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

The Westin Denver International AirportArea ReviewPresented in the following table are the projected passenger enplanements at DIAfrom 2012 through 2018.Projected Enplaned Passengers by Airline (Baseline Projections)Airline 2012 2013 2014 2015 2016 2017 2018United Airlines GroupMainline 7,018,000 7,116,000 7,209,000 7,297,000 7,378,000 7,452,000 7,521,000United Express 4,358,000 4,434,000 4,517,000 4,608,000 4,707,000 4,815,000 4,930,000Subtotal 11,376,000 11,550,000 11,726,000 11,905,000 12,085,000 12,267,000 12,451,000Frontier 5,722,000 5,800,000 5,878,000 5,958,000 6,040,000 6,123,000 6,207,000Southwest 5,750,000 5,947,000 6,129,000 6,296,000 6,467,000 6,634,000 6,805,000Other 4,376,000 4,458,000 4,544,000 4,629,000 4,717,000 4,807,000 4,895,000Subtotal 15,848,000 16,205,000 16,551,000 16,883,000 17,224,000 17,564,000 17,907,000Total 27,224,000 27,755,000 28,277,000 28,788,000 29,309,000 29,831,000 30,358,000Source: Denver International AirportTotal passenger enplanements are projected to increase from approximately 27.224million in 2012 to 30.358 million in 2018. The United Airlines Group is estimated toaccommodate approximately 41.0 percent of total passenger enplanements.The proposed Subject is part of a $500 million expansion at DIA. An adjunctterminal is being built next to the Jeppesen terminal and will house a railway station,to be run by RTD’s FasTracks systems, as stated previously in this section, and a519-room hotel (the proposed Subject). The rail link will provide a direct linkagebetween downtown Denver and the airport. The hotel component of this project isprojected to be completed in August 2015.One of the biggest advantages DIA has over other U.S. international airports is itspotential for expansion. With a significant amount of vacant space surrounding theairport, we understand that there is the potential to build six additional runways aswell as additional gates to the existing and new concourses. This potential build-outcan only serve to benefit the proposed Subject immensely as passenger trafficincreases in the coming years and decades. Should DIA continue to be built out,we understand that the development of additional hotels would be considered toaccommodate an increase in passenger traffic and lodging demand.7. Colorado Convention CenterThe $126.3 million Colorado Convention Center was completed in the spring of1990 and became a strong influence on the area lodging industry, acting as both amajor generator of room nights downtown and room night compression citywide.Currently, the convention center contains a 292,000 square foot exhibit hall, whichfeatures clear span seating for 7,000 people. At street level, the convention centerII-14