Common use of Open Purchase Orders Clause in Contracts

Open Purchase Orders. At the end of each month, Food Manager shall prepare an open purchase order list and forward the same to Hotel Manager's Regional Accounting Office (presently located in Cincinnati, Ohio). This list shall contain all purchase orders for items that have been received but have not been processed for payment. This procedure will allow Hotel Manager to ensure that all expenses are accrued for the month in which the purchase was realized. EXHIBIT 2 GUEST QUARTERS - CHICAGO STATEMENT OF INCOME GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 1 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- STATISTICS 10,695 10,695 10,695 TOTAL ROOMS AVAIL 5,901 5,301 5,406 PAID ROOMS OCC. 55.2 49.6 50.6 % OF OCCUPANCY 121.28 117.98 114.64 AVERAGE RATE MEMO STATISTICS INCLUDING COMPS: 6,133 5,301 5,406 TTL ROOMS OCC. 57.3 49.6 50.6 % OF OCCUPANCY REVENUES 715,653 62.6 625,436 66.0 619,766 64.3 ROOMS 298,927 26.2 237,273 25.0 256,272 26.6 FOOD & BEVERAGE 18,656 1.6 22,793 2.4 13,473 1.4 TELEPHONE 47,773 4.2 46,451 4.9 39,969 4.2 MINOR OPER DEPTS 61,542 5.4 16,081 1.7 33,898 3.5 RENT & OTHER 1,142,551 100.0 948,034 100.0 963,398 100.0 TOTAL REVENUES OPERATING COSTS 155,737 21.8 158,457 25.3 167,176 27.0 ROOMS 280,729 93.9 195,596 82.4 208,238 81.3 FOOD & BEVERAGE 17,781 95.3 15,731 69.0 20,592 152.8 TELEPHONE 54,568 114.2 41,325 89.0 43,732 109.4 MINOR OPER DEPTS 4,394 7.1 6,796 42.3 5,516 16.3 RENT & OTHER 513,210 44.9 417,905 44.1 445,254 46.2 TOTAL OPER COST 629,341 55.1 530,129 55.9 518,144 53.8 OPRERATING PROFIT UNDISTRIB OPER. EXP. 112,404 9.8 104,045 11.0 104,945 10.9 ADMINISTRATIVE 14,232 - 1.3 119,985 12.7 107,621 11.2 MARKETING 82,036 7.2 67,557 7.1 56,638 5.9 PROPERTY MAINT 27,170 2.4 45,080 4.8 32,054 3.3 ENERGY 207,378 18.2 336,667 35.5 301,257 31.3 TOTAL UNDISTRIB 421,963 36.9 193,462 20.4 216,887 22.5 GROSS OPER. PROFIT 41,477 3.6 37,791 4.0 38,792 4.0 MANAGEMENT FEES 380,486 33.3 155,671 16.4 178,095 18.5 INCOME BEF FIX CHG. 153,642 13.5 90,519 9.6 106,493 11.1 RENT TAXES & INS. 447,394 39.2 423,657 44.7 432,406 44.9 INTEREST 37,734 - 3.3 1,500 .2 16,585 - 1.7 OWNERS EXPENSE 182,817 - 16.0 360,005 - 38.0 344,219 - 35.7 INC BEF DEPR/AMORT 393,560 34.5 277,659 28.8 DEP & AMORT. 576,376 - 50.5 360,005 - 38.0 621,878 - 64.6 INCOME BEFORE TAXES 447,394 39.2 423,657 44.7 432,406 44.9 ADD: INTEREST 393,560 34.5 277,659 28.8 ADD: DEPR & AMORT 36,529 - 3.2 33,070 - 3.5 33,552 - 3.5 MINUS: RESERVES 228,049 20.0 30,582 3.2 54,635 5.7 NET OPER INCOME YEAR TO DATE ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- STATISTICS TOTAL ROOMS AVAIL 125,925 125,925 125,925 PAID ROOMS OCC. 82,060 87,518 85,366 % OF OCCUPANCY 65.2 69.5 67.8 AVERAGE RATE 125.61 121.45 112.76 MEMO STATISTICS INCLUDING COMPS: TTL ROOMS OCC. 84,688 87,518 85,366 % OF OCCUPANCY 67.3 69.5 67.8 REVENUES ROOMS 10,307,269 69.1 10,628,999 69.7 9,625,652 68.8 FOOD & BEVERAGE 3,410,601 22.9 3,460,898 22.7 3,231,142 23.1 TELEPHONE 311,557 2.1 401,649 2.6 360,262 2.6 