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PLANNING A MODERN ROADSlDE INN

Thai: for tho Dogma a! M. A.
MICHIGAN STATE UNWERSITY

F John Poulos, Jr.
E [956

 

 

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PLAID IT} A. MODERII ROADSIDE 1173

By

John Poulos, Jr.

A THESIS

Submitted to the School of Hotel, Restaurant and
Institutional Hanagement of Michigan State University
of Agriculture and.Applied Science in
partial fulfillment of the
requirements for the
degree of

ZIASE‘ER OF ARTS

1956

Drawings by

Gerald wasielewski
21970 Harding
our Park, Miehigan

TABLE OF CONTENTS

CHAPTER

I.

II.
III.
IV.
V.
VI.

VII.

INTRODUCTION . . . . . . . . . . . .
History . . . . . . . . . . .
Problem and Procedure . . . . .

CHOOSII‘TG THE SITE . . . . . . . . .

TYPE OF OIERATIOfl TO BE UEDERTAKEH . .

SITE PLANYIEG AND BUILDIHG DESIGN . .

*IJ

ACILITIES AND EQUIPIE‘LTT . . . . . . .

t4
P"!

S
COTCLUSIOFS . . . . . . . . . . . . .

BIBLIOGRAEEY . . . . . . . . . . . . .

‘IE‘BXTED CAPITAL AZTD OPEFATIT‘TG BUDGET .

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28
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73

II.
III.
IV.
V.
VI.
VII.
VIII.

IX.

LIST OF TABLES

A Statistical Abstract Supplement: County and City
Primary Trade Area . . . . . . . . . . . . . . . .
Secondary Trade Area . . . . . . . . . . . . . . .
Pensacola's Primary and Secondary Trade Area . . .
Twenty—four Hour Average Traffic Volume . . . . .
Questionnaire Completed by Kotel Guests . . . . .
Kitchen Equipment Legend . . . . . . . . . . . . .
Estimated Capital Cost . . . . . . . . . . . . . .

Estimated Annual Operating Budget . . . . . . . .

 

ccccc

........

 

 

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FIGURE PAGE
1. Recreational Facilities . . . . . . . . . . . . . . . lO

2. Property Location . . . . . . . . . . . . . . . . . . 18

3. Traffic Survey . . . . . . . . . . . . . . . . . . . 20
M. Site Plan, floHo Inn . . . . . . . . . . . . . . . . . 30
5. Single Hotel Unit . . . . . . . . . . . . . . . . . . 3n
6. Combination Living and Housekeeping Unit . . . . . . 37

7. Typical Hotel Room . . . . . . . . . . . . . . . . . HO

8. Kitchen Layout . . . . . . . . . . . . . . . . . . . MM

CHAPTER I
ETRODUCTION

Part I History

Taking the family to a neighboring town during the horse and buggy
age was a great task, and ten miles was a long and tedious trip. hother
had to prepare enough food for the day's travel, and.the children ex-
citedly took care of their chores, while father and the oldest son
polished the carriage and groomed old Dobbin. .A trip, such as the one
described, might be planned and prepared for weeks ahead of the time
of departure.

Nineteen—ten rolled around, and the new, "high-powered", auto-
mobiles rumbled down the beaten paths. Trips were becoming easier
but still required a great deal of combined effort on the part of the
whole family. Suitcases and gasoline cans were strapped precariously
in the back while members of the family were completely bundled up so
the dust wouldn't dirty their clothing. "Roadside inns were a welcome
sight to the weary travelers. Yet danger lurked, for some of these
inns had a doubtful reputation, and seldom did they offer any of the
conveniences of home. Today, these inns take on a new name and repu-
tation, and the modern motel spells comfort to the driving tourist.

In 1925 there were approximately twenty million automobiles in
the United States. Nineteen-forty showed an increase of approximately

. . . . l .
twelve million cars on the roads in our nation. Today automobile

 

1Geoffrey Baker and Bruno Funaro, Hotels (Chicago, Reinhold
Publishing Corporation, 1955), p. l.

2
production is near a peak record, with a 1955 production of passenger
cars totaling approximately 7,9M2,100, according to the Public Bela»
tions Division of the Oldsmobile Corporation. Expressmys are being
built in order to meet the transportation problem.and motels are ap-
pearing beside these highways to serve the motorists' needs.

One important reason for the growth of the motel is the fact that
our population has become so centralized. Sixty-four per cent of the
total population of the United States was classified in 1950 as living
in urbanized areas. Our population in 195“ was 161,700,000 as compared
to 130,700,000 in 19u0. Approximately su,500,b80 persons or fifty-six
per cent of the total population lived within 168 Standard lietropolitan
Areas. From l9MO-l950, about eighty per cent of the United States
population growth occurred in these hetropolitan areas.2 With these
cities becoming more and more congested, it appears to be the trend
for people to avoid the larger cities as much as possible on their
motoring trips. "Of those vacationing by car, 59 per cent stay in
motels en route (only 36% now use hotels). 0n reaching their destina—
tion, however, only 10 % of these vacationers stay in motels; 25% in
hotels; but 50% stay with friends and relatives."3

A comparison of the growth of the motel to that of the hotel
should be made. During the twenties, hotel construction surpassed

its demand and much revision of finance followed in the thirties.

 

2Fisher and Fisher, Urban Real Estate, (New York, Henry Holt and

Company, Inc., 195M), p. 33.

 

3Baker and Funaro, op, cit., p. 2.

Occupancy in the forties, for many years, averaged over ninety-five
per cent while today about seventy per cent occupancy is the average
given.“ It is of interest to note that even though generous profits
were made in the forties, there was only a bare four per cent increase
in the total number of hotels and most of this was due to the increase
in the resort business.

On the other hand, approximately 600 motels were to be found in
the twenties; lu,000 in l9h5; and in 1950 there were more than ”0,000.6
It is an interesting contrast to note the comparison between the two
boom periods of the hotel and motel. The hotels were built at the end
of the large expansion of the cities during the twenties, while the
metals are being constructed at the beginning of an even larger exa
pansion of the suburbs and satellite cities.

Another important comparison is, that in hotels, labor costs are
about thirty-five per cent of the gross, while a motel can have a
labor cost as low as fifteen per cent of the gross.7

Even though the hotel possesses many elegant attractions for the
guest, there are several distinguishing factors about a motel which
furnishes sufficient inducements to its guests. A motel means
economy to the traveler. The prices are generally the same or slightly

lower than hotels, but there are no door men or bell hops to tip, and

 

1‘Ibid., p. 3.
51bid.
bIbid.

7Ibid., p. 9.

u

no garage fees to be paid, nor many other additional charges. hotels
are conveniently located. The motorist has an easy time in choosing
or reaching the desired motel without driving into a city and being
confused by the congested traffic and poorly marked routes.

Location is not the only convenience offered by the motel.
Hotels are laid out so one may drive as near as possible to the unit
to unload the baggage. After driving all day, the mere location and
parking aspect is quite a drawing card.

Since motels are relatively new compared to hotels, an important
characteristic is the modern appearance of the motel. They are general-
ly well furnished and clean throughout and modern construction, with
single story design, facilitates safety. Being built in length, the
problem of evacuation is reduced in case of fire and children are
safer with larger areas in which to play.

Hany people associate a hotel with a certain air of formality.
On the other hand, motels have an informality about them that make
most people feel at home. Dress and appearance doesn't have to be of
the highest caliber at all times especially after driving all day on
the road.

Just like any other business, it's the personal touch of the owner
that makes people feel at home. His friendliness and interest in
satisfying everyone makes the guest that much.more convinced that
motels are good places to stay. "When it is considered that ”03 of
vacationers return to the place they visited last year, and 25% of

vacationers visited places recommended by friends, the solid values

of the personal toudh become of striking economic importance."8

Part II Problem and Procedure

The author has a parcel of land in Pensacola, Florida. The prob-
lem facing the author is developing this land, by investigating its
possibilities as a road side inn, and following through to a plan for
its operation. Choosing the right location is one of the most import—
ant factors in such a project, and since this property was available,
it appeared to be a good basis from which to begin. In order to check
the validity of the plans, it Was necessary to develop the following

steps:

(1) Choosing the site:

First it is essential that the history and economy of the city
be investigated. Growth of the community can be closely tabulated by
looking at all the activities that provide an economic return for a
community such as; the political, educational, social, recreational,
physical, racial and institutional factors. Other reasons for a
city's growth are its transportation facilities, closeness to raw
materials, and arrangements of materials, labor and capital. After
checking the economic base of a city and its growth and movements,
traffic surveys must be made and city ordinances investigated. When
the character of the potential business is fully defined, these fac-

tors should largely detennine site location.

8Ibid., p. 7.

(2) Type of operation to be undertaken:

The type of guest to whom the prospective owner will cater, in-
fluences the type of operation. Other factors which will affect the
operation are the services to be offered, location, climate, volume
potential, plus budget requirements. These factors must be critically
analyzed in order to determine the most suitable and economical type

of operation.

(3) Site planning and building design:

Laying out the project so that the highest and best use of the
land and building potentials are satisfied, requires careful planning.
Land contours, access and outlook, parking, landscaping and the de-
sires of the guest, must be taken into consideration When planning the
site and building design. Having a central theme to add mood and
atmosphere to the area is part of the layout design and is an asset

in selling rooms and service.

(M) Facilities and equipment:

Facilities and equipment must be selected through a study of the
needs and desires of the motel guests. It is hard to please everyone
but it is the wish of the author to construct a roadside inn that
comes as close to satisfying all within a certain economic medium as
is possible. Some facilities such as a drive-in registration, swimp
ming pool, children's enclosed playing area, sales display rooms,
baby sitters, room service, dining room, coffee shop, and cocktail
lounge are part of the comforts and conveniences which the author

considers important.

(5) Estimated capital and operating budget:

How much money and financing is needed to build a motel is a prob-
lem common to many potential motel builders. Their desires often do
not coincide with the financing available whidh may result in major
changes in the plans for such projects. The author has a plan for a
roadside inn in a particular area. The type of operation is decided
upon. He has limited resources. He plans to work out a plan for the
construction of a highway motel-hotel, and a plan to be used in financ-

ing the project, including an estimated operating budget.

