The Radiance Hotel Project. Founder is 30-year professional Commercial Builder and former
Resort hotel structures are often restricted in premium room pricing formats due to proximity to .desired views and or the building’s visibility constraints. The rear facing rooms are not as in demand as ‘waterfront’ or ‘mountain view’. The given property will usually have 50% of their resort rooms pricing capacity affected.
The Radiance Hotel Project design concept and configuration eliminates the “view” limitations,
by literally placing the structure on a turntable and bringing each room to the premium view desired, 24 hours a day. This results in the hotel property being able to command a higher standard regular room rate for all rooms (ADR) for all available dates, higher occupancy rates (OCC Rate), and a higher revenue model per available room (RevPAR), due to the consistent higher room rate profile regardless of Occupancy Rate.
With an 11-year background in the Hospitality Sector coupled with a 25+ year building career
spanning multiple commercial, industrial and institutional projects, both in the United States and Canada, Gary has deep, hands on experience, strategic insights and unique ideas on effectively tackling this original concept and bringing it to life. This has been a personal long-contemplated ingenious project first conceived and designed over 20 years ago.
Current Income Statement Forecasting based on an extremely conservative projected Proforma of 300 Rooms, shows that at 43.88% Occupancy, we would see Gross Departmental Revenues at $26M, Gross Direct and G&A Expenses at $15M, Gross Margins at $11M, and Net Operating Income at $8M.
The Business model begins with a standardized hotel format of selling rooms at the best rate over the longest period. The Radiance twist is that not only are the room offerings provided at twice the comparable room rate (comparable mid-luxury range), all base rack-rooms are able to command the same base rate ( and even higher, due to some premium escalation pricing structures for higher floors). This higher Room Revenue generator model doesn’t required twice the direct costs to achieve, thus resulting in higher across the board gross margins for the operating property. The targeted higher end market clientele demographic will also spend more on services within the hotel. Food and Beverage, Entertainment, Recreation, Spa, and Gifts. Due to the unique rotating structure and the variables available in the design stage, the first level rotating ring is designed in the configuration as a rotating open balcony mall format and will feature 16 – 20 high-end tenant mall lease spaces that will be compatible with the site specific tourist consumer market demographic in which it is built, and will be marketed to and anchored by well-known Brand stores.
The Market Sector that will appeal to The Radiance product configuration, will be high value tourism markets with established exotic vistas, well-known natural wonder destinations, and strong historical year over year tourist traffic generators. Some specific City Centers may qualify.
A full active Project Development Team will be cemented in due course. Currently The Founder and CEO Mr. Gary Flynn has multiple discussion on-going with Mr. Tiago Caldas. President of Asterisk Engineering, Kingston Ontario, Canada; Ms Marie Lonergan, (retired Marketing and Ad Exec, Madison Ave, NY), President of The Lonergan Group; Mr. Neil Dabney, (retired Wall Street investment banking specialist), Financial Structuring Consultant; Mr. Neilson Dean, Commercial Real Estate Development and Financing Specialist, Calgary Alberta, Canada. A large contingent of personally known commercial and hotel building specialists, designers, and high end luxury operators will be invited to the table as we develop the concept and reach certain milestones.
The Soft-Cost Design stage budget is $2M. This level of funding would provide the Founder with a 10% overhead and soft-operating budget, and the balance $1.8M provided for engineering design, computer graphics modeling, 3D Modeling, prototyping of key building components, site testing, wind tunnel testing, product and equipment selection criterion, specs, and interoperability analysis in the field. Further work in automation design components for linking mechanical systems, architectural design options site-specific), architectural working drawings at 90%, interior design concepts, samples, and associated drawings also completed at 90% coupled with FF&E product development selections. A full service written operating syllabus format for a luxury product hotel along with an initial short listing of potential Sr. Staffing interviews. This would carry over into an Operations budget. Patent work, Legal work, Formal CPA projections, and initial Marketing tools will round out the list. These scopes of work will take 14-15 months to complete. (If a specific site package is determined early and full construction financing put into place, with principal Partner/Investors, there might be some overlap to a building site being established, feasibility study completed and Site Agreements being initiated).