MINOR OPER DEPTS 525,725 3.5 518,418 3.4 496,863 3.6 RENT & OTHER 363,717 2.4 246,800 1.6 281,340 2.0 TOTAL REVENUES 14,918,870 100.0 15,256,764 100.0 13,995,258 100.0 OPERATING COSTS ROOMS 2,156,306 20.9 2,275,823 21.4 2,166,383 22.5 FOOD & BEVERAGE 2,510,903 73.6 2,468,256 71.3 2,221,046 68.7 TELEPHONE 201,159 64.6 215,317 53.6 199,212 55.3 MINOR OPER DEPTS 475,481 90.4 483,490 93.3 492,185 99.1 RENT & OTHER 82,681 22.7 112,222 45.5 99,747 35.5 TOTAL OPER COST 5,426,531 36.4 5,555,108 36.4 5,178,574 37.0 OPRERATING PROFIT 9,492,339 63.6 9,701,656 63.6 8,816,685 63.0 UNDISTRIB OPER. EXP. ADMINISTRATIVE 1,274,368 8.5 1,320,549 8.7 1,257,525 9.0 MARKETING 1,521,126 10.2 1,757,727 11.5 1,641,623 11.7 PROPERTY MAINT 824,084 5.5 807,603 5.3 779,239 5.6 ENERGY 413,671 2.8 547,480 3.6 508,212 3.6 TOTAL UNDISTRIB 4,033,248 27.0 4,433,359 29.1 4,186,600 29.9 GROSS OPER. PROFIT 5,459,091 36.6 5,268,297 34.5 4,630,085 33.1 MANAGEMENT FEES 592,937 4.0 608,358 4.0 557,938 4.0 INCOME BEF FIX CHG. 4,866,154 32.6 4,659,939 30.5 4,072,147 29.1 RENT TAXES & INS. 1,263,332 8.5 1,097,708 7.2 1,135,628 8.1 INTEREST 5,224,907 35.0 5,083,884 33.3 5,053,279 36.1 OWNERS EXPENSE 16,870 - .1 18,000 .1 22,916 .2 INC BEF DEPR/AMORT 1,605,215 - 10.8 1,539,653 - 10.1 2,139,676 - 15.3 DEP & AMORT. 3,095,631 20.8 3,232,884 23.1 INCOME BEFORE TAXES 4,700,846 - 31.5 1,539,653 - 10.1 5,372,560 - 38.4 ADD: INTEREST 5,224,907 35.0 5,083,884 33.3 5,053,279 36.1 ADD: DEPR & AMORT 3,095,631 20.8 3,232,884 23.1 MINUS: RESERVES 518,820 - 3.5 532,315 - 3.5 425,969 - 3.0 NET OPER INCOME 3,100,872 20.8 3,011,916 19.7 2,487,634 17.8 GUEST QUARTERS - CHICAGO FOOD DEPARTMENT GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 5 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- REVENUE 91,026 42.2 77,444 46.4 78,700 43.3 BANQUETS 45,315 27.2 50,290 27.6 RESTAURANT 95,353 44.2 16,774 10.1 16,947 9.3 LOUNGE-PRIMARY 16,357 7.6 16,032 9.6 14,453 7.9 ROOM SERVICE 6,109 - 2.8 2,196 - 1.2 ALLOWANCES 196,626 91.2 155,565 93.2 158,194 86.9 NET REVENUES OTHER INCOME 10,086 4.7 3,216 1.9 7,088 3.9 BANQUET A/V 2,321 1.4 4,583 2.5 BANQUET ITEMS 3,645 1.7 3,252 2.0 4,756 2.6 OTHER INCOME 5,306 2.5 2,560 1.5 7,345 4.0 PUBLIC ROOM RENTAL 19,038 8.8 11,349 6.8 23,772 13.1 NET OTHER INCOME 215,664 100.0 166,914 100.0 181,966 100.0 TOTAL REVENUES COST OF SALES 91,448 46.5 38,113 24.5 52,949 33.5 COST OF FOOD 4,378 - 2.2 8,340 - 5.3 LESS - EMPL MEALS 87,070 44.3 38,113 24.5 44,609 28.2 COS - FOOD OTHER COSTS OF SALES 2,742 27.2 385 7.0 830 7.1 BANQUET A/V 127 2.3 840 7.2 OTHER EQUIPMENT 2,742 27.2 512 9.3 1,670 14.3 OTH COST OF SALE 125,852 58.4 128,289 76.9 135,687 74.6 GROSS PROFIT PAYROLL & REL EXP. 97,893 45.4 69,009 41.3 73,712 40.5 SALARIES & WAGES 24,072 11.2 28,325 17.0 23,342 12.8 EMPLOYEE BENEFITS 121,965 56.6 97,334 58.3 97,054 53.3 TOT. PAYROLL EXP. OTHER EXPENSES 2,401 1.1 622 .4 467 .3 BANQUET EXPENSE ▇▇▇ .