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

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The Westin Denver International AirportStatement of Estimated Annual Operating ResultsThe Westin Denver International AirportOperating Results of Comparable Westin HotelsHotel G Hotel H Hotel IRatio Per Room P.O.R. Ratio Per Room P.O.R. Ratio Per Room P.O.R.RevenuesRooms 60.5% $39,167 $137.79 66.9% $46,144 $168.15 66.1% $64,420 $218.73Food & Beverage 34.5% 22,347 78.62 28.8% 19,888 72.47 30.3% 29,501 100.17Other Operated Departments 4.4% 2,861 10.07 3.5% 2,446 8.91 1.3% 1,258 4.27Rentals and Other Income 0.6% 375 1.32 0.7% 505 1.84 2.4% 2,306 7.83Total Revenues 100.0% 64,750 227.79 100.0% 68,983 251.37 100.0% 97,485 331.00Departmental ExpensesRooms 23.8% 9,314 32.77 20.8% 9,606 35.00 23.6% 15,202 51.62Food & Beverage 63.9% 14,281 50.24 66.7% 13,258 48.31 67.2% 19,825 67.31Other Operated Departments 73.2% 2,094 7.37 78.3% 1,915 6.98 108.3% 1,363 4.63Total Departmental Expenses 39.7% 25,689 90.37 35.9% 24,779 90.30 37.3% 36,390 123.56Departmental Profit 60.3% 39,061 137.41 64.1% 44,204 161.08 62.7% 61,095 207.44Undistributed ExpensesAdministrative & General 7.4% 4,776 16.80 9.0% 6,180 22.52 6.4% 6,259 21.25Marketing (Including Franchise Fees) 6.6% 4,262 14.99 12.9% 8,866 32.31 7.1% 6,963 23.64Property Operation and Maintenance 3.3% 2,135 7.51 3.6% 2,465 8.98 3.9% 3,849 13.07Utility Costs 2.9% 1,909 6.72 3.7% 2,545 9.27 2.2% 2,166 7.36Total Undistributed Operating Expenses 20.2% 13,082 46.02 29.1% 20,056 73.08 19.7% 19,237 65.32Gross Operating Profit 40.1% 25,979 91.39 35.0% 24,147 87.99 42.9% 41,858 142.13Base Management Fee 7.0% 4,511 15.87 1.0% 690 2.51 2.8% 2,770 9.40Fixed ExpensesIncentive Management Fee 0.0% 0 0.00 0.0% 0 0.00Property Taxes 0.0% 0 0.00 5.2% 3,611 13.16 5.5% 5,404 18.35Insurance 0.8% 545 1.92 0.4% 296 1.08 0.6% 580 1.97Total Fixed Expenses 0.8% 545 1.92 5.7% 3,908 14.24 6.1% 5,984 20.32Net Operating Income 32.3% 20,923 73.61 28.3% 19,550 71.24 34.0% 33,104 112.40FF&E Reserve/Capital Expenditures 4.0% 2,590 9.11 4.0% 2,759 10.05 4.0% 3,899 13.24Net Operating Income After Reserve 28.3% $18,333 $64.50 24.3% $16,791 $61.18 30.0% $29,205 $99.16Source: PKF Consulting USAV-6
The Westin Denver International AirportStatement of Estimated Annual Operating ResultsThe Westin Denver International AirportOperating Results of Comparable Westin HotelsHotel J Hotel K Weighted AverageRatio Per Room P.O.R. Ratio Per Room P.O.R. Ratio Per Room P.O.R.RevenuesRooms 66.6% $54,534 $194.29 79.5% $54,746 $196.49 66.7% $47,301 $156.93Food & Beverage 28.2% 23,115 82.35 17.1% 11,805 42.37 29.3% $20,750 $68.84Other Operated Departments 4.5% 3,647 12.99 3.4% 2,337 8.39 3.0% $2,116 $7.02Rentals and Other Income 0.6% 526 1.87 0.0% 0 0.00 1.0% $712 $2.36Total Revenues 100.0% 81,822 291.51 100.0% 68,888 247.25 100.0% $70,878 $235.16Departmental ExpensesRooms 20.3% 11,056 39.39 16.0% 8,769 31.47 24.7% $11,703 38.83Food & Beverage 65.2% 15,064 53.67 63.7% 7,524 27.00 64.3% $13,337 44.25Other Operated Departments 96.2% 3,507 12.49 77.0% 1,798 6.45 67.5% $1,429 4.74Total Departmental Expenses 36.2% 29,626 105.55 26.3% 18,090 64.93 37.3% $26,469 87.82Departmental Profit 63.8% 52,196 185.96 73.7% 50,798 182.32 62.7% $44,409 147.34Undistributed ExpensesAdministrative & General 8.7% 7,135 25.42 6.0% 4,124 14.80 8.2% $5,807 19.27Marketing (Including Franchise Fees) 7.6% 6,212 22.13 12.3% 8,464 30.38 7.7% $5,433 18.03Property Operation and Maintenance 3.4% 2,819 10.04 3.1% 2,133 7.66 4.1% $2,885 9.57Utility Costs 2.5% 2,014 7.17 3.4% 2,360 8.47 3.3% $2,321 7.70Total Undistributed Operating Expenses 22.2% 18,180 64.77 24.8% 17,081 61.31 23.2% $16,446 54.56Gross Operating Profit 41.6% 34,016 121.19 48.9% 33,717 121.01 39.5% $27,964 92.78Base Management Fee 2.9% 2,398 8.54 1.5% 1,046 3.75 3.1% $2,168 7.19Fixed ExpensesIncentive Management Fee 0.0% 0 0.00 0.8% 565 2.03 0.3% $238 0.79Property Taxes 2.3% 1,875 6.68 7.6% 5,265 18.90 2.9% $2,028 6.73Insurance 1.4% 1,166 4.15 0.9% 646 2.32 0.7% $529 1.75Total Fixed Expenses 3.7% 3,041 10.83 9.4% 6,477 23.24 3.6% $2,557 8.48Net Operating Income 34.9% 28,577 101.81 38.0% 26,194 94.01 32.8% $23,239 77.10FF&E Reserve/Capital Expenditures 4.0% 3,273 11.66 4.0% 2,756 9.89 4.0% $2,835 9.41Net Operating Income After Reserve 30.9% $25,305 $90.15 34.0% $23,439 $84.12 28.8% $20,404 $67.69Source: PKF Consulting USAV-7
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September 18, 2012Mr. Patrick HeckD
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The Westin Denver International Air
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SECTION IEXECUTIVE SUMMARY
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SECTION IIIPROPERTY DESCRIPTION
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The Westin Denver International Hot
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Page 112 and 113: SECTION VSTATEMENT OF ESTIMATED ANN
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Page 144 and 145: ADDENDUM ACERTIFICATION OF THE CONS
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Page 148 and 149: STATEMENT OF ASSUMPTIONS AND LIMITI
Page 150 and 151: ADDENDUM CQUALIFICATIONS OF THE CON
Page 152 and 153: QUALIFICATIONS OFCHRISTOPHER A. KRA
Page 154 and 155: QUALIFICATIONS OFCATHERINE E. BOLST
Page 156 and 157: Appraisal for the Yountville Inn lo
Page 158 and 159: Sent via email to: patrick.heck@fly
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Page 164 and 165: Mr. Patrick HeckJune 14, 20127. Mar
Page 167 and 168: ADDENDUM ESENSITIVITY ANALYSIS
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