03-05-07 Special Called Joint Meeting of the La Porte Development Corporation Board of Directors and the La Porte City Council Minutes

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EXECUTIVE SUMMARY I- 4 · The respondents indicated that 70% of the corporations and 100% of the community organizations had a need for meeting space at an upscale, full- service hotel. · The surveys returned by the corporations indicated that 78% were leaving the market area for hotel accommodations and 82% were leaving the market area for meeting space needs. · When asked if they would use an upscale, full-service hotel located on Sylvan Beach or the La Porte Bayfront for hotel accommodations and/or meeting space needs, 79% of the corporations and 100% of the community organizations indicated that they definitely would. The results of this survey are a strong indicator that there is a need for an upscale, full-service hotel at the proposed site. · The subject hotel is expected to capture the following mix of demand. Corporate Group Leisure Total 60% 25% 15% 100% Source: PKF Consulting The majority of the demand for the proposed Sylvan Beach hotel will be corporate demand from the Port of Houston and the petrochemical industry. Group demand will be generated by corporate, association and community events. Leisure demand will be generated by Project Stars, Bayport Cruise Terminal and Sylvan Beach. · The estimated operating performance of the proposed Sylvan Beach Hotel in La Porte, Texas is, as follows: Estimated Operating Performance Proposed Sylvan Beach Hotel la Porte, Texas Annual Tr~ve.l~lf Net Operating Year Occupancy "~ jly ":l: Income 2010 64% $158 $3,176,000 2011 68% $162 $3,559,000 2012 72% $167 $3,953,000 2013 74% $172 $4,176,000 2014 74% $177 $4,295,000 . Stated Year Dollars, rounded to the nearest dollar. Based on an ADR of $140 in 2006 dollars. Source: PKF Consulting