City of Maricopa, AZ Market Feasibility Studydocshare02.docshare.tips/files/29121/291216862.pdf · City of Maricopa, AZ Market Feasibility Study ... Expansion of the hotel in future

City of Maricopa, AZMarket Feasibility Study

For more information regarding this report, contact:

Core Distinction Group LLC(612) [email protected]

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Introduction/Objective …………………………………………………..…………………………………………….3

Executive Summary (Conclusions) …………………………………………………………………………………………………………………………4-7Property RecommendationsProperty Type, size, and rate strategyProperty Features, Amenities, and ServicesSleeping Room ConfigurationBrand AffiliationOpening DateEconomic Impact PotentialMaricopa, AZ (Snapshot)

General Market Overview …………………………………………………………………………………………………..8-10General Market Location & Characteristics

Economic Overview ……………………………………………………………………………………………………………11-22PopulationEffective Buying IncomeWorkforce/Employment DistributionMajor EmployersUnemployment/Labor Supply/Wage PressuresEating and Drinking PlacesTransportation InformationContinued Economic Overview Information to follow:* Retail Leakage Opportunities (5 and 15 Mile Radius)* Arizona Profile 2010 Census* Area Development News (2014)

Lodging Demand …………………………………………………………………………………………………………………..23-33Market SegmentationLodging Demand Potential IndexSeasonality of Lodging DemandRate SensitivityFeeder Markets & Unaccommodated DemandEvents and AttractionsCommunity InterviewsBenefits and Challenges

Lodging Supply ……………………………………………………………………………………………………………………..34-58Competitive Hotel PropertiesProjected Average Daily Room Rate & PositioningCompetitive Property PerformanceArizona Extended Stay Rate Survey - 2014STR Data (5 Year Trends)

Financial Projections …………………………………………………………………………………………………………………………59-71Development CostsProjections Year 1Projections Years 1-5Projected Break Even Results

Table of Contents:

* Geographic Location (Maps)

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Introduction

This Market Study report provides statistical support and highlighted narratives to support the conclusions regarding the market area and its ability to support the proposed hotel. This report should be acceptable for external investing and/or lending purposes. Core Distinction Group LLC will be available to answer any questions related to this Market Feasibility Study Report.

This report will present projections for stabilized hotel operation based upon current operating performance in the market area. Occupancy, Average Daily Room Rate, and Sales Revenue projections for the hotel were based upon a detailed review of the field research data. Also, recommendations as to the property type, suggested property size, brand affiliation, services, and amenities were included. These projections and recommendations were based upon the market demand research for the proposed facility.

This consultant from Core Distinction Group LLC met with representatives of the community and the surrounding area to gather information pertinent to the proposed hotel development. Comprehensive research was performed and reviewed regarding the community's economic indicators, competitive lodging supply, and lodging demand generators. CDG performed field research to determine the relationship between the community and proposed facility's lodging supply competitors and its lodging demand generators. Economic indicators were studied to determine the stability and future growth potential of the general market. The research was conducted as a macro and micro market analysis of the Maricopa area and the areas immediately surrounding the proposed hotel to determine their viability to support the proposed hotel.

Core Distinction Group LLC (CDG) has been engaged to provide this Comprehensive Market Feasibility Study Report of the City of Maricopa, Arizona market area. This Market Study provides an overview of information concerning the market area and the factors that would affect the possible development of a hotel facility in this community. This document is written in a format that highlights key information and offers a preliminary indication of this market's ability to support the proposed hotel development.

The following Comprehensive Market Feasibility Study Report will review the proposed development of a hotel in Maricopa, AZ.

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Some special features may be required to attract identified target markets.

Executive Summary

The Property Type recommended for the proposed hotel is an upscale extended stay hotel. This would reflect the research performed in the Community Overview Market Study. Also, this type of hotel would allow the property to be positioned properly at the subject site and would best match the demographics of the competitive set and future Lodging Demand market in the area. It is anticipated that a new, upscale extended stay branded hotel would capture displaced Lodging Demand currently staying in markets surrounding Maricopa, AZ. Additionally, the newness of the hotel should be well received in the marketplace. Its location will be ideal to serve Maricopa and regional markets. This type of hotel would also be capable of adjusting rates to best fit the demand in the market and the seasonality of the area.

The property size of this upscale extended stay hotel was researched to be 125-150 guestrooms in this preliminary Market Feasibility Study. This would position it to be equal to the average room size of the hotels in the competitive set in Chandler. The size would assist the property in achieving the Occupancy projections listed in this report. It is not advisable to over-build in this market at this time. Expansion of the hotel in future years could be considered as the market's Lodging Demand grows. Adjusting the room count will modify Occupancy Performance.

Rate positioning, as previously stated, rate competition for an upscale extended stay branded hotel in this market will be present throughout the year. This rate competition will be dictated by the rate structure of the hotels in the surrounding regional area. With proper rate positioning the hotel should achieve a yield to the immediate market of 150% (Weekday) and the overall region of 90%-100% which is average and would assist in mitigating any rate sensitivity. The developed hotel in this market should mirror the rates of the branded hotels in Chandler or within $10. Negotiated rates with local businesses or demand generators may be discounted and could drive ADR down dependent on rooms allotted to each account. In this region, two major accounts identifying extended stay need are present with a minimum potential of 5,000-10,000 guestroom nights annually. That said, negotiated rates with these businesses for 7+, 14+, and 30+ stays will impact average daily rate (ADR) as a whole for the hotel development. Rate strategies for an extended stay hotel would tier down for each level of extended stay time frame. Example: 7+ rates would be negotiated from $129; 14+ rates would be negotiated from $119; and 30+ $109 or less. These are only examples, these rate structures are typically negotiated through national RFPs with each corporation in the area and fluctuate based on total room nights consumed.

Property features, amenities, and services of the hotel should satisfy the market it is attempting to attract. Features and amenities required by the brand chosen for the proposed hotel should include: * Fitness Center recommended to meet the needs of today's traveler

* Adequate Parking for both commercial and recreational vehicles due to market demand generators.

* Bar/Lounge/Restaurant

* Extended Stay Guestrooms for long term market demand

* Guestrooms offering full kitchens for long term market demand

* Guest Laundry Facilities recommended to meet the needs of long term stay guests

* Complimentary Breakfast to meet the needs of today's traveler

* Evening Social or Evening Restaurant Option to meet the demand of the extended stay client in the market

* Japanese and German Extended Stay Clientele indicating need for menu options appealing to these groups

* Outdoor Recreation Area inclusive of outdoor cooking facilities

* Outdoor Pool and Spa

* Meeting Room for 50-100 people

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The recommended Sleeping Room Configuration should be compatible with the overall Market Segmentation of the area. Since the property's demand appears to be corporate long term stay, the property should offer a selection of King bedded rooms at 40% with a slightly higher percentage of rooms available for double occupancy for shared guestroom need.

Brand Affiliation should be considered for this hotel to enhance its marketability. The brand should position the hotel well in this market. It should be competitive with the Market Segments identified for the hotel. An upscale extended stay hotel brand should be pursued. Potential impact issues should be addressed with pursuing a brand affiliation although these factors do not seem to be relevant in this market. A brand should be successful in Maricopa since this will be the only branded hotel in the market.

The Opening Date for the hotel should be considered a priority as demand generated by the corporate segment in the market is aggressive; delaying opening could result in reduced opportunities to capitalize on current demand generators. Ideally, opening the hotel in late spring 2015 to capture the maximum revenue months of extended stay demand indicated.

Economic Impact Potential: There are multiple economic impacts of building and developing a new hotel in a community. Some direct impact drivers include projected hotel revenue including all rooms' revenues, meeting room revenue, as well as vending/bar revenue. Additionally, payroll paid out to employees hired at the hotel. On average, this size property will create 20-25 full time jobs, part-time employment varies by hotel need and hiring practices. Fiscal impact referring to all taxes collected from the development and operations of the new hotel. Taxes include all sales taxes collected on hotel revenue, as well as all payroll related taxes collected from full-time hotel employees and temporary construction workers. Local governments will also collect new property taxes from the operation of the hotel. Indirect Impact includes all jobs and income generated by businesses that supply goods and services to the hotel. A few examples of businesses that will indirectly benefit from the development of a hotel include suppliers of rooms' related goods (housekeeping supplies, room amenities, etc.), telecommunication vendors (internet, cable, etc.), utility companies, food and beverage suppliers, and other hotel related vendors.

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Maricopa, AZ (Snapshot)

Maricopa, AZ at a Glance (Pinal County):

Maricopa offers residents and businesses the experience of a small-town atmosphere within a short distance to two major metropolitan areas. The City of Maricopa became Arizona’s 88th municipality when it incorporated in October 2003. Since that time, it has been Arizona’s fastest growing community, transforming from a quiet town of under 5,000 residents to a bustling city of more than 46,000. The average household income in Maricopa is $75,000 and is among the highest in the State of Arizona. The local population is also highly educated with 46% of adults possessing a bachelor’s or advanced degree, and 89% having at least some college education.

2013 Population Estimate: 46,140 (Arizona Department of Administration)

Growth and Development:

• Copper Sky Recreation Complex: The grand opening celebration for the City’s Copper Sky Recreation Complex was held in March 2014. Comprised of the 52,000 square foot Copper Sky Multigenerational/Aquatics Center and 98-acre Copper Sky Regional Park, it is the destination for sports, fitness, recreation and leisure activities in Maricopa. It also hosts regional athletic tournaments and community events. With a projected 500,000 visitors in its first year, it has become the center of activity in Maricopa. To take advantage of activity at the complex, 18 acres of highway frontage has been reserved for future commercial development. The City is currently seeking a development partner.• Central Arizona College Maricopa Campus: Central Arizona College (CAC) opened its new Maricopa Campus in January 2013. The first phase of the Maricopa Campus includes more than 76,000 gross square feet. At full build-out, the 217-acre campus is planned to accommodate more than 20,000 students and have a gross square footage of 720,000 feet.• Banner Health: The Banner Health Center is the first major medical facility in Maricopa and opened in May 2012. Made possible through a public-private partnership between the City of Maricopa and Banner Health, the 40,000 square-foot facility provides primary and specialty medical care. Banner has plans to expand the center and its services as local demand requires.• Dignity Health Arizona: The healthcare provider opened an urgent care center in Maricopa in 2013. The company also purchased 18.6 acres in Maricopa with long-term plans for a 34,000 square foot, free-standing emergency hospital.• Maricopa Station: This project is located on a 2.5-acre site at the northeast corner of John Wayne Parkway and Smith-Enke Road and broke ground in October 2014. The plans for Maricopa Station include a 7,800 square foot multi-tenant shops building and 3,300 square foot drive through restaurant.• Estrella Gin Business Park: The Estrella Gin Business Park site is a 50+ acre, city-owned parcel located just west of the intersection of Edison Road and Roosevelt Avenue. Planned to be developed through a public-private partnership, it is the City’s leading priority to spur local economic growth. The goal for the business park is to provide employment opportunities for local residents by allowing expanding businesses to remain in the community and facilitating the relocation of industry to Maricopa. Approximately 40 acres is available for commercial development, anticipated to include a mix of industrial, office and flex space. The property is currently being marketed for lease and build-to-suit opportunities.

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Additional Demand Generators:

• Major employers in the market: Maricopa Unified School District, Walmart, City of Maricopa, Volkswagen Proving Grounds, Nissan Proving Grounds, Pinal Feeding Company, Southern Dunes Golf Club, The Duke at Rancho El Dorado Golf Club, USDA Arid-Land Agricultural Research Center, University of Arizona Maricopa Agricultural Center• USDA Arid-Land Agricultural Research Center: USDA opened its Arid-Land Agricultural Research Center in Maricopa in 2006. The 97,000 square foot research center houses 22 research scientists and nearly 40 research and administrative support personnel.• UA Maricopa Agricultural Center: The mission of the more than 40 person staff at the University of Arizona’s Maricopa Agricultural Center is to develop, deliver, and service the best integrated agricultural technologies for all problems faced by Arizona consumers and producers.• Volkswagen and Nissan operate their North American proving grounds in Maricopa where they put vehicles to the test under extreme heat and sun conditions. In addition to the year-round staff at the proving grounds, a large number of engineers and race teams visit throughout the year.• Maricopa is home to two golf courses – Southern Dunes Golf Club and The Duke at Rancho El Dorado. Southern Dunes’ golf course has been named one of Arizona’s top five courses and hosts US Open qualifying rounds each year. The Duke at Rancho El Dorado has been recognized as one of the top five intermediate priced courses in Arizona, and the most player friendly course in the Phoenix area.

*For more information on the lodging demand generated by each of these facilities, please see the Community Interviews section .

Development Incentives:

• Fast Track Permitting: Recognizing the need for businesses to be able to relocate and expand rapidly and efficiently, the City offers a Fast Track Permitting Program for qualifying projects. The City is committed to providing a business-friendly environment and is continuously looking to further streamline and simplify its governmental permitting process.• Additional Depreciation: To encourage new capital investment, Arizona provides accelerated depreciation schedules for commercial personal property. Depreciation schedules for most equipment classes provide for depreciation down to 2.5% of original value, thus virtually eliminating the tax liability.• Development Agreements: These agreements generally give some type of benefit to the developer, such as a repayment for public infrastructure improvements through sales tax rebates. Arizona municipalities are restricted to providing only tax incentives consisting of reimbursements for public infrastructure and may not exceed or otherwise be disproportionate to the capital development costs or jobs created through the projects. The City of Maricopa has, in the past, entered into development agreements and is willing to explore this option with any business bringing a high level of economic benefit to the community.

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General Market Location

General Market Overview

Maricopa, AZ is located in northwest Pinal County and is surrounded by several smaller communities within short driving distance. These cities offer a variety of local support for retail, dining options, and community. Nearest city with pop. 200,000+: Chandler, AZ (25.0 miles, pop. 246,197). Nearest city with pop. 400,000+: Mesa, AZ (35.2 miles, pop. 450,310). Nearest city with pop. 1,000,000+: Phoenix, AZ (34.6 miles, pop. 1,485,751).

The general market for this hotel is Maricopa, Arizona. However, this market is broader than just Maricopa and includes areas within Pinal County.

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Source: US Census Bureau

Economic OverviewThis section describes the preliminary general economic conditions observed in this area through various research sources.

With an estimated 46, 140 residents as of 2013, Maricopa is the second most populous incorporated city in Pinal County and eighteenth most populous in Arizona. Maricopa forms part of the Phoenix metropolitan area. Pinal County is located in the central part of Arizona. As of the 2010 census, the population was 375,770, making it the third-most populous county in Arizona.

Population

Pinal County 2010 Census Data (Including 2013)

Population, 2013 estimate 389,350

Population, 2010 (April 1) estimates base 375,770

Female persons, percent, 2013 47.8%

White alone, percent, 2013 (a) 83.3%

Black or African American alone, percent, 2013 (a) 4.8%

American Indian and Alaska Native alone, percent, 2013 (a) 6.8%

Asian alone, percent, 2013 (a) 1.9%

Native Hawaiian and Other Pacific Islander alone, percent, 2013 (a)

Population, percent change, April 1, 2010 to July 1, 2013 3.60%

Population, 2010 375,770

Persons under 5 years, percent, 2013 6.4%

Persons under 18 years, percent, 2013 25.0%

Persons 65 years and over, percent, 2013 17.0%

0.4%

Two or More Races, percent, 2013 2.8%

Hispanic or Latino, percent, 2013 (b) 29.0%

White alone, not Hispanic or Latino, percent, 2013 58.2%

Living in same house 1 year & over, percent, 2008-2012 79.6%

Foreign born persons, percent, 2008-2012 10.1%

Language other than English spoken at home, pct. age 5+, 2008-2012 22.6%

High school graduate or higher, percent of persons age 25+, 2008-2012 84.2%

Bachelor's degree or higher, percent of persons age 25+, 2008-2012 18.3%

Mean travel time to work (minutes), workers age 16+, 2008-2012 31.3

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Source: US Census Bureau, Census 2010. Esri Forecasts for 2014/2019

Effective Buying IncomeHouseholds by Income 2014 Est. 2019

Median Household Income $55,684 $63,612Average Household Income $67,097 $76,603

<$15,000 9.1% 7.8%$15,000-$24,999 10.5% 7.0%$25,000-$34,999 8.5% 6.4%$35,000-$49,999 12.8% 11.8%$50,000-$74,999 27.4% 26.0%$75,000-$99,999 16.5% 19.9%$100,000-$149,999 10.2% 14.1%$150,000-$199,999 3.5% 4.8%$200,000+ 1.4% 2.1%

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Source: 2014 Dun & Bradstreet, Inc. Esri Total Residential Population forecasts for 2014.

5 Mile

Total Employees: 9,236

Workforce/Employment Distribution

Arts, Entertainment & Recreation

Transportation & Warehousing

Finance & Insurance

General Merchandise Stores

1.0%

7.9%

1.4%

2.9%

3.3%

1.5%

Educational Services

Health Care & Social Assistance

5.6%

Employment leaders within Maricopa area include: Public Administration (38.7%); Arts, Entertainment, and Recreation (8.2%); Retail Trade (7.9%); Administration/Support/Waste Management and Remediation (6.9%); and Professional/Scientific and Tech Services (5.6%)

1.9%

2.7%

2.2%

5.0%

5.1%

8.2%

3.1%

5.2%

6.9%

Total Residential Population: 44,398

by NAICS Codes Percent

Data for all businesses in area of Maricopa within:

Professional, Scientific & Tech Services

Administrative & Support & Waste Management & Remediation

1.0%

2.2%

38.7%

3.1%

Public Administration

Accommodation & Food Services

Food Services & Drinking Places

Other Services (except Public Administration)

Agriculture, Forestry, Fishing & Hunting

Securities, Commodity Contracts & Other Financial

Real Estate, Rental & Leasing 1.9%

Central Bank/Credit Intermediation & Related Activities

Food & Beverage Stores

Construction

Manufacturing

Wholesale Trade

Retail Trade

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Note: Areas marked with an asterisk (*) are outside of the City limits but within the City's planning area

Unemployment

Fry's Food Store

Volkswagen Proving Grounds

Ak-Chin Farms

Basha's

Maricopa, AZ Major Employers

Employees (FT)

760

650

Wage Pressures

Since 2005 the unemployment rate in Maricopa, Arizona has ranged from 4.0% in May 2007 to 14.8% in July 2009. The current unemployment rate for Maricopa is 7.0% in August 2014.

Labor SupplyThe labor supply is felt to be above average to support a hotel development. The hotel could draw employment from the broad geographic area of Pinal County or entice commuting community members to stay closer to home for work rather than commuting to cities outside Maricopa, AZ.

Legacy Traditional School 76

300

283

200

200

89

85

Company Name

Harrah's AK-Chin Casino Resort

Maricopa Unified School District

Walmart

Maricopa City Office

Electrical District 3* 57

Univ. of Arizona Maricopa Agricultural Center* 48

Duke at Rancho El Dorado 47

Scott's Miracle Gro 39

75

71

Pinal Feeding Co Inc.