CHAPTER II
ChOOSING-THE SITE

Pensacola is a city blessed with tradition and prOgress. It was
first founded by the Spanish in 1559. Since then, the city has changed
hands thirteen times and the flags of five different nations have
flown over the community. Pensacola is still called the City of Five
Flags.

Pensacola is located on the Gulf of Hexico in north-west Florida,
178 miles south of Kontgomery, Alabama. Pensacola was first located
on Santa Rosa Island, which is directly south of its present location,
but due to the hurricane dangers, it was moved to its present site.

The population of Pensacola is 57,300, but the surrounding trade area
population is 1485,000.9 Because of its deep water harbor, it is a
great trade center and the Xunicipal docks and terminals handle an
annual business valued at approximately $50,000,000.10

The economy of Pensacola rests on four distinct factors:

(1) There are two air force bases which are situated in the
Pensacola area and are permanent in nature regardless of peace or war.

To a large extent they employ civilian personnel which adds to the

employment possibilities of the area.

 

9Pensacola Chamber of Commerce, Statistical Review, (Pensacola,
1955) . P- 2-

eastern States, (1955), p. 66.

9

The United States Haval Air Training Station presents an annual
payroll in excess of $73,000,000 and the Eglin Air Force Base has a
payroll of approximately $40,000,000.ll

(2) Industry is another sound economic value in Pensacola and
is expanding rapidly, with its annual industrial (non agricultural)
payroll of $12,100,000.12

Local industries include the St. Regis Paper Company, The Chan-
strand Corporation, Newport Industries, Armstrong Cork Company, Florida
Drum Company, H. B. Fuller Company, Escambia Bay Chemical Company and
many others.

Some of the manufactured products include wallboard, industrial
chemicals, naval stores, furniture, trailers, beer, paper, fertilizers,
windows, doors, pleasure boats, truck bodies, brick, innerspring mat-
tresses, iron works, candy, tents, barrels, and nylon yarn.

(3) Pensacola is a resort, tourist and vacation area which has
produced a $10,000,000 annual tourist industry. It is of special note
that these recreational facilities are within easy reach of some
23,000,000 people in one day's drive.13 Escambia County, of which
Pensacola is the county seat, is less than 550 miles from the center

of the population of the entire United States.1u

 

11Pensacola Chamber of Commerce, Pensacola, Florida Trade Area,
(Pensacola, May 1955), p. 3.

12Ibid.

131bid., p. 8.

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The weather is excellent the year around with a winter and summer
season for vacationers. There are miles of white sand beaches and
numerous outdoor recreational activities such as water skiing, boating,
deep sea fishing cruises, sailing, surf bathing, dog racing, stock car
racing, riding, hunting, dancing and golfing.

(N) Agriculture composes the fourth factor on which the economy
of Pensacola rests. Potatoes, soybeans, cotton, dairy, and tung oil
produce an annual income of $2,175,000.15 Ninety per cent of the farms
are owned by white persons and, for the most part, are family operated.

These four factors represent a total annual income of $107,175,000.
The growth of a city also depends upon the diversification of employ-
ment as well as the total amount of income derived from various sources.
A city must not rely too heavily on one industry, for if this industry
should move or disband, almost the entire working force of that com-
munity would be unemployed. Therefore, the author feels that it is
important to analyse the sources of employment in Pensacola as well
as analysing the total expendable income. (See Table I, page 12).

More recent figures show that wholesaleing and retailing employ-
ment has increased almost thirty per cent in the last two years in
Pensacola. By looking at the employment figures for all the major in-
dustrial groups listed, it should be noted that manufacturing is not
the dominant employment factor in Pensacola. As a matter of fact,
there is a wide distribution of employment throughout Pensacola and

Escambia county. Therefore, if one industry should lay off workers,

 

léPensacola,Florida Trade Area. 22: Cit-. Po 8°

 

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13
the entire community and surrounding county will not be immediately
affected, for the remaining industries should be able to absorb a
large percentage of the unemployed. The Chemstrand Corporation's new
$85,990,000 Nylon plant at Pensacola, employing 55,000 people has Just
been completed and should definitely aid in the economic stability of
the area.

By looking at Tables II, III, and IV on pages 1”, l5, and 16, it
can be seen that the total Consumer Expendable Income for Pensacola's
Primary and Secondary Trade Areas in 195U was $528,352,000. With the
availability of this income, retail sales have increased eleven per
cent since 1952.17 It appears that the business picture for Pensacola
is very bright and is on the upswing. Since 1952 motor vehicle regis-
tration increased seventeen per cent, bank clearings eleven per cent,
gas meters twelve per cent, and water meters fourteen per cent. The
Pensacola hews-Journal has increased circulation by eleven per cent
and advertising lineage by sixteen per cent.18

Thus far, the author has discussed Pensacola's history, four main
factors of its economy, employment, the trading areas, and the general
increase in utility connections made. A city has to have more than
these factors to be a growing camdunity for it has to be a good place
to raise a family. Without a growing community where people want to

settle, the type of operation the author plans to develop would not be

 

17A Pensacola Engraving Co., Inc., Publication, The Pensacola

Visitor, p. 27.

131nd.

1%

Table II.

Primary Trade Area

19
Pensacola, Florida

..-m .... . m .Tnnh- .. ”.lu{. H.-"u...TH---___,H_.iH
.‘ i '1'

bEeoambia ,
' Co ’ '

. 0: f
L\ Fla. ‘ Santa Rosa Co.. Okaloosa
} E Fla. 00..

(a '2 0 Fla 0

--- *Q-

Walton Co., ;
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Pepulation 1-1-55 Est. 267,800
Number Households 1-1-55 Est. 73.520
Retail Sales - 195h Est. f185,7h7,000
Consumer EXpendable Income $307,792.000
195k Est.
-...ii§..iih_.m_l,ii
193153113018. Chiral" r' ’g ;" Commerm‘, lgl’si‘:.§fgdl_{z,, fl‘r 5.x 51‘“ l ‘ ”"2: ,

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(Prns'cola, "ny 1955), p. 3.

15

Table III.

Secondary Trade Area

2
Pensacola, Florida 0

 

 

 

 

 

 

 

 

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I "‘" ‘5 .- .. ~- ~ .- _ _ .. Ala.
, . ‘
. Covington Co.
Ala. I l
Escambia 00., ' " - - - - - -
Ala. . . - 1
' , Geneva 00.,
; Ale.
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Holmes, Co.,
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-‘ . , Fla.
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Pepulation 1-1-55 Est. 277.800

Number Households 1-1-35 Est. 7h.h60

Retail Sales 19Sh Est. $160,12h.ooo

Consumer Expendable Income $220,560,000
19Sh Est.

TABLE IV

CCTBIHED FIGURES
I

PELSACOLA'S PR xAEY AJD SZCOJDARY TRADE AREA

16

 

L

Population 1-1-55 Est.
Number Households 1-1-55 Est.
Retail Sales, 1954

Consumer Expendable Income, 1959

BPEAKDOZ'ET o_r_ RETAIL SALES

 

Food Stores

Drug Stores

Eating & Drinking Places

Gen. Kerchandise Stores

Apparel Stores

Home Furnishing Stores

Automotive Stores

Filling Stations

Building Xaterial & Hardware Stores
Fisc.

TOTIL

211bid., p. 7.

545,o00
1M7,980
$3u5,s71,000

3528.352.000

$ 80,507,000
9,849,000
19,510,000
28,0u3,000
15,079,000
15,997,000
73,990,000
24,792,000
25,731,000

ub,807,000

 

$345,871,000

17
possible, for the author is relying on local trade as well as out of
state trade.

Pensacola offers much for those who wish to settle permanently.
It has five banks with deposits of $b0,u22,208; 3e5 retailers and
forty-five manufacturers. horeover, there are four radio stations,
two television Channels, two daily neWspapers and two weeklies, which
form a good medium for advertising and reaching thousands of people?2

Pensacola has 159 Churches, representing thirty denominations;
five hospitals, totalling #40 beds and 103 bassinets; twenty-two schools
for whites, and nine for colored children. There are two golf courses;
three savings and loan associations; homestead exemptions with up to
$5,000 on homes and no state income tax. Also there is an excellent
public library with 28,2M9 volumes; ten theaters in the city; six drive-
in theaters and the Pensacola hunicipal Auditorium seating 3000.
Pensacola is also the county seat of Escambia County.23

These facts certainly indicate that Pensacola has a sound economic
base, and can fulfill the requirements of a growing community through
its many diversified activities and services such as political, educa-
tional, social, economic,racial, physical and recreational.

Still, these facts do not clearly indicate that Pensacola is a
good area for a motel. By looking at the map on page 18, Figure 2, it
may be noted that the property under consideration for development

is located off highway 90, between Escambia Bay on the south and Bayou

22Chamber of Commerce, Statistiggl_Review, (Pensacola, 1955), pp. 1-3.

 

23Ibid.

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19
Texar on the north. T0 the west and the south runs U. S. 98 going south
to Santa Rosa Sound and on to southern Florida. To the north of the
property running east and west is U. S. 90 which goes east to Talla-
hassee, Florida and west to New Orleans. The property is low and
flat, thus it can be seen clearly from U. S. 90 and U. S. 98.

The traffic flow map on page 20, Figure 3, shows that 10,M15
vehicles pass by the west end of U. S. 90, either entering or leaving
the city and 11,080 vehicles pass within sight of the designated
property.2u It should be noted that the road nwmbers on the traffic
survey map are State numbers, State highway 10A is U. S. 90 and State
road 30 is U; S. 98. Visibility, a paramount requirement in selling,
is excellent for this site.

When one uses a traffic count as an aid in choosing a site, how-
ever, the volume of traffic cannot be relied upon completely as an
indication of anticipated business. A distinction between local, omn-
mercial, out of state passenger cars and the season must be made. A
traffic count by seasons, however, with a breakdown on the types of
traffic is important to the business man by helping him to decide
whether it would be profitable to stay open during a certain season
and whether it would be advisable to cater to certain types of trade.
On U. S. 90 and 98 on the west side of Pensacola, the following sta-

tistics were compiled by the State Road Department of Florida.

