The business model is pure speculation at this point. As an example of what can (but not necessarily should be done). I had an opportunity a few years ago to go on the Routeburn and Milford Tracks in NZ. Its a guided trip by a for profit firm and seasonal. The huts are a short day apart along a very well built trail, sort of Crawford Path with a lot of crushed rock flown in. The Milford track has been run as guided hut to hut for over a 100 years, the Routeburn
https://www.ultimatehikes.co.nz/en/guided-walks/the-routeburn-track is a newer track and had just replaced their huts in their entirety, there are no roads and the area is very wild, everything to build the huts had to be flown in and power is from generators (PV isn't very practical as the area is quite cloudy). The terrain is similar to Mt Washington although both huts are right below the edge of treeline. The huts are full service for at best 5 months every year. They are supplied by helicopter. The accommodations are a mix of bunk rooms and private rooms. Food is a definitely not gourmet but very high quality with a limited choice of entree's which makes for a lot less hassle for a kitchen staff. Costs for a trip staying in a bunkroom were $1,500. This is for two nights of accommodation plus 4 group guides and bus transportation to and from the trailheads. For simplicity assume 1/3 of the cost is for logistics and the other 2/3rd is accommodations so $500 a night minimum per person. While on the trip I was talking to one of their senior staff and he was quite open that what they do is look at what a night on a cruise ship would cost to set their prices. They assume that folks have a lot of recreational choices and that as long as they are competitive they will fill out the schedule of the trips by their reputation.
I don't see the cog going after people for multiday stays and as such I don't see where they have to have highly trained kitchen staff, folks are not there for the food as long as the staff does it well I don't think anyone will ding them for a limited menu. Logistically, everything the COG needs to support seasonal occupation is already being done on the summit. They are definitely angling for the state and possibly the autoroad to share the costs for running a sewer line to the base of the mountain. The power line was run several years ago. Water can be pumped up from the base station but I expect there may be higher sources. Ideally they would put in large tank under the new building sized for surge demand and fire protection that could be filled 24/7 from a low yield source and by going with ultra low water use fixtures they can sell the place as "green". The heating source is biodiesel that they are already using for the COG. Put in a bulk tank and that covers them. The tracks are usable 24/7 so they would just run utility shuttles as needed during off hours. The comment of running the cog through the building is not cast in stone. I expect the state fire marshall would object. I see them running the track over to the edge of the right of way and putting the building in the remainder of the right of way. I don't see this as a year round business as even the COG shuts down in winter. If built correctly, the facility could be drained and stabilized during the winter. The Cog could also access it via snow cat from the summit via their owned right of way.
Long ago there was study floating around by AMC of their future and one of the keys was that their membership is getting older and have expectations of higher end accommodations. The result was the Highland Center and the major investments in the 100 mile wilderness facilities. They keep the huts as a drawing card and when generous members want to donate money they spend it on hut upgrades. I expect that some VFTT folks may say they will be dead and buried before staying in the Highland Center but expect others have stayed there and enjoyed it. I see someone coming up from Boston, staying at the Highland center maybe hiking up to a Hut and then stopping by at the Cog for their last night out. Even in the era of the VFTT gatherings at least a portion of the group gravitated to local hotels. I wouldn't be surprised if after the Cog hotel was built that more than a few VFTT folks would end up staying there. It all comes down to priorities, the current shift in demographics is pushing the concept that folks are better off paying for experiences rather than stuff. A night on the side of Mt Washington above treeline in nice accommodations is something that I see a lot of folks willing to run their credit card. The east coast got the short end of the stick when it comes to National Park Lodges but out west folks pay similar costs to stay in the lodges.
The Cog currently is a cash generator, the owners have been making steady investments in the infrastructure and with the shift to biodiesel trains they have substantially increased the volume of customers for limited increase in staffing. They pretty well can charge what they want for rides up as its a destination activity for most so the obvious approach now is to reinvest that cash back into the business. Keep in mind they also reportedly made a bundle on the Mt Washington hotel previously after buying it after a second foreclosure in the depths of very deep real estate slump and reselling it during a real estate boom therefore they probably have few dollars in the bank sitting idle. Most projects that go bust are due to borrowing too much money, (something like the Balsams project will be awash in loans and I expect wont end well). I expect the Cog will have some short term loans but they will put a lot of their equity into it to retain control.
Business wise I expect that the owners have it planned out pretty well. As the real estate folks always explain Location, Location, Location and that's what the Cog has, effectively the US government is their neighbor and guarantees little or no competition, they just have to come up with business model that works and I expect that they have already run the numbers. What is a major bonus for the COG is unfortunately a potentially major blight on the presidential range, even though its adjacent to another major blight, the summit complex, its still a major new blight on the summit. To date the Fed hasn't said anything and expect that at best if they do anything at all it will be an advisory opinion as the Cog owners have made darn sure over the years that the fed has no control.
Much as I don't support the project, to date I haven't seen any real viable way to stop it. Sure I can waste a few electrons signing an online petition but the reality is that the entities who have the right to approve or disapprove could care less about the input except from county voters. The reality is that those who bother to vote in Coos County elections are quite few and they tend to support the "anything for a buck" method of long term planning. Even the state of NH has a vested interest in this as one of the most lucrative taxes in the state is the room and meals tax of 9%. The state is also angling for a solution to the growth issues on the summit and this project will help. On a statewide basis perception is going to be more important so the approach will be not necessarily come out in public for full support but not throw any roadblocks behind closed doors.