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

Mr. Patrick HeckJune 14, 2012D. Anticipated Delivery DateWe should be able to commence the engagement within approximately two weeksof receiving your authorization to proceed. Barring unforeseen circumstances, weenvision completing our market and cash flow projections within approximately twoadditional weeks. The formal report will require an additional one to two weeks tocomplete, but per your request, a draft copy of our report will be provided to you nolater than August 1, 2012.E. Professional FeesOur fees are commensurate with services rendered and are based on timeexpended by our professionals, charged at our normal billing rates as indicatedbelow, and are not in any way contingent upon the results of our work. Our normalhourly billing rates at this time are as follows.Executive and Senior Vice PresidentsVice PresidentsAssociatesConsultants$350 - $500$250 - $325$175 - $225$125 - $150Given the nature of this assignment, our fees will be charged on a per diem basis atthe billing rates stated above for all professional time associated with the project,from commencement of the assignment until completion, including all meetings,revisions, and updates. While not limited to this amount, our estimated fees tocomplete the full updated analysis and formal report would be between $30,000and $35,000. It should be noted that this professional fee does not include the timeassociated with meetings with bond underwriters and legal counsel, our review ofthe offering circular, and updates to our analysis. Our experience in other projectsof this type is that the additional fee for this “follow-up” work typically ranges frombetween $20,000 and $30,000. Accordingly, our total professional fee for thisengagement may range from between $50,000 and $65,000.Should a representative of PKF Consulting be required to attend committeemeetings or presentations, our fees will continue to be billed to you on a per diembasis. As a point of reference, my billing rate is $350 per hour, and the averagebilling rate for a consultant is approximately $225 per hour.In addition to our professional fees, we require reimbursement for any out-of-pocketexpenses incurred in the performance of the assignment. Such expenses mayinclude transportation and lodging costs, out-of-pocket expenses incurred by uswhile in the field, supplies, and report printing costs.- 8 -