HomeMy WebLinkAboutCT 03-02; CARLSBAD RANCH PLANNING AREA 5; MARKET STUDY; 2000-09-01INTERNATIONAL
Prepared by:
HVS International
Market Study and Forecast of
Occupancy and Average Rate
Proposed Full-Service H:otel
Carlsbad, California
116 New Montgomery, Suite 620
San Francisco, California 94105
( 415) 896-0868
( 415) 896-0516 fax
Submitted to:
Mr. Tim Stripe
Co-President
Grand Pacific Resorts
5900 Pasteur Court, Suite 200
Carlsbad, California 92008
(760) 431-8500
(760) 431-4580 fax SOP Cf(oOI A--
CuP o3o L\~
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i¢iPMA@
116 New Montgomery Street
Suite 620
San Francisco, California 94105
415-896-0868
415-896-0516 FAX
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Specialists in Hotel Consulting
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September 1, 2000
Mr. Tim Stripe
Co-President
Grand Pacific Resorts
5900 Pasteur Court, Suite 200
Carlsbad, California 92008
(760) 431-8500
Re: Proposed Full-Service Hotel
Carlsbad, California
HVS Reference Number: 2000040114
Dear Mr. Stripe:
Pursuant to your request, we herewith submit our market study and
forecast of occupancy and average rate pertaining to the above-captioned
property. We have conducted an inspection of the subject site and analyzed
the hostelry market conditions in the Carlsbad, California area.
This report is being prepared for use by Grand Pacific Resorts in connection
with the development of the proposed subject property. No information
presented in this report should · be distributed to or relied upon by the
public or third parties without the express written consent of HVS
International.
This consulting assignment has been performed and reported in
conformance to the requirements of the Uniform Standards of Professional
Appraisal Practice (USPAP), as provided by the Appraisal Foundation.
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We do hereby certify that we have no undisclosed interest in the property,
and our employment and compensation are not contingent upon our
findings. Additionally, the market study is expressly prepared subject to all
normal and specific assumptions and limiting conditions, contained
throughout and attached to this report.
JH/ES/SRM/leg
Very truly yours,
HVS International
a{\~
Jennifer Hsu
Consulting and Valuation Analyst
Elaine Sahlins
Director
. Suzanne R. Mellen, CRE, MAI
Managing Director
HVS International, San Francisco, California Proposed Full-Service Hotel Quality Assurance
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Quality Assurance
The HVS International division of M&R Valuation Services, Inc., strives to
achieve the highest standards of quality during all phases of the consulting
process. It is our goal to provide clients with the finest market study report
available. The following staff members acknowledge their contribution to
this report.
Linda E. Gee -Editing and Report Production
Editor (Extension 209)
~~
Jennifer Hsu -Fieldwork, Analysis, and Text
Consulting and Valuation Analyst (Extension 306)
~
Elaine Sahlins -Fieldwork, Analysis, and Review
Director (Extension 325)
Suzanne R. ellen, CRE, MAI -Analysis and Review
Managing Director (Extension 108)
We are available to answer any questions and are pleased to have provided
you with the finest quality product available. Kay McClanahan (extension
305) is available to answer any billing questions. We look forward to
serving you again in the future.
HVS International, San Francisco, California Proposed Full-Service Hotel Table of Contents
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Table of Contents
1. Summary of Salient Data and Conclusions ........................... 1
2. Nature of the Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3. Description of the Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4. Market Area Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5. Market for Transient Accommodations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6. Statement of Assumptions and Limiting Conditions . . . . . . . . . . . . . . . . . 69
7. Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Addenda
Engagement Letter
Photographs of Hotel Site
Qualifications
Jennifer Hsu
Elaine Sahlins
Suzanne R. Mellen, CRE, MAI
HVS International, San Francisco, California Proposed Full-Service Hotel Summary of Salient Data and Conclusions 1
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1. Summary of Salient Data and Conclusions
Property:
Location:
Date of Inspection:
Interest Appraised:
Date of Value:
Land:
Zoning:
Assessor's Parcel Numbers:
Flood Zone:
Proposed Improvements:
Proposed full-service hotel
Carlsbad, California
August 2, 2000
Fee simple
August 4, 2000
±56.525 acres (±2,462,229 square feet)
C-T-Q -Commercial, Tourist with a
Qualified Development Overlay
210-010-27; 211-023-08; and 212-041-05
X
350-room full-service hotel with complementary
. facilities, including meeting space, restaurant(s),
and lounge(s), and other amenities.
HVS lntemational, San Francisco, California Proposed Full-Service Hotel Nature of the Assignment 2
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2. Nature of the Assignment
Subject of the Market
Study and Forecast of
Occupancy and average
rate
Objective of the Market
Study and Forecast of
Occupancy and Average
Rate
Use of the Market
Study and Occupancy
and Average Rate
Method of Study
The subject of the market study and forecast of occupancy and average rate
is the fee simple interest in a vacant ±56.525-acre site, which is part of
Carlsbad Ranch and is proposed for the development of a full-service hotel.
The proposed developments include a mixed-use resort consisting of 350
hotel and 350 timeshare units. The proposed hotel improvements will
accommodate leisure demand while operating in conjunction with the
adjacent Legoland park and will also appeal to corporate and group
meeting segments. Although not part of the study, the hotel's development
is proposing an ancillary timeshare component to be developed in
conjunction with the hotel. The site is located in the southern portion of the
city of Carlsbad, just east of Interstate 5, and is adjacent to the northern
boundary of the Legoland California theme park development. The city of
Carlsbad is located in the county of San Diego and the state of California.
The objective of the market study is to evaluate the supply and demand
factors affecting the hotel market in the Carlsbad area for the purpose of
developing a forecast of occupancy and average rate for the proposed
improvement as of January 1, 2004, the planned date of opening.
This market study and forecast of occupancy and average rate is being
prepared for use by Grand Pacific Resorts in connection with the
development of the proposed hotel improvements. No information
presented in this report should be distributed to or relied upon by the
public or third parties without the express written consent of HVS
International.
The methodology used to develop this market study is based on the market
research and valuation techniques set forth in the textbooks we authored
for the American Institute of Real Estate Appraisers and the Appraisal
Institute, entitled The Valuation of Hotels and Motels, 1 Hotels, Motels and
1 Rushmore, S. The Valuation of Hotels and Motels. Chicago: American Institute of Real Estate
Appraisers, 1978.
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Nature of the Assignment 3
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Scope of the Market
Study
Restaurants: Valuations and Market Studies, 2 The Computerized Income Approach
to Hotel/Motel Market Studies and Valuations, 3 and Hotels and Motels: A Guide
to Market Analysis, Investment Analysis, and Valuations.4 The specific steps
incorporated in our analysis are outlined as follows:
1. The subject site was evaluated from the viewpoint of its physical
utility for the operation of a hotel, as well as access, visibility,
and other relevant locational factors.
2. The surrounding economic environment, on both an area and
neighborhood level, was reviewed to identify specific
hostelry-related economic and demographic trends that may
have an impact on future demand for hotels.
3. A market orientation and appropriate improvements for the
proposed hotel were determined.
4. Dividing the market for transient accommodations into
individual segments allowed us to define specific market
characteristics for ·the types of travelers expected to utilize the
area's hotels. The factors that were investigated include purpose
of visit, average length of stay, facilities and amenities required,
seasonality, daily demand fluctuations, and price sensitivity.
5. An analysis of existing and proposed competition provided an
indication of the current accommodated demand. Occupancy
and average rate projections were derived from the existing
competitive landscape and an analysis of the lodging activity, as
well as an understanding of the proposed hotel's operation.
All information was collected and analyzed by the signatories to this report.
Our determination of the proposed improvements is based on our
assessment of opportunities in the market as well as the vision and desires
of the client and the overall Legoland development. We have investigated
the general economy of the area affecting the subject property, as well as
the specifics of the competitive hotel market. The occupancy and average
2Ruslunore, S. Hotels, Motels and Restaurants: Valuations and Market Studies. Chicago:
American Institute of Real Estate Appraisers, 1983.
3Rushmore, S. The Computerized Income Approach to Hotel/Motel Market Studies and Valuations.
Chicago: American Institute of Real Estate Appraisers, 1990.
4Rushmore, S. Hotels and Motels: A Guide to Market Analysis, Investment Analysis, and
Valuations. Chicago: Appraisal Institute, 1992.
HVS lntemational, San Francisco, Califomia Proposed Full-Service Hotel Nature of the Assignment 4
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Ownership and
Management History
and Assumptions
Pertinent Date
rate projections are based upon this investigation and analysis and are
conveyed in this market study.
The subject property is owned by Carlsbad Estate Holdings, Inc. (CEHI).
The owners purchased ±52.8 acres from Carlsbad Ranch Company (CRC)
on October 24, 1995 for $9,000,000, or $3.90 per square foot. At the time of
purchase, the land was not zoned for resort development; since the
purchase, CEHI has secured the zoning rights to develop a resort of up to
700 units. An additional ±3.7 acres were purchased for $309,000 in March
1998 from the Carltas Company. The addition of this acreage brings the
total subject site to ±56.525 acres. Our market study assumes that the
proposed hotel improvements will be affiliated with a management
company of an established brand with a national reservation system. Our
market study conclusion is in accordance with the description and plans
provided by the client. The market study assumes that the proposed
improvements will be developed consistent with these plans in a good,
workmanlike manner.
The effective date of the market study and forecast of occupancy and
average rate is August 4, 2000. All projections are expressed in inflated
dollars. The subject site was inspected by Jennifer Hsu and Elaine Sahlins.
Suzanne R. Mellen, CRE, MAI, inspected the site during the course of a
prior assignment and participated in the analysis and conclusions
contained herein.
HVS Intemational, San Francisco, Califomia Proposed Full-Service Hotel Description of the Real Estate 5
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3. Description of the Real Estate
LAND
Description of the Land
An important part of every market study is the description of the buildings
and the land. The purpose of this section is to analyze the physical and
functional attributes of the property that influence value. The following
section addresses the real estate that comprises the subject property,
including the land and the improvements. The zoning applicable to the site
and the property's assessed value and tax issues are also discussed.
The suitability of the land for development is an important consideration
affecting the economic viability of a property and its overall value. Factors
such as size, topography, access, visibility, and the availability of utilities
have a direct impact on the desirability of a particular site.
The site under consideration consists of ±56.525 acres (±2,462,229 square
feet) located to the southeast of Cannon Road and Lego Drive. The site is
part of the larger 450-acre Carlsbad Ranch development; this development
includes various existing and proposed developments. The following table
details the current land uses.
Carlsbad Ranch
Land Usage
Legoland qalifomia theme park
Proposed golf course land
Commercial flower fields
Proposed hotel improvements
Specialty retail mall
Grand Pacific Resort development
Open space
12 research and development office sites
Total
Acreage
±128.3
93.1
53.4
56.525
26.7
10.5
10.0
various
±454.5
The southern boundary of Carlsbad Ranch is defined by Palomar Airport
Road, across which is land designated as Encinas Open Space, as well as a
Costco Wholesale Club. To the east of the ranch development and adjacent
HVS Intematio11al, Sa11 Fra11cisco, California Proposed Full-Seruice Hotel Descriptio11 of the Real Estate 6
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Access and Visibility
to the theme park is Hidden Valley Road. North of the ranch is
undeveloped land, owned by San Diego Gas & Electric, which is occupied
only by large power lines. Finally, to the west of the Ranch development
are mixed commercial development along Interstate 5 (I-5), including
multiple automobile dealerships and various retail outlets at the Carlsbad
,S=ompany Stores, which will be discussed in a later section.
The large subject site is bound by the Legoland theme park to the south,
open space to the east, and land zoned for golf course development to the
north and west. At the time of our inspection, the hotel site remained
·undeveloped vacant land which, as reported by the client, is currently
being used for commercial agriculture. The subject site is gently sloping
from south to north. The southernmost portion is the narrowest as well as
the highest portion of the site. As such, the views of the Pacific Ocean and
I-5 to the west are possible from the slope at the southern portion of the
site. The northern portion of the site is wider, flatter, and more conducive
to hotel development. A water tower abuts the site's southeastern
boundary. According to the client, this tower will remain, although no
alternative options have been addressed.
The site is readily accessible from local, county, and interstate routes. The
main entrance will be via Cannon Road, which provides direct access to I-5
approximately one-quarter mile west of the site. Cannon Road is currently
under construction to extend east to El Camino Real. The road is
anticipated to be readily accessible come time for hotel operations.
Interstate 5 is a major north-south, limited-access highway which originates
at the U.S.-Mexico border and extends north through California, Oregon,
and Washington, to its northern terminus at the U.S.-Canada border.
Regionally, I-5 provides access to the coastal areas of San Diego and serves
as the principal link for the commercial centers of San Diego, Orange
County, and Los Angeles. Interstate 5 also provides easy access to Interstate
15, which extends northeast to Las Vegas, and Interstate 8, which extends
west to Arizona.
The San Diego International Airport is located approximately 35 miles to the
south of the subject site. The McClellan-Palomar Airport, located
approximately 3 miles to the east of the site, provides additional, but
relatively infrequent and expensive, air service. Currently, two regularly
scheduled airlines, America West and United Express, provide service to
Phoenix and Los Angeles.
HVS lntemational, San Francisco, California Proposed Full-Service Hotel Description of the Real Estate 7
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Special Site
Considerations
Flood Zone
Utilities
Zoning
In terms of visibility, the southern portion of the land can be seen from I-5,
while the northern portion cannot. However, all visitors to Legoland
California will enter the park via Cannon Road and will have clear visibility
of the proposed hotel's entrance and, we assume, property signage.
Additionally, the hotel improvements would be visible from various points
throughout the Legoland theme park.
Special site considerations can include soil and drainage conditions;
environmental, hazardous materials, and toxic conditions; flood hazard
zones; earthquake zones; wetlands; and encroachments indicated on the
title report. As for soil and drainage conditions, they appear satisfactory,
though the appraisers are only qualified to the extent of visual inspections.
The appraisers have not been informed of any site-specific environmental
hazards, and no visible signs of asbestos or toxic ground contaminants were
apparent at the time of our inspection. Because the appraisers are not
experts in this field, we do not warrant the absence of hazardous waste.
According to city planning officials and Federal Emergency Management
Agency (FEMA) panel #060285-1027F, effective June 19, 1997, the subject
land is located in flood zone X, which is defined as "areas determined to be
outside the 500-year flood plain."
According to CEHI, all utilities, including water, sewer, electric, and gas, are
available at the site perimeter.
According to the city of Carlsbad zoning regulations, the ±56.525-acre
subject site is zoned as follows:
C-T-Q Commercial-Tourist with a Qualified Development Overlay
(Carlsbad Ranch Specific Plan)
The subject property's zoning includes a qualified development overlay,
which is defined by the Carlsbad Ranch Specific Plan. The Carlsbad Ranch
Specific Plan allows for the development of a full-service hotel facility. The
plan specifies that most hotel facilities will be designed to encourage use by
the general public as well as the hotel guest.
In addition to meeting the General Development Standards and Design
guidelines as defined by the city zoning ordinance, the subject's zoning
plan includes the following development standards:
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Description of the Real Estate 8
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PROPOSED
IMPROVEMENTS
• Permitted uses: hotels; timeshare units as permitted by the city
council and in conjunction with a hotel project;
• Accessory uses: retail related to the hotel; restaurants; health and
fitness clubs; daycare facilities; personal services; galleries/museums;
administrative facilities; bars/nightclubs as part of the hotel; horse
stables, provided certain setbacks;
• Building and landscape setbacks: 50 feet at front yard on Cannon
Road; 20 feet at front yard on Hidden Valley Road; 50 feet and rear
yard adjacent theme park and golf course; 20 feet from side yard or
open space;
• Building height: a maximum of 35 feet;
• Parking: shall be determined;
• Building orientation: resort will be oriented to maximize ocean
views; and,
• Architecture: shall be determined.
We assume that the improvements, when developed, will have all
necessary permits and approvals, including an appropriate liquor license,
and that the subject property will be in conformance with local building
codes and all other applicable regulations.
The quality of a lodging facility's physical improvements has a direct
influence on marketability, and therefore attainable occupancy and average
room rate. The design and functionality of the structure can also affect
operating efficiency and overall profitability. Our market study of the
proposed hotel development is based on discussions with the client, our
understanding of the specific zoning regulations, our familiarity with
numerous hotel-lodging products and markets across the county, our
understanding of the intended synergy with the Legoland theme park, and
our analysis of the existing competitive market for lodging demand in the
city of Carlsbad. Additionally, we assume that the proposed hotel
improvements will be affiliated with a reputable management company as
well as an established brand, such as, but not limited to, Radisson,
Sheraton, Marriott, or Hilton, with a national reservation system. This
analysis also assumes the hotel will be actively marketed by Legoland. The
hotel will be prominently featured in Legoland marketing and advertising
collateral. Legoland will also significantly contribute to the hotel's
operations.
The resort improvements are proposed to be a three-to four-star property,
primarily accommodating leisure demand, and operating in conjunction
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Description of the Real Estate 9
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with the adjacent Legoland park. While the site had been considered for a
five-star destination resort, the current market conditions indicate that a
three-to four-star, full-service hotel property would more readily capture
existing demand. In addition, a three-to four-star hotel with significant
meeting space at the Legoland location would induce strong leisure and
group demand without the infrastructure development that is required for
a five-star property. A five-star property at this location would not be able
to compete successfully with the existing destination luxury hotels in
Southern California. The westward view orientation toward the back end of
office buildings in the area and the noise impact from the
McClellan-Palomar Airport make the proposed subject property less
competitive with existing destination luxury hotels in Southern California,
especially the A viara and La Costa resorts, which are well established in the
region. In addition, the power lines to the east of the site would be
inconsistent with the overall appearance of a five-star hotel. A good-quality,
branded full-service hotel with adequate meeting space and the Legoland
association could represent the highest-quality lodging facility in Carlsbad
and would more effectively accommodate the year-round demand in
Carlsbad than a five-star destination resort. In addition, the property will
accommodate commercial and group meeting demand by featuring
corporate amenities and significant meeting space. The public spaces are
assumed to be comparable to those of similar full-service hotels while
incorporating some aspects of the Lego brand. Additionally, it is assumed
that the service level of the proposed hotel will be equal to that expected of
a full-service, three-to four-star property and that it will be competitive
with comparable hotel properties throughout the southwestern United
States.
The following chart outlines the recommended facilities for the subject site.
HVS bztemational, San Francisco, California Proposed Full-Service Hotel Description of the Real Estate 10
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Proposed Hotel Improvements
Guestrooms
Phase One
Phase Two
Phase Three
Total
Food and Beverage Facilities
Three Meal Restaurant
Room Service
Lobby Bar
Cafe
Meeting Rooms
Phase One
Phase Two
Phase Three
Total
Recommended Amenities
Number of Units
150
100
1QQ
350
Square Feet
4,500
3,000
5,000
12,500
Outdoor swimming pool (s) with extensive water feature
Pool bar/cafe
Children"s arcade/activity center
Children's playground
Fitness room
Retail shops {Lego shop and gift shop)
Opening Date
January 1, 2004
January 1, 2006
January 1, 2009
January 1, 2004
January 1, 2006
January 1, 2006
January 1, 2009
January 1, 2004
January 1, 2006
January 1, 2009
Concierge
Small spa fac illty
Driving range
Adequate guest parking
The proposed hotel needs to create an inclusive hotel environment which
caters to the needs of leisure-oriented as well as corporate and group
meeting travelers. Expected to appeal to families and other leisure guests,
the hotel will need to be designed to also accommodate incentive travel and
high-end tour and travel groups.
In the past year, the Carlsbad market (and the greater San Diego area) has
experienced strong increases in the number of hotel rooms. Hotel supply is
expected to continue to increase through the next few years and many
projects are still in the construction pipeline. The recent increases in supply
have yet to be fully absorbed. Although the recent trends of 2000 indicate
positive absorption of the new hotel rooms, the ability of the area's hotels to
sustain their recent occupancy levels through the slower seasons has yet to
be proven. Based on this "wait and see" strategy, we recommend that the
HVS Intemational, San Francisco, Califomia Proposed Full-Service Hotel Description of the Real Estate 11
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subject property's improvements be constructed in phases. Phase One
would include 150 guestrooms, a restaurant and lounge, 3,000 square feet of
meeting space, and a modest complement of amenities. Two additional
phases are set forth so that the entire development spans a period of
approximately six years. Our analysis also assumes that timeshare units
will be constructed concurrent with the hotel rooms. The consultants'
recommendation regarding the hotel improvements assumes that
approximately 75 timeshare rooms will be developed with Phase One of the
hotel. These timeshare rooms will be available to the hotel to generate
group meetings and will also accommodate leisure demand. As such, the
hotel's food and beverage facilities and meeting rooms would be designed
to service guests from both the hotel and the timeshare units.
While the hotel is expected to be perceived as a stand-alone full-service
property, the Legoland association is assumed to be a major marketing and
operational component. The integration of Legoland and the hotel
operations is expected to enhance the positioning of both properties.
Groups using the hotel facilities are likely to enjoy the recreational and
catering features of Legoland. The possibility of Legoland operating the
food and beverage facilities of the hotel should be investigated. Although
the specific opportunities to cross-sell business between the park and the
hotel are outside the scope of this analysis, our recommendation for the
hotel facilities assume that the subject property will be significantly
associated with Legoland.
To create a sense of destination, the proposed property is anticipated to
feature significant water amenities. A large outdoor pool and a children's
pool are recommended for the first phase of guestrooms. As the property
expands, another outdoor pool can be added. Other amenities can be
developed to complement the Legoland association, including an arcade, a
children's activity center, and an outdoor playground.
In addition, a golf course would enhance the marketability and
attractiveness of the subject property, but according to the client, the
proposed municipal golf course development has not obtained approvals
from all of the required governmental agencies. A five-star destination
resort would require a state-of-the-art designer golf course located at the
resort and high green fees. The exact scope and quality level of the city's
proposed golf course were not provided to the consultants.
HVS Intemational, San Francisco, Califomia Proposed Full-Service Hotel Description of the Real Estate 12
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NEIGHBORHOOD
The ability of the hotel to accommodate social and corporat_e groups would
allow the hotel to successfully compete in the market. Many of the area's
demand generators, including Legoland and the surrounding commercial
businesses, attract groups using the area's existing meeting space for
meetings and social events. With the Legoland association, the subject
property is expected to attract significant numbers of leisure groups.
Incentive and reunion groups are some of the segments which would
require both the Legoland attractions and in-house meeting space. Meeting
space at the hotel could also be used to attract corporate groups which
could use the Legoland facilities for social events and the hotel's meeting
space for business meetings.
All of the hotel's facilities are intended to complement, and not compete
with, the adjacent Legoland theme park. Significant meeting and
recreational facilities will serve to differentiate the proposed Legoland hotel
from the existing hotel competition.
The neighborhood surrounding a lodging facility often has an impact on a
hotel's status, image, class, style of operation, and sometimes its ability to
attract and properly serve a particular market segment. This section of the
report investigates the proposed subject property's neighborhood and
evaluates any pertinent locational factors that could affect its occupancy
level, average rate, and overall profitability.
The subject neighborhood is clearly defined as the Carlsbad Ranch and
Legoland California developments. The neighborhood is a commercially
developing and tourist community and the nearby surface streets have
quickly developed with freestanding retail shops, restaurants, and office
space. Carlsbad Ranch, as detailed earlier in this section, contains numerous
projects. Twelve commercial sites are plotted and all lots except one have
been sold. Current tenants include the Gemological Institute of America,
with a campus spread over ±29 acres, the National Association of Music
Merchants, with ±36,000 square feet of office space, Natural Alternatives,
Inc., with ±82,000 square feet, and Denso Automotive Engineering
Company, with ±77,500 square feet of space. Several of the remaining sites
are under consideration for development as well. A specialty retail mall is
located on ±27 acres along I-5. This factory outlet mall, known as the
Carlsbad Company Stores, houses tenants such as Polo, Calvin Klein,
Barney's Outlet, Gap, Kenneth Cole, Levi's, Samsonite, Tommy, Reebok,
and various other retailers and food outlets. Approximately 53.4 acres of
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Legoland California
the ranch will continue to be used for flower bulb farming, the original use
of the entire ranch site, and will continue to be an annual tourist attraction.
Carlsbad has recently enjoyed a strong local economy, generally due to the
burst of commercial and industrial developments in the area. The Carlsbad
General Plan assigns approximately 2,500 acres at the center of the city for
planned industrial use. This plan encourages light manufacturing, research
and development, communications and corporate headquarters, and other
types of high-technology and biotechnology industries. A review of the
city's major employers shows that the area's major businesses are involved
in the golfing, technology, and services industries. Callaway/Odyssey Golf,
for example, is the number one employer in the area, with approximately
2,250 employees.
