PKF Hotel Market Demand and Financial Analysis - DIA Business ...
PKF Hotel Market Demand and Financial Analysis - DIA Business ...
PKF Hotel Market Demand and Financial Analysis - DIA Business ...
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September 18, 2012Mr. Patrick HeckDeputy Chief <strong>Financial</strong> OfficerDenver International Airport201 West Colfax AvenueDenver, Colorado 80202Re: The Westin Denver International Airport – Denver, ColoradoDear Mr. Heck:Pursuant to your request, we have conducted a study of the potential marketdem<strong>and</strong> <strong>and</strong> developed a statement of the estimated annual operating results for aproposed 519-room Westin hotel (the “Subject”) to be located at the south terminalof the Denver International Airport (“<strong>DIA</strong>”) in Denver, Colorado. Throughout thisanalysis, we formally refer to the Subject as The Westin Denver InternationalAirport.The development of the Subject hotel is expected to be financed through theissuance of tax-exempt bonds coupled with some form of publicsubsidies/guarantees/loans. This report has been prepared for use by the DenverInternational Airport <strong>and</strong> its financial advisors in determining the estimated annualoperating results of the proposed Subject. The conclusions set forth in this reportare based on an analysis for supply <strong>and</strong> dem<strong>and</strong> for the transient lodging market inthe Denver-Aurora market area as of August 8, 2012, the completion date of ourfieldwork <strong>and</strong> primary market research.As in all studies of this type, the estimated results assume competent <strong>and</strong> efficientmarketing <strong>and</strong> operational management, <strong>and</strong> presume no significant change in thestatus of the competitive lodging industry from that as set forth in this report. Theterms of this engagement are such that we have no obligation to revise this reportto reflect events or conditions which occur subsequent to the date of completion ofour fieldwork; however, we are available to discuss the necessity for revision inview of changes in the economy or market factors which have a material effect onthe project.Since our projections of the market performance of the hotel are based onestimations <strong>and</strong> assumptions, which are subject to uncertainty <strong>and</strong> variation, we donot represent them as results that will actually be achieved; however, our<strong>PKF</strong> Consulting USA | 50 California Street, 19 th Floor | San Francisco, CA 94111TEL: 415 788 3102 | FAX: 415 433 7844 | www.pkfc.com
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