 

21".State Roads Department of Florida, §fl7§223_Annual Averagg
Traffic Flow, (1954).

 

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21
TABLE V

195H — 24 HOUR AVERAGE TRAFFIC VOLUXEQS

—_“ '_ ..-

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Location Season Total Commercial Out of State
0n SR 10 (U590) Winter 3895 610 2185
300' east of Smer 1+125 360 2525
Perdido River Annual 3765 565 2080
On SR 298 (U398) Winter 2175 290 890
100' east of Lil- Summer 2555 2M0 1200
lian Bridge over Annual 2360 265 1035

Perdido River

 

Annually, about forty-six per cent of these cars are out of state
and commercial vehicles, showing that these roads are used consistently
by tourists and commercial people. The summer season has only a two
per cent increase of commercial and out of state vehicles over the
winter season, illustrating the constant flow of tourists all year
around.

Transportation facilities are another important item to be in—
vestigated. What good is a motel if it can't be reached? Can materials
be shipped economically? These questions mean money to the motel
operator. Pensacola has two railroads, two air lines, seven freight
lines and four shipping companies handling both freight and passenger
business. Also there are the Inter-City, Greyhound, Trailway and
Capital bus lines. Locally there is the Pensacola Transit Company to
all points in the city, beaches, and suburbs.26 Since the property

is near the main highways, the bus lines are readily accessible.

 

25$tatistical Review, 9;? cit., p. h.

26Ibid., p. 3.

22

A.motel layout on a busy highway should have two entrances in
case the motorist doesn't slow down in time. The property is first
seen from the east on a bridge, and traffic has ample Opportunity to
slow down before the motorist has to turn off. On U.S. 98 there is a
bridge and a curve reduces speeds, so it is almost impossible to miss
seeing the property.

Many'motels are built only to have a new highway bypass them and
make that road and motel obsolete. A.new road is going through Pen-
sacola, but only a few feet from the old one, so there is no immediate
problem on that count.

It was mentioned before that it is necessary to try to find out
the anticipated growth of the city, for a motel owner may find that
the city is growing away, and he will be located too far from the cen—
ter of activity. The growth in Pensacola appears to be going eastward,
and the property has Just been incorporated into the city limits. This
fact also means that public utilities and services will be available.

Before the site was incorporated into the city, there were no
zoning restrictions. Because the incorporation was accomplished within
the past few weeks, the author has not been able to check:the city
zoning laws. Since neighboring motels, which are in residential areas,
are allowed, it is the author's opinion that the planned site still
may be used for commercial purposes.

Another important itsm.when building a motel is to look.for new
cheap areas that may arise. If factories or other industrial develops

ments are built in or near the area, the property will decline in

23
value. It may be better to pay more for a location already built up.
In this project, the property is surrounded by water on three sides
and a desirable residential area on the fourth side, which is a good
distance down the beach.

Climate and seasons are another item to take into consideration
when building a motel. The busiest season in Pensacola is June, July
and August and the winter season is in January, February and.March.
Yet Pensacola is a resort town all year around, for the mean annual
temperature is 67.79F. Transient business is excellent all the time,
for Pensacola is a main route southeast to Miami and west to New
Orleans. The best location has a high demand. The Pensacola area
provides the location and the demand.surely is there.

In conclusion, while choosing a city for a site, one must look
for the many diversified activities which help in creating various
jobs, whidh, in turn, influence the economy of the city as well as
the growth of that community. Growth is also important in relation
to the traffic survey. Even though the traffic volume may not be
great, as long as there is a continual rise in volume, the outlook

should be quite favorable.

CHAPTER III
THE TYPE OF OPERATION TO BE UNDERTAKEN

The name MoHo Inn almost entirely describes the type of operation
to be undertaken in this project. MoHo stands for Motel-Hotel, with
each as a separate unit. Separation of the motel and hotel is done
because it provides for the privacy that a motel guest looks for, and
yet, offers conveniences which many motels lack; that of a coffee shop,
dining room, and cocktail bar nearby.

By checking the statistics, it can be seen that occupancy of the
MoHo Inn should not be a problem as the demand for accommodations is
annually increasing and the traffic flow is on the upgrade in the
Pensacola area. There are now approximately one thousand commercial
hotel and motel units in Pensacola.27 During June, July and August
of 195%, 913,5“0 tourists visited the city. Many of these tourists
used trailers, tents, and stayed with friends and relatives, but thou»
sands were left looking for rooms. Besides this summer season influx,
the average traffic flow in Pensacola during a twentybfour hour period
is approximately 33,315 cars.28 According to the preceding figures
it would seem that many transient rooms are in demand. These facts

constitute a favorable basis for constructing a Motel.

 

27American Automobile Association, Accommodations Directory,
(washington, D. 0., 1955), pp. lh2-lh3.

2
gstate Roads Department of Florida, 1951; - g}: Hour Annual
Averagg_Traffic_Flow, Tallahassee, Florida.

25

The MoHo Inn, however, is more than a Hotel, it is also a Hotel.
The purpose of a combined type of operation is to serve the diversified
desires of the guest. A list of the anticipated types of guests will
more clearly show the reader why a Motel and Hotel is needed)

(1) The Salesman who is on the road.all day. At the end of the
day he is tired and wants peace and quiet. His ideal evening may con-
sist of a bath or shower, cocktails and dinner, a good book or some
paper work, and then to bed for a much needed rest. The next morning
he is up early, eats breakfast and is on the road again.

The MoHo Inn will be able to furnish the Salesman Type with a
quiet room in the motel unit while the food and beverage department
will be easily accessible just across the court in the hotel unit.
Moreover, his car will be conveniently parked near his room in the
motel which will facilitate ease in loading and unloading. A drive-
in registration will allow him the convenience of registering in the
car and going directly to the assigned unit. In the morning he may
eat breakfast in the hotel and then be off on the road without the
discomfort of having to search for a restaurant once he has begun his
travel.

(2) The second type of customer could be a family on a two
week's vacation. They are looking for a reasonably priced unit Which
offers cooking privileges and safe recreational facilities for the
children. The Hotel unit handles their problem nicely, with a modern
kitchen and separate living quarters. There will be a children's pool,

an enclosed play area and numerous other recreational facilities that

26
will be described in detail later. The parents may tuck.the children
in at night, and go across the court to the cocktail lounge and enjoy
their own evening. A list of available baby sitters will be supplied
for the convenience of guests.

(3) Young couples may choose the privacy of the motel units or
the friendly atmosphere of the hotel. For their recreation, there
will be the swimming pool, water skiing in Escambia Bay, tennis, and
dancing on the terrace.

(M) An elderly couple may prefer the comfort of the hotel. Ele-
vators will be located at each end of the hotel for their convenience.
The husband.may relax in the sun by the pool or do some surf fishing.
The wife will enjoy the friendly and relaxed social atmosphere and
the organized bridge games conducted hy the management.

(5) The MoHo Inn will also cater to small business groups. This
will keep the occupancy high during the slack months. Conference rooms
will be needed for the meetings of such guests. They can also be used
as display rooms for salesmen. A ballroom will provide a place for
dances, larger meetings or large dinner dances and banquets.

(6) Tourists or transients will probably take the motel unit for
it is more convenient to park.the car near the unit and to dheck out
in the morning without carrying the baggage up and down floors. The
evenings may be spent watching television or at the hotel. Full
privileges will be granted all guests, except room service which will
not be supplied to the motel units.

Thus far the salesmen, family group, younger set, elderly couple,

business group, and the transients have been noted. But the type of

27
operation is not yet complete. It was stated that approximately
$20,000,000 was spent on eating and drinking placed alone in Pensacola's
primary and secondary areas. Therefore, the M030 Inn plans to cater
to the local trade as well. Certainly it will be centrally located,
among beautiful surroundings, and on the main arteries of travel. An
inducement to local trade will be provided by a traditional theme
throughout the premises. The dining room, cooktail lounge and the
coffee shop will be in the popular price range. These services pro-
vide that extra income to the MoHo Inn that otherwise would not be
made. The ballroom should draw dances, banquest, etc., from the
various organizations in the city and surrounding areas.

In conclusion, the type of operation to be undertaken will be
a motel-hotel, catering and night club operation. It is the purpose
of the author to offer as many diversified combinations as possible
in order to please the paying guest and at the same time to keep a
centralized theme for continuity. This type of operation provides
comfort, relaxation, and also entertainment when desired, plus

economy for the guest.

CHAPTER IV
SITE ILAENING-AHD BUILDING DESIGN

Planning the site and building design is just as important as
choosing the site. The advantage of a good location may be largely
lost if the layout is poor and unattractive. When planning the site,
the most important factors to take into consideration are as follows:

1. Land contours

2. Access and outlook

3. Parking

N. Building layout and design
5. Landscaping

(1) The MoHo Inn is to be constructed on a flat site. To aid in
breaking the monotony of the low beach line and add depth to the layb
out, the motel unit will consist of two stories and the hotel unit
of three stories. A two story motel unit is more economical than ex-
tending the units along the ground level. By constructing a multi-
story structure, it can be seen from a greater distance which should
be an advantage in an operation of this type.

A flat site, such as the one to be developed, poses many problems.
For example, drainage must be carefully planned. Since the land is
so low to the water line, added fill may be needed and breakwaters

may be required.

29Baker and Funaro, op, 913,, pp. th—lSS.

29

(2) A well planned motel should have the access road on one side
of the unit and a pleasant and private outlook on the other side.30
A common mistake is to have the outlook and access roads on the same
side. The MoHo Inn is planned to take advantage of the natural scenery
by having large picture windows overlooking the pool and Excambia Bay
(see Figure N, page 30).

(3) Parking facilities at the MoHo Inn are planned to provide
spaces for resident guests and spaces for others in areas which will
reduce walking to a minimum. After investigating the cost of carports
or sheltered parking, it was decided that these facilities would not
be warranted in view of the original and.maintenance expense involved.

