Hotel construction hasn't started. The city plans to own and finance the hotel itself.
HVS conducted four, four-page, single-spaced financial scenario projects, which projected such things as occupancies, average daily room rate, total net revenues, cash flow expenditures, net income, total reserve fund balances, and equity as a percentage of debt service from 2006 to 2033.
HVS played with the occupancy and the room rates to come up with its different scenarios.
Under its "base case scenario" the city would only need a 60% occupancy rate in 2006, the year the hotel is expected to open, and an average room rate of $158.59.That is below what top Downtown hotels are achieving in both occupancies and room rates today.
Under this scenario, the average hotel occupancy rate would rise to 2009 where it would stay until 2033. But by 2033, the average room rate would be $346.69, more that double the projected rate in 2006.
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