Grand Pacific Resorts recently constructed a 200-unit timeshare and resort
hotel development located within Carlsbad Ranch. This property, which is
located on ±10.5 acres, opened for operation on March 1999. This hotel will
be considered competitive with the subject property due to its location and
market demand mix.
_ Another hotel in the immediate neighborhood of .the subject property is the
Holiday Inn, which is located at the intersection of Palomar Airport Road
and I-5. This hotel operated in conjunction with a TGI Friday's restaurant
and banquet facility. Given that this property is affiliated with a nationally
recognized chain and has direct freeway visibility and accessibility, the
Holiday Inn will be considered a direct competitor of the subject property.
Legoland California held its grand opening on March 20, 1999. The
-Legoland theme park was developed by Legoland Estates AG, a 100%
owned subsidiary of INTERLEGO AG of Switzerland. This park was the
company's third development, with existing parks in Billund, Denmark,
and Windsor, England. The park entails 128 acres, complete with six main
activity areas constructed with, and oriented around, Lego products.
Legoland California, a uniqu~ family park, is intended to be an educational,
interactive, and recreational theme park oriented toward families with
children ages 2 through 12. In addition, the park also caters to planned
group events; Legoland California will include various restaurant and retail
outlets.
Legoland received approximately 1.5 million visitors in the first full year of
operation, 1999. Management estimated that approximately 65% of this
HVS International, San Francisco, California Proposed Full-Service Hotel Description of the Real Estate 14
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Conclusion
demand is generated from the San Diego, Orange County, and Los Angeles
regions. Daily entrance fees for the park are $29 for children and $34 for
adults.
Overall, Legoland California is a high-quality theme park with strong name
recognition. The synergy of this park with the proposed hotel facilities will
be mutually beneficial for the hotel operator as well as for the Legoland
theme park.
The subject property's physical and locational attributes have been
evaluated, with the following characteristics noted. The development site is
well located within the North County of San Diego, with easy access to the
area's and regional roadways and good visibility for patrons of the
Legoland theme park. The proposed improvements are considered to be
appropriate for a transient lodging facility in the subject market; we assume
that it will be in compliance with all zoning regulations. The subject's
neighborhood continues to grow and the Legoland California theme park
has attracted many leisure travelers to the entire neighborhood.
HVS lntemational, San Francisco, Califomia Proposed Full-Service Hotel Market Area Analysis 15
INTERNATIONAL
4. Market Area Analysis
Market Area Definition
The economic vitality of the market surrounding the subject property is an
important consideration in forecasting lodging demand and income
potential. Economic and demographic trends that reflect the amount of
visitation provide a basis from which to project hostelry demand. The
purpose of the market area analysis is to review available economic and
demographic data to determine whether the local market will undergo
economic growth, stability, or decline. In addition to predicting the
direction of the economy, the rate of change must be quantified. These
trends are then correlated based on their propensity to reflect variations in
lodging demand with the objective of forecasting the amount of growth or
decline in transient visitation by individual market segment (e.g., group
meeting and leisure).
The subject property is located in the city and county of San Diego. San
Diego County corresponds to the San Diego Metropolitan Statistical Area
(MSA), which is so defined for statistical purposes. The lodging market in
the county draws a significant amount of its patronage from the entire
Southern California region, a nine-county area that includes both the San
Diego and Los Angeles MSAs, as well as the nation as a whole.
San Diego County is located at the southwestern corner of the·continental
United States. It is bordered by Orange and Riverside Counties to the
north, Imperial County to the east, and the Pacific Ocean to the west;
Mexico lies adjacent to the southern border of San Diego County. At the
closest point, the city of San Diego is roughly 16 miles north of the Mexican
border.
San Diego County covers roughly 4,261 square miles and is most densely
developed in its western and coastal areas. The terrain varies from
mountains, deserts, and rolling hills in the inland areas to more than 70
miles of coastline and beaches to the west. Subtropical sun and the cooling
California current produce a pleasant year-round climate, which is one of
the area's greatest assets.
HVS bztenzational, San Francisco, Califonzia Proposed Full-Service Hotel Market Area Analysis 16
Economic Overview
Demographic and
Economic Review
San Diego County has been one of the nation's fastest-growing economies
in the last several years, having recovered from the national economic
recession of the early 1990s. Leading San Diego's economic recovery were
technology-based, commercial industries, a departure from the defense-
and military-oriented companies that dominated the local economy from
the 1980s through the early 1990s. Emerging growth areas include
telecommunications, computers and software, biotechnology, and medical
instruments. The advanced telecommunications industry is the county's
new employment growth leader, as locally headquartered Qualcomm set
the industry standard for wireless communications and established San
Diego as the nation's leading telecommunications center. In addition, the
strong expansion of the service sector seen in the last two years is expected
to continue, allowing for modest overall growth in the economy.
Overall, San Diego County's economy is supported by the following key
industries: agriculture, defense, fishing, technology, international trade,
manufacturing, medical research, retail sales,. and tourism. According to
statistics provided by the San Diego Chamber of Commerce, San Diego's
gross regional product (GRP) is estimated to have reached $91.6 billion in
1999, which represents the sixth consecutive year of GRP growth. A diverse
base of employment, combined with the anticipation of continued
moderate growth, suggests a positive outlook for the regional economy.
The following demographic and economic review sets forth population,
per-capita income, and retail sales for the San Diego MSA, the state of
California( and the United States as a whole from 1980 through 2010. While
not directly correlated with hotel room night demand, population and retail
sales serve as a general measure of a market's health. The per-capita income
reflects the economic well-being of the populace.
HVS International, San Francisco, California Proposed Full-Service Hotel Market Area Analysis 17
INTERNATIONAL
Demographic and Economic Review
Average Annual % Change
1980 1992 1999 2010 1980-92 1992-99 1999-10
Resident Population (Thousands)
San Diego, CA MSA 1,875.3
23,792.8
227,225.6
2,598.4
30,854.2
254,995.9
2,826.3
33,022.2
272,895.7
3,297.2
36,581.5
298,405.8
2.8% 1.2% 1.4%
State of California
United States
Per Capita Personal Income*
San Diego, CA MSA
State of California
United States
W&P Wealth Index
San Diego, CA MSA
State of California
United States
Total Retail Sales (Millions)*
San Diego, CA MSA
State of California
United States
* Inflation Adjusted
18,462.0
20,234.0
17,203.0
106.8
115.4
100.0
14,177.2
188,182.8
1,636,704.5
21,153.0
22,191.0
20,547.0
103.3
107.1
100.0
19,215.9
224,593.2
1,894,880.3
23,528.0
24,839.0
23,811.0
100.7
104.7
100.0
24,734.5
284,500.7
2,403,545.9
27,624.0
28,617.0
27,543.0
101.9
104.3
100.0
32,257.0
352,005.1
2,940,197.5
Source: Woods & Poole Economics, Inc.
2.2%
1.0%
1.1%
0.8%
1.5%
-0.3%
-0.6%
0.0%
2.6%
1.5%
1.2%
1.0%
1.0%
1.5%
1.6%
2.1%
-0.4%
-0.3%
0.0%
3.7%
3.4%
3.5%
0.9%
0.8%
1.5%
1.3%
1.3%
0.1%
-0.0%
0.0%
2.4%
2.0%
1.8%
The population of San Diego MSA increased at an average annual
compounded rate of 2.8% between 1980 and 1992, and by 1.2% per year
from 1992 to 1999. Average annual compounded growth is.projected to be
1.4% between 1999 and 2010, approximately twice the rate of state and
national growth. Personal income in the MSA increased at an average
annual compounded rate of 1.1% between 1980 ·and 1992 and 1.5% from
1992 to 1999, and is projected at this level from 1999 to 2010. Personal
income growth rates for the MSA are forecast to be higher from 1999 to 2010
than for the state and nation. The W&P Wealth Index data presented in the
preceding chart indicate that the San Diego MSA populace is slightly more
affluent than the state and the nation as a whole. Between 1980 and 1992,
retail sales in the MSA increased at an average annual compounded rate of
2.6%; slower growth rates of 1.5% and 1.2% were registered in the state and
the nation, respectively. Between 1992 and 1999, retail sales in the county
increased at a robust rate of 3.7%, compared to 3.4% and 3.5% for the state
and nation, respectively. Between 1999 and 2010, inflation-adjusted retail
sales are projected to increase by 2.4% annually in the San Diego MSA, 2.0%
in California, and 1.8% in the United States.
HVS lntemational, San Fra11cisco, California Proposed Full-Service Hotel Market Area Analysis 18
INTERNATIONAL
Workforce
Characteristics
The characteristics of an area's workforce provide an indication of the type
and amount of transient visitation likely to be generated by local businesses.
Sectors such as finance, insurance, and real estate (FIRE); wholesale trade;
and services produce a considerable number of visitors who are not
particularly rate sensitive. The government sector often generates room
nights, but per-diem reimbursement allowances often limit attainable rates.
The manufacturing, construction, and transportation, communications, and
public utilities (TCPU) sectors are least likely to generate a significant
number of hotel guests. The following table sets forth the San Diego
County workforce distribution by business sector in 1980, 1992, and 1999, as
well as a forecast for 2010.
San Diego County Historical and Projected Employment (000s)
Average Annual Compounded
Percent Change
Percent Percent Percent Percent
Industry 1980 ofTotal 1992 of Total . 1999 of Total 2010 of Total 1980-1999 1992-1999 1999-2010
Farm 16.8 1.7 % 13.6 1.0 % 13.5 0.8 % 12.5 0.6 % (1.1)% (0.1)% (0.7)%
Agriculture Services, Other 11.7 1.2 17.7 1.2 24.3 1.5 29.8 1.5 3.9 4.7 1.9
Mining 1.5 0.1 2.2 0.2 2.0 0.1 1.9 0.1 1.7 (0.9) (0.4)
Construction 46.6 4.7 66.0 4.6 86.2 5.3 106.0 5.4 3.3 3.9 1.9
Manufacturing 112.3 11.3 131.7 9.3 135.5 8.3 144.1 7.3 1.0 0.4 0.6
Trans., Comm. & Public Utils. 31.8 3.2 42.7 3.0 54.3 3.3 64.2 3.3 2.8 3.5 1.5
Total Trade 174.8 17.7 275.3 19.4 314.0 19.3 354.6 18.0 3.1 1.9 1.1
\lvllolesale Trade 27.2 2.7 51.7 3.6 56.8 3.5 66.8 3.4 4.0 1.3 1.5
Retail Trade 147.6 14.9 223.5 15.7 257.2 15.8 287.7 14.6 3.0 2.0 1.0
Finance, Insurance, & Real Estate 84.4 8.5 110.6 7.8 135.5 8.3 167.3 8.5 2.5 2.9 1.9
Services 223.1 22.5 442.8 31.1 566.5 34.7 772.0 39.1 5.0 3.6 2.9
Total Government 287.0 29.0 319.8 22.5 298.8 18.3 321.5 16.3 0.2 (1.0) 0.7
Federal Civilian Govt. 41.4 4.2 43.2 3.0 42.8 2.6 43.4 2.2 0.2 (0.2) 0.1
Federal Military Govt. 142.0 14.3 138.8 9.8 103.8 6.4 103.6 5.2 (1.6) (4.1) (0.0)
State & Local Govt. 103.5 10.5 137.8 9.7 152.3 9.3 174.5 8.8 2.1 1.4 1.2
TOTAL 989.9 100.0 % 1,422.3 100.0 % 1,630.8 100.0 % 1,973.7 100.0 % 2.7 % 2.0 % 1.8 %
Source: Woods and Poole Economics, Inc.
Woods & Poole Economics, Inc., reports that between 1980 and 1999, the
most rapid employment growth in San Diego County occurred in the
service and wholesale trade sectors, which registered average annual
compounded increases of 5.0% and 4.0%, respectively. Overall, services
represents the largest employment sector, supporting 34.7% of the total
employment base in 1999. Growth in overall employment grew moderately
from 1992 to 1999, at 2.0%, moderated by the economic recession in the
HVS Intemational, San Francisco, Califomia Proposed Full-Service Hotel Market Area Analysis 19
INTERNATIONAL
Major Employers
early 1990s. The forecast shows overall employment growth of 1.8%
annually from 1999 through 2010; the anticipated annual gains of 2.9% in
the service sector and 1.9% in the FIRE and construction sectors underpin
the _expectation of continued economic health in the area during the next
few years.
Providing a context for the business and employment environment in the
subject market area, we have researched major employers in San Diego and
Carlsbad. The following table outlines some of the major employers in San
Diego County, highlighting the importance of the government, health-care,
and aerospace industries to the region. Due to different recording methods,
we note that the government employee counts provided by the chamber of
commerce differ somewhat from those detailed in the previous Woods &
Poole chart.
Major Employers -San Diego County
Firm
United States Government -Military
United States Government -Civilian
University of California, San Diego
County of San Diego
San Diego Unified School District
Qualcomm
City of San Diego
Sharp Healthcare
General Dynamics
Scripps Institute of Medicine
State of California
Rohr Industries
Hughes Aircraft
Product
U.S. Government
U.S. Government
Education
Government
Education
Telecommunications
Government
Health Care
Aerospace and Defense Manufacturing
Research
Government
Aerospace Supplies
Manufacturing
Source: San Diego Chamber of Commerce
Number of
Employees
139,000
47,000
17,000
13,000
13,000
10,000
10,000
9,000
9,000
8,000
7,000
4,700
4,000
On a more local level, the major employers in Carlsbad, where the subject
property is located, are presented in the following table. Note that Legoland
California is the number two employer in Carlsbad, and Callaway Golf is
the number one employer. Both businesses are located in close proximity to
the proposed subject property.
HVS International, San Francisco, California Proposed Full-Service Hotel Market Area Analysis 20
Office Market
Summary
Major Employers -Carlsbad
Company Name
Callaway Gott
Legoland California
Four Seasons Resort Aviara
City of Carlsbad
La Costa Resort & Spa
Mallinckrodt
Carlsbad Unified School District
Taylor Made-Adidas Gott
Grand Pacific Resort
Acushnet (Cobra Gott, Titleist, Footjoy)
Gemological Institute of America
Ashworth
Software of the Month Club (SOMC Group)
Farmers insurance Group Regional Office
ViaSat
PinnFund USA
SDG&E
Asymtek
Republic Tool & Mfg.Co.
Syntron Bioresearch Inc.
List revised June 2000
Source: Carlsbad Chamber of Commerce
# of Employees
2,250
1,100
1,100
1,030
950
800
800
727
700
675
500
394
380
350
350
325
325
320
300
300
Office market statistics provide an indication of the overall health of the San
Diego county economy. San Diego's office space inventory showed
remarkable growth throughout the early 1980s. However, the impact of the
national recession on both the local economy and the construction industry,
coupled with increasing countywide vacancy rates, have caused office
space construction in San Diego to slow dramatically in recent years. The
San Diego County office market as a whole has posted high vacancy rates
historically, while vacancy in the downtown submarket has consistently
exceeded countywide averages. Much of downtown San Diego's office
space is occupied by legal firms and government entities. Typically these
types of firms do not produce large amounts of commercial lodging
demand.
The following table provides an overview of the downtown San Diego
office market.
HVS International, San Francisco, Calzfomia Proposed Full-Service Hotel Market Area Analysis 21
=l;;J_~e£ E;=-~
INTERNATIONAL
Airport Traffic
Downtown San Diego Office Data
Year
1992
1993
1994
1995
1996
1997
1998
1,999
1st Quarter 2000
Square Feet
Rentable Available
9,209,000 2,302,000
9,203,000 2,117,000
9,152,000 2,274,000
9,171,000 1,865,000
9,155,000 1,762,000
9,199,000 1,889,000
9,199,000 1,379,850
8,927,172 939,034
8,927,824 939,035
Vacancy
Rate
25 %
23
24.8
20.3
19.2
20.5
15
10.5
7.9
Source: Grubb & Ellis
Square Feet of
Net Absorption
(99,830)
155,001
(299,000)
326,000
153,000
(28,000)
509,150
72,431
233,475
As mentioned, the county witnessed high vacancy rates historically;
however, improving economic conditions led to a noticeable decline in
vacancy rates from 25.0% in 1992 to 10.5% in 1999 and 7.9% through the
first quarter of 2000. According to Grubb & Ellis, the downtown submarket
has led the county in office absorption since 1995. It should be noted that
the recent marked decreases in downtown vacancy were spurred by a
decrease of over 200,000 square feet in supply, as several smaller office
buildings have been razed to make room for retail and residential uses.
According to Grubb & Ellis, the average asking rent on Class-A space
equated to $23.71 in 1999 and increased to $24.20 through the first quarter
of 2000. With declining vacancies, rental rates are expected to increase in
the near term.
San Diego International Airport is located approximately 35 miles south of
the proposed subject property. The following table summarizes historical
passenger activity since 1990.
HVS lntemational, San Francisco, Calzfomia Proposed FrJII-Seruice Hotel Market Area Analysis 22
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Passenger Activity -San Diego International Airport
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Average Annual Compounded
Percent Change: 1990-99
YTD June 1999
YTD June 2000
Airport
Arrivals
5,597,347
5,672,420
5,952,555
5,978,078
6,457,742
6,598,278
6,859,472
7,160,373
7,423,691
7,646,108
3,035,255
3,126,313
Source: San Diego International Airport
Percent
Change
1.3 %
4.9
0.4
8.0
2.2
4.0
4.4
3.7
3.0
3.5 %
3.0 %
Since 1990, San Diego International Airport has experienced an average
annual compounded increase in passenger activity of 3.5%. The 4.9%
growth in 1992 reflects the effect of America's Cup participants and
spectators traveling to San Diego. Strong growth of 8.0% was evidenced in
1994,· due to the recovering Southern California economy. In 1997,
passenger arrivals were up by 4.4% from 1996. Activity at the airport is
projected to continue to grow in the future. As such, the airport's current
runway configuration is insufficient to handle the traffic forecasted for the
next decade. The San Diego Association of Governments has studied
options for the relocation of San Diego's airport, and the issue has been
partially resolved with the expansion of an existing terminal and 8 new
gates which opened in January 1998; another 10 gates are expected to open
by 2005.
Locally, in Carlsbad, the McClellan Palomar Airport houses two airlines and
approximately 500 passengers per day. Currently, United Express runs 11
flights to Los Angeles International Airport per day and America West runs
4 flights to Phoenix per day. Airport officials have development plans to
expand the runways and to build another terminal by approximately 2003.
This proposal is currently undergoing an Environmental Impact Analysis.
In addition, airport officials are also planning to build another parking
HVS International, Sa11 Francisco, California Proposed Full-Service Hotel Market Area Analysis 23
INTERNATIONAL
Convention Center
garage by 2005. In general, airport officials expect the city of Carlsbad to
create enough demand to accommodate these expansions.
Vital to the analysis are trends in convention visitation and tourism. While
the subject is located further north and is not anticipated to be directly
affected by the convention center, such activity is a good indicator of San
Diego's overall -attraction and awareness as a destination. Opened in
November 1989, the San Diego Convention Center is primarily a demand
generator for downtown San Diego hotels. The first-class facility is located
downtown on the shore of the San Diego Bay, roughly 10 minutes from San
Diego International Airport. The facility measures ±942,000 square feet in
size, including service and support areas.
The following table presents the number of groups, delegate attendance,
associated room nights, and expenditures attributable to the convention
center, as provided by the San Diego Conventio:11 and Visitors Bureau.
Historical Convention Activity -San Diego Convention Center
Number
Year of Grou~s
1990 33
1991 36
1992 39
1993 52
1994 48
1995 49
1996 52
1997 59
1998 60
1999 55
Avg. Ann. Comp.% Change
YTD 7/99 $29
YTD 7/00 25
Percentage Delegate Percentage Room Percentage Percentage
Change Attendance Change Nights Change Ex~enditures Change
183,600 251,825 $123,931,050
9.1 % 196,930 7.3 % 248,970 (1.1) % 123,181,630 (0.6) %
8.3 317,500 61.2 416,983 67.5 184,575,546 49.8
33.3 236,600 (25.5) 333,727 (20.0) 160,112,046 (13.3)
(7.7) 232,600 (1.7) 455,000 36.3 210,435,456 31.4
2.1 330,510 42.1 507,942 11.6 243,669,716 15.8
6.1 285,812 (13.5) 521,506 2.7 247,375,380 1.5
13.5 290,802 1.7 535,246 2.6 257,276,868 4.0
1.7 428,743 47.4 641,665 19.9 337,697,662 31.3
(8.3) 320,050 (25.4) 562,821 (12.3) 288,460,396 (14.6)
5.8 % 6.4 % 9.3 % 9.8 %
$165,302 323,047 $166,836,465
(13.8) % 120,340 (27.2)% 253,915 (21.4) % 129,298,260 (22.5) %
Source: San Diego Convention & Visttors Bureau
The number of convention groups, total attendance, and rooms nights (the
vital indicator for the hotel industry) increased at average annual rates of
5.8%, 6.4%, and 9.3%, respectively, from 1990 to 1999.
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Market Area Analysis 24
INTERNATIONAL
Tourism
After several delays, the city of San Diego has begun a major expansion of
the San Diego Convention Center, estimated to cost $216 million. The plan
for the expanded center calls for adding 276,000 square feet of exhibit space
and 106,000 square feet of meeting/ballroom space. Reportedly, the
expansion will allow for continuous convention activity, as conventions can
be held in one wing while a prior convention is being dismantled or a new
one set up in another wing, offering more dates and growth opportunities
for existing clients. Overall, convention center officials estimate that the
expanded center could increase overall bookings by 50% to 100%.
Construction of the expansion began in October 1998 and is expected to be
completed by third-quarter 2001. While the expanded center will
undoubtedly increase convention activity in San Diego once it is completed,
in the short term, disruptions during construction have negatively
impacted bookings. A major disruption occurred when the section of
Harbor Drive immediately in front of the center was closed beginning in
early 1999 so the street could be lowered by six feet. According to the San
Diego Convention and Visitors Bureau, several groups have canceled
events or placed them "on hold" during the construction period. Several
meeting planners have also expressed their concerns and have taken a "wait
and see" attitude toward the potential construction disruptions. As future
bookings for the convention center are in flux, the San Diego Convention
and Visitors Bureau will not release estimates of potential bookings;
however, officials remain confident that bookings will maintain a steady
pace during the expansion's construction and will increase significantly
after the expansion is complete.
The tourism industry within the San Diego region is outranked only by the
manufacturing and government sectors in terms of revenue contributed to
the area's economy. Visitor spending in San Diego totaled over $4.0 billion
in 1996, $4.4 billion in 1997, $4.7 billion in 1998, and $4.9 billion in 1999, a
4.26% increase from the prior year. Year-to-date data through July 2000
indicate that visitor spending continues to increase, accounting for
approximately $2.4 billion in 2000, an increase of approximately 5.0% over
the same period in 1999.
The San Diego area has a well-developed base of tourist attractions. San
Diego's Old Town State Park is the most frequented attraction in the region.
Sea World and the San Diego Zoo are easily accessed via highway travel.
Other tourist attractions in the San Diego area include the San Diego Wild
Animal Park, the Scripps Aquarium/Museum, the newly opened Legoland,
and the Cabrillo National Monument.
HVS International, San Francisco, California Proposed Full-Service Hotel Market Area Analysis 25
INTERNATIONAL
In addition to the preceding facilities, San Diego offers museums
specializing in topics ranging from aerospace to history to oceanography.
Art galleries, shopping facilities, and restaurants abound and are located
throughout the region. Theaters, comedy clubs, dinner cruises, bicycle and
boat rentals, and beaches also help to make the San Diego region attractive
to tourists. Additionally, golf, tennis, horseback riding, bicycling, and
skating facilities are available.
Sports facilities in San Diego include the Qualcomm Stadium (previously
known as Jack Murphy Stadium) and the San Diego Sports Arena.
Professional athletic teams in the city include baseball's Padres and football's
Chargers. The United States' first warm-weather, multi-sport, Olympic
training complex recently opened in the San Diego area. The complex is
expected to attract additional leisure visitation to the San Diego region.
Additionally, the San Diego area has approximately 72 golf courses, many
of which lie within the "North County" area.
The following table illustrates recent trends in San Diego's visitor industry,
as measured by both expenditure level and number of travelers. Overall,
these statistics have been on the increase in recent years. These statistics
bode well for the region's lodging market.
