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

The Westin Denver International AirportHotel Market Analysis4. Additions to SupplyBased on our research, we have identified a number of potential additions to supplyin the Denver lodging market. Numerous hotels are in various planning stages inthe downtown and airport hotel markets. However, due to the speculative nature ofthe proposed properties, coupled with the high cost of construction, it is unlikely thatmany of these projects are expected to come to fruition in the near term, thuslimiting the number of rooms that will actually enter the market. For the purpose ofthis analysis, we have only included one hotel development in our analysis of supplyand demand for the proposed Subject due to the speculative nature or lack ofcompetitiveness of each project. The project we included is the 231-roomRenaissance hotel which is located in downtown Denver and is scheduled to openin 2014. Presented in the following paragraphs is a review of each of the variousproposed projects.Aurora: Anschutz Medial Campus Village Project: A proposed 250 to 300-room full-service hotel is planned as part of the Anschutz MedicalCampus Village project. The hotel is proposed by Corporex Coloradoand is proposed to feature a 30,000-square-foot conference center, afull-service restaurant, and state-of-the-art meeting facilities. Thishotel is part of the Phase I development project. Anschutz Medical Campus: Approximately 15 acres of thisdevelopment have been set aside for the development of two or threehotels. This hotel is still in the pre-planning stage.Gaylord Resort & Convention Center: Gaylord Hotels & Resorts isproposing a Western-style convention hotel featuring 1,500guestrooms and more than 400,000 square feet of exhibition space.Plans also include outdoor event space, a children’s playground, alarge parking area, future waterpark, several gardens and an outdoorfireplace. Development plans also include a retail town center andrestaurants. The development site for this $800 million project islocated within the High Point Master Plan Development near DIA at64 th Avenue and Tower Road. Based on discussions withrepresentatives of Gaylord Hotels & Resorts, we understand that thisproject has been terminated.Hyatt Place Hotel & Conference Center: A 163-room Hyatt Placeand conference center are proposed in the Anschutz Medical Campusdevelopment at Montview Boulevard and Ursala Drive. The hotel andconference center are proposed as part of a mixed-use developmentalso containing an office building for University Physicians, Inc. SiteIV-29