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Proposal for a Market Study <br />Pursuant to our conversation, we are pleased to submit this proposal for services <br />of TS Worldwide LLC dba HVS Consulting & Valuation in connection with the <br />proposed hotel project in Centerville, Minnesota. This letter sets forth a <br />description of the objectives and scope of the assignment, along with the <br />methodology to be employed, an estimate of the time requirements, and a <br />schedule of professional fees. <br />Objective The objective of this assignment is to perform a market study for the purpose of <br />evaluating the market demand, analyzing the economics, forecasting occupancy <br />and average rate (ADR) levels, and projecting income and expense for a Proposed <br />Hotel in Centerville, Minnesota. Our study will also include a recommendation of <br />the size of lodging facility, with the assumption of a midscale or upper-midscale <br />brand such as AmericInn or Comfort Inn. <br />Intended Use and User The market study is being prepared for the use of Apollo Development in <br />of the Engagement connection with internal development decisions. <br />Phase One: To accomplish the objective described above, our work will be conducted in <br />Demand Interviews phases, beginning with demand interviews. Surveys of potential users provide <br />vital information regarding the market potential of proposed facilities. We will <br />have to disclose the nature of our work to area businesses/generators of hotel <br />demand. HVS will identify an appropriate sample of corporate demand generators <br />(major employers and area businesses), and area event centers, if applicable, that <br />reflect primary segments of potential demand: <br />HVS will select various corporate demand generators to contact directly to <br />attain detail on their views of the market. These interviews engage <br />corporate travel departments in conversation regarding their lodging <br />needs, meeting facility needs, impressions of the market, proposed site, <br />and desired accommodations. In addition, we will try to ascertain the <br />number of annual room nights required, average length of stay, and average <br />rate (when this information can be disclosed/quantified). For this phase <br />we will need to disclose that we are working on a hotel market study for a <br />project in Centerville. <br />HVS Consulting and Valuation Services Proposal 2 <br />