CDC - Item 3B - Approval of A Proposed Operating Budget For the Glendon HotelROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO:
THE HONORABLE CHAIRMAN AND COMMISSIONERS
FROM:
JEFF STEWART, INTERIM EXECUTIVE DIRECTOR .
DATE:
APRIL 28, 2009
SUBJECT: APPROVAL OF A PROPOSED OPERATING BUDGET FOR THE
GLENDON HOTEL
SUMMARY
On July 2, 2008, the Rosemead Community Development Commission acquired the
Rosemead Inn located at 8832 Glendon Way. As the Commission may recall, the
purchase of this site is part of an overall larger redevelopment project (the Glendon Way
Project). Immediately following the purchase of the property, staff solicited proposals
from reputable company's specializing in hotel operations and received responses from
Grand Inn, Inc. and Rosemead Inn Hotel Partners, LLC.
On August 28, 2008 the Commission approved a contract with the Rosemead Inn Hotel
Partners, LLC, as the operator for the hotel. Since then, the hotel has been completely
renovated and began operating in late January 2009.
The operating agreement with the Rosemead Inn Hotel Partners requires that a
proposed operating budget be submitted to the Commission for consideration within 60
days from the execution of the agreement. This document was submitted to the City in
late March 2009. Since then, staff has been reviewing the document and is comfortable
with the monthly expenses proposed by the Operator. The operating budget and
revenue estimates are attached for the Commission's review (Attachment A).
In addition to this documentation, the Operator is also required to submit monthly
financial statements recapping all revenue activity for the previous month. Financial
statements for February and March 2009 are also attached to this report for the
Commission's use (Attachment B). The operator has informed the City that they have
recently finalized their room reservation software and will be able to provide the monthly
reports in greater detail in the coming months.
Based upon the information given to the City for February and March 2009, the hotel is
operating at approximately a 20% occupancy rate. However, the Operator is optimistic
that occupancy will improve as they continue to aggressively market the hotel.
ITEM NO.
APPROVED FOR CITY COUNCIL AGENDA:
Community Development Commission
April 28, 2009
Paqe 2 of 2
Staff Recommendation
Staff recommends that the Community Development Commission approve the
proposed operating budget submitted by the Rosemead Inn Hotel Partners, LLC.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submi ed by:
BViS ek i
Assistant City Manager
Attachment A - Proposed Operating Budget
Attachment B - Monthly Financial Statements
The Glendon Hotel
PROPOSED EXPENSE BUDGET
Operations
Utilites
Phone
Electricity
Gas
Water
Cable
Internet
Scent Air
Employees
2 Housekeeping
2 Desk/Engineer
1 Manager
1 Night Manager
1 Marketing Mgr.
Supplies
Office
Cleaning
Food/Beverage
Landscaping
Pool
Liability Insurance
Misc. I Elevator Service
Trash
Linen Contract
Website
Placement on Travel Web Sites
Marketing / Entertainment
Misc. Maintance
Other Misc. Expenses
Property Tax
City Bed Tax
Citv Minimum Due
Monthly Yearly
$
280.
00
$
3,360.
00
$
2,100.
00
$
25,200.
00
$
550.
00
$
6,600.
00
$
550.
00
$
6,600.
00
$
290.
00
$
3,480.
00
$
190.
00
$
2,280.
00
$
100.
00
$
1,200.
00
$
3,840.
00
$
46,080.
00
$
3,200.
00
$
38,400.
00
$
5,440.
00
$
65,280.
00
$
2,100.
00
$
25,200.
00
$
2,100.
00
$
25,200.
00
$
150
.00
$
1,800.
00
$
175
.00
$
2,100.
00
$
600
.00
$
7,200.
00
$
350
.00
$
4,200.
00
$
150
.00
$
1,800.
00
$
500
.00
$
6,000.
00
$
200
.00
$
2,400.
00
$
300
.00
$
3,600.
00
$
500
.00
$
6,000.
00
$
150
.00
$
1,800.
00
$
1,500
.00
$
18,000.
00
$
200
.00
$
2,400.
00
$
1,000
.00
$
12,000.
00
TBD
TBD
$
6,000.
00
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Brian Saeki
From:
Ahmed M. Seirafi [ams@cross-meridian.com]
Sent:
Thursday, April 23, 2009 2:40 PM
To:
Brian Saeki
Subject:
Snapshot - Glendon Hotel
Attachments:
Monthly Snapshot.xls
Hi Brian, attached are the numbers from the last two months......we just got the room reservation software running
correctly so the numbers are the best of my calculations. Please let me know of you have any questions.
AS
AHMED M. SEIRAFI
Cross Meridian Goup of Companies
16388 E. Colima Rd., Suite 206
Hacienda Heights, CA 91745
626.336.0100 t
626.336.0030 f
ams(across-meridia n. com
ATTACHMENT B
The Glendon Hotel
Feb-09
Total Gross Sales $ 8,032.00
Expenses $ 20,170.25
Occupancy 13%
Mar-09
Total Gross Sales $ 13,565.00
Expenses $ 19,297.00
Occupancy 20.80%
Average room rates are around $40 a night due to the fact that most of our
business has been only tour groups since we just opened up and are still
marketing to a larger market.