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• Minneapolis (Roseville), MN is MARKET POSITION RATIONALE (Continued): An indication of area market growth potential can be found by examining nearby room demand generators such as recently constructed office parks and similar projects currently under development. The Rosedale Corporate Plaza, approximately one (1) mile northeast of the subject property, was recently completed and has already attracted tenants such as Arden Medical Systems and Everest Group, Ltd. In addition, the 110-acre Centre Point Business Park is now being developed just one (1) mile north of the proposed Motel 6 site. RECENT MARKET ASSESSMENT: To a credible third party assessment of historical performance and future market potential for nationally recognized hotels and motels in the Roseville market can be found in the Market Study of the Lodging Market in Roseville Minnesota Executive Summarv: Fe ruary 1986. The Laventhol and Horwath study reports a 1985 occupancy for the three (3) Economy facilities in the area, at 85%. Although it may be suggested that this occupancy data is not current, "lodging demand," according to the same report, was 340,200 room - nights in 1985, and was projected to grow 29,500 room nights to 369,700, in 1987, and 15,800 room/nights to 385,500 in 1988. During this same period, only one additional chain affiliated motel (Comfort Inn with 120 roorns) has opened in the vicinity, in an attempt to capture this increasing demand for lodgin 'Thus, demand was projected to If - outstrip supply by 1987, even after the addition o the Comfort Inn, whic has a theoretical (at 100% occupancy) rooms potential of 43,800, a ninst a cumulative demand growth of 45,300. In addition, the "site analysis" of the & H study suggests that development of an economy motel would be suitable in two (2) locations which are less than three ouarters (3/4) of a mile from the proposed N-lotel 6 site. Potential impact of an add'tional 220 rooms to the existing lodging supply ac:cordin to L & H, is predicted to be less than three (3) occupancy points per year. he L & H recommendation as it relates to development of a Motel 6 is as follows: " .. Our analysis indicated tbaat demand for an economy lodging property presently is tilt: greatest, and therefore, development of this type could be pursued amanediaately. SUNMIARY Demogrnphic and circulation characteristics for the proposed i1,l,jtel 6 site are impressive, placing it ninong the top locations in the upper mid west region. When one considers the impiicnLions of the above stated popula don, employment, traffic counts, visibility, retail sales, etc., and the eompetitive advantage of Motel 6's national identity with 430+ motels and 48,000 guest rooms, the likelihood for development of n highly profitaable unit at this location is significaant. Paige 3 of 4