HVS International, San Fr.ancisco, California Proposed Full-Service Hotel Market Area Analysis 26
INTERNATIONAL
San Diego Visitation Statistics
Number of Percent Total Visitor Percent Expenditure Percent
Year Visitors (000) Change Spending (000) Change per Visitor Change
1990 12,544 $3,092,600 $246.54
1991 12,765 1.8 % 3,280,000 6.1 % 256.95 4.2 %
1992 13,030 2.1 3,510,500 7.0 269.42 4.9
1993 12,867 (1.3) 3,451,000 (1.7) 268.21 (0.4)
1994 13,394 4.1 3,636,000 5.4 271.46 1.2
1995 13,692 2.2 3,797,100 4.4 277.32 2.2
1996 13,982 2.1 4,048,600 6.6 289.56 4.4
1997 14,366 2.7 4,366,300 7.8 303.93 5.0
1998 14,551 1.3 4,703,400 7.7 323.24 6.4
1999 14,692 1.0 4,881,800 3.8 332.28 2.8
Average Annual Compounded
Percentage Change 1990 to 1999 1.8 % 5.2 % 3.4 %
YTD 7/99 6,921 $2,309,143 $333.67
YTD 7/00 7,052 1.9 % 2,424,600 5.0 % 343.82 3.0 %
Source: San Diego Convention & Visitors Bureau
As indicated by the preceding chart, San Diego has experienced healthy
growth rates in the number of visitors, total visitor spending, and
expenditure per visitor. Specifically, data for year-end 1997, 1998, 1999, and
year-to-date 2000 are particularly encouraging, boding well for the subject
property.
Transient Occupancy Tax To gain a perspective on the level of tourism generated in the Carlsbad
area, the Carlsbad Convention and Visitors Bureau keeps track of transient
occupancy taxes that are levies on the area's hotels. Transient occupancy
taxes are those taxes levied on lodging operations which are collected for
every room night sold. The following table depicts how these taxes have
dramatically increased in recent years, particularly in 1998 due to a major
boom in the economy, and how lodging demand continues to improve in
the area.
HVS International, San Francisco, California Proposed Full-Service Hotel Market Area Analysis 27
INTERNATIONAL
Conclusion
Transient Occupancy Tax -Carlsbad
Fiscal Year
1994/95
1995/96
1996/97
1997/98
1998/99
YTD 1998/99 *
YTD 1999/00
Transient Occupancy
Tax Revenues
$3,256,069
3,407,881
3,879,827
5,841,214
6,985,843
$3,788,152
4,413,306
Source: Cartsbad Convention & Visitors Bureau
* Year-to-date statistics accountfor six months, January through June.
Percentage Change
4.7 %
13.8
50.6
19.6
16.5 %
Economic analysis of the San Diego region indicates a favorable hotel
market environment in the foreseeable future. As such, hotel demand, as
well as average rates, are surging. In addition, the expansion of the San
Diego Convention Center and airport capacity should positively impact the
regional hotel market. Other area data also bode well for the subject's
market. Tourism, a large sector of the area's economy, is growing at a
favorable rate, reflected by visitation statistics and passenger activity at the
area's major airport. Overall, the subject's resort market area appears poised
for further growth, as Carlsbad becomes a more desirable destination for all
demand segments. Additionally, the subject's neighborhood is in a stage of
continued growth and appears to be well suited to support the operation of
a three-to four-star hotel.
HVS Intenzational, San Francisco, Califonzia Proposed Full-Service Hotel Market for Transient Accommodations 28
5. Market for Transient Accommodations
Regional Supply and
Demand Overview
In the economic principle of supply and demand, price varies directly, but
not proportionately, with demand and inversely, but not proportionately,
with supply. In the lodging industry, supply is measured by the number of
guestrooms available and demand is measured by the number of
guestrooms accommodated; the net effect of supply and demand is gauged
by the occupancy rate. The balance of lodging supply and demand towards
equilibrium results in a prevailing price, or the average rate.
Overall supply and demand data compiled by Smith Travel Research (STR)
were obtained for the subject lodging market, which includes all of the
primary and secondary competitors listed in our analysis, except for Inns of
America, which does not report data to STR. STR is an independent
research firm which compiles data on the lodging industry. We find that
Smith Travel· Research data are generally relied upon by typical hotel
buyers. Information since 1994 is presented in the following table.
San Diego County Hotel Market Trends
% Change from Previous Year
% Average % Room
Year Occupancy Change Rate Change Supply Demand Sales
1994 60.5 % $62.46
1995 61.5 1.7 % 63.14 1.1 % 0.0 % 1.9 % 1.5 %
1996 65.0 5.7 68.87 9.1 0.0 5.7 15.3
1997 70.7 8.8 76.17 10.6 0.0 8.8 20.3
1998 78.6 11.2 88.46 16.1 0.0 11.2 29.1
1999 75.9 (3.4) 95.30 7.7 14.9 10.9 19.5
YTD 6/99 79.8 % $92.93
YTD 6/00 80.3 0.6 % 96.55 3.9 % 22.2 % 22.9 % 27.7 %
Source: Smith Travel Research
HVS lntemational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 29
INTERNATIONAL
Competitive Supply
In reviewing the data compiled by STR, it is important to note some of the
inherent limitations. We have found that since hotels are occasionally
dropped in and out of the sample and not every property reports data in a
totally consistent and timely manner, the overall quality of this information
may be affected. These variables can sometimes skew the data for a
particular market. However, we find that STR data are generally relied
upon by typical hotel buyers, and these data will therefore be considered in
this study.
A review of the STR data yields the following observations:
• While year-end occupancies remained in the low-to mid-60% range
from 1994 to 1996, with the strong economic strides in Southern Cali-
fornia and the opening of Legoland, occupancy in 1998 and 1999
reached the mid-to high-70% range.
• Average rate increased markedly, from $62.46 in 1994 to $95.30 in
1999. This trend is favorable in light of the approximately 14.9% in-
creased in supply in 1999.
• Although occupancy dropped by 3.4% from 1998 to 1999 due to the
new supply,· the market remains favorable.
• Supply grew by 22.2% from year-to-date 1999 to 2000, yet occupancy
rates increased by 0.6% and average rate increased by 3.9%.
• Year-to-date trends show that the new supply has been absorbed, oc-
cupancy remains strong, and that average rate is continuing to in-
crease above inflationary growth.
An integral component of the supply and demand relationship is the
current and anticipated supply of competitive lodging facilities. Based on
our evaluation of the market orientation, chain affiliation, location, facilities,
and amenities of the region's hotels, we have identified seven hotels that
will compete most directly with the proposed property. Analysis of these
hotels provides an indication as to how the proposed subject property is
likely to compete when opened. The primary competitors total 919 rooms.
In addition to the primary competitors, three properties are considered to
be somewhat competitive with the proposed subject property. These hotels
are competitive with the proposed subject property to lesser degrees than
the primary competitors and have been weighted based on their degree of
competitiveness. The weighted room count of the secondary competitors
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 30
was 68 in 1999. The primary and secondary competitors totaled 987 rooms
in 1999.
The following chart describes the characteristics pertinent to the subject
property and each of its competitors for 1997, 1998, and 1999. The data for
these properties were compiled through interviews and a review of our
in-house store of operating data. Note that the data presented in the
following chart are weighted, while the STR data presented earlier are not
weighted.
Competitive Resort Properties
Estimated 1999 Market
Segmentation Estimated 1997 Estimated 1998 Estimated 1999
Year No. ol Meeting Meeting Group Average Average Average Occupancy Yield
Property/Location Opened Rooms Space Space/Rm. Commercial Meeting Leisure Occupancy Rate RevPAR Occupancy Rate RevPAR Occupancy Rate RevPAR Penetration Penetration
Grand Pacttic Palisades
5805 Armada Olive 1999 90 8,716 96.8 40 % 30 % 30 % 79.6 % $82.70 $65.82 105.9 % 94.2 %
Hilton Del Mar
15575 Jimmy Durante Boulevard 1989 245 15,000 61.2 20 60 20 75.0 % $93.00 $69.75 83.0 % $101.00 $83.83 80.0 109.00 87.20 106.4 124.8
Residence Inn
2000 Faraday Avenue 1999 121 1,100 9.1 75 5 20 92.0 107.00 98.44 122.4 140.8
Olympic Resort, Hotel, and Spa
6111 El Camino Real 1984 78 4,659 59.7 40 20 40 83.0 75.00 62.25 78.0 82.00 63,96 82.0 95.00 77.90 109.1 111.5
Holiday Inn
850 Palomar Airport Road 1983 144 6,800 47.2 40 20 40 50.0 76.00 38.00 65.0 79.00 51.35 55.0 83.00 45.65 73.2 65.3
Ramada Suites
751 Macadamia Drive 1986 121 943 7.8 50 20 30 78.0 63.00 49.14 84.0 68.00 57.12 76.0 73.00 55.48 101.1 79.4
Quallty Inn & Suites
760 Macadamia Olive 1985 120 500 4.2 50 20 30 60.0 50.00 30.00 74.0 65.00 48.10 72.0 71.00 51.12 95.8 73.1 ----------
Subtotal/Average 919 37,718 41.0 39 % 33 % 28 % 70.6 % $80.42 $56.74 78.1 % $86.70 $67.74 75.0 % $92.24 $69.19 99.8 % 99.0 %
Secondary Competition 68 33 % 11 % 55 % 75.5 % $88.52 $66.83 78.7 % $95.48 $75.16 76.8 % $101 .57 $78.00 102.2 % 111.6 %
Total/Average 987 38 % 31 % 31 % 71.1 % $81.31 $57.79 78.2 % $87.62 $68.51 75.2 % $93.00 $69.90 100.0 % 100.0 %
Map
No. Property
* Subject Property
1 Grand Pacific Palisades
2 Hilton Del Mar
3 Residence Inn
4 Olympic Resort, Hotel, & Spa
5 Holiday Inn
6 Ramada Suites
7 Quality Inn & Suites
COMPE·TITION IMAP
Secondary Competition
Estimated 1999
Market Segmentation Estimated 1997 Estimated 1998 Estimated 1999
Actual Rm. Percentage Weighted Group Average Average Average
Proeerty Count Competitive Rm. Count Commercial Meetin~ Leisure Occupancy Rate RevPAR Occupancy Rate RevPAR Occueancy Rate RevPAR
Cartsbad Inn 62 50 % 31 40 % 10 % 50 % 90.2 % $103.01 $92.87 89.2 % $114.48 $102.12 85.0 % $122.68 $104.22
Tamarack Beach Resort 23 25 6 10 0 90 65.0 105.00 68.25 70.0 110.00 77.00 70.0 120.00 84.00
Inns of America 126 25 32 30 15 55 63.0 65.00 40.95 70.0 69.00 48.30 70.0 73.00 51.10 ------
Total/Average 211 68 33 % 11 % 55 % 75.5 % $88.52 $66.83 78.7 % $95.48 $75.16 76.8 % $101.57 $78.00
HVS lntematio11al, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 33
INTERNATIONAL
The primary competitors are those hotels that are considered to be the most
comparable properties in terms of quality of product, location, rate
structure, and amenities offered relative to the proposed subject property.
The primary competitors include the Grand Pacific Palisades, Hilton Del
Mar, Residence Inn, Olympic Resort, Hotel, and Spa, Holiday Inn, Ramada
Suites, and Quality Inn & Suites. The secondary competitors include the
Carlsbad Inn, Tamarack Beach Resort, and Inns of America. Although the
facilities, rate structure, or market orientations of these secondarily
competitive hotels preclude their inclusion among the primarily
competitive supply, they compete with the subject hotel to some extent.
Each of these property's room counts has been weighted according to its
perceived competitiveness with the proposed subject property.
In general, marketwide demand is evenly distributed among the three
market segments, with a slight majority generated by commercial travelers.
The commercial segment accounted for 38% of demand and both the group
meeting and leisure segments accounted for 31 % of demand in 1999. The
competitive market has enjoyed strong demand levels in recent years.
Specifically, the subject market achieved an overall occupancy of 71.1 % in
1997, 78.2% in 1998, and 75.2% in 1999. Marketwide average rate growth
has also been strong in recent years. Specifically, areawide average rate
increased from $81.31 in 1997 to $93.00 in 1999.
Area hotel operators are cautiously optimistic concerning further growth in
future years, particularly as it pertains to average rate growth and
anticipated increases in incentive business trip and commercial travel
budgets. A general trend toward the development of more commercial
buildings in the area has created more commercial demand. In addition, the
creation of Carlsbad as a travel destination with the grand opening of
Legoland has increased leisure travelers to the area. Overall, this is a
favorable trend for the proposed subject property.
The Hilton Del Mar achieved the highest RevPARs in 1997 ($69.75) and 1998
($83.83), and the Residence Inn achieved the highest RevPAR ($98.44) in
1999. The Residence Inn's high RevPAR is attributable to its close proximity
to commercial buildings and brand-name recognition for business travelers.
In 1999, the Residence Inn and Hilton Del Mar accomplished yield
penetrations of 140.8% and 124.8%, respectively, the highest among the
primary competitors.
Each of the primary competitors is reviewed on the following pages.
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodatio11s 34
INTERNATIONAL
Grand Pacific Palisades Location: Carlsbad, California
Number of Rooms: 90
Historical Operating Performance
Occupancy Yield
Year Occupancy Average Rate RevPAR Penetration Penetration
1999 79.6 % $82.70 $65.82 105.9 % 94.2 %
The Grand Pacific Palisades, owned by Grand Pacific Resorts, opened in
March 1999. The hotel is located on a hill overlooking the Pacific Ocean and
the Carlsbad flower Fields, approximately one mile east of the proposed
site.
The Grand Pacific Palisades features an Olympic-size pool, spacious sun
decks, one Jacuzzi, a full fitness center complete with lockers and a sauna, a
clubroom, and an activity center with a game room. The hotel is currently
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 35
INTERNATIONAL
under construction to build another family pool and Jacuzzi, which are
expected to be completed in September 2000. The Karl Strauss Brewery &
Restaurant provides on-site dining, and features approximately 8,700
square feet of meeting space.
In 1999, the Grand Pacific Palisades achieved an occupancy penetration of
105.9% and a yield penetration of 94.2%. The property was able to capture
more than this high occupancy penetration due to its lower introductory
rates and new facilities, situated in a prime location. According to the
manager, average rate is expected to be increased in 2001. In addition, the
hotel is also used to market its timeshare component by selling
mini-vacations to potential timeshare owners. Therefore, this will help
increase occupancy and average rate.
Currently, 40% of the property's business is attributed to the commercial
demand segment, 30% to the group meeting segment, and 30% to the
leisure segment. The property accommodates slightly more commercial
demand than the primary competitors as a whole due to its close proximity
to commercial buildings such as the Gemological Institute of America (GIA),
and the overall commercial growth in the market area. The property is
considered a primary competitor of the proposed subject property due to its
proximity, facilities, and market demand mix.
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodatio11s 36
arm ±&ft
INTERNATIONAL
Hilton Del Mar Location: Del Mar, California
Number of Rooms: 245
Historical Operating Performance
Occupancy Yield
Year OCCUQancy: Average Rate RevPAR Penetration Penetration
1997 75.0 % $93.00 $69.75 105.5 % 120.7 %
1998 83.0 101.00 83.83 106.1 122.4
1999 80.0 109.00 87.20 106.4 124.8
The Hilton Del Mar, opened in 1989, is located next to the Del Mar Race
Track, which was built in 1936 by Jimmy Durante and Bing Crosby. The
hotel is situated at the intersection of Jimmy Durante Boulevard and
Highland Drive, approximately 13 miles south of the proposed subject
property.
HVS Intenzational, San Francisco, Califonzia Proposed Full-Service Hotel Market for Transient Accommodations 37
INTERNATIONAL
The Hilton Del Mar features an olympic-size pool, two Jacuzzis, a health
club, a business center, two restaurants, a lounge, and a lobby lounge. The
hotel is also adjacent to eight lighted tennis courts and a PGA 59 tee driving
range with a miniature golf course. In addition, the hotel has approximately
15,000 square feet of meeting space. The hotel owners recently renovated
the facilities in 1998.
The Hilton Del Mar consistently achieved the highest average rate
compared to the competitive market from 1997 to 1999 due to its large
amount of meeting space, brand, and location proximate to the race course.
The hotel also achieves higher RevPARs than the competitive market, with
the exception of the Residence Inn in 1999.
The property currently derives approximately 60% of its demand from the
group meeting segment, 20% from the commercial segment, and 20% of its
demand from the leisure segment. Due to larger meeting facilities and
on-site tennis and golf facilities, the Hilton Del Mar accommodates the
majority of its demand from the group meeting segment. The property is a
primary competitor of the proposed property due to its extensive meeting
facilities and its location next to a major entertainment demand generator.
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 38
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Residence Inn Location:
Number of Rooms:
Carlsbad, California
121
Historical Operating Performance
Year Occupanicy Average Rate, RevPAR
1999 92.0 % $107.00 $98.44
Occupancy Yield
Penefrafii!ln Penetration
122.4 % 140.8 %
The Residence Inn, owned by Carlsbad HHG Hotel Development; was
opened in August 1999. The hotel is located at the intersection of College
Boulevard and Faraday Avenue, approximately three miles northeast of the
proposed subject property.
The property features an outdoor pool, a Jacuzzi, a fitness center, a lounge
serving complimentary breakfast and cocktail, and suites equipped with full
HVS Intemational, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 39
INTERNATIONAL
kitchen facilities. In addition, the hotel has approximately 1,100 square feet
of meeting space.
The Residence Inn recorded the highest occupancy of the primary
competition, at 92.0% in 1999. Combined with a high average rate, the
Residence Inn achieved a RevPAR of $98.44. In addition, the hotel achieved
the highest occupancy and yield penetrations, at 122.4% and 140.8%,
respectively, in 1999. In general, this property was considered the market
leader in the primary competitive set in 1999.
The property derives approximately 75% of its demand from the
commercial segment, 5% from the group meeting segment, and 20% from
the leisure segment. Due to the hotel's close proximity to commercial
buildings located in downtown Carlsbad, it derives a majority of its
demand from the commercial segment. In addition, the Residence Inn is
closely located to Legoland, which generates the remaining leisure demand.
The property is considered a primary competitor due to its market
segmentation and close proximity to the proposed subject property.
HVS International, San Fra11cisco, California Proposed Full-Seroice Hotel Market for Transient Accommodations 40
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Olympic Resort, Hotel,
and Spa
Location: Carlsbad, California
Number of Rooms: 78
Historical Operating Performance
Occupancy Yield
Year Occueancr Average Rate RevPAR Penetration Penetration
1997 83.0 % $75.00 $62.25 116.8 % 107.7 %
1998 78.0 82.00 63.96 99.8 93.4
1999 82.0 95.00 77.90 109.1 111.5
The-Olympic Resort, Hotel, and Spa, located at the intersection of Palomar
Airport Road and El Camino Real, is approximately four miles southeast of
the proposed subject property. The hotel originally opened in 1984 and was
refurbished in 1998, which included all of the soft-and casegoods in the
guestrooms, and the carpets and wall coverings throughout the hotel.
HVS International, San Francisco, California Proposed Full-Seruice Hotel Market for Transient Accommodations 41
INTERNATIONAL
The property features a recreational pool, a 25-meter lap pool, a Jacuzzi, a
full fitness center with Nautilus equipment, a sauna, and steam rooms, a
health club, five tennis courts, 48 golf practice tee stations, a restaurant, and
a cocktail lounge. In addition, the hotel has approximately 4,659 square feet
of meeting space.
In 1999, the property recorded the second-highest occupancy rate, at 82%,
and third-highest average rate, at $95, compared to · the primary
competitors. In addition, the hotel achieved occupancy and yield
penetrations greater than 100% of their fair share.
As a result of its many facilities, the property appeals to all of the area's
demand segments. Approximately 40% of its demand is derived from the
commercial segment, 20% from the group meeting segment, and 40% from
the leisure segment. The property, although a relatively older property, is
considered a primary competitor due to its market segmentation and
meeting and leisure facilities offered.
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Acco111111odatio12s 42
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INTERNATIONAL
Holiday Inn Location:
Number of Rooms:
Carlsbad, California
144
Historical Operating Performance
Year
1997
1998
1999
Occupancy
50.0 %
65.0
55.0
Average Rate
$76.00
79.00
83.00
RevPAR
$38.00
51.35
45.65
Occupancy Yield
Penetration Penetration
70.4 % 65.8 %
83.1 74.9
73.2 65.3
The Holiday Inn, located at the intersection of Interstate 5 and Palomar
Airport Road, is approximately two miles southwest of the proposed subject
property. The hotel originally opened in 1983 and the guestrooms and
meeting rooms were most recently renovated at the end of 1999.
HVS lntemational, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 43
INTERNATIONAL
The property features an outdoor pool, a Jacuzzi, a TGIF Friday's restaurant,
and approximately 6,800 square feet of meeting space. In addition, the hotel
is across the street from Carlsbad Company Stores, a retail outlet shopping
mall.
The hotel, although located at a busy intersection, recorded the lowest
occupancy rate in 1997, 1998, and 1999 at 50%, 65%, and 55%, respectively,
compared to the primary competitors. The hotel's average rate was $83 in
1999, which was the fourth highest among the primary competitors.
Similar to the Olympic Resort, Hotel, and Spa, the Holiday Inn's demand is
distributed among three market segments. Approximately 40% of its
demand is derived from the commercial segment, 20% from the group
meeting segment, and 40% from the leisure· segment. In December 1999, the
property became affiliated with Holiday Inn. Prior to this branding, the
hotel operated independently as the Anderson's Inn and before that, a Best
Western. As a result of its shifting affiliations, the hotel achieved occupancy
and yield penetrations below 100% in all three years. The Holiday Inn,
although a relatively older property, is considered a primary competitor
due to its similar market segmentation and close proximity to a major
highway, with excellent visibility and accessibility.
HVS International, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 44
-ffl·~--------
----------
lNTERNATION,H
·::;~~~-'
rt~::'.? i':~:·-·
;;
Ramada Suites Location:
Number of Rooms:
Carlsbad, California
121
Historical Operating Performance
Year
1997
1998
1999
Occupancy Average Rate RevPAR
78.0 %
84.0
76.0
$63.00
68.00
73.00
$49.14
57.12
55.48
Occupancy Yield
Penetration Penetration
109.7 %
107.4
101.1
85.0 %
83.4
79.4
The Ramada Suites, located at the intersection of Macadamia Drive and
Avenida Encinas Street, is approximately three miles southwest of the
proposed subject property. The hotel was built in 1986, located
approximately half a mile from the beach.
HVS International, San Francisco, Califonzia Proposed Full-Service Hotel Market for Transient Accommodations 45
INTERNATIONAL
The property features a heated pool, a Jacuzzi, a restaurant serving
breakfast, and approximately 950 square feet of meeting space. In addition,
each suite is equipped with a full kitchen.
Although the hotel achieved strong occupancies in 1997 and 1998, at 78%
and 84%, respectively, it recorded a 76% occupancy in 1999, one of the
lowest rates among the primary competition. The lower occupancy in 1999
is a result of the introduction of new supply in the market, the Grand
Pacific Palisades and Residence Inn hotels.
The Ramada Suites derives approximately 50% of its demand from the
commercial segment, 20% from the group meeting segment, and 30% from
the leisure segment. Due to the hotel's all-suite facilities, the hotel derives
approximately half of its demand from the commercial segment. In
addition, as a result of the hotel's close proximity to the beach, it derives
approximately one-third of its demand from the leisure segment. The
property is considered a primary competitor of the proposed subject
property due to its market segmentation.
HVS l11tenzatio11al, Sa11 Fra11cisco, Califomia Propo,:ed Full-Sen,ice Hotd 1\lfarket for T rmzsi,mt Accommod11tio11s 46
tW •
INTER NATI ON ,H
Quality Inn & Suites Location: Carlsbad, California
Number of Rooms: 120
Historical Operating Performance
Year
1997
1998
1999
Occupancy
60.0 %
74.0
72.0
Average Rate
$50.00
65.00
71.00
RevPAR
$30.00
48.10
51.12
Occupancy Yield
Penetration Penetration
84.4 % 51.9 %
94.6 70.2
95.8 73.1
The Quality Inn & Suites, located at the intersection of Macadamia Drive
and Avenida Encinas Street, is approximately three miles southwest of the
proposed subject property and directly across from the Ramada Suites. The
hotel was built in 1985 and was flagged as a Travel Lodge until it was
renovated and re-branded in January 2000.
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 47
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The property features a heated pool, a Jacuzzi, a restaurant serving
breakfast, and approximately 500 square feet of meeting space.
The hotel recorded low occupancies and average rates from 1997 to 1999
compared to the primary competition. Similar to the Ramada Suites, the
property derives approximately 50% of its demand from the commercial
segment, 20% from the group meeting segment, and 30% from the leisure
segment. In general, the property operates as a lower-tiered product
compared to the primary competition, but is considered a primary
competitor due to its market segmentation.
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 48
INTERNATIONAL
Secondary Competition In addition to the primary competitors, three hotels compete with the
proposed subject property to a lesser extent. These hotels have been
weighted accordingly.
