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Phase Three: Market The following analysis phase will utilize data and information gathered during the <br />Analysis fieldwork phase, along with our extensive library of actual hotel operating <br />statements, financial statistics, area hotel trends, and investor requirements. We <br />will first compose recommendations for the proposed hotel's facilities with the <br />assumption of a midscale or upper-midscale brand such as AmericInn or Comfort <br />Inn. The recommendations will be based on the demands of the local and <br />pertinent regional market and will address the following points: <br />• Room count and room type mix <br />• Meeting and function space <br />• Recreational amenities <br />Based on the above -noted recommendations, we will then perform a supply -and - <br />demand analysis for the competitive market, which typically includes the <br />following steps: <br />Using the occupancy levels and market segmentations of the competitive <br />properties, the number of room nights accommodated in each segment is <br />calculated by multiplying each property's room count by its occupancy, <br />market segmentation, and 365 days, which yields the accommodated - <br />room -night demand. The annual number of room nights occupied per room <br />in each segment is also calculated (room nights occupied per year divided <br />by the room count), and the resulting figure serves as a competitive index. <br />2. Latent demand (unaccommodated and induced demand) is estimated for <br />each market segment. <br />3. Growth rates are projected for each of the market segments. <br />4. The total usable room -night demand, which consists of usable latent <br />demand and accommodated demand, is projected. <br />5. The area's guestroom supply and total room nights available are quantified <br />for each projection year. <br />6. The overall competitive occupancy is calculated for each projection year. <br />Phase Four: Using competitive indexes, the relative competitiveness of each of the area hotels <br />Analysis for Proposed will be evaluated. The proposed subject property will be positioned accordingly <br />Subject Property by demand segment, reflecting the hotel's expected competitiveness across all <br />relevant user groups. This will result in a market- and property -appropriate <br />forecast of segmentation, penetration, and occupancy levels. <br />HVS Consulting and Valuation Services Proposal 4 <br />