Methodology & assumptions (all derived from operating Olive properties, last 36 months): Occupancy converges toward an 81% stabilised plateau (50% of the gap closed each year). ARR grows +18% in Year 2 and +4% in Year 3 (observed same-property ramp). Operating expense is built across six cost heads, each modelled as a fixed component (per room) plus a variable component (per occupied room-night) from actual P&L; commissions tracked at 13% of revenue; unit costs inflated 6% per year. Management fee = 5% base + 15% incentive on (GOP − base), shown inclusive of 18% GST. The FF&E reserve (0.65% of revenue) is retained by the owner and forms part of Net Owner's Return. All figures inclusive of GST. Indicative projection for evaluation; not a guarantee of performance.
Olive Hospitality · Confidential.