Proposal - The Grand Hotel (& Corporation)
I have a dream.
A dream of a building matching even the Royal Palace in room area, though not in its royalness.
The Grand Hotel would be a massive 4-story building in lot A2, in similar style as the Marquess' Palace, but 3x3 instead of 2x2. We should take advantage of the original zoning principle of building "commercial palaces" to these prized lots, as long as they are available.
Ground floor
2 taverns/classy shops with direct access from the central square
6 shops with direct access from outside
5 m wide open-air staircase leading to the 1st floor and main entrance
First floor
Lobby with greatest length 19m, width 11m, height 14m(!)
The most high-end restaurant in town, with chef from France, the land of Cognac far away
Multi-purpose Hall of 62+52 sqm "conference"
Grander staircase than anything seen so far in the city (19 sqm of space used to ascend 5 m)
Second-third floors
The Grand Hotel, featuring:
1 ducal suite of 126 sqm with 2 bedrooms and bathrooms
3 suites of 48-56 sqm, with or without baths
7 rooms of 18-33 sqm
4 rooms of 8 sqm
All rooms' doors open to the inner arcade
All facilities and others well planned
Army sectionThis building takes responsibility of defending the east gate next to it
Barracks for 20 soldiers, do double duty as guards and janitors in the Hotel
Wall strengthened with 20 inside-wall battle stations in 4 floors, with arrowslits facing east
790 sqm flat roof at e=19 m usable for ballistas and whatever defence is needed
Fully separate entrances so as to not disturb the hotel guests but access to hotel area via hidden passages
Luxury level
Luxury level will be 130%, among the most magnificent in the city.
- Monero House 80%
- Earl Riccardo's residence 100%
------------> The Grand Hotel 130% <----------
- Town Hall 140%
- The Marquess of New Liberty's Palace 150%
- Royal Palace 200%.
Overall comparisonThe building has bigger footprint than anything except the Royal Palace.
It has a larger room area than any other building.
The roof of 790 sqm at 19 m is the largest paved space after the central square.
The Ducal Suite of 126 sqm compares in size and opulence with the entrance floor of the Royal Palace.
Only the 3 buildings above are more luxurious.
The lobby has the highest room height in the central oculus, of all buildings in the town, beating the Cathedral with 2 m, and its length and width are also commendable.
The restaurant is the best in town, beating those of the Town Hall and the Monero House, and the private catering of the King and the Marquess.
The 20 soldiers in single command are also the most potent force in town (King has 15 and Bishop 10 soldiers).
How to proceed?
Since the Town Hall IPO was a success, and also because that company was clearly founded on the principle of conservative housekeeping and 14-yearly dividends, we establish a new company with a more aggressive and growth/profit-oriented approach.
The Grand Hotel Corporation is about to start with a share capital of 500 million, which is divided to 500 shares, as was the case with the Town Hall. These can be subscribed without limit for the next 48 hours, and in case of oversubscription, the amounts will be cut in a fair way.
Since the building of 1,656 sqm takes almost a billion to construct, we
loan the rest of the money to gain leverage. To determine the creditworthiness of this most ancient institution that has the largest building in the town as guarantee (in case of default, the creditors replace the shareholders as usual) is an intriguing task, and we therefore make a loan auction as follows:
- We are seeking a 50-year (25-day) bullet loan of 500 million. The loan consists of 50 bonds, 10 million each.
- Reserve bid is 1.00% APR (this is the overdraft facility interest rate and the King feels OK to offer it for all 50 bonds)
- Minimum "raise" (lowering) is 0.05% and 0.05% increments
- Indicate how many you want at that price
- Everyone gets the same rate, which is the rate of the highest winning bid
Here is the table for the payback if you decide to offer a certain rate:
1.00%: 10 million => 15 million
0.95%: 10 million => 14.75 million ("minimum" = maximum bid)
0.90%: 10 million => 14.5 million
...
0.80%: 10 million => 14 million
0.60%: 10 million => 13 million
0.40%: 10 million => 12 million
0.20%: 10 million => 11 million
0.05%: 10 million => 10.25 million.
We want to be realistic. The calculations show that the return on capital invested is currently 1.15% per year. Since half of it is loan, the shares will get 2.3%-
loan_rate and the loan will get
loan_rate. The volatility is totally on the shareholders, but the creditors should be covered since it is unlikely that the building's value as a cash flow instrument would go to
less than half of the building cost, understanding that it is in a prime location and the land was received for free.
Now you can tailor your risk percentage to exactly what you want, by buying both the shares and the loan in varying proportions.If 48 real-hours pass so that the total participation to the IPO and the loan does not exceed 500 million, the offer will be cancelled so that the lot remains empty and no money is taken from anyone.
The town does not remain as a participant - if the participation is more than 500 million but less than 1 billion, the King / Jungherr Zechariah will take the remaining.
Totally new avenues open as the King is bound to give a haw for anyone who has at least 10 soldiers, and this includes this corporation. We think.. We can spend the profits from the Hotel to develop the haw, and other prime properties. It's glorious. The shareholders may vote for the dividends always, but if they do not, the expansion is the way to go
Hey Noble Palace, is anything happening on that side of the Square? We betcha you have more exclusive and probably more luxurious, but you just can't beat the size!
Poll
