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

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The Westin Denver International AirportStatement of Estimated Annual Operating ResultsFood & Beverage RevenueTotal Amount Per Occupied RoomIn-Terminal HotelsHotel A $8,644,505 $47.14Hotel B 7,634,817 60.12Hotel C 11,833,408 85.54Hotel D 6,212,911 60.57Hotel E 7,424,159 47.94Hotel F $19,224,327 82.18Westin HotelsHotel G $9,028,241 78.62Hotel H 8,551,741 72.47Hotel I 12,508,359 100.17Hotel J 7,789,645 82.35Hotel K 4,792,990 42.37Weighted Average N/A 68.84Subject Stabilized Year $11,915,000 $85.00The comparable hotels indicated a range in food and beverage revenue of between$42.37 and $100.17 POR. For a stabilized year of operation, we estimate food andbeverage revenue at the proposed Subject to be approximately $85.00 POR, or atotal of $11,915,000, stated in 2012 value dollars. Our estimate falls within therange indicated by the comparable hotels. Furthermore, based on 29,000 squarefeet of meeting space, our estimate indicates that approximately $410 of food andbeverage revenue will be generated per square foot of meeting space. This is inline with the food and beverage revenue generated on a price per square foot basisof the comparable hotels and reflects the fact that the Subject, with approximately30 percent of its demand from the group segment, is projected to be a popularvenue for group meetings and banquet functions given its strategic location.Food and beverage expense includes product costs, payroll and relatedexpenses, and other items such as laundry and linen, china, glassware andsilverware, uniform costs, supplies, and other miscellaneous items. Presented inthe following table are the historical food and beverage expenses of the comparablehotels.V-10
The Westin Denver International AirportStatement of Estimated Annual Operating ResultsFood & Beverage ExpenseRatio to F&B Rev.In-Terminal HotelsHotel A 72.4%Hotel B 70.7%Hotel C 77.5%Hotel D 63.7%Hotel E 59.9%Hotel F 48.7%Westin HotelsHotel G 63.9%Hotel H 66.7%Hotel I 67.2%Hotel J 65.2%Hotel K 63.7%Weighted Average 64.3%Subject Stabilized Year 65.0%Food and beverage expense at the Subject is estimated to be approximately 65.0percent of departmental revenue. As noted, our estimate is in line with the food andbeverage expense ratio of the weighted average of the comparable hotels and isdeemed reasonable based on the high percentage of banquet food, beverage andmeeting space rental revenues.c. Other Operated Departments Revenue and ExpenseOther operated departments revenue primarily includes revenue fromtelecommunications services (phone and Internet), business services, guest laundryservices, in-room movies, and other miscellaneous items. Presented in thefollowing table are the historical other operated departments revenue for thecomparable hotels.V-11
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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 72 and 73: The Westin Denver International Air
Page 112 and 113: SECTION VSTATEMENT OF ESTIMATED ANN
Page 142 and 143: ADDENDA
Page 144 and 145: ADDENDUM ACERTIFICATION OF THE CONS
Page 146 and 147: PKF Consulting appreciates the oppo
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
Page 160 and 161: Mr. Patrick HeckJune 14, 2012Housto
Page 162 and 163: Mr. Patrick HeckJune 14, 2012In ord
Page 164 and 165: Mr. Patrick HeckJune 14, 20127. Mar
Page 167 and 168: ADDENDUM ESENSITIVITY ANALYSIS
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