| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Residents launch LBH Watch | |
| Posted by: | Nick Marbrow | |
| Date/Time: | 11/09/10 08:24:00 |
| Adam, You seem to have overlooked the 47 houses at £25,000 per unit contributing £1,175,000 of the £2,400,000. You have managed to double the suggested contribution per hotel room. Is this why so many public sector projects cost twice as much, and take twice as long to deliver, as in the original plan? Thank goodness you are not running a commercial enterprise! To put your figures into perspective, a contribution of £350,000 for over 600 bedrooms, assuming amortisation over 5 years and an average of 200 occupation nights per room per year, means a contribution of about 50 pence per occupied room night for five years. Assuming an average room night charge of about £100, an additional 50 pence would not seem to be much of a challenge to the business plan. You are basically expecting the public to subsidise the profit margins of the developers. I don’t think the public sector is leveraging our assets effectively. |