▇ ▇▇▇▇▇ 6,913 3.2 1,400 .8 2,090 1.2 CLEANING SUPPLIES 1,520 .7 1,300 .8 1,685 .9 CONTRACTED SERVICE 1,885 .9 400 .2 351 .2 DECORATIONS GLASSWARE 731 .3 311 .2 367 .2 KITCHEN FUEL 3,040 1.4 3,507 2.1 3,283 1.8 LAUNDRY 550 .3 169 .1 LICENSE & INSPECT 109 .1 LINEN 469 .3 MENUS & ▇▇▇ LIST 3,120 1.5 MISCELLANEOUS 851 .4 380 .2 62 MUSIC & ENTERTAIN 960 .5 777 .5 639 .4 OPERATING SUPPLIES 981 .5 466 .3 1,116 .6 PRINT & STATIONARY 1,047 .5 PROMO/COMP FOOD SILVERWARE 500 .2 311 .2 300 .2 TELEPHONE 1,863 .9 1,200 .7 1,435 .8 UNIFORMS 35 322 .2 UTENSILS 26,324 12.2 11,224 6.7 12,755 7.0 TOTAL OTHER EXP 148,289 68.8 108,558 65.0 109,809 60.4 TOTAL DEPT EXP 22,436 - 10.4 19,731 11.8 25,879 14.2 DEPT PROFIT/LOSS YEAR TO DATE ---------------------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ---------------------------------------------------------------------------------------------------------------- REVENUE BANQUETS 1,191,454 45.7 1,138,177 44.3 1,043,759 44.0 RESTAURANT 390,726 15.0 592,388 23.0 533,638 22.5 LOUNGE-PRIMARY 381,549 14.7 249,068 9.7 218,707 9.2 ROOM SERVICE 222,319 8.5 237,684 9.2 225,232 9.5 ALLOWANCES 32,357 - 1.2 23,685 - 1.0 NET REVENUES 2,153,690 82.7 2,217,317 86.2 1,997,651 84.2 OTHER INCOME BANQUET A/V 242,478 9.3 158,551 6.2 176,204 7.4 BANQUET ITEMS 52,594 2.0 53,689 2.1 59,361 2.5 OTHER INCOME 47,241 1.8 47,798 1.9 46,815 2.0 PUBLIC ROOM RENTAL 108,931 4.2 95,005 3.7 92,955 3.9 NET OTHER INCOME 451,244 17.3 355,043 13.8 375,334 15.8 TOTAL REVENUES 2,604,935 100.0 2,572,360 100.0 2,372,985 100.0 COST OF SALES COST OF FOOD 702,856 32.6 543,235 24.5 592,178 29.6 LESS - EMPL MEALS 68,503 - 3.2 98,188 - 4.9 COS - FOOD 634,352 29.5 543,235 24.5 493,990 24.7 OTHER COSTS OF SALES BANQUET A/V 54,141 18.4 19,021 9.0 32,735 13.9 OTHER EQUIPMENT 9,532 3.2 2,946 1.4 3,716 1.6 OTH COST OF SALE 63,673 21.6 21,967 10.4 36,450 15.5 GROSS PROFIT 1,906,909 73.2 2,007,158 78.0 1,842,545 77.7 PAYROLL & REL EXP. SALARIES & WAGES 857,640 32.9 823,478 32.0 741,948 31.3 EMPLOYEE BENEFITS 317,900 12.2 335,005 13.0 272,394 11.5 TOT. PAYROLL EXP. 1,175,540 45.1 1,158,483 45.0 1,014,342 42.8 OTHER EXPENSES BANQUET EXPENSE 15,136 .6 8,864 .3 8,415 .4 CHINA 6,578 .3 10,200 .4 7,000 .3 CLEANING SUPPLIES 32,820 1.3 19,952 .8 18,462 .8 CONTRACTED SERVICE 4,653 .2 5,900 .2 7,894 .3 DECORATIONS 4,800 .2 4,404 .2 4,628 .2 GLASSWARE 2,057 .1 4,400 .2 4,424 .2 KITCHEN FUEL 4,986 .2 4,430 .2 4,355 .2 LAUNDRY 41,968 1.6 41,483 1.6 40,565 1.7 LICENSE & INSPECT 3,293 .1 6,600 .3 6,403 .3 LINEN 4,518 .2 6,700 .3 4,408 .2 MENUS & ▇▇▇ LIST 128 3,700 .1 3,459 .2 MISCELLANEOUS 8,270 .3 5,886 .3 MUSIC & ENTERTAIN 5,550 .2 4,560 .2 3,564 .2 OPERATING SUPPLIES 12,397 .5 11,078 .4 6,539 .3 PRINT & STATIONARY 4,316 .2 6,648 .3 7,254 .3 PROMO/COMP FOOD 1,313 .1 SILVERWARE 5,080 .2 7,000 .3 5,082 .2 TELEPHONE 3,849 .2 4,430 .2 2,546 .1 UNIFORMS 13,924 .5 15,700 .6 21,071 .9 UTENSILS 2,369 .1 2,470 .1 TOTAL OTHER EXP 178,004 6.8 166,049 6.5 164,425 6.9 TOTAL DEPT EXP 1,353,543 52.0 1,324,532 51.5 1,178,766 49.7 DEPT PROFIT/LOSS 553,365 21.2 682,626 26.5 663,779 28.0 GUEST QUARTERS - CHICAGO BEVERAGE DEPARTMENT GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 1 