Compute the Anticipated Room Rate Using the Rule-Of Thumb, or Building

Essay

Compute the anticipated room rate using the Rule-of Thumb, or Building Cost, Rate.
GIVEN: Number of rooms 800
Average Occupancy Percentage first two years 60%
Cost of erecting the building $64,500,000
Cost of acquiring the land $8,000,000
Legal costs to incorporate $500,000
Upfront costs to lease furniture and TV's $100,000
Landscaping costs $1,250,000
Cost of tearing down the old structure $750,000