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estimating the food and beverage income to the subject, an analysis
of income and expense ratios for existing facilities on the “Strip”
was made. In addition, published
statistics by the Nevada Gaming Control Board were analyzed. The
following income comparison chart sets “,forth the percentage
of revenue received from casino operations, ,food and beverage,
hotel department, and other income and sets
forth the ratio of expenses
to departmental gross income experienced by these. Again, the
existing facilities are identified by letter only and cannot be
identified as to the exact facilities since statements were provided
in confidence. Analysis of these statements indicate that the
total food and beverage income at 25% of the total gross income
would be substantially in line with the existing facilities.
In addition, and with consideration given to the design of the
proposed subject improvements, the beverage income is estimated
at 11% of the gross and the food income at 14%. This is in line
with existing facilities, is in line with trends as reported previously
in this report, and is in line on an overall ratio basis.
In
arriving at these estimates, consideration was given to the
heavy beverage facilities located in the subject proposed project
as compared to the food type facilities.
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