Additions to Supply
Secondary competition is characterized as such by having a different
market orientation and or average rate structures. The secondarily
competitive hotels comprise an un-weighted aggregate of 211 guestrooms
and are deemed to be either 25% or 50% competitive with the proposed
subject property. This equates to an effective guestroom count for the
secondary competition of 68 units. All of the properties are located in
Carlsbad. Performance of the secondary competitors varied on an
individual basis, although the aggregate of these competitors experienced
an increase in RevPAR in 1999. On an aggregate basis in 1999, the
secondary competition achieved an occupancy of 76.8% at an average rate
of $101.57.
Our fieldwork, which included discussions with hotel operators,
developers, and government officials, indicates that two hotels recently
opened for operation in 1999 and three are planned for development,
including the proposed subject property. Two hotels will be primarily
competitive with the proposed subject property and two of the projects will
be secondarily competitive with the subject upon their completion. The
total weighted room count of the proposed new supply equates to 1,122,
including the subject property, by 2009. This equates to an increase, in ten
years, of approximately 132% over the 1999 room count of 853. Each of the
projects is described below, including the proposed subject property.
The 150-unit Courtyard by Marriott recently opened in June 2000, at the
intersection of Owens Avenue and Camino Vida Roble off Palomar Airport
Road, approximately three miles southeast of the proposed subject
property. The hotel was developed by Carlsbad HHG/APM Hotel Ventures,
which also developed the Residence Inn in Carlsbad. Due to the hotel's
brand-name recognition and expected market segmentation, we have
assigned this property as a primary competitor.
The 161-unit Hilton Garden Inn, located at the corner of Carlsbad
Boulevard and Palomar Airport Road, is approximately three miles
southwest of the proposed subject property. According to the general
manager, the hotel has achieved high occupancy levels since its opening in
July 2000. Due to the hotel's market segmentation and similar facilities, we
have assigned this property as a primary competitor.
HVS bztemational, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 49
::13="\=~ ~-=-~ -INTERNATIONAL
The proposed 106-unit Staybridge Suites is located west of Interstate 5,
between Laguna Drive and Grand Avenue, approximately four miles
northwest of the proposed subject property. Completion of construction of
the hotel is proposed for September 2001. The hotel is expected to cater to
extended-stay travelers, primarily commercial demand. Due to the hotel's
facilities and target market, we have assigned this property a SO%
competitiveness factor.
The proposed 98-unit Inns of America is located at the corner of Avenida
Encinas and Cannon Road and is approximately three miles west of the
proposed subject property. Completion of construction of the hotel is
proposed for January 2002, on an approximately 2.7-acre site. According to
the general manager of the Inns of America on Poinsettia Lane, the
proposed hotel is expected to cater to all demand segments, with a slight
emphasis on commercial demand. Due to the hotel's lower-end pricing
strategy and market segmentation, we have assigned this property a SO%
competitiveness factor.
In addition to these proposed hotels, the 350 rooms of the proposed
full-service subject property are to be built in three phases. The first phase
is proposed for 2004, with 150 ··rooms, phase two is proposed to be
completed in 2007 with 100 rooms, and phase three is expected to open in
2009 with another 100 rooms. Further, 75 units of the timeshare component
of the project are considered additions to supply in our analysis due to their
accessibility by patrons of the hotel.
Due to the length of buildout of the proposed subject property, we have
forecast an additional 150 rooms corning into the market in 2006. These are
only speculative rooms, and are used for our calculation models.
While we have taken reasonable steps to investigate proposed hotel
projects and their status, due to the nature of real estate development, it is
impossible to determine with certainty every hotel that will be opened in
the future, or what their marketing strategies and effect in the market will
be. Depending on the outcome of current and future projects, the value of
the subject property may be positively or negatively affected.
The following chart presents the additions to supply.
Additions to Supply
Historical 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Existing Supply 853 987 987 987 987 987 987 987 987 987 987 987 987 987
Proposed Full Service Hotel 150 1 150 150 250 250 350 350 350 350
Courtyard by Marriott 88 2 150 150 150 150 150 150 150 150 150 150 150 150
Hilton Garden Inn 81 3 161 161 161 161 161 161 161 161 161 161 161 161
Stayb ridge Suites 18 4 53 53 53 53 53 53 53 53 53 53 53
Inns of America 49 5 49 49 49 49 49 49 49 49 49 49
Legoland Time Share 75 5 75 75 75 75 75 75 75 75
Speculative Rooms 150 7 150 150 150 150 150 150
Available Rooms/Night 853 1,156 1,316 1,400 1,400 1,625 1,625 1,775 1,875 1,875 1,975 1,975 1,975 1,975
Nights per Year 365 365 365 365 365 365 365 365 365 365 365 0 365 0
TOTAL SUPPLY 311,264 421,829 480,327 511,091 511,091 593,216 593,216 647,966 684,466 684,466 720,966 720,966 720,966 720,966
Overall Supply Growth 35.5 % 13.9 % 6.4 % 0.0 % 16.1 % 0.0 % 9.2 % 5.6 % 0.0 % 5.3 % 0.0 % 0.0 % 0.0 %
MARKETWIDE OCCUPANCY 75.2 % 73.0 % 72.0 % 72.2 % 74.1 % 70.5 % 72.1 % 70.5 % 70.1 % 71.4 % 71.0 % 72.2 % 73.4 % 74.6 %
January 2004 opening of tlie 250-unit proposed subject hotel
June 2000 opening of the 100% competitive 150-unit Courtyard by Marriott
3 July2000 opening of the 100% competitive 161-unitHilton Garden Inn
4 September 2001 opening of the 50% competitive 106-unit Staybridge Suites
5 January 2002 opening of the 50% competitive 98-unit Inns of America
6 January 2004 opening of the 75-room time share component of proposed hotel
7 January 2006 opening of 50% competitive 150 speculative rooms
HVS lntemational, San Francisco, California Proposed Full-Service Hotel Market for Transie11t Accommodatio11s 51
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Demand Trends
Historical Market Trends
Accommodated
Year Room Nights
1997 170,237
1998 187,302
1999 233,929
Average Annual Compounded
Percent Change 1997-1999
Demand Analysis
Using Market
Segmentation
The following chart presents the most recent market trends for the subject
hotel market. The data pertain to the competitive properties previously
discussed in this section.
Percent Room Nights Percent Market Market Percent Market Percent
Change Available Change Occu~anc:t ADR Change RevPAR Change
239,531 71.1 % $81.31 $57.79
10.0 % 239,531 0.0 % 78.2 87.62 7.8 % 68.51 18.6 %
24.9 311,264 29.9 75.2 93.00 6.1 69.90 2.0
17.2 % 14.0 % 6.9 % 10.0%
Source: HVS International
As indicated in the preceding table, marketwide demand has exhibited
continued growth since 1997; the market achieved an occupancy above 70%
each year, with an occupancy of 75.2% achieved in 1999. While supply has
grown dramatically in 1999, by 29.9%, occupancy decreased slightly, by
3.9%. Due to strong lodging demand, marketwide average rate grew at an
average annual compounded rate of 6.9% between 1997 and 1999.
Marketwide average rate growth is expected to moderate but remain above
inflation.
With healthy demand levels and robust growth in average rate,
marketwide RevPAR increased by an average annual compounded rate of
10.0% from 1997 to 1999.
Based on our fieldwork, area analysis, and knowledge of the local lodging
market, we have estimated the 1999 distribution of accommodated hotel
room night demand, by segment, for the market as follows:
HVS lntenzational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 52
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Induced Demand
Marketwide Accommodated Room Night Demand
Annual Room
Night Demand Percentage of
Market Segment Market Total
Commercial 89,185 38.1 %
Group Meeting 73,381 31.4
Leisure 71,363 30.5
Total 233,929 100.0 %
Commercial demand slightly dominates in the local market, accounting for
38.1 % of the estimated 1999 room night demand, while group meeting
demand accounted for 31.4% and leisure demand accounted for 30.5%.
Induced demand represents additional room nights that are likely to be
attracted to the market following the introduction of new supply or new
demand generators. We are of the opinion that the additions to supply will
induce additional commercial, group meeting, and leisure demand due to
their new facilities, as well as their marketing and sales efforts. Based on the
number of additional rooms, we estimated the potential demand mix to be
attracted to the market based on a market segmentation of 35% commercial
demand, 25% group meeting demand, and 40% leisure demand, and an
assumed occupancy of 74%. We estimate that, of the accommodated
demand, 20% of the commercial demand, 75% of the group meeting
demand, and 25% of the 'leisure demand will be induced. Note, the above
calculations also consider a small amount of demand that is not able to be
accommodated by the current supply during peak operating periods, such
as the summer months when the competitive set is generally sold out. The
additions to supply will be able to accommodate this demand during future
sell-out periods. The following chart details our quantification of total
induced demand.
HVS International, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 53
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Induced Demand Calculation
Total
Total Additional No. of Market Segment Estimated Percentage Induced
Market Segment Room Supply Days Percentage Occupancy Induced Room Nights
Commercial (
Group Meeting (
Leisure (
Induced Demand Forecast
2000
Phase-in: 27 %
Commercial 5,721
Group Meeting 15,328
Leisure 8,177
Total 29,226
1,122 X 365 X 35 % X 74.0 % X 20.0 % = 21,200
1,122 X 365 X 25 X 74.0 X 75.0 = 56,800
1,122 X 365 X 40 X 74.0 X 25.0 = 30,300
Total Induced 108,300
As the increases in supply are forecast to occur, induced demand is phased
in. The latent demand projection for each forecast year are based on the
ratio of the build up of new rooms per year to the total new supply. The
following chart details our induced demand projection.
2001 2002 2003 2004 2005 2006 2007 2008 2009
41 % 49 % 49 % 69 % 69 % 82 % 91 % 91 % 100 %
8,748 10,340 10,340 14,590 14,590 17,423 19,311 19,311 21,200
23,438 27,703 27,703 39,089 39,089 46,679 51,740 51,740 56,800
12;503 14,778 14,778 20,852 20,852 24,901 27,601 27,601 30,300
44,689 52,821 52,821 74,531 74,531 89,003 98,652 98,652 108,300
Based on this procedure, we forecast the following average annual
compounded market segment growth rates. Note that these growth rates
consider induced demand.
Forecast of Demand Growth by Segment
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Commercial 10.0 % 5.0 % 2.0 % 3.0 % 3.0 % 3.0 % 2.0 % 2.0 % 2.0 % 2.0 % 1.0 %
Group Meeting 10.0 8.0 6.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Leisure 25.0 5.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Weighted Average* 31.6 % 12.3 % 6.7 % 2.6 % 10.5 % 2.2 % 6.8 % 5.0 % 1.9 % 4.8 % 1.6 %
*Includes latent demand
HVS lntemational, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 54
forecast of Marketwide
Occupancy
The forecast of marketwide occupancy is based on a forecast of marketwide
demand and supply. Based on our market research and discussions with
hotel operators, we have estimated the occupancy rates of the subject's
competitors. The 1999 areawide estimate of room night demand, by market
segment, forms the historical base demand. To the segmented demand base
we have applied annual growth factors that were derived from the most
relevant economic and demographic data previously analyzed. To the
accommodated demand forecasts, we have added induced demand. In the
following table, total demand is then divided by the forecast of market
supply, rendering an overall estimate of areawide occupancy. Thus, the
forecast of marketwide occupancy is calculated as follows.
Forecast of Marketwide Occupancy
Historical · 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Commercial
Growth Rate 10.0 % 5.0 % 2.0 % 3.0 % 3.0 % 3.0 % 2.0 % 2.0 % 2.0 % 2.0 % 1.0 % 1.0 % 1.0 %
Accommodated Demand 89,185 98,103 103,008 105,068 108,220 111,467 114,811 117,107 119,449 121,838 124,275 125,518 126,773 128,041
Latent Demand 7,045 10,873 12,902 12,979 18,426 18,541 22,235 24,751 24,860 27,414 27,476 27,539 27,602
Group Meeting
Growth Rate 10.0 % 8.0 % 6.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 %
Accommodated Demand 73,381 80,720 87,178 92,409 94,257 96,142 98,065 100,026 102,027 104,068 106,149 108,272 110,437 112,646
Latent Demand 18,596 28,834 34,464 34,599 49,014 49,212 59,010 65,681 65,960 72,722 73,041 73,366 73,697
Leisure
Growth Rate 25.0 % 5.0 % 4.0 % 4.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 %
Accommodated Demand 71,363 89,203 93,663 97,410 101,306 104,345 107,475 110,699 114,020 117,441 120,964 124,593 128,331 132,181
Latent Demand 14,195 22,165 26,656 27,131 38,804 39,343 47,645 53,567 54,346 60,541 61,448 62,383 63,345
Totals
Commercial 89,185 105,148 113,881 117,970 121,199 129,893 133,352 139,342 144,200 146,698 151,689 152,994 154,312 155,643
Group Meeting 73,381 99,316 116,012 126,873 128,856 145,156 147,277 159,036 167,708 170,028 178,871 181,313 183,803 186,343
Leisure 71,363 103,398 115,828 124,066 128,437 143,149 146,818 158,344 167,587 171,787 181,505 186,041 190,714 195,526
TOT AL DEMAND 233,929 307,862 345,721 368,909 378,492 418,198 427,447 456,722 479,495 488,513 512,065 520,348 528,829 537,512
Annual Forecasted Growth 31.6 % 12.3 % 6.7 % 2.6 % 10.5 % 2.2 % 6.8 % 5.0 % 1.9 % 4.8 % 1.6 % 1.6 % 1.6 %
Existing Supply 853 987 987 987 987 987 987 987 987 987 987 987 987 987
Proposed Full-Service Legoland Hotel 150 1 150 150 250 250 350 350 350 350 Courtyard by Marliott 88 2 150 150 150 150 150 150 150 150 150 150 150 150
Hilton Garden Inn 81 3 161 161 161 161 161 161 161 161 161 161 161 161
Staybrtdge Suites 18 4 53 53 53 53 53 53 53 53 53 53 53 Inns of America 49 5 49 49 49 .49 49 49 49 49 49 49
Legoland Time Share 75 5 75 75 75 75 75 75 75 75 Speculative Rooms 150 7 150 150 150 150 150 150
Available Roomsft'Jight 853 1,156 1,316 1,400 1,400 1,625 1,625 1,775 1,875 1,875 1,975 1,975 1,975 1,975
Nights perYear 365 365 365 365 365 365 365 365 365 365 365 0 365 0 TOT Al SUPPLY 311,264 421,829 480,327 511,091 511,091 593,216 593,216 647,966 684,466 684,466 720,966 720,966 720,966 720,966
Overall Supply Growth 35.5 % 13.9 % 6.4 % 0.0 % 16.1 % 0.0 % 9.2 % 5.6 % 0.0 % 5.3 % 0.0 % 0.0 % 0.0 %
MARKETWIDE OCCUPANCY 75.2 % 73.0 % 72.0 % 72.2 % 74.1 % 70.5 % 72.1 % 70.5 % 70.1 % 71.4 % 71.0 % 72.2 % 73.4 % 74.6 %
1 January 2004 opening of the 350-unilproposed subject hotel.
2 June 2000 opening of the 100% competitive 150-unilCourtyard by Marriott
3 July2000 opening of the 100% competitive 161-unitHllton Garden Inn
4 September 2001 opening of the 50% competitive 106-unil Sla}bridge Suites
5 January 2002 opening of the 50% colJlletitive 98-unit Inns of America
6 January 2004 opening of the 75-room time share component of proposed hotel
7 January2006 opening of 50% colJlletitive 150 speculative rooms
HVS lntemational, San Francisco, Califomia Proposed Full-Service Hotel Market for Transient Accommodations 56
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Average Rate Forecast of
the Proposed Subject
Property
As shown, marketwide occupancy is expected to decline in 2004 due to the
addition of new rooms into the competitive market. As the market absorbs
the new supply, areawide occupancy is expected to rebound, eventually
returning to the low-to mid-70% range.
Use 1999 average rates as a starting point, we have applied a forecasted
growth rate to each segment's average rate. It is important to note that room
rate inflation does not necessarily conform to the underlying monetary
inflation rate. Lodging facilities are typically most influenced by market
conditions indicated by the relationship between supply and demand.
Based on our analysis of the market and a January 2004 opening date, we
forecast that the proposed property will have an average rate of $136.39 in
2004, $150.98 in 2007, and $160.91 in 2009. These average rates are intended
to reflect our opinion of how the proposed hotel facility would compete in
the existing market during the three phases; each phase will consist of 150
new rooms. The following table illustrates the methodology we have used
for projecting the subject property's average rate.
Forecast of Average Rate by Market Segment
Historical 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Segmented ADR Growth Rates
Commercial N/A 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 %
Group Meeting N/A 3.0 3.0 3.0 3.0 3.0 3.0 3.0 5.0 4.0 3.0 5.0 4.0 3.0
Leisure N/A 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 5.0 3.0 3.0
Segmented ADR
Commercial $125.00 $128.75 $132.61 $136.59 $140.69 $144.91 $149.26 $153.73 $158.35 $163.10 $167.99 $173.03 $178.22 $183.57
Group Meeting 120.00 123.60 127.31 131.13 135.06 139.11 143.29 147.58 154.96 161.16 166.00 174.30 181.27 186.71
Leisure 110.00 115.50 118.97 122.53 126.21 130.00 133.90 137.91 142.05 146.31 150.70 158.24 162.98 167.87
Segmented Rooms Captured
Commercial 11,185 11,185 11,185 11,185 11,185 10,190 11,692 11,185 18,263 17,601 20,159 20,332 20,507 20,684
Group Meeting 10,078 10,078 10,078 10,078 10,078 10,048 10,195 10,078 21,240 24,934 36,449 41,766 43,968 44,575
Leisure 19 400 19,400 19,400 19,400 19,400 17,836 18,970 19,400 24,576 25,192 32,161 31,317 30 414 31181
Total 40,663 40,663 40,663 40,663 40,663 38,074 40,857 40,663 64,079 67,728 88,769 93,414 94,889 96,440
Segmented Rooms Revenue (000s)
Commercial $1,398 $1,440 $1,483 $1,528 $1,574 $1,477 $1,745 $1,720 $2,892 $2,871 $3,386 $3,518 $3,655 $3,797
Group Meeting 1,209 1,246 1,283 1,322 1,361 1,398 1,461 1,487 3,291 4,018 6,050 7,280 7,970 8,323
Leisure 2,134 2,241 2,308 2,377 2,448 2,319 2,540 2,676 3,491 3,686 4 847 ·4,955 4,957 5,234
Total $4,742 $4,926 $5,074 $5,226 $5,383 $5,193 $5,746 $5,882 $9,674 $10,575 $14,284 $15,753 $16,582 $17,354
Imputed ADR $116.60 $121.15 $124.79 $128.53 $132.39 $136.39 $140.63 $144.66 $150.98 $156.14 $160.91 $168.64 $174.75 $179.94
Overall Growth N/A 3.9 % 3.0 % 3.0 % 3.0 % 3.0 % 3.1 % 2.9 % . 4.4 % 3.4 % 3.1 % 4.8 % 3.6 % 3.0 %
Fiscal Year: 2004 2005 2006 2007 2008 2009 2010 2011
Average Rate $136.39 $140.63 $144.66 $150.98 $156.14 $160.91 $168.64 $174.75
Expressed in Base-Year Dollars $117.65 $117.78 $117.62 $119.18 $119.67 $119.73 $121.83 $122.57
HVS Intemational, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodations 58
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Occupancy Forecast of
the Proposed Subject
Property
We feel that the resulting average rates for each scenario are appropriate
given the proposed improvements, the property's affiliation with Legoland,
the subject site's location, and the assumed professional management.
Our forecast of the subject property's occupancy is detailed as follows.
Projection of Subject Property's Occupancy
Historical 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Commercial
Demand 89,185 105,148 113,881 117,970 121,199 129,893 133,352 139,342 144,200 146,698 151,689 152,994 154,312 155,643
Penetration Factor 85.0 % 95.0 % 95.0 % 95.0 % 90.0 % 75.0 % 75.0 % 75.0 % 75.0 %
Capture 10,190 11,692 11,185 18,263 17,601 20,159 20,332 20,507 20,684
Group Meeting
Demand 73,381 99,316 116,012 126,873 128,856 145,156 147,277 159,036 167,708 170,028 178,871 181,313 183,803 186,343
Penetration Factor 75.0 % 75.0 % 75.0 % 95.0 % 110.0 % 115.0 % 130.0 % 135.0 % 135.0 %
Capture 10,048 10,195 10,078 21,240 24,934 36,449 41,766 43,968 44,575
Leisure
Demand 71,363 103,398 115,828 124,066 128,437 143,149 146,818 158,344 167,587 171,787 181,505 186,041 190,714 195,526
Penetration Factor 135.0 % 140.0 % 145.0 % 110.0 % 110.0 % 100.0 % 95.0 % 90.0 % 90.0 %
Capture 17,836 18,970 19,400 24,576 25,192 32,161 31,317_ 30,414 31,181
Total Capture 38,074 40,857 40,663 64,079 67,728 88,769 93,414 94,889 96,440
Available Rooms 150 150 150 250 250 350 350 350 350
Available Room Nights 54,750 54,750 54,750 91,250 91,250 127,750 127,750 127,750 127,750
Occupancy 69.5 % 74.6 % 74.3 % 70.2 % 74.2 % 69.5 % 73.1 % 74.3 % 75.5 %
Rounded 70 % 75 % 74 % 70 % 74 % 69 % 73 % 74 % 75 %
Overall Penetration
Fair Share 9.2 % 9.2 % 8.4 % 13.3 % 13.3 % 17.7 % 17.7 % 17.7 % 17.7 %
Market Share 9.1 9.6 8.9 13.4 13.9 17.3 18.0 17.9 17.9
Overall Penetration 98.6 103.6 105.4 100.2 104.0 97.8 101.3 101.3 101.3
Market Mix
Commercial 27 % 29 % 28 % 29 % 26 % 23 % 22 % 22 % 21 %
Group Meeting 26 25 25 33 37 41 45 46 46
Leisure 47 46 48 38 37 36 34 32 32
Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %
HVS lntematio11al, San Francisco, California Proposed Full-Service Hotel Market for Transient Accommodat1011s 60
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This forecast of occupancy levels reflects typical rates of growth for a new
hotel property such as the proposed Legoland facility. Considering the size,
quality, and orientation of the proposed developments, the subject
property's occupancy is forecast at 70% in 2004, when the property first
opens, and increases to 75% in 2005. Occupancy is then forecast to decrease
to 70% in 2007 when phase two of the development opens. In 2009, when
the third phase of 150 rooms enters the market supply, we have forecast
occupancy at 69%. When all the phases have been constructed, an
occupancy level of 73% in 2010 is considered appropriate due to the
property's proposed facilities and the market area.
The following chart summarizes our forecast of occupancy and average rate
for the proposed full-service hotel through 2010, the stabilized year.
Forecast of Occupancy and Average Rate
Occupancy
Average Rate
2004
69.5 %
$136.39
2005
74.6 %
$140.63
2006
74.3 %
$144.66
2007
70.2 %
$150.98
2008
74.2 %
$156.14
2009
69.5 %
$160.91
2010
73.1 %
$168.64
HVS lntenzational, San Francisco, Califonzia Proposed Full-Service Hotel Statement of Assumptions and Limiting Conditions 61
INTERNATIONAL
6. Statement of Assumptions and Limiting
Conditions
1. This study is to be used in whole and not in part.
2. No responsibility is assumed for matters of a legal nature, nor do we
render any opinion as to title, which is assumed to be marketable
and free of any deed restrictions and easements.
3. There are no hidden or unapparent conditions of the property,
sub-soil or structures, such as underground storage tanks, that
would render it more or less valuable. No responsibility is assumed
for these conditions or any engineering that may be required to
discover them.
4. We have not considered the presence of any form of toxic waste.
The appraisers are not qualified to detect any hazardous substances
and urge the client to retain an expert in this field if desired.
5. We have made no survey of the property, and assume no
responsibility in connection with such matters.
6. All information, financial operating statements, estimates, and
opinions obtained from parties not employed by HVS International
are assumed to be true and correct. We can assume no liability
resulting from misinformation.
7. Unless noted, we assume that there are no encroachments, zoning
violations, or building violations encumbering the subject property.
8. All mortgages, liens, encumbrances, leases, and servitudes have
been disregarded unless specified otherwise.
HVS lntemational, San Francisco, Califonzia Proposed Full-Service Hotel Statement of Assumptions and Limiting Conditions 62
INTERNATIONAL
9. No portions of this report may be reproduced in any form without
our permission, and the report cannot be disseminated to the public
through advertising, public relations, news, sales, or other media.
10. We are not required to give testimony or attendance in court by
reason of this analysis without previous arrangements, and only
when our standard per diem fees and travel costs are paid prior to
the appearance.
