Potential  Cost Savings for Hotel Guest Rooms
                                __________________________________________

                                 Water Savings =23 gallons per person per day
                                                         = 700 gallons per month
                                                         =1000 gallons based on 1.5 persons occupancy
                                                         =500 gallons ( assume 70% occupancy and 80% statistical deviation)
Assumptions (LA water rate)
1. LA Water rate  =  $4 per 1000 gall 
2. Sewage cost   =   $4 per 1000 gall 
3. Gas (LA rate)  = $1.6 per therm     ( it takes 10 therms to heat 1000 gallons of water)

A. IMMEDIATE COST SAVINGS per month                            B. FUTURE COST SAVINGS per month
___________________________                                  ______________________________

1. WATER SAVINGS                                                             1. FAUCETS COSTS
= 500 gall x $4 + $4 ( Sewage Cost )                                     ($120 per 3 years )                       = $3
= $4

2. GAS SAVINGS                                                                  2. FAUCETS CARTRIDGES ( changed once a year)
= 500 gallons x $1.6 x 10 therms                                           = $20 + $15 ( Half Hour Engineers Time )
                                                                                               = $35 a year
= $8 x 50%
             (assuming 50% usage is hot water)                         = $3 per month                               = $3

= $4   

3. ELECTRICITY (to pump up the floors)                             3. HEATER/ BOILER ( Wear & Tear )    = $1

 = $2                                                                                  4. SEWAGE PIPES ( Wear & Tear )      = $ 1 

                                                                                          5. ENGINEERS MAINTENANCE TIME     = $5 
____________________________                               ________________________________________

TOTAL = $ 10                                                                                                                    TOTAL =  $10 

TOTAL COST SAVINGS
____________________
SAVINGS = $10 + $10 per month 
              =  $20 -- $10 per month ( 7 years easy pay with $1 to own at the end of 7 years  lease option )

              = $10 per month                            

              = $120 per year per room

OR
         = $20 - $5 ( AMORTISED OVER 10 YEARS based on  $600 Purchase Price of  1000 units or more )

           = $15 NET SAVINGS PER ROOM PER MONTH


INCREASE IN PROPERTY VALUE/ COMPANY SHARE PRICES
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For every $10 savings per room per month = $120 per year

At 6% CAP ratio,
Per   100 Rooms   =    $12,000 Savings per year will RAISE your HOTEL VALUE  BY $200,000

Per 1000 Rooms  = $120,000 Savings per year will RAISE your HOTEL VALUE by $2,000,000
                                                                         (vs Investment of $600,000 @ $600 per unit )

Per 10,000 Rooms = $12 million Savings per year will  RAISE your  HOTEL VALUE BY $20 MILLION
                                                                                                    ( vs Investment of  $6 MILLION  )  
                                                
Per 50,000 Rooms = $60 million Savings per year will RAISE your HOTEL VALUE BY $100 MILLION




Note : The above figures are estimates based on Los Angeles rates only -

           Every person, city, state and hotel may vary in usage and costs