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- REVENUE 32,837 39.4 27,182 38.6 23,746 32.0 BANQUET 5,211 7.4 7,615 10.3 RESTAURANT 37,161 44.6 23,907 34.0 27,346 36.8 LOUNGE PRIMARY 12,366 14.9 11,927 17.0 12,287 16.5 HONOR BAR - BEVG 2,874 3.5 2,132 3.0 4,038 5.4 ROOM SERVICE 1,974 - 2.4 726 - 1.0 ALLOWANCES 83,263 100.0 70,359 100.0 74,306 100.0 NET REVENUE OTHER INCOME NET OTHER INCOME 83,263 100.0 70,359 100.0 74,306 100.0 TOTAL REVENUES COST OF SALES 24,701 29.7 14,071 20.0 13,061 17.6 COST OF BEVERAGE 24,701 29.7 14,071 20.0 13,061 17.6 NET COST OF SALE 58,562 70.3 56,288 80.0 61,245 82.4 GROSS PROFIT ▇▇▇ PAYROLL & REL. EXP. 14,282 17.2 16,678 23.7 21,468 28.9 SALARIES & WAGES 3,052 3.7 7,184 10.2 7,488 10.1 EMPLOYEE BENEFITS 17,334 20.8 23,862 33.9 28,956 39.0 TOT. PAYROLL EXP OTHER EXPENSES CLEANING SUPPLIES 45 .1 35 .1 CONTRACTED SERVICE 1,000 1.4 DECORATIONS GLASSWARE 451 .5 1,350 1.9 1,048 1.4 LICENSE & INSPECT MENUS & ▇▇▇ LISTS 425 .6 498 .7 MISCELLANEOUS 5,460 7.8 6,360 8.6 MUSIC & ENTERTAIN 500 .7 699 .9 OPERATING SUPPLIES PRINT & STATIONARY 1,100 1.6 1,174 1.6 PROMO/COMP FOOD 99 .1 610 .9 356 .5 UNIFORMS 594 .7 10,480 14.9 10,135 13.6 TOTAL OTHER EXP. 17,928 21.5 34,342 48.8 39,090 52.6 TOTAL DEPT. EXP. 40,634 48.8 21,946 31.2 22,155 29.8 DEPT PROFIT/LOSS YEAR TO DATE ---------------------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ---------------------------------------------------------------------------------------------------------------- REVENUE BANQUET 198,197 24.6 232,147 26.1 214,493 25.0 RESTAURANT 42,337 5.3 68,120 7.7 112,768 13.1 LOUNGE PRIMARY 361,165 44.8 373,759 42.1 325,853 38.0 HONOR BAR - BEVG 188,439 23.4 182,904 20.6 189,186 22.1 ROOM SERVICE 26,543 3.3 31,608 3.6 32,107 3.7 ALLOWANCES 11,014 1.4 16,251 - 1.9 NET REVENUE 805,667 100.0 888,538 100.0 858,157 100.0 OTHER INCOME NET OTHER INCOME TOTAL REVENUES 805,667 100.0 888,538 100.0 858,157 100.0 COST OF SALES COST OF BEVERAGE 169,932 21.1 177,701 20.0 165,653 19.3 NET COST OF SALE 169,932 21.1 177,701 20.0 165,653 19.3 GROSS PROFIT ▇▇▇ 635,735 78.9 710,837 80.0 692,504 80.7 PAYROLL & REL. EXP. SALARIES & WAGES 157,071 19.5 198,126 22.3 178,721 20.8 EMPLOYEE BENEFITS 58,275 7.2 85,560 9.6 70,033 8.2 TOT. PAYROLL EXP 215,346 26.7 283,686 31.9 248,754 29.0 OTHER EXPENSES CLEANING SUPPLIES 223 CONTRACTED SERVICE 327 420 .1 110 DECORATIONS 1,000 .1 GLASSWARE 1,013 .1 3,550 .4 2,668 .3 LICENSE & INSPECT 11,633 1.4 16,200 1.8 15,746 1.8 MENUS & ▇▇▇ LISTS 721 .1 MISCELLANEOUS 2,969 .4 5,100 .6 5,327 .6 MUSIC & ENTERTAIN 39,995 5.0 61,120 6.9 46,335 5.4 OPERATING SUPPLIES 2,750 .3 5,250 .6 4,526 .5 PRINT & STATIONARY 1,645 .2 2,200 .3 71 PROMO/COMP FOOD 9,954 1.2 14,300 1.6 14,510 1.7 UNIFORMS 3,770 .5 7,995 .9 7,197 .8 TOTAL OTHER EXP. 74,055 9.2 117,135 13.2 97,433 11.4 TOTAL DEPT. EXP. 289,402 35.9 400,821 45.1 346,187 40.3 DEPT PROFIT/LOSS 346,333 43.0 310,016 34.9 346,317 40.4 EXHIBIT 3 GROSS OPERATING PROFIT (Articles 5.1(b) and 5.3(c))

