Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1910-06-14
A Revival Of Interest in
the Enterprise
VERY LITTLE MORE NEEDED
Banks of Phoenix Endorse
Project BY Accepting the
Hotel Company's Bonds.
What Has Been Quietly
Taking Place

There Is going To be new Hotel
Adams on the site of the old one if
only $G5.00O more can be raised for
the building of first class S2j0, ,000
structure
Not much has been heard Of the
hotel business lately. The committee
which was appointed soon after the
fire. raised subscriptions To the
amount of $4,000 At the request
Of Mr.. Adams who became engaged in
other matters. then the committee
ceased work until he could prepare
an estimate of the profits which
might be expected from such hotel
as was proposed.
Also about that time there was talk
of hotels in different parts of the
town and Mr. Adams suggested that
little time would be lost in waiting
To see whether any of these hotel
projects were likely to develop be-
yond the imaginary stage.
1t soon became evident that if
there was to be a first class hotel
soon it would be built on the site
Of the Hotel Adams.
The banks Of Phoenix We're natur-
ally interested in the success Of a
hotel project but at first they seemed
To be unable to financially further it.
Under the law the national banks
could not become subscribers To the
stock They found though, there was
another way to help. The law did
not prevent them from holding the
bonds of a hotel company
Accordingly an arrangement has
been made under which the two nat
iOnal banks and the Valley Bank will
take ten year, 6 per cent bonds To
the amount of $4,000, divided as fol-
lows: Valley Bank, 10000; Phoenix
National. $4,000: National Bank of
Arizona. $4,000. The Valley. which is
not restricted by the national banking
laws will also take stock to the
amount of $4,000. This, with the
amount of stock Mr.. Adams proposes
to take. there is in sight S1S5.OO0.
1t may be stated here that the fire
loss Of Mr.. Adams has been adjusted
and paid in full. $4,000.
Here follows a statement by Mr.
Adams of the business of such ho-
Motel as it is proposed to build:
Rooms that would be occupied of
the 17O rooms the hotel would have:
September. 100 rooms; October, 120
rooms; November. $50 rooms; Decem-
ber $50 rooms: January. 10 rooms;
February, 17O rooms; March. 40
rooms; April 13O rooms; May. 100
rooms; June. 30 rooms; July so
rooms: August, so rooms; total 1870
rooms.
This would give 122 as the average
number OF rooms occupied 122 rooms
z . . 4
give a revenue of S274.5O per day.
This would make the gross income
from rooms for one year s1O0,1s2 so.
Operating Expenses.
office salaries, per month for EN-
ployes, $5S0.00; hotel rooms per
month for employees, $265.OO: cleo
uic light per month. 100000,
Laundry per month for employees,
$4,000; ice. fuel, soap, etc, $4,000.
Monthly expense. $13.e5.OO; yearly eX-
pense. $l6.3SO.OO; gross yearly rev
enue. 500. 1920; gross yearly ex-
pense. sl6,3S0.00; net yearly profit.
3.sl25 so.
The profits arising from the rental
Of the store rooms on the first floor
win pay the ground rent and the in
surance and taxes, leaving all of the
profits of the hotel and everything
connected with it as dividends for the
stockholders The above figures are
estimates on the receipts and profits
of the rooms of the hotel Any prof
its arising from the dining room and
bar are not included.
The foregoing statement to the
committee is followed by another
showing the estimated receipts and
profits of the old hotel for the year. if
il had had 40 instead of ninety rooms.
The average daily use of the rooms for
the various months is found by an es-
innate of the number who were turned
away for want of accommodations
The second estimate follows:
Average Daily Use of Rooms for Diff
rent Months.
September. IS: October. 100: No
vember. 1870; December. 140: January,
$50: February. 100: March. 16O April.
l@O: May. 80; June so; July. 60; Au-
gust. 60
Average number Of rooms daily oc-
cupied as shown above for L months
would he Ill at an average price of 81
per day would give a total revenue
from rooms of $4,000.
Operating Expenses.
Office employees. bell boys. elevator
boys. porters, etc, $3.50; help. care of
rooms. etc. up stairs. S265; electric
licht. $500: laundry, $3.50; ice soap.
etc. SlOo: total expense per month.
SI3G5, operating expense for rooms