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

The Westin Denver International AirportExecutive Summaryestimate the Subject will have a market mix comprised of 60 percenttransient demand, 30 percent group demand, and 10 percent contract/crewdemand. The proposed Subject is estimated to achieve above its fair share of marketdemand beginning in the second full year of operation. We estimate that theWestin will achieve a stabilized occupancy of 74 percent in the third full yearof operation with an average rate of $180 expressed in 2012 value dollars.The following table reflects the estimated occupancy, market penetration,and average daily rate (“ADR”) for the Subject’s first five years of operationbeginning August 1, 2015.Estimated Occupancy, Market Penetration, and ADRCalendar Years 2015 to 2019Year OccupancyMarketPenetration ADR2015¹ 68% 94% $2092016 72% 100% $2242017 74% 106% $2312018 74% 106% $2382019 74% 106% $245¹ 2015 represents a stub year beginning August 1, 2015 andending December 31, 2015Source: PKF Consulting USABased on the projected occupancy and ADR for the proposed Subject, andour estimates of other operating revenues and expenses, we have projectedthe net operating income for the proposed Westin for a ten-year holdingperiod beginning August 1, 2015. The following table summarizes theresults of our analysis.I-6