The MoHo Inn will provide some sheltered parking at the registra—
tion office. When a customer registers he can unload and go directly
to the hotel room without being exposed to the elements. The car can
then be parked in one of the open lots. If the guest desires a motel
unit, he may leave his car directly behind his assigned unit after
registering.

(h) Building layout and design can best be understood by looking
at the layout in Figure N on the following page. The building design
is in a C pattern. This design was developed for the following reasons:
First, by having a continuous roof over most of the area, guests in
either the motel or hotel units may be protected while traveling to
either end of the layout. In the second place construction costs are

lowered by following the~C pattern because the buildings are arranged

 

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31
in a continuous line, thus reducing exterior wall expense. Because
the MoHo Inn will be surrounded by water on three sides, and is con-
structed on a flat and open expanse, the C pattern also affords wind
protection for the pool area.

The C pattern allows parking near the units, yet keeps cars far
enough away from the play areas to avoid the discomforts of car fumes
and noises. Since the parking is away from the main play areas and
ordinary pedestrian traffic, children and adults are protected from
unnecessary danger from traffic.

Another attractive feature of the building layout is the centrally
located registration area, where one may drive in, register and go
directly to the assigned unit without going into the lobby. Those who
wish to go to the dining room may drive around to the front and under
a covered entrance gain access to the dining area.

Before going on to the individual room designs, the author would
like to discuss a survey which he conducted concerning the desires of
a motel guest. A total of three thousand questionnaires were distributed
to motels throughout the United States. These motels were picked at
random from an accommodations directory. The only qualification that
was necessary in selecting the various motels was that they had to be—
long to some association, such as Quality Courts, AAA, etc. Motels
were divided into the following units:

10-20 units - 500 questionnaires
El-uo units -1000 questionnaires
”1—60 units - 500 questionnaires

61-100 units - 500 questionnaires
lOl-over units- 500 questionnaires.

32

The motel operators were asked to distribute these questionnaires to
the guests, collect them and return them. .A breakdown of the ques-
tionnaires returned are as follows:

10-20 units returned 122 questionnaires

21-NO units returned 13“ questionnaires

Hl-6O units returned #4 questionnaires.
Since only ten per cent of the questionnaires were returned, definite
trends cannot be accurately tabulated, but general opinions can be
formulated. These returned questionnaires covered only four states
(Virginia, Florida, Alabama, and Utah). The room design and general

layout is based upon the results of this study, discussions with motel

and hotel operators, and the observations of the author.

TABLE VI

QUESTIONNAIRES COMPLETED BY MOTEL GUESTS

 

1. Question: Is some sort of car shelter necessary?
Answer: 75% - no : 25% - yes

2. Question: Do you prefer air-foam pillows and mattresses to regular
inner-spring mattresses?

-Answer: 7M¢ - no : 26% - yes
3. Question: Is a full length mirror in.a room necessary?

Answer: 75% - No : 25% - yes
women were 3-1 in favor of full length mirrors.

h. Question: Do you prefer: Indirect, Direct, or Combination lighting?
Answer: Indirect - 21% : Direct - 16% : Combination - 73%
5. Question: Should a motel furnish a baby sitter?

Answer: 62% - no : 38% - yes

33

6. Question: Is it important for a motel to have a restaurant?
Answer: 93% - yes : 7% - no
7. Question: Do you prefer motels over hotels?

Answer: 98% - yes : 2? - no
This percentage is probably over rated because of the
fact that the questionnaires were limited to motel
guests only.

8. Question: What is the most important thing you want in a motel?
The following answers are listed in order of importance.

Answer: Comfort, cleanliness, quiet, food, service, large airy
room, well lighted room, phone, television, air condi-
tioning, sound proof walls, clean rugs and cheerfulness.

Some of the suggestions to improve motels were:
1. Lower shower head for women
2. Rubber foam pillows for allergies
3. Wide shelf for toilet articles
h. Pant hangers
5. Single room rate for salesmen and their wives so they may
more often take their wives along on business trips.
6. Books on bathroom doors
7. Dispensable bath mate

8. Pbst cards for reservation mailing
9. Individual thermostats.

Figure 5, on the following page, shows the motel room unit which
is planned for use at the MoHo Inn. This room is so designed that a
maid can clean it quickly, yet it provides comfort and floor space to
the guest. wall—to-wall carpeting will be installed which will slink
inate the cost of hardwood floors and will provide a feeling of quality.

"Double beds cost little if any more than twin beds and the cost

1
of bedding is approximately equal for the two sizes."3 By having the

 

311bid., p. 203.

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35
double beds, one can always accommodate four people in the unit instead
of two. The double beds will be so spaced that the maid has no trouble
in making them or cleaning around.them.

Some leading motel men suggest separating the tub and toilet from
the wash basin to provide a private dressing room. This plan was con-
sidered but was not adopted. The most expensive area per square foot
is the bathroom.32 Therefore, it must be carefully planned and each
additional square foot of floor space results in higher construction
costs. The use of a private dressing room requires the installation
of an extra lighting fixture, added walls and provisions for ventila-
tion. The author decided upon a simple bathroom.design which is shown
in all the units.

The closet in the typical unit will be four feet long and two
and one half feet wide with sliding metal doors and a storage shelf
above. The plan includes provision of the following furnishings:

Next to the closet will be a full length mirror, wall mounted. A
small baggage rack will be provided, also a combination desk and dres-
ser, and a swivel mounted television set placed on the same level as
the desk. Drawers will be located underneath the television set for
added space. A large baggage rack will be conveniently placed beside
the dresser, which will enable the guest to see the rack as he enters
the room to discourage throwing luggage on the bed or carrying it
through the room towards the closet and possibly knocking the baggage

against the furniture.

 

321bid., p. 199

36

A setee, an occasional table and an easy chair will be placed
near the window. This arrangement provides the guest with a comfort-
able place to sit and relax without forcing him to use the bed for
lack of a more comfortable seat. Large Jalousy windows and draw drapes
add space, vision, ventilation, and a living room effect to the unit.

The wall at the entrance will be brick. This type of construction
is more expensive than plaster, but requires little if any maintenance.
The closet and bathroom will be at the other end of the room. Ceramic
tile will be used in the bathroom. This material is expensive but is
very durable. Plastic wall covering will be used as interior finish
on this end of the room. The other two inside walls of the room will
consist of wood paneling, preferably wormy chestnut because of its
ability to withstand abuse. The furniture will be of traditional styl-
ing to agree with the general motif.

Soft flourescent lighting will be used in the bathroom, at the
desk, and above the full-length mirror with proper screening of light
to prevent unnecessary glare. Spots will be used at the beds allowing
one person to sleep without an annoying glare from.the other person's
light. A.three-way table lamp will be used on the occasional table
and a ceiling light will be installed, controlled by a wall switch
near the entrance.

Figure 6, on the following page shows the combination living and
housekeeping unit. Four of these units will be located on the right
wing of the motel. The living unit is identical to the regular motel
room but connects by a sliding door to the housekeeping unit. In the

housekeeping unit there will be a combination stove, sink, refrigerator

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38
and oven. This appliance is placed where the bathroom is located in
the living room unit in order to allow for easy conversion to the other
type of unit if needed. Metal cabinets will be installed on the wall
over the food preparation area. The table will accommodate six people.
A.small partition will complete the kitchen.and.make it an independent
room. Sofa type beds will be used in order to make the unit usable
as either a sleeping or a living room. This room.should be attractive
for entertaining and for family living because of the added floor and
seating space. A desk, television set, two chairs, cocktail table and
table lamp will be included in the furnishings for these rooms. The
two rooms have separate entrances but have a connecting steel sliding
door.

These combination units have been designed to rent together since
only one bathroom is available. Only four housekeeping type units are
provided in the plan. Additional space could be converted to such use
if the demand warrants an increase. Only a limited number of house-
keeping units have been planned because a dining room and coffee shop
are included in the project and.added.housekeeping units would merely
defeat the purpose of‘having such facilities available. Yet, if the
dining facilities reach their capacity in volume, and all the units
are occupied most of the time, as long as there is a greater demand
for housekeeping units, the author feels that such an expansion would
be Justified and would not hurt the dining facilities.

The hotel units will be similar to the motel units. All of the

furniture is alike, allowing for a mass order and, possibly, a lower

39
purchase price. Figure 7, on the following page, shows two hotel rooms
which are connected by a steel sliding door. Sliding doors eliminate
dead floor space and add to the appearance of the room. The type of
sliding door to be used is steel on the inside with a wood surface on
the outside. All wood doors were not selected because of their tendency
to warp. All rooms will be the same size and each room will have
television. Television service is included in the room rent, elimin-
ating added charges and simplifying the accounting operation.

(5) Landscaping was considered as an important and expensive fac-
tor in site planning. It is estimated that ten per cent of the buildp
ing cost should be allotted for landscaping.33 Choosing the right
trees, shrubs and plants and blending them in with the building design,
will create the right type of atmosphere and.appearance. A flat site
makes landscaping a much easier Job and especially easier to keep up.
The design developed, as shown in.Figure h, page 30, does not block
the view with tall trees, and shrubs. An effort was made to choose
those plants that would provide some bloom in every season. Large,
unobstructed areas of grass were planned to make the site easier to

mow and trim in an effort to control labor cost.

 

33Supplied by Horticulture Department of Michigan State University
in an interview, January 11, 1956.

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CHAPTER 7
FACILITIES AND EQUIPMENT

The MoHo Inn has been planned to provide many services and facil-
ities to aid in the comfort and relaxation of the guest. These services
and facilities with the exception of room service are extended to all
guests. Room.service will be furnished only to hotel patrons.

Since motel guests do not have room service, an ice machine,
candy and soft drink dispensers, will be available outside the linen
room in the motel area. 3A beauty salon and valet service will be
provided next to the motel units.

A lobby approximately forty-six feet by fifty feet is planned
with a spiral staircase the center of attraction. This staircase will
lead up to the ballroom and conference room area on the second floor.
An information desk will be located in the lobby from.which tours can
be booked and an information and reservation service provided. Rest
rooms, phone booths and a television viewing area will also be provided
in the lobby. The lobby will open to the terrace and pool area.

