WYNDHAM HOTELS - FDD UFOC ITEM 7 Detail
ITEM 7. INITIAL INVESTMENT
a62J
YOUR ESTIMATED INITIAL
INVESTMENT622
a623

The following tables
provi4e estimates of the initial investment required to construct or to
renovate a 3Q1 room Wvndham Hotel and a 126 room Wvndham Garden Hotel. The
estimates in the new construction tables exclude the cost of land. The
presentations in the conversion tables presume that vou already own the hotel.
Your actual expenditures for a System Hotel mav fail outside of the ranees
presented. Your expenditures will depend upon many variables such as, region
of the country, labor costs, economic conditions and timetable for completing
the project.
(1)
882 883 884
The Application Fee^�� ,���
Initial Franchise_�ee-JnfpjTOaticjLT^hnQlojrv Fee and Reservatiftn__SiarlLUD���
Fee arc
further described in Item 5. If we grant you a
franchise, we will credit the Application Fee against your Initial Franchise
Fee.
(2) We do not provide assistance in site selection.
However, we do require that you obtain a market feasibility study by an
independent third party consultant if you will be constructing a new*51���
System Hotel.
01
J3ie_outcome of the
PhasjJ^iyJJ^mmentalJSuryev mav, dfctate_that
additionaLe_iyjr<3iUTiental_^
aiiyjam4gms__mLrmtenji^������������������������������������������������������������������������������������������������������������������������� of
these adiiUiQMli^ie^carjJjeJiiBhlv variable.
inahle to estimate real estate
costs because of widevariatif
.rjdjnjL.PJlJ''actors like locatJPJ__j-i-�_af
th�_prc_perty. meiitYpneiiof_j_wj3ej^ip^������������������������������������������������������������������� market
condfriPJ^JChere is no minimurn_iicigagej%auirem^
ampunt.pf, land required for development may
varyflreatlv deo.endingjtpoji Ipcaj building codes, setback
requirements,,parking
a^uwems^ndfiimUarJacJQrs-
(5)_____ This item inch
liteclural-^d^rtfi
ngeruig _fees__i nteriQr_-and__land_icar.
.costs;, surv�ysLJees^ for.
other
|
ljKarieiuvithJhc^r^
t vou wULmanagejhe
888
|
cjnsultantsJnyolved-inJhe System Hotel''s
de-jiim^d^mstnictionijind, other cost locationgnd desigj__oJjhe System
Hotel and the premis^s__3n_wjiiciah^
System Hotel''s development yourself, so this itemJOCS not
includeJhirdjafly^avelonmentJXuna^
(6^���� Insurance premiums mav, viu^wjdej^j_as�dJHUlieJ^^����������������������������������������������������������������������������� Hotel.
the_sizej3f_t
ryp^_f_cc_y.erage. We require the minimum
coverages describ^nJtem.8^f-thi-LDiscU
jncludes-thejotal-construction cost of a System, Hotel
excluding thej&sLoijaKMeai^
and^ite^rluiremii
iax^arx-due_ic__wjdj^���������������������������������������������������������������������������������������� includes
the consiactiojijaf resiaujajit-and
lojjnget_kJtchenl.swimminfi,pool[
exercise rop^aridjmaJandscar_infl^
under.federidiaiid/Qr-jaate^lga^�������������������������������������������������������������������������������� Impact
fees varxirimu-dsdicJiQuJa^
amount to be chareed to
vour Hotel, The item also excludasJlnaticJDg costs, which mav vaix_vyMely_hased
on factors like the typ^j-fJoanulie--iize-and location of the Hotel and
vour-jiMryjorthiness. Building construction costs vary gTeat_y_from region to,
region depending upon materiaUabj3r_cpj5lsJ_uniorLor non-union
practices and othei_yjariaMe-i-,
f8) This item covers the cost
of furnishing a Wyndham System Hotel and includes furniture, carpeting,
wall covering, and other furnishings (including those for the restaurant and
louneel exercise equipment, laundry equipment kitchen equipment and,
business center
equipment. It does not include telephone, reservation and property
management systems.
