,549,065 5.1%
$1,603,464 5.1%
$1,659,408 5.1%
$1,717,552 5.1%
$1,777,561 5.1%
$1,839,852 5.1%
$1,904,413 5.1%
Sourcing Expense (applied total expense-r % of Total Revenue
7.6%
PKF Revised 08.09.2011.xlsx : Backup
2012-139 - 008Follow Up Response
UNIVERSITY COMPS
Table 6-1
UCLA Hotel & Conference Center Operating Results of Comparable Conference Centers Conference Center A Ratio Revenues Rooms Food & Beverage Conference Services Other Operated Departments Rentals and Other Income Total Revenues Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses Departmental Profit Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Other Undistributed Expenses Total Undistributed Operating Expenses Gross Operating Profit Management Fee Fixed Expenses Property Taxes Insurance Total Fixed Expenses Net Operating Income FF&E Reserve Net Operating Income After Reserve
Per Room
Conference Center B
P.O.R.
Ratio
Per Room
Conference Center C
P.O.R.
Ratio
Per Room
P.O.R.
48.10% 30.20% 15.90% 5.90% 0.00%
$39,701 24,892 13,087 4,850 0
$149.68 93.85 49.34 18.29 0
52.70% 26.60% 16.40% 3.00% 1.20%
$28,586 14,435 8,914 1,645 659
$131.18 66.24 40.9 7.55 3.03
43.20% 32.90% 19.10% 4.80% 0.00%
$29,399 22,393 13,000 3,264 0
$162.64 123.87 71.92 18.05 0
100.00%
82,530
311.16
100.00%
54,239
248.91
100.00%
68,056
376.48
16.60% 62.90% 64.30% 48.10%
6,606 15,662 8,418 2,332
24.9 59.05 31.74 8.79
31.80% 85.50% 51.40% 63.90%
9,099 12,340 4,579 1,052
41.76 56.63 21.01 4.83
19.20% 71.60% 23.00% 8.70%
5,653 16,043 2,994 284
31.27 88.75 16.56 1.57
40.00%
33,018
124.48
49.90%
27,070
124.23
36.70%
24,974
138.15
60.00%
49,512
186.67
50.10%
27,169
124.68
63.30%
43,082
238.32
7.40% 4.00% 3.60% 3.40% 0.00%
6,084 3,335 2,960 2,815 0
22.94 12.58 11.16 10.61 0
11.40% 6.80% 5.20% 5.40% 0.00%
6,189 3,687 2,795 2,920 0
28.4 16.92 12.83 13.4 0
7.60% 7.20% 5.30% 3.50% 0.00%
5,202 4,882 3,578 2,390 0
28.78 27.01 19.79 13.22 0
18.40%
15,194
57.28
28.70%
15,591
71.55
23.60%
16,052
88.8
41.60%
34,318
129.38
21.30%
11,578
53.13
39.70%
27,030
149.53
2.00%
1,651
6.22
3.60%
1,959
8.99
4.30%
2,909
16.09
3.60% 0.70%
2,938 572
11.08 2.16
0.00% 0.00%
0 0
0 0
0.10% 1.30%
74 900
0.41 4.98
4.30%
3,510
13.23
0.00%
0
0
1.40%
974
5.39
35.30%
29,157
109.93
17.70%
9,619
44.14
34.00%
23,147
128.05
4.00%
3,301
12.45
0.00%
0
0
1.60%
1,122
6.21
31.30%
$25,856
$97.48
17.70%
$9,619
$44.14
32.40%
$22,025
$121.84
Source: PKF Consulting
PKF Revised 08.09.2011.xlsx : University Conference comps
2012-139 - 009Follow Up Response
Table 6-2
UNIVERSITY COMPS UCLA Hotel & Conference Center Operating Results of Comparable Conference Centers Conference Center D Ratio Revenues Rooms Food & Beverage Conference Services Other Operated Departments Rentals and Other Income Total Revenues Departmental Expenses Rooms Food & Beverage Conference Services Other Operated Departments Total Departmental Expenses Departmental Profit Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Other Undistributed Expenses Total Undistributed Operating Expenses Gross Operating Profit Management Fee Fixed Expenses Property Taxes Insurance Total Fixed Expenses Net Operating Income FF&E Reserve Net Operating Income After Reserve
Per Room
Conference Center E
P.O.R.