11. If the reader is making a fiduciary or individual investment decision
and has any questions concerning the material presented in this
report, it is recommended that the reader contact us.
12. We take no responsibility for any events or .circumstances that take
place subsequent to the date of our field inspection.
13. The quality of a lodging facility's on-site management has a direct
effect on a property's economic viability. The occupancy and
average rate forecasts presented in this analysis assume responsible
ownership and competent management. Any variance from this
assumption may have a significant impact on the projected
operating results.
14. The estimated operating results presented in this report are based
on an evaluation of the overall economy, and neither take into
account nor make provision for the effect of any sharp rise or
decline in local or national economic conditions. We do not warrant
that the estimates will be attained, but they have been prepared on
the basis of information obtained during the course of this study
and are intended to reflect the expectations of typical investors.
15. This study was prepared by HVS International, a division of M&R
Valuation Services, Inc. All opinions, recommendations and
conclusions expressed during this assignment have been rendered
by the staff of M&R Valuation Services, Inc., acting solely as
employees and not as individuals.
16. This study assumes the proposed improvements will be constructed
as described in this report in a good, workmanlike manner.
17. Our market study assumes that the proposed hotel improvements
will be affiliated with a management company of an established
HVS lntenzational, San Francisco, Califonzia Proposed Full-Service Hotel Statement of Assumptions and Limiting Conditions 63
::l;f::_"\=-~ ~-a
INTERNATIONAL
brand with a national reservation system. Our market study
conclusion is in accordance with the description and plans provided
by the client.
18. The developer of the proposed improvements is planning to build a
timeshare project to be associated with the proposed subject
property. Although not quantified in the hotel's forecast occupancy,
this analysis assumes that the timeshare units are constructed in
tandem with the proposed hotel improvements and at least 75
timeshare units are available for booking by the hotel.
19. The analysis assumes that Legoland will be a significant contributor
to the marketing of the proposed subject hotel. The occupancy and
average rate forecast assumes that the proposed hotel will be
prominently featured by and facilities cross-sold with Legoland.
HVS International, San Francisco, California Proposed Full-Service Hotel Certification 64
=EJ~=-le= ~ia
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7. Certification
We, the undersigned consultants, hereby certify:
1. that the statements and opinions presented in this report, subject to
the limiting conditions set forth, are correct to the best of our
knowledge and belief;
2. that Jennifer Hsu and Elaine Sahlins personally inspected the
property described in this report; Suzanne R. Mellen, CRE, MAI,
inspected the site during the course of a prior assignment and
participated in the analysis and conclusions contained herein;
3. that the consultants have extensive experience in hotel market
studies and believe that they are competent to undertake this
assignment;
4. that we have no current or contemplated interests in the real estate
that is the subject of this report;
5. that we have no personal interest or bias with respect to the subject
matter of this report or the parties involved;
6. that this report sets forth all of the limiting conditions (imposed by
the terms of this assignment) affecting the analyses, opinions, and
conclusions presented herein;
7. that this report has been prepared in accordance with and is subject
to the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal
Institute;
8. that the use of this report is subject to the requirements of the
Appraisal Institute relating to review by its duly authorized
representatives;
HVS lntemational, San Francisco, California Proposed Full-Service Hotel Certification 65
INTERNATIONAL
9. that this report has been prepared in accordance with the Uniform
Standards of Professional Appraisal Practice ( as adopted by the
Appraisal Foundation);
10. that no one other than the undersigned prepared the analyses,
conclusions, and opinions concerning real estate that are set forth in
this market study report;
11. that as of the date of this report, Suzanne R. Mellen, CRE, MAI, has
completed the requirements of the continuing education program of
the Appraisal Institute;
12. that our engagement in this assignment was not contingent upon
the development or reporting of predetermined results.
employee of M&R Valuation Services, Inc.
Elaine Sahlins, as an
employee of M&R Valuation Services, Inc.
Suzanne R. Mellen, CRE, MAI, as an
employee of M&R Valuation Services, Inc.
HVS International, San Francisco, California Proposed Full-Service Hotel
INTERNATIONAL
Addenda
Engagement Letter
Photographs of Subject Site
Addenda
.
' '(_{
INTERNATIONAL
Submitted to:
Mr. Tim Stripe
Co-President
Grand Pacific Resorts
5900 Pasteur Court, Suite 200
Carlsbad, CA 92008
(760) 431-8500-
(760) 431-4580 FAX
Prepared by:
HVS International
Division of M&R Valuation Services, Inc.
116 New Montgomery Street, Suite 620
San Franci~co, California 94105
( 415) 896-0868
June23,2000
. . ,. . .
Proposal for a Mark~t Study,
Feasibility Analysis, and
Appraisal Report
Proposed Legolaiiif Hot¢1
Carlsbad, California
·. . . . . ~
HVS International, San Francisco, California Proposal 2
INTERNATIONAL
Proposal for a Market Study, Feasibility Analysis,
and Appraisal Report
Objective
Phase One: Fiel~
Research
Pursuant to our conversation, I am ·pleased to submit this proposal for
' services of the HVS International division of M&R Valuation Services in
connection with the Proposed Legoland Hotel, Carlsbad, CA. This proposal
sets forth a description of the objectives and scope of the assignment, along
with the m.~thodology to be employed, an estimate of the time requirements
and a sched,ule of professional fees.
The preliminary objective of this assignment is to evaluate market supply and ·
demand {Phase One) and provide a_ recommendation for the optin_,.al hotel
prodµct(s) for your site. We will analyze the relevant economics and prepare
a concise market study with a projection of rooms revenues (Phase Two). A
ten-year cash flow projection (Phase Three) will then be prepared. Should
you decide to proceed with the project we will extend our analysis in~o a
· complete self-contained feasibility study and appraisal report (Phase Four).
Our valuation will be perforµi.ed in accordance with the standards stipulated
by the µniform Standards of Professional Appraisal Practice (USP AP). Please
note that the feasibility analysis and valuation are set forth to be performed in
Phase Four, but they can also be performed as part of Phase Three, depending
upon your preference.
In order to accomplish the objectives described above, our work will be
conducted in four phases✓ which typically include the following steps:
1. We will meet with you, your client, and/or your client1s representatives to
discu·ss our study in more detail and formulate a schedule for performing
the fieldwork. At this time, we will gather any information from yo:u that
m.ay assist us in performing this assignment (a list of necessary
information is set forth in this proposal).
2. An on-site inspection of the site will be made to determine the suitability
of the land for the proposed development. . The physical orientation of the
subject site with respect to access to and visibility from. highways, other
··,
HVS International, San Francisco, California Proposal3
INTERNATIONAL
forms of transportation, and the local demand for accommodations will be
analyzed. We will also review_ the supportive nature of surrounding land
uses as they relate·to the subject property.
3. Arclutectural plans or preliminary c;onceptttal drawings for the proposed
improvements will be reviewed, if available.
4. _ The demand for transient accommodations will be investigated to identify
the various generators of visitation operating within the local market. The
current and anticipated potential of each of these_ market segments will be ·
evaluated to determine the extent 9f existing and future demand based on
interviews with officials of business and government as well as ·statistical
data collected during-fieldwork. In conjunction with_the identification of
potential demand, an investigation will be made of the· strengths of the
respe_ctive market segments. Seasonality,. weekly demand fluctuations·,-
vulnerability to economic trends and changes in travel patterns, and other
related factors will be ·analyzed.
5. Potentially competitive lodging facilities will be evaluated to determine
their market position with respect to ·the subject. Identified properties
displaying similar market attributes will receive a physical inspection
along with selective management interviews to ·estimate levels of
occupancy, room rates, market pe1:1etrations,· -~d other pertinent
operational characteristics. The.competitive factors that will be specifically
reviewed include: location, market orientation, quality of facilities and
amenities, physical condition, management expertise, operating
performance, and chain affiliation.
6. The potential for future hotel development will be assessed to determine
the prognosis of the northern San Diego County market over the short-
and long-term. Through interviews with hotel operators, ·developers,
government officials, and others, we will ascertain whether any
potentially competitive projects are under construction, proposed, or
rumored.
7. Statistical data relating to general economic and demographic trends often
foreshadow future potential for market areas and neighborhoods.
Interviews with local chambers of commerce, economic development
agencies, demand generators, and other related organizations, along with
an ll).yestigation of the subject's primary market area, will reveal patterns
reflecting growth, stability, or decline and the impact upon the demand
for lodging accommodations.
· HVS International, San Francisco, California Proposal4
INTERNATIONAL
Phase Two: Market
Study
8. Based upon our field research and supply and demand analysis, we will
develop a recpnunendation as to the optimum lodging facilities for the
proposed property.
9. · Depending on the nature of the assignment and the. individual
characteristics of the subject's market, our fieldwork may also include:
. .
• Interviews witJ+ zoning and building officials, local planners, highway
officials, and property assessors;
• Discussions with other appraisers, counselors, hotel companies, real
estate and mortgage brokers, architects, builders, and devek>pers.
At. the conclusion of Phase One we will organize and analyze all of ~e data
compiled during our field research and fill in any missing information. ·
Economic and demographic statistics, market supply and demand trends,
competitive data, and pertinent observations will be set for~ for discussion ..
Based upon our research we will provide you with a verbal overview of our
findings regarding what size hotel can be supported within. the market, and
what we believe would be the· optimal facilities and amenities for your
proposed development.
1. Based on the data and information gathered during the fieldwork phase,
along with our extensive library of actual hotel operatin~ statements,
financing statistics, area hotel trends, and investor requirements, we will
:first perform a supply and demand analysis to determine historical and
projected overall market performance.
. .
2. Our supply a:n.d demand analysis will then be expanded into a forecast of
the proposed subject's performance based upon pote.ntial market
penetration by demand segment and/or through a seasomility analysis
resulting in a forecast of occupancy up through a stabilized level of
operation.
3. Average rate for the subject property will be forecast based upon
segmented rates, cross-checked with comparative competitive average
rates, resulting in a quantification of the subject's overall rooms revenue.
At .the conclusion of Phase Two we will provide you with a concise Market
Study report setting forth our conclusions regarding what is supportable
within the local hotel market, a supply and demand analysis, our
recommendation regarding the size of the subject hotel and the facilities to be
offered, and a five-year forecast of the_ subject property's occupancy and
average daily rate with supporting schedules. -
HVS International, San Francisco, California Proposals
tiW
INTERNATIONAL
Phase Three:
Ten-Year Forecast
of Income and Expense
Phase· Four: ·
Feasibility Study and
Appraisal Report
Upon your review of our Phase Two findings, and with your authorization,
we will proceed with Phase Three, a ten-year forecast of income and expense.
This phase entails the following steps:
1. Local data relating to departmental revenues, other ·than rooms, will be
researched. In most-instances, we will attempt. to utilize actual
departmental revenue results from comparable properties in our
economic analysis of your proposed ~otel.
2. Local labor costs, sales, energy rates, and assessed val'Ll;~S and taxes will be
res_earched and considered in the analysis. Using actual expense
statements from comparable lodging ·facilities, we will develop expense
estimates corresponding to the level of activity and quality -of operations
· indicated by the projected occupancy and average rate and other
departmental revenues.
3. A ten-year forecast of income and expenses (net income available for debt
service) representing future expectations of income potential will be made
through a series of build-up years, a stabilized year and beyond. Our
projected inc_ome statements conform with the Uniform System of
Accounts for Hotels anq include a detailed line-by-line account of all
revenue and expense sources.
At the conclusion of our analysis we will incorporate the ten year fo~ecast of
income and expense into the Market Study Report prepared in the· earlier
phase. This document will be useful for obtaining preliminary interest in the
project by lenders, investors, and hotel management companies.
Should you decide to proceed with development of the project we will then
expand om: initial report into a complete Feasibility Study and Appraisal
Report. Additional research and analysis will include the.following:
1. Land sales will be researched in order to develop an estimate of the
subject's land. The cost to construct ~he proposed improvements will be
estimated via a cost estimating service to which we subsrnbe, or will be
provided by you from an alternative source. Other development costs,
such as pre-opening expenses, etc., will be projected by HVS in order to
derive an estimate of complete development cost.
2. The current market for hotel and motel. transfers,' mortgage rates, and
hostelry equity investment requirements will be researched. Using these
market indicators as a base, and adjusting for potential investment ·
HVS International, San Francisco, California Proposal 6
benefits and risks displayed by the subject property, we will formulate
appropriate capitaliz~tion· and discount rates.
3. Following the recommended procedures set forth in the textbook, Hotels
and Motels: A Guide to Market Analysis, Investment Analysis, and Valuations,1
which we' authored for the Appraisal Institute, an estimate of market
value will be· developed by the income capitaljza-i:ion approach. A
mortgage-equity, ten-year discounted cash flow analysis will be utilized to
convert our ten-year forecas~ into an estimate of value.
4. Sales of comparable hotels will be researched and adjusted in order to
develop an estimate of market value via the sales comparison approach.
This approach is generally included to assess market activity and to
provfde a value cross-check to our value via the income· approach.
5. A feasibility analysis will be prepared based upon the project's estimated
development cost, the ten-year forecast of net income available for debt
service and our income approach value conclusion.· Depending upon
your preference, this analysis can be as simple as presenting that the
market value via the income approach exceeds project cost, or we can
hypothesize debt service · and equity contributions, and set forth the
equity yield and annual cash:-on-cash returns_ which are forecasted to be
generated by the project. -
Docu:i:nentation of our findings, value estimate, and feasibility conclusions
will be set forth in our self-contained Feasibility Study and Appraisal report.
Conforming to the standards of the Appraisal Institute (MAI) and USP AP, the
report will contain the following sections:
1. Purpose of the feasibility study and appraisal and definition of value;
2. Description of the site and proposed physical improvements
and amenities;
3. Review of the area and neighborhood;
4. Analysis of the market for transient accommodations;
5. Examination of existing and proposed competition;
6. Forecast of income and expense;
7. Development of appropriate discount arid capitalization-rates;
1Rushmore, Stephen. Hotels and Motels: A Guide to Market Analysis, Investment Analysis, and
Valuations. Chicago: Appraisal Institute; 1992.
HVS International, San Francisco, California Proposa17
,INT"ERNATIONAL
Requested Information
Timing
Professional Fees
8. Estimation of land value and total project development cost;
9. Review of comparable hotel sales, where relevant data is available;
10. Feasibility analysis and value conclusion; and
11. Signed MA.I° certifica~on.
Graphics such as photographs, maps, surveys, plans and charts will be
_included in the report to assist in visualizing our findings.
To aid us in performing this assignment, we request that you provide us with
the following information (where applicable):
1. Any pertinent leases, managem,ent contracts, title reports,
latest real and, personal property tax bills, etc.; ·
2. Architectural and plot plans, surveys, and legal descripticms;
3. Any documentation pertaining to existing zoning, development
approvals, conditional use permits, water rights, etc.;
4. Operating budgets, projections, marketing plans, etc.; and
5. Past appraisals, market and feasibility studies, and prospectuses:
We anticipate that Phase One: Field Research can be completed wi~
approximately 15 to 20 days of your execution of this agreement and receipt
. of all requested information. At this time, we will provide you with our
computer printouts and verbally summarize our conclusions and
recommendations. After your review of our findings and upon your
authorization, we will then proceed with Phase Two: Market Study, which
will take an· additional 5 to 10 days to prepare. Preparation of Phase Three:
Ten-Yeru; Forecast of Income and Expense will take an additional 5 to 10 days
to prepare. · Preparation of the Phase Four: Feasibility Study and Appraisal
Report will take an additional 20 to 30 days to prepare following your
authorization to proceed.
Phase One: Field Research will be $,.._, which is due and payable upon
execution of this agreement. The fee for Phase Two: Market Study will be an
additional ~ payable upon your request that we proceed. The fee for
Phase Three: Ten-Year Forecast of Income and Expense report will be an
additional $1 · ~, payable upon your request that we proceed. An additional
HVS International, San FTancisco, California ProposalB
INTERNATIONAL·
fee of~ will be payable upon your request for. the Phase Four: Fea~ibility
Study and Appraisal Report. ·
-. Please keep in mind that additional fieldwork and analysis may be required
to update our findings if a significant amount of time elapses between· Phases
One and Two and Phase Four. We retain the right to revise our timing and ·
fee estimates if additional fieldwork and analysis are required. Also note that
as the _hotel project is undefined at this time, our fees for Phases Two and
Three may be revised upwards or downwards to reflect the scope of the
project once it has been further d~fined.
It is our normal policy to provide a draft copy of our final report for your
review. Upon your approval of this draft,.we will commence printing the
final report, which will be delivered to you when our invoice for services has
been paid in full. This fee covers all report preparation costs, such as
graphics, photographs, ·typing, proofreading, printing and binding, and
includes three copies of the final report which will be delivered to you.
In the event that after completing the fieldwork phase {Phase One) of the
study it becomes necessary to alter the parameters of the s-t;udy, such as the
property description; date of value; financial, management, or ownership
structure; or any other factor which could change the final estimate of value,
HVS International will be entitled to charge an additional fee based upon our
current per-diem rates and the time required to incorporate the necessary
changes into our analysis and report. In addition, the estimate of timing will
be extended by an amount equal to the added work.
Additional fees will also be charged on an hourly basis for any work which
exceeds the scope of this proposal, including performing additional research,
analysis and/or alternate valuation scenatios; reviewing other appraisals
and/or other studies and documents related to the property; telephone aµIs
and/or ni.~etings with any party which we believe goes beyond the time
generally expended during the course of an assignment of this nature; and
attending out-of-town meetings.
Hourly rates of professional staff are as·· follows: Managing Dir~ctor -$350;
Director -$250; Senior Vke President -$225; Vice President -$200; Senior
Associate. -$175; Associate -$160; Consulting and Valuation Analyst -$150;
Editor -$100. Any meeting or presentation not previously agreed to as being
part of this assignment which requires the Managing Director to travel out of
--HVS International, San Francisco, California Proposal.9
INTERNATIONAL
the San Francisco Bay Area will be charged at a minimum per-diem rate of
$3,000. . .
Notwithstanding the fee payment schedule set forth above, if at any. time
while performing this assignment it becomes necessary to suspend work for a
period of thirty (30) days or more, then HVS International will be entitled to
bill for the portion of the assignm~nt completed up to the suspension (less
-any retainer paid) at its current per-diem rates.
. .
In addition to our professional fee, you agr~e to reimburse us for out-of-
pocket research, travel, and related expenses incurred on your behalf. You
will be billed periodically for these expenses, which will be due and payable
upon presentation of our bills.
If payment for professional fees and out-of-pocket research, travel, and
related expenses is not receiv~d within thirty (30) days of the billing date,
HVS International reserves the right to suspend all work until payment is
made arid apply a service charge of 1.5 percent per month or fraction thereof
to the total unpaid sum., His further agreed that in the_ event legal action
becomes necessary to enforce collection of. bills rendered, you will be
responsible for all collection costs, including, but not limited to, court costs
and reasonable legal fees. It is understood that HVS International may extend
the time for payment on any part of billings rendered without affecting the
understanding outlined above. ·
It is agreed that the liability of HVS International, its employees, and anyone
else associated with this assignment is limited to the amount of ~e fee
paid as liquidated damages. You acknowledge that any opinions,
recommendations, and conclusions expressed during this assignment will be
rendered by the staff of M&R V~uation Services, Inc., acting solely as
employees and not as individuals. Any responsibility 6£ HVS International is
limited to the client, and use of our product by third parties· shall be ~olely at
the risk of the client and/or third parties. -
The study described in this proposal will be made subject to certain
assU1I1ptions and limiting conditions. A copy qf our normal assumptions and
limiting conditions will be provided upon request: If in the sole opinion of
HVS International it becomes necessary to add additional assumptions and
limiting conditions in order to properly characterize and represent our
conclusions, these additi_onal assumptions and limiting conditions will
become a part of our final report.
.,
,. ' HVS International,. San Francisco, California Proposal11
Bf\1-i
INTERNATIONAL
We appreciate the opportunity of submitting this proposal and look forward
to working with you on this assignment.
Very truly yours,
HVS INTERNATIONAL
A Division of M&R Valu·ation Services, Inc.·
e R. Mellen, CRE, MAI
anaging Director
AGREED TO ANb ACCEPTED:
Date: __ f-:---..,,S...i. ____ o_o __ ~---
SRM/pkh
Hotel Site A
Hotel Site B
Hotel Site C
HVS International, San Francisco, California
INTERNATIONAL
Qualifications
Jennifer Hsu
Elaine Sahlins
Proposed Full-Service Hotel
Suzanne R. Mellen, CRE, MAI
Qualifications
HVS bztemational, San Francisco, Califomia
mw --
---
INTERNATIONAL
Jennifer Hsu
Employment
2000 to present
1999 to2000
1998 to 1999
1997 to 1998
Education
Professional Affiliations
HVS INTERNATIONAL
San Francisco, California
Consulting and Valuation Analyst
Qualifications of Jennifer Hsu
(Hotel/Motel Valuations, Market Studies, Feasibility Reports, and Investment
Counseling)
Cornell University
Ithaca, NY
(Teaching Assistant)
Guam Visitors Bureau
Tuman, Guam
(Marketing Assistant)
Hyatt Regency Guam
Tuman, Guam
(HR Intern)
Hyatt Regency Guam
Tuman, Guam
(Front Office Intern)
BS -School of Hotel Administration, Cornell University
Cornell Hotel Society
HVS Intemational, San Francisco, California Qualifications of Elaine Sahlins
INTERNATIONAL
Elaine Sahlins
Employment
1997 to present
1989 to 1997
1987 to 1989
1984 to 1985
1983 to 1984
Professional Affiliations
Education
HVS INTERNATIONAL
San Francisco, California
Director
(Hotel-Motel Valuations, Market Studies)
BANK OF AMERICA
San Francisco, California
Review Appraiser
(Hotel-Motel, Casino, and Commercial Real Estate Valuations, Appraisal
Management)
VMS REALTY PARTNERS
Chicago, Illinois
Senior Acquisition Analyst
(Hotel-Resort Market Studies, Due Diligence, Operation Studies, Investment
Analysis)
JUDSON HOTELS
New York, New York
Credit/Collection Manager/Paymaster
(Credit Policies and Procedures, Payroll Administration)
PIERRE HOTEL
New York, New York
Guest History Supervisor
(Marketing and MIS Administration)
Certified General Real Estate Appraiser -States of California and Nevada
AB -Barnard College, Columbia University
MPS -School of Hotel Administration, Cornell University
Professional Coursework -Appraisal Institute
HVS Intenzational, San Francisco, California Qualifications of Elaine Sahlins
~w
INTERNATIONAL
PARTIAL LIST OF HOTELS, MOTELS AND CASINOS APPRAISED OR EVALUATED
BY ELAINE SAHLINS
ALASKA
Cusack's Ramada Inn, Anchorage
Hawthorne Suites, Anchorage
Westmark Hotel, Anchorage
Best Western Bidarka inn, Homer
ARIZONA
Best Western, Flagstaff
E-Z Metro Center, Phoenix
Scottsdale Princess Resort, Scottsdale
CALIFORNIA
Renaissance Hotel, Beverly Hills
Embassy Suites, Brea
Embassy Suites, Emeryville
Cambell Inn, Campbell
Hilton Garden Inn, Campbell
Pruneyard, Campbell
Carlsbad Inn Hotel, Carlsbad
Carmel Mission Inn, Carmel
Carmel Valley Ranch, Carmel
Highlands Inn, Carmel
Pine Inn Hotel & Retail, Carmel
Doubletree Hotel, Cathedral City
The Trees Inn, Concord
Proposed Hilton Garden Inn, Corte Madera
Red Lion Hotel, Costa Mesa
Singing Hills Ranch, El Cajon
Best Western, El Toro
Days inn Emeryville, Emeryville
Holiday Inn, Foster City
Blackstone Plaza Inn, Fresno
Chateau Inn, Fresno
Piccadilly Inn Airport, Fresno
Piccadilly Inn Shaw, Fresno
Piccadilly Inn University, Fresno
Proposed Motel 6, Gilroy
Days Inn-LAX, Inglewood
Hyatt Hotel, La Jolla
Scripps Inn, La Jolla
Marriott Rancho Las Palmas, Las Palmas
Springtown Motel, Livermore
West Coast Hotel & Marina, Long Beach
Beverly Hills Residence Inn, Los Angeles
Crowne Plaza-LAX
Hilton-LAX, Los Angeles
Holiday inn, Marina Del Rey
Marriott, Marina Del Rey
Stanford Park Hotel, Menlo Park
Candlewood Hotel, Milpitas
Hilton Garden Inn Hotel, Milpitas
Larkspur/Hilton Garden, Milpitas
Monterey Plaza Hotel, Monterey
Jack London Inn, Oakland
Resort at Squaw Creek, Olympic Valley
Proposed Hotel, Pacifica
Stanford Park Hotel, Palo Alto
Stanford Terrace Inn, Palo Alto
Hacienda Hotel, Patterson
Proposed Hotel, Pinole
Embassy Suites, Pleasant Hill
Candlewood Hotel, Pleasanton
Pleasanton Hilton Hotel, Pleasanton
Sierra Suites, Pleasanton
Summerfield Suites, Pleasanton
Holiday Inn, Rancho Bernardo
Comfort Inn Rancho Cordova, Rancho Cordova
Hallmark Suites Hotel, Rancho Cordova
Westin Mission Hills, Rancho Mirage
Microtel Inn & Suites, Redding
Hotel & Convention Center, Prop., Roseville
Hyatt Regency Hotel, Sacramento
Candlewood Hotel, Sacramento
Prop. Candlewood Hotel, Sacramento
Hilton Garden Inn, Sacramento
Bay Club Hotel & Marina, San Diego
Carmel Highland Doubletree, San Diego
Comfort Suites, San Diego
Holiday Inn Miramar, San Diego
Pacific Terrace Inn, San Diego
Radisson Suite Hotel, San Diego
The Clift Hotel, San Francisco
Comfort Inn by the Bay, San Francisco
Fairmont Hotel, San Francisco
Hotel Rex, San Francisco
Kensington Park Hotel, San Francisco
Mission/Steuart Hotel, San Francisco
Powell West Hotel, San Francisco
Richilieu Hotel, San Francisco
Sir Francis Drake Hotel, San Francisco
Tuscan Inn, San Francisco
Westin St. Francis Hotel, San Francisco
Radisson Plaza Hotel Airport, San Francisco
San Jose Fairmont, San Jose
Twin Oaks Golf Course, San Marcos
Santa Barbara Club Resort, Santa Barbara
Days Inn Hotel Seaside, Seaside
Holiday Inn, South San Francisco
Embassy Suites, Santa Clara
Sheraton Miramar Hotel, Santa Monica
Ramada Inn Airport North, South San Francisco
Ramada Inn, Retail, Apts., West Hollywood
Microtel Inn & Suites, Willows
COLORADO
Hyatt Regency Beavercreek, Avon
Old Towne Guesthouse Inn, Colorado Springs
Denver Embassy Suites, Denver
Silvertree Hotel, Snowmass
Wildwood Lodge, Snowmass
Days Inn at Vail, Vail
CONNECTICUT
Stamford Tara Hotel, Stamford
DISTRICT OF COLUMBIA
Comfort Inn, Washington, D.C.
