Title F Feasibility Study

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MARKET FEASIBILITY STUDY PROPOSED HOTEL/CONVENTION CENTER FACILITY LANCASTER, PA PREPARED FOR: MR. DICK SHELLENBERGER, CHAIRMAN BOARD OF COMMISSIONERS LANCASTER COUNTY PREPARED BY: PKF CONSULTING MAY 2006

May 12, 2006

8 Penn Center Plaza th 19 Floor Philadelphia, PA 19103 Phone: 215-563-5300 Fax: 215-563-1977

Mr. Dick Shellenberger, Chairman Board of Commissioners Lancaster County 50 North Duke Street Lancaster, Pennsylvania 17608-3480 Dear Mr. Shellenberger: In accordance with your request we have completed our market feasibility study associated with the proposed development of a Hotel/Convention Center to be located in Downtown Lancaster, Pennsylvania. The entire study and conclusions reached are based upon our present knowledge and information with respect to the status and demand characteristics of the subject project’s competitive lodging and meetings markets. As in all studies of this type, the estimated results are based upon competent and efficient management and presume no significant change in the competitive position of the lodging and meetings industries in the immediate area from that as set forth in this report. They are also based on our evaluation of the present economy of the region and do not take into account or make provision for the effect of any sharp rise or decline in economic conditions not presently foreseeable. To the extent that wages and other operating expenses may advance over the economic life of the subject project, we expect that prices of rooms and other services will be adjusted, at least to offset such advances. The terms of our engagement are such that we have no obligation to revise this report or the estimated annual operating results to reflect events or conditions which occur subsequent to the date of the completion of our fieldwork. However, we are available to discuss the necessity for the revision in view of changes in the economic or market factors affecting the proposed project. Please do not hesitate to call should you have any comments or questions. Sincerely,

PKF Consulting

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 INTRODUCTION

Section I: Introduction INTRODUCTION PKF Consulting was engaged by the Board of Commissioners of Lancaster County (Pennsylvania) to conduct a feasibility study of market demand and operating performance associated with the proposed development of a Hotel/Convention Center to be located in Downtown Lancaster. Assumptions for the proposed development include the following: • The Hotel component of the proposed development will be branded as a fullservice 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 prefunction space, a 9,200 squarefoot ballroom, three 764 square-foot boardrooms, and 7,662 square feet of meeting room space.



SCOPE OF THE STUDY The scope of our study included the following: • • • • • Site analysis. Analysis of economic trends. Analysis of historical, current,...
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