Sequoia Pathway Academy

USDA Arid-Land Agricultural Research Center* 69

Southern Dunes Golf Club* 65

Ace Hardware 36

Wage pressures were not reported to be a concern in attracting Service employees for a hotel. Wage competition was indicated as average.

Banner Health Center 34

Arizona Castings Inc.* 58

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Air Transportation

Continued Economic Overview Information to follow:* Retail Leakage Opportunities (5 and 15 Mile Radius)* Arizona Profile 2010 Census* Area Development News (2014)

Eating and Drinking Places

State Route 287

State Route 347

State Route 587 State Route 177

State Route 84

State Route 79

Interstate 10

State Route 77

U.S. Route 60

The nearest major airport is Phoenix Sky Harbor International Airport (PHX / KPHX). This airport has international and domestic flights from Phoenix, Arizona and is 34 miles from the center of Maricopa, AZ. Another major airport is Phoenix-Mesa Gateway Airport (AZA / KIWA), which has domestic flights from Mesa, Arizona and is 36 miles from Maricopa, AZ.

State Route 87 State Route 387

Major Highways Pinal County Interstate 8

Amtrak - Maricopa is one of 17 Amtrak stations in Arizona. The Maricopa station, serviced by the Sunset Limited and Texas Eagle routes, is the closest train station to Phoenix (30 miles south). The Station Building (with waiting room) is located at 19427 North John Wayne Parkway, Maricopa, AZ 85139.

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Yogurt JungleFirehouse SubsDomino’s Pizza

Brooklyn Boys Italian

Great WallHeadquarters Café

Helen’s Kitchen

Barro’s PizzaPizza HutPlaza Bonita Mexican RestaurantSay SushiSonic Drive-InStarbucks Coffee (coming soon)

SubwaySunrise CaféTaco BellTacos N More

Arby’sPeñascos Mexican Restaurant

Papa Murphy’s Pizza

Panda ExpressOshay’sNative New YorkerMcDonald’sLong John Silver’sLittle CaesarsKFCJack in the BoxHoneycutt Coffee Company

Cilantro’s Mexican CocinaChipotle (coming soon)

Carl’s Jr.

Bead & Berry Coffee House

Aliberto’s

Papa John’s Pizza

Source: Esri and Dun & Bradstreet 2013

Definition of 'Leakage' A situation in which capital, or income, exits an economy, or system, rather than remains within it. In economics, leakage refers to outflow from a circular flow of income model. In a two sector model, all individual income is sent back to employers when goods and services are purchased, and back to employees through wages and dividends. Leakage occurs when income is taken out through taxes, savings and imports. In retail, leakage refers to consumers who spend money outside of the local market. Leakage may also refer to the release of private information prior to it being released to the public.

Data Note: Supply (retail sales) estimates sales to consumers by establishments. Sales to businesses are excluded. Demand (retail potential) estimates the expected amount spent by consumers at retail establishments. Supply and demand estimates are in current dollars. The Leakage/Surplus Factor presents a snapshot of retail opportunity. This is a measure of the relationship between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents 'leakage' of retail opportunity outside the trade area. A negative value represents a surplus of retail sales, a market where customers are drawn in from outside the trade area. The Retail Gap represents the difference between Retail Potential and Retail Sales.

Retail Market Potential5 and 15 Mile Radius of Maricopa, AZ

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2013 Population2013 Households2013 Median Disposable Income2013 Per Capita Income

Industry SummaryDemand

(Retail Potential)Supply

(Retail Sales)Retail Gap Leakage/Surplus

Factor

Total Retail Trade and Food & Drink $331,687,227 $52,974,307 $278,712,920 72.5Total Retail Trade $299,140,214 $47,339,025 $251,801,189 72.7Total Food & Drink $32,547,013 $5,635,282 $26,911,731 70.5

Industry GroupDemand



Factor

General Merchandise Stores $57,965,704 $76,763 $57,888,941 99.7Motor Vehicle & Parts Dealers $58,343,762 $4,391,235 $53,952,527 86.0Automobile Dealers $50,139,402 $1,140,603 $48,998,799 95.6Other General Merchandise Stores $37,867,706 $0 $37,867,706 100.0Gasoline Stations $30,738,234 $1,216,049 $29,522,185 92.4Food Services & Drinking Places $32,547,013 $5,635,282 $26,911,731 70.5Food & Beverage Stores $50,720,069 $24,142,130 $26,577,939 35.5Grocery Stores $48,438,995 $23,802,715 $24,636,280 34.1Department Stores Excluding Leased Depts. $20,097,998 $76,763 $20,021,235 99.2Health & Personal Care Stores $20,062,206 $1,928,480 $18,133,726 82.5Clothing & Clothing Accessories Stores $17,559,402 $1,935,204 $15,624,198 80.1Nonstore Retailers $21,485,622 $6,067,766 $15,417,856 56.0Electronic Shopping & Mail-Order Houses $18,080,954 $4,112,374 $13,968,580 62.9Limited-Service Eating Places $15,258,202 $1,560,714 $13,697,488 81.4Full-Service Restaurants $15,115,535 $3,507,028 $11,608,507 62.3Clothing Stores $12,479,312 $1,769,044 $10,710,268 75.2Miscellaneous Store Retailers $10,054,612 $1,519,881 $8,534,731 73.7Electronics & Appliance Stores $9,081,341 $1,307,306 $7,774,035 74.8Bldg Materials, Garden Equip. & Supply Stores $9,260,770 $1,826,215 $7,434,555 67.1Bldg Material & Supplies Dealers $8,539,905 $1,826,215 $6,713,690 64.8Sporting Goods, Hobby, Book & Music Stores $7,115,982 $931,163 $6,184,819 76.9Sporting Goods/Hobby/Musical Instr Stores $5,731,823 $554,086 $5,177,737 82.4Furniture & Home Furnishings Stores $6,752,510 $1,996,832 $4,755,678 54.4Other Miscellaneous Store Retailers $5,168,641 $1,148,367 $4,020,274 63.6Office Supplies, Stationery & Gift Stores $3,033,231 $296,058 $2,737,173 82.2Home Furnishings Stores $2,700,510 $99,741 $2,600,769 92.9Shoe Stores $2,508,279 $0 $2,508,279 100.0Other Motor Vehicle Dealers $3,077,822 $600,266 $2,477,556 67Auto Parts, Accessories & Tire Stores $5,126,538 $2,650,366 $2,476,172 31.8Jewelry, Luggage & Leather Goods Stores $2,571,811 $166,160 $2,405,651 87.9Furniture Stores $4,051,999 $1,897,091 $2,154,908 36.2Direct Selling Establishments $2,338,375 $927,152 $1,411,223 43.2Used Merchandise Stores $1,428,857 $75,456 $1,353,401 90.0Special Food Services $1,213,222 $0 $1,213,222 100.0Beer, Wine & Liquor Stores $1,158,732 $0 $1,158,732 100.0Book, Periodical & Music Stores $1,384,159 $377,077 $1,007,082 57.2Specialty Food Stores $1,122,341 $339,415 $782,926 53.6Lawn & Garden Equip & Supply Stores $720,866 $0 $720,866 100.0Florists $423,883 $0 $423,883 100.0Drinking Places - Alcoholic Beverages $960,055 $567,540 $392,515 25.7Vending Machine Operators $1,066,294 $1,028,240 $38,054 1.8

Summary Demographics (5 Mile Radius)

$23,140$49,84915,37546,674

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2013 Population2013 Households2013 Median Disposable Income2013 Per Capita Income

Industry SummaryDemand



Factor

Total Retail Trade and Food & Drink $725,763,106 $188,429,778 $537,333,328 58.8Total Retail Trade $655,594,950 $152,202,852 $503,392,098 62.3Total Food & Drink $70,168,155 $36,226,927 $33,941,228 31.9

Industry GroupDemand



Factor

General Merchandise Stores $125,156,628 $88,135 $125,068,493 99.9Motor Vehicle & Parts Dealers $126,567,874 $18,381,778 $108,186,096 74.6Automobile Dealers $108,352,653 $7,746,839 $100,605,814 86.7Other General Merchandise Stores $82,152,849 $0 $82,152,849 100.0Food & Beverage Stores $110,613,161 $56,522,115 $54,091,046 32.4Grocery Stores $105,629,676 $52,341,488 $53,288,188 33.7Department Stores Excluding Leased Depts. $43,003,778 $88,135 $42,915,643 99.6Health & Personal Care Stores $46,148,577 $4,691,331 $41,457,246 81.5Nonstore Retailers $50,610,171 $11,236,213 $39,373,958 63.7Electronic Shopping & Mail-Order Houses $42,533,816 $8,192,033 $34,341,783 67.7Food Services & Drinking Places $70,168,155 $36,226,927 $33,941,228 31.9Clothing & Clothing Accessories Stores $37,433,882 $6,114,407 $31,319,475 71.9Full-Service Restaurants $32,674,353 $7,533,456 $25,140,897 62.5Gasoline Stations $65,970,543 $40,941,405 $25,029,138 23.4Clothing Stores $26,488,471 $5,154,327 $21,334,144 67.4Miscellaneous Store Retailers $22,377,110 $3,442,191 $18,934,919 73.3Electronics & Appliance Stores $19,785,012 $1,611,153 $18,173,859 84.9Bldg Materials, Garden Equip. & Supply Stores $21,574,330 $3,407,708 $18,166,622 72.7Bldg Material & Supplies Dealers $19,844,930 $3,407,708 $16,437,222 70.7Sporting Goods, Hobby, Book & Music Stores $14,761,387 $2,751,043 $12,010,344 68.6Furniture & Home Furnishings Stores $14,596,276 $3,015,372 $11,580,904 65.8Sporting Goods/Hobby/Musical Instr Stores $11,938,254 $2,113,325 $9,824,929 69.9Other Miscellaneous Store Retailers $11,589,296 $2,815,990 $8,773,306 60.9Auto Parts, Accessories & Tire Stores $11,343,216 $4,336,649 $7,006,567 44.7Office Supplies, Stationery & Gift Stores $6,728,353 $523,900 $6,204,453 85.6Furniture Stores $8,613,677 $2,755,061 $5,858,616 51.5Home Furnishings Stores $5,982,599 $260,311 $5,722,288 91.7Limited-Service Eating Places $33,062,355 $27,757,323 $5,305,032 8.7Shoe Stores $5,277,907 $0 $5,277,907 100.0Jewelry, Luggage & Leather Goods Stores $5,667,504 $960,080 $4,707,424 71.0Direct Selling Establishments $5,759,469 $1,525,659 $4,233,810 58.1Used Merchandise Stores $3,020,137 $102,301 $2,917,836 93.4Book, Periodical & Music Stores $2,823,132 $637,719 $2,185,413 63.1Special Food Services $2,417,620 $333,805 $2,083,815 75.7Lawn & Garden Equip & Supply Stores $1,729,399 $0 $1,729,399 100.0Drinking Places - Alcoholic Beverages $2,013,827 $602,342 $1,411,485 54.0Florists $1,039,324 $0 $1,039,324 100.0Vending Machine Operators $2,316,886 $1,518,522 $798,364 20.8Beer, Wine & Liquor Stores $2,544,219 $1,823,242 $720,977 16.5Other Motor Vehicle Dealers $6,872,005 $6,298,290 $573,715 4Specialty Food Stores $2,439,266 $2,357,384 $81,882 1.7

Summary Demographics (15 Mile Radius)

$24,215$43,73531,13585,307

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Source: City of Maricopa November 2014

The City of Maricopa has issued a Request for Statement of Qualifications (RSOQ) seeking a qualified development team that has the experience, financial strength and capacity to transform its Copper Sky Commercial Site into a high-quality mixed-use destination that complements the Copper Sky Recreation Complex and delivers significant social and economic impact to the community. The approximately 18-acre city-owned site offers great visibility and more than 1,100 feet of frontage on SR 347, Maricopa's main retail corridor and north-south connection to I-10 and I-8. The adjacent 120-acre Copper Sky Recreation Complex opened in March 2014 and is a year-round destination for sports, fitness, recreation, and leisure activities. With a projected 500,000 visitors in its first year, it has quickly become the center of activity in Maricopa.

City Issues RSOQ Seeking Development Partner for

Copper Sky Commercial Site

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Source: City of Maricopa October 2014

Vintage Partners and the City of Maricopa hosted a groundbreaking celebration for Maricopa Station this morning. Located at the northeast corner of John Wayne Parkway and Smith-Enke Road, plans for this exciting new project include a 7,800 square foot multi-tenant shops buildings and 3,300 square foot drive through restaurant.

Walter Crutchfield, Partner at Vintage Partners, kicked off the event by acknowledging the excitement within the community as vehicles drove by honking. Monty Ortman, longtime developer and fellow Partner at Vintage Partners, reminisced about his earliest experiences developing land in Maricopa more than 29 years ago and said he looks forward to another 29 successful years. Mayor Christian Price spoke about the complexity of commercial development and the many partnerships that must come together to get a project off the ground. Vintage Partners and City of Maricopa representatives then gathered with shovels and officially broke ground on the project.

Maricopa Station Development Breaks Ground

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Source: City of Maricopa May 2014

Maricopa Works to Attract Retailers and Developers

at ICSC 2014 RECon

Recently, a group of City of Maricopa representatives consisting of Vice Mayor Edward Farrell, Councilmember Marvin L. Brown, City Manager Gregory Rose and Economic Development Specialist Denyse Airheart traveled to the International Council of Shopping Centers (ICSC) 2014 RECon convention in Las Vegas. RECon is the world’s largest retail real estate industry event, attracting more than 33,000 retailers, developers, brokers and exhibitors.

The City’s participation at RECon is a key component of its strategy to aggressively target and recruit businesses. At the convention, City leadership and staff worked to sell Maricopa as a destination for retailers to establish or expand their operations. The group met with more than thirty retailers and real estate developers to discuss a range of opportunities, from establishing a presence in Maricopa to identifying the best locations within the city.

“Retailers and developers are increasingly looking at Maricopa as a location for business, and we must actively sell the benefits of locating in Maricopa,” said Vice Mayor Farrell. “Investors seek population growth, population within a trade area, median household income and rooftop growth numbers when making a decision to enter a new market.”

“The conference allows us to tout the Maricopa story and educate nationally branded retailers on the city’s location, residents and recent projects,” said City Manager Rose. “Within the past few years, Maricopa has seen the arrival of Banner Health, Dignity Health, Central Arizona College’s Maricopa Campus, the new City Hall building and City Center complex, and most recently the Copper Sky Recreation Complex.”

Councilmember Brown believes Maricopa is poised to enter a new era of growth that will have a profound impact on the city’s future. “Maricopa is on the verge of many exciting changes that will enhance quality of life, draw new residents, and attract investment from retailers and developers looking to take part in our city’s growth.”

For questions, contact the City of Maricopa Economic Development Department at (520) 316-6990.

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20%

50%

10%

20%

100%

Market Segmentation Projection for Maricopa, AZ are as follows:

Negotiated ESSOC

Source: Core Distinction Group LLC

Lodging Demand

Identifying which segments have the potential to produce 80 percent of a hotel’s revenue is imperative to success of developing these segments to ensure your hotel is achieving fair market share. This starts with understanding the market in which any given hotel operates. A fundamental understanding of the competitive environment, key economic drivers and historical trends is essential to understanding which market segments are relevant. The two main market segments are Transient and Group. However, these can be further segmented depending on each hotel’s individual trading area and feeder markets. Examples of these are as follow: Transient Segments: Rack, Corporate, Government and Seniors etc. Group Segments: Corporate, Association and Sports etc. At this time, the proposed hotel should experience the same Market Segmentation as the overall market. The proposed hotel in Maricopa would be the newest hotel in the immediate regional area. The proposed hotel would be positioned to serve a wide variety of Lodging Demand. Also, as an upscale extended stay hotel, it would be able to flex rates and services to accommodate a full range of Lodging Demand identified for this market.

This section of the report is a brief overview of the Lodging Demand highlights identified in this market.

Negotiated

Transient Leisure

Transient Group

TOTAL

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Company Parties, Awards Dinners, and Celebrations

Social/Leisure Markets

Regional Shopping

SMERF (Social, Military, Education, Religious, and Fraternal)

TT

AverageAbove

AverageEvents & FestivalsArea Sites, Entertainment, and General Tourism

Outdoor Recreation

G

Average

TT

Average

Area Recreation

T, E, G

T = TransientE = Extended

G = Group

T, G, E

AverageAmateur/Youth Sports

As described in the above chart, the overall market potential appears to be above average and growing. Additionally, the development of a hotel in the city has the potential to encourage new areas of growth in the market.

G

Corporate Above

Above

Average

T, G

T, E

Market Segmentation Profiles

AverageAbove

Above

Above (Growing)

Above

AverageAbove

Average

AgricultureT

Average

Utilities

Maricopa, AZ

Demand Potential

InsuranceT

T, E

Average

AverageAssociation Groups

T, G

Above

Distressed Social-Interim HousingAverage (Growing)

Below


G

Relocation-Real EstateT

T, E

Average

Average

TE, G

Association

Vendors & Suppliers to Local Market

GovernmentHealth Care

Entertainment

DistributionAbove

AverageAverage

TReal Estate

Education

Meetings and Seminars

Training Groups

Above

Inventory and Auditing Companies

Highway Travelers T

Corporate/Commercial Markets

Below, Average, Above

Average

T, E

AverageAverage

T, G, E

ManufacturingConstruction

T, E, GT, E, G

T

TT

TT

T, E

T, E, G

Professional Services

TransportationRetail/Commercial

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Seasonality of Lodging Demand

January February March

3,875 3,500 3,87565% 80% 85%

2,519 2,800 3,294119.00 129.00 129.00$299,731 $361,200 $424,894

April May June

3,750 3,875 3,75070% 65% 60%

2,625 2,519 2,250119.00 109.00 109.00$312,375 $274,544 $245,250

July August September

3,875 3,875 3,75055% 55% 60%

2,131 2,131 2,25099.00 99.00 109.00

$210,994 $210,994 $245,250

October November December TOTAL

3,875 3,750 3,875 45,62565% 70% 60% 65.7%

2,519 2,625 2,325 29,988109.00 109.00 109.00 $93.65$274,544 $286,125 $253,425 3,399,325Total Revenue

It should be noted that the hotels used in this seasonality analysis are all from outside of Maricopa, in the neighboring community of Chandler. The market's Seasonality of Lodging Demand patterns appear above average. Traditional higher occupancy nights during the week are Tuesdays and Wednesdays. On weekends, occupancy is traditionally higher on Saturdays, yet within this comp set Fridays and Saturdays are fairly even for demand. The weakest nightly occupancy is on Sundays. This pattern should be representative of what we could expect at this location in Maricopa as well. Capitalizing on extended stay 7+ business will increase overall weekend results.