FLORIDA
Boca Raton Hotel and Resort, Boca Raton
Holiday Inn, Ft. Lauderdale
Pier 66 Hotel & Marina, Ft. Lauderdale
Proposed Resort, Key Biscayne
Hyatt Resort, Key West
Howard Johnson Inn, Kissimmee
Knights Inn-Kissimmee, Kissimmee
Ramada Inn-Jacksonville, Jacksonville
Best Western, Orlando
Days Inn, Orlando
Orlando Twin Towers, Orlando
Comfort Inn, Pensacola
HAWAII
Westin Kauai, Kalapaki Beach, Lihue
IDAHO
Resort Development, Coeur d'Alene
Super 8, Coeur d'Alene
Super 8, Lewiston
Motels of America, Lewiston
Super 8, Ponderay
ILLINOIS
Jumers Chateau, Bloomington
Westin Hotel, Chicago
Jumers Continental Inn, Galesburg
Jumers Castle, Peoria
Doubletree Hotel -North Shore, Skokie
Jumers Castle Lodge, 1./rbana
INDIANA
Fairfield Inn, Fort Wayne
Four Points Sheraton, Indianapolis
HVS International, San Francisco, California
INTERNATIONAL
Omni Severin Hotel, Indianapolis
IOWA
Jumers Castle Lodge, Bettendorf
LOUISIANA
Boomtown New Orleans, Harvey
Days Inn, New Orleans
MASSACHUSETTS
Copley Plaza Hotel, Boston
Sheraton Tara Lexington, Lexington
Proposed Sierra Suites Hotel, Waltham
MISSISSIPPI
Boomtown Biloxi, Biloxi
Treasure Bay Hotel & Casino, Biloxi
University Inn, Oxford
Proposed Hotel, Tunica
MISSOURI
RiverFront Station, St. Charles
MONTANA
Sheraton Hotel, Billings
Holiday Inn-Parkside, Missoula
NEW JERSEY
Holiday Inn, Jamesburg
NEVADA
Ormsby House, Carson City
Crystal Park Casino Hotel, Crystal City
Gem Casino, Henderson
Joker's Wild Casino, Henderson
Tom's Sunset Casino, Henderson
Aladdin Hotel & Casino, Las Vegas
Boardwalk Hotel & Casino, Las Vegas
Boulder Station, Las Vegas
El Morocco Motel, Las Vegas
Eureka Saloon Casino, Las Vegas
Hacienda Casino Hotel, Las Vegas
La Concha Motel, Las Vegas
MGM Grand, Las Vegas
Monte· Carlo Casino Hotel, Las Vegas
New York, New York Hotel & Casino, Las Vegas
Palace Station, Las Vegas
Proposed Sunset Station, Las Vegas
Rio Hotel, Las Vegas
Santa Fe Casino Hotel, Las Vegas
Texas Station, Las Vegas
Peppermill Resort Hotel, Mesquite
Whiskey Pete's, Primm
Holiday inn, Reno
Proposed Hotel, Sparks
Hobey's Casino, Sun Valley
Nevada Crossing Casino, Wendover
NEW YORK
Omni Park Central Hotel, New York
Proposed Soho Hotel, New York
OHIO
200-Room Boutique Hotel, Cleveland
Fairfield Inn, Columbus
Holiday Inn-Airport, Columbus
OREGON
Monarch Hotel & Convention Ctr., Clackamas
Proposed Hilton Garden Inn, Corvallis
Candlewood Hotel, Hillsboro
Avalon Hotel, Portland
Sunriver Resort, Portland
Execulodge, Salem
Gateway Motor Inn
Nendels Motor Inn, Springfield
TEXAS
Amarillo Super 8 Motel, Amarillo
The Crescent Hotel, Dallas
Fairmont Hotel, Dallas
Melrose Hotel, Dallas
UTAH
Cavanaugh's Olympus Hotel, Salt Lake City
VIRGINIA
Holiday Inn, Arlington
Sheraton Inn Coliseum
Richmond Holiday Inn, Richmond
WASHINGTON
Best Western Bellevue Inn, Bellevue
Qualifications of Elaine Sahlins
Candlewood Hotel, Bellevue
Residence Inn, Bellevue
Pony Soldier Inn, Chehalis
Homecourt All Suite Hotel, Kent
Alexis Hotel, Seattle
University Plaza Motor, Seattle
West Coast Paramount, Seattle
West Coast Vance Hotel, Seattle
Embassy Suites, Tukwila
WISCONSIN
Holiday Inn-Airport, Milwaukee
Milwaukee Marriott Hotel, Milwaukee
WYOMING
Executive Inn, Evanston
Super 8, Jackson
BRITISH VIRGIN ISLANDS
Little Dix Bay, Virgin Gorda
CANADA
Trite! Hotel "Ramada" Montreal
L'Emerillon Hotel, Quebec City
U.S. VIRGIN ISLANDS
Caneel Bay Resort, St. John
Frenchman's Reef Resort, St. Thomas
Grand Palazzo Hotel, St. Thomas
EUROPE
Proposed Monte Carlo Resort, Monaco
Proposed Dordogne Resort, France
Hanbury Manor, Great Britain
HVS lntenzational, San Francisco, California Qualifications of Suzanne R. Mellen, CRE, lvfAI
Suzanne R. Mellen, CRE, MAI
Employment
1985 to present
1981 to 1985
1980 to 1981
1980
1978 to 1980
1976 to 1978
1976
HVS INTERNATIONAL
San Francisco, California
Managing Director
(Hotel-Motel Valuations, Market Studies, Feasibility Reports, and Investment
Counseling)
HOSPITALITY VALUATION SERVICES
Mineola, New York
Director of Consulting and Valuation Services
(Hotel-Motel Valuations, Market Studies, Feasibility Reports, and Investment
Counseling)
MORGAN GUARANTY TRUST COMPANY
New York, New York
Real Estate Appraiser and Consultant
(Real Estate Investment Valuation and Analysis)
LAVENTHOL & HORWATH
New York, New York
Senior Consultant
(Management Advising Services -Market and Feasibility Studies)
HELMSLEY-SPEAR HOSPITALITY SERVICES
New York, New York
Senior Consultant
(Management Advising Services -Market and Feasibility Studies)
WESTERN INTERNATIONAL HOTELS
The Plaza, New York City
Management Trainee
(Rooms Operations and Accounting)
HARLEY, LITTLE ASSOCIATES
Toronto, Canada
Junior Consultant
(Food Facilities Design, Market Studies)
HVS International, San Francisco, California Qualifications of Suzanne R. Mellen, CRE, MAI
INTERNATIONAL
Professional Affiliations
Education
State Certification
Teaching and Lecture
Assignmments
Appraisal Institute -Member (MAI)
• Board of Directors -San Francisco Bay Area Chapter (1994, 1995)
• Education Committee Chairperson -Northern California Chapter 11
•Workshop Committee Chairperson -Northern California Chapter 11
• Division of Courses -National Committee
•Continuing Education Committee -New York Committee
•Director, Real Estate Computer Show-New York Chapter
American Society of Real Estate Counselors -Member (CRE)
•Vice Chair -Northern California Chapter (1994, 1995)
•Chair -Northern California Chapter (1996)
National Association of Review Appraisers & Mortgage Underwriters (CRA)
International Society of Hotel Consultants -Member (ISHC)
Cornell Hotel Society
San Francisco Board· of Realtors
American Hotel and Motel Association
California Hotel and Motel Association
National Trust for Historic Preservation
Urban Lq.nd Institute
BS -School of Hotel Administration, Cornell University
Liberal Arts Undergraduate Study-Carnegie Mellon University
Completion of MAI course work -Appraisal Institute
New York University-School of Continuing Education -Real Estate Division
Arizona, California, Colorado, Hawaii, Michigan, Nevada, Utah, Virginia, and
Washington
American Institute of Real Estate Appraisers -Approved Instructor -
Hotel/Motel Valuations
California Hotel and Motel Association, 1985 Annual Convention -
Development Overview
1995 -Annual Meeting -The Capital Expenditure Requirements
Citibank, N.A. -Hotel/Motel Valuations
Cornell University -Real Estate Finance
HVS Intemational, San Francisco, Califomia Qualifications of Suzanne R. Mellen, CRE, MAI
INTERNATIONAL
Teaching and Lecture
Assignments (cont'd)
Published Articles
Cornell Center for Professional Development -Hotel Workouts
Country Hospitality Conference -Hotel Development Challenges in the Nineties
Econo-Travel Motor Hotel Corp., Annual Financial Seminar -Hotel Valuation
Institute of Property Taxation, 1984 Real Estate Symposium -Simultaneous
Valuation
National Association of Review Appraisers and Mortgage Underwriters -
Reviewing a Hotel Appraisal Report 1990
National Conference of State Tax Judges -Valuation and the Hospitality Industry
Northwest Center for Professional Development -1986-87 Hotel Development
Seminars
Southhampton College -Feasibility Studies and Appraisals
University of Denver -Hotel/Motel Valuation
American Bar Association -Property Tax '92 -Income Approach
UCLA Hotel Industry Investment Conference, 1995, 1996
NYU Hospitality Industry Investment Conference, 1991, 1992, 1993, 1994,
1995
Jeffer, Mangels, Butler & Marmara Forum -Answers to Three of the Most
Provocative Questions in Hotel Valuation Today
The Appraisal Journal "Simultaneous Valuation: A New Technique," April 1983
Appraisal Review & Mortgage "How to Review a Hotel Appraisal," November 1989
Underwriting Journal
California Inntouch Magazine "Value and Proper Use of Feasibility Studies," December 1990
The Hotel Valuation Journal "The Future of Full-Service Hotel Development"
The HVS Journal
Computer Software
"Simultaneous Capitalization
Software"
Appearance as an Expert
Witness
"How Much Should I Pay For the Land?," January 1996
"Strong Rates of Return Driving Hotel Development," January 1998
"Hotel Cap Rates and Values -The 1998 Rollercoaster Ride and What Lies
Ahead," January 1999
Software for the capitalization of a variable income stream
Superior Court of the State of Arizona, County of Maricopa
Superior Court of the State of California, City and County of San Francisco
Superior Court of the State of California, County of Los Angeles (Deposition)
Superior Court of the State of California, County of San Diego, North County
Branch
Federal Tax Court, New York, New York
HVS International, San Francisco, Califomia
INTERNATIONAL
Corporate and Institutional
Clients Served
Qualifications of Suzanne R. Mellen, CRE, MAI
U.S. District Court, Eastern District of Arkansas, Little Rock, Arkansas
U.S. District Court, Central District of California (Deposition)
U.S. District Court, Southern District of California
Federal Bureau of Investigation, New York, New York (Deposition)
U.S. Bankruptcy Court, Northern District of California
U.S. ~ankruptcy Court, Eastern District of California
U.S. Bankruptcy Court, Colorado (Deposition)
U.S. Bankruptcy Court, Southern District of Texas, Houston Division
U.S. Bankruptcy Court, Utah, Salt Lake City
U.S. Bankruptcy Court, Southern District of California
American Arbitration Association, Los Angeles
American Arbitration Association, San Francisco
Tax Appeal Board
Los Angeles County, California
Contra Costa County, California
Orange County, California
San Francisco County, California
San Mateo County, California
Utah County, Utah
Aegon USA Realty Advisors, Inc.
Aetna Life Insurance Co.
Aetna Real Estate Investment
Allied Capital Advisors, Inc.
American Hotels, Inc.
American Realcorp
American Savings and Loan
Amfac Parks & Resorts
AMRESCO
Amstart Group, Inc.
Andrew Daveridge Corp.
ARCON,Inc.
Avista
Bank of America
Bank Boston
The Bank of New York
Bank of Nova Scotia
Bank of San Francisco
Bank of the West
Bankers Trust Company
Banque Nationale de Paris
Barclay's Bank
The Beacon Companies
Boykin Management Co.
Broad, Schultz, Larson & Wineberg
Burlingame Bank and Trust Comp.
Buss-Shelger Associates
C. A. Rickert & Associates
Caesars World Gaming
Cala Properties
California Federal Bank
California Department
of Transportation
CIBC World Markets
Carlsbad Estate Holding, Inc.
Carpenters Pension Trust for
Southern California
Carroll, Burdick, McDonough
CASC Corporation
Case, Knowlson, Mobley, Burnett
and Luber
Central Core Corp.
Champion Development Group
Chartwell Leisure
Chase Manhattan Bank
Chase Real Estate Finance Group
Chemical Bank
CIGNA Capital Advisors, Inc.
Citibank
HVS Intenzalional, San Francisco, Califomia
m~-----
INTERNATIONAL
Corporate and Institutional
Clients Served (cont'd)
Citicorp Real Estate, Inc.
City and County of San Francisco
City of Boulder, Colorado
Cleary, Gottlieb, Steen & Hamilton
Contra Costa County
Coast Commercial Bank
Column Financial, Inc.
Coopers & Lybrand
Comerica Bank -California
Commercial Bank of Korea, Ltd.
Coudert Brothers
Credit Lyonnais
Credit Suisse First Boston
Cupertino National Bank and Trust
Dai-Ichi Kangyo Bank, Ltd.
Daiwa Bank
Days Inns
Deutsche Morgan'Grenfell
Disney Development Company
Dollar Savings and Loan
Doubletree Inns
Drury Inns
Duckor & Spradling
EDA, U.S. Government
EP AM Corporation
Equitable Real Estate Investment
Management
E. S. Merriman & Sons
Estate of James Campbell
Eureka Bank
Exchange Bank
Farmers National Bank
Fidelity Federal Savings & Loan
First Boston
First Federal Savings and Loan
First Interstate Bank
First National Bank
First Security
Fox Hotel Investors
Fred Reed & Associates
Fiji Bank
GECC Commercial Real Estate
GMAC Commercial Mortgage Co.
Geller & Company
General Electric Capital Company
Qualifications of Suzanne R. Mellen, CRE, MAI
Gibraltar Savings and Loan
Equitable Life Assurance Society
Gibson, Dunn & Crutche.r
Goldman Sachs
Graham Taylor Hospitality Group
Gray, Cary, Ames & Frye
Gray, Cary, Ware & Freidenrich
Great Eagle Holdins Limited
Great Western Bank
Greenwich Capital Markets
Greys tone
HMG Lodging Management
HYPO Securities
Hardage Suite Hotels
Hare, Brewer & Kelley, Inc.
Haruyoshi Kanko K.K.
Heller, Ehrman, White & McAuliffe
Heller Real Estate Financial Services
The Heymann Group, Inc.
Hibernia Bank
Hodges Ward Elliott
Holiday Inns
Hong Kong Bank
Hongkong Bank Alliance
Host Marriott
Hotel Investors Trust
Howard Johnson's
Hudson Hotels Corporation
Huntington Bank
Hyatt Development Corporation
ITT Sheraton Corporation
Impac Hotel Group
Inter-Continental
International Bank of California
International Bank of Singapore
Intracorp Developments, Ltd.
J.E. Robert Company, Inc.
J. W. Colachis Company
Japan Airlines
Jeffer, Mangels, Butler, & Marmara
John B. Coleman & Co.
John Q. Hammons
John Hancock Life Insurance
Key Bank of New York
Key Corporation
HVS Intemational, San Francisco, Califomia
INTERNATIONAL
Kwong Hing Investment Center
Lake County Business Outreach and
Response Team
Lankford & Associates
Larkspur Hospitality, LLC
Latham & Watkins
Laurence Peters & Co.
Lehman Brothers, Inc.
Leisure Sports, Inc.
Leonard, Street & Deinard
Local Federal Bank, F.S.B.
Long Term Credit Bank of
Japan, Ltd.
Lovitt & Hannan, Inc.
M&M Development Co.
The Maher Company
Marriott Hotels
Mellon Bank
Mercury Savings and Loan
Merril Lynch
Miramar Asset Management, Inc.
Mitsui Trust & Banking Co., Ltd.
The Money Store Commercial
Mortgage, Inc.
Morgan Guaranty Trust
Morgan Stanley & Co.
Morrison & Foerster
NS Development Co.
Nations Credit Commercial Corp.
Nations Financial Capital Corp.
Network Mortgage Services
Nomura Asset Capital Corp.
Nomura Securities International, Inc.
Northwinds N.V.
Ny-West Development
Ocean Links Corp.
Octavian, Inc.
O'Neill Hotels & Resorts
ORIX USA Corp.
Orrick, Herrington & Sutcliffe
Outlook Income Fund
Qualifications of Suzanne R. Mellen, CRE, MAI
OZ Resorts and Entertainment
The Pacific Bank
Pacific Hotel Group
Pacific Union Company
Pannell Kerr Forster
Parabas Bank
Park Plaza International
Patrick M. Nesbitt Associates, Inc.
Patriot American Hospitality
Paul, Hastings, Janofsky & Walker
Peninsula Bank of Commerce
Picadilly Inns
Pillsbury, Madison & Sutro
Presideo Group
Property Capital Trust
Prudential Realty Group
Punjab National Bank
Queen Emma Foundation
R.C. Hedreen Co.
RT Capital Corporation
Radisson Hospitality Worldwide
Ramada Inns
Real Estate Capital Markets
Red Lion Hotels & Inns
The RIM Corp.
Riverboat Delta King, Inc.
S.D. Malkin Properties, Inc.
Sage Hospitality Resources
San Francisco International Airport
San Leandro Development Services
Department
Seafirst Bank
Security Pacific National Bank
Salomon Brothers
Seven Seas Associates, LLC
Shearman & Sterling
Simpson, Thatcher & Bartlett
Societe General
Solit Interest Group
Sonoma Valley Bank
Southern California Savings
HVS bztematio11al, Sa11 Fra11cisco, Califomia
INTERNATIONAL
Ssang Yong Engineering and
Construction Company, Limited
Starwood Lodging
Stephen W. Noey & Associates
Stem & Goldberg
Stonebridge Realty Advisors
Strategic Hotel Capital, Inc.
Strategic Realty Advisors, Inc.
Streich Lang
Suburban Capital Markets, Inc.
Sumitomo Bank
Sunriver Resort
Swig Investment Company
TCFBank
TYBA Group, Inc.
Teachers Insurance and Annuity
Association
Three Sisters Resorts
Tipton Management
Tokai Bank
Tom Grant, Jr.
Transamerica Realty Services, Inc.
Travelers Insurance Company
The Travelers Companies
Treadway Hotels
Tully & Wezelman, P.C.
Union Bank
United Pacific Bank
U.S. Bancorp
U.S. Trust Company
VMS Realty
Villa del Lago Associates
W.R.C. Properties, Inc.
Wailua Associates
Wells Fargo Bank, N.A.
Wells Fargo RETECHS
West Coast Bancorp
West LB
Westin Hotels & Resorts
Windsor Capital Group
Wolf, Rifkin & Shapiro
Qualifications of Suzanne R. Mellen, CRE, MAI
Woodfin Suites Hotel Co.
Wrather Corp.
Yasuda Trust and Banking Co., Ltd.
