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

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The Westin Denver International AirportHotel Market AnalysisCompetitive Property Number Eight (Downtown)Embassy Suites Denver Downtown/Convention CenterLocationDescriptionAddress:1420 Stout Street Date opened: 2010Denver, CO 80202 Guestrooms: 403Distance from Subject:25.3 milesAmenitiesPicture••••••••••••Complimentary cooked-to-order breakfastManager's evening receptionIn-room diningApproximately 5,000 square feet of meeting spaceFitness centerIndoor swimming pool and whirlpoolCoin-operated laundry facilitieslaundry/valet serviceBusiness centerGift shopLocal area transportationHigh-speed Internet located throughout the hotelNotesThe Embassy Suites is located approximately 25 milessouthwest of the Subject in downtown Denver, adjacent tothe Colorado Convention Center. The hotel opened in2010 and features 403 guestrooms. The Embassy Suitesis affiliated with Hilton Hotels and Resorts and benefitsfrom Hilton's guest reward program and marketing efforts.The hotel represents Hilton's all-suite product.Historical PerformanceIn 2011, its first full year of operation, the EmbassySuites achieved an occupancy level below thecompetitive market average and an ADR above thecompetitive market average.IV-25
The Westin Denver International AirportHotel Market Analysisa. Historical Performance of the Competitive DowntownLodging MarketPresented in the following table is the historical performance of the competitivedowntown lodging market from 2007 through 2011, as well as YTD June 2011 and2012.The Westin Denver International AirportHistorical Performance of the Competitive MarketAnnual Percent Occupied Percent Market Percent PercentYear Supply Change Rooms Change Occupancy ADR Change RevPAR Change2007 1,419,850 - 986,512 - 69.5% $154.23 - $107.16 -2008 1,493,580 5.2% 1,037,392 5.2% 69.5% $163.21 5.8% $113.36 5.8%2009 1,493,580 0.0% 918,420 -11.5% 61.5% $149.80 -8.2% $92.11 -18.7%2010 1,515,480 1.5% 1,030,784 12.2% 68.0% $157.64 5.2% $107.22 16.4%2011 1,727,910 14.0% 1,207,794 17.2% 69.9% $163.37 3.6% $114.19 6.5%CAGR 5.0% - 5.2% - - 1.4% - 1.6% -YTD Jun '11 863,955 - 587,505 - 68.0% $161.42 - $109.77 -YTD Jun '12 863,955 0.0% 612,970 4.3% 70.9% $160.01 -0.9% $113.52 3.4%Source: PKF Consulting USAAs noted, supply for the competitive downtown lodging market increased at a CAGRof 5.0 percent over the past five years. In 2008, supply increased 5.2 percent overprior year levels as a result of the addition of the 202-room Ritz-Carlton in January2008. The 1.5 percent increase in supply in 2010 is attributable to the annualizedaddition of the 239-room Four Seasons in October 2010. Lastly, the 14.0 percentincrease in supply in 2011 is reflective of the annualized addition of the FourSeasons as well as the addition of the 403-room Embassy Suites in January 2011.Through YTD June 2012, supply remained stable with no further additions.Demand for the competitive downtown lodging market increased at a CAGR of 5.2percent between 2007 and 2011, in line with the increase in supply during this time.Over the past five years, market occupancy ranged from a low of 61.5 percent in2009, the height of the Great Recession, to a high of 69.9 percent through year-end2011. On average, the downtown competitive lodging market achieved a marketoccupancy of approximately 68 percent over the past five years. While demandincreased 5.2 percent in 2008, on par with the increase in supply during this time, asignificant decline in demand of 11.5 percent was experienced in 2009, whichresulted in the five-year low occupancy level of 61.5 percent. As the economybegan to improve, the competitive downtown lodging market experienced anincrease in demand of 12.2 percent in 2010 and 17.2 percent in 2011, resulting in afive-year high occupancy level of 69.9 percent. Through YTD June 2012, demandincreased 4.3 percent over prior year levels to 70.9 percent.IV-26
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September 18, 2012Mr. Patrick HeckD
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The Westin Denver International Air
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SECTION IEXECUTIVE SUMMARY
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SECTION IIIPROPERTY DESCRIPTION
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The Westin Denver International Hot
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ADDENDUM ACERTIFICATION OF THE CONS
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PKF Consulting appreciates the oppo
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STATEMENT OF ASSUMPTIONS AND LIMITI
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ADDENDUM CQUALIFICATIONS OF THE CON
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QUALIFICATIONS OFCHRISTOPHER A. KRA
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QUALIFICATIONS OFCATHERINE E. BOLST
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Appraisal for the Yountville Inn lo
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Sent via email to: patrick.heck@fly
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Mr. Patrick HeckJune 14, 2012Housto
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Mr. Patrick HeckJune 14, 2012In ord
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Mr. Patrick HeckJune 14, 20127. Mar
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ADDENDUM ESENSITIVITY ANALYSIS
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