Hotel Feasibility Study
Hotel Feasibility Study Completed March 6, 2012
For More Information Please Contact Megan Compton 512.230.5193
Table of Contents
I. II. III.
Hotel Feasibility Summary Centerpoint Hotel Feasibility Report Excerpt Centerpoint at Lockhart Site Plan
I. Hotel Feasibility Summary
Page 1 of 5
12/6/2011 LOCKHART, TEXAS HOTEL PROJECT
SUMMARY FOR THE PROPOSED HOLIDAY INN EXPRESS HOTEL LOCKHART TEXAS. SH 142 AT SH 130: -An analysis of the feasibility of a new, strongly branded Holiday Inn Express Hotel has been performed at this location, with the alternative budget brand Motel 6 also analyzed. It was concluded that a new hotel at this location would be a highly attractive investment for a developer. -The Holiday Express brand was selected as the highest and best use of the site/location because it is the most sought after ‘middle of the market’ limited service hotel brand (based consumer choice, REVPAR performance, and level of investment). -Such a hotel would not only take advantage of increasing population growth in the TX 130/Lockhart area, but also provide the best lodging choice for consumers outside of San Marcos. -Developing a hotel at this site will produce an unleveraged, pretax return on total invested capital of approximately 17%, with a return on equity of over 40%. This is an excellent hotel investment. -A new strongly branded limited service hotel opening in 2013 would be expected to produce performance results as follows:
Occupancy Percent
Year Year Year Year Year Year Year Year Year Year I II III IV V VI VII VIII IX X 63.5% 72.1% 72.6% 72.3% 72.6% 72.3% 72.2% 72.0% 71.8% 71.8%
Project Summary Average $ $ Rate REVPAR
$103.94* $108.00 $115.04 $117.92 $119.68 $120.87 $122.07 $123.29 $124.53 $125.76 $65.96 $77.86 $83.55 $85.23 $86.93 $87.39 $88.08 $88.77 $89.47 $90.28
Total Revenue
CashFlow**
$2,275,230 $1,025,553 $2,685,615 $1,270,937 $2,882,002 $1,396,809 $2,939,643 $1,407,982 $2,998,436 $1,345,942 $3,014,206 $1,316,196
For More Information Please Contact Megan Compton 512.230.5193
Table of Contents
I. II. III.
Hotel Feasibility Summary Centerpoint Hotel Feasibility Report Excerpt Centerpoint at Lockhart Site Plan
I. Hotel Feasibility Summary
Page 1 of 5
12/6/2011 LOCKHART, TEXAS HOTEL PROJECT
SUMMARY FOR THE PROPOSED HOLIDAY INN EXPRESS HOTEL LOCKHART TEXAS. SH 142 AT SH 130: -An analysis of the feasibility of a new, strongly branded Holiday Inn Express Hotel has been performed at this location, with the alternative budget brand Motel 6 also analyzed. It was concluded that a new hotel at this location would be a highly attractive investment for a developer. -The Holiday Express brand was selected as the highest and best use of the site/location because it is the most sought after ‘middle of the market’ limited service hotel brand (based consumer choice, REVPAR performance, and level of investment). -Such a hotel would not only take advantage of increasing population growth in the TX 130/Lockhart area, but also provide the best lodging choice for consumers outside of San Marcos. -Developing a hotel at this site will produce an unleveraged, pretax return on total invested capital of approximately 17%, with a return on equity of over 40%. This is an excellent hotel investment. -A new strongly branded limited service hotel opening in 2013 would be expected to produce performance results as follows:
Occupancy Percent
Year Year Year Year Year Year Year Year Year Year I II III IV V VI VII VIII IX X 63.5% 72.1% 72.6% 72.3% 72.6% 72.3% 72.2% 72.0% 71.8% 71.8%
Project Summary Average $ $ Rate REVPAR
$103.94* $108.00 $115.04 $117.92 $119.68 $120.87 $122.07 $123.29 $124.53 $125.76 $65.96 $77.86 $83.55 $85.23 $86.93 $87.39 $88.08 $88.77 $89.47 $90.28
Total Revenue
CashFlow**
$2,275,230 $1,025,553 $2,685,615 $1,270,937 $2,882,002 $1,396,809 $2,939,643 $1,407,982 $2,998,436 $1,345,942 $3,014,206 $1,316,196