The Xanadu Theme
|Income Approach to Value: Food Income Estimate|
estimating the expenses and the amount of the cost of goods
sold in the subject proposed project, statements on existing
hotel casino facilities were analyzed and compared to the subject.
In arriving at these estimates, quite heavy consideration was
given to the type of facility as compared to the subject rather
than utilizing direct averages. An excellent quality of information
was available for analysis in arriving at the expense estimates
for the subject. Following the discussion of the estimate of the expenses are charts setting forth basic
expense ratios on competitive facilities. These ratios set forth
the expense as a percent of departmental gross with the exception
of the operating expenses which are a percent of the total gross
income. In addition, overall expense ratios as shown on the
preceding income comparison chart were utilized. In all cases,
the estimate to the subject is well within the limits of the
reader is referred to the following expense
detail chart for a visual observation of the comparison of the expenses and the relationship of the expenses
to gross income as the competing projects compare to the subject.
This set of charts neatly breaks down the itemized expenses of six Strip casino resorts. It was useful to Mr. Kent in assessing the Xanadu's potential value, but it is even more interested to those who want to learn more about how casinos operated in the early corporate era.
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Last modified Wednesday, 02-Dec-2009 11:19:52 PST