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

The Westin Denver International AirportExecutive Summaryhighest levels of passenger volume across airports nationwide, which isanticipated to benefit the proposed Subject in the future. The proposed Subject will benefit from its affiliation with Starwood Hotels andResorts as an upper upscale Westin hotel. The proposed Subject willrepresent the only full-service Starwood hotel in the Denver InternationalAirport lodging market.The hotels that form the overall identified competitive market achievedoccupancy levels in the low 60s to low 70s from 2007 to 2011. Growth inaverage daily room rate (ADR) of 5.5 percent was achieved in 2008 beforeADR declined 10.8 percent in 2009 as a result of the economic downturn. In2010 and 2011, the competitive market achieved ADR growth of 4.2 percentper annum. Demand increased through YTD June 2012 while ADRremained relatively unchanged. Presented in the following table is thehistorical and projected performance of the identified competitive market.Competitive Hotel MarketHistorical and Projected Growth in Supply andDemand2012 to 2019YearTotalSupply 1TotalDemand 2MarketOccupancy2007 1,794,340 1,263,201 70%2008 1,868,070 1,313,504 70%2009 1,892,525 1,210,102 64%2010 1,948,735 1,351,501 69%2011 2,161,165 1,535,193 71%2012 2,161,165 1,564,300 72%2013 2,161,165 1,556,100 72%2014 2,245,480 1,571,900 70%2015 2,324,320 1,627,100 70%2016 2,434,915 1,704,400 70%2017 2,434,915 1,704,500 70%2018 2,434,915 1,704,500 70%2019 2,434,915 1,704,400 70%CAGR 1.7% 1.2% -Note: CAGR (Compound Annual Growth Rate 2012 to2019)1 Total Supply equals annual room nights available2 Total demand equals annual room nights occupiedSource: PKF Consulting USA The Subject will be positioned as an upper upscale hotel that will caterprimarily to the transient and group market segments. Specifically, weI-5