Hotel Feasibility

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  • Topic: Supply and demand, Lancaster County, Pennsylvania, Compound annual growth rate
  • Pages : 58 (15787 words )
  • Download(s) : 37
  • Published : March 30, 2013
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MARKET FEASIBILITY STUDY PROPOSED HOTEL/CONVENTION CENTER FACILITY LANCASTER, PAPREPARED FOR: TABLE OF CONTENTS
SECTION
INTRODUCTION .......................................................................................................I EXECUTIVE SUMMARY...........................................................................................II SITE REVIEW .........................................................................................................III AREA REVIEW ...................................................................................................... IV SUPPLY AND DEMAND.......................................................................................... V PROJECTED PERFORMANCE ............................................................................. VI STATEMENTS OF ESTIMATED ANNUAL OPERATING RESULTS .................... VII APPENDIX

SECTION I

EXECUTIVE SUMMARY
Section II: Executive Summary II-1
SUMMARY
Based upon information collected during the fieldwork phase of our study, and subsequent analyses, following is a summary of our findings and conclusions relating to the proposed Hotel/Convention Center to be located in Downtown Lancaster. • The Hotel component of the proposed development will be branded as a full service Marriott property and will contain 300 guestrooms, a full-service restaurant, a 9,621 square-foot ballroom, and a 7,541 square-foot fitness facility to include an exercise room, indoor pool, and whirlpool. • The Convention Center component of subject project will contain a 47,842 square-foot exhibit hall, 27,551 square feet of pre function space, a 9,200 square-foot ballroom, three 764 square-foot boardrooms, and 7,662 square feet of meeting room space. • The proposed project site fronts on historic Penn Square in Downtown Lancaster, and contains the former Watt & Sh and Department Store Building as its centerpiece. The Hotel component is to be developed within the historic Watt & Shand Department Store Building and in a new tower to be constructed over the existing building at its southeast corner, while the Convention Center component is to be constructed on a vacant parcel to the south of the Watt & Shand Department Store Building. Specifically, the total project site is located to the north of East Vine Street, to the south of East King Street, to the east of South Queen Street, and to the west of Duke Street.

FINDINGS
• Economic indicators for the subject market area project a positive outlook for economic growth in the region.
• Feedback from trade/consumer show organizers indicated that the demographic profile of the subject market area, specifically the population and household income levels, would support mid-level shows such as those revolving around antiques and art. Generally speaking, the local market area would not support high-level (large attendance) shows such as auto or boat shows.

• Our research revealed that, depending on the source of the information, national trends in the convention center industry can be deemed either positive or negative. It is more relevant to analyze more localized areas when determining trends, particularly since reported national trends tend to overlook secondary or tertiary convention destinations such as Lancaster. However, one trend that appears to be generally consistent is that overall supply growth in the meetings industry has been outpacing overall demand growth in recent years, creating a more fiercely competitive environment. For example, functions that previously would have been held at secondary or Section II: Executive Summary

II-2
tertiary convention destinations are now being accommodated at primary destinations, as the larger facilities in major markets have the ability to host numerous smaller events concurrently. However, there is a renewed interest on the part of many convention groups to consider second-tier cities in their evaluation of destinations, primarily for pricing...
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