Next to the lobby there will be a cocktail lounge designed along
the New Orleans style. The interior will be brick, stained wood and
wrought iron. Seating capacity will be one hundred and thirty-six
with tables of various sizes, and eleven'bar stools. To aid in.pro-
moting the atmosphere the cocktail lounge will be constructed on three
levels. The band stand and one row of tables will be the first level.

The dance floor will be on the second level surrounded by more tables.

M2

The bar portion of the lounge will be on a third level and will provide
space for some tables. A narrow staircase will lead to a balcony which
will aid in increasing the seating area as well as helping to create
the New Orleans' theme. Access to the terrace will be gained from the
bar where tables will be set up and dancing permitted on warm nights.

A check room will be at the entrance of the lounge, serving both
the bar and dining patrons. The bar and dining facilities will be
open to local patrons as well and such trade will be encouraged as
much as possible.

The dining room will be traditional in theme complete with can-
peting and attractive chandeliers. Its decorations and arrangement
will be planned to remind patrons of the magnificent southern mansions
which are such a proud reminder of southern hospitality and graciousness.

The seating capacity of the dining room will be one hundred and
eightyasix. The dining room will be composed of two levels with stairs
leading to a glassed in dining area which may be used to accommodate
couples and smaller groups. This area will be separated from.the main
dining area by wrought iron railings. Service aisles will be five
feet wide, enabling waitresses as well as the guests to move freely.
The dining room.will not only attempt to recapture the subdued splendor
of a bygone era but also, through a high quality of service, the din-
ing room will attempt to emulate the atmosphere of southern hospitality,
luxury and ease. The menu and quality of food will be in keeping with
the atmosphere.

The dining room will be open for breakfast, luncheon, and dinner.

The menu will be extensive, offering a wide variety of choices to the

l+3

guest. A large iced salad bar displayed in the dining room and attract-
ively decorated, will help to relieve the congestion in the pantry and
should aid in selling especially prepared salad plates. The two out-
side walls will have large glass areas. The balcony will overlook
Escambia Bay and the glass area on the opposite wall will overlodk the
terrace and pool.

The kitchen, shown in.Figure 8, page Uh, will be arranged with
clear aisles and.a maximum of room.allotted in the front area where
the waitresses and busboys will work. A food checker, located between
the two service doors leading into the dining room, will check all food
leaving the kitchen and itemize all checks. The bakery will be located
in close proximity to the production and pickaup area so that the neces-
sary bread, rolls and dessert items do not have to be transported far.
A special refrigerated dessert case will exhibit to the waitresses
what is readily available.

Back of the production area will be the meat, poultry, pantry,
and vegetable preparation area with walkain refrigerators conveniently
located against the wall. The dishwashing area will serve the dining
room.and coffee shop with equal ease. The pan washing, potato, and
vegetable cleaning area as shown on the plan, may appear far from.the
production line, but it seems advisable to the writer to have this
area removed from the food preparation facilities.

The liquor and dry storage will be located near the refrigerators
and near the loading entrance. The receiving clerk will have his

office near the service entrance, enabling him to check everything

 

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TABLE VIII

KITCHEN EQUIRIENT LEGEND

 

 

1.
2.

3.

h.

6.
7A.
YB.
7C.
7D.

8.

10.
11.
lee
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15.
lb.
17.
18.
19.
20.
210
22.

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25.
26.
27.
28.
29.
3o.
31.
32-
33-
3“-
35-

Linen and utility cabinet

Food checker

Two lO—gallon combination urns, one lO—gallon iced tea urn with
cup and saucer dispenser on sides and storage below for ice tea
glasses

Freight elevator

Dessert and pastry case refrigerator

Four drawer electric roll warmer

Service counter containing dishwarmer

Double sink

Interchangeable gas warming pans

Work table

Refrigerator, one side for butter, cream, etc., the other side
for chef.

Roasting oven.~ 2 deck (gas)

Two double deck broilers (gas)

Gas range-shelf above

Griddle-shelf above

Four gas deep fat fryers-shelf above

One 25-gallon and one UO-gallon steam-jacket kettles

Meat block and table

Two sinks-stainless

Meat block 30"x30”

Table-1M feet long - steel top

Meat slicer

Meat grinder

Refrigerator; reach-in

Table

Three sinks

Ice cream.keeper - 8 sections

Table

Ice maker frigidaire

Storage cabinet with sliding doors (for finished goods)
Multiple deck baking oven (gas)

Mixer 60‘+ 30 quart
Bakers' table and bins
Large stainless sink
Bakers' refrigerator
Soiled dishes

Rack and rinse

Di shwasher X Mll-

36.

37-
38.

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no

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Clean dishes

Glasswasher

Two large sinks

Storeroom clerk desk

Steel storage shelves

Aluminum portable bins

Scale

Gas range consisting of grill, range, two deep fryers and two
ovens below.

Two-way refrigerator

Work table with refrigerator below
Cabinet

Table

Potato slicer-french fry.

1+7
coming in as well as going out. The chef's office will be next to the
receiving clerk's and will have a view of the employeey dining room.
Employees will have their own locker rooms and showers.

The laundry will be located next to the kitchen and will do al-
most all of the laundry for the Inn except jackets and pants. Special
additional ironers would be needed to do these items and it would not
be economical to buy the additional machinery for merely those two
items. The laundry will employ three workers and can handle items up
to 100 pounds in one washing. In addition to washing equipment there
will be a thirty inch extractor, a 36"x36" tumbler and two Roel Gas
ironers. The cost of the laundry equipment is estimated at $9,000 in-
cluding installation. The life of the equipment is estimated at twenty
years. Cost estimates of maintaining a laundry for one year indicate
a cost of $28,699.33 including the purchase of linen, initial machinery
expense, bus coat and jacket rental, and labor. Rental of the linen
for one year is estimated at $32,995.09. Allowing twenty years for
depreciation of the laundry equipment and replacing linen each year
for twenty years, the total cost would be $HO2,986.60. In comparison,
renting the same amount of linen for twenty years, would cost
$660,000.80. Assuming that these estimates are correct, which includes
initial expense and installing a laundry, one may save up to $257,81N.20
over a twenty year period.

The coffee shop will have a seating capacity for sixty—eight per-
sons, with booths along the outside walls and tables in the center.

A separate short order kitchen will handle the food production for

the coffee shop.

1+8

The spiral staircase in the lobby will lead upstairs to two cone-
ference and display rooms and a ballroom.which can be converted for
banquets. The ballroom will have a seating capacity of three hundred
persons. A.freight elevator from the kitchen will make it possible to
serve the food quickly and easily. Collapsible tablesand chairs will
be used to enable the waiter to clear the area for dancing in as short
a time as possible.

The conference and display rooms will be thirtyafive feet by fifty
feet. These two rooms will be available as meeting rooms for small
groups and for the use of salesmen in setting up displays.

The housekeeping office will be located on the second floor next
to the elevator and directly above the woman's lounge which is on the
first floor. Linen from the laundry will be transported by using the
kitchen elevator to the second floor. It will be re—distributed from
the housekeeping office where space will be provided for storage of
linen and various housekeeping supplies. There will be a linen stor-
age room at each end of the hotel floors and one centrally located
in the motel units.

The manager's quarters will be located on the second floor direct-
ly above the registration office. They will consist of two bedrooms
and a bath, a living and dining room and kitchen. Since it will be
advisable for the manager to do a certain amount of entertaining, the
author feels that his apartment should be comfortable and in good taste.
The location over the registration office should save many steps for
the manager, since his office is located in the registration office

and most of the business is conducted there.

CHAPTER VI
ESTIMATED CAPTIAL AND OPERATING BUDGET

A recent issue of Tourist Court Journal reports that occupancy
rates for motels in 1959 was 79.25 per cent, an increase of 3.65 per
cent over 1953. During the same period operating and capital expenses
were reported to have also increased.‘ As a result of these changes
net profits decreased from 29.92 per cent in 1953 to 27.86 per cent in
1959.3” These figures bring out the fact that more careful planning
and budgeting is necessary if profits are to be maintained. Many
tourist courts have added restaurants and swimming pools in order to
increase occupancy, without realizing that they are greatly increasing
capital expenses and may be decreasing net profit.35 In the judgement
of the author a careful consideration of both capital and operating
'budgets is necessary before undertaking.a project of the type described
in previous chapters.

It is the purpose of this thesis to present a plan for the develop-
ment of a modern roadside inn to serve as many types of people as
possible, to do it economically and with as many comforts and convenp
iences to the guest as possible. The layout has been planned to keep
construction costs as low as the quality of workmanship and.materials
to be employed will permit. Materials were selected with an eye to

maintenance as well as first cost and appearance.

 

31“Edward F. Chirhart, Tourist Court Occupancy Increased During
1959, Tourist Court Journal, XVIII (1955), 21.

35Ib1d., p. 22.

50

Business potential has been estimated on the basis of the best
statistical information collected and on a conservative basis. Ex-
penses have been estimated at a figure above normal in order to allow
for a margin of safety in the operation of the business.

All estimates for items in the capital budget were collected from
experienced, reputable, sources and.are based.upon the plans contained
in previous chapters and an outline of specifications supplied by the
author. They have been checked against information collected from
Motel operators and reference materials and no serious discrepancies
have been found. In collecting estimates for the cost of building
construction, the plans shown were presented and further details dis-
cussed fully with various construction companies, whereby they arrived
at the estimated building cost. It is clear, however, that these
estimates are not as reliable as bids on the work involved which it
did not appear reasonable to ask for at this time.

The source for estimates in both.the capital and operating budp
gets is given in the supporting statements for the budgets. In the
main, items in the expense section of the openating budget are based

upon generally accepted percentages of income.

TABLE VIII

ESTIMATED CAPITAL COST.

51

 

 

:33 r”

5.

