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

The Westin Denver International AirportArea ReviewDenver MSA Employment Statistics200000010.0%18000008.7% 9.0%9.0% 8.7%8.3%8.6%9.0%16000007.5%7.8%8.0%7.0%14000005.8%1,277,2276.0%12000005.0%1,186,9005.0%4.6% 4.4%3.7%10000003.9%4.3%8.5% 8.4% 0.0%4.0%3.0%8000002.0%6000001.0%400000EmploymentUnemployment RateSource: Moody’s AnalyticsAs noted, prior to the Great Recession, which occurred between December 2007and August 2009, the Denver MSA experienced unemployment rates in the high 3.0percent to mid-4.0 percent range. Since then, unemployment rates have fluctuatedbetween the high 7.0 percent range and 9.0 percent. In the second quarter 2012,the unemployment rate was 8.1 percent with an employment base of approximately1,240,500. Unemployment is projected to remain in the mid-8.0 percent rangethrough the fourth quarter of 2013.As of June 2012, Denver had an unemployment rate of 8.2 percent, up 0.1 percentin May 2012. As a point of comparison, the State of Colorado and the U.S. alsoindicated an unemployment rate of 8.2 percent during this same time.4. Commercial Office MarketAccording to the MarketView Report – Denver Office Second Quarter 2012published by CB Richard Ellis, the Denver office market showed positive signs inthe second quarter 2012. Improvements in vacancy and absorption bolstered gainsachieved in the previous quarter. Notable increases in direct asking rates were alsorealized. With a recorded 605,617 square feet of positive net absorption, the overallDenver office market experienced a fifth straight quarter of increase in occupiedspace. The resulting direct vacancy rate was 14.2 percent. The total availabilityrate decreased in the second quarter to 21.4 percent. There is 911,000 square feetII-8