Average Daily RateTotal Occ. Rooms

3rd Quarter (July-Sept)



Lodging Occupancy %

Total Revenue

Average Daily Rate

Lodging Rooms AvailableLodging Occupancy %

Total Occ. Rooms

Lodging Rooms Available

4th Quarter (Oct-Dec)


Total Revenue

Total Revenue

A Seasonality of Lodging Demand analysis was performed. This demand analysis is based on general observations of the surrounding market area and the overall Arizona market area.

Lodging Occupancy %

Lodging Occupancy %

1st Quarter (Jan-Mar)


2nd Quarter (Apr-June)


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Rate Sensitivity

Feeder Markets

Unaccommodated Lodging Demand

December:Merry Copa Holiday Festival - December 6, 2014; Holiday Homes on Parade - December 8 thru 18, 2014

Misc.: 2nd Saturday Market - Second Saturday of Every Month - October thru May

June: Movies in the Park - June 14, 2014

July: Great American BBQ - July 4, 2014

August:

September: Concerts in the Park - September 5, 12, 19 & 26, 2014

October:Stagecoach Days October 11 thru 26, 2014; 2nd Annual Mud Run - October 18, 2104; MHS Hispanic Heritage Night - October 21, 2014; 4th Annual Historical Society Golf Tournament - October 25, 2014; Mysterious Mansion Mayhem - October 29, 2014

Events and Attractions(The events/attractions listed have the potential to be demand generators for leisure transient business)

This market should have low to average rate sensitivity. Traditionally, the social/leisure market will be more rate sensitive than the corporate/commercial markets. This pattern should be represented in the Maricopa market. There may be additional ADR (Average Daily Rate) opportunities as well during peak demand periods when festivals and city events bring more travelers to the market creating demand to force ADRs higher than average. Traditionally, social/leisure/group rates will be discounted on weekends with special rates and packages for 10 or more guestrooms utilized. At this location a group may also be considered as 5 or more guestrooms utilized for a period of time.

Unaccommodated Lodging Demand may be occurring in this market primarily due to the demand in the market versus lack of lodging available in the community. A secondary definition of Unaccommodated Lodging Demand is demand by consumers desiring to stay in other markets but having to stay in Maricopa or other surrounding markets due to lack of Lodging Supply in the primary market desired. This type of Unaccommodated Lodging Demand does not currently appear to occur in Maricopa, primarily due to the number of lodging facilities in the Phoenix Metro Area. Yet, some of the smaller communities surrounding Maricopa could affect this Lodging Demand potential as they require lodging accommodation for their visitors as well.

The Feeder Markets for this hotel will be regional and local. Social/Leisure feeder markets tend to be generated from the region. Typical Corporate/Commercial market segments tend to be more national or international yet this market may not see this type of business in the immediate future.

Maricopa Events (2014)January:

February:

March: Salsa Festival - March 29, 2014

April:

May: Movies in the Park - May 3, 17 & 31, 2014

November: Art on the Veranda - November 8, 2014

Fishing Derby - April 5, 2014; Maricopa Easter Egg Hunt - April 19, 2014; Easter Brunch and Bowl - April 20, 2014; Concert in the Park - April 25, 2014

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The Sonoran Desert National Monument contains more than 487,000 acres of Sonoran Desert landscape. The Sonoran Desert is the most biologically diverse of the North American deserts, and the monument exemplifies this desert setting. The most striking aspect of the plant community within the monument is the extensive saguaro cactus forest. The monument contains three distinct mountain ranges, the Maricopa, Sand Tank and Table Top Mountains, as well as the Booth and White Hills, all separated by wide valleys. The monument is also home to three congressionally designated wilderness areas, many significant archaeological and historic sites, and remnants of several important historic trails.

Arizona Soaring rides are given over the beautiful Sierra Estrella Mountains where passengers can enjoy views of the undisturbed and natural desert environment. This area is also home to many hawks and other soaring birds so it is an excellent opportunity to see them in their true element. All of our flight staff are FAA certified flight instructors with many years of experience. Impromptu hands-on instruction is possible for those with flying aspirations. Your ride can be as thrilling or as relaxing as you like and for the truly adventurous full-on aerobatic rides are also available.

Sprawling across more than 320 acres, Ak-Chin Southern Dunes Golf Club provides a welcoming, laid-back ambiance; a place where the world melts away and the game of golf becomes the focus. Amid uninhibited, 360-degree views of Arizona’s magnificent desert expanses this world-class, Troon Golf-managed club offers impeccable course conditioning, unmatched playability and superlative customer service, thus ensuring an unparalleled round of sensational Southwestern golf.

The Copper Sky Regional Park encompasses 98 acres, offering endless opportunities for fitness, fun and leisure. The park includes: A five-acre fishing lake stocked with bass, rainbow trout, catfish, bluegill and white amur; a special event amphitheater surrounded by 9 acres of lawn; two interactive playgrounds; six shaded ramadas with BBQ grills and picnic tables, plus one 5000 sq. ft. group ramada; A dog park with separate areas for active and timid dogs; eight multi-purpose sports fields (four are lighted fields); three lighted softball fields; one full-size lighted baseball field; two enclosed batting cages with pitching mounds; two lighted tennis courts; a lighted skate plaza; two lighted basketball courts; two lighted sand volleyball courts; two regulation horseshoe pits. More detail on Copper Sky to follow.

Pacana Park is the City's first public park. Pacana Park spans more than 22 acres of land with a pristine 2.25 acre lake that is home to various fish including catfish and blue gills.

The Duke at Rancho El Dorado Named one of the top 20 courses to play in Arizona, The Duke is a superb choice. With its inviting fairways, meticulous maintenance and exquisite cuisine, The Duke is a model of perfection for the golfer who enjoys Resort golf and pristine accommodations.

The Him-Dak Eco Museum was established to collect, analyze, preserve, protect, promote and teach various aspects of the Ak-Chin heritage, culture and communication between generations. Tribal crafts, exhibits and photographs of the Ak-Chin people are displayed. The Museum is distinguished from a traditional museum, in that land and territory replace the museum building, and the residents of the area take on the role of curator and public. This museum acts as an exhibit and storage area that reflects both prehistoric and local items from families that are housed here.

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Community Interviews

In speaking with the Interim Resident Director at the University of Arizona Maricopa

Agricultural Center, he indicated they have groups in for meetings approximately 50-150 per year. Currently they utilize lodging in Chandler due to proximity to Maricopa as well as negotiated rates. When asked if Maricopa would benefit from a newer branded hotel he indicated support as the city currently does not have any lodging options and the casino hotel is often filled. Amenities recommended included breakfast, pool, exercise facility, and a dining option.

In speaking with the Center Director at USDA Arid-Land Agriculture Research Center, he indicated they occasionally have overnight accommodation need approximately 50-100 per year for meetings. Currently they either utilize the Harrah's Ak Chin Casino Resort or hotels in South Phoenix/Chandler. When asked if Maricopa would benefit from a newer branded hotel he indicated support as the city is large enough to sustain a hotel, they have limited apartment space in the community, and a Wal-Mart. Amenities recommended included breakfast and meeting space possibly a Holiday Inn Express or LaQuinta type product would fit well.

In speaking with the Chief Operating Officer of the Maricopa Chamber of Commerce, she indicated people come to their offices for information about the community, wedding business, and casino overflow. Currently she recommends the local B&B, Harrah's Ak-Chin Casino Resort Hotel, and even hotels in Chandler and Casa Grande. When asked if Maricopa would benefit from a newer branded hotel she indicated support as it would benefit the entire community. Amenities recommended included extended stay guestrooms and meeting space for 15-125 people. Additional demand indicated included college as they do not currently have a dorm for students, Harrah's Casino overflow, New Recreation Center, Dunes Golf Course, and local area events/festivals.

In speaking with a Council Member at the City of Maricopa, he indicated from time to time they have auditors in as well as business development groups coming into the city needing accommodations. Currently they utilize the Harrah's Ak-Chin Casino Resort Hotel or extended stay hotels in Chandler. When asked if Maricopa would benefit from a newer branded hotel he indicated support as the only hotel nearby is Harrah's Ak-Chin Casino Resort, no hotels in Maricopa proper. Amenities recommended included an exercise room and restaurant. Additional demand generators indicated included New Recreation Center and Entertainment Complex.

In speaking with the General Manager of The Duke at Rancho El Dorado Golf Club, he indicated they have overnight accommodation requests during their season from December through April specifically as their facility is a destination golf course. Currently he recommends the nearest Harrah's Ak-Chin Casino Resort Hotel or hotels in Chandler. When asked if he felt Maricopa would benefit from a newer branded hotel he was in support as there are currently no hotels in the city. Amenities recommended included pool, fitness center, upscale guestrooms, and extended stay suites. Size recommendation indicated from 100-250 guestrooms. Additionally, he indicated an opportunity for the golf course to offer packages in conjunction with a new hotel to drive business.

In speaking with a Partner and Senior Project Manager at the Boyer Company, he indicated they have project managers coming in monthly approximately two a month who stay in Phoenix close to the airport at Marriott hotels. When asked if he felt Maricopa would benefit from a newer branded hotel he indicated support as development would draw more people to the community in general. Amenities recommended included pool and breakfast area, something similar to a Fairfield Inn.

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In speaking with a Council Member at the City of Maricopa, she indicated they have lobbyists or site inspectors coming in 6-10 times per year that have overnight accommodation need. Currently they stay at the Harrah's Ak-Chin Casino Resort Hotel due to proximity to their offices. When asked if Maricopa would benefit from a newer branded hotel she indicated strong support as there is a great need for lodging in the area due to local businesses, families, the Multi-Gen Center and Regional Park, as well as the Amtrak Train Route through town. Amenities recommended included fitness center, restaurant, and meeting space for up to 300 people.

In speaking with the General Manager at Volkswagen Arizona Proving Grounds, he indicated they have a tremendous need for lodging from their facility. He indicated they have support and engineers coming in from mid-April through October approximately 2,000 people looking for lodging who typically stay from a few days up to 30+; the number of rooms needed between November through March is less potentially 500 or less during that timeframe. Additionally, he indicated they are currently undergoing an expansion at their facility adding larger workshops and office space. This expansion is forecasting a 20%-30% growth at their facility, which may indicate more room nights needed. Currently they stay at the Sheraton Wild Horse Pass Resort and Spa or the Chandler area in general. They have stayed in Casa Grande but many of their clients prefer staying in the Phoenix Metro area. Currently they have negotiated pricing at the Sheraton which also offers a hospitality room for socializing, large refrigerators, and grilling available for outdoor cooking. They approached the local Harrah's Ak-Chin Casino Resort for a negotiated rate but were turned down due to needing rooms for the gamblers to stay in. When asked if he felt Maricopa would benefit from a newer branded hotel there was strong support as the population of the city is growing, there may be a need for other families and events in town and there is a strong need from their facilities. Amenities recommended included dinner options, pool, breakfast, exercise facilities, outdoor grilling, social space, and extended stay suites with full kitchens.

In speaking with the Chief Financial Officer at Central Arizona College, he indicated they have 5 campuses, their main campus in Coolidge does have a dorm the others do not and may have need for students or their families from time to time. When asked if Maricopa would benefit from a newer branded hotel he indicated support as the only nearby hotel is Harrah's Ak-Chin Casino Resort and they are often full. Amenities recommended included extended stay lodging with monthly or weekly rates offered. Additionally, he indicated the college has purchased 208 acres of land for expansion and is utilizing 45 acres for phase one.

In speaking with the Assistant Dean of Workforce Development at Central Arizona College, she did not indicate specific need for hotel accommodations at this time. However, when asked if Maricopa would benefit from a newer branded hotel she indicated support as the city does not currently have a hotel. Amenities recommended included extended stay guestrooms, pool, and meeting space. Additionally she offered her services in the hiring process as she teaches hotel revenue management and may have some sources for workers at a new hotel in town.

In speaking with the Senior Advisor at the Maricopa Economic Development Alliance, she indicated they have 6-10 board members per month in need of overnight accommodations as well as residents and winter visitors who may have lodging needs. Currently they recommend hotels in Chandler, Ahwatukee, and Tempe, as that is where a majority of the hotels are located. When asked if Maricopa would benefit from a newer branded hotel she indicated strong support as this is a critical piece for their growing community. Amenities recommended business center, fitness center, and breakfast. She indicated a Residence Inn may be a great hotel for the area.

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In speaking with the Vice Mayor at the City of Maricopa, he did not indicate specific room nights from the city. However, when asked if he felt Maricopa would benefit from a newer branded hotel, he felt strongly that two hotels would be of most benefit as the closest hotel Harrah's Ak-Chin Casino Resort is often booked sending clients into South Phoenix or Chandler for overnight accommodation. Amenities recommended included a hotel that offers breakfast, lunch, and dinner as well as space for meetings or conference space. Brands indicated included Hampton, Hilton Garden Inn, or Holiday Inn Express type hotels would be a good fit. He also indicated that the city is a stopping point on the way to Rocky Point and San Francisco as well the new Copper Sky Regional Park appears to have high leisure demand need with the baseball and soccer fields offered.

In speaking with the Mayor at the City of Maricopa, he indicated there appears to be a substantial amount of overnight accommodation need in the city including families, tournaments held at the new sports complex, VW Proving Grounds business, other local businesses, and even people traveling through to the Sand Dunes nearby. Currently they recommend the nearest Harrah's Ak-Chin Casino Resort Hotel or hotels in the Chandler market. He also indicated Harrah's Ak-Chin Casino Resort Casino Resort is often full, charging upwards of $150/night for travelers. He felt strongly that Maricopa was in need of a lodging facility. Amenities recommended included meeting space for receptions from 250-500 people.

In speaking with the Community Services Director at the City of Maricopa, she indicated they have approximately 10 tournaments annually with teams coming in from out of town seeking lodging as well as contract employees estimated at over 1,000 annually in need of accommodations. Currently they recommend hotels in Casa Grande or Chandler as they are the closest lodging options to Maricopa and the Harrah's Ak-Chin Casino Resort being sold out oftentimes during their events. When asked if she felt Maricopa would benefit from a newer branded hotel she indicated strong support for a family-friendly hotel with extended stay options and meeting space for 100-200 people.

Source: Core Distinction Group LLC Community Interviews (2014)

In speaking with the Senior Operations Manager at Nissan Arizona Proving Grounds, she indicated they have visitors coming in from Nissan, third party customers, groups, and race teams coming in weekly. Currently, they have had a group in since August ranging from 10-25 people staying for up to 90 days. One of their race teams consisting of 30-40 people are coming in this month and staying for 30+ days. The estimate of rooms needed on an annual basis is between 5,000-7,500 with most coming in for 14+ days at 30 people or more per month. She indicated July was their busiest month with between 100-200 visitors this year. Currently they recommend the Wild Horse Pass Sheraton, Hampton Inn Chandler, or Residence Inn Chandler. Most of their Japanese travelers prefer the Residence Inn location staying for extended periods of time. When asked if she felt Maricopa would benefit from a newer branded hotel she indicated their facilities directly would benefit as their guests would not have to travel over 15 miles to Chandler and the city would benefit with these groups spending their dollars in the community at local stores and restaurants. Amenities recommended included microwaves, refrigerators, and/or full kitchens, dinner, and breakfast. One note is that many of their clients are from Japan or Germany, therefore it would benefit a hotel to cater some of their breakfast or dinner menu options to appeal to these groups.

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Source: Core Distinction Group LLC Community Interviews (2014)

Growth in Community (IV)

Strong Sense of CommunitySupportive Local Government

Challenges of Maricopa, AZLocals Commute to Valley for Work (V)

High Tax (II)

Distance to Phoenix, AZ

Retail Space High Cost (III)

Seasonality

More Community Awareness Needed (II)

High Quality of LifeGreater Disposable Income

Tight Knit Community

Needs more family style restaurantsLowe's or Home Depot Facility in town needed

Needs more business and services

16 Miles to Nearest City

Benefits of Maricopa, AZ

Great Place to Live

Well Educated Workforce (II)

Banner Health Maricopa Center

Locals Support Local Businesses

Affordable Housing (III)

Up and Coming Community

Best Kept Secret in AZ

New City, Open to New IdeasCommunity Spirit

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Competitive Hotel Properties

SINGLE DOUBLE WEEKEND CORP

$142.99 $134.49 $118.99 $129.99 $131.62$159.00 $149.00 $119.00 $99.00 $131.50$139.00 $139.00 $104.00 $89.00 $117.75$79.99 $79.99 $179.99 $79.99 $104.99

$121.46

SINGLE DOUBLE WEEKEND CORP/ESSOC

$105.99 $96.99 $78.99 $79.00 $90.24$96.05 $96.05 $89.25 $89.00 $92.59$142.99 $134.49 $118.99 $129.99 $131.62$124.00 $119.00 $94.00 $79.00 $104.00$159.00 $149.00 $119.00 $99.00 $131.50$139.00 $129.00 $129.00 $99.00 $124.00$139.00 $129.00 $104.00 $89.00 $115.25$139.00 $139.00 $104.00 $89.00 $117.75

$113.37

Rooms 7+ 14+ 30+

102 $159.99 $159.99 $129.99 $129.9983 $149.00 $129.00 $119.00 $119.00133 $139.00 $124.00 $109.00 $109.00

$119.33

SINGLE DOUBLE WEEKEND Nissan/VW

292 $79.99 $79.99 $179.99 $79.99 $104.99

500 $130.00 $130.00 $156.00 $120.00 $134.00$119.50

Homewood Suites Phoenix Chandler (II)

COMPETITIVE MARKET AVERAGE DAILY ROOM RATE (ADR):

Lodging SupplyThis section of the report describes the primary competitive Lodging Supply that will affect the property, particularly for hotel room demand.

As noted above, there are four properties pared down for comparison in rate positioning. The above mentioned hotels were running rack rates from $104-$159 for the month of December 2014. Average ADR for these hotels range from $105-$131 excluding negotiated business (occupancies vary based on accounts). With this rate positioning, this would place the subject hotel competitive with this grouping of extended stay hotels out of the Chandler market.

RATE ANALYSIS Projected ADR

STR Competitive Hotel Rates (December 2014)


The Overall/Statistical Competitive Set was pared down to the four most comparable or competitive properties which will help to generate preliminary rate positioning for the proposed hotel.

Direct Competitive Set

RATE ANALYSIS Projected ADR

Residence Inn Phoenix Chandler Fashion Center

Homewood Suites Phoenix Chandler (I)


Property

Harrah's Ak Chin Resort


The above mentioned hotels are located directly in the Maricopa market yet do not report their occupancies, rates, or revenues to STR for comparison.

Harrah's Ak Chin Resort




Property


Courtyard Phoenix Chandler Fashion Center

Hampton Inn & Suites Phoenix Chandler


Hampton Inn Phoenix Chandler


Radisson Phoenix Chandler

Holiday Inn Express & Suites Phoenix Chandler

STR Competitive Hotel EXTENDED STAY Rates (December 2014)

PropertyRATE ANALYSIS

30+ Rate

Projected ADR

STR Competitive Hotel Rates Immediate Market (December 2014) Not reported on STR due to Independent Branding

Property

Monthly Rate Survey Completed for Harrah's due to proximity to Maricopa on following pages.

