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i
<br /> To show the potential impact of the Hilton Garden Inn we have factored 50 new
<br /> being added to the supply in 1999. This would generate 9,250 additional rooms
<br /> to
<br /> r
<br /> In turn, in the year 2000 there would be anotheroms i
<br /> inventory. 9,000 additional rooms added to the
<br /> Wehave then added the Americlnn to the market in the spring of 2000 with 105 new
<br /> guest rooms.
<br /> k ` ' - ' If the proposed hotel enters
<br /> the market in 2000 with 105 new rooms, the supply would
<br /> be increased by approximately 18,900 new rooms to fill. In the year 2001, the su l
<br /> would increase again with another 19,425 new rooms to fill. pP y
<br /> FORECAST OF PRIMARY COMPETITOR OCCUPANCY
<br /> Year Supply New °
<br /> /o Demand % Additional Area Occ
<br /> Rooms Change Change - Occ
<br /> , : Rooms
<br /> 1992 584,000
<br /> 0.0 385,671 5.6 66.0 %
<br /> 1993 584,000
<br /> 1994 584 0.0 390,229 1.2 4,558 66.8
<br /> 000 0.0 378,832 . -2.9
<br /> 1995 584,000 0.0 367,655 -3.0 -11,397 63.0 %
<br /> -11,177 63.0 %
<br /> 1996 584,000 0.0 .355,301
<br /> 1997 ' 584,000 . "3.4 -12,354 60:8.%
<br /> 1998 584 000 0.0 351,105 -1.2 =4,196 60.10
<br /> 0.0 371 709 5.9
<br /> 1999 593,250 , 9,250 • 1.6 .388,436 20,604263.655 %
<br /> 2000 621,150 27,900 4.5 16,727 65.5
<br /> 2001 640,57521, 4.7 400,089 3.0 11,653 64.4%
<br /> v 19,425 3:1 410,091 2.5 10,002 64.0%
<br /> 2002 640,575 0.0 418,293 2.0 °
<br /> 8,202 65.3 /o
<br /> ,( Hotel Change 1999 2000 ,
<br /> 2001 2002
<br /> Hilton Garden Inn 50 Rooms 9,2.50 9,250
<br /> Americlnn 105 Rooms 18,900
<br /> "t 1,-.• 19,425
<br /> Prepared`by: Marketing & Development Associates9,250 27 900 19 425
<br /> ,,,,.., .
<br /> fs',
<br /> Summary
<br /> �
<br /> �
<br /> r ,.:---
<br /> What this is showing us is that the new Hilton Garden Inn.will have some impact on
<br /> the area occupancy--- but not much. While the hotel will add to the supply, t e
<br /> demand strength is large enough to offset this and still maintain a solidarea����;' occupancy. Even when the Amer'
<br /> iclnn is opened and generating.the largest number
<br /> of new rooms to the market (the year 2000) the area occupancy can still be expected to
<br /> V=
<br /> average 64.4%. p y
<br /> rte �
<br /> talk. We feel that the new Americlnn can be forecast to achieve a first
<br /> rthat will reach the areayearoccupancy
<br /> : average and will achieve 100% overall penetration in the
<br /> market.
<br /> J
<br /> 32
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