Ratio
Per Room
Weighted Average
P.O.R.
Ratio
Per Room
1
P.O.R.
50.10% 33.40% 12.20% 4.30% 0.00%
$35,412 23,634 8,629 3,018 0
$140.67 93.88 34.28 11.99 0
47.20% 31.00% 21.10% 0.70% 0.00%
$26,794 17,619 11,983 412 0
$150.95 99.26 67.51 2.32 0
48.20% 30.70% 15.90% 4.20% 1.00%
$32,736 20,869 10,796 2,863 659
$144.79 92.3 47.75 12.66 2.91
100.00%
70,693
280.81
100.00%
56,808
320.05
100.00%
67,923
300.41
20.60% 63.20% 33.40% 43.70%
7,282 14,928 2,879 1,319
28.93 59.3 11.44 5.24
22.80% 75.60% 48.70% 164.70%
6,113 13,317 5,831 678
34.44 75.03 32.85 3.82
21.90% 69.50% 44.50% 42.60%
7,154 14,506 4,806 1,221
31.64 64.15 21.26 5.4
37.40%
26,408
104.9
45.70%
25,939
146.14
41.10%
27,687
122.45
62.60%
44,285
175.91
54.30%
30,869
173.91
59.20%
40,236
177,96
6.00% 3.80% 3.70% 3.10% 0.00%
4,269 2,686 2,642 2,181 0
16.96 10.67 10.5 8.66 0
6.80% 4.30% 5.60% 2.90% 0.00%
3,856 2,428 3,182 1,638 0
21.72 13.68 17.93 9.23 0
7.70% 5.10% 4.40% 3.60% 0.00%
5,245 3,436 2,972 2,476 0
23.2 15.2 13.14 10.95 0
16.70%
11,778
46.78
19.50%
11,104
62.56
20.80%
14,129
62.49
46.00%
32,507
129.12
34.80%
19,764
111.35
38.40%
26,107
115.47
2.30%
1,591
6.32
4.00%
2,272
12.8
2.90%
2,000
8.85
2.70% 0.00%
1,923 0
7.64 0
0.00% 0.90%
0 509
0 2.87
2.40% 1.00%
1,633 677
7.22 2.99
2.70%
1,923
7.64
0.90%
509
2.87
3.40%
2,310
10.22
41.00%
28,993
115.17
29.90%
16,983
95.68
32.10%
21,797
96.4
0.00%
0
0
4.90%
2,785
15.69
3.50%
2,406
10.64
41.00%
$28,993
$115.17
25.00%
$14,199
$79.99
28.50%
$19,391
$85,76
Source: PKF Consulting
PKF Revised 08.09.2011.xlsx : University Conference comps
2012-139 - 010Follow Up Response
SOCAL COMPS
UCLA Hotel & Conference Center SoCal Hotels
Ratio
Per Room
P.O.R.
Ratio
Per Room
P.O.R.
Ratio
Per Room
P.O.R.
75.7% 16.3% 7.6% 0.4% 100.0%
$41,477 8,939 4,146 229 54,792
$151.94 32.75 15.19 0.84 200.71
65.2% 29.0% 5.3% 0.5% 100.0%
$49,154 21,841 4,016 348 75,359
$185.14 82.27 15.13 1.31 283.85
66.7% 28.9% 0.8% 3.6% 100.0%
$51,742 22,416 590 2,803 77,552
$178.47 77.32 2.03 9.67 267.49
Departmental Expenses Rooms Food & Beverage Other Operated Departments Total Departmental Expenses
30.2% 87.7% 29.7% 39.4%
12,516 7,843 1,231 21,590
45.85 28.73 4.51 79.09
24.1% 86.5% 89.3% 45.6%
11,846 18,899 3,586 34,330
44.62 71.18 13.51 129.31
19.6% 65.4% 73.8% 32.5%
10,135 14,662 435 25,232
34.96 50.57 1.50 87.03
Departmental Profit
60.6%
33,201
121.62
54.4%
41,029
154.54
67.5%
52,319
180.46
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses
11.5% 7.6% 3.0% 2.6% 24.6%
6,315 4,149 1,625 1,399 13,489
23.13 15.20 5.95 5.13 49.41
8.8% 7.2% 5.5% 3.9% 25.4%
6,606 5,429 4,142 2,968 19,144
24.88 20.45 15.60 11.18 72.11
7.7% 7.0% 3.6% 3.3% 21.6%
5,969 5,458 2,795 2,527 16,748
20.59 18.83 9.64 8.71 57.77
Gross Operating Profit
36.0%
19,713
72.21
29.0%
21,885
82.43
45.9%
35,571
122.69
4.0%
2,192
8.03
4.0%
3,014
11.35
4.0%
3,102
10.70
32.0%
$17,521
$64.18
25.0%
$18,871
$71.08
41.9%
$32,469
$111.99
Revenues Rooms Food & Beverage Other Operated Departments Rentals and Other Income Total Revenues
FF&E Reserve Net Operating Income After Reserve
PKF Revised 08.09.2011.xlsx : SoCal Hotel Comps
2012-139 - 011Follow Up Response
SOCAL COMPS
UCLA Hotel & Conference Center Historical Operating Results of Selected Hotels
Weighted Average Ratio Per Room P.O.R.