LAND
SITE IMPROVEMENT

A. Landscaping (including
walks and drives)
B. SWimming Pool

BUILDING CONSTRUCTION

A. General Contract
B. Electrical & Mechanical
C. Elevators

FURNISHIIIG a. EQUIHcmT

A. Living Units
B. Club Area

C. Kitchen

D. Laundry

MISCELLANEOUS ITEMS

$ M0,000.oo
M91980.00

 

321,36h.00
101,8uo.oo
28,000.00

60,850.00
68,856.00
32,910.00

91000.00

TOTAL CAPITAL COST

$ 50,000.00

89,080.00

M51,20u.00

171,616.00

12,000.00

 

$773.900-00

 

'See following pages for budget support.

 

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52

SUPPORT FOR CAPITAL COST BUDGET

1. LAND
The value of this property is estimated at a miniumu of $50,000
based.upon.actual offers to purchase the land. ‘This property is owned

by the author's family.

2. SITE MPROVEMENT

A. Landscaping: The drives on the site cover approximately

 

18,000 square yards. Before this space can be black topped, coral
should be used as a foundation. The going rate for coral in this

area is about fifty cents per square yard or $9,000 for 18,000 square
yards and asphalt for this area is estimated at $21,600. The cost of
concrete walks is about three dollars per square yard. There are about
8H3 square yards of walks involved which will cost $2,529. The re-

maining $6,871 will be used for shrubbery and landscaping in general.36

B. Swimming Pool: Public swimming pools in the State of Florida

 

have been built at a cost of about $12.00 per square foot of water area.
This cost includes excavation, concrete work, plumbing, mechanical and
electrical equipment. The proposed pool has “,909 square feet of water

area. The estimated cost is $49,080.37

 

36Personal communication from Wright Construction Company,
February 21, 1956.

37Personal communication from A. B. Cothran, Elgin Softner Cor-
poration, Detroit, Michigan, February 9, 1956.

53
3. BUILDING cozzsmuc'rxon

A. General Contract: The items under general contracting include

 

the actual building construction, heating, wiring and interior finishp
ing. Estimated costs for this work.were secured from the Tandenburg
Construction Company38 and are as follows:
(1) Motel - $58,752.00
(2) Hotel - $135,252.00
(3) Lower Club Area, which includes the Lobby,
Cocktail Lounge, Dining room, Kitchen, and
Coffee Shop - $83,200.00
(M) Upper Club Area, which includes two conference
rooms and the ballroom.- $44,160.00

Total General Contracting - $321,364.00

B. Electrical and Mechanical:39

(1) Air conditioning will cost $h00 per room or
ninety-six rooms totaling $38,N00. These air conditioning units also
have hot air units, but since the heating was figured in under the
General Contracting, no additional charge is needed. To air condi-
tion the Club area will cost $8,000.

(2) Each complete bathroom installed will cost
$H75 or $u3,000 for ninetyatwo units. An additional $110 is charged
for each isolated fixture. There are thirty-four isolated fixtures
in all costing $3,7“9.

(3) Floor drains, grease traps, sanitary sewers

and sinks for the kitchen will cost $3,000. Mechanical wiring for

 

38Supplied by vandenburg Construction Company in an interview,
January 23, 1956.

39Supplied by Branz, Diehl, Lohman, Inc., in an interview,
January 2“, 1956.

5“

the Club area is estimated at $2,500. Outside sewers were figured

to cost about six dollars a foot or $25,000. Miscellaneous items such
as two electrical water dispensers will cost about $400 and an auxil-
iary hot water heater in the kitchen about $300.

Total Electrical and Mechanical Cost — $101,8u0.00.

C. Elevators: There are two service elevators and one freight

elevator estimated to cost $28,000.“0

it . TURN I SH IN GS AND EQUI RIEI-‘T

A. Living Units:b"l

 

 

Item Number Price Total Cost
Double Beds. . . . . . . . 177 $ 75.00 $13,275.00
Sofa Beds . . . . . . . . 8 175.00 1,200.00
Comb. Desk:& Dresser . . . 92 75.00 6,900.00
Television Sets . . . . . 92 125.00 10,500.00
Baggage Racks‘- Large. . . 91 20.00 1,820.00
Small. . . 2% 15.00 360.00

Chair for Desk . . . . . . 92 15.00 1,380.00
Occasional Table.. . . . . at 20.00 “80.00
With Lamp . . . . . 2n 10.00 240.00

Easy Chair . . . . . . . . 160 60.00 9,600.00
Settee . . . . . . . . . . 2n 100.00 2,u00.00
Standing Reading Lamp. . . 68 20.00 1,360.00
Night Table . . . . . . . 89 25.00 2,225.00
Draw Drapes . . . . . . . 9“ 50.00 4,700.00
Full Length Mirror . . . . 89 20.00 1,780.00
Paintings Two Per Room . . 186 5.00 930.00
Coffee Table . . . . . . . 68 25.00 __1,700.00
$60,250.00

 

ThoPersonal Communication from Westinghouse Electrical Corpora—
tion, Elevator Division, January 2”, 1956.

ulReview of Current Furniture Catalog.

B. Club Area:

Dining R0 0m:
Tables

Chairs

Coffee Shop:
Tables
Chairs
Booths

Ballroom:
Tables

Chairs

Size

5'2"dia.

u:
3:
2'x2'6"

3H"x3u"

60"
glx30fl

Cocktail Lounge:

Tables
Chairs
Booths
Bar

18"

Conference Ems:

Tables
Chairs

Lobby:
Furniture

Carpeting:

83x30"

Price

$ 2E.00
22.00
21.00
15.00
30.00

Number
W

11
11
15
186

12
10
300

15
30
1M

55

 

 

 

 

 

 

 

Total Cost
$“’1Eh.00
2M2.00 "
251.00
225.00
5,580.00
$6,h224g;
$ “32-99
1,080.00
2,171.00
‘5 68 .
$ 396.00
220.00
2,160.00
$2,116.00
$ 600.00
900.00
3,286.00
10,000.00
‘“$14,786.00
$ 176.00
21550000
§2,126.00
$2,500.00

Dining Room, Halls, Lobby, Registration Office, Conference
Rooms, and Cocktail Balcony - 2913 sq. yd. @r$l2.00 sq. yd.

 

5&2

Total Club Area

§34IQ56.00

$68,856.00

Supplied by Capital Supply Company and Mr. William Garrison,
in an interview, February 3, 1956.

1+3
0. Kitchen:

 

56

 

Quantity Description Total

2 Ten Gallon Combination Urns - Gas $1,100.00
1 Ten Gallon Ice Tea Urn 00.00
1 6'130" Urn Stand 75.00
1 Cup and Saucer Lowerator 650.00
1 Dessert Case Refrigerator 6‘x2' 1,200.00
1 Steam Table 8. Plate Warmer — Sinks 2,900.00
1 Refrigerator 1,200.00
1 Roasting Oven 2 deck. 550.00
2 Broilers 800.00
1 Gas Range 350.00
1 Griddle 200.00
M Fryers 1,200.00
1 Kettle 25 Gallon steam 50.00
1 Kettle N0 Gallon steam 0.00
1 Meat Block and Table 275.00
1 Meat Block 85.00
1 Table - Steel Top 975.00
1 Meat Slicer 75.00
1 Meat Grinder 75.00
1 Refrigerator 1,200.00
1 Ice Cream Keeper 1150.00
1 Table 200.00
1 Ice Maker Frigidaire 750.00
1 Storage Cabinet - Stainless 900.00
1 Bake Oven 700.00
1 Mixer 1,150.00
1 Bakers' Table and Bins 650.00
1 Refrigerator 1,000.00
1 Set Dish Tables and Sink 1,500.00
1 Dishwasher mu 1,900.00
1 Canopy Pant Leg 375.00
1 Glasswasher 1,100.00
2 Tables 200000
il- Bins WOOD
1 Scale 150.00
2 Ranges 700.00
2 Fryers 600.00
1 Refrigerator 1,200.00
1 Table & Refrigerator Below 1,500.00
1 Cabinet 900.00
1 Table 550.00
1 Potato Slicer French Fry 60.00
1 8'x8'x8' walkhin Refrigerator 800.00
2 6'x8'x8' walkhin Refrigerator 1,800.00

Total Kitchen Equipment $32,910.00

 

Th3Written Communication from Great Lakes Hetel Supply Company,
February 7, 1956.

57

D. Launggz:
The laundry is equipped to handle 1000 pounds a day. The amount

of laundry used per day was tabulated and its weight amounted to 901

 

pOIlndS 0

Want .....Total

1 - 100# Wheel-washer $3000.00

1 - 30" extractor 1200.00

1 - 36x36" tumbler dryer 800.00

2 - Roel Gas Ironers 3000.00

Installation 1000.00 MM
Total $9000.00

5. MISCELLANEOUS ITEHS:
An estimated $12,000 is allotted to cover such expenses as table

service, trays, pots and pans, and other such items.

m'I‘Supplied by Mr. C. A. Harger, Manager of Michigan State Univer-
sity Laundry, East Lansing, Michigan, in an interview, February 8, 1956.

TABLE IX

s
ESTIMATED ANNUAL OPERATING- BUDGET

INCOIJE: .
1. Rentals
2 Food,

3. Beverage
M. -T0ta1 Income

OPERATING AND ADHINISTRATIVE EXPENSES:

5. Salaries and wages

60 Raw FOOd t

7. Beverage

8. Repairs & Maintenance

9. Linen
10. Utilities
11. Advertisingt& Stationary
12. Cleaningt& Supplies

13. Telephone & Telegraph
1 . China & Glassware
15. Insurance
16. Payroll Taxes & Insurance
DEPRECIATION:

17.
18.

Reserve for Building Depreciation
Reserve for Equipnent Replacement

TAXES:
l9.
DEBT SERVICE:

Real Estate & Property Tax

20. Interest & Principal
TOTAL EXPENSE

ESTIMATED ANNUAL NET PROFIT

‘1'
;—’

$20M,98M.00

399.675-00
101,000.00

$199,298.00
159,870.00

33.330-00
35.232-95
13.699-33
56,uu6.72
21,16 .77
10,58 .85
10,58M.85

7,056.60
19,11 .78
10,58 .85

9,029.08
12,871.23

17,6u2.08

58

$705.659-00

 

37 s 263‘ 29#

 

mamas 3
$ 56,886.62

 

I"See following pages for budget support.

