Value of Iconic Landmarks and Structures
There are trends which are coming up in heritage management across the globe, below are some trends which are arising.
1. Privately owned iconic landmarks
- Not every historic site that is owned and managed by the government some are privately owned by families and companies.
- It may surprise you to learn that some famous tourist attractions are privately owned.
Space Needle in Seattle
- Space Needle in Seattle, Washington is a very famous tourist attraction but it is owned by the Wright family—the descendants of Howard S. Wright and Bagley Wright, they are the one who funded the project or the 1962 World's Fair.
- Approximately 1.3 million guests visit the Space Needle per year, and nearly 60 million visitors have visited the tower since it opened in 1962.
- The original company running the operations of the landmark, Space Needle Holding Corporation, is registered as an asset management company. Ron Sevart serves as the current CEO of the company leading an employee base of nearly 500 people.
Empire State Building in New York
- The Empire State Building in New York, New York is another iconic building which owned by a real estate mogul Peter Malkin, previously it was owned by the current president of the united state Donald J. Trump but in 2002 it was sold to mogul Peter Malkin at a price of $57.5 million.
- The decks attract four million visitors a year and generated $60 million in profits in 2010.
- The state earns revenue from people who visit and renting the space to tenants like the Federal Deposit Insurance Corporation.
Taj Mahal in Agra, India
- An immense mausoleum of white marble, built in Agra between 1631 and 1648 by order of the Mughal emperor Shah Jahan in memory of his favorite wife, the Taj Mahal is the jewel of Muslim art in India and one of the universally admired masterpieces of the world's heritage.
- As part of India's "Adopt a Heritage" plan, the government made a controversial $3.7 million deal in 2018, handing over the world-famous Taj Mahal to the privately-owned Dalmia Group. In exchange, the conglomerate has the rights to advertise, set admissions prices, and make money from any sales it conducts on site
- It is one of the most visited world heritage monuments across the globe , it has earned over Rs 200 crore through ticket sales in the last three years. But the government has spent only Rs 13.37 crore for its conservation during the said period.
- According to the minister's reply, Rs 55.09 crore was earned in 2016-17 from 61.77 lakh tourists, Rs 58.76 crore in 2017-18 from 65.65 lakh and Rs 86.48 crore in 2018-19 from 70.9 lakh through ticket lakh through ticket sales at the monument. Similarly, Rs 4.5 crore was spent on its conservation in 2016-17, Rs 3.38 crore in 2017-18, and Rs 5.48 crore in 2018-19 .
2. Revenue generating activities.
Empire State Building in New York
- The company has been able to generate revenue through various ways.
- Funds from operations (FFO) increased by 6.7% from 2016, this is due to redeveloping and re-lease space to larger, higher credit quality tenants at higher rents and create long-term value for shareholders.
- In 2017 the company eased almost 1.3 million square feet of office and retail space that resulted in market-leading spreads on both new Manhattan office and total portfolio leases of 41.4% and 30.8%, respectively.
- Tenants are attracted by a well-located, amenity-rich office buildings, which have all been modernized for the 21st century.
- Revenue grew 1.8% and Observatory net operating income grew 2.0% driven by improved revenue mix and active expense management despite reduced attendance.
- The company has strengthened its balance sheet with a $450 million private placement of unsecured senior notes and refinance the revolving credit facility, term loan and all of our 2017 mortgage maturities.
- Empire State Building was 93.6% occupied; including signed leases not commenced (SLNC) was 94.2% leased.
- Retail portfolio was 92.0% occupied; including SLNC, the retail portfolio was 93.9% leased.
- Core Funds From Operations (“Core FFO”) was $0.25 per fully diluted share.
- Achieved net income attributable to the Company of $0.11 per fully diluted share.
- Realized lease termination fee income, included in other revenues and fees, of $13.6 million or approximately $0.045 per fully diluted share, which was partially offset by the write off of associated straight line rent receivables associated with the terminated leases of $1.4 million or approximately $0.005 per fully diluted share.
- Amended and restated the Company’s $1.1 billion outdrawn, unsecured revolving credit facility and $265 million term loan, which extended the revolving credit facility maturity, lowered borrowing costs and added flexibility under the financial covenants
- Refinanced all $336 million of 2017 mortgage maturities with $315 million in new long term fixed rate mortgages with a lower weighted average interest rate.
- Declared and paid aggregate dividends of $0.42 per share during 2017.
- Observatory revenue was $127.1 million for the year ended December 31, 2017, a 1.8% increase from $124.8 million for the year ended December 31, 2016.
- The facilities have an accordion feature allowing for an additional increase in the maximum aggregate principal balance to $1.75 billion under certain circumstances.
Space Needle in Seattle
- Space Needle is one of the most expensive restaurants in Seattle.
- The space needle average entrance price is $44.93.
- The restaurant has a minimum food and beverage charge of $35 per guest.
- General admission ticket cost in Space Needle restaurant is between US$22 and US$35.
- It has an annual revenue of $14.16 million.