Unit Model Facility in a typical site has been analyzed. This model facility describes what can be made with a budget of one million dollars as a reference point. Most facilities size will be many times more then this model facility reducing the construction, operation, and management cost. Development cost and operational and management cost has been estimated.

The development cost will vary between $45,000 to $65,000 per room depending on site, size, amenities, and target customer base to be served. The facility will add a value 70% to 100% immediately upon completion. The completion time is estimated between 14 to 18 months. Operation and management cost will be around 50% compared to gross room revenue. The business will make between 20 to 30% of total investment on a year-to-year basis.


The capital need from the sponsors for the development, operation, and management of a typical facility will be between $1.5 Million to $2M. Fund breakdown may be as follows: Zeegarden 50% contribution; Project Partner: 50%contribution. The total investment will be considered as a loan to the project with market rated “cost of fund”. This cost of fund will be seperated and paid before profit (loss) is declared by the accountant. This investment model will be repeated in each independent projects.

Break-even analysis:

The business achieves its break-even point with a gross sales volume equal to one forth of the total investment cost. This business will achieve break-even in the first year of operation generating operational surplus by the end of the year. Revenue is expected to increase on the second and third year by 7 to 10 percent per year.

Earning Plan:

The operational summary table shows the expected results of operation for the first five years of the business. Revenue estimates are drawn from industry standard for a similar new facility. Estimated growth rate 5% to 10% per year. Average Earning per year equals to 20% of investment.