Rooms

Sheraton Wild Horse Pass

RATE ANALYSIS

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Room rate competition for an upscale extended stay branded hotel in this market will be present throughout the year. This rate competition will be dictated by the rate structure of the hotels in the surrounding regional area. With proper rate positioning the hotel should achieve a yield to the immediate market of 150% (Weekday) and the overall region of 90%-100% which is average and would assist in mitigating any rate sensitivity. The developed hotel in this market should mirror the rates of the branded hotels in Chandler or within $10. Negotiated rates with local businesses or demand generators may be discounted and could drive ADR down dependent on rooms allotted to each account. In this region, two major accounts identifying extended stay need are present with a minimum potential of 5,000-10,000 guestroom nights annually. That said, negotiated rates with these businesses for 7+, 14+, and 30+ stays will impact average daily rate (ADR) as a whole for the hotel development. Rate strategies for an extended stay hotel would tier down for each level of extended stay time frame. Example: 7+ rates would be negotiated from $129; 14+ rates would be negotiated from $119; and 30+ $109 or less. These are only examples, these rate structures are typically negotiated through national RFPs with each corporation in the area and fluctuate based on total room nights consumed.

The proposed hotel will directly serve the Maricopa market and will attract the Lodging Demand identified in this report. As a result, it should be the premier property in Maricopa and should attract any Unaccommodated Lodging Demand being displaced elsewhere in the region due to the lack of accommodations in the city. Its facilities will be developed to match the expectations of today's travelers. This property could be established with a national or regional brand. Working with a brand that has experience in the lodging market will establish quality assurance for the hotel. Its defined rate positioning should establish the property as a highly competitive hotel for its Lodging Demand.

The statistical competitive market surveyed has seen new supply growth in the past year. In July of 2014, an upscale extended stay Staybridge Suites Hotel with 104 guestrooms opened in the Chandler market further indicating a need in the region for extended stay guestroom options. At the time of this report there was no other indication of another hotel under construction in the region. Still, this should be monitored closely throughout the Maricopa hotel development process. No additional supply growth was factored into the projections at this time.

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Occ % ADR

2009 -18.4% ($22.11)2010 5.9% ($7.24)2011 16.0% $4.912012 -3.4% $6.332013 2.6% $2.362014 1.4% $0.01

Occ % ADR

2012 2.6% $6.332013 1.4% $2.362014 1.4% $0.012015 2.1% $3.102016 1.8% $3.19

247,743257,294

Annual Occupancy Occupied Rooms

Year

71.4%

Source: STR & Core Distinction Group, LLC

(Growth/Decline)

$100.84

$103.20

(Growth/Decline)

67.5%

Note: Occupancy decline shown from 2009 vs. 2008 was caused primarily by aggressive hotel development in the Chandler market. In 2009, the following hotels opened adding 743 additional rooms to the market nightly to the area or 271,195 annually:1. 2/2009 - Hilton Phoenix Chandler (197 Guestrooms)2. 9/2009 - Hampton Inn & Suites Phoenix Chandler (153 Guestrooms)3. 9/2009 - Fairfield Inn & Suites Chandler (110 Guestrooms)4. 9/2009 - Courtyard Phoenix Chandler (150 Guestrooms)5. 10/2009 - Homewood Suites Phoenix Chandler (153 Guestrooms)

$103.20$103.21

270,167

Hampton Inn & Suites Phoenix Chandler 153

70.8%

Average Rate

$106.31

67.5%

Based on STR data provided, the following table summarizes the projected occupancy and rates for the competitive supply in the upcoming three years.

Projected Market Performance

75.4%

70.1%

71.4%

Occupied Rooms Average Rate

262,299 $103.21

260,125 $94.50

Based on STR data provided, the following table summarizes the historical trends in occupancy and rates for the competitive supply in the past five years and estimated 2014.

70.1%

Homewood Suites Phoenix Chandler (I) 83

48.9% 179,471 $96.8454.8% 201,286


Historical Market Performance

159

1006

$100.84

Occupancy appears to be accurately forecasted for the upcoming three years based on the market and demand as recent year trends. Occupancy and ADR are projected to climb through 2016 as there are currently no hotels slotted as U/C (Under Construction) in the immediate area as of this reporting date.


262,299257,294

Annual Occupancy


276,922 $109.50

262,299

Courtyard Phoenix Chandler Fashion Center 150Homewood Suites Phoenix Chandler (II) 133

Competitive HotelsPrimary Competitive Hotels (Chandler, AZ) # of Rooms


102Hampton Inn Phoenix Chandler 101Residence Inn Phoenix Chandler Fashion Center

125

$89.59

73.6%

Grand Total:

Year

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Holiday Inn Express & Suites Phoenix Chandler Homewood Suites Phoenix Chandler (I)

Homewood Suites Phoenix Chandler (II)Hampton Inn Phoenix Chandler

Courtyard Phoenix Chandler Fashion CenterResidence Inn Phoenix Chandler Fashion Center

Hampton Inn & Suites Phoenix ChandlerRadisson Phoenix Chandler

IMAGES of Hotels Surveyed in Chandler, AZ:

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Source: Ihg.com


Complimentary 100% Non-Smoking Facility No

Pool (Indoor) Pool (Outdoor) Spa

The Holiday Inn Express® Hotel & Suites Phoenix - Chandler is the answer for those seeking affordable Phoenix hotels. Thoughtfully located off I-10 and Chandler Boulevard, less than 15 miles from Phoenix Sky Harbor International Airport (PHX), our property ensures convenient access to prominent businesses and popular attractions throughout both Phoenix and Chandler, AZ. The hotel's professional services are of great appeal to corporate travelers. In addition to a Business Center with fax, copy and print capabilities, patrons can use the more than 700 square feet of meeting space. Those visiting clients or colleagues in Phoenix also appreciate our proximity to companies like Intel, ADP, Honeywell, Global Crossing and the Arizona Department of Agriculture. Phoenix vacations are likely to be action-packed. Guests can find the season's latest styles at nearby Chandler Fashion Center in Chandler, AZ, or leave the hotel's property in pursuit of a Wild West experience at Rawhide Western Town and Steakhouse. Phoenix Premium Outlets Mall is just 3.2 miles from our hotel and Lone Butte Casino is less than two miles away. Designed with your comfort in mind, this hotel's facility in Phoenix, AZ boasts every amenity from free Wi-Fi access and a complimentary, hot breakfast to a Fitness Center and an outdoor pool. Guest laundry facilities are also available. Find your niche here!

No Yes No

Complimentary Yes Yes

Parking Smoking/Non-Smoking

# of Guestrooms # of Floors Kitchenettes

125 4 No

Market / Gift Shop Elevator Shuttle Service

Yes Yes Yes/LaFitness $30

Yes - 840 sq.ft. No No

Complimentary No

Breakfast Lunch Dinner

Restaurant on Site Room Service

No

No

Business Center Fitness Center (Onsite) Fitness Center (Off Site)

Banquet/Meeting Facilities

Pets

Internet Guest Laundry Facilities Valet

Yes Yes

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Source: Radisson.com


Yes - 6,800 sq.ft. Yes Yes

Yes

Market / Gift Shop Elevator

Yes Yes N/A

Banquet/Meeting Facilities Restaurant on Site Room Service

Shuttle Service

Yes Yes Yes


Yes - Restaurant No Yes - Restaurant



Ideally located in the beautiful Valley of the Sun, the Radisson Phoenix-Chandler is an upscale property offering easy access to Phoenix-Sky Harbor Airport (PHX) and nearby attractions in Phoenix, Tempe, Mesa, Gilbert and Glendale. Here, you can take advantage of numerous on-site amenities, including complimentary Wi-Fi, a fitness center, on-site dining and a sparkling outdoor swimming pool. Feel like exploring the area? Take advantage of complimentary shuttle service within a five-mile radius (based on availability), allowing you to visit popular highlights like the renowned Rawhide Western Town, Wild Horse Pass Casino, the Chandler Fashion Center Mall, the Phoenix Premium Outlets, Wild Horse Pass Motorsports Park and the Bob Bondurant School of Driving. Reserve your stay online to discover what sets the Radisson apart from other hotels in Chandler.


159 4 No



Yes Yes Yes

Parking Smoking/Non-Smoking Pets

No Yes

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Source: Marriott.Com



102 3 Yes - All Rooms


Yes Yes No


Yes - 441 sq.ft. No No


Complimentary No Complimentary Weekday Social


No Yes Yes


Yes Yes No




Complimentary 100% Non-Smoking Facility Yes

Thrive on Long Stays - The preferred choice for extended-stay hotels in Chandler, AZ, Residence Inn Phoenix Chandler, welcomes you to the beautiful Southeast Valley of Phoenix. Guests stay within walking distance of Chandler Fashion Center Mall, more than 25 restaurants, and just a quick trip from countless other Phoenix area attractions. All-suite accommodations are ideal for corporate visitors, government contractors, leisure guests and group travelers. We are pleased to offer a complimentary full, hot breakfast each morning and evening social hours with light fare (Tues and Wed). Additional amenities include complimentary Wi-Fi, available meeting space, outdoor pool and Jacuzzi, fitness center and outdoor barbeque area. Each spacious suite is complete with a full-sized kitchen and available in one or two-bedroom floor-plans. Our knowledgeable and friendly team is standing by 24/7 to assist you. Discover one of the premier extended-stay hotels in Chandler, AZ.

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Source: Hilton.com

Hampton Inn Phoenix Chandler


101 6 No


No Yes N/A


1 - 450 sq.ft. No No


Complimentary No No


No Yes Yes


No Yes No


Complimentary No Yes


Complimentary Smoking Rooms Available No

Located directly off I-17/I-10, the Hampton Inn Phoenix / Chandler hotel is in the heart of the Phoenix tech district with proximity to several major corporations, including Intel, Honeywell, BE Aerospace, and Novell. Sky Harbor Airport and downtown Phoenix are just 15 minutes directly north from our Chandler hotel. Our refreshed lobby and an array of amenities makes our Chandler hotel a convenient and comfortable choice among hotels in Phoenix, AZ. Stay connected with free WiFi and rest easy on a signature clean and fresh Hampton bed®. Start your day with a free hot breakfast or a Hampton On the Run® Breakfast Bag on your way out the door. Maintain your regimen in our fitness center, newly renovated August 2014, or wind down with a dip in the outdoor pool.

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Source: Hilton.com



83 3 Yes


Yes Yes N/A


Yes - 240 Sq.ft. No No




No Yes No


Yes Yes No




Complimentary Smoking Rooms Available Yes

Discover this hotel in Chandler, AZ with the comforts of home. Unwind at Homewood Suites by Hilton® Phoenix/Chandler and stay a while in a home away from home. Situated just fifteen minutes from Phoenix Sky Harbor International Airport, our hotel is close to a range of businesses, shopping and dining options. Play a round of golf at one of three nearby Phoenix golf courses within eight miles of our hotel in Chandler, AZ, or treat yourself at the nearby Arizona Mills indoor outlet mall or Chandler Fashion Center. Discover all the comforts of home in this pet-friendly Chandler hotel. Unwind in a spacious suite, featuring a large, separate living area, a fully equipped kitchen and two flat-screen TVs. Continue your exercise routine with the fitness center, pool or basketball court, situated just steps from the hotel. Start your day with a complimentary hot full breakfast or savor complimentary evening dinner and drinks* served Monday through Thursday. Enjoy all the support you need in the hotel’s business center or host a meeting for up to twelve people and relax while expert event planners take care of the details.

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Source: Hilton.com


153 3 Microwaves/Refrigerators


Hampton Inn & Suites Phoenix Chandler

Yes Yes N/A


Yes - 575 sq. ft. No No


Complimentary No No


No Yes Yes


Yes Yes No




Complimentary Smoking Rooms Available No

Comfort and convenience at our hotel in Chandler, AZ. Take advantage of the great value found at the Hampton Inn & Suites Phoenix Chandler-Fashion Center AZ hotel next to the intersection of Loop 101 and 202. Enjoy our free 5-mile radius shuttle to many of the technological businesses nearby or to Chandler Fashion Center, just two miles from our hotel in Chandler, AZ. While traveling for pleasure, make a bet at nearby Lone Butte Casino, hit the links at Ocotillo Golf Course, or watch car racing at the Wild Horse Pass Raceway. Venture to downtown Phoenix with its wealth of attractions, including Chase Field, the Phoenix Convention Center, and Phoenix Zoo. Enjoy our thoughtful amenities including free WiFi and an on-site convenience store, as well as a microwave and mini-fridge in each guest room and suite. Get some well-deserved rest on the clean and fresh Hampton bed® before waking up to Hampton’s free hot breakfast. Reinvigorate with a workout in the fitness center or spend a day basking in the sunshine by the outdoor pool and whirlpool spa. Our hotel in Chandler, AZ also provides a 24-hour business center, in addition to meeting space for up to 40 guests.

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Source: Marriott.com


150 6 No

Courtyard Phoenix Chandler Fashion Center


Yes Yes N/A


Yes - (4) Meeting Rooms 1,600 sq.ft. Yes (Bistro) No


Yes (Bistro) Yes (Bistro) Yes (Bistro)


No Yes Yes


Yes Yes No


Complimentary No Yes



Courtyard Phoenix Chandler hotel located off Highway 202 just 20 minutes from downtown via I-10 offers thoughtful amenities for the busy, tech-savvy traveler. Our state-of-the-art lobby features individual media pods, free WiFi and interactive GoBoard® for the most up-to-minute news, traffic & weather. Business travelers and vacationing families love our hotel rooms with free WiFi and flat-screen TVs. Some rooms even offer mountain views. When you stay with us, you'll enjoy healthy meal options at our onsite Bistro serving breakfast with Starbucks® coffee and dinner with bar service. The most convenient of Chandler hotels, we're minutes from Chandler Mall and offer a free shuttle service to the mall and nearby corporations (7am-10pm). After a busy day in the Phoenix area, take advantage of our fitness center, outdoor pool & patio with fire pit. With rates typically lower than downtown options and close proximity to Fashion Center, Diablo Stadium and Phoenix Raceway, we're the top choice of Chandler hotels.

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Source: Hilton.com



133 4 Yes


Yes Yes N/A


Yes - 200 sq. ft. No No




No Yes Yes


Yes Yes No




Complimentary Smoking Rooms Available Yes

Located near the intersection of Loop 101 & 202, the Homewood Suites by Hilton Phoenix Chandler Fashion Center hotel is just 2 miles from shopping at Chandler Fashion Center to the north and hip dining at Downtown Ocotillo to the south. Take advantage of our complimentary 5-mile radius shuttle service, perfect for guests at our extended stay hotel in Chandler, AZ. Guests will take note of our helpful, welcoming staff and large outdoor pool with whirlpool. Our spacious king studio, one- and two-bedroom suites feature separate living and sleeping areas. Make your extended stay in Chandler, AZ as comfortable as possible in a fully equipped kitchen with a full-size refrigerator, microwave, two-burner stove and dishwasher. You'll find enough space for work or entertaining with complimentary WiFi, two flat-screen TVs, and work desk.

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Source: Harrah's Ak-Chin.com

Harrah's Ak-Chin Hotel


292 Multi No


Yes - 4,784 sq. ft. Yes No


Yes Yes Yes


Yes - Restaurants Yes - Restaurants Yes - Restaurants


No Yes Yes


Yes Yes No

Complimentary / Valet Smoking Rooms Available Yes

When you're not playing one of your favorite games, you can settle into one of our 300 luxurious guestrooms, which come complete with all the amenities to make your stay a comfortable one. If you're looking for the excitement of a casino, with the relaxing ambience of a first-class resort, both can be found at the same place: Harrah's Ak-Chin.


Complimentary No No


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Weekday Weekend Weekday Weekend Weekday Weekend

$79.99 $209.99 $99.99 $249.99 $89.99 $199.99

$79.99 $239.99 $99.99 $399.99 $89.99 $199.99

$79.99 $239.99 $99.99 $249.99 $89.99 $199.99

$79.99 $399.99 $99.99 $249.99 $89.99 $199.99

$79.99 $272.49 $99.99 $287.49 $89.99 $199.99


$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

Weekday Weekend Weekday Weekend Weekday Weekend$79.99 $199.99 $79.99 $189.99 $79.99 $209.99

$79.99 $189.99 $79.99 $199.99 $79.99 $179.99

$79.99 $179.99 $79.99 $229.99 $79.99 $179.99

$79.99 $179.99 $79.99 $239.99 $79.99 $179.99

$79.99 $187.49 $79.99 $214.99 $79.99 $187.49


$79.99 $179.99 $79.99 $179.99 $79.99 $329.99

$79.99 $179.99 $79.99 $179.99 $79.99 $329.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $179.99

$79.99 $179.99 $79.99 $179.99 $79.99 $254.99

15-Oct 15-Nov 14-Dec

15-Jul 15-Aug 15-Sep

15-Apr 15-May 15-Jun

Ak-Chin Hotel

(2015 Rate Strategy)

15-Jan 15-Feb 15-Mar

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Arizona Extended Stay Rate Survey - 2014In October 2012, Biz-stay.com researchers conducted an extensive survey comparing the lowest available weekly discount rates the following January at 10 leading extended stay hotel chains. The chains ranged from budget to upscale. For extended stay chain abbreviations used in the rate matrix below, please refer to the following key:

In many areas, there was more than one hotel of a particular brand. When these hotels charged different rates, we provide a price range. When there is no vacancy for the particular suite type, this is indicated by "nv". Note that many chains offer lower rates for month stays (30 days or longer).

