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

The Westin Denver International AirportStatement of Estimated Annual Operating ResultsRooms ExpensePer OccupiedRoomRatio to RmsRevenueIn-Terminal HotelsHotel A $52.21 31.2%Hotel B 41.66 26.0%Hotel C 35.75 26.9%Hotel D 31.16 26.4%Hotel E 28.11 25.6%Hotel F 40.49 27.7%Westin HotelsHotel G $32.77 23.8%Hotel H 35.00 20.8%Hotel I 51.62 23.6%Hotel J 39.39 20.3%Hotel K 31.47 16.0%Weighted Average 38.83 24.7%Subject Stabilized Year $42.00 21.0%The comparable hotels achieved rooms expense between $28.11 and $52.21 PORwith a weighted average of $38.83, or 24.7 percent of rooms revenue. For astabilized year of operation, we project rooms expense of $42.00 POR, or 21.0percent of rooms revenue. Our estimate falls within the range of the comparablehotels on a POR and ratio basis. It should be noted that our ratio to rooms revenueis at the lower end of the range as the proposed Subject is projected to achievehigher room revenues in a stabilized year of operation due to our projected ADR.b. Food and Beverage Revenue and ExpenseFood and Beverage Revenues will be generated by sales in the restaurant andlounge, as well as through room service and banquets and catering. As previouslystated, while the proposed Subject will have a second restaurant located on themain terminal level (Level 5), this restaurant will be independently controlled by DIAsuch that no food and beverage revenue (or restaurant lease income) will passthrough the Subject hotel. Presented in the following table are the historical foodand beverage revenues of the comparable hotels.V-9