Politics
Saffire: You can start crying now
Do the figures, on why Federal Hotels will close this white elephant as soon as they think they have satisfied the contractual obligations on their part of the deed.
$30mill spent on 26 rooms will need a return of investment that will first pay the interest bill on the cost on building this Hotel,of which there is no known demand for 6stars accommodation in Tasmania.
At 7.5% interest on a spend of $1,150,000 per room constructed that’s $86,250 interest per annum per room. Therefore at $800 per room night (who started laughing) the first 108 rooms nights pay the interest, now let’s talk about staffing this at 3 staff per person for six star accommodation, marketing, land tax, rates, Aurora, (stop laughing it’s disrespectful), management, product to sell, insurances (these are highly litigous customers), chauffeurs and cars, toys for the customers, superannuation, stamp duties etc etc etc.
Thank god Federal Hotels have back up with their $600,000 per day income from the poor of Tasmania via gaming or the rich Russians and Chinese wouldn’t have a place to stay.
I forgot to mention, I don’t think it will achieve 100% capacity at full room rates (stop laughing; it’s Jim’s legacy) nor with the GFC will it grab the Yanks, who have stopped travelling (it’s the US dollar).
Lucky, they have Tourism Marketing on side (they own it) so we can pay to advertise it until the chickens come home to roost.
Launching the opening as we descend into winter is a masterful act of planning; Blommely did you think of that?
This is not going to be funny when the rest of the hospitality industry realizes an idiot idea like this will warp their whole marketing and industry and cause it to be further dysfunctional. (you can start crying now).