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

The Westin Denver International AirportDenver International AirportThe Westin Denver International AirportProjected Operating ResultsCalendar Years2015 2016 2017 2018 2019Number of Units: 216 519 519 519 519Number of Annual Rooms Available: 78,931 189,435 189,435 189,435 189,435Number of Rooms Occupied: 53,670 136,390 140,180 140,180 140,180Annual Occupancy: 68.0% 72.0% 74.0% 74.0% 74.0%Average Daily Rate: $191.00 $203.00 $209.00 $215.00 $221.00Revenue Per Available Room: $129.88 $146.16 $154.66 $159.10 $163.54Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount RatioRevenuesRooms $10,251,000 66.0% $27,687,000 66.7% $29,298,000 66.7% $30,139,000 66.7% $30,980,000 66.6%Food & Beverage 4,985,000 32.1% 13,048,000 31.4% 13,813,000 31.4% 14,227,000 31.5% 14,654,000 31.5%Other Operated Departments 176,000 1.1% 461,000 1.1% 488,000 1.1% 502,000 1.1% 517,000 1.1%Rentals and Other Income 117,000 0.8% 307,000 0.7% 325,000 0.7% 335,000 0.7% 345,000 0.7%Total Revenues 15,529,000 100.0% 41,503,000 100.0% 43,924,000 100.0% 45,203,000 100.0% 46,496,000 100.0%Departmental ExpensesRooms 2,572,000 25.1% 6,537,000 23.6% 6,825,000 23.3% 7,030,000 23.3% 7,241,000 23.4%Food & Beverage 3,355,000 67.3% 8,576,000 65.7% 8,979,000 65.0% 9,248,000 65.0% 9,525,000 65.0%Other Operated Departments 141,000 80.1% 368,000 79.8% 390,000 79.9% 402,000 80.1% 414,000 80.1%Total Departmental Expenses 6,068,000 39.1% 15,481,000 37.3% 16,194,000 36.9% 16,680,000 36.9% 17,180,000 36.9%Departmental Profit 9,461,000 60.9% 26,022,000 62.7% 27,730,000 63.1% 28,523,000 63.1% 29,316,000 63.1%Undistributed ExpensesAdministrative & General 1,337,000 8.6% 3,383,000 8.2% 3,514,000 8.0% 3,618,000 8.0% 3,725,000 8.0%Marketing 1,347,000 8.7% 3,330,000 8.0% 3,429,000 7.8% 3,532,000 7.8% 3,638,000 7.8%Property Operation and Maintenance 662,000 4.3% 1,636,000 3.9% 1,685,000 3.8% 1,735,000 3.8% 1,787,000 3.8%Utility Costs 591,000 3.8% 1,460,000 3.5% 1,504,000 3.4% 1,549,000 3.4% 1,596,000 3.4%Total Undistributed Operating Expenses 3,937,000 25.4% 9,809,000 23.6% 10,132,000 23.1% 10,434,000 23.1% 10,746,000 23.1%Gross Operating Profit 5,524,000 35.6% 16,213,000 39.1% 17,598,000 40.1% 18,089,000 40.0% 18,570,000 39.9%Base Management Fee 285,000 1.8% 728,000 1.8% 1,010,000 2.3% 1,335,000 3.0% 1,374,000 3.0%Fixed ExpensesProperty Taxes 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Insurance 177,000 1.1% 438,000 1.1% 451,000 1.0% 465,000 1.0% 479,000 1.0%Total Fixed Expenses 177,000 1.1% 438,000 1.1% 451,000 1.0% 465,000 1.0% 479,000 1.0%Net Operating Income 5,062,000 32.6% 15,047,000 36.3% 16,137,000 36.7% 16,289,000 36.0% 16,717,000 36.0%FF&E Reserve 155,000 1.0% 415,000 1.0% 878,000 2.0% 1,808,000 4.0% 2,325,000 5.0%Net Operating Income After Reserve $4,907,000 31.6% $14,632,000 35.3% $15,259,000 34.7% $14,481,000 32.0% $14,392,000 31.0%Subordinate FeesSubordinate Management Fee $0 0.0% $82,000 0.2% $207,000 0.5% $317,000 0.7% $458,000 1.0%Subordinate CapEx Reserve $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0%Total Senior Fees $0 0.0% $82,000 0.2% $207,000 0.5% $317,000 0.7% $458,000 1.0%Net Operating Income After Subordinate Fees $4,907,000 31.6% $14,550,000 35.1% $15,052,000 34.3% $14,164,000 31.3% $13,934,000 30.0%Source: PKF Consulting USA Five Months of Operation- 4 -