Ratio
Per Room
P.O.R.
Ratio
Per Room
P.O.R.
70.1% 24.3% 5.4% 0.2% 100.0%
$49,615 17,179 3,850 158 70,802
$186.53 64.58 14.47 0.59 266.18
57.6% 35.5% 5.6% 1.3% 100.0%
$43,148 26,546 4,201 984 74,879
$179.21 110.26 17.45 4.09 311.01
65.5% 28.5% 4.7% 1.3% 100.0%
$47,132 20,465 3,395 927 71,920
$177.70 77.16 12.80 3.50 271.16
Departmental Expenses Rooms Food & Beverage Other Operated Departments Total Departmental Expenses
22.0% 67.9% 57.1% 35.0%
10,923 11,663 2,200 24,786
41.07 43.85 8.27 93.18
34.4% 94.8% 57.7% 56.7%
14,836 25,171 2,425 42,432
61.62 104.55 10.07 176.24
25.9% 82.2% 62.5% 43.3%
12,199 16,823 2,121 31,143
45.99 63.43 8.00 117.42
Departmental Profit
65.0%
46,016
172.99
43.3%
32,447
134.77
56.7%
40,777
153.74
Undistributed Expenses Administrative & General Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses
8.7% 14.8% 4.0% 3.2% 30.7%
6,187 10,489 2,830 2,235 21,741
23.26 39.43 10.64 8.40 81.73
9.0% 10.8% 6.7% 3.0% 29.4%
6,711 8,056 5,006 2,250 22,022
27.87 33.46 20.79 9.35 91.47
8.9% 9.4% 4.9% 3.3% 26.4%
6,397 6,748 3,513 2,356 19,013
24.12 25.44 13.24 8.88 71.68
Gross Operating Profit
34.3%
24,275
91.26
13.9%
10,425
43.30
30.3%
21,764
82.06
4.0%
2,832
10.65
4.0%
2,995
12.44
4.0%
2,877
10.85
30.3%
$21,443
$80.61
9.9%
$7,430
$30.86
26.3%
$18,887
$71.21
Revenues Rooms Food & Beverage Other Operated Departments Rentals and Other Income Total Revenues
FF&E Reserve Net Operating Income After Reserve
PKF Revised 08.09.2011.xlsx : SoCal Hotel Comps
2012-139 - 012Follow Up Response
From: UCLAFA [mailto:ucfa@earthlink.net] Sent: Thursday, March 22, 2012 7:48 AM To: Felker, Aimee Cc: Read, Dwight Subject: Re: PRR 2012-139 Business Plan for proposed UCLA Luskin Center
Dear Ms Felker Thanks for sending me some documents related to the proposed UCLA Hotel/Conference Center. We already have one of the items on the FA blog. What is missing is the consultant's report that is supposed to be the backup to the revised plan. (Not the old PKF report for the old plan.) The UCLA administration claimed to have such a report. Can you please email me the consultant’s report asap? Also, if there is a user id and password, please include that information as well. Thank you, Susan Susan Gallick Executive Director Faculty Association at UCLA ucfa@earthlink.net 818 341-8664