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

The Westin Denver International AirportStatement of Estimated Annual Operating ResultsProperty Operation and MaintenancePer Available Room Ratio to Total Rev.In-Terminal HotelsHotel A $2,253 3.3%Hotel B 2,829 4.1%Hotel C 3,804 5.5%Hotel D 1,718 3.1%Hotel E 4,387 5.8%Hotel F 3,212 4.8%Westin HotelsHotel G $2,135 3.3%Hotel H 2,465 3.6%Hotel I 3,849 3.9%Hotel J 2,819 3.4%Hotel K 2,133 3.1%Weighted Average 2,885 4.1%Subject Stabilized Year $2,800 3.6%For a stabilized year of operation, POM expense is projected to be $2,800 PAR, or3.6 percent of total revenues. Based on our experience of evaluating new fullservicehotels, we are of the opinion that our estimate for the proposed Subject isreasonable. Our estimate is in line with the weighted average of the comparablehotels on a PAR and ratio basis.d. Utility CostsUtility cost includes electricity, gas, water, and steam. These costs vary amonghotels given the different building characteristics, HVAC systems, and building age.Presented in the following table are the historical utility costs of the comparablehotels.V-17