Exam 2 Flashcards
What is an occupancy rate?
% of rooms sold
ADR
Average Daily Rate
(the total room revenues)/(rooms sold)
not quoted rates
RevPAR
Room revenue per available room,
- the total guest room revenue divided by the total # of available rooms
Percentage Rent?
A lease has natural sales breakpoint and when sales meet that number, the tenant pays an additional rent based on the percentage of sales above the threshold.
What is a “Go Dark” lease provision?
When retailers seek provisions allowing them to go dark in certain circumstances like underperformance.
What are implications for GOING DARK?
It can create openings for money lost, or for a company who may have known they were underperforming to get out of their lease. E.g. Co tenancy.
What is a well-planned outparcel?
One that has correct access , proper parking and correctly complements the overall development.
What is a poorly planned outparcel?
Signage may not be restricted and can obstruct site lines for in-line tents, and can poach parking from other retailers and discourage shoppers -especially with ones that have too many restaurant outparcel.
What lease provision gives a tenant the sole right to sell certain products?
Exclusivity.
Exclusivity Issues
Some brands want to expand beyond what they are known to sell for because they are aware of what their brand can mean for a development.
Adaptive use project benefits?
Social Benefits (more money goes back into the communities
Adaptive use project benefits?
Social Benefits (more money goes back into the communities)
- Historic buildings have higher quality
- Opportunity for various uses like living, working, shopping, etc.
Goals of the NPS and State Historic Preservation Office in terms of re-development ?
Their goal is to not only restore a building for museum use but to put it back into use to benefit the community.
What determines whether building costs are eligible for HTC?
- Rehab costs that are capital in nature and depreciable as property.
- The department of the interior must certify the rehab is consistent with the historical character of the building and district.
Roles of the NPS and SHPO (State Historic Preservation Office) ?
They maintain complete records of the state’s historic buildings and register of historic places
-Make certification recommendation to the NPS
What are some SC Tax incentives?
- SC Textile Revitalization act
- Abandoned Building Tax Credit
- Abatement Tax Credit
What are some Federal Historic Tax Credits?
LIHTC- Preservation tax credits 25% of projects,
- Local Property Tax Abatement incentives- 24%
Rehabilitation Tax Credit equal to 20% of the cost to rehab historic buildings.
What is a tax credit?
Lowers the amount of taxes owed as compared to the deduction that lowers the amount of income in taxation.
What is mixed-use development?
3 or more significant, revenue producing uses
- Significant physical and function integration of project components including uninterrupted pedestrian connections
- Development in conformance with a coherent plan
Without well planned pedestrian circulation and orientation, a mixed use project cannot achieve the desired________?
Synergy and Sense of Place
What is needed to overcome the challenges of developing a mixed-use development?
- Higher political patience, skillful and meaningful urban design within the specific community context of the development
- Cohesive management within the development and the city
A mixed use town center/urban village
Avalon (Alpharetta, GA)
Mixed-Use Towers (example)
Willis/Sears Tower (Chicago, IL)
Integrated Multi-Tower Structures
Greenville ONE (Greenville, SC)
What type of transit created development-oriented transit and why?
The Street car, because the streetcar line and adjacent neighborhoods were often developed by the same owner.
How to draw the Paradigm for a TOD
1) At the front is core commercial
2) followed by the center which is the transit stop
3) outside of that is the public and open space
4) just beyond that is residential followed by the secondary area
-As a rule of thumb, the transit stop should not be any more than 2000 feet from the residential area.
What is Alonzo’s Location Theory
The idea that households act as if the rent and transportation budget are combined
-With lower transportation costs people are willing to pay higher prices for rent.
What is the typical household budget for transportation today?
Housing @ 32%
Transportation @25% and Other Expenses @43%
What 5 key components for successful TOD’s?
- Safe and Walkable Streets
- Local-Serving Retail and Economic Development
- Access to Services and Institutions
- High Quality design of buildings and spaces
- Mix of housing choices across ages, finances, etc.
What are important design features within a TOD?
- Buildings that are outwardly oriented toward the street rather than inwardly oriented toward parking
- Integration of transit with residential and retail uses
- Sufficient density to support local businesses and community amenities
How did the transit villages of the early 19th century inspire TOD of today?
Created urban sprawl and decentralization of the street car?
- People are more involved with the response to climate change, regional connectivity and reduction of sprawl
- With increased mobility, retail and housing choices.
What is a Luxury Hotel?
Personal Concierge, Very High Class (4 szns/ Ritz)
Full Service Hotel?
Valet, Business Center, Meeting and Banquet svcs, Embassy, Westin, Radisson
Limited Service Hotel?
Comfort Inn, SpringHill Suites,
-Usually will have a small fitness center, complimentary breakfast and free wifi
Convention Hotel?
400 + rooms, meeting/banquet facilities, Concierge Floor, Hilton Chicago + Hyatt Regency Chicago, Ballantyne Charlotte
All Suite/Extended Stay
Kitchenettes or full size kitchens, complimentary breakfast, some leisure travelers with families
-Candlewood Suite, TownePlace Suites
Boutique Hotel
Small and Intimate, Upscale and Trendy, usually have a certain unique design factor ( the W Hotel, etc)
Resorts
Similar to full service hotel but in scenic area, leisure travelers with a bevy of services and activities (Wyndham Resorts, Sandals)
What are other sources of revenue for hotels?
Rentals, Conferences, Meal Packages, etc
Business Breakdown for Commercial Travelers
1-2 Nights usually.
Corporate Groups/Business
Contract Demand- Like Construction
Extended Stays
Tourist/Leisure Travel Demographic Breakdown
Group Travel- Weddings/Family Reunions
-Weekend Getaways
What is the percentage of the Business Travel Demand Segment?
45%
Percentage of Leisure Travel Demand Segment?
55%
What are Hotel Demand Segments
Purpose of trip Seasonality Length of Stay Price Sensitivity Amenities # of Rooms Needed
What are desired Hotel Occupancy Levels?
For Rooms it is 70%
For Food and Bev it is 15%
For Experiences and Amenities it is 10-15%
