Location, Location, Location
Lucid is purchasing a prime piece of real estate in the heart of downtown Fort McMurray. This 23,374 square foot development site is zoned C-5 “Central Business” which allows for the potential redevelopment of approximately 70,000 square feet of buildable area. The site is incredibly well located with not only exposure to the highway, but also immediately adjacent to an intersection off of the highway giving excellent access to and from the site. It is the intention of the Corporation to redevelop the site in to a short to medium term accommodation building, taking advantage of the incredibly busy hotel market while also catering to the corporate relocation and temporary accommodation markets within the greater Fort McMurray area.
As an interim cash flow strategy, Lucid intends to renovate and rebrand the existing concrete block motel to be rented as short to medium term furnished accommodations. With the resurgence of the Fort McMurray economy, accommodations like this are in short supply. By facilitating this interim cash flow opportunity, Lucid can create interim cash flow to offset borrowing costs until the redevelopment of the site is ready to commence.
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PROJECTED NET ANNUAL INCOME FOR THE INTERIM SUITES
- A. PROJECTED AVERAGE NIGHTLY ROOM REVENUE
- $150
- B. NUMBER OF ROOMS
- 42
- C. PROJECTED OCCUPANCY RATE
- 65%
- D. PROJECTED OPERATING COSTS
- 249,500
- E. PROJECTED SALARIES AND LABOUR
- 230,000
- F. Total: F = (A x B x C x 365) – (D+E)
- $1,015,175