Stellarum carries the basic market demand study one step further, and extrapolates from the cash flows to a probable value upon completion. This is then compared to the budgeted or estimated construction cost to determine whether the project is feasible and, if not, the approximate amount of the shortfall which would require some form of subsidy.

MIDA Mayflower Mountain MWR Hotel

Stellarum* was retained by Extell Development to prepare a feasibility study to be used in a bond offering for a proposed hotel of 358 rooms with 55-units of market rate condominiums in a new ski resort village to be built outside of Park City. The project was located in a special district formed to effect a replacement of a slope-side hotel owned by the US Air Force that had been demolished as part of the mountain expansions for the Salt Lake City Olympics. Stellarum* reviewed the Room Block agreement governing the availability and pricing of discounted usage by military and dependents travel and forecast the hotel’s gross and net income. The absorption period and pricing for the condominiums was also estimated, which, together with the tax breaks afforded by the special district, carried the hotel into positive-return territory.