I am part of a group project together with other 6 students. We are all enrolled in the master’s degree course of Tourism Economics and Management at the University of Bologna, Italy. As final exam of the Tourism Management’s course we are required to write a Business Plan on a hypothetical new hostel in New York City. The location we have chosen after our analysis is Williamsburg, Brooklyn. We have already worked out the main parts of the Business Plan (aka mission statement, company analysis, demand analysis, competitive analysis, and marketing mix). However, we are facing some troubles with the Financial Analysis. We were wondering if some expert in the field could help us regarding the below:
- Occupancy rate: we have found that on average the occupancy rate in NYC is around 80%. According to some articles it now dropped at around 20% due to Covid-19. However, we have to forecast it for a time frame of 10 year. Do you have any suggestion on how to proceed?
- ADR: how should we calculate the average bed rate?
- Costs per bed. How should we proceed to calculate them? (We know heating/air cond costs on average per room per month and payroll costs)
- Depreciation: do you know which percentage of depreciation we should consider every year for the building and assets in general?
Thank you in advance!! Any help would mean a lot to us!