John’s calculations on suggested development site at Yeppoon
JOHN Peach says he's put a lot of thought into his suggested project, and lists some of his calculations using 100 units and restaurant plus pool complex, assuming minimum average first-year occupancy rate of 75% and good patronage (should exceed this).
1. Head-works contribution from developers and planning charges to LSC would exceed $200,000 and annual land rental (usually 5% of unimproved valuation) and rates, water, sewerage etc. At least $200,000 (dating from signing of contract to proceed) should be set aside for foreshore improvement as rates, valuation etc go up over the years.
2. This would come from a hotel annual gross income of between $5m-$7m at expected tariffs, which would also increase over the years at least in line with inflation.
3. From this income and calculated at $10 per 'room night', at least $200,000 would flow towards the pool complex running costs and, of course, all above is my calculation for just Year 1 of operation.
4. I would expect construction cost to exceed $50 million, which itself would be a tremendous boost in all respects.