PKF Hotel Market Demand and Financial Analysis - DIA Business ...

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The Westin Denver International AirportExecutive Summary4. Development TimelineThe proposed Subject is projected to open and be available for occupancy onAugust 1, 2015. Presented below is a development timeline for the overall projectprovided to us by Piper Jaffray.5. Scope and MethodologyIn conducting the study, we:Inspected the proposed Subject site and assessed the characteristics of the siteon factors such as accessibility, visibility, and location relative to demandgenerators on the marketability, and likely market mix of the project;Researched and analyzed current economic and demographic trends in thegreater Denver MSA to determine the impact on future lodging demand in themarket;I-3
The Westin Denver International AirportExecutive SummaryIdentified the competitive lodging supply located in the local market area andinterviewed managers of many of these competitive hotels. We also reviewedthe historical performance levels for each of the hotels in the identifiedcompetitive supply;Estimated the anticipated growth in demand for, and supply of, lodgingaccommodations in the competitive market area;Prepared a ten-year forecast of future lodging demand, market segmentationand occupancy rate for the identified competitive market;Developed a forecast of the likely occupancy levels and average daily roomrates (“ADR”) the Subject could reasonably achieve over its first ten years ofoperation (2015 to 2024); and,Developed a statement of estimated annual operating results of revenues,expenses, and the net operating income before the deduction of interest,amortization, and depreciation for the first ten years of operation for theproposed Subject. We based our analysis upon our review of the financialoperating performance of six comparable in-terminal hotels located throughoutNorth America, five comparable Westin hotels located throughout the U.S., andon our own general knowledge of the operating performance of upper upscale,full-service hotels in the Denver region.Several sources were used in compiling the background information and preparingthe analyses contained in this report. These resources included Trends in the HotelIndustry, published by PKF Consulting USA; Hotel Horizons®, published by PKFHospitality Research; data on the local lodging market gathered through directinterviews with managers of the competitive properties; data provided by sources inthe lodging chains with which competitive properties are affiliated; and, economicdata on the region from various local governmental and planning entities.B. SUMMARY OF CONCLUSIONSBased on the work program outlined above, we have developed an estimate of thepotential future operating performance of the proposed 519-room Westin. Theresults of our research and analyses are summarized in the following statements. The Denver MSA has experienced expansion in many sectors and continuesto attract commercial business. Economic indicators such as population andemployment growth, commercial office space absorption, and increasedairport passenger traffic all reflect the steady growth of the Denver MSA.Despite the recent economic downturn, Denver continues to benefit from itsdesignation as the hub for the U.S., and DIA currently receives one of theI-4
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ADDENDA
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ADDENDUM ACERTIFICATION OF THE CONS
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PKF Consulting appreciates the oppo
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STATEMENT OF ASSUMPTIONS AND LIMITI
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ADDENDUM CQUALIFICATIONS OF THE CON
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QUALIFICATIONS OFCHRISTOPHER A. KRA
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QUALIFICATIONS OFCATHERINE E. BOLST
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Appraisal for the Yountville Inn lo
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Sent via email to: patrick.heck@fly
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Mr. Patrick HeckJune 14, 2012Housto
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Mr. Patrick HeckJune 14, 2012In ord
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Mr. Patrick HeckJune 14, 20127. Mar
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ADDENDUM ESENSITIVITY ANALYSIS
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