59
SUPPORT FOR OPERATING BUDGET
It should be noted that percentages on advertising, utilities,
etc., are small and relatively less important than those
estimates or items built up by the author. In comparing the
percentages of these items with figures based on hotel operations
from a statistical review on Trends in the Hotel Business, 1953,
by Harris, Kerr, and Foster, it should be noted that their per-
centages on the same items run even lower than those estimated
by the Tourist Court Journal and those used by the author.
111002.sz
lo Renta-IS:
In 1954, the average occupancy for tourist courts for the
New England, Middle and South Atlantic States was 83.65 per cent and
the average number of guests per room was 1.91 per cent.u5 The author
feels that since the average occupancy in that area is 83.65 per cent,
an occupancy figure of seventy eight per cent would be a conservative
estimate, especially since the expected annual occupancy for 1955 and
it
1956 seem to be even higher than the 195” average. 6 Although the
rooms at the MoHo Inn can accommodate four persons, the author has
used two guests per room.as the room average, which is slightly higher
than the given average of 1.91 per cent.
In many motels where room rent is the only income, average
occupancy must be closely compared with construction costs to arrive
at a room rental that will pay for the construction and show a profit

as well. Such is not the case with a resort type operation Where rev-

enue also comes from food and beverage sales. In that case, a new

 

”5Edwsrcl F. Chirhart, 92. cit., p. 21.

ubIbid.

60
restaurant or bar customer may be more important than the economic
room rent.u7 The average rate in Pensacola for room rental for two
people is eight dollars.“8 Therefore this figure was used as an
average to work out the estimated income.

(90 units x 365 days I 0.78 average occupancy @ $8.00 average daily

rate = $20H,984.00) .

2. Food:

 

To figure the estimated food sales, it is first necessary
to estimate the average check and the average number of persons served
each day. 'These estimates are as follows:

Capacity Average Persons Average Plate Daily Total

Dining Room 186
Breakfast 120 $1.00 $120.00
Lunch 150 1.50 225.00
Dinner 320 2.50 800.00
Coffee Shop 68 75 .75 75.00
Catering 300 75.00

$W
These figures are considerably below the expected sales. Esti-
mated occupancy is an average of 140 guests each day, it is assumed
that at least 120 will eat breakfast. Much local trade is expected

at lunch and dinner, so 150 and 320 seem to be low estimates.

($1.095 I 365 days ==$399,675.00)

Hours g£_Operation:

Dining Room - Breakfast 7:30 AM - 10:00 AH
Luncheon 11:30 AM - 2:30 PM
Dinner 5:30 PM - 9:00 Rx!

Coffee Shop - 10:00 AM - 5:00 PM and 8:00 :A - 12:00 PM.
1”Funaro, g2. cit., p. 199.

 

I48Chicago Motor Club, AAA Accommodation Directory, 1955, p. 192.

 

61
Catering will be open only by bookings. Because of the large
ballroom and conference facilities, the catering department should do

a great deal more than the estimated $75.00 a day.

3. Beverage:
The Cocktail Lounge is estimated to do at least a $101,000.00

in sales per year. Again, this figure seems low with an average of
about $275.00 per day. The Cocktail Lounge will offer indoor and out-

door dancing and serve beverages to the dining patrons as well.

4. Total Income:

Rent $20U,989.00
FOOd 399,675.00
Beverage 101,000.00

 

$705,659.00 (estimated yearly income)

OPERATING AND ADMINISTRATIVE EXPENSES:
5. Salaries and Wages:
Employees will be paid every two weeks, but since the
author wishes to borrow enough money to operate for eight weeks, the
following payrool summary is made out for an eight week period. These
wages are based upon the going rate in the Pensacola area as determined

by the personal investigations of the author.

 

JOB N0. EMPLOYED PER WEEK EIGHT WEEKS
Baker 1 $ 87.50 ' $ 700.00
Bar Maids 3 50.00 1200.00
Bartender 3 80.00 1920.00
Bus Boys & Hops 6 75¢per hr. 2268.00
Cashier 2 65.00 1040.00
Chef 1 112.50 00.00
Assistant Cooks M 75.00 2 0.00

62

 

JOB N0. EMPLOYED PER WEEK EIGHT WEEKS
Desk Clerk 2 $ 75.00 $1200.00
DishwaSher 3 60.00 Vluu0.00
Chief Engineer 1 90.00 720.00
Engineers 2 70.00 1120.00
Food Checker 1 70.00 560.00
Chief Grounds Keeper 1 85.00 680.00
Grounds Keeper 2 70.00 1120.00
Hostess 1 75.00 600.00
Houseman 2 60.00 960.00
Housekeeper l 87.50 700.00
Laundry 3 “0.00 960.00
Maids 10 ”0.00 3200.00
Manager 1 125.00 plus 1000.00
Assistant Manager 1 110.00 880.00

(Catering)

Night Auditor 1 85.00 hho.oo
Pantry Girl 2 60.00 960.00
Pot washer 1 50.00 Moo.00
Receiving Clerk 1 70.00 560.00
Secretary 2 65.00 10u0.00
Switchboard 2 65.00 10uo.oo
Waitresses 15 35.00 h2oo.00

75 $33208.00

($33,208 x 6 months = $199,298 Annual Salaries)

Labor cost is a little over twenty—six per cent of the total
sales. In hotels, labor costs run about thirty-five per cent while

1+9

many motels run as low as fifteen per cent of the gross sales. The
average salaries and wages for tourist courts in the New England,
Middle and South.At1antic States is 2h.35 per cent. For the entire
United States the average was much lower at 16.60 per cent.50 The
relatively high labor cost in these regions is due to the high priced

areas, such as Miami and many of the coastal regions. Therefore, the

 

in9Funaro, 22. 913,, p. 9.

50Chirhart, 229 933,, p. 21.

63
author feels that the twenty-six per cent labor cost is about right
for the Pensacola area, where the HoHo Inn would serve both as a

Motor Court and as a Hotel.

6. §§!_§ggg;
Raw food cost can be estimated by taking forty per cent of
the gross sales. Eany places operate under the forty per cent figure,
but this is considered a good basis upon which to base an estimate.

($399,675 x 0A0 = $159.570-00)

7. Beverage:

The beverage cost is estimated by taking thirty—three per
51

cent of the gross beverage sales.

($101,000 x 0.33 = $33,330.00)

8. Repairs and Maintenance:

 

Total Sales times five per cent

($705,659 x 0.05 = $35,282.9e)52

9. Lines;
The prices on linen were given to the author by Mr. C. A.
Harger, manager of the laundry at Michigan State University. Since
the MoHo Inn will have its own laundry, enough linen was bought for

four turnovers. It is estimated that the linen will last for one year.

 

1

5 Supplied by Mr. Joseph O'Leary, Professor of Hotel, Restaurant
and General Institutional Management at Nichigan State University, in
an interview February 8, 1956.

521bid., p. 21.

6n

 

 

ITEM PRICE QUAHTITY TOTAL
Sheets $2h.oo Dozen 118 Dozen $2832.00
Single 20.29 Dozen 8 Dozen 106.60
Bath Matte 12.50 Dozen 31 Dozen 387.50
Pillow Cases n.3o Dozen 120 Dozen 523.20
Nylon Shower
Curtain 8.00 Each 100 Each 800.00
Mattress Pad 3.00 Each- 200 Each 600.00
Blankets 6.60 Each 200 Each 1300.00
Pillows 5.00 Each 380 Each 1900.00
Bed Spreads 5.16 Each 200 Each 1830.00
Huck Towels 3.1M Dozen 62 Dozen 19h.68
Bath Towe1s 12.30 Dozen 62 Dozen 762.60
Napkins n.10 Dozen 130 Dozen 533.00
Table Cloths
Small 27.00 Dozen 20 Dozen 5&0.00
Large 32.00 Dozen 15 Dozen 980.00
Long 53.25 Dozen 3 Dozen 159.75
Wash Cloths 2.50 Dozen 80 Dozen 200.00
$131E9-33

Because another type ironer is needed in ironing bus coats

and pants, the MoHo Inn plans to rent the coats and pants.

Labor

cost for the laundry is included in the Salaries and wages Schedule.

Estimated Rental Cost
Estimated Linen Cost

10. Utilities: (8 per cent of total income)53

$705,659 x 0.08 = $56,M46.72

$ 550.00
_131”9-33
$13o99.33 Annual Cost

11° Advertising and Stationary; (3 per cent of total income)51+

$705.659 X 0.03 = $21.1b9-77

 

53

Chirhart, op, cit., p. 21

51‘FIbid.

12.

13.

1h.

15.

16.

17.

18.

65
Cleaning and Supplies: (1.5 per cent ot total income)55
$705,o59 x 0.015 = $10,5su.e5
Telephone and Telegraph: (1.5 per cent of total income)5b

$705,659 x 0.015 = $10,58u.85

>57

China and Glassware: (1 per cent of total income

 

$705,659 x 0.01 = $7,05o.oo

1222222223 (2 Per cent of total income)58

$705,659 x 0.02 = $1u,113.7s

Payroll Taxes and Insurance: (1.5 per cent of total income)59

 

$705,659 x 0.015 = $10,58N.85

Reserve for Building Depreciation: (2 per cent of building

cost)60 ($451,20N x 0.02 = $9,029.08

Reserve for Eguipment Replace ment: (7.5 per cent of furnish-

ings and equipment)61 $171,616.41 x 0.075 = $12,871.23

 

55Ibid.

56Ibid.

57Ib1d.

58Ibid.

591b1d.

b0James C. Downes, Jr., Real Estate Uanagement, Chicago, (Institute
of Real Estate Management, 1950), pp. 394-408.

61

 

Ibid.

