My understanding is the 5,000 room mark is a milestone for advertising efficiency not expense ledger coverage.
5,000 rooms was a target in which Tivus could engage an ad aggregator who could help fill their ad slots and not depend solely on in house ad sales (as they have to date). There is substantial economies of scale in this respect.
Cost coverage will have more variables depending on what is going on behind the scenes and costs related to contract and business developments. There is no way to assign a single number of rooms and assume that these will cover costs, except on a fixed cost basis.
There are many advertising apps (look to the coupon king) and others who already utilize GPS geo tracking/fencing in their advertising platforms to reach shoppers as they please.
SP needs to realize he is a guppy in a sea of sharks. Advertising is big money and he is up against some very shrewd folks. His leverage, at this point is minimal, Host can string him out as long as they want. What he thinks his franchise and offerings are is only the first step, more importantly it is what others think it is worth that really counts.
He should be talking to more than just the hospitality industry(and perhaps he is), I'm sure many advertising platforms would be interested in hearing more about the potential. Trying to go this road alone is going to be tough. Partnering with an advertising shark would gain immediate attention, add credibility and validation to what he's accomplished to date.
A small piece of a huge successful pie is much better than the whole enchilada of a terrible pie.
BTW, welcome back.
All IMHO>
D