Open Purchase Orders. At the end of each month, Food Manager shall prepare an open purchase order list and forward the same to Hotel Manager's Regional Accounting Office (presently located in Cincinnati, Ohio). This list shall contain all purchase orders for items that have been received but have not been processed for payment. This procedure will allow Hotel Manager to ensure that all expenses are accrued for the month in which the purchase was realized. EXHIBIT 2 GUEST QUARTERS - CHICAGO STATEMENT OF INCOME GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 1 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- STATISTICS 10,695 10,695 10,695 TOTAL ROOMS AVAIL 5,901 5,301 5,406 PAID ROOMS OCC. 55.2 49.6 50.6 % OF OCCUPANCY 121.28 117.98 114.64 AVERAGE RATE MEMO STATISTICS INCLUDING COMPS: 6,133 5,301 5,406 TTL ROOMS OCC. 57.3 49.6 50.6 % OF OCCUPANCY REVENUES 715,653 62.6 625,436 66.0 619,766 64.3 ROOMS 298,927 26.2 237,273 25.0 256,272 26.6 FOOD & BEVERAGE 18,656 1.6 22,793 2.4 13,473 1.4 TELEPHONE 47,773 4.2 46,451 4.9 39,969 4.2 MINOR OPER DEPTS 61,542 5.4 16,081 1.7 33,898 3.5 RENT & OTHER 1,142,551 100.0 948,034 100.0 963,398 100.0 TOTAL REVENUES OPERATING COSTS 155,737 21.8 158,457 25.3 167,176 27.0 ROOMS 280,729 93.9 195,596 82.4 208,238 81.3 FOOD & BEVERAGE 17,781 95.3 15,731 69.0 20,592 152.8 TELEPHONE 54,568 114.2 41,325 89.0 43,732 109.4 MINOR OPER DEPTS 4,394 7.1 6,796 42.3 5,516 16.3 RENT & OTHER 513,210 44.9 417,905 44.1 445,254 46.2 TOTAL OPER COST 629,341 55.1 530,129 55.9 518,144 53.8 OPRERATING PROFIT UNDISTRIB OPER. EXP. 112,404 9.8 104,045 11.0 104,945 10.9 ADMINISTRATIVE 14,232 - 1.3 119,985 12.7 107,621 11.2 MARKETING 82,036 7.2 67,557 7.1 56,638 5.9 PROPERTY MAINT 27,170 2.4 45,080 4.8 32,054 3.3 ENERGY 207,378 18.2 336,667 35.5 301,257 31.3 TOTAL UNDISTRIB 421,963 36.9 193,462 20.4 216,887 22.5 GROSS OPER. PROFIT 41,477 3.6 37,791 4.0 38,792 4.0 MANAGEMENT FEES 380,486 33.3 155,671 16.4 178,095 18.5 INCOME BEF FIX CHG. 153,642 13.5 90,519 9.6 106,493 11.1 RENT TAXES & INS. 447,394 39.2 423,657 44.7 432,406 44.9 INTEREST 37,734 - 3.3 1,500 .2 16,585 - 1.7 OWNERS EXPENSE 182,817 - 16.0 360,005 - 38.0 344,219 - 35.7 INC BEF DEPR/AMORT 393,560 34.5 277,659 28.8 DEP & AMORT. 576,376 - 50.5 360,005 - 38.0 621,878 - 64.6 INCOME BEFORE TAXES 447,394 39.2 423,657 44.7 432,406 44.9 ADD: INTEREST 393,560 34.5 277,659 28.8 ADD: DEPR & AMORT 36,529 - 3.2 33,070 - 3.5 33,552 - 3.5 MINUS: RESERVES 228,049 20.0 30,582 3.2 54,635 5.7 NET OPER INCOME YEAR TO DATE ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- STATISTICS TOTAL ROOMS AVAIL 125,925 125,925 125,925 PAID ROOMS OCC. 82,060 87,518 85,366 % OF OCCUPANCY 65.2 69.5 67.8 AVERAGE RATE 125.61 121.45 112.76 MEMO STATISTICS INCLUDING COMPS: TTL ROOMS OCC. 84,688 87,518 85,366 % OF OCCUPANCY 67.3 69.5 67.8 REVENUES ROOMS 10,307,269 69.1 10,628,999 69.7 9,625,652 68.8 FOOD & BEVERAGE 3,410,601 22.9 3,460,898 22.7 3,231,142 23.1 TELEPHONE 311,557 2.1 401,649 2.6 360,262 2.6 MINOR OPER DEPTS 525,725 3.5 518,418 3.4 496,863 3.6 RENT & OTHER 363,717 2.4 246,800 1.6 281,340 2.0 TOTAL REVENUES 14,918,870 100.0 