66
'2
19. Real Estate and Properteraxes: (2.5 per cent of total income)b

$705,659 1: 0.025 = $17,692.08

20. Debt Service:

 

host insurance companies will make a loan on such property
'np to sixty per cent of the total capital cost at five per cent in-
terest for ten years which can be renewed for another ten yeah-3.63

To determine the amount of interest and principal which must be paid

on the loan, thejfollowing procedure is used:

 

A. Total Capital Cost $773,900
60% of Capital Cost x0.60
Amount of Loan $u64,340.00

If an agreement is reached penmitting the payee to submit
twenty equal annual payments covering principal and interest the schedule
may be set up as an annuity and the following conditions would prevail:

Principal Amount $464,300

Interest Rate 5%

Terms 20 years

Factor (from annuity table) 0.0802926
$464,340 x 0.08025 = $37,263.29 Annual Payment.

If a payment plan is used which does not equalize the size
of the payments over a twenty year period the first annual payment would
be $46,u3u.

$464,434 . 20 = $23,217 Principal
h64,#3h x .05 1= 23,215 Interest
$46.43
The last annual payment would be $2H,377.85 or only a little more than

half of the first.

 

befihirhart, 92. _c__i__t.., p. 21

63Supplied by Auto Owners Insurance Company, Lansing,Michigan,
in an interview, February 21, 1956.

67

$23,217.00 Principal

$23,217 x 0.05 =

1,160.§5_Interest

$24.377-85

The insurance company agreement states that the owner or

owners must put up their forty per cent of the capital cost first and

then the company will cover the remainder.

$773.990
.. #614,340

 

$369530

B. Author's Capital:

$ 50,000
100,000
150,000

to be raised by the author.

Property
Family
Interested Investor

100,000 Personal Friend
$400,000
- 310,000 Necessary for Construction

 

$ 90.000

C. WOrking Capital:

(“0% of Cost)
for operating capital.

There is $90,000 left as a contingency for operating ex-

penses.

operation until it is established.

This contingency fund will be set aside to help carry the

The sum provided is adequate to

carry debt service payments on the bank loan for two years and supply

working capital for the early period of the operation.

Funds supplied by the author and.his family may be carried

in the early years of this operation without interest or principal

payment.

Through these arrangements it should be possible to carry

the operation through its developmental period.

ANNUAL NET PROFIT:

The estimated net profit, before deducting the debt service, on
the total capital investment is slightly over twelve per cent. This
represents the estimated profit on the total original investment. A
twelve per cent return appears to be a safe margin of return for
loaning purposes. The owners net profit based upon only his private
investment is estimated at eighteen per cent. Since the owner's
return for labor and management is already included under the salary
expense, the eighteen per cent is the entire interest on the owner's
equity, making a very high return.

In comparison, the net profit in 1954 for tourist courts in the
New England, Middle and South Atlantic States is 18.80 per cent. But
8.49 per cent is the interest on the owner's equity and 10.31 per cent
is the owner's return for labor and.management.

The cost of building a hotel today has been estimated at $10,000
to $15,000 per room, the cost of motels at about half this cost.65 In
comparison, the MoHo Inn will cost approximately $9,600 per unit, in.
cluding all capital cost. It appears that estimated costs for the
Echo Inn fall within a range which is reasonable compared with these
figures.

Choosing the equal annual payment plan for debt service payments
will enable the author to have more working capital available during

the first few years of operation, thus providing a cushion during slack

 

bhChirhart, 92y 9&33, p. 25.

65Baker and Funaro, gp, cit., p. 119.

69
periods. Since the author's portion of the total investment comes from
family and private investors, a flexible repayment plan can be worked
out, whereby a certain percentage of the profits will be kept to main.
tain enough working capital on.hand for an economical operation, and
the rest applied toward this portion of the total financing plan.

Since income was conservatively estimated, and expenses were projected
somewhat higher than normal, the eighteen per cent return on personal
investment seems to be a sound basis for constructing such a road-

side inn.

CHAPTER VII
CONCLUSIONS

Before investing a large sum of money in a new business venture,
the prudent business man should, in the writer's opinion, investigate
all the available facts, weigh the good points against the bad ones,
and try to be as sure as possible that the money is going into a sound
operation through which he will obtain the greatest return with the
least possible risk.

The author feels that plans for the construction of the MoHo Inn,
its financing and operation, are based upon sound principles and afford
an opportunity for a safe investment. The following points support

this point of view:

(1) Demand for Proposeleacilities:
0n the basis of extensive personal investigations in the L
area and the data submitted in earlier chapters the author believes
that there is an unfilled need for facilities of the type proposed in

and near Pensacola.

(2) Stability 9£_the Area_Under Construction:
Pensacola is a growing community supported by large govern.
ment military stations, expanding industries, commerce, the tourist
and vacation trade. It has a natural deep water harbor, which allows

Pensacola to trade with the world. It also has excellent educational,

71
religious, and permanent housing facilities. Opportunities for perm-

anent employment are expanding.

(3) Practicability:g§_the Plan Proposed:
The type of operation includes facilities for several
types of patrons and can handle most of their desires, whether they
be interested in a motel or hotel room, a banquet, a meal, a place

to display merchandise, of just an evening of entertainment.

(h) Price Structure g£_Proposed Operation:

 

Prices proposed for the MoHo Inn are the same as those for
many other roughly comparable establishments in the Pensacola area.
In some respects the proposed Inn offers much more than most other

operations charging the proposed rates.

(5) Income:

This study indicates that the business will definitely be
available. Hotel operators interviewed by the author report that the
number of people looking for accommodations in the Pensacola area
exceeds those available. There is also an unfilled need for banquet
facilities, fine dining establishments, and recreational facilities.
The operating budget, estimated conservatively from the standpoint of
the operator, should produce a net return of approximately eighteen

per cent on the author's original investment.

72
(6) Financing:

The proposed financing plan provides for the repayment of
the bank loan in twenty years. There is a wide margin of net profit
after all operating costs, including debt service, are met.

Based.upon an intensive study of the development of a roads
side inn of the type described on the site designated near Pensacola,
Florida, the author believes that this is a financially sound project.
It is his intention to proceed with this plan essentially as outlined

Which will involve the investment of all funds available to him.

BIBLIOGRAPHY
Publisr ed ‘faterial

American Automobile Association, Accommodations Directory, Pensacola
(195"~55). 150 PP-

Baker, Geoffrey, and Burno Funaro, Hotels, New York: Reinhold Pub—
lishing Corporation, 1955, 264 pp.

Chicago Motor Club, Pensacola, What to See in the Southeastern States,
Washington D. 0.: 1954-55, pp.'?5_€(a.""

Chirhart, E. F., Tourist Court Occupancy Increased During 195M,
Tourist Court Journal, 18 (July 1955), pp. 20-28.

Dana, Author 3., Kitchen Planni_g For 9; ntity Food Service, Harper
and Brothers, Publishers, New York: 19 9, pp. 229.

Dolph Map 00., Inc., "ap_of Pensacola and Vicinity, Ft. Lauderdale,
Florida, 1954.

Downes, James 0., Jr., Real Estate Efanagement, Chicago: Institute of
Real Estate Management, 1950.

Fanald, Lon, Motel Laundry Pays Off Five Ways, Tourist Court Journal,
19 (October 1955), pp. 70-72.

Fisher, E. M. and Robert M. Fisher, Urban Real Estate, New York:
Henry Holt and Company, 1954, 502 pp.

Harris, Kerr and Foster, Trends in the Hotel Business, NBW'YOIk:
Harris, Kerr, Foster and Company, 195H, pp. lJMY.

 

 

Love, Harry Barclay, Establishing and Operating a_Year—Round.fiotor
Court, U. S. Department of Commerce, 1945.

McIntosh, Robert W., Location Criteria for Overnight Tourist Business
Thesis submitted to the Conservation Department of: dichigan
State College, East Lansing, Michigan, 19N9, pp. 120.

 

195“ Census of Business, U. S. Department of Commerce, Bureaus of
the Census, Washington, D. C.

 

Pensacola Chamber of Commerce, Pensacola, Florida Trade_Area,
Pensacola, May 1955, pp. 9.

71+

Pensacola Chamber of Commerce, Statistical Review, Pensacola, 1955,
p. N.

Pensacola Engraving Co., Inc., A, The Pensacola Eisitor, Pensacola,
Florida.

State Roads Department of Florida, lQfiN-gflrHour Annual_Average Traffic
Flow, Tallahassee, Florida: 1954.

Statisfical Abstract Supplement, A_- County and City Data Book 1952,
Hashington, D. 0.: U. S. Government Printing Office, 1953, pp. 608.

Weimer, A. M., and Hoyt Homer, Principles of Urban Real Estate, New
York: 19u8, The Ronald Press Company, pp. 512.

Written Communications

Chamber of Commerce, Pensacola, Florida.

Blgin Softener Corporation, Mr. A. B. Cothran, Detroit, Xichigan,
February 9, 1956.

Great Lakes Hotel Supply Co., Detroit, Xichigan, February 7, 1956.

State Road Department of Florida, Tallahassee, Florida.
Personal Interviews

Branz, Diehl, Lehman, Inc., Lansing, Michigan, January 24, 1956.
Capital Supply Co., Lansing, Hichigan, February 3, 1956.

Garrison, William, Manager of Kellog Center, Michigan State University,
East Lansing, Michigan,February 3, 1956.

Harger, C. A., Manager of Michigan State University Laundry, East
Lansing, Michigan, February 8, 1956.

Horticultural Department, Michigan State University, East Lansing,
Hichigan, January 11, 1956.

Gunn, Clare A., Extension.Specialist, Land and Water Conservation,
Michigan State University, East Lansing, Michigan, fiarch 5, 1956.

75

O'Leary, Joseph, Department of Hotel, Restaurant and General Institup
tional Kanagement, michigan State University, East Lansing,
Michigan, February 8, 1956.

Vandenberg Construction Co., East Lansing, Michigan, January 23,

1956.

Telephone Intervievs

 

Auto Owners Insurance Co., Lansing, Richigan, February 21, 1956.

He Carty, Commercial Refrigeration, Lansing, Hichigan, February 21,

l95b.

Westinghouse Electric Corporation, Elevator Division, Lansing, hich—
igan, January 24, 1956.

Tright Construction Co., Lansing, Hichigan, February 21, 1956.

 

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