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United Kingdom United States

Blue Fin Building 735 East Main Street110 Southwark Street Hendersonville

London SE1 0TA TN 37075Phone: +44 (0)20 7922 1930 Phone: +1 (615) 824 8664

Fax: +44 (0)20 7922 1931 Fax: +1 (615) 824 3848www.strglobal.com www.str.com

Maricopa, AZ

Job Number: 637110_SADIM Staff: MB Created: November 26, 2014

Currency: USD - US Dollar

Tab

Table of Contents 1

Data by Measure 2

Percent Change by Measure 3

Percent Change by Year 4

Twelve Month Moving Average 5

Twelve Month Moving Average with Percent Change 6

Day of Week Analysis 7

Raw Data 8

Classic 9

Response Report 10

Help 11

Terms and Conditions 12

January 2008 to October 2014

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Tab 2 - Data by Measure

Maricopa, AZ (Set 2)Job Number: 637110_SADIM Staff: MB Created: November 26, 2014

Occupancy (%)

January February March April May June July August September October November December Total Year Oct YTD

2008 74.7 84.4 83.6 78.2 60.8 55.6 58.7 53.4 63.9 71.7 70.4 53.1 67.2 68.42009 62.8 72.8 69.4 57.6 44.2 43.7 46.5 47.1 38.2 39.7 48.5 38.6 48.9 50.62010 48.1 63.2 73.5 51.9 45.8 45.6 39.9 44.9 50.4 62.7 73.1 59.7 54.8 52.52011 70.1 82.1 90.3 74.9 73.4 63.6 62.1 65.4 63.9 72.6 72.5 60.1 70.8 71.82012 66.1 83.7 92.9 72.3 66.0 66.0 59.3 57.7 56.1 67.3 70.0 53.7 67.5 68.62013 61.0 80.1 86.3 67.4 64.0 64.9 62.9 64.2 66.3 75.4 81.2 68.0 70.1 69.22014 72.6 89.3 90.9 79.4 73.3 60.4 56.1 57.1 60.4 72.4 80.0 65.0 71.4 71.1Avg 64.5 79.5 84.9 68.9 62.3 58.2 55.4 56.5 57.0 65.6 69.2 55.7 63.7 65.1

ADR ($)


2008 143.96 160.64 139.09 132.99 114.43 100.36 90.48 89.57 105.42 108.54 106.22 103.32 118.94 121.482009 118.81 129.50 117.81 104.50 91.12 79.77 76.01 75.49 86.11 88.52 89.66 86.87 96.84 99.112010 99.05 105.82 105.02 91.14 83.57 76.17 74.17 75.60 85.80 88.38 87.85 88.00 89.59 90.022011 103.15 107.39 109.45 98.47 89.46 82.86 78.83 81.00 90.38 95.27 95.56 92.32 94.50 94.592012 112.58 116.98 120.91 105.45 97.04 85.63 84.57 82.93 93.70 100.32 98.14 94.13 100.84 101.642013 114.77 123.26 125.37 111.83 99.17 88.11 86.27 85.47 95.09 103.62 99.05 97.17 103.20 104.292014 116.51 126.22 132.82 114.89 98.79 86.24 84.67 85.13 97.53 101.72 99.00 95.00 103.21 106.92Avg 114.24 121.99 120.92 108.06 95.84 85.38 82.55 82.46 93.39 98.23 95.66 93.25 99.80 101.96

RevPAR ($)


2008 107.57 135.51 116.23 103.93 69.62 55.80 53.11 47.80 67.37 77.80 74.81 54.85 79.97 83.042009 74.61 94.32 81.77 60.16 40.32 34.85 35.32 35.53 32.93 35.15 43.53 33.54 47.33 50.112010 47.64 66.87 77.15 47.28 38.26 34.75 29.61 33.97 43.24 55.39 64.18 52.51 49.11 47.282011 72.31 88.17 98.84 73.74 65.66 52.70 48.94 52.94 57.77 69.14 69.30 55.48 66.95 67.892012 74.39 97.92 112.28 76.25 64.10 56.50 50.17 47.86 52.53 67.49 68.72 50.51 68.03 69.752013 70.01 98.78 108.24 75.42 63.42 57.18 54.27 54.90 63.04 78.16 80.38 66.08 72.31 72.152014 84.60 112.75 120.79 91.28 72.46 52.13 47.53 48.64 58.89 73.69 76.00Avg 73.73 96.97 102.64 74.50 59.71 49.67 45.75 46.56 53.19 64.43 66.20 51.95 63.58 66.41

Supply


2008 17,670 15,960 17,670 17,100 17,670 17,100 17,670 17,670 17,100 17,670 17,100 17,670 208,050 173,2802009 17,670 15,960 17,670 17,100 17,670 17,100 17,670 17,670 26,190 31,186 30,180 31,186 257,252 195,8862010 31,186 28,168 31,186 30,180 31,186 30,180 31,186 31,186 30,180 31,186 30,180 31,186 367,190 305,8242011 31,186 28,168 31,186 30,180 31,186 30,180 31,186 31,186 30,180 31,186 30,180 31,186 367,190 305,8242012 31,186 28,168 31,186 30,180 31,186 30,180 31,186 31,186 30,180 31,186 30,180 31,186 367,190 305,8242013 31,186 28,168 31,186 30,180 31,186 30,180 31,186 31,186 30,180 31,186 30,180 31,186 367,190 305,8242014 31,186 28,168 31,186 30,180 31,186 30,180 31,186 31,186 30,180 31,186 305,824Avg 27,324 24,680 27,324 26,443 27,324 26,443 27,324 27,324 27,741 29,255 28,000 28,933 322,344 271,184

Demand


2008 13,204 13,463 14,766 13,364 10,750 9,508 10,372 9,429 10,928 12,666 12,044 9,381 139,875 118,4502009 11,097 11,624 12,265 9,844 7,818 7,470 8,210 8,318 10,015 12,383 14,652 12,040 125,736 99,0442010 15,001 17,799 22,912 15,655 14,277 13,767 12,448 14,015 15,210 19,545 22,048 18,608 201,285 160,6292011 21,862 23,126 28,161 22,602 22,889 19,196 19,360 20,383 19,290 22,633 21,885 18,739 260,126 219,5022012 20,607 23,579 28,962 21,822 20,598 19,912 18,500 17,996 16,919 20,980 21,132 16,735 247,742 209,8752013 19,023 22,574 26,926 20,354 19,945 19,587 19,619 20,032 20,009 23,524 24,492 21,207 257,292 211,5932014 22,645 25,161 28,361 23,977 22,874 18,242 17,506 17,821 18,221 22,592 217,400Avg 17,634 19,618 23,193 18,231 17,022 15,383 15,145 15,428 15,799 19,189 19,376 16,118 205,343 176,642

Revenue ($)


2008 1,900,818 2,162,739 2,053,793 1,777,222 1,230,103 954,251 938,497 844,562 1,152,066 1,374,708 1,279,322 969,273 16,637,354 14,388,7592009 1,318,419 1,505,306 1,444,955 1,028,718 712,412 595,898 624,036 627,887 862,386 1,096,137 1,313,637 1,045,872 12,175,663 9,816,1542010 1,485,793 1,883,527 2,406,113 1,426,796 1,193,169 1,048,616 923,295 1,059,508 1,305,086 1,727,388 1,936,818 1,637,548 18,033,657 14,459,2912011 2,255,103 2,483,560 3,082,362 2,225,539 2,047,559 1,590,626 1,526,126 1,651,064 1,743,525 2,156,141 2,091,408 1,730,060 24,583,073 20,761,6052012 2,319,880 2,758,332 3,501,658 2,301,175 1,998,904 1,705,101 1,564,616 1,492,496 1,585,308 2,104,663 2,073,827 1,575,219 24,981,179 21,332,1332013 2,183,231 2,782,547 3,375,628 2,276,093 1,977,882 1,725,826 1,692,510 1,712,233 1,902,565 2,437,542 2,425,917 2,060,677 26,552,651 22,066,0572014 2,638,438 3,175,837 3,766,978 2,754,801 2,259,836 1,573,234 1,482,256 1,517,025 1,777,159 2,298,150 23,243,714Avg 2,014,526 2,393,121 2,804,498 1,970,049 1,631,409 1,313,365 1,250,191 1,272,111 1,475,442 1,884,961 1,853,488 1,503,108 20,493,930 18,009,673

STR’s Trend Report is a publication of STR, Inc. and is intended solely for use by paid subscribers. Reproduction or distribution of the Trend Report, in whole or part, without written permission of STR is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the Trend Report and its contents are subject to the terms set forth in the contract you have entered into with STR. Source 2014 STR, Inc.

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Tab 3 - Percent Change from Previous Year - Detail by MeasureMaricopa, AZ (Set 2)Job Number: 637110_SADIM Staff: MB Created: November 26, 2014

Occupancy


2009 -16.0 -13.7 -16.9 -26.3 -27.3 -21.4 -20.8 -11.8 -40.2 -44.6 -31.1 -27.3 -27.3 -26.02010 -23.4 -13.2 5.8 -9.9 3.5 4.4 -14.1 -4.5 31.8 57.8 50.5 54.6 12.2 3.92011 45.7 29.9 22.9 44.4 60.3 39.4 55.5 45.4 26.8 15.8 -0.7 0.7 29.2 36.72012 -5.7 2.0 2.8 -3.5 -10.0 3.7 -4.4 -11.7 -12.3 -7.3 -3.4 -10.7 -4.8 -4.42013 -7.7 -4.3 -7.0 -6.7 -3.2 -1.6 6.0 11.3 18.3 12.1 15.9 26.7 3.9 0.82014 19.0 11.5 5.3 17.8 14.7 -6.9 -10.8 -11.0 -8.9 -4.0 2.7Avg 2.0 2.0 2.2 2.6 6.3 2.9 1.9 2.9 2.6 5.0 6.2 8.8 2.6 2.3

ADR


2009 -17.5 -19.4 -15.3 -21.4 -20.4 -20.5 -16.0 -15.7 -18.3 -18.4 -15.6 -15.9 -18.6 -18.42010 -16.6 -18.3 -10.9 -12.8 -8.3 -4.5 -2.4 0.1 -0.4 -0.2 -2.0 1.3 -7.5 -9.22011 4.1 1.5 4.2 8.0 7.0 8.8 6.3 7.1 5.3 7.8 8.8 4.9 5.5 5.1

2012 9.1 8.9 10.5 7.1 8.5 3.3 7.3 2.4 3.7 5.3 2.7 2.0 6.7 7.52013 1.9 5.4 3.7 6.0 2.2 2.9 2.0 3.1 1.5 3.3 0.9 3.2 2.3 2.62014 1.5 2.4 5.9 2.7 -0.4 -2.1 -1.9 -0.4 2.6 -1.8 2.5Avg -2.9 -3.2 -0.3 -1.7 -1.9 -2.0 -0.8 -0.6 -0.9 -0.7 -1.0 -0.9 -2.3 -1.7

RevPAR


2009 -30.6 -30.4 -29.6 -42.1 -42.1 -37.6 -33.5 -25.7 -51.1 -54.8 -41.8 -38.9 -40.8 -39.72010 -36.1 -29.1 -5.7 -21.4 -5.1 -0.3 -16.2 -4.4 31.3 57.6 47.4 56.6 3.8 -5.72011 51.8 31.9 28.1 56.0 71.6 51.7 65.3 55.8 33.6 24.8 8.0 5.6 36.3 43.62012 2.9 11.1 13.6 3.4 -2.4 7.2 2.5 -9.6 -9.1 -2.4 -0.8 -9.0 1.6 2.72013 -5.9 0.9 -3.6 -1.1 -1.1 1.2 8.2 14.7 20.0 15.8 17.0 30.8 6.3 3.42014 20.9 14.1 11.6 21.0 14.3 -8.8 -12.4 -11.4 -6.6 -5.7 5.3Avg 0.5 -0.3 2.4 2.6 5.9 2.2 2.3 3.3 3.0 5.9 5.9 9.0 1.4 1.6

Supply


2009 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 53.2 76.5 76.5 76.5 23.6 13.02010 76.5 76.5 76.5 76.5 76.5 76.5 76.5 76.5 15.2 0.0 0.0 0.0 42.7 56.12011 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02012 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02013 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02014 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Avg 12.7 12.7 12.7 12.7 12.7 12.7 12.7 12.7 11.4 12.7 15.3 15.3 13.3 11.5

Demand


2009 -16.0 -13.7 -16.9 -26.3 -27.3 -21.4 -20.8 -11.8 -8.4 -2.2 21.7 28.3 -10.1 -16.42010 35.2 53.1 86.8 59.0 82.6 84.3 51.6 68.5 51.9 57.8 50.5 54.6 60.1 62.22011 45.7 29.9 22.9 44.4 60.3 39.4 55.5 45.4 26.8 15.8 -0.7 0.7 29.2 36.72012 -5.7 2.0 2.8 -3.5 -10.0 3.7 -4.4 -11.7 -12.3 -7.3 -3.4 -10.7 -4.8 -4.42013 -7.7 -4.3 -7.0 -6.7 -3.2 -1.6 6.0 11.3 18.3 12.1 15.9 26.7 3.9 0.82014 19.0 11.5 5.3 17.8 14.7 -6.9 -10.8 -11.0 -8.9 -4.0 2.7

Avg 11.8 13.1 15.7 14.1 19.5 16.3 12.9 15.1 11.2 12.0 16.8 19.9 15.7 13.6

Revenue


2009 -30.6 -30.4 -29.6 -42.1 -42.1 -37.6 -33.5 -25.7 -25.1 -20.3 2.7 7.9 -26.8 -31.82010 12.7 25.1 66.5 38.7 67.5 76.0 48.0 68.7 51.3 57.6 47.4 56.6 48.1 47.32011 51.8 31.9 28.1 56.0 71.6 51.7 65.3 55.8 33.6 24.8 8.0 5.6 36.3 43.62012 2.9 11.1 13.6 3.4 -2.4 7.2 2.5 -9.6 -9.1 -2.4 -0.8 -9.0 1.6 2.72013 -5.9 0.9 -3.6 -1.1 -1.1 1.2 8.2 14.7 20.0 15.8 17.0 30.8 6.3 3.42014 20.9 14.1 11.6 21.0 14.3 -8.8 -12.4 -11.4 -6.6 -5.7 5.3Avg 8.6 8.8 14.4 12.7 18.0 14.9 13.0 15.4 10.7 11.6 14.8 18.4 13.1 11.8


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Tab 4 - Percent Change from Previous Year - Detail by YearMaricopa, AZ (Set 2)Job Number: 637110_SADIM Staff: MB Created: November 26, 2014

Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Total Year Oct YTD

Occ -16.0 -13.7 -16.9 -26.3 -27.3 -21.4 -20.8 -11.8 -40.2 -44.6 -31.1 -27.3 -27.3 -26.0ADR -17.5 -19.4 -15.3 -21.4 -20.4 -20.5 -16.0 -15.7 -18.3 -18.4 -15.6 -15.9 -18.6 -18.4

RevPAR -30.6 -30.4 -29.6 -42.1 -42.1 -37.6 -33.5 -25.7 -51.1 -54.8 -41.8 -38.9 -40.8 -39.7Supply 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 53.2 76.5 76.5 76.5 23.6 13.0

Demand -16.0 -13.7 -16.9 -26.3 -27.3 -21.4 -20.8 -11.8 -8.4 -2.2 21.7 28.3 -10.1 -16.4Revenue -30.6 -30.4 -29.6 -42.1 -42.1 -37.6 -33.5 -25.7 -25.1 -20.3 2.7 7.9 -26.8 -31.8


Occ -23.4 -13.2 5.8 -9.9 3.5 4.4 -14.1 -4.5 31.8 57.8 50.5 54.6 12.2 3.9ADR -16.6 -18.3 -10.9 -12.8 -8.3 -4.5 -2.4 0.1 -0.4 -0.2 -2.0 1.3 -7.5 -9.2

RevPAR -36.1 -29.1 -5.7 -21.4 -5.1 -0.3 -16.2 -4.4 31.3 57.6 47.4 56.6 3.8 -5.7Supply 76.5 76.5 76.5 76.5 76.5 76.5 76.5 76.5 15.2 0.0 0.0 0.0 42.7 56.1

Demand 35.2 53.1 86.8 59.0 82.6 84.3 51.6 68.5 51.9 57.8 50.5 54.6 60.1 62.2Revenue 12.7 25.1 66.5 38.7 67.5 76.0 48.0 68.7 51.3 57.6 47.4 56.6 48.1 47.3


Occ 45.7 29.9 22.9 44.4 60.3 39.4 55.5 45.4 26.8 15.8 -0.7 0.7 29.2 36.7ADR 4.1 1.5 4.2 8.0 7.0 8.8 6.3 7.1 5.3 7.8 8.8 4.9 5.5 5.1

RevPAR 51.8 31.9 28.1 56.0 71.6 51.7 65.3 55.8 33.6 24.8 8.0 5.6 36.3 43.6Supply 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Demand 45.7 29.9 22.9 44.4 60.3 39.4 55.5 45.4 26.8 15.8 -0.7 0.7 29.2 36.7Revenue 51.8 31.9 28.1 56.0 71.6 51.7 65.3 55.8 33.6 24.8 8.0 5.6 36.3 43.6


Occ -5.7 2.0 2.8 -3.5 -10.0 3.7 -4.4 -11.7 -12.3 -7.3 -3.4 -10.7 -4.8 -4.4ADR 9.1 8.9 10.5 7.1 8.5 3.3 7.3 2.4 3.7 5.3 2.7 2.0 6.7 7.5

RevPAR 2.9 11.1 13.6 3.4 -2.4 7.2 2.5 -9.6 -9.1 -2.4 -0.8 -9.0 1.6 2.7Supply 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Demand -5.7 2.0 2.8 -3.5 -10.0 3.7 -4.4 -11.7 -12.3 -7.3 -3.4 -10.7 -4.8 -4.4Revenue 2.9 11.1 13.6 3.4 -2.4 7.2 2.5 -9.6 -9.1 -2.4 -0.8 -9.0 1.6 2.7


Occ -7.7 -4.3 -7.0 -6.7 -3.2 -1.6 6.0 11.3 18.3 12.1 15.9 26.7 3.9 0.8ADR 1.9 5.4 3.7 6.0 2.2 2.9 2.0 3.1 1.5 3.3 0.9 3.2 2.3 2.6

RevPAR -5.9 0.9 -3.6 -1.1 -1.1 1.2 8.2 14.7 20.0 15.8 17.0 30.8 6.3 3.4Supply 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Demand -7.7 -4.3 -7.0 -6.7 -3.2 -1.6 6.0 11.3 18.3 12.1 15.9 26.7 3.9 0.8Revenue -5.9 0.9 -3.6 -1.1 -1.1 1.2 8.2 14.7 20.0 15.8 17.0 30.8 6.3 3.4


Occ 19.0 11.5 5.3 17.8 14.7 -6.9 -10.8 -11.0 -8.9 -4.0 2.7ADR 1.5 2.4 5.9 2.7 -0.4 -2.1 -1.9 -0.4 2.6 -1.8 2.5

RevPAR 20.9 14.1 11.6 21.0 14.3 -8.8 -12.4 -11.4 -6.6 -5.7 5.3Supply 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Demand 19.0 11.5 5.3 17.8 14.7 -6.9 -10.8 -11.0 -8.9 -4.0 2.7Revenue 20.9 14.1 11.6 21.0 14.3 -8.8 -12.4 -11.4 -6.6 -5.7 5.3


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Tab 5 - Twelve Month Moving Average


Occupancy (%)

January February March April May June July August September October November December

2009 66.2 65.3 64.1 62.4 61.0 60.1 59.0 58.5 55.6 52.2 50.5 48.9

2010 47.9 48.0 49.4 49.2 49.1 49.1 48.4 48.2 49.1 51.0 53.0 54.8

2011 56.7 58.1 59.6 61.5 63.8 65.3 67.2 68.9 70.0 70.9 70.8 70.82012 70.5 70.6 70.8 70.6 70.0 70.2 70.0 69.3 68.7 68.2 68.0 67.52013 67.0 66.8 66.2 65.8 65.6 65.5 65.8 66.4 67.2 67.9 68.9 70.1

2014 71.1 71.8 72.2 73.1 73.9 73.6 73.0 72.4 71.9 71.7

ADR ($)


2009 116.54 113.28 110.84 108.08 106.50 105.37 104.66 103.83 102.22 100.15 98.30 96.84

