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S8E29: Bain New Market Entry Case Interview: Zenith Hotels

Strategy Simplified

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How Much Would Zina Hotel Need to Charge Per Room Per Night to Break Even?

The hotel currently has 400 rooms. The one time startup costs are $500 million. Hotel would cost $20 million a year to operate and I want you to assume that we're evaluating this over a 10 year horizon. With that information, could you let me know how much Zina would need to charge on average per room per night to break even?

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