Before we had this document it wasn’t exactly clear which road to take or which starting point would be the most profitable for our hotel. Having this extremely detailed information at hand we were able to make precise calculations for the two hotel locations that we had in mind, Puerto Rico and Hawaii. What we managed to find out is that choosing one over the other would generate three times more profit after taxes. We took help from hotel consultants who were pushing our boundaries in terms of what needed to be included in the calculations, even insisting that we run everything through a stress analysis. Additionally, he reminded us to include things in the budget that are easy to overlook, such as replacing white towels, linen, and broken glass regularly.

One of the highly important goals of Innovasis Hotels is to be self-sustained and generate all the necessary electricity through our solar panels. We had to calculate the amount of electricity needed to power everything and how much this would cost per year. We researched the cost of electricity per year with the help of R&D Labs which we hired on a consulting basis.

We even looked at meteorological research data for our potential locations, finding out information about the amount of sunlight and rain these locations get on average.

When we compared the electricity cost between our two potential locations, we found out that for 3.5–7 GWh per year, the Puerto Rico location would cost us between 0.8–1.5M USD, while the Hawaiian location would cost roughly 1.7M USD. The differences in costs between the locations showed similar results across the board. By looking at all the calculated data in the document, we had enough clear information to help us make a final decision on where to build our first hotel. Hello, Puerto Rico!

As for the amount of land needed to house the solar panels, we requested a calculation based on 7.5 GWh electrical consumption per year and found that 9.5 Acres of land is required.

However, a significant amount of solar panels will be installed above the car park.

Another important goal for us is to pay great salaries. In order to calculate salaries correctly, we had to hire consultants that specialize in estimating salaries for the specific locations. We found out that we will be able to pay salaries that are higher than those paid by the biggest, most luxurious hotels. We even include health care and other great benefits for our employees. This will help make sure that we attract the best people to come work with us, making the guest experience even greater.

With all these costs calculated, one more amazing thing became clear. The numbers show that we will be able to reach an Internal Rate of Return (IRR) of 19%!