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

The Westin Denver International AirportStatement of Estimated Annual Operating ResultsThe Westin Denver International AirportOperating Results of Comparable In-Terminal HotelsHotel D Hotel E Hotel FRatio Per Room P.O.R. Ratio Per Room P.O.R. Ratio Per Room P.O.R.RevenuesRooms 64.8% $35,968 $117.83 67.0% $50,539 $109.65 59.9% $39,751 $146.13Food & Beverage 33.3% 18,491 60.57 29.3% 22,096 47.94 33.7% 22,354 82.18Other Operated Departments 0.8% 451 1.48 3.7% 2,786 6.04 3.8% 2,515 9.25Rentals and Other Income 1.1% 623 2.04 0.0% 0 0.00 2.6% 1,695 6.23Total Revenues 100.0% 55,533 181.92 100.0% 75,421 163.63 100.0% 66,315 243.78Departmental ExpensesRooms 26.4% 9,513 31.16 25.6% 12,958 28.11 27.7% 11,014 40.49Food & Beverage 63.7% 11,782 38.60 59.9% 13,245 28.74 48.7% 10,895 40.05Other Operated Departments 49.4% 223 0.73 67.2% 1,871 4.06 32.8% 825 3.03Total Departmental Expenses 38.7% 21,518 70.49 37.2% 28,075 60.91 34.3% 22,735 83.57Departmental Profit 61.3% 34,015 111.43 62.8% 47,346 102.72 65.7% 43,581 160.21Undistributed ExpensesAdministrative & General 9.4% 5,233 17.14 9.0% 6,791 14.73 7.9% 5,206 19.14Marketing (Including Franchise Fees) 7.6% 4,227 13.85 6.1% 4,610 10.00 6.5% 4,287 15.76Property Operation and Maintenance 3.1% 1,718 5.63 5.8% 4,387 9.52 4.8% 3,212 11.81Utility Costs 3.9% 2,180 7.14 4.8% 3,656 7.93 2.0% 1,318 4.84Total Undistributed Operating Expenses 24.1% 13,358 43.76 25.8% 19,445 42.19 21.1% 14,023 51.55Gross Operating Profit 37.2% 20,657 67.67 37.0% 27,901 60.53 44.6% 29,558 108.66Base Management Fee 5.6% 3,091 10.13 3.0% 2,263 4.91 2.5% 1,658 6.09Fixed ExpensesIncentive Management Fee 0.0% 0 0.00 2.3% 1,728 3.75 0.0% 0 0.00Property Taxes 0.0% 0 0.00 0.8% 602 1.31 4.1% 2,721 10.00Insurance 0.5% 280 0.92 1.0% 772 1.67 0.6% 407 1.49Total Fixed Expenses 0.5% 280 0.92 4.1% 3,102 6.73 4.7% 3,127 11.50Net Operating Income 31.1% 17,286 56.63 29.9% 22,537 48.89 37.4% 24,773 91.07FF&E Reserve/Capital Expenditures 4.0% 2,221 7.28 4.0% 3,017 6.55 4.0% 2,653 9.75Net Operating Income After Reserve 27.1% $15,065 $49.35 25.9% $19,520 $42.35 33.4% $22,120 $81.32Source: PKF Consulting USAV-4