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

The Westin Denver International AirportArea Review6. Denver International AirportDomestic and international air travel activity within the MSA indicated stability of thetransportation and infrastructure of the MSA to bring demand for hotel rooms bycommercial, leisure, and convention travelers.The Denver metro area is serviced by DIA, which opened on February 28, 1995.The $4.9 billion, 53 square mile facility is now the largest airfield of any US airportand is designed to incorporate the latest technology and safety. In addition, theairport has developed an accomplished record for on-time performance, safety, andconvenience. In 2000, the United States Department of Transportation granted$21.5 million to Denver International Airport for construction of a sixth runway. Thepurpose of this runway is to increase the number of international flights that can beaccommodated, as well as ensure that the airport is operating efficiently. In 2011,DIA ranked as the 15 th busiest airport worldwide. DIA ranked as the fifth busiestairport nationwide in 2010 (the most recent information available).In the table below we have provided airport passenger statistics at the DenverInternational Airport (DIA) from 2000 through 2011, as well as year-to-date (YTD)April 2011 and 2012.Denver Air Travel TrafficDomestic International PercentageYear Inbound Outbound Subtotal Inbound Outbound Subtotal Total Change2000 18,926,570 18,963,023 37,889,593 432,121 429,973 862,094 38,751,687 -2001 17,626,640 17,634,502 35,261,142 420,057 411,607 831,664 36,092,806 -6.9%2002 17,432,875 17,447,202 34,880,077 389,645 382,362 772,007 35,652,084 -1.2%2003 18,263,806 18,296,014 36,559,820 480,453 464,865 945,318 37,505,138 5.2%2004 20,517,023 20,546,850 41,063,873 614,948 597,092 1,212,040 42,275,913 12.7%2005 20,872,569 20,910,073 41,782,642 812,969 791,902 1,604,871 43,387,513 2.6%2006 22,693,908 22,728,322 45,422,230 967,286 937,036 1,904,322 47,326,552 9.1%2007 23,810,915 23,862,374 47,673,289 1,111,484 1,078,579 2,190,063 49,863,352 5.4%2008 24,485,128 24,560,170 49,045,298 1,109,963 1,090,073 2,200,036 51,245,334 2.8%2009 24,092,818 24,183,236 48,276,054 946,634 944,797 1,891,431 50,167,485 -2.1%2010 24,992,757 25,071,981 50,064,738 967,359 952,941 1,920,300 51,985,038 3.6%2011 25,531,777 25,603,170 51,134,947 861,560 852,625 1,714,185 52,849,132 1.7%CAGR - - 2.8% - - 6.4% 2.9% -YTD 4/11 7,746,506 7,829,542 15,576,048 326,169 319,369 645,538 16,221,586 -YTD 4/12 7,801,265 7,852,346 15,653,611 302,298 304,051 606,349 16,259,960 0.2%Source: Denver International Airport Business CenterAs noted, passenger volume has increased to its highest level over this twelve-yearperiod to approximately 52.849 million in 2011. Of this total, internationalenplanements and deplanements totaled approximately 1.714 million. Passengervolume increased at a compound annual growth rate of 2.9 percent between 2000II-11