HVS lntenzational, San Francisco, California Qualifications of Suzan11e R. Melle11, CRE, MAI
~~~
INTERNATIONAL
PARTIAL LIST OF HOTELS AND MOTELS APPRAISED OR EVALUATED
BY SUZANNE R. MELLEN, CRE, MAI
ALABAMA
Fairfield Inn, Birmingham
Ramada Inn, Gadsden
Proposed Hotel, Mobile
Fairfield Inn, Montgomery
Holiday Inn, Montgomery
Howard Johnson's, Montgomery
Residence Inn, Montgomery
ALASKA
Best Western Barratt Inn, Anchorage
Clarion Suites Hotel, Anchorage
Hawthorne Suites, Anchorage
Hotel Captain Cook, Anchorage
Northern Lights Hotel, Anchorage
Rose Garden Hotel, Anchorage
Sheraton Anchorage Hotel, Anchorage
ARIZONA
Best Western, Flagstaff
Motel 6, Flagstaff
Rodeway Inn, Flagstaff
Woodlands Plaza Hotel, Flagstaff
Bright Angel Lodge, Grand Canyon
El Tovar Hotel, Grand Canyon
Kachina Lodge, Grand Canyon
Maswik Lodge, Grand Canyon
Moqui Lodge, Grand Canyon
Phantom Ranch, Grand Canyon
Thunderbird Lodge, Grand Canyon
Yavapai Lodge, Grand Canyon
Best Western Green Valley, Green Valley
Hampton Inn-Proposed, Holbrook
Rodeway Inn, Kingman
Nautical Inn, Lake Havasu
Best Western Executive Park Hotel, Phoenix
Bobby McGee's Conglomeration, Phoenix
Caravan Inn, Phoenix
Crescent Hotel, Phoenix
Doubletree Inn, Phoenix
Embassy Suites-Camelback, Phoenix
Embassy Suites-Camelhead, Phoenix
Fountain Suites Hotel, Phoenix
Full-Service Hotel, Proposed, Phoenix
Granada Royale Camelhead, Phoenix
Holiday Inn, Phoenix
Holiday Inn Crowne Plaza, Phoenix
Hyatt Regency, Phoenix
Knights Inn, Phoenix
Omni Adams Hotel, Phoenix
Quality Inn, Phoenix
Courtyard by Marriott, Scottsdale
Doubletree Inn, Scottsdale
Holiday Inn Old Town, Scottsdale
Marriott Camelback Inn, Scottsdale
Phoenician Resort, Scottsdale
Red Lion-La Posada, Scottsdale
Rodeway Inn, Scottsdale
Scottsdale Conference Resort, Scottsdale
Scottsdale Hilton Resort, Scottsdale
Scottsdale Princess, Scottsdale
Proposed Summerfield Suites, Scottsdale
Sunburst Resort Hotel & Conference Center,
Scottsdale
L'Auberge de Sedona, Sedona
Los Abrigados, Sedona
Orchard's Inn & Grill, Sedona
Motel 6, Sierra Vista
Country Suites Hotel, Tempe
Mixed-Use Development, Tuba City
Clarion Tucson, Tucson
Doubletree Inn, Tucson
Loews Ventana Canyon Resort, Tucson
Lodge at Ventana Canyon, Tucson
Marriott Hotel, Prop., & Starr Pass, Tucson
Marriott Resort, Prop., Tucson
Proposed Hotel, Tucson
Proposed Microtel Inn, Tucson
Radisson Suite Hotel, Tucson
Rodeway Inn, Tucson
Westward Look Resort, Tucson
Shilor Inn, Yuma
ARKANSAS
Hilton, Hot Springs
Holiday Inn, Little Rock
Red Carpet Inn, Little Rock
CALIFORNIA
Radisson Hotel, Agoura Hills
Ramada Inn, Agoura Hills
Anaheim Marriott, Anaheim
Anaheim Park Motor Inn, Anaheim
Best Western Anaheim Inn, Anaheim
Best Western Stovall's Inn, Anaheim
Best Western Pavillions Inn, Anaheim
Boulevard Inn, Anaheim
Carousel Inn and Suites, Anaheim
Disneyland Hotel, Anaheim
Doubletree Hotel, Anaheim
Golden Forest Motel, Anaheim
Hilton Hotel, Anaheim
Holiday Inn, Anaheim
Howard Johnson Hotel, Anaheim
Jolly Roger, Anaheim
Marriott Courtyard, Anaheim
Pan Pacific Hotel, Anaheim
Pitcairn Inn, Anaheim
Ramada Maingate Hotel, Anaheim
Raffles Inn & Suites, Anaheim
Station Inn, Anaheim
TraveLodge Inn at the Park, Anaheim
WestCoast Anaheim Hotel, Anaheim
Proposed Fairfield Suites, Arcadia
Proposed Hilton Garden Inn, Arcadia
Auburn Inn, Auburn
Sleep Inn, Auburn
Ramada, Augora Hills
Allstar Inn, Bakersfield
Clarion Suites, Bakersfield
Economy Inn, Bakersfield (2)
Marriott Courtyard, Bakersfield
Red Lion Hotel, Bakersfield
Residence Inn, Bakersfield
Sheraton Hotel, Bakersfield
Travelodge Hotel, Bakersfield
Hilton Hotel, Baldwin Park
Allstar Inn, Barstow
Economy Inn, Barstow
Holiday Inn Express, Belmont
Proposed Summerfield Suites, Belmont
Summerfield Suites, Belmont
Berkeley Marina Marriott, Berkeley
Shattuck Hotel, Berkeley
Beverly Hills Country Club, Beverly Hills
Beverly Hilton, Beverly Hills
Beverly Wilshire, Beverly Hills
Four Seasons Hotel, Beverly Hills
L'Ermitage, Beverly Hills
Peninsula Beverly Hills, Beverly Hills
Regent Beverly Wilshire Hotel, Beverly Hills
Renaissance Hotel, Beverly Hills
Best Western, Big Bear Lake
Motel 6, Big Bear Lake
Proposed hotel, Big Bear Lake
Post Ranch Inn, Big Sur
Ventana Inn, Big Sur
Rodeway Inn, Blythe
Embassy Suites Hotel, Brea
Holiday Inn, Brentwood
Hilton Residential Suites, Brisbane
HVS International, San Francisco, Califomia
INTERNATIONAL
Rancho Santa Barbara Marriott, Buellton
Fairfield Inn, Buena Park
Hampton Inn, Buena Park
Marriott Courtyard, Buena Park
Burbank Airport HIiton, Burbank
Hilton Hotel, Burbank
Ramada Inn, Burbank
Hyatt Regency, Burlingame
Hyatt Regency SFO, Burlingame
Airport Marriott, Burlingame
Radisson Plaza-Proposed, Burlingame
Good Nite Inn, Buttonwillow
Country Inn, Calabassas
Good Nite Inn, Calabassas
Del Norte Inn, Camarillo
Good Nite Inn, Camarillo
Cambria Pines Lodge, Cambria
Best Western Fireside Inn, Cambria
Campbell Inn, Campbell
Hilton Garden Inn, Campbell
Pruneyard Inn, Campbell
Proposed Hotel, Capitola
Allstar Inn, Carlsbad
Carlsbad Inn, Carlsbad
Four Seasons Resort Aviara, Carlsbad
Inn of America, Carlsbad
La Costa Resort and Spa, Carlsbad
Legoland, Carlsbad
Olympic Resort, Carlsbad
Carmel Mission Inn, Carmel
Carmel Valley Ranch, Carmel
Highlands Inn, Carmel
Proposed Hotel, Casa de Fruta
Doubletree Hotel, Cathedral City
Proposed Hotel, Cathedral City
Royce Hotel, Cathedral City
Sheraton Cerritos Towne Center, Cerritos
Sheraton Hotel, Cerritos
Neighborhood Inn-Proposed, Chatsworth
Days Inn, Chico
Holiday Inn, Chico
Proposed Microtel Inn and Suites, Chico
Red Lion Hotel, Chico
Otay Valley Travel Lodge, Chula Vista
Harris Ranch, Coalinga
Howard Johnson's, Colton
Concord Hilton, Concord
Sheraton Hotel, Concord
Trees Inn, Concord
Motel 6, Corona
Loews Coronado Bay Resort, Coronado
Proposed Hilton Garden Inn, Corte Madera
Ha'Penny Inn, Costa Mesa
Marriott Suites, Costa Mesa
Red Lion Hotel, Costa Mesa
Residence Inn, Costa Mesa
Pacifica Hotel & Conference Center, Culver City
Ramada Inn, Culver City
Hilton Garden Inn, Cupertino
Marriott Courtyard, Cupertino
Ritz-Carlton Laguna Niguel, Dana Point
Proposed Spa, Danville
Furnace Creek Inn, Death Valley
Furnace Creek Resort, Death Valley
Stove Pipe Wells Village, Death Valley
Hilton Hotel, Del Mar
Marriott Resort & Spa, Desert Springs
Days Inn Diamond Bar, Diamond Bar
Best Western, El Toro
Carlos Murphy's Restaurant, Emeryville
Days Inn, Emeryville
Hardage Suites Hotel Site, Emeryville
Lyon's Restaurant, Emeryville
Woodfin Suite Hotel, Prop., Emeryville
Woodfin Suite Hotel, Emeryville
Budget Motel, Encinitas
Hilton Garden Inn, Proposed, Escondido
Marriott Tenaya Lodge, Fish Camp
Proposed Hotel, Folsom
All-Suites-Proposed, Foster City
Clubtel-Proposed, Foster City
Holiday Inn, Foster City
Marriott Courtyard, Foster City
Hilton, Fremont
Marriott Courtyard, Fremont
Motel 6, Fremont
Quality Inn, Fremont
Proposed Westin Clubsport, Fremont
Allstar Inn, Fresno (2)
Chateau Inn, Fresno
Economy Inn, Fresno (2)
Hacienda Resort and Conference Center,
Fresno
Holiday Inn, Fresno
Marriott Courtyard, Fresno
Picadilly Inns, Fresno (3)
Travelers Inn, Fresno (3)
Sierra Sport and Racquet Club, Fresno
Griswold's Hotel, Fullerton
Marriott Hotel, Fullerton
Hyatt Regency-Proposed, Goleta
Motel 6, Gilroy
Red Lion Hotel, Glendale
Ocean Colony Resort, Half Moon Bay
Qualifications of Suzanne R. Mellen, CRE, MAI
Proposed Healdsburg Plaza Hotel, Healdsburg
Hollywood Clarion Roosevelt Hollywood
Hollywood Palm Hotel, Hollywood
Waterfront Hilton, Huntington Beach
Grand Champions Resort, Indian Wells
Miramonte Resort, Indian Wells
Hilton Orange County Airport, Irvine
Marriott Courtyard, Irvine
Registry Hotel, Irvine
Amador Inn, Jackson
Proposed Hotel, Kern Co.
Lafeyette Park Hotel, Lafeyette
Surf & Sand Hotel, Laguna Beach
Ritz-Carlton Hotel, Laguna Niguel
Hyatt Hotel, La Jolla
Residence Inn, La Jolla
Scripps Inn, La Jolla
Hilton Lodge, Lake Arrowhead
Lake Arrowhead Resort, Lake Arrowhead
Proposed Hotel, Lake Country
Resort at Squaw Creek, Lake Tahoe
Marriott Courtyard, Larkspur
Marriott Rancho Las Palmas, Las Palmas
Proposed 5O-Unit Motel, Little Lake
Residence Inn, Livermore
Embassy Suites, Lompoc
Breakers Hotel, Long Beach
Holiday Inn, Long Beach
Holiday Inn -Airport, Long Beach
Hyatt Regency, Long Beach
Marriott Hotel, Long Beach
Residence Inn, Long Beach
West Coast Hotel & Marina, Long Beach
Airport Park Hotel, Los Angeles
Biltmore Hotel, Los Angeles
Checkers Hotel, Los Angeles
Courtyard by Marriott, Los Angeles
Crowne Plaza LAX, Los Angeles
Doubletree Hotel at LAX, Los Angeles
Econolodge-Proposed, Los Angeles
Embassy Suites, Los Angeles
Four Seasons, Los Angeles
Hilton Hotel & Towers, Los Angeles
Hilton LAX, Los Angeles
Holiday Inn Brentwood/Bel Air, Los Angeles
Holiday Inn-LAX, Los Angeles
Holiday Inn Crowne Plaza-LAX, Los Angeles
Holiday Inn Express-Van Nuys, Los Angeles
Hotel Inter-Continental, Los Angeles
Hotel Sofitel Ma Maison, Los Angeles
Marriott Courtyard-LAX, Los Angeles
New Seoul Hotel, Los Angeles
HVS International, San Francisco, Califomia
INTERNATIONAL
Playa Vista Development, Los Angeles
Proposed Residence Inn Beverly Hills, Los
Angeles
Sofitel Ma Maison, Los Angeles
Westin Bonaventure, Los Angeles
Westmoreland Place, Los Angeles
Hotel & Restaurant, Proposed, Los Gatos
Los Gatos Lodge, Los Gatos
Economy Inns of America Motel, Madera
Courtyard by Marriott , Mira Mesa
Barnabey's Hotel, Manhattan Beach
Courtyard by Marriott, Marina del Rey
Doubletree Hotel, Marina del Rey
Holiday Inn Express, Marina del Rey
Marina Suites Hotel, Marina del Rey
Marina Beach Hotel, Marina del Rey
Marriott Hotel, Marina del Rey
Hill House, Mendocino
Stanford Park Hotel, Menlo Park
Comfort Inn, Millbrae
Candlewood Hotel, Milpitas
Hilton Garden Inn, Milpitas
Holiday Inn, Milpitas
Holiday Inn, Miramar
Motel Orleans, Modesto
Red Lion Hotel, Modesto
Miramar Resort Hotel, Montecito
Doubletree Fisherman"s Wharf, Monterey
Doubletree Inn, Monterey
Monterey Plaza Hotel, Monterey
Proposed Hotel, Monterey
Sheraton Hotel, Monterey
Inn at Morro Bay, Morro Bay
Proposed Hilton Garden Inn, Mountain View
Proposed Westin ClubSport, Mountain View
Aetna Springs Resort, Proposed, Napa
Best Western Inn, Napa Valley
Clarion Inn, Napa Valley
Inn at Napa Valley, Napa Valley
Sheraton Inn Napa Valley, Napa
Proposed Windmill Inn, Napa Valley
Silverado, Napa Valley
Newark/Fremont Hilton, Newark
Park Inn, Newark
Hyatt Newporter, Newport Beach
Marriott Suites, Newport Beach
Proposed Newport Coast Development, Newport
Beach
Newporter Resort Hotel, Newport Beach
Sheraton Hotel, Newport Beach
Shilo Inn, Oakhurst
Holiday Inn Oakland Airport, Oakland
Pare Oakland Hotel, Oakland
Resort at Squaw Creek, Olympic Valley
Clarion Hotel, Ontario
Holiday Inn, Ontario
Red Lion Hotel, Ontario
Residence Inn, Orange
Woodfin Suite Hotel, Orange
Hilton Garden Inn, Proposed, Oxnard
Holiday Inn, Oxnard
Proposed Hotel, Pacifica
Super 8 Motel, Palmdale
Embassy Suite, Palm Desert
Hawthorne Suites, Palm Desert
Canyon Resort Hotel, Palm Springs
Desert Princess, Palm Springs
Hyatt Palm Springs, Palm Springs
Marriott Rancho Las Palma, Palm Springs
Palm Canyon, Palm Springs
Palm Springs Spa Hotel, Palm Springs
Spa Hotel & Mineral Springs, Palm Springs
Wyndham Hotel, Palm Springs
Cardinal Hotel, Palo Alto
Holiday Inn, Palo Alto
Proposed Hotel, Palo Alto
Stanford Park Hotel, Palo Alto
Stanford Terrace Inn, Palo Alto
Ambassador College Hotel, Prop., Pasadena -
Holiday Inn Express, Pasadena
Marriott Courtyard, Pasadena
Hacienda Hotel, Patterson
Proposed Hotel and Restaurant, Patterson
Cascade Ranch Lodge, Pescadero
Elks Lodge, Petaluma
Beverly Hills Residence Inn, Pico
Proposed Hotel, Pinole
Best Western Grande Arroyo, Pismo Beach
Proposed Hilton, Pismo Beach
Fairfield Inn, Placentia
AmeriSuites & Homstead Village, Pleasant Hill
Black Angus Restaurant, Pleasant Hill
Embassy Suites, Pleasant Hill
Pleasant Hill Inn, Pleasant Hill
Residence Inn, Pleasant Hill
Savoy Restaurant, Pleasant Hill
Woodfin Suite Hotel, Proposed, Pleasant Hill
Candlewood Hotel, Pleasanton
Hilton Hotel, Pleasanton
Holiday Inn, Pleasanton
Marriott Courtyard, Pleasanton
Pleasanton Hilton Hotel, Pleasanton
Sierra Suites, Pleasanton
Summerfield Suites, Pleasanton
Qualifications of Suzanne R. Mellen, CRE, MAI
Shilo Inn, Pomona
Country Inn, Port Hueneme
Holiday Inn, Rancho Bernardo
Economy Inn, Rancho Cordova
Hallmark Suites Hotel, Rancho Cordova
Marriott Courtyard, Rancho Cordova
Quality Suites, Rancho Cordova
Marriott's Rancho Las Palmas,
Rancho Mirage
Grand Manor Inn, Redding
Microtel Inn & Suites, Redding
Motel Orleans East, Redding
Motel 6, Redding
Park Terrace, Redding
Red Lion Inn, Redding
Shasta Inn, Redding
Good Nite Inn, Redlands
Sheraton Redondo Beach, Redondo Beach
Hotel Sofitel at Redwood Shores, Redwood City
Carriage Inn, Ridgecrest
Good Nite Inn, Rohnert Park
Ramada Limited Hotel, Rohnert Park
Red Lion Hotel, Rohnert Park
Hilton Gardens Hotel, Roseville
Hotel & Convention Center, Prop., Roseville
Mission Inn, Riverside
Allstar Inn, Sacramento (4)
Arco Arena, Sacramento
Proposed Candlewood Hotel, Sacramento
Candlewood Hotel, Sacramento
Clarion Hotel, Sacramento
Proposed Convention Hotel, Sacramento
Proposed Docks Hotel, Sacramento
Dodge City Motel, Sacramento
Hilton Garden Inn, Sacramento
Hilton Hotel, Sacramento
Hilton Inn, Sacramento
Holiday Inn, Sacramento
Hyatt Regency, Sacramento
Hyatt Regency at Capitol Park, Sacramento
Marriott Courtyard, Sacramento
Motel Orleans, Sacramento
Peregrine Real Estate Trust, Sacramento
Radisson Hotel, Sacramento
Red Lion Hotel-Sacramento, Sacramento
Red Lion-Sacramento Inn, Sacramento
Residence Inn South Natomas, Sacramento
Riverboat Delta King, Sacramento
Sacramento Hilton, Sacramento
Sacramento Inn, Sacramento
Sierra Inn, Sacramento
Sterling Hotei, Sacramento
HVS Internatioizal, San Francisco, Califomia
INTERNATIONAL
Travelers Inn, Sacramento
Proposed Vizcaya Catering Hall, Sacramento
Woodlake Inn, Sacramento
Proposed 60-Unit Hotel, Sacramento
Marriott Courtyard, San Bruno
Best Western Hanalei, San Diego
Best Western Seven Seas Lodge, San Diego
Carmel Highland Doubletree, San Diego
Clarion Bay View, San Diego
Comfort Inn Old Town, San Diego
Proposed Coutryard, San Diego
Doubletree Hotel at Horton Plaza, San Diego
Embassy Suites-La Jolla, San Diego
Executive Lodge, San Diego
Hanalei Hotel, San Diego
Proposed Hilton Garden Inn, San Diego
Holiday Inn, San Diego
Holiday Inn Express Sea World, San Diego
Hotel Del Coronado
Howard Johnson, San Diego
Hyatt Islandia, San Diego
Hyatt Regency, San Diego
Intercontinental Hotel, San Diego
Kings Inn, San Diego
La Jolla Village Inn, San Diego
Marriott Hotel and Marina, San Diego
Marriott Mission Valley, San Diego
Marriott Suites, San Diego
Mission Valley Inn, San Diego
Mission Valley Hilton, San Diego
Radisson Hotel, San Diego
Ramada Limited Suites, San Diego
Rancho Bernardo Inn, San Diego
Red Lion Hotel, San Diego
Residence Inn, San Diego
Renaissance Hotel, Proposed, San Diego
Summer House Inn, San Diego
Sheraton Grand, San Diego
Sheraton Harbor Island East, San Diego
Sheraton Hotel & Marina, San Diego
Super 8 Motel-Point Loma, San Diego
Symphony Towers, San Diego
Town and Country Hotel, San Diego
U.S. Grant Hotel, San Diego
Westin Horton Plaza, San Diego
Wyndham Emerald Hotel, San Diego
ANA Hotel, San Francisco
Bellevue Hotel, San Francisco
Campton Place, San Francisco
Cartwright Hotel, San Francisco
Chancellor Hotel, San Francisco
The Clift Hotel, San Francisco
Comfort Inn by the Bay, San Francisco
Donatello Hotel, San Francisco
Embarcadero Inn, San Francisco
Excipio San Francisco, San Francisco
Fairmont Hotel, San Francisco
Four Seasons Clift, San Francisco
Grand Hyatt, San Francisco
Griffon Hotel, San Francisco
Harbor Court Hotel, San Francisco
Proposed Hilton Garden Inn, San Francisco
Hilton Hotel SFO, San Francisco
Hilton San Francisco Airport North, San
Francisco
Holiday Inn-Civic Center, San Francisco
Holiday Inn-Fisherman's Wharf,
San Francisco
Holiday Inn-Golden Gateway, San Francisco
Holiday lnn-SFO, San Francisco
Holiday Lodge, San Francisco
Hotel Diva, San Francisco
Hotel Griffon & Roti Restaurant, San Francisco
Hotel Nikko, San Francisco
Hotel Rex, San Francisco
Hotel Triton, San Francisco
Hotel Union Square, San Francisco
Howard Johnson's Pickwick Hotel,
San Francisco
Hyatt at Fisherman's Wharf, San Francisco
Hyatt Regency, San Francisco
Hyatt Regency Embarcadero, San Francisco
Proposed Hotel, San Francisco
Proposed Inn at Fisherman's Wharf,
San Francisco
Inn at the Opera, San Francisco
Juliana Hotel, San Francisco
King George Hotel, San Francisco
Lambourne Hotel, San Francisco
Le Meridian Hotel, San Francisco
The Majestic, San Francisco
Mark Twain Hotel, San Francisco
Marriott Fisherman's Wharf, San Francisco
Maxwell Hotel, The, San Francisco
Mission & Steuart Hotel, Proposed, San
Francisco
Orchard Hotel, San Francisco
Pare Fifty-Five, San Francisco
Park Hyatt, San Francisco
Piers 30/32, San Francisco
Portman Hotel, San Francisco
Prescott Hotel, San Francisco
Presidio Travelodge, San Francisco
Queen Anne Hotel, San Francisco
Qualifications of Suzanne R. Mellen, CRE, MAI
Ramada Fisherman's Wharf, San Francisco
Ramada Hotel, San Francisco
Ramada Plaza Hotel, San Francisco
Regis Hotel, San Francisco
Richilieu Hotel, San Francisco
Ritz Carlton-Proposed, San Francisco
San Francisco Airport Hilton, San Francisco
San Francisco Hilton, San Francisco
San Francisco Hotel, San Francisco
San Francisco Marriott, San Francisco
Savoy Hotel, San Francisco
Sheraton Fisherman's Wharf, San Francisco
Sir Francis Drake Hotel, San Francisco
Stanford Court, San Francisco
Super 8 Motel at Fisherman's Wharf
Proposed Inn at 2961 Pacific Avenue,
San Francisco
Tuscan Inn, San Francisco
Westin St. Francis Hotel, San Francisco
Marriott Courtyard, San Francisco Airport
Crowne Plaza, San Jose
Fairmont Hotel, San Jose
Holiday Inn, San Jose
Hyatt San Jose, San Jose
Hyatt St. Claire, San Jose
Ramada Renaissance Hotel, San Jose
· Radisson Plaza Hotel Airport, San Jose
Red Lion-San Jose, San Jose
Proposed Sierra Suites;San Jose
Islander Lodge Motel, San Leandro
Apple Farm Inn, San Luis Obispo
Embassy Suites Hotel, San Luis Obispo
Pacific Suites Hotel, San Luis Obispo
Twin Oaks Golf Course, San Marcos
Benjamin Franklin Hotel, San Mateo
Dunfey Hotel, San Mateo
Holiday Inn, San Mateo
Holiday Inn Express, San Mateo
Hilton Hotel, San Pedro
Embassy Suites, San Rafael
Marriott Hotel, San Ramon
Proposed Hotel, San Ramon
Residence Inn, San Ramon
California Palms, Santa Ana
Compri Hotel, Santa Ana
Embassy Suites, Santa Ana
Executive Inn, Santa Ana
Executive Lodge, Santa Ana
Orange County Ramada Hotel, Santa Ana
Quality Suites, Santa Ana
El Encanto Hotel, Santa Barbara
HVS International, San Francisco, California
INTERNATIONAL
Fess Parker's DoubleTree Resort,
Santa Barbara
Fess Parker's Red Lion Resort,
Santa Barbara
Santa Barbara Inn, Santa Barbara
Santa Barbara Club Resort &·spa, Santa Barbara
San Ysidro Ranch, Santa Barbara
Budget Inn, Santa Clara
Embassy Suites, Santa Clara
Howard Johnson's Hotel, Santa Clara
Marriott Hotel, Santa Clara
Quality Suites, Santa Clara
Hilton Garden Inn, Santa Clarita
Hilton Town Center, Santa Clarita
Inn at Pasatiempo, Santa Cruz
Dream Inn, Santa Cruz
Motel 6, Santa Maria
Santa Maria Airport Hilton, Santa Maria
Proposed Hotel, San Mateo
Casa Del Mar, Santa Monica
Holiday Inn, Santa Monica
Holiday Inn at the Pier, Santa Monica
