A hotel economic feasibility study : Monsignor O'Brien Highway, Cambridge, Massachusetts
Name
226326913-MIT.pdf
Description
Full printable version
Size
13.97 MB
Format
Adobe PDF
Checksum (MD5)
bebecf46a9aec7414c79c77ac699fac8
Author(s)
Rogers, Mark P. (Mark Paul)
Advisor(s)
Brian Anthony Ciochetti.
Date Issued
2007
Publisher
Massachusetts Institute of Technology
Abstract
A hotel economic feasibility study was carried out for an assemblage of four (4) parcels located on Monsignor O'Brien Highway in Cambridge, Massachusetts. The primary objective of this economic feasibility study was to assess the supply and demand factors affecting the market for transient accommodations in the East Cambridge area for the purpose of recommending the size and type of hotel which is most logical for this assembled site. Once these perimeters were determined, an economic feasibility study was performed to evaluate the anticipated economic benefits and probable total project cost. The financial analysis undertaken was utilized to determine whether the return on investment makes the proposed project economically feasible. It was determined in the initial stages of the study that the assemblage of parcels was flawed. After reconfiguring the assembled site, further analysis continued. In the end, the study validated the economic feasibility of a 250 key lifestyle brand type hotel. The hotel is conceived to be in operation as of January 1, 2011. The planning and entitlement process is expected to last approximately sixteen months. Construction is scheduled to take an additional two years time. The development will be have both mortgage and equity components. The internal rate of return based on the economic valuation of the property value of $68,431,191 is 8.37%. The mortgage component of $55,622,501 represents an IRR of 7%. The equity component is valued at $12,808,690 which represents an IRR of 12.4%
Description
Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2007.
"September 2007."
Includes bibliographical references (leaf 86).
Subjects
Urban Studies and Planning.
MIT Department
Massachusetts Institute of Technology. Department of Urban Studies and Planning
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