(9) This item includes computer
hardware (including the required servers, workstations,.laptpps, and printers^,
appropriate
software licensing. ClSI%U;QUieE.-QthgrJnft����������������������������������������������������������������������������� equipment,
together with network setup and installation for
the System Hotel''s information technology ("in
infrastructure. In particular, the item includes the Micros Opera
property
management system application/software licensing_Jnj5iaU3tic_q_and
training, tlieJjprinLdfltaj;ircuit for accessing our wide area
qeiwoik- Wavnort high speed Internet access system for guest usAg_t_j_Qjmt_Qf^le^ystem.
euesUacJqnjLSystem. time clocks and
payroll system, and sales and catering-^ppJicalion. The item alsoJncludes
the_Sy_jejnJMelVtslej-hone switch (including
cjanj^ejjjmd-jJifiitaLadmjnis^���������������������������������������������������������������������������������������������������������������������������������������������������������������������� guestroom.
telephones-fcorded and
cQrdkss-, See UemsJLand 11.
flttt���
This iter
3pJiejLfor_�uest_r.Poms
inventory^-and
SAmplies..needed,for,trie_�e^ glassware, china, liquor
and food.
Lifomstjnamtenance_sunnlies.
paper goods, silverware.
CI 1)��� This.item,includes costs for permit fees,
uliUty_dsRosits,,business,licenses.and.Qthej^taflujixeqiiirementS
894
Q2)__ _ Uquor license costs vary w_dgly_dgnending on the iurisdicj^Qn, In many.states, the cost,wW.be closer tQ,theJp_W.,end,.of
th�janses.:..The,cQst will likely lie^njhgJiiRh end of thiLiim�eJpr.,may..ever^��������������������������������������������������������������������������������� endLinJhQseJunsdictions,which
Uniiuhe^uinbeji-^iauor licenses issued and cousjdj.uhsiiuuLass�tj.fj^����� '' ''
(ML
,This item
includes.miscellaneQus.pre-opening.expenses,such as.postage_-Qffl.c
stitejlaiimient-jdues.andJuJwu3tm
iejiLKntaLej-pens_es_
JEhjs_amoui
aUnj_lu4e_Royalt tes
Jvlarketii
sexyatiou-Syslem
implied. Many fast.
rgycrweiLand
operating costs, including seasonality, ore-openine
advertising_an.
)ULiQCatiQiU-^Qur management
ability, staff
peijorinance and local markelfaciQrs.su.cli-asj&^������������������������������������������������������������������������������ and ermgnv.
don''t guarantee thatyau
will not
hay^ additional expenses starting the bjiainess.
sesincludejat;

909''
910
.■|-^il4LS;^^5,
,9W
.9.1? ■:
912
LooiiMltynt1

;�� '' "922
"*V� - ''� !- pjg
924
_>4_y78.
936
>940
j- ''^l- .941
lib
�*47
.cnQgali oil B)
945
�''946
As ntraoggd *
,947 *>
Illds.-pcTldt''Ot

SuppW^As. . i
arranged^.. �
'' ,^53
967 f
968 ''
,.fN ■ * p'' qta~
LWCandtJs; "
,9^4
jitcaogtrd
970
\ 976
�>�C4&dU&;
VgheniaTOJced:
971
v���� ■ * 977''
\\W''.,iA Vti^dors.
� 972
CoVLtjiiiitttt
Aj^dt-.UtoltlJE ^78
■9sr
,982
983
r\a&ttanged f
jloldot
:986 .
4. ■ ■■
987
■� '': , ''l>988 - .
