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

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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
The Westin Denver International AirportHotel Market Analysisplans have been set; however, construction is scheduled for thecoming years. Officials are hoping that the credits markets willimprove for construction to commence.Woolley Classic Suites Hotel: The first Woolley Class Suites Hotelis proposed in the Denver-Aurora hotel market, proximate to GatewayPark. The 248-room proposed full-service luxury, all-suite hotel will becomprised of eight stories on 5.17 acres with guestrooms ranging insize from 650 to 950 square feet. The project is estimated to cost $50million.Denver: Belleview Station: A 2.3 million square-foot development on 18acres of land is proposed to include at least one 240-room full-servicehotel, along with homes, offices, and stores. The location of this largedevelopment is at Interstate 25 and Belleview Avenue. Theinfrastructure is currently being installed, and construction of thePhase I residential units was completed in 2009. Most of theBelleview Station development is projected to be completed in thenext five to seven years. Cable Building Hotel: The Cable Building is located at 1801Lawrence Street in downtown Denver. Between 13 and 14 stories areproposed to be added to the existing building and will feature retail,meeting space, and 217 guestrooms. The project is being developedby Central Development LLC. Construction on this project is to bedetermined.Hotel Gold Crown: This site for this project is located at the corner of15 th and Champa Streets. The original proposed project entailed a17-story hotel and condo tower. The tower would feature 264guestrooms on floors three through 14 and 12 condominiums on floors15 through 17. Architects of this project were forced to reduce thenumber of stories of this project from 17 to 13 floors. The firm iscurrently finalizing the redesign with a construction date to bedetermined.Hotel Palomar: A Hotel Palomar is proposed for the GreenwoodVillage at Interstate 25 and Arapahoe Road. The project is beingdeveloped by ING Clarion Partners and Kimpton Hotels. The 200-room hotel is planned to contain 25 condominium units, 10,000 squarefeet of meeting space, and a restaurant. The hotel will be adjacent tothe Arapahoe light rail station.IV-30
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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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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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