Laserfiche WebLink
<br />HOTEL MARKET ANALYSIS <br /> <br />IV-10 <br /> <br /> <br />Corporate <br />Group <br />Leisure <br />Total <br /> <br />Source: PKF Consulting <br /> <br />The majority of the demand for the proposed Sylvan Beach hotel will be corporate <br />demand from the Port of Houston and the petrochemical industry. Group demand will be <br />generated by corporate, association and community events. Leisure demand will be <br />generated by Project Stars, Bayport Cruise Terminal and Sylvan Beach. <br /> <br />Occupancy and Average Daily Rate <br />The following table shows the estimated occupancy and ADR for the proposed Sylvan <br />Beach hotel, assuming a 3% inflation rate. <br /> <br />Estimated Occupancy and ADR <br />Proposed Sylvan Beach Hotel <br /> <br /> Anllt '..ge <br />Year OCC~ " ate* <br />2010 64% $158 <br />2011 68% $162 <br />2012 72% $167 <br />2013 74% $172 <br />2014 74% $177 <br />* Stated Year Dollars, rounded to the nearest dollar. <br />Based on an ADR of $140 in 2006 dollars. <br /> Source: PKF Consulting <br /> <br />As the only upscale, full-service hotel in the market, occupancies are expected to <br />increase from 64% in 2010 to 74% in 2013, the stabilized year. The subject property <br />should be able to reach this level of occupancy because of the strong corporate and <br />group weekday demand and the anticipated weekend leisure demand. ADR is expected <br />to be $140 in 2006 dollars, which is similar to rates being achieved by both comparable <br />hotels and competitive hotels located outside the market. <br />