15,256,764 100.0 13,995,258 100.0 OPERATING COSTS ROOMS 2,156,306 20.9 2,275,823 21.4 2,166,383 22.5 FOOD & BEVERAGE 2,510,903 73.6 2,468,256 71.3 2,221,046 68.7 TELEPHONE 201,159 64.6 215,317 53.6 199,212 55.3 MINOR OPER DEPTS 475,481 90.4 483,490 93.3 492,185 99.1 RENT & OTHER 82,681 22.7 112,222 45.5 99,747 35.5 TOTAL OPER COST 5,426,531 36.4 5,555,108 36.4 5,178,574 37.0 OPRERATING PROFIT 9,492,339 63.6 9,701,656 63.6 8,816,685 63.0 UNDISTRIB OPER. EXP. ADMINISTRATIVE 1,274,368 8.5 1,320,549 8.7 1,257,525 9.0 MARKETING 1,521,126 10.2 1,757,727 11.5 1,641,623 11.7 PROPERTY MAINT 824,084 5.5 807,603 5.3 779,239 5.6 ENERGY 413,671 2.8 547,480 3.6 508,212 3.6 TOTAL UNDISTRIB 4,033,248 27.0 4,433,359 29.1 4,186,600 29.9 GROSS OPER. PROFIT 5,459,091 36.6 5,268,297 34.5 4,630,085 33.1 MANAGEMENT FEES 592,937 4.0 608,358 4.0 557,938 4.0 INCOME BEF FIX CHG. 4,866,154 32.6 4,659,939 30.5 4,072,147 29.1 RENT TAXES & INS. 1,263,332 8.5 1,097,708 7.2 1,135,628 8.1 INTEREST 5,224,907 35.0 5,083,884 33.3 5,053,279 36.1 OWNERS EXPENSE 16,870 - .1 18,000 .1 22,916 .2 INC BEF DEPR/AMORT 1,605,215 - 10.8 1,539,653 - 10.1 2,139,676 - 15.3 DEP & AMORT. 3,095,631 20.8 3,232,884 23.1 INCOME BEFORE TAXES 4,700,846 - 31.5 1,539,653 - 10.1 5,372,560 - 38.4 ADD: INTEREST 5,224,907 35.0 5,083,884 33.3 5,053,279 36.1 ADD: DEPR & AMORT 3,095,631 20.8 3,232,884 23.1 MINUS: RESERVES 518,820 - 3.5 532,315 - 3.5 425,969 - 3.0 NET OPER INCOME 3,100,872 20.8 3,011,916 19.7 2,487,634 17.8 GUEST QUARTERS - CHICAGO FOOD DEPARTMENT GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 5 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- REVENUE 91,026 42.2 77,444 46.4 78,700 43.3 BANQUETS 45,315 27.2 50,290 27.6 RESTAURANT 95,353 44.2 16,774 10.1 16,947 9.3 LOUNGE-PRIMARY 16,357 7.6 16,032 9.6 14,453 7.9 ROOM SERVICE 6,109 - 2.8 2,196 - 1.2 ALLOWANCES 196,626 91.2 155,565 93.2 158,194 86.9 NET REVENUES OTHER INCOME 10,086 4.7 3,216 1.9 7,088 3.9 BANQUET A/V 2,321 1.4 4,583 2.5 BANQUET ITEMS 3,645 1.7 3,252 2.0 4,756 2.6 OTHER INCOME 5,306 2.5 2,560 1.5 7,345 4.0 PUBLIC ROOM RENTAL 19,038 8.8 11,349 6.8 23,772 13.1 NET OTHER INCOME 215,664 100.0 166,914 100.0 181,966 100.0 TOTAL REVENUES COST OF SALES 91,448 46.5 38,113 24.5 52,949 33.5 COST OF FOOD 4,378 - 2.2 8,340 - 5.3 LESS - EMPL MEALS 87,070 44.3 38,113 24.5 44,609 28.2 COS - FOOD OTHER COSTS OF SALES 2,742 27.2 385 7.0 830 7.1 BANQUET A/V 127 2.3 840 7.2 OTHER EQUIPMENT 2,742 27.2 512 9.3 1,670 14.3 OTH COST OF SALE 125,852 58.4 128,289 76.9 135,687 74.6 GROSS PROFIT PAYROLL & REL EXP. 97,893 45.4 69,009 41.3 73,712 40.5 SALARIES & WAGES 24,072 11.2 28,325 17.0 23,342 12.8 EMPLOYEE BENEFITS 121,965 56.6 97,334 58.3 97,054 53.3 TOT. PAYROLL EXP. OTHER EXPENSES 2,401 1.1 622 .4 467 .3 BANQUET EXPENSE ▇▇▇ .