Lump Vum y
,989
993 ■ ■"
As amused
A&anaflgcd,
, '' 996
TMrsr^i\ff>ntha.oC
S5418ti0.Q0999-:-
As incurred
1001
..���������������������� 1002
"

e of the Hotel
(&)����� This item includes tl
as-towelsjjnens and hejlding_andJnventorv and
iJarJhs^eneral operation of the SvstemJjotelsuch
asMuniforms^maint�
chJiia^iifluoxiindJbQd. f9)���� This item includes costs
forjgnnjXfee.s^utility^tosits, busines^ljcensesjuidjitt:
lenls.
1018
Liquor license costs vary w.idelyjjepending on the
jurisdiction. In many states the COSLwilLbe_ClQSer tQ the Ipw end of
thjLrange^The cost will likely be on the high end of the rarjgeJor_mav even
exceed the hi|hjmdluUuQse jurisdictions which
limiuhejmr
ilties. MarkeiingJUld. Global, Sales Fees or Reservation System
Fees vou must pay, us. No
financial performance.representation is JmpIJed^JVlanyJaclQls. affect voi
jsnuesjind
operating costs. includjnjLseasojialitv. pre-opem^g^dmtising-and_marketing. yourjocationr your manjgernentahilitvr
staff jcejuidiocaLmarket
factOKjsijch^sjaimpetition forjcjjstomers^and
employees, These expenses include lat
dfln^Lguarantee that vou
will not hay,e additional expenses starting the business
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ipplication Fee, initial
Franchise Fee, information Technology Fee-aad_Reservation StarHJpJEee_aBe!
further dsscribedin Item 5. If we grant vou a franchise, we will
credit the Application Fee itgairisLyiauJnilial Franchise Eee^.
(2)����
We
do not provide assistance in site selection. However, we do require mayu-abJain_a-;
rr5
tyj^QB&ultant-ii
(3)���� The_p_utcome.pf.the
Phase,.l.Enyirpnmental.Suryey may-djclatsJhat_3C
il, studies he dpjiejQ-SMsfy
any.concerns
over.potential.hazards_aUheJocation you,select. The cqst.pf these additional
variable.
(A)���� We_ire_unabieJo_�sUmate-ttaUfl^^������������������������������� wide variations in prices depend!ng^onJactors like location,
size of
the_pronertv, the typ__)f
ownership interest vou aimirejmdjiiarJiSl^
amount of land required for develoipentjiray^ryja^t^���������������������������������������������������������������������������� codes.
setbacJ_reguirements^j^Mng
is
(S)����� This,
item.Jnciude^-JJXluleJ^riiLand engineering fees: .interior.,and landscape design costs:
surveys: fe_________________________________________
cxmsnllants involvedJ.nJhe_SyjsJem Hotel''s design gp_l__3nstruction:
and other costs. �, The amount-varies with the complexity,
locationjffldjtesjgn_-tlhs. System HoieljmdJheaumisesjmjvntch-^
TT5T
smjJo^sjmUnciu^htdjariy^
(6)��� insurance premiums mav vary
widely based on the locaijon-Qf the System Hotel, the size of the Hotel property and the
type_Qf-C_yerage. We require the
minimum coverag�S_dg5Ciib_e_Lin^��������������������������������������������������������� Disclosure
Document.
and.site.work,premiums-^iciunay_yarv
due to wid�_yariations,in.site_conditions. It includes the,constriction^
jtem.dpes.not.include-impact
fees.which mav be assessed by local authorities to,defray the costs. Of their
clean_up_obligations under federal and/or state clean aiL^d-W^UsrJegisJation^-
Impact fees_/_ar_v_fipjniuri You^houlaLcligck
wjthjhe�aprilkabie_tol_^^ to determine if anyjmjacjjees-are_3ssessed and, if
so. how thev are_c_ilcaufltejLandJhe amount to he charaedJo^QurJiotel.
The item also exclud�s_fjnanc_Qg costs, which may vary widely basj^LonJactors
like the Woe of loanune^e^andjoxationjif the Hotel and vour
creditworthiness. Building constmclion costs vary greatly_ jonjnaterialJabor
costs, union or non-unioiLPractices and other variables.
