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

The Westin Denver International AirportStatement of Estimated Annual Operating ResultsThe Westin Denver International AirportProjected Operating ResultsCalendar Years2020 2021 2022 20232024Number of Units: 519 519 519 519 519Number of Annual Rooms Available: 189,435 189,435 189,435 189,435 189,435Number of Rooms Occupied: 140,180 140,180 140,180 140,180 140,180Annual Occupancy: 74.0% 74.0% 74.0% 74.0% 74.0%Average Daily Rate: $252.00 $260.00 $268.00 $276.00 $284.00Revenue Per Available Room: $186.48 $192.40 $198.32 $204.24 $210.16Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount RatioRevenuesRooms $35,325,000 68.9% $36,447,000 68.9% $37,568,000 68.9% $38,690,000 68.9% $39,811,000 68.9%Food & Beverage 15,094,000 29.4% 15,547,000 29.4% 16,013,000 29.4% 16,494,000 29.4% 16,988,000 29.4%Other Operated Departments 533,000 1.0% 549,000 1.0% 565,000 1.0% 582,000 1.0% 600,000 1.0%Rentals and Other Income 355,000 0.7% 366,000 0.7% 377,000 0.7% 388,000 0.7% 400,000 0.7%Total Revenues 51,307,000 100.0% 52,909,000 100.0% 54,523,000 100.0% 56,154,000 100.0% 57,799,000 100.0%Departmental ExpensesRooms 7,458,000 21.1% 7,682,000 21.1% 7,912,000 21.1% 8,150,000 21.1% 8,394,000 21.1%Food & Beverage 9,811,000 65.0% 10,105,000 65.0% 10,409,000 65.0% 10,721,000 65.0% 11,042,000 65.0%Other Operated Departments 426,000 79.9% 439,000 80.0% 452,000 80.0% 466,000 80.1% 480,000 80.0%Total Departmental Expenses 17,695,000 34.5% 18,226,000 34.4% 18,773,000 34.4% 19,337,000 34.4% 19,916,000 34.5%Departmental Profit 33,612,000 65.5% 34,683,000 65.6% 35,750,000 65.6% 36,817,000 65.6% 37,883,000 65.5%Undistributed ExpensesAdministrative & General 3,922,000 7.6% 4,042,000 7.6% 4,164,000 7.6% 4,288,000 7.6% 4,416,000 7.6%Marketing 3,747,000 7.3% 3,860,000 7.3% 3,976,000 7.3% 4,095,000 7.3% 4,218,000 7.3%Property Operation and Maintenance 1,841,000 3.6% 1,896,000 3.6% 1,953,000 3.6% 2,012,000 3.6% 2,072,000 3.6%Utility Costs 1,644,000 3.2% 1,693,000 3.2% 1,744,000 3.2% 1,796,000 3.2% 1,850,000 3.2%Total Undistributed Operating Expenses 11,154,000 21.7% 11,491,000 21.7% 11,837,000 21.7% 12,191,000 21.7% 12,556,000 21.7%Gross Operating Profit 22,458,000 43.8% 23,192,000 43.8% 23,913,000 43.9% 24,626,000 43.9% 25,327,000 43.8%Base Management Fee 1,417,000 2.8% 1,461,000 2.8% 1,505,000 2.8% 1,546,000 2.8% 1,592,000 2.8%Fixed ExpensesProperty Taxes 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Insurance 493,000 1.0% 508,000 1.0% 523,000 1.0% 539,000 1.0% 555,000 1.0%Total Fixed Expenses 493,000 1.0% 508,000 1.0% 523,000 1.0% 539,000 1.0% 555,000 1.0%Net Operating Income 20,548,000 40.0% 21,223,000 40.1% 21,885,000 40.1% 22,541,000 40.1% 23,180,000 40.1%FF&E Reserve 3,078,000 6.0% 3,175,000 6.0% 3,271,000 6.0% 3,369,000 6.0% 3,468,000 6.0%Net Operating Income After Reserve $17,470,000 34.0% $18,048,000 34.1% $18,614,000 34.1% $19,172,000 34.1% $19,712,000 34.1%Subordinate FeesSubordinate Management Fee $472,000 0.9% $487,000 0.9% $502,000 0.9% $515,000 0.9% $531,000 0.9%Subordinate CapEx Reserve $513,000 1.0% $1,058,000 2.0% $1,090,000 2.0% $1,685,000 3.0% $1,734,000 3.0%Total Senior Fees $985,000 1.9% $1,545,000 2.9% $1,592,000 2.9% $2,200,000 3.9% $2,265,000 3.9%Net Operating Income After Subordinate Fees $16,485,000 32.1% $16,503,000 31.2% $17,022,000 31.2% $16,972,000 30.2% $17,447,000 30.2%Source: PKF Consulting USAV-29