PKF Hotel Market Demand and Financial Analysis - DIA Business ...
PKF Hotel Market Demand and Financial Analysis - DIA Business ...
PKF Hotel Market Demand and Financial Analysis - DIA Business ...
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The Westin Denver International Airport<strong>Hotel</strong> <strong>Market</strong> <strong>Analysis</strong>2011 Mix of <strong>Dem<strong>and</strong></strong>Overall Competitive <strong>Market</strong><strong>Market</strong> Segment Room Nights RatioTransient 769,400 50%Group 683,600 45%Contract/Crew 82,200 5%Total 1,535,200 100%Source: <strong>PKF</strong> Consulting USAThe transient (commercial <strong>and</strong> leisure/discount) market segment comprisedapproximately 50 percent, or approximately 769,400 room nights, of the total marketdem<strong>and</strong> for 2011. The transient commercial market segment consists primarily ofmanagers, sales representatives, lawyers, investors, potential employees, <strong>and</strong> othertravelers visiting local companies based in Denver. This segment also includestransient government dem<strong>and</strong> <strong>and</strong> travelers from private <strong>and</strong> public companies,interest groups visiting local government offices, <strong>and</strong> visitors to the many medicalfacilities located throughout the region. As Denver is the capital of Colorado, thereis a large government presence. <strong>Dem<strong>and</strong></strong> for rooms in this segment is highestMonday through Thursday.The transient leisure/discount market segment consists of dem<strong>and</strong> primarily drivenby the numerous scenic attractions <strong>and</strong> bountiful recreational activities offeredthroughout the region. Leisure/discount travel includes those who travel to theDenver area to experience its year-round recreational opportunities, myriad ofsports teams <strong>and</strong> arenas, <strong>and</strong> those who patron the many museums <strong>and</strong> historicalvenues of Denver. One of Denver’s largest dem<strong>and</strong> generators is its abundance ofcultural events <strong>and</strong> venues centered in <strong>and</strong> around downtown Denver. Thissegment also includes visitors to residents in the area, as well as motorists on themajor Interstates in the region.The group market segment comprised approximately 45 percent of the overallmarket, or 683,600 room nights in 2011. The group market segment consistsprimarily of dem<strong>and</strong> generated from events at the Colorado Convention Center, inhouseassociation meetings, <strong>and</strong> social, military, educational, religious, <strong>and</strong>fraternal groups (SMERF) that are traveling to the area, <strong>and</strong> special events such asfestivals <strong>and</strong> weddings. Federal <strong>and</strong> state government groups are also included inthis segment. As Denver as the central hub of the U.S., this segment generates alarge amount of room nights on an annual basis.The contract/crew market segment comprised 5.0 percent of the overall market, orapproximately 82,200 room nights, in 2011. The contract/crew market segment iscomprised primarily of pilots, flight attendants, <strong>and</strong> airline crew business from thoseairlines utilizing <strong>DIA</strong>. Despite usual lower rates in comparison to other segments,this market is primarily attractive for its consistency. This dem<strong>and</strong> isaccommodated by the primary competitive airport hotels.IV-32
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