JJnsj^enLCQvers the cost of furnishing a_W_yndham
SvstemJiPieLand includes furniture, carpeting.'' wall i^yeiing^and
the
restauranLanjjIojmge,_e__;rcise eouinmentJaundry equipment.
kitchen.eaui
TT60"
husines
jter_har
SPJLwitreJic^sing^-D^CO
router, .Qther
auiied_S�i:
4re_and_3u_iliary^uj.r.
artetations^ptc
stallation for
managemsr
f''IT"^ infrastructure.� In particular,,the item includes,the
Micros Opera property md training, the Sprint data circuit for accessing
pur wide area
ngtwor
rtemelaccess system
for_guest usaee, point of sale SVStem. guest tracking s\
consoles an_l_dJ�ilaLadministrative
DflflnK?). voice mail. Jazz call acamnting_sysiem. and guest room
teJenhongs_jlcj3rd�d_and
CCjdkSSl_See Items 8 and 11.
jncludes^iitheiiicoslJbjiir-i-iaJ-SUpP^������������������ guest rooms SUChjasjoaelsJii
s.uppiig_jieedeiiipx_^�������������������������������� of
the SvstenUioMjuchjis-uniforms. maintenance supniii
gkss__arj^jminflJu^nior and food.
-iny.entQrv-.and
usJlem.incl udeuosts-for
dteJausinejssJic^sexand.
other staflup-cecLuirements,
1163
(\2\ Liouor license costs vary
widebLdependinE on the jurisdiction, Irunany--tat]-Llhe___ist will he
clQseUoJheJpjty_^raLaf the_janfieJ_The cost will likely
be on thejiighjsnjdjrfjnej%nge^������ even exceed Jhe_hjj|h end^ in those
iurisdictionS-wJikh
limiUhejiumbjuiOigiior licenses issu�d_ifflp_j_MSJderJhsrn
an asset of the license holder.
ThjsJieirUncludgs_mis^
enierlainmenj_j3ue^jand.subsc^^ expenses.
jnclude Royalties. Marketing and,
teservation
System, Fj;es_jQiupust pay us. No financial
PcrfQrmancejwesentatiorusJjnplie^
QpjeraUng-i&sJ^ncJudj���������������������������������������������������������������������������������� adyertisinajad-miujielmg^ajr
location..-^r_mjaDagementiiipbilityri .staff
p_er&lffi|u^^
dQnZt^arantee.ihjai^pu_wl^
^dbfl^^gdfti^ioJd rrj^calv err ion ,r l?Q^img
Qun(
1174
;�Mtthod of
1-170

sum
ItTS
1181
mm,
1185
Consults i
1186
t''J 1190 mm �
What^''S^fJt. ^
1195
: ,1.196*
U97.
t^ons^ltr n i
Yaoo"
- */�� v"f_nt 1
1202

" I_uiri|gi|ej.Fixtures
and,
ski!!17
;\^l ,Viv~"n - .** �
5JT
lata-.
122s
Vendor* jjnd'' , v .1120-
^ ^enjnvniced; V/^''doEtaad; -
s .1227
hiropaet
^''etidor.
,1284
fn The Application Fee.