2010 95.21 93.67 93.42 92.47 91.73 90.98 90.47 89.99 89.85 89.79 89.58 89.59

2011 90.34 90.89 91.80 92.52 92.76 92.92 92.76 92.77 93.00 93.54 94.20 94.502012 95.21 96.11 97.42 98.01 98.69 98.86 99.34 99.65 99.96 100.41 100.65 100.842013 100.93 101.44 101.77 102.29 102.48 102.70 102.76 102.80 102.80 103.08 103.11 103.202014 103.51 103.99 104.90 105.27 105.17 105.13 105.18 105.32 105.55 105.40

RevPAR ($)


2009 77.17 74.01 71.08 67.48 65.00 63.27 61.76 60.72 56.84 52.31 49.64 47.33

2010 45.59 44.96 46.15 45.48 45.07 44.66 43.79 43.35 44.08 45.80 47.50 49.11

2011 51.21 52.84 54.68 56.86 59.19 60.66 62.30 63.91 65.11 66.28 66.70 66.952012 67.13 67.87 69.02 69.22 69.09 69.40 69.51 69.07 68.64 68.50 68.46 68.032013 67.66 67.73 67.38 67.32 67.26 67.31 67.66 68.26 69.13 70.03 70.99 72.31

2014 73.55 74.62 75.69 76.99 77.76 77.35 76.77 76.24 75.90 75.52

Supply


2009 208,050 208,050 208,050 208,050 208,050 208,050 208,050 208,050 217,140 230,656 243,736 257,252

2010 270,768 282,976 296,492 309,572 323,088 336,168 349,684 363,200 367,190 367,190 367,190 367,190

2011 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,1902012 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,1902013 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,1902014 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190 367,190

Demand


2009 137,768 135,929 133,428 129,908 126,976 124,938 122,776 121,665 120,752 120,469 123,077 125,736

2010 129,640 135,815 146,462 152,273 158,732 165,029 169,267 174,964 180,159 187,321 194,717 201,2852011 208,146 213,473 218,722 225,669 234,281 239,710 246,622 252,990 257,070 260,158 259,995 260,1262012 258,871 259,324 260,125 259,345 257,054 257,770 256,910 254,523 252,152 250,499 249,746 247,7422013 246,158 245,153 243,117 241,649 240,996 240,671 241,790 243,826 246,916 249,460 252,820 257,292

2014 260,914 263,501 264,936 268,559 271,488 270,143 268,030 265,819 264,031 263,099

Revenue ($)


2009 16,054,955 15,397,522 14,788,684 14,040,180 13,522,489 13,164,136 12,849,675 12,633,000 12,343,320 12,064,749 12,099,064 12,175,663

2010 12,343,037 12,721,258 13,682,416 14,080,494 14,561,251 15,013,969 15,313,228 15,744,849 16,187,549 16,818,800 17,441,981 18,033,6572011 18,802,967 19,403,000 20,079,249 20,877,992 21,732,382 22,274,392 22,877,223 23,468,779 23,907,218 24,335,971 24,490,561 24,583,0732012 24,647,850 24,922,622 25,341,918 25,417,554 25,368,899 25,483,374 25,521,864 25,363,296 25,205,079 25,153,601 25,136,020 24,981,1792013 24,844,530 24,868,745 24,742,715 24,717,633 24,696,611 24,717,336 24,845,230 25,064,967 25,382,224 25,715,103 26,067,193 26,552,651

2014 27,007,858 27,401,148 27,792,498 28,271,206 28,553,160 28,400,568 28,190,314 27,995,106 27,869,700 27,730,308


High value is boxed. Low value is boxed and italicized.

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Tab 6 - Twelve Month Moving Average with Percent Change


Date Occupancy ADR RevPar Supply Demand Revenue

This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg

Jan 09 66.2 116.54 77.17 208,050 137,768 16,054,955Feb 09 65.3 113.28 74.01 208,050 135,929 15,397,522Mar 09 64.1 110.84 71.08 208,050 133,428 14,788,684Apr 09 62.4 108.08 67.48 208,050 129,908 14,040,180

May 09 61.0 106.50 65.00 208,050 126,976 13,522,489Jun 09 60.1 105.37 63.27 208,050 124,938 13,164,136Jul 09 59.0 104.66 61.76 208,050 122,776 12,849,675

Aug 09 58.5 103.83 60.72 208,050 121,665 12,633,000Sep 09 55.6 102.22 56.84 217,140 120,752 12,343,320Oct 09 52.2 100.15 52.31 230,656 120,469 12,064,749

Nov 09 50.5 98.30 49.64 243,736 123,077 12,099,064Dec 09 48.9 -27.3 96.84 -18.6 47.33 -40.8 257,252 23.6 125,736 -10.1 12,175,663 -26.8Jan 10 47.9 -27.7 95.21 -18.3 45.59 -40.9 270,768 30.1 129,640 -5.9 12,343,037 -23.1

Feb 10 48.0 -26.5 93.67 -17.3 44.96 -39.3 282,976 36.0 135,815 -0.1 12,721,258 -17.4Mar 10 49.4 -23.0 93.42 -15.7 46.15 -35.1 296,492 42.5 146,462 9.8 13,682,416 -7.5Apr 10 49.2 -21.2 92.47 -14.4 45.48 -32.6 309,572 48.8 152,273 17.2 14,080,494 0.3

May 10 49.1 -19.5 91.73 -13.9 45.07 -30.7 323,088 55.3 158,732 25.0 14,561,251 7.7Jun 10 49.1 -18.3 90.98 -13.7 44.66 -29.4 336,168 61.6 165,029 32.1 15,013,969 14.1Jul 10 48.4 -18.0 90.47 -13.6 43.79 -29.1 349,684 68.1 169,267 37.9 15,313,228 19.2

Aug 10 48.2 -17.6 89.99 -13.3 43.35 -28.6 363,200 74.6 174,964 43.8 15,744,849 24.6Sep 10 49.1 -11.8 89.85 -12.1 44.08 -22.4 367,190 69.1 180,159 49.2 16,187,549 31.1Oct 10 51.0 -2.3 89.79 -10.3 45.80 -12.4 367,190 59.2 187,321 55.5 16,818,800 39.4Nov 10 53.0 5.0 89.58 -8.9 47.50 -4.3 367,190 50.7 194,717 58.2 17,441,981 44.2Dec 10 54.8 12.2 89.59 -7.5 49.11 3.8 367,190 42.7 201,285 60.1 18,033,657 48.1Jan 11 56.7 18.4 90.34 -5.1 51.21 12.3 367,190 35.6 208,146 60.6 18,802,967 52.3Feb 11 58.1 21.1 90.89 -3.0 52.84 17.5 367,190 29.8 213,473 57.2 19,403,000 52.5Mar 11 59.6 20.6 91.80 -1.7 54.68 18.5 367,190 23.8 218,722 49.3 20,079,249 46.8Apr 11 61.5 24.9 92.52 0.1 56.86 25.0 367,190 18.6 225,669 48.2 20,877,992 48.3

May 11 63.8 29.9 92.76 1.1 59.19 31.3 367,190 13.7 234,281 47.6 21,732,382 49.2Jun 11 65.3 33.0 92.92 2.1 60.66 35.8 367,190 9.2 239,710 45.3 22,274,392 48.4Jul 11 67.2 38.8 92.76 2.5 62.30 42.3 367,190 5.0 246,622 45.7 22,877,223 49.4

Aug 11 68.9 43.0 92.77 3.1 63.91 47.4 367,190 1.1 252,990 44.6 23,468,779 49.1Sep 11 70.0 42.7 93.00 3.5 65.11 47.7 367,190 0.0 257,070 42.7 23,907,218 47.7Oct 11 70.9 38.9 93.54 4.2 66.28 44.7 367,190 0.0 260,158 38.9 24,335,971 44.7

Nov 11 70.8 33.5 94.20 5.2 66.70 40.4 367,190 0.0 259,995 33.5 24,490,561 40.4Dec 11 70.8 29.2 94.50 5.5 66.95 36.3 367,190 0.0 260,126 29.2 24,583,073 36.3Jan 12 70.5 24.4 95.21 5.4 67.13 31.1 367,190 0.0 258,871 24.4 24,647,850 31.1Feb 12 70.6 21.5 96.11 5.7 67.87 28.4 367,190 0.0 259,324 21.5 24,922,622 28.4Mar 12 70.8 18.9 97.42 6.1 69.02 26.2 367,190 0.0 260,125 18.9 25,341,918 26.2Apr 12 70.6 14.9 98.01 5.9 69.22 21.7 367,190 0.0 259,345 14.9 25,417,554 21.7

May 12 70.0 9.7 98.69 6.4 69.09 16.7 367,190 0.0 257,054 9.7 25,368,899 16.7Jun 12 70.2 7.5 98.86 6.4 69.40 14.4 367,190 0.0 257,770 7.5 25,483,374 14.4Jul 12 70.0 4.2 99.34 7.1 69.51 11.6 367,190 0.0 256,910 4.2 25,521,864 11.6

Aug 12 69.3 0.6 99.65 7.4 69.07 8.1 367,190 0.0 254,523 0.6 25,363,296 8.1Sep 12 68.7 -1.9 99.96 7.5 68.64 5.4 367,190 0.0 252,152 -1.9 25,205,079 5.4Oct 12 68.2 -3.7 100.41 7.3 68.50 3.4 367,190 0.0 250,499 -3.7 25,153,601 3.4

Nov 12 68.0 -3.9 100.65 6.8 68.46 2.6 367,190 0.0 249,746 -3.9 25,136,020 2.6Dec 12 67.5 -4.8 100.84 6.7 68.03 1.6 367,190 0.0 247,742 -4.8 24,981,179 1.6Jan 13 67.0 -4.9 100.93 6.0 67.66 0.8 367,190 0.0 246,158 -4.9 24,844,530 0.8

Feb 13 66.8 -5.5 101.44 5.6 67.73 -0.2 367,190 0.0 245,153 -5.5 24,868,745 -0.2Mar 13 66.2 -6.5 101.77 4.5 67.38 -2.4 367,190 0.0 243,117 -6.5 24,742,715 -2.4Apr 13 65.8 -6.8 102.29 4.4 67.32 -2.8 367,190 0.0 241,649 -6.8 24,717,633 -2.8

May 13 65.6 -6.2 102.48 3.8 67.26 -2.7 367,190 0.0 240,996 -6.2 24,696,611 -2.7Jun 13 65.5 -6.6 102.70 3.9 67.31 -3.0 367,190 0.0 240,671 -6.6 24,717,336 -3.0Jul 13 65.8 -5.9 102.76 3.4 67.66 -2.7 367,190 0.0 241,790 -5.9 24,845,230 -2.7

Aug 13 66.4 -4.2 102.80 3.2 68.26 -1.2 367,190 0.0 243,826 -4.2 25,064,967 -1.2Sep 13 67.2 -2.1 102.80 2.8 69.13 0.7 367,190 0.0 246,916 -2.1 25,382,224 0.7Oct 13 67.9 -0.4 103.08 2.7 70.03 2.2 367,190 0.0 249,460 -0.4 25,715,103 2.2

Nov 13 68.9 1.2 103.11 2.4 70.99 3.7 367,190 0.0 252,820 1.2 26,067,193 3.7Dec 13 70.1 3.9 103.20 2.3 72.31 6.3 367,190 0.0 257,292 3.9 26,552,651 6.3Jan 14 71.1 6.0 103.51 2.6 73.55 8.7 367,190 0.0 260,914 6.0 27,007,858 8.7

Feb 14 71.8 7.5 103.99 2.5 74.62 10.2 367,190 0.0 263,501 7.5 27,401,148 10.2Mar 14 72.2 9.0 104.90 3.1 75.69 12.3 367,190 0.0 264,936 9.0 27,792,498 12.3Apr 14 73.1 11.1 105.27 2.9 76.99 14.4 367,190 0.0 268,559 11.1 28,271,206 14.4

May 14 73.9 12.7 105.17 2.6 77.76 15.6 367,190 0.0 271,488 12.7 28,553,160 15.6Jun 14 73.6 12.2 105.13 2.4 77.35 14.9 367,190 0.0 270,143 12.2 28,400,568 14.9Jul 14 73.0 10.9 105.18 2.4 76.77 13.5 367,190 0.0 268,030 10.9 28,190,314 13.5

Aug 14 72.4 9.0 105.32 2.4 76.24 11.7 367,190 0.0 265,819 9.0 27,995,106 11.7Sep 14 71.9 6.9 105.55 2.7 75.90 9.8 367,190 0.0 264,031 6.9 27,869,700 9.8Oct 14 71.7 5.5 105.40 2.2 75.52 7.8 367,190 0.0 263,099 5.5 27,730,308 7.8


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Tab 7 - Day of Week AnalysisMaricopa, AZ (Set 2)Job Number: 637110_SADIM Staff: MB Created: November 26, 2014

Occupancy (%) Three Year Occupancy (%)

Sun Mon Tue Wed Thu Fri Sat Total Month Sun Mon Tue Wed Thu Fri Sat Total Year

Nov - 13 68.5 78.9 83.8 87.7 83.3 82.3 82.7 81.2 Nov 11 - Oct 12 53.0 70.2 79.9 79.9 70.1 62.7 61.3 68.2Dec - 13 54.2 64.8 73.3 77.8 70.7 67.7 70.5 68.0 Nov 12 - Oct 13 53.0 71.7 80.8 80.0 69.2 60.7 60.2 67.9Jan - 14 59.1 81.9 92.5 82.1 71.6 61.7 59.9 72.6 Nov 13 - Oct 14 56.8 73.5 81.4 80.9 73.2 68.0 67.8 71.7Feb - 14 74.1 89.9 97.3 97.6 93.3 91.5 81.4 89.3 Total 3 Yr 54.2 71.8 80.7 80.3 70.8 63.8 63.1 69.3

Mar - 14 72.0 90.0 98.8 98.8 95.8 93.7 92.1 90.9Apr - 14 62.0 81.9 88.9 89.1 80.3 75.9 73.4 79.4May - 14 58.9 73.2 84.7 85.3 76.5 69.3 67.3 73.3Jun - 14 46.8 62.9 75.9 73.5 62.1 52.8 51.8 60.4Jul - 14 43.3 62.3 64.6 61.8 55.5 52.2 49.7 56.1Aug - 14 44.1 63.6 70.4 67.8 59.3 49.9 51.3 57.1Sep - 14 48.2 60.4 70.0 70.8 63.0 53.3 54.5 60.4Oct - 14 52.8 75.5 84.0 81.3 71.6 67.7 73.3 72.4

Total Year 56.8 73.5 81.4 80.9 73.2 68.0 67.8 71.7

ADR Three Year ADR




Total Year 103.89 109.99 110.84 110.86 105.99 97.34 96.23 105.40

RevPAR Three Year RevPAR




Total Year 59.00 80.80 90.24 89.73 77.61 66.19 65.24 75.52


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Tab 8 - Raw Data


Date Occupancy ADR RevPar Supply Demand Revenue Census & Sample %

This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg Census Props Census Rooms

% Rooms STAR

Participants

Jan 08 74.7 143.96 107.57 17,670 13,204 1,900,818 5 570 100.0Feb 08 84.4 160.64 135.51 15,960 13,463 2,162,739 5 570 100.0Mar 08 83.6 139.09 116.23 17,670 14,766 2,053,793 5 570 100.0Apr 08 78.2 132.99 103.93 17,100 13,364 1,777,222 5 570 100.0

May 08 60.8 114.43 69.62 17,670 10,750 1,230,103 5 570 100.0Jun 08 55.6 100.36 55.80 17,100 9,508 954,251 5 570 100.0Jul 08 58.7 90.48 53.11 17,670 10,372 938,497 5 570 100.0

Aug 08 53.4 89.57 47.80 17,670 9,429 844,562 5 570 100.0Sep 08 63.9 105.42 67.37 17,100 10,928 1,152,066 5 570 100.0Oct 08 71.7 108.54 77.80 17,670 12,666 1,374,708 5 570 100.0Nov 08 70.4 106.22 74.81 17,100 12,044 1,279,322 5 570 100.0Dec 08 53.1 103.32 54.85 17,670 9,381 969,273 5 570 100.0Jan 09 62.8 -16.0 118.81 -17.5 74.61 -30.6 17,670 0.0 11,097 -16.0 1,318,419 -30.6 5 570 100.0Feb 09 72.8 -13.7 129.50 -19.4 94.32 -30.4 15,960 0.0 11,624 -13.7 1,505,306 -30.4 5 570 100.0Mar 09 69.4 -16.9 117.81 -15.3 81.77 -29.6 17,670 0.0 12,265 -16.9 1,444,955 -29.6 5 570 100.0Apr 09 57.6 -26.3 104.50 -21.4 60.16 -42.1 17,100 0.0 9,844 -26.3 1,028,718 -42.1 5 570 100.0

May 09 44.2 -27.3 91.12 -20.4 40.32 -42.1 17,670 0.0 7,818 -27.3 712,412 -42.1 5 570 100.0Jun 09 43.7 -21.4 79.77 -20.5 34.85 -37.6 17,100 0.0 7,470 -21.4 595,898 -37.6 5 570 100.0Jul 09 46.5 -20.8 76.01 -16.0 35.32 -33.5 17,670 0.0 8,210 -20.8 624,036 -33.5 5 570 100.0

Aug 09 47.1 -11.8 75.49 -15.7 35.53 -25.7 17,670 0.0 8,318 -11.8 627,887 -25.7 5 570 100.0Sep 09 38.2 -40.2 86.11 -18.3 32.93 -51.1 26,190 53.2 10,015 -8.4 862,386 -25.1 7 873 82.8Oct 09 39.7 -44.6 88.52 -18.4 35.15 -54.8 31,186 76.5 12,383 -2.2 1,096,137 -20.3 8 1,006 100.0Nov 09 48.5 -31.1 89.66 -15.6 43.53 -41.8 30,180 76.5 14,652 21.7 1,313,637 2.7 8 1,006 100.0Dec 09 38.6 -27.3 86.87 -15.9 33.54 -38.9 31,186 76.5 12,040 28.3 1,045,872 7.9 8 1,006 100.0Jan 10 48.1 -23.4 99.05 -16.6 47.64 -36.1 31,186 76.5 15,001 35.2 1,485,793 12.7 8 1,006 100.0Feb 10 63.2 -13.2 105.82 -18.3 66.87 -29.1 28,168 76.5 17,799 53.1 1,883,527 25.1 8 1,006 100.0Mar 10 73.5 5.8 105.02 -10.9 77.15 -5.7 31,186 76.5 22,912 86.8 2,406,113 66.5 8 1,006 100.0Apr 10 51.9 -9.9 91.14 -12.8 47.28 -21.4 30,180 76.5 15,655 59.0 1,426,796 38.7 8 1,006 100.0

May 10 45.8 3.5 83.57 -8.3 38.26 -5.1 31,186 76.5 14,277 82.6 1,193,169 67.5 8 1,006 100.0Jun 10 45.6 4.4 76.17 -4.5 34.75 -0.3 30,180 76.5 13,767 84.3 1,048,616 76.0 8 1,006 100.0Jul 10 39.9 -14.1 74.17 -2.4 29.61 -16.2 31,186 76.5 12,448 51.6 923,295 48.0 8 1,006 100.0

