Financial Data for Rosewood Hotel and Resorts

Particulars

Without Rosewood
Corporate Branding
(2003)

With Rosewood
Corporate Branding

Total Number of unique guests

115000.00

115000

Average daily spend

750.00

750

Number of days average guests

stays

2.00

Average gross margin per room

32%

32%

Average Number of visits per year

per guest

1.20

1.3

Average Marketing expense per

guest

$130.00

138.70

Average new guests acquistation

expense

150.00

150

Total number of repeat guest

19169.00

24919

Of which: Total number of

multiproperty stay guests

5750.00

11500

Average Guest Retantion Rate

16.67%

21.67%

576.00

624.00

Average Gross Profit Per Customer

CLTV Calculation Without Rosewood Corporate Branding

Year
Number of
days average
guests stays
Average
Number of
visits per
year per
guest
Average
daily spend
Revenue per
Customer
Gross Profit
per
Customer
Less Average
new guests
acquistation
expense
Less Average
Marketing
expense per
guest
Net Profit
Per Guest
Probability
of Being
Retained
Expected
Cash Flow
from
Customer
Discount
Factor
NPV of
Expected
Cash Flow
from
Customer
Total NPV of
CLTV

2003

2004

2005

2006

2007

2008

2009

2.0

2.0

2.0

2.0

2.0

2.0

2.0

1.2

1.2

1.2

1.2

1.2

1.2

1.2

$750.00

$795.00

$842.70

$893.26

$946.86

$1,003.67

$1,063.89

$1,800.00

$1,908.00

$2,022.48

$2,143.83

$2,272.46

$2,408.81

$2,553.33

$610.56

$647.19

$686.03

$727.19

$770.82

$817.07

6% increase per
year

$150 will not be

deducted in other
years as new guests
are not been added

($150.00)

($138.70)

($142.86)

($147.14)

($151.56)

($156.10)

($160.79)

($150.00)

$749.26

$790.05

$833.17

$878.74

$926.92

$977.85

1.00

1.00

0.17

0.03

0.00

0.00

0.00

($150.00)

$749.26

$131.70

$23.15

$4.07

$0.72

$0.13

1.000

1.080

1.166

1.260

1.360

1.469

1.587

($150.00)

$693.76

$112.91

$18.38

$2.99

$0.49

$0.08

$378.49

3% increase per
year

discount
factor(1.08)

CLTV Calculation With Rosewood Corporate Branding

Year

2003

2004

2005

2006

2007

2008

2009

Number of days average guests

stays

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Average Number of visits per

year per guest

1.2

1.3

1.3

1.3

1.3

1.3

1.3

$750.00

$795.00

$842.70

$893.26

$946.86

Average daily spend

Revenue per Customer

$1,800.00 $2,067.00 $2,191.02 $2,322.48 $2,461.83 $2,609.54 $2,766.11

Gross Profit per Customer

Less Average new guests
acquistation expense

$661.44

$701.13

$743.19

$787.79

$835.05

$885.16

($138.70)

($142.86)

($147.14)

($151.56)

($156.10)

($160.79)

($150.00)

$518.58

$553.98

$591.64

$631.68

$674.27

$719.55

1.00

1.00

0.22

0.05

0.01

0.00

0.00

($150.00)

$518.58

$120.04

$27.78

$6.43

$1.49

$0.34

1.000

0.926

0.857

0.794

0.735

0.681

0.630

($150.00)

$480.17

$102.92

$22.05

$4.72

$1.01

$0.22

($150.00)

Less Average Marketing expense

per guest
Net Profit Per Guest
Probability of Being Retained
Expected Cash Flow from
Customer
Discount Factor
NPV of Expected Cash Flow from
Customer
Total NPV of CLTV

$1,003.67 $1,063.89

$461.09

CLTV Calculation Without

Rosewood Corporate Branding

378.49

CLTV Calculation With Rosewood

Corporate Branding

461.09

Increase in CLTV per customer of

new Marketing Plan
Multiplied by # of Customers to
obtain increase in profit of
Rosewood from new brand
strategy
Divided by 32% gross margin to
obtain increase in Revenue of
Rosewood from new brand
strategy

$82.60

$9,498,542

$29,682,943