Initial Franchise Fee, Information Technology Fee. Property improvement Plan Fee and
ReseEyatiQn.StartrUp Fee.,areJkrther.descr)bed..in.Item 5, If we
gr&nt.yimjiiraMmise_we will credit,the.Application.Fee.afiaiP-t
yxttuJnilial
Franchise Eee,
,1286
(21����
We do not providjLassislanc�jnj^e_aelection. However, we recommend-that vou
obtajnjunarJieiJsiisibil^^ are converting an existmfi.hoteljojLW_aidham
System HoteL
_1288
("31 This,,,item
tndudes.such.,.costs,as arcMcjauj^Lan^niuneerinR fees; interior
and.landscape_design.,costs; fees�foi_oth_r consultants involved in the System
Hotel''s renojationLaniliimer_ie^kn costs. The low end ofjh__rati�ejiresumes
thaUheJiotei is in excel lent-CjjndJtion and .only minor
interior, .design work,is_ngeded. TheJiigh.end..pf.the_range presumes thaUheJiPiel--ill
Uiid�im^jamiPjehensiye.reno.Yation
requiring,all.of.the above architectural and engineering se^vices^ J 290
T29T
type
of.cQyerage. We requir__tbejiiininuun,coverages.described.in.Item 8 of
this.Disclosure, Document. ,1292
5Sibat,.(i),you alreaJy_owri.,the
Hotel.and.haye,no^cjuisilionj^ts>-andiii}Jl:
public
iiiioji^witlLnQjstr
jmbing.
heating...v,eiitiMpJLJiLflLr_j^������������������������������������������������������������������������������������� or.�repaying
of the parkir^ioJj''ejauir�d,,..The hifih__iQLoiLthj_iangs
roof, new
interior design elementsjmdJandscaping. and/or repaying of the parking lot,
ffil���� The Jow. end of the ranee,
presumes.tjiaLaUiurotture^������������������������������������������������������������������������������������������������������������������������������� ai^n_excj_lsnt
cjanjitiPJLflnd
thatJhe-Qnlyjqp^rMngJha��������������������������������������������������������������������������������� of
Michaelliiay.es and
othsr^iimaturjeJieros^
as the Wvndham Smart �hair� and Wvndham^ larmXiock/Radio/MP3
player,, The high end of the rarme_jir�SUmesJhaLall
guestjopms_^d_rjiibJic area will need to be, refurbished
includiruzj;ase_go�ds_�a^����������������������������������������������������������������������������������������� tile,
wall coveringsilight
fixtures, bathxpjQj]i_anities.
mirrors, artwork,, and lobby furnitur_^ndJrQPLdesk,
_1296
m���� This item presumes tha| the
SvsterrLllQtejIsJT^intosiQu^�� is up
to
date and that the_jmiy__asieins_ne�d& _ns__Uaiipji_pf^^
Items
8 and 11.
,1298
|
is^uch-aS-tQwels^linens-nnd-bedding-and. inventory,, and
|
(8)����
TbisJtemJncludes_the-CQSt for initiaLsupplies for
Siippli�.neededjQXJhe^ejieraljiPe!ration of thcSystem Hotel
sqcJijiS-^ifQnns._maintenanc^^
chinaJiquoLandJood,
,1300
(9\����
This item
includes .costs ,1302
(]Q) Liqppr, Hcense,cosi^__arv
widely depending on meJurisdictioji_Jaijnany-Statcs the cost will be
closer to the iQW-Sndfif lhe_range. The cost will likelv be on the
high-jend-^fjAejspge_CoLmav even exceedjhejiigjijsjidljnubose
iurisdictionsj^hich
limit
the number of honor licenses issu^djMLconsidejjfrem^n^������������������������������������������������������������� license
holder.
tlJO^^''Diis^amounLiS-an-estimate-and
does not include RoYaitie^J!darJteting.and_3lQbalJ&le^ yim-muslj^y.us.
,Np_ii
QP^ting-jxftt&Jnj^ding-seasQ
advertising_anjljnaiJ^nfi-^urJoxatiQn^^
tjajormanceflnd local aiackeLfaclors
such as comnetttiQiLJfcLc.u^^������������������������������������������������������������������������������������� These
expenses include lab_jrj;o_U-_W_fi
donlLguarantee
thatyou_will.noliiay^dditiQnal.expenses starting Jhejiusiness^
Except as specifically stated above, no payments made
to us are refundable. The terms of your agreements with independent suppliers
will determine the refundability of those payments. Except as set forth in Item
10, neither we nor any of our affiliates offer any financing for any part of
your initial investment.
.1305
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