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

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Mr. Patrick HeckJune 14, 2012In order to give you an understanding of the depth of our experience, attached foryour review is a partial listing of existing and proposed hotels, resorts and othertypes of properties our office has evaluated over the past several years.Given the historical role of PKF in the hospitality and real estate industries, and ourknowledge of the local market, we are of the opinion that there is no firm that canprovide the services available through us. More background and information on ourFirm can be obtained from our web site at www.pkfc.com.C. Proposed Work Program1. Introductory MeetingThe first phase of our engagement will involve meeting with you and yourassociates for the purpose of understanding your goals and objectives for thisproject, as well as to review in detail any preliminary development programming youmay have for this development.2. Site AnalysisSince the location of a hotel development within its market is of major importance tothe success of a project, we will analyze and evaluate the following factorsregarding the subject’s location and possible advantages/disadvantages incomparison with potential competitors:• Accessibility of the transportation network and demand generators• Visibility from various access points• Ambiance of the area as it might impact demand• Relationship to demand sources and attractions• Climate and seasonality which may impact demand3. Area ReviewWe will gather and analyze relevant statistical data regarding the local and regionalmarket area to determine whether the economic environment appears suitable forthe project. We will examine possible correlation between key economic factorsand the demand for hotel rooms and will use available forecasts of these indicatorsin our evaluation of potential future demand.4. Primary ResearchWe will perform primary market research within the local market. This will includeinterviews with key demand generators, inspection and evaluation of competitiveand comparable facilities and discussions with executives knowledgeable about thearea’s lodging market. Among those whom we may conduct such interviews are:- 5 -
Mr. Patrick HeckJune 14, 2012• Owners and managers of potentially competitive hotels in the DIA area aswell as comparable “in terminal” hotels located at other major airports• Appropriate city and county officials• Major employers in the market area• Management of local tourist attractions• Officials in tourism, development, and transportation• Bankers, editors, and development-organization representatives• Convention Bureau authorities• Redevelopment Agency officials• Local Real Estate professionals5. Supply and Demand EstimatesOn the basis of the foregoing analysis, we will estimate potential growth in both thedemand for, and the supply of lodging facilities in the competitive market area. Wewill then evaluate each of the principal segments of demand and describe theircharacteristics in this particular market and their historical performance. Then wewill estimate growth rates in demand for each of these market segments andproject the anticipated future demand.The next step is an estimate of the competitive supply, including historical growthtrends and potential additions to the supply. We will evaluate the competitivepotential of proposed or rumored projects with respect to your development, andestimate expected performance of the competitive supply over the projection periodfor the subject property.6. Facilities RecommendationsWe will review plans you may have for the project and prepare recommendationsfor facilities that, in our opinion, will best meet demonstrated market demand,including:• Concept and quality level of the property;• Number, size and mix of hotel rooms;• Appropriate franchise (“brand”) affiliations (if appropriate);• Sizing of restaurant and banquet and meeting space; and,• Related services and amenities to be provided, including parking,recreation and other facilities.These recommendations can provide you with background for a design programand will serve as the basis for our estimate of operating results.- 6 -
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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 112 and 113: SECTION VSTATEMENT OF ESTIMATED ANN
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Page 142 and 143: ADDENDA
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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
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Page 158 and 159: Sent via email to: patrick.heck@fly
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Page 167 and 168: ADDENDUM ESENSITIVITY ANALYSIS
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