▇ ▇▇▇▇▇ 6,913 3.2 1,400 .8 2,090 1.2 CLEANING SUPPLIES 1,520 .7 1,300 .8 1,685 .9 CONTRACTED SERVICE 1,885 .9 400 .2 351 .2 DECORATIONS GLASSWARE 731 .3 311 .2 367 .2 KITCHEN FUEL 3,040 1.4 3,507 2.1 3,283 1.8 LAUNDRY 550 .3 169 .1 LICENSE & INSPECT 109 .1 LINEN 469 .3 MENUS & ▇▇▇ LIST 3,120 1.5 MISCELLANEOUS 851 .4 380 .2 62 MUSIC & ENTERTAIN 960 .5 777 .5 639 .4 OPERATING SUPPLIES 981 .5 466 .3 1,116 .6 PRINT & STATIONARY 1,047 .5 PROMO/COMP FOOD SILVERWARE 500 .2 311 .2 300 .2 TELEPHONE 1,863 .9 1,200 .7 1,435 .8 UNIFORMS 35 322 .2 UTENSILS 26,324 12.2 11,224 6.7 12,755 7.0 TOTAL OTHER EXP 148,289 68.8 108,558 65.0 109,809 60.4 TOTAL DEPT EXP 22,436 - 10.4 19,731 11.8 25,879 14.2 DEPT DEBT PROFIT/LOSS YEAR TO DATE ---------------------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ---------------------------------------------------------------------------------------------------------------- REVENUE BANQUETS 1,191,454 45.7 1,138,177 44.3 1,043,759 44.0 RESTAURANT 390,726 15.0 592,388 23.0 533,638 22.5 LOUNGE-PRIMARY 381,549 14.7 249,068 9.7 218,707 9.2 ROOM SERVICE 222,319 8.5 237,684 9.2 225,232 9.5 ALLOWANCES 32,357 - 1.2 23,685 - 1.0 NET REVENUES 2,153,690 82.7 2,217,317 86.2 1,997,651 84.2 OTHER INCOME BANQUET A/V 242,478 9.3 158,551 6.2 176,204 7.4 BANQUET ITEMS 52,594 2.0 53,689 2.1 59,361 2.5 OTHER INCOME 47,241 1.8 47,798 1.9 46,815 2.0 PUBLIC ROOM RENTAL 108,931 4.2 95,005 3.7 92,955 3.9 NET OTHER INCOME 451,244 17.3 355,043 13.8 375,334 15.8 TOTAL REVENUES 2,604,935 100.0 2,572,360 100.0 2,372,985 100.0 COST OF SALES COST OF FOOD 702,856 32.6 543,235 24.5 592,178 29.6 LESS - EMPL MEALS 68,503 - 3.2 98,188 - 4.9 COS - FOOD 634,352 29.5 543,235 24.5 493,990 24.7 OTHER COSTS OF SALES BANQUET A/V 54,141 18.4 19,021 9.0 32,735 13.9 OTHER EQUIPMENT 9,532 3.2 2,946 1.4 3,716 1.6 OTH COST OF SALE 63,673 21.6 21,967 10.4 36,450 15.5 GROSS PROFIT 1,906,909 73.2 2,007,158 78.0 1,842,545 77.7 PAYROLL & REL EXP. SALARIES & WAGES 857,640 32.9 823,478 32.0 741,948 31.3 EMPLOYEE BENEFITS 317,900 12.2 335,005 13.0 272,394 11.5 TOT. PAYROLL EXP. 1,175,540 45.1 1,158,483 45.0 1,014,342 42.8 OTHER EXPENSES BANQUET EXPENSE 15,136 .6 8,864 .3 8,415 .4 CHINA 6,578 .3 10,200 .4 7,000 .3 CLEANING SUPPLIES 32,820 1.3 19,952 .8 18,462 .8 CONTRACTED SERVICE 4,653 .2 5,900 .2 7,894 .3 DECORATIONS 4,800 .2 4,404 .2 4,628 .2 GLASSWARE 2,057 .1 4,400 .2 4,424 .2 KITCHEN FUEL 4,986 .2 4,430 .2 4,355 .2 LAUNDRY 41,968 1.6 41,483 1.6 40,565 1.7 LICENSE & INSPECT 3,293 .1 6,600 .3 6,403 .3 LINEN 4,518 .2 6,700 .3 4,408 .2 MENUS & ▇▇▇ LIST 128 3,700 .1 3,459 .2 MISCELLANEOUS 8,270 .3 5,886 .3 MUSIC & ENTERTAIN 5,550 .2 4,560 .2 3,564 .2 OPERATING SUPPLIES 12,397 .5 11,078 .4 6,539 .3 PRINT & STATIONARY 4,316 .2 6,648 .3 7,254 .3 PROMO/COMP FOOD 1,313 .1 SILVERWARE 5,080 .2 7,000 .3 5,082 .2 TELEPHONE 3,849 .2 4,430 .2 2,546 .1 UNIFORMS 13,924 .5 15,700 .6 21,071 .9 UTENSILS 2,369 .1 2,470 .1 TOTAL OTHER EXP 178,004 6.8 166,049 6.5 164,425 6.9 TOTAL DEPT EXP 1,353,543 52.0 1,324,532 51.5 1,178,766 49.7 DEPT DEBT PROFIT/LOSS 553,365 21.2 682,626 26.5 663,779 28.0 GUEST QUARTERS - CHICAGO BEVERAGE DEPARTMENT GL0322 PERIOD-12 FISCAL 1994 1/15/95 PAGE 1 19.34.01 12/01/94 - 12/31/94 CURRENT PERIOD ------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ------------------------------------------------------------------------------------------------- REVENUE 