Aug 10 44.9 -4.5 75.60 0.1 33.97 -4.4 31,186 76.5 14,015 68.5 1,059,508 68.7 8 1,006 100.0Sep 10 50.4 31.8 85.80 -0.4 43.24 31.3 30,180 15.2 15,210 51.9 1,305,086 51.3 8 1,006 100.0Oct 10 62.7 57.8 88.38 -0.2 55.39 57.6 31,186 0.0 19,545 57.8 1,727,388 57.6 8 1,006 100.0Nov 10 73.1 50.5 87.85 -2.0 64.18 47.4 30,180 0.0 22,048 50.5 1,936,818 47.4 8 1,006 100.0Dec 10 59.7 54.6 88.00 1.3 52.51 56.6 31,186 0.0 18,608 54.6 1,637,548 56.6 8 1,006 100.0Jan 11 70.1 45.7 103.15 4.1 72.31 51.8 31,186 0.0 21,862 45.7 2,255,103 51.8 8 1,006 100.0Feb 11 82.1 29.9 107.39 1.5 88.17 31.9 28,168 0.0 23,126 29.9 2,483,560 31.9 8 1,006 100.0Mar 11 90.3 22.9 109.45 4.2 98.84 28.1 31,186 0.0 28,161 22.9 3,082,362 28.1 8 1,006 100.0Apr 11 74.9 44.4 98.47 8.0 73.74 56.0 30,180 0.0 22,602 44.4 2,225,539 56.0 8 1,006 100.0

May 11 73.4 60.3 89.46 7.0 65.66 71.6 31,186 0.0 22,889 60.3 2,047,559 71.6 8 1,006 100.0Jun 11 63.6 39.4 82.86 8.8 52.70 51.7 30,180 0.0 19,196 39.4 1,590,626 51.7 8 1,006 100.0Jul 11 62.1 55.5 78.83 6.3 48.94 65.3 31,186 0.0 19,360 55.5 1,526,126 65.3 8 1,006 100.0

Aug 11 65.4 45.4 81.00 7.1 52.94 55.8 31,186 0.0 20,383 45.4 1,651,064 55.8 8 1,006 100.0Sep 11 63.9 26.8 90.38 5.3 57.77 33.6 30,180 0.0 19,290 26.8 1,743,525 33.6 8 1,006 100.0Oct 11 72.6 15.8 95.27 7.8 69.14 24.8 31,186 0.0 22,633 15.8 2,156,141 24.8 8 1,006 100.0Nov 11 72.5 -0.7 95.56 8.8 69.30 8.0 30,180 0.0 21,885 -0.7 2,091,408 8.0 8 1,006 100.0Dec 11 60.1 0.7 92.32 4.9 55.48 5.6 31,186 0.0 18,739 0.7 1,730,060 5.6 8 1,006 100.0Jan 12 66.1 -5.7 112.58 9.1 74.39 2.9 31,186 0.0 20,607 -5.7 2,319,880 2.9 8 1,006 100.0Feb 12 83.7 2.0 116.98 8.9 97.92 11.1 28,168 0.0 23,579 2.0 2,758,332 11.1 8 1,006 100.0Mar 12 92.9 2.8 120.91 10.5 112.28 13.6 31,186 0.0 28,962 2.8 3,501,658 13.6 8 1,006 100.0Apr 12 72.3 -3.5 105.45 7.1 76.25 3.4 30,180 0.0 21,822 -3.5 2,301,175 3.4 8 1,006 100.0

May 12 66.0 -10.0 97.04 8.5 64.10 -2.4 31,186 0.0 20,598 -10.0 1,998,904 -2.4 8 1,006 100.0Jun 12 66.0 3.7 85.63 3.3 56.50 7.2 30,180 0.0 19,912 3.7 1,705,101 7.2 8 1,006 100.0Jul 12 59.3 -4.4 84.57 7.3 50.17 2.5 31,186 0.0 18,500 -4.4 1,564,616 2.5 8 1,006 100.0

Aug 12 57.7 -11.7 82.93 2.4 47.86 -9.6 31,186 0.0 17,996 -11.7 1,492,496 -9.6 8 1,006 100.0Sep 12 56.1 -12.3 93.70 3.7 52.53 -9.1 30,180 0.0 16,919 -12.3 1,585,308 -9.1 8 1,006 100.0Oct 12 67.3 -7.3 100.32 5.3 67.49 -2.4 31,186 0.0 20,980 -7.3 2,104,663 -2.4 8 1,006 100.0Nov 12 70.0 -3.4 98.14 2.7 68.72 -0.8 30,180 0.0 21,132 -3.4 2,073,827 -0.8 8 1,006 100.0Dec 12 53.7 -10.7 94.13 2.0 50.51 -9.0 31,186 0.0 16,735 -10.7 1,575,219 -9.0 8 1,006 100.0Jan 13 61.0 -7.7 114.77 1.9 70.01 -5.9 31,186 0.0 19,023 -7.7 2,183,231 -5.9 8 1,006 100.0Feb 13 80.1 -4.3 123.26 5.4 98.78 0.9 28,168 0.0 22,574 -4.3 2,782,547 0.9 8 1,006 100.0Mar 13 86.3 -7.0 125.37 3.7 108.24 -3.6 31,186 0.0 26,926 -7.0 3,375,628 -3.6 8 1,006 100.0Apr 13 67.4 -6.7 111.83 6.0 75.42 -1.1 30,180 0.0 20,354 -6.7 2,276,093 -1.1 8 1,006 100.0

May 13 64.0 -3.2 99.17 2.2 63.42 -1.1 31,186 0.0 19,945 -3.2 1,977,882 -1.1 8 1,006 100.0Jun 13 64.9 -1.6 88.11 2.9 57.18 1.2 30,180 0.0 19,587 -1.6 1,725,826 1.2 8 1,006 100.0Jul 13 62.9 6.0 86.27 2.0 54.27 8.2 31,186 0.0 19,619 6.0 1,692,510 8.2 8 1,006 100.0

Aug 13 64.2 11.3 85.47 3.1 54.90 14.7 31,186 0.0 20,032 11.3 1,712,233 14.7 8 1,006 100.0Sep 13 66.3 18.3 95.09 1.5 63.04 20.0 30,180 0.0 20,009 18.3 1,902,565 20.0 8 1,006 100.0Oct 13 75.4 12.1 103.62 3.3 78.16 15.8 31,186 0.0 23,524 12.1 2,437,542 15.8 8 1,006 100.0Nov 13 81.2 15.9 99.05 0.9 80.38 17.0 30,180 0.0 24,492 15.9 2,425,917 17.0 8 1,006 100.0Dec 13 68.0 26.7 97.17 3.2 66.08 30.8 31,186 0.0 21,207 26.7 2,060,677 30.8 8 1,006 100.0Jan 14 72.6 19.0 116.51 1.5 84.60 20.9 31,186 0.0 22,645 19.0 2,638,438 20.9 8 1,006 100.0Feb 14 89.3 11.5 126.22 2.4 112.75 14.1 28,168 0.0 25,161 11.5 3,175,837 14.1 8 1,006 100.0Mar 14 90.9 5.3 132.82 5.9 120.79 11.6 31,186 0.0 28,361 5.3 3,766,978 11.6 8 1,006 100.0Apr 14 79.4 17.8 114.89 2.7 91.28 21.0 30,180 0.0 23,977 17.8 2,754,801 21.0 8 1,006 100.0

May 14 73.3 14.7 98.79 -0.4 72.46 14.3 31,186 0.0 22,874 14.7 2,259,836 14.3 8 1,006 100.0Jun 14 60.4 -6.9 86.24 -2.1 52.13 -8.8 30,180 0.0 18,242 -6.9 1,573,234 -8.8 8 1,006 100.0Jul 14 56.1 -10.8 84.67 -1.9 47.53 -12.4 31,186 0.0 17,506 -10.8 1,482,256 -12.4 8 1,006 100.0

Aug 14 57.1 -11.0 85.13 -0.4 48.64 -11.4 31,186 0.0 17,821 -11.0 1,517,025 -11.4 8 1,006 100.0Sep 14 60.4 -8.9 97.53 2.6 58.89 -6.6 30,180 0.0 18,221 -8.9 1,777,159 -6.6 8 1,006 100.0Oct 14 72.4 -4.0 101.72 -1.8 73.69 -5.7 31,186 0.0 22,592 -4.0 2,298,150 -5.7 8 1,006 100.0


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Tab 9 - Classic


Date Occupancy ADR RevPar Supply Demand Revenue Census & Sample %

This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg This Year % Chg Census Props Census Rooms

% Rooms STAR

Participants

Jan 08 74.7 143.96 107.57 17,670 13,204 1,900,818 5 570 100.0Feb 08 84.4 160.64 135.51 15,960 13,463 2,162,739 5 570 100.0Mar 08 83.6 139.09 116.23 17,670 14,766 2,053,793 5 570 100.0Apr 08 78.2 132.99 103.93 17,100 13,364 1,777,222 5 570 100.0

May 08 60.8 114.43 69.62 17,670 10,750 1,230,103 5 570 100.0Jun 08 55.6 100.36 55.80 17,100 9,508 954,251 5 570 100.0Jul 08 58.7 90.48 53.11 17,670 10,372 938,497 5 570 100.0

Aug 08 53.4 89.57 47.80 17,670 9,429 844,562 5 570 100.0Sep 08 63.9 105.42 67.37 17,100 10,928 1,152,066 5 570 100.0Oct 08 71.7 108.54 77.80 17,670 12,666 1,374,708 5 570 100.0Nov 08 70.4 106.22 74.81 17,100 12,044 1,279,322 5 570 100.0Dec 08 53.1 103.32 54.85 17,670 9,381 969,273 5 570 100.0

Oct YTD 2008 68.4 121.48 83.04 173,280 118,450 14,388,759Total 2008 67.2 118.94 79.97 208,050 139,875 16,637,354

Jan 09 62.8 -16.0 118.81 -17.5 74.61 -30.6 17,670 0.0 11,097 -16.0 1,318,419 -30.6 5 570 100.0Feb 09 72.8 -13.7 129.50 -19.4 94.32 -30.4 15,960 0.0 11,624 -13.7 1,505,306 -30.4 5 570 100.0Mar 09 69.4 -16.9 117.81 -15.3 81.77 -29.6 17,670 0.0 12,265 -16.9 1,444,955 -29.6 5 570 100.0Apr 09 57.6 -26.3 104.50 -21.4 60.16 -42.1 17,100 0.0 9,844 -26.3 1,028,718 -42.1 5 570 100.0

May 09 44.2 -27.3 91.12 -20.4 40.32 -42.1 17,670 0.0 7,818 -27.3 712,412 -42.1 5 570 100.0Jun 09 43.7 -21.4 79.77 -20.5 34.85 -37.6 17,100 0.0 7,470 -21.4 595,898 -37.6 5 570 100.0Jul 09 46.5 -20.8 76.01 -16.0 35.32 -33.5 17,670 0.0 8,210 -20.8 624,036 -33.5 5 570 100.0

Aug 09 47.1 -11.8 75.49 -15.7 35.53 -25.7 17,670 0.0 8,318 -11.8 627,887 -25.7 5 570 100.0Sep 09 38.2 -40.2 86.11 -18.3 32.93 -51.1 26,190 53.2 10,015 -8.4 862,386 -25.1 7 873 82.8Oct 09 39.7 -44.6 88.52 -18.4 35.15 -54.8 31,186 76.5 12,383 -2.2 1,096,137 -20.3 8 1,006 100.0Nov 09 48.5 -31.1 89.66 -15.6 43.53 -41.8 30,180 76.5 14,652 21.7 1,313,637 2.7 8 1,006 100.0Dec 09 38.6 -27.3 86.87 -15.9 33.54 -38.9 31,186 76.5 12,040 28.3 1,045,872 7.9 8 1,006 100.0

Oct YTD 2009 50.6 -26.0 99.11 -18.4 50.11 -39.7 195,886 13.0 99,044 -16.4 9,816,154 -31.8Total 2009 48.9 -27.3 96.84 -18.6 47.33 -40.8 257,252 23.6 125,736 -10.1 12,175,663 -26.8

Jan 10 48.1 -23.4 99.05 -16.6 47.64 -36.1 31,186 76.5 15,001 35.2 1,485,793 12.7 8 1,006 100.0Feb 10 63.2 -13.2 105.82 -18.3 66.87 -29.1 28,168 76.5 17,799 53.1 1,883,527 25.1 8 1,006 100.0Mar 10 73.5 5.8 105.02 -10.9 77.15 -5.7 31,186 76.5 22,912 86.8 2,406,113 66.5 8 1,006 100.0Apr 10 51.9 -9.9 91.14 -12.8 47.28 -21.4 30,180 76.5 15,655 59.0 1,426,796 38.7 8 1,006 100.0

May 10 45.8 3.5 83.57 -8.3 38.26 -5.1 31,186 76.5 14,277 82.6 1,193,169 67.5 8 1,006 100.0Jun 10 45.6 4.4 76.17 -4.5 34.75 -0.3 30,180 76.5 13,767 84.3 1,048,616 76.0 8 1,006 100.0Jul 10 39.9 -14.1 74.17 -2.4 29.61 -16.2 31,186 76.5 12,448 51.6 923,295 48.0 8 1,006 100.0

Aug 10 44.9 -4.5 75.60 0.1 33.97 -4.4 31,186 76.5 14,015 68.5 1,059,508 68.7 8 1,006 100.0Sep 10 50.4 31.8 85.80 -0.4 43.24 31.3 30,180 15.2 15,210 51.9 1,305,086 51.3 8 1,006 100.0Oct 10 62.7 57.8 88.38 -0.2 55.39 57.6 31,186 0.0 19,545 57.8 1,727,388 57.6 8 1,006 100.0Nov 10 73.1 50.5 87.85 -2.0 64.18 47.4 30,180 0.0 22,048 50.5 1,936,818 47.4 8 1,006 100.0Dec 10 59.7 54.6 88.00 1.3 52.51 56.6 31,186 0.0 18,608 54.6 1,637,548 56.6 8 1,006 100.0

Oct YTD 2010 52.5 3.9 90.02 -9.2 47.28 -5.7 305,824 56.1 160,629 62.2 14,459,291 47.3Total 2010 54.8 12.2 89.59 -7.5 49.11 3.8 367,190 42.7 201,285 60.1 18,033,657 48.1

Jan 11 70.1 45.7 103.15 4.1 72.31 51.8 31,186 0.0 21,862 45.7 2,255,103 51.8 8 1,006 100.0Feb 11 82.1 29.9 107.39 1.5 88.17 31.9 28,168 0.0 23,126 29.9 2,483,560 31.9 8 1,006 100.0Mar 11 90.3 22.9 109.45 4.2 98.84 28.1 31,186 0.0 28,161 22.9 3,082,362 28.1 8 1,006 100.0Apr 11 74.9 44.4 98.47 8.0 73.74 56.0 30,180 0.0 22,602 44.4 2,225,539 56.0 8 1,006 100.0

May 11 73.4 60.3 89.46 7.0 65.66 71.6 31,186 0.0 22,889 60.3 2,047,559 71.6 8 1,006 100.0Jun 11 63.6 39.4 82.86 8.8 52.70 51.7 30,180 0.0 19,196 39.4 1,590,626 51.7 8 1,006 100.0Jul 11 62.1 55.5 78.83 6.3 48.94 65.3 31,186 0.0 19,360 55.5 1,526,126 65.3 8 1,006 100.0

Aug 11 65.4 45.4 81.00 7.1 52.94 55.8 31,186 0.0 20,383 45.4 1,651,064 55.8 8 1,006 100.0Sep 11 63.9 26.8 90.38 5.3 57.77 33.6 30,180 0.0 19,290 26.8 1,743,525 33.6 8 1,006 100.0Oct 11 72.6 15.8 95.27 7.8 69.14 24.8 31,186 0.0 22,633 15.8 2,156,141 24.8 8 1,006 100.0Nov 11 72.5 -0.7 95.56 8.8 69.30 8.0 30,180 0.0 21,885 -0.7 2,091,408 8.0 8 1,006 100.0Dec 11 60.1 0.7 92.32 4.9 55.48 5.6 31,186 0.0 18,739 0.7 1,730,060 5.6 8 1,006 100.0

Oct YTD 2011 71.8 36.7 94.59 5.1 67.89 43.6 305,824 0.0 219,502 36.7 20,761,605 43.6Total 2011 70.8 29.2 94.50 5.5 66.95 36.3 367,190 0.0 260,126 29.2 24,583,073 36.3

Jan 12 66.1 -5.7 112.58 9.1 74.39 2.9 31,186 0.0 20,607 -5.7 2,319,880 2.9 8 1,006 100.0Feb 12 83.7 2.0 116.98 8.9 97.92 11.1 28,168 0.0 23,579 2.0 2,758,332 11.1 8 1,006 100.0Mar 12 92.9 2.8 120.91 10.5 112.28 13.6 31,186 0.0 28,962 2.8 3,501,658 13.6 8 1,006 100.0Apr 12 72.3 -3.5 105.45 7.1 76.25 3.4 30,180 0.0 21,822 -3.5 2,301,175 3.4 8 1,006 100.0

May 12 66.0 -10.0 97.04 8.5 64.10 -2.4 31,186 0.0 20,598 -10.0 1,998,904 -2.4 8 1,006 100.0Jun 12 66.0 3.7 85.63 3.3 56.50 7.2 30,180 0.0 19,912 3.7 1,705,101 7.2 8 1,006 100.0Jul 12 59.3 -4.4 84.57 7.3 50.17 2.5 31,186 0.0 18,500 -4.4 1,564,616 2.5 8 1,006 100.0

Aug 12 57.7 -11.7 82.93 2.4 47.86 -9.6 31,186 0.0 17,996 -11.7 1,492,496 -9.6 8 1,006 100.0Sep 12 56.1 -12.3 93.70 3.7 52.53 -9.1 30,180 0.0 16,919 -12.3 1,585,308 -9.1 8 1,006 100.0Oct 12 67.3 -7.3 100.32 5.3 67.49 -2.4 31,186 0.0 20,980 -7.3 2,104,663 -2.4 8 1,006 100.0Nov 12 70.0 -3.4 98.14 2.7 68.72 -0.8 30,180 0.0 21,132 -3.4 2,073,827 -0.8 8 1,006 100.0Dec 12 53.7 -10.7 94.13 2.0 50.51 -9.0 31,186 0.0 16,735 -10.7 1,575,219 -9.0 8 1,006 100.0

Oct YTD 2012 68.6 -4.4 101.64 7.5 69.75 2.7 305,824 0.0 209,875 -4.4 21,332,133 2.7Total 2012 67.5 -4.8 100.84 6.7 68.03 1.6 367,190 0.0 247,742 -4.8 24,981,179 1.6