Loews Santa Monica Beach Hotel, Santa Monica
Ocean Avenue Hotel, Santa Monica
Proposed EconoLodge, Santa Monica
Park Hyatt Hotel, Santa Monica
Santa Monica Beach Hotel, Santa Monica
Sheraton Miramar Hotel, Santa Monica
Holiday Inn, Santa Nella ·
Flamingo Hotel, Santa Rosa
Fountain Grove Inn, Santa Rosa
Holiday Inn, Santa Rosa
Days Inn Seaside, Seaside
Embassy Suites, Seaside
Seaside 8, Seaside
Radisson Valley Center Hotel, Sherman Oaks
Ramada Inn, Solana Beach
Danish CountrY Inn, Solvang
Lodge at Sonoma, Prop., Sonoma
Red Lion Inn, Sonoma
Sonoma Valley Inn, Sonoma
Hardage Suites Hotel Site, Sorrento Mesa
Proposed Woodfin Suite Hotel, Sorrento Mesa
Timberwolf Lodge, South Lake Tahoe
Crown Sterling Suites, South San Francisco
Grosvenor Hotel, South San Francisco
Holiday Inn, South San Francisco
La Quinta Inn, South San Francisco
Proposed 390-room hotel,
South San Francisco
Ramada Inn, South San Francisco
Proposed Hotel, Squaw Valley
Harvest Inn, St. Helena
Meadowood Resort, St. Helena
Motel Orleans, Stockton
Sheraton Hotel-Proposed, Stockton
Stockton Hilton, Stockton
Holiday Inn, Sunnyvale
Neighborhood Suites Hotel, Sunnyvale
The Proposed Grand Hotel, Sunnyvale
Residence Inn Silicon Valley II, Sunnyvale
Sunnyvale Hilton, Sunnyvale
Super 8, Sunnyvale
Good Nite Inn, Sylmar
Embassy Suites-Temecula, Temecula
Temecula Creek Inn & Golf, Temecula
Temecula Inn, Temecula
Hilton Hotel, Torrance
Holiday Inn -Torrance, Torrance
MCA Hotel, Proposed, Universal City
Hilton Garden Inn, Valencia
Holiday Inn, Van Nuys
Hotel Van Nuys, Van Nuys
Habortown Marina Resort, Ventura
Ocean Resorts/Harbortown Hotel, Ventura
Sheraton Hotel, Ventura
Holiday Inn, Walnut Creek
Marriott Hotel, Walnut Creek
Parkside Hotel, Walnut Creek
Proposed Royce Hotel, Walnut Creek
Walnut Creek Marriott, Walnut Creek
Proposed Westin ClubSport, Walnut Creek
Le Bel Age, West Hollywood
Le Duty, West Hollywood
Le Mondrian, West Hollywood
Le Montrose, West Hollywood
Ramada Hotel, West Hollywood
Summerfield Suites, West Hollywood
Golden Pheasant, Willows
Microtel Inn & Suites, Willows
Whittier Hilton, Whittier
Proposed Hotel, Woodland
Woodland Hotel & Conference Center-
Proposed, Woodland
Warner Center Marriott, Woodland Hills
Skylonda Retreat, Woodside
Marriott Tenaya Lodge-Proposed, Yosemite
Bonanza & Convention Center, Yuba City
Motel Orleans, Yuba City
COLORADO
Hotel Jerome, Aspen
Hampton Inn, Aurora
Qualifications of Suzanne R. Mellen, CRE, MAI
Holiday Inn Southeast, Aurora
Downtown Boulder Hotel, Boulder
Hilton Harvest House, Boulder
Holiday Inn, Boulder
Proposed Casino Hotel, Central City
Best Western Le Baron Hotel, Colorado Springs
Proposed Double Eagle Casino Hotel,
Colorado Springs
Embassy Suites, Colorado Springs
Hilton, Colorado Springs
Proposed Double Eagle Casino Hotel,
Cripple Creek
Le Baron Hotel, Denver
Brown Palace, Denver
Days Inn-Arapahoe, Denver
Days Inn-Colfax, Denver
Embassy Suites, Denver
Radisson, Denver
Denver Hilton, Englewood
Proposed Summerfield Suites, Greenwood
Village
Proposed Hampton Inn, Lakewood
Silvertree Hotel, Snowmass
Wildwood Lodge, Snowmass
Westin Hotel, Vail
CONNECTICUT
Holiday Inn, Darien
Proposed Days Inn, Enfield
Hartford Hilton, Hartford
Motel 6, Hartford
Residence Inn, Meriden
Executive Hotel, Stamford
Harley Hotel, Stamford
Holiday lnn-Crowne Plaza, Stamford
Fairfield Inn, Windsor Locks
DISTRICT OF COLUMBIA
ANA Hotel, Washington
Fairmont Hotel, Washington
Harambee House, Washington
Hyatt Regency, Washington
Ritz-Carlton, Washington
River Inn, Washington
St. James, Washington
Sheraton Washington Hotel, Washington
FLORIDA
Holiday Inn, Altamonte Springs
HVS lntemational, San Francisco, Califomia
INTERNATIONAL
Embassy Suites, Boca Raton
Petite Suites, Boca Raton
Holiday Inn, Clearwater
Holiday Inn Gulfview, Clearwater
Holiday Inn Surfside, Clearwater Beach
Doubletree Oceanfront, Ft. Lauderdale
Galleria Doubletree Guest Suites,
Ft. Lauderdale
Holiday Inn-Airport, Ft. Lauderdale
Holiday Inn-Beach, Ft. Lauderdale
Holiday Inn-North, Ft. Lauderdale
Fairfield Inn, Gainesville
Embassy Suites, Lake Buena Vista
Embassy Suites Orlando, Buena Vista
Woodfin Suite Hotel, Proposed, Lake Buena
Vista
Holiday Inn-Madeira, Madeira Beach
Fairfield Inn, Miami
Holiday Inn-Calder, Miami
Fairfield Inn International, Miami
Fairfield Inn South, Miami
Holiday Inn-International Drive, Orlando
Holiday Inn-Lee Road, Orlando
Peabody Hotel, Orlando
Sheraton Jetport Inn, Orlando
Sheraton Lakeside, Orlando
Holiday Inn, Palm Beach Gardens
Plantation Sheraton Suites, Plantation
Holiday Inn-Lido Beach, Sarasota
Holiday Inn-Airport, Tampa
Ramada Inn, Tampa
GEORGIA
Fairfield Inn Northlake, Atlanta
Proposed Hyatt-Airport, Atlanta
Motel 6, Atlanta
Neighborhood Inn, Atlanta
Residence Inn, Atlanta
Stouffer's Hotel-Proposed, Atlanta
Westin Peachtree Plaza, Atlanta
Fairfield Inn, College Park
Holiday lnn-Crowne Plaza, College Park
Fairfield Inn-Gwinnett, Duluth
Howard Johnson's Forsyth
Fairfield Inn, Marrietta
Fairfield Inn, Morrow
Fairfield Inn, Norcross
Motel 6, Norcross
Fairfield Inn, Savannah
HAWAII
Ritz-Carlton Mauna Lani
Royal Sea Cliff Resort, Hawaii
Gateway Hotel, Honolulu
Miramar Hotel, Honolulu
Outrigger East Hotel, Honolulu
Outrigger Waikiki Hotel, Honolulu
Outrigger West Hotel, Honolulu
Sand Villa Hotel, Honolulu
Coco Palms Resort, Kauai
Westin Kauai at Kauai Lagoons Resort, Kauai
Grand Wailea Resort, ·Maui
Kea Lani Resort, Maui
Maui Lu Resort, Maui
Royal Hawaiian Hotel, Oahu
IDAHO
Motel 6, Coeur d'Alene
Resort Development, Coeur d'Alene
Cotton Tree Inn, Pocatello
ILLINOIS
Indian Lakes Resort, Bloomingdale
Jumers Chateau, Bloomington
Super 8 Motel, Bloomington
Super 8 Motel, Champagne
Fairmont Hotel, Chicago
Hyatt at University Village, Chicago
Mayfair Regent, Chicago
Proposed Radisson Hotel, Chicago
Westin Hotel, Chicago
Woodfin Suite Hotel, Proposed, Chicago
Super 8 Motel, Crystal Lake
Super 8 Motel, Decatur
Proposed Hotel, Des Plaines
Radisson Suites, Downers Grove
Hampton Inn, Elk Grove
Holiday Inn, Elmhurst
Orrington Hotel, Evanston
Drury Inn, Fairview Heights
Jumers Continental Inn, Galesburg
Fairfield Inn, Hinsdale
Proposed Westin Hotel & ClubSport,
Hoffman Estates
Nordic Hills Resort, Itasca
Empresss Hotel & Casino, Joliet
Holiday Inn, Joliet
Fairfield Inn, Lansing
Fairfield Inn, Normal
Qualifications of Suzanne R. Mellen, CRE, MAI
Fairfield Inn, Peoria
Jumer's Castle, Peoria
Super 8 Motel, Peru
Fairfield Inn, Rockford
Marriott Hotel, Schaumburg
Proposed Woodfin Suite Hotel, Schaumberg
DoubleTree Hotel -North Shore,
Skokie
Jumer's Castle, Urbana
Super 8 Motel, Waukegan
INDIANA
Super 8 Motel, Columbus
Fairfield Inn, Fort Wayne
Sheraton Hotel, Gary
Empress Casino, Hammond
Caesars Riverboat Casino Complex-Proposed,
Harrison County
Fairfield Inn, Indianapolis
Four Points Sheraton, Indianapolis
Motel 6, Indianapolis
Westin Hotel, Indianapolis
Woodfin Suite Hotel, Prop., Indianapolis
Wyndham Garden Hotel, Indianapolis
Hilton Inn, Jeffersonville
Brown County Inn, Nashville
IOWA
Jumers Castle Lodge, Bettendorf
Holiday Inn, Cedar Falls
Collins Plaza, Cedar Rapids
Fairfield Inn, Cedar Rapids
Fairfield Inn, Clive
KANSAS
Proposed Emerald City Resort, Kansas City
The Emerald City Resort Hotel, Kansas City
Fairfield Inn, Merriam
Fairfield Inn, Overland Park
Canterbury Inn/Knights Inn, Wichita
KENTUCKY
Holiday Inn-Central, Louisville
Holiday Inn-Northeast, Louisville
Ramada Inn East, Louisville
HVS bztemational, San Francisco, California
INTERNATIONAL
LOUISIANA
Howard Johnson's, Alexandria
Embassy Suites, Baton Rouge
Hilton Hotel, Baton Rouge
Horseshoe Casino, Bossier City
Sheraton At New Orleans Airport, Kenner
Fairmont Hotel, New Orleans
Harrah's Jazz Casino, New Orleans
Chateau Sonesta, New Orleans
Hyatt Regency, New Orleans
The Iberville Hotel, New Orleans
Lakeside DoubleTree, New Orleans
The Maison Dupuy, New Orleans
Ramada Inn St. Charles, New Orleans
MAINE
Inn by the Sea, Cape Elizabeth
MARYLAND
Holiday Inn, Aberdeen
Marriott Waterfront Hotel, Annapolis
Maryland Inn, Annapolis
Residence Inn, Bethesda
Best Western Motor Lodge, Chicopee
Abbey, College Park
Holiday Inn, Laurel
Days Inn, Rockville
DoubleTree Hotel, Rockville
Holiday Inn Crowne Plaza, Rockville
Ramada Inn, Rockville
MASSACHUSETTS
Marriott Copley Place, Boston
Meridian Hotel, Boston
Residence Inn, Boston
Federal House Inn, South Lee
Holiday Inn, Springfield
Sheraton, Sturbridge
Proposed Sierra Suites Hotel, Waltham
Proposed Summerfield Suites Hotel, Waltham
Proposed Sierra Suites Hotel, Woburn
MICHIGAN
Fairfield Inn, Auburn Hills
Super 8 Motel, Battle Creek
Howard Johnson's, Belleville
Fairfield Inn, Canton
Holiday Inn, Detroit
Golden Harp-Proposed, Detroit
Radisson Hotel, Farmington Hills
Fairfield Inn, Kalamazoo
Super 8 Motel, Kalamazoo
Embassy Suites-Proposed, Livonia
Embassy Suites, Livonia
Fairfield Inn, Madison Heights
Super 8 Motel, Mount Pleasant
Super 8 Motel, Muskegon
Inn at the Bridge, Port Huron
Fairfield Inn, Romulus
Super 8 Motel, Saginaw
Proposed Woodfin Suite Hotel, Southfield
Comfort Suites, Sterling Heights
Holiday Inn, Troy
Fairfield Inn, Warren
Holiday Inn, Warren
Motel 6, Warren
Super 8 Motel, Wyoming
MINNESOTA
Holiday Inn, Duluth
Motel 6, Minneapolis
Proposed Motel, Montevideo
Motel 6, Rochester
Radisson Plaza Hot~!. Rochester
MISSISSIPPI
Treasure Bay Hotel & Casino, Biloxi
Motel 6, Hattiesburg
Howard Johnson's, Jackson
Quality Inn, Oxford
Horseshoe Casino Center, Robinsonville
Sam's Town Hotel & Gambling Hall
Robinsonville
MISSOURI
Fairfield Inn, Hazelwood
Holiday Inn, Kansas City
Sam's Town Hotel & Gambling Hall, Kansas City
Holiday Inn, Springfield
Clarion Hotel, St. Louis
Executive Inn, St. Louis
Holiday Inn Sports Complex, St. Louis
Sheraton Airport, St. Louis
Sheraton Westport, St. Louis
Proposed Hotel, Unity Village
Qualifications of Suzanne R. Mellen, CRE, MAI
MONTANA
Holiday Inn, Bozeman
Holiday Inn, Missoula
Red Lion Hotel, Missoula
NEBRASKA
Marriott Hotel, Omaha
Red Lion Inn, Omaha
NEVADA
Ormsby House Hotel and Casino, Carson City
Eldorado Casino, Henderson
Joker's Wild Casino, Henderson
Airport Inn, Las Vegas
Aladdin Hotel & Casino, Las Vegas
Alexis Park Hotel, Las Vegas
California Hotel & Casino, Las Vegas
Fremont Hotel & Casino, Las Vegas
Proposed Hilton Garden Inn, Las Vegas
Proposed Homewood Suites, Las Vegas
Hotel & Casino El Rancho, Las Vegas
Howard Johnson Hotel & Casino, Las Vegas
Jockey Club, Las Vegas
Paradise Resort Hotel, Las Vegas
Residence Inn, Las Vegas
Sam's Town Hotel & Gambling Hall, Las Vegas
Stardust Resort and Casino, Las Vegas
Sunrise Hotel & Casino, Las Vegas
Proposed Hotel, Sparks
NEW JERSEY
Deauville Hotel, Atlantic City
Harrah's Marina Hotel Casino, Atlantic City
Sands Hotel & Casino, Atlantic City
Tropicana Hotel & Casino, Atlantic City
Cherry Hill Inn, Cherry Hill
Proposed Ramada Inn, Elizabeth
Proposed Ramada Inn, Franklin Township
Proposed Summerfield Suites Morristown,
Hanover
Proposed Summerfield Suites Parsippany,
Hanover
Holiday Inn, Jamesburg
Headquarters Plaza, Morristown
Howard Johnson's Mount Holly
Mt. Laurel Hilton, Mt. Laurel
Holiday Inn, Newark
Howard Johnson's, Saddle Brook
HVS International, San Francisco, California
INTERNATIONAL
DoubleTree Hotel, Somerset
Marriott Hotel, Somerset
Motel, Wrightstown
Five Churches Chicken Restaurants,
Various Locations ·
NEW MEXICO
Doubletree Hotel, Albuquerque
Hampton Inn, Albuquerque
Ramada Hotel Classic, Albuquerque
Radisson Inn, Albquerque
Las Cruces Hilton, Las Cruces
Homewood Suites, Santa Fe
Inn at Loretto, Santa Fe
Sheraton de Santa Fe, Santa Fe
Rancho Ramada Inn de Taos, Taos
NEW YORK
Hilton Hotel, Albany
Buffalo Hotel, Buffalo
Proposed Airport Hotel, Buffalo
Nevele Hotel, Ellenville
Howard Johnson's, Elmsford
Ramada Inn, Hauppauge
Hilton Hotel, Lake Placid
Proposed Hotel, New Rochelle
Ramada Plaza, New Rochelle
Sheraton Inn, New Rochelle
Barbizon Plaza Hotel, New York
Berkshire Place, New York
Century Paramount Hotel, New York
Essex House, New York
Executive Hotel, New York
Halloran House, New York
Hampton House, New York
Holland Hotel, New York
Howard Hotel, New York
Marriott Eastside, New York
Mayfair Regent, New York
Nova-Park Gotham, New York
Parker Meridien Hotel, New York
Proposed Soho Hotel, New York
Tudor Hotel, New York
York Club, New York
Sheraton Inn, Ossining
Proposed Hotel, Saratoga
Howard Johnson's, Smithtown
Hampton Inn, Syracuse
Sheraton Nassau Hotel, Uniondale
Turning Stone Casino, Verona
Roger Smith Hotel, White Plains
Fairfield Inn, Williamsville
NORTH CAROLINA
Fairfield Inn, Charlotte
Fairfield Inn, Durham
Motel 6, Durham
Fairfield Inn, Fayetteville
Embassy Suites, Greensboro
Fairfield Inn, Greensboro
Hilton Inn, Greensboro
Fairfield Inn, Raleigh
Hilton Inn, Raleigh
Motel 6, Rocky Mount
Cleghorn Plantation, Rutherfordton
Fairfield Inn, Wilmington
Hilton Inn, Winston-Salem
OHIO
Holiday Inn Cascade, Akron
Embassy Suites, Blue Ash
Fairfield Inn, Brook Park
Proposed Embassy Suites, Cincinnati
Howard Johnson's, Cincinnati
Marriott Inn, Cincinnati
Radisson Inn, Cincinnati
Residence Inn, Cincinnati
Vernon Manor, Cincinnati
Holiday Inn Lakeside, Cleveland
Hotel, Proposed, Cleveland
Sheraton Hopkins, Cleveland
200-Room Boutique Hotel, Cleveland
Fairfield Inn, Columbus
Holiday Inn, Columbus
Holiday Inn -Airport, Columbus
Woodfin Hotel, Columbus
Daytonian Hilton, Dayton
Fairfield Inn, Dayton
Motel 6, Dayton
Proposed Woodfin Suite Hotel, Dublin
Fairfield Inn, Holland
Holiday Inn, Toledo
Fairfield Inn, Willoughby
OKLAHOMA
Fountainhead Resort, McIntosh County
Arrowhead Resort, Pittsburgh County
Qualifications of Suzanne R. Mellen, CRE, MAI
OREGON
Red Lion Inn, Astoria
Inn at Face Rock, Bandon
Shilo Inn, Beaverton
Proposed Hotel, Bend
Red Lion Inn -North, Bend
Red Lion Inn -Coos Bay, Coos Bay
Proposed Hilton Garden Inn, Corvallis
Econolodge, Eugene
Execulodge, Eugene
Red Lion Inn, Eugene
Big Creek Resort, Florence
Salishan Lodge, Gleneden Beach
Shilo Inn, Grants Pass
Candlewood Hotel, Hillsboro
Proposed Courtyard Hotel, Hillsboro
Proposed Residence Inn, Hillsboro
Red Lion Inn, Medford
Residence Inn, Lake Oswego
Red Lion Hotel, Pendleton
Avalon Hotel, Portland
Columbia River Red Lion, Portland
Embassy Suites, Portland
Holiday Inn, Portland
Proposed Sheraton Suites, Portland
Red Lion Hotel-Portland Downtown, Portland
Red Lion Inn-Lloyd Center, Portland
Residence Inn-Lloyd Center, Portland
Residence Inn, Proposed, Portland
Sunriver Resort, Portland
Vintage Plaza Hotel, Portland
Wells Building, Portland
West Coast Benson Hotel, Portland
Proposed Westin Hotel, Portland
Capitol Inn, Salem
Execulodge, Salem
Red Lion Inn, Seaside
Red Lion Inn, Springfield
Skamania Lodge, Stevenson
Sunriver Resort, Sunriver
Embassy Suites, Tigard
Red Lion Inn, Tigard
PENNSYLVANIA
Embassy Suites -Pittsburgh, Coraopolis
Days Inn, Danville
Ramada Inn, Erie
Fairfield Inn, Harrisburg
Rittenhouse Towers, Philadelphia
Fairfield Inn, Pittsburgh
HVS International, San Francisco, California
INTERNATIONAL
Motel 6, Pittsburgh
Embassy Suites, Philadelphia
DoubleTree Guest Suites,
Plymouth Meeting
Hilton At Lackawanna Station, Scranton
SOUTH CAROLINA
Holiday Inn, Charleston
Holiday Inn -Airport, Charleston
Holiday Inn, Charleston-Riverview
Travelodge, Charleston
Embassy Suites, Columbia
Motel 6, Columbia
Fairfield Inn, Greenville
Ramada Inn, Greenville
Fairfield Inn, Florence
Fairfield Inn, Hilton Head
Hilton Head Inn, Hilton Head
Holiday Inn Express, Hilton Head
Hyatt Regency, Hilton Head
Save Inn, Lake Hartwell
SOUTH DAKOTA
Proposed Four Points Hotel, Sioux Falls
TENNESSEE
Motel 6, Chattanooga
Holiday Inn, Jackson
Fairfield Inn, Johnson City
Holiday Inn, Memphis
Howard Johnson -Airport, Memphis
Motel 6, Memphis
Days Inn, Nashville
Hampton Inn, Nashville
Hampton Inn, Pigeon Forge
TEXAS
Courtyard by Marriott, Addison
Proposed Hotel, Addison
Proposed Marriott Courtyard, Addison
Proposed Summerfield Suites Hotel, Addison
Days Inn, Amarillo
Motel 6, Amarillo
Super 8 Motel, Amarillo
Holiday Inn, Austin
Holiday Inn -Airport, Austin
Sheraton Hotel, Austin
Proposed Woodfin Suite Hotel, Austin
Days Inn, Corpus Christi
Doubletree Inn, Dallas
Fairmont Hotel, Dallas
Hyatt Regency, Dallas
Marriott Park Central, Dallas
Marriott Quorum, Dallas
Melrose Hotel, Dallas
Motel 6, Dallas
Park Plaza, Dallas
Ramada Inn Convention Center, Dallas
Residence Inn, Dallas
Summit Hotel, Dallas
Howard Johnson's, East Dallas
Allstar Inn, El Paso
Embassy Suites, El Paso
Travelers Inn, El Paso
Proposed Westin Hotel, Frisco
Metro Center Hotel, Fort Worth
Embassy Suites, Houston
Holiday Inn-Hobby, Houston
Houston House, Houston
Houstonian Hotel, Houston
Motel 6, Houston
Residence Inn, Houston
Stouffer Renaissance, Houston
Proposed Hampton Inn, Irving
Summerfield Suites, Irving
Holiday Inn, Lubbock
Townplace Suites, Plano
Crockett Hotel, San Antonio
Fairmont Hotel, San Antonio
UTAH
Utah Trails Resort, Kanab
Seven Peaks Resort Hotel, Provo
Cavanaugh's Olympus Hotel,
Salt Lake City
Red Lion Hotel, Salt Lake City
VIRGINIA
Howard Johnson's, Alexandria
Embassy Suites Crystal City, Arlington
Hyatt Arlington, Arlington
Holiday Inn Crowne Plaza, Crystal City
Motel 6, Fredericksburg
Fairfield Inn, Hampton
Omni International Hotel, Norfolk
Embassy Suites, Richmond
Holiday Inn West End, Richmond
Qualifications of Suzanne R. Mellen, CRE, MAI
WASHINGTON
Best Western Bellevue Inn, Bellevue
Candlewood Hotel, Bellevue
DoubleTree Bellevue Center, Bellevue
Embassy Suites, Bellevue
Hampton Inn, Bellevue
Red Lion Inn Bellevue Center, Bellevue
Residence Inn, Bellevue
Semiahmoo Hotel Company, Blaine
Semi-ah-moo Resort, Blaine
Motel 6, Issaquah
Red Lion Inn, Kelso
Embassy Suites, Lynnwood
Residence Inn, Lynnwood
Red Lion Inn, Pasco
Residence Inn, Redmond
Hilton Gardens Hotel, Redmond
Red Lion Inn, Richland
Best Western Tower Inn, Richland
Hampton Inn, Sea-Tac
Holiday Inn Sea-Tac, Sea-Tac
Red Lion Hotel, Sea-Tac
Alexis Hotel, Seattle
Doubletree Inn, Seattle
Extended-Stay Hotel, Proposed, Seattle
Hampton Inn, Seattle
Holiday Inn Crowne Plaza, Seattle
Madison Hotel, Seattle
Red Lion Hotel, Seattle
Proposed Seattle Hotel, Seattle
West Coast Paramount, Seattle
West Coast Sea-Tac Hotel, Seattle
West Coast Vance Hotel, Seattle
Springhill Suites, Seattle
The Bay Silverdale Hotel, Silverdale
Red Lion Inn, Spokane
Red Lion Inn, Spokane Valley
Park Shore Inn, Tacoma
Red Lion Inn, Tacoma
Sheraton Hotel, Tacoma
Doubletree Suites, Tukwila
Embassy Suites, Tukwila
Residence Inn, Tukwila
Hampton Inn, Tukwila
Red Lion Inn at the Quay, Vancouver
Residence Inn, Vancouver
Red Lion Inn, Wenatchee
Red Lion Inn, Yakima
HVS Intenzational, San Francisco, Califonzia
INTERNATIONAL
WEST VIRGINIA
Holiday Inn Charleston House, Charleston
Holiday Inn, Huntington
Howard Johnson's, Wheeling
WISCONSIN
Fairfield Inn, Brookfield
Milwaukee Marriott Hotel, Brookfield
Wyndham Garden Hotel, Brookfield
Super 8 Motel, Jamesville
Super 8 Motel, Kenosha .
Fairfield Inn, Madison
Holiday Inn-Airport, Milwaukee
Holiday Inn-West, Milwaukee
WYOMING
Days Inn, Casper
Flying L Skytel, Cody
CANADA
119-Unit Hotel, Canmore, Alberta
EconoLodge, Hull, Quebec
Sutton Place Hotel & Apartments, Toronto
FRANCE
Marriott Champs Elysee, Paris
GUAM
Royal Palm Resort, Tuman
Hyatt Regency Hotel, Tuman Bay
Proposed Hotel, Tamuning
MEXICO
Esperanza Hotel, Proposed, Cabos San Lucas
Omni Hotel, lxtapa
La Jolla de Mismaloya, Puerto Vallarta
PUERTO RICO
Carib Inn, San Juan
VARIOUS
Starwood Analysis
Qualifications of Suzanne R. Mellen, CRE, MAI