32,837 39.4 27,182 38.6 23,746 32.0 BANQUET 5,211 7.4 7,615 10.3 RESTAURANT 37,161 44.6 23,907 34.0 27,346 36.8 LOUNGE PRIMARY 12,366 14.9 11,927 17.0 12,287 16.5 HONOR BAR - BEVG 2,874 3.5 2,132 3.0 4,038 5.4 ROOM SERVICE 1,974 - 2.4 726 - 1.0 ALLOWANCES 83,263 100.0 70,359 100.0 74,306 100.0 NET REVENUE OTHER INCOME NET OTHER INCOME 83,263 100.0 70,359 100.0 74,306 100.0 TOTAL REVENUES COST OF SALES 24,701 29.7 14,071 20.0 13,061 17.6 COST OF BEVERAGE 24,701 29.7 14,071 20.0 13,061 17.6 NET COST OF SALE 58,562 70.3 56,288 80.0 61,245 82.4 GROSS PROFIT ▇▇▇ PAYROLL & REL. EXP. 14,282 17.2 16,678 23.7 21,468 28.9 SALARIES & WAGES 3,052 3.7 7,184 10.2 7,488 10.1 EMPLOYEE BENEFITS 17,334 20.8 23,862 33.9 28,956 39.0 TOT. PAYROLL EXP OTHER EXPENSES CLEANING SUPPLIES 45 .1 35 .1 CONTRACTED SERVICE 1,000 1.4 DECORATIONS GLASSWARE 451 .5 1,350 1.9 1,048 1.4 LICENSE & INSPECT MENUS & ▇▇▇ LISTS 425 .6 498 .7 MISCELLANEOUS 5,460 7.8 6,360 8.6 MUSIC & ENTERTAIN 500 .7 699 .9 OPERATING SUPPLIES PRINT & STATIONARY 1,100 1.6 1,174 1.6 PROMO/COMP FOOD 99 .1 610 .9 356 .5 UNIFORMS 594 .7 10,480 14.9 10,135 13.6 TOTAL OTHER EXP. 17,928 21.5 34,342 48.8 39,090 52.6 TOTAL DEPT. EXP. 40,634 48.8 21,946 31.2 22,155 29.8 DEPT PROFIT/LOSS YEAR TO DATE ---------------------------------------------------------------------------------------------------------------- ACTUAL % BUDGET % LAST YEAR % ---------------------------------------------------------------------------------------------------------------- REVENUE BANQUET 198,197 24.6 232,147 26.1 214,493 25.0 RESTAURANT 42,337 5.3 68,120 7.7 112,768 13.1 LOUNGE PRIMARY 361,165 44.8 373,759 42.1 325,853 38.0 HONOR BAR - BEVG 188,439 23.4 182,904 20.6 189,186 22.1 ROOM SERVICE 26,543 3.3 31,608 3.6 32,107 3.7 ALLOWANCES 11,014 1.4 16,251 - 1.9 NET REVENUE 805,667 100.0 888,538 100.0 858,157 100.0 OTHER INCOME NET OTHER INCOME TOTAL REVENUES 805,667 100.0 888,538 100.0 858,157 100.0 COST OF SALES COST OF BEVERAGE 169,932 21.1 177,701 20.0 165,653 19.3 NET COST OF SALE 169,932 21.1 177,701 20.0 165,653 19.3 GROSS PROFIT ▇▇▇ 635,735 78.9 710,837 80.0 692,504 80.7 PAYROLL & REL. EXP. SALARIES & WAGES 157,071 19.5 198,126 22.3 178,721 20.8 EMPLOYEE BENEFITS 58,275 7.2 85,560 9.6 70,033 8.2 TOT. PAYROLL EXP 215,346 26.7 283,686 31.9 248,754 29.0 OTHER EXPENSES CLEANING SUPPLIES 223 CONTRACTED SERVICE 327 420 .1 110 DECORATIONS 1,000 .1 GLASSWARE 1,013 .1 3,550 .4 2,668 .3 LICENSE & INSPECT 11,633 1.4 16,200 1.8 15,746 1.8 MENUS & ▇▇▇ LISTS 721 .1 MISCELLANEOUS 2,969 .4 5,100 .6 5,327 .6 MUSIC & ENTERTAIN 39,995 5.0 61,120 6.9 46,335 5.4 OPERATING SUPPLIES 2,750 .3 5,250 .6 4,526 .5 PRINT & STATIONARY 1,645 .2 2,200 .3 71 PROMO/COMP FOOD 9,954 1.2 14,300 1.6 14,510 1.7 UNIFORMS 3,770 .5 7,995 .9 7,197 .8 TOTAL OTHER EXP. 74,055 9.2 117,135 13.2 97,433 11.4 TOTAL DEPT. EXP. 289,402 35.9 400,821 45.1 346,187 40.3 DEPT PROFIT/LOSS 346,333 43.0 310,016 34.9 346,317 40.4 EXHIBIT 3 GROSS OPERATING PROFIT (Articles 5.1(b) and 5.3(c))