Jan 13 61.0 -7.7 114.77 1.9 70.01 -5.9 31,186 0.0 19,023 -7.7 2,183,231 -5.9 8 1,006 100.0Feb 13 80.1 -4.3 123.26 5.4 98.78 0.9 28,168 0.0 22,574 -4.3 2,782,547 0.9 8 1,006 100.0Mar 13 86.3 -7.0 125.37 3.7 108.24 -3.6 31,186 0.0 26,926 -7.0 3,375,628 -3.6 8 1,006 100.0Apr 13 67.4 -6.7 111.83 6.0 75.42 -1.1 30,180 0.0 20,354 -6.7 2,276,093 -1.1 8 1,006 100.0

May 13 64.0 -3.2 99.17 2.2 63.42 -1.1 31,186 0.0 19,945 -3.2 1,977,882 -1.1 8 1,006 100.0Jun 13 64.9 -1.6 88.11 2.9 57.18 1.2 30,180 0.0 19,587 -1.6 1,725,826 1.2 8 1,006 100.0Jul 13 62.9 6.0 86.27 2.0 54.27 8.2 31,186 0.0 19,619 6.0 1,692,510 8.2 8 1,006 100.0

Aug 13 64.2 11.3 85.47 3.1 54.90 14.7 31,186 0.0 20,032 11.3 1,712,233 14.7 8 1,006 100.0Sep 13 66.3 18.3 95.09 1.5 63.04 20.0 30,180 0.0 20,009 18.3 1,902,565 20.0 8 1,006 100.0Oct 13 75.4 12.1 103.62 3.3 78.16 15.8 31,186 0.0 23,524 12.1 2,437,542 15.8 8 1,006 100.0Nov 13 81.2 15.9 99.05 0.9 80.38 17.0 30,180 0.0 24,492 15.9 2,425,917 17.0 8 1,006 100.0Dec 13 68.0 26.7 97.17 3.2 66.08 30.8 31,186 0.0 21,207 26.7 2,060,677 30.8 8 1,006 100.0

Oct YTD 2013 69.2 0.8 104.29 2.6 72.15 3.4 305,824 0.0 211,593 0.8 22,066,057 3.4Total 2013 70.1 3.9 103.20 2.3 72.31 6.3 367,190 0.0 257,292 3.9 26,552,651 6.3

Jan 14 72.6 19.0 116.51 1.5 84.60 20.9 31,186 0.0 22,645 19.0 2,638,438 20.9 8 1,006 100.0Feb 14 89.3 11.5 126.22 2.4 112.75 14.1 28,168 0.0 25,161 11.5 3,175,837 14.1 8 1,006 100.0Mar 14 90.9 5.3 132.82 5.9 120.79 11.6 31,186 0.0 28,361 5.3 3,766,978 11.6 8 1,006 100.0Apr 14 79.4 17.8 114.89 2.7 91.28 21.0 30,180 0.0 23,977 17.8 2,754,801 21.0 8 1,006 100.0

May 14 73.3 14.7 98.79 -0.4 72.46 14.3 31,186 0.0 22,874 14.7 2,259,836 14.3 8 1,006 100.0Jun 14 60.4 -6.9 86.24 -2.1 52.13 -8.8 30,180 0.0 18,242 -6.9 1,573,234 -8.8 8 1,006 100.0Jul 14 56.1 -10.8 84.67 -1.9 47.53 -12.4 31,186 0.0 17,506 -10.8 1,482,256 -12.4 8 1,006 100.0

Aug 14 57.1 -11.0 85.13 -0.4 48.64 -11.4 31,186 0.0 17,821 -11.0 1,517,025 -11.4 8 1,006 100.0Sep 14 60.4 -8.9 97.53 2.6 58.89 -6.6 30,180 0.0 18,221 -8.9 1,777,159 -6.6 8 1,006 100.0Oct 14 72.4 -4.0 101.72 -1.8 73.69 -5.7 31,186 0.0 22,592 -4.0 2,298,150 -5.7 8 1,006 100.0

Oct YTD 2014 71.1 2.7 106.92 2.5 76.00 5.3 305,824 0.0 217,400 2.7 23,243,714 5.3STR’s Trend Report is a publication of STR, Inc. and is intended solely for use by paid subscribers. Reproduction or distribution of the Trend Report, in whole or part, without written permission of STR is prohibited and subject to legal action. Site licenses are available. Ownership, distribution and use of the Trend Report and its contents are subject to the terms set forth in the contract you have entered into with STR. Source 2014 STR, Inc.

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Tab 10 - Response Report


STR

Code Name of Establishment City & State Zip Code Class Aff Date Open Date Rooms

Chg in

Rms J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

37195 Holiday Inn Express & Suites Phoenix Chandler Phoenix, AZ 85044 Upper Midscale Class Oct 1998 Oct 1998 125 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

18696 Radisson Phoenix Chandler Chandler, AZ 85226 Upscale Class Jan 2007 Oct 1987 159 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

37727 Residence Inn Phoenix Chandler Fashion Center Chandler, AZ 85226 Upscale Class Jan 2000 Jan 2000 102 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

33608 Hampton Inn Phoenix Chandler Chandler, AZ 85226 Upper Midscale Class May 1997 May 1997 101 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

36311 Homewood Suites Phoenix Chandler (I) Chandler, AZ 85226 Upscale Class Apr 1998 Apr 1998 83 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

59947 Hampton Inn & Suites Phoenix Chandler Chandler, AZ 85286 Upper Midscale Class Sep 2009 Sep 2009 153 Y ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

59788 Courtyard Phoenix Chandler Fashion Center Chandler, AZ 85286 Upscale Class Sep 2009 Sep 2009 150 Y ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

59568 Homewood Suites Phoenix Chandler (II) Chandler, AZ 85286 Upscale Class Oct 2009 Oct 2009 133 Y ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Total Properties: 8 1006 ○ - Monthly data received by STR126 ● - Monthly and daily data received by STR

Blank - No data received by STRY - (Chg in Rms) Property has experienced a room addition or drop during the time period of the report.


2012 2013 2014

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125

Land Cost (LC) $750,000

per room $6,000

Development Costs (DC) $2,000,000

per room $16,000

Site Improvement & Building Construction (SI&BC) $10,000,000

per room $80,000

Furniture, Fixtures, & Equipment (FF&E) $2,750,000

per room $22,000

Pre-Opening & Working Capital (PO&WC) $1,250,000per room $10,000

Total Project Costs: $16,750,000per room $134,000

Sources of Funding

$10,050,000 60% Debt Interest: 5.50%$6,700,000 40% Debt Terms: 20

$16,750,000 Debt Service: $829,592

* Pricing noted above estimated based on current cost per room of an extended stay hotel; pricing may vary based on land cost and confirmed build

Number of Units:

Extended Stay Brand

(Example Residence Inn )

Maricopa, AZ

Total:

Expected Cash InjectionBank Loan

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Rooms:

125

January February March April May June July August September October November December TOTALLodging Rooms Available 3,875 3,500 3,875 3,750 3,875 3,750 3,875 3,875 3,750 3,875 3,750 3,875 45,625Lodging Occupancy % 65% 80% 85% 70% 65% 60% 55% 55% 60% 65% 70% 60% 65.7%Total Occ. Rooms 2,519 2,800 3,294 2,625 2,519 2,250 2,131 2,131 2,250 2,519 2,625 2,325 29,988Average Daily Rate (ADR) $119.00 $129.00 $129.00 $119.00 $109.00 $109.00 $99.00 $99.00 $109.00 $109.00 $119.00 $119.00 $115.01Revenue Per Available Room (REVPAR) $77.35 $103.20 $109.65 $83.30 $70.85 $65.40 $54.45 $54.45 $65.40 $70.85 $83.30 $71.40 $75.59

REVENUE: Guest Rooms 299,731 361,200 424,894 312,375 274,544 245,250 210,994 210,994 245,250 274,544 312,375 276,675 3,448,825 Telephone / Misc. Revenue 126 140 165 131 126 113 107 107 113 126 131 116 1,499 Meeting Room Revenue 2,519 2,800 3,294 2,625 2,519 2,250 2,131 2,131 2,250 2,519 2,625 2,325 29,988 Market Revenue 3,148 3,500 4,117 3,281 3,148 2,813 2,664 2,664 2,813 3,148 3,281 2,906 37,484

TOTAL HOTEL REVENUE 305,524 367,640 432,469 318,413 280,337 250,425 215,896 215,896 250,425 280,337 318,413 282,023 3,517,796

HOTEL PAYROLL EXPENSE General Manager 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 65,000 Assistant Manager 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 45,000 Sales Manager 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000 Operations Manager 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 Housekeeping 11,334 12,600 14,822 11,813 11,334 10,125 9,591 9,591 10,125 11,334 11,813 10,463 134,944 Laundry 2,141 2,380 2,800 2,231 2,141 1,913 1,812 1,812 1,913 2,141 2,231 1,976 25,489 Maintenance 2,519 2,800 3,294 2,625 2,519 2,250 2,131 2,131 2,250 2,519 2,625 2,325 29,988 Front Desk 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 Food and Beverage 3,778 4,200 4,941 3,938 3,778 3,375 3,197 3,197 3,375 3,778 3,938 3,488 44,981 Employee Benefits 1,664 1,753 1,908 1,698 1,664 1,580 1,543 1,543 1,580 1,664 1,698 1,603 19,896 Workers Comp Insurance 882 980 1,153 919 882 788 746 746 788 882 919 814 10,496 Payroll Tax 5,519 5,818 6,344 5,632 5,519 5,233 5,107 5,107 5,233 5,519 5,632 5,313 65,974TOTAL HOTEL PAYROLL 49,670 52,364 57,093 50,688 49,670 47,096 45,959 45,959 47,096 49,670 50,688 47,814 593,768

HOTEL OPERATING EXPENSE Cleaning Supplies 1,133 1,260 1,482 1,181 1,133 1,013 959 959 1,013 1,133 1,181 1,046 13,494 Laundry Supplies 504 560 659 525 504 450 426 426 450 504 525 465 5,998 Linens 1,385 1,540 1,812 1,444 1,385 1,238 1,172 1,172 1,238 1,385 1,444 1,279 16,493 Guest Supplies 2,519 2,800 3,294 2,625 2,519 2,250 2,131 2,131 2,250 2,519 2,625 2,325 29,988 Operating Supplies 1,889 2,100 2,470 1,969 1,889 1,688 1,598 1,598 1,688 1,889 1,969 1,744 22,491 Complimentary Breakfast 7,556 8,400 9,881 7,875 7,556 6,750 6,394 6,394 6,750 7,556 7,875 6,975 89,963 Evening Social 2,519 2,800 3,294 2,625 2,519 2,250 2,131 2,131 2,250 2,519 2,625 2,325 29,988 Repairs & Maintenance 1,259 1,400 1,647 1,313 1,259 1,125 1,066 1,066 1,125 1,259 1,313 1,163 14,994 Elevator Contracts 504 560 659 525 504 450 426 426 450 504 525 465 5,998 Fire Protection & Contracts 504 560 659 525 504 450 426 426 450 504 525 465 5,998 Electrical & Mechanical 756 840 988 788 756 675 639 639 675 756 788 698 8,996 Plumbing 252 280 329 263 252 225 213 213 225 252 263 233 2,999 HVAC Maintenance 630 700 823 656 630 563 533 533 563 630 656 581 7,497 Grounds/Landscaping 1,259 1,400 1,647 1,313 1,259 1,125 1,066 1,066 1,125 1,259 1,313 1,163 14,994 Pool Expenses 630 700 823 656 630 563 533 533 563 630 656 581 7,497 Franchise Fee 14,537 17,518 20,607 15,150 13,315 11,895 10,233 10,233 11,895 13,315 15,150 13,419 167,268 Marketing / Advertising 7,343 8,849 10,410 7,653 6,726 6,009 5,169 5,169 6,009 6,726 7,653 6,779 84,496 Frequent Stay Program Fees 3,297 3,973 4,674 3,436 3,020 2,698 2,321 2,321 2,698 3,020 3,436 3,043 37,937 Travel Agent Fees 4,496 5,418 6,373 4,686 4,118 3,679 3,165 3,165 3,679 4,118 4,686 4,150 51,732 Reservations Expense 2,997 3,612 4,249 3,124 2,745 2,453 2,110 2,110 2,453 2,745 3,124 2,767 34,488 Market Expense 1,574 1,750 2,059 1,641 1,574 1,406 1,332 1,332 1,406 1,574 1,641 1,453 18,742 Office Supplies 882 980 1,153 919 882 788 746 746 788 882 919 814 10,496 Utilities (Electricity/Gas/Fuel) 2,750 3,309 3,892 2,866 5,607 7,513 8,636 8,636 7,513 3,504 3,184 2,820 60,229 Water & Sewer 1,986 2,390 2,811 2,070 1,822 1,628 1,403 1,403 1,628 1,822 2,070 1,833 22,866 Waste Removal 764 919 1,081 796 701 626 540 540 626 701 796 705 8,794 Telephone 63 70 82 66 63 56 53 53 56 63 66 58 750 Internet Expense 875 875 875 875 875 875 875 875 875 875 875 875 10,500 Cable 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Dues & Subscriptions 378 420 494 394 378 338 320 320 338 378 394 349 4,498 Licenses & Permits 302 336 395 315 302 270 256 256 270 302 315 279 3,599 Credit Card Expense 7,556 8,400 9,881 7,875 7,556 6,750 6,394 6,394 6,750 7,556 7,875 6,975 89,963 Management Fee 15,276 18,382 21,623 15,921 14,017 12,521 10,795 10,795 12,521 14,017 15,921 14,101 175,890TOTAL OPERATING EXPENSES 89,375 104,101 122,128 93,066 88,000 81,315 75,061 75,061 81,315 85,898 93,384 82,926 1,071,632

INCOME BEFORE FIXED EXPENSES 166,479 211,175 253,248 174,659 142,666 122,014 94,875 94,875 122,014 144,769 174,340 151,282 1,852,397Gross Operating Profit (GOP) 54.49% 57.44% 58.56% 54.85% 50.89% 48.72% 43.95% 43.95% 48.72% 51.64% 54.75% 53.64% 52.66%

RESERVES & FIXED EXPENSES Debt Service 69,133 69,133 69,133 69,133 69,133 69,133 69,133 69,133 69,133 69,133 69,133 69,133 829,592 Real Estate Taxes 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 Insurance 3,819 4,596 5,406 3,980 3,504 3,130 2,699 2,699 3,130 3,504 3,980 3,525 43,972 Reserves For Replacement 12,221 14,706 17,299 12,737 11,213 10,017 8,636 8,636 10,017 11,213 12,737 11,281 140,712

TOTAL RESERVES & FIXED 100,173 103,434 106,837 100,849 98,850 97,280 95,467 95,467 97,280 98,850 100,849 98,939 1,194,276 CASH FLOW BEFORE DEBT 147,660 191,579 232,842 155,679 124,162 103,884 77,177 77,177 103,884 126,265 155,360 132,757 1,628,424 NET INCOME (LOSS) $66,307 $107,741 $146,411 $73,809 $43,816 $24,734 ($592) ($592) $24,734 $45,918 $73,491 $52,343 658,120

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNTLodging Rooms Available 45,625 45,625 45,625 45,625 45,625Lodging Occupancy % 65.7% 69.0% 72.5% 73.9% 75.0%Total Occ. Rooms 29,988 31,487 33,061 33,722 34,228 Average Daily Rate $115.01 $118.46 $122.01 $123.23 $124.47

REVENUE: Guest Rooms 3,448,825 98.0% 3,729,904 98.1% 4,033,891 98.1% 4,155,715 98.2% 4,260,231 98.2% Telephone / Misc. Revenue 1,499 0.0% 1,574 0.0% 1,653 0.0% 1,686 0.0% 1,711 0.0% Meeting Room Revenue 29,988 0.9% 31,487 0.8% 33,061 0.8% 33,722 0.8% 34,228 0.8% Market Revenue 37,484 1.1% 39,359 1.0% 41,327 1.0% 42,153 1.0% 42,785 1.0% ======= ======= ======= ======= =======TOTAL HOTEL REVENUE 3,517,796 100.0 3,802,324 100.0 4,109,932 100.0 4,233,277 100.0 4,338,956 100.0

Hotel Expenses

Five Year Numbers Projected Summary

Numbers projected and compared to similar markets for a hotel with the following rooms:

NOTE: The above information is a forwards looking projection of anticipated expenses and profits with regard to this project based on the professional experience of Core Distinction Group LLC (CDG) participation in other projects, similar in nature. Occupancy and ADR projections derived from market data trends reported by Smith Travel Research (STR) in the market's proximity along with to date rate shopping of local and surrounding hotels. This projection could change due to changes in the economy, both locally and overall, the acceptance of the project by the local community and patrons and the fact that CDG has not been involved in a project in this area and in a municipality with these demographics in the past. Thereby, all investors understand and acknowledge that these forward looking projections are not warranted by CDG and are subject to change and fluctuation.

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Year 1 % Year 2 % Year 3 % Year 4 % Year 5 %

Lodging Rooms Available 45,625 45,625 45,625 45,625 45,625Lodging Occupancy % 65.7% 65.7% 69.0% 69.0% 72.5% 72.5% 73.9% 73.9% 75.0% 75.0%Total Occ. Rooms 29,988 31,487 33,061 33,722 34,228Average Daily Rate $115.01 $118.46 $122.01 $123.23 $124.47REVENUE:

Guest Rooms 3,448,825 98.04% 3,729,904 98.10% 4,033,891 98.15% 4,155,715 98.17% 4,260,231 98.19% Telephone / Misc. Revenue 1,499 0.04% 1,574 0.04% 1,653 0.04% 1,686 0.04% 1,711 0.04% Meeting Room Revenue 29,988 0.85% 31,487 0.83% 33,061 0.80% 33,722 0.80% 34,228 0.79% Market Revenue 37,484 1.07% 39,359 1.04% 41,327 1.01% 42,153 1.00% 42,785 0.99%TOTAL HOTEL REVENUE 3,517,796 100% 3,802,324 100% 4,109,932 100% 4,233,277 100% 4,338,956 100%

HOTEL PAYROLL EXPENSE

General Manager 65,000 1.88% 68,250 1.83% 71,663 1.78% 75,246 1.81% 79,008 1.85% Assistant Manager 45,000 1.30% 47,250 1.27% 49,613 1.23% 52,093 1.25% 54,698 1.28% Sales Manager 50,000 1.45% 52,500 1.41% 55,125 1.37% 57,881 1.39% 60,775 1.43% Operations Manager 30,000 0.87% 30,900 0.83% 31,827 0.79% 32,782 0.79% 33,765 0.79% Housekeeping 134,944 3.84% 141,691 3.73% 148,775 3.62% 151,751 3.58% 154,027 3.55% Laundry 25,489 0.72% 26,764 0.70% 28,102 0.68% 28,664 0.68% 29,094 0.67% Maintenance 29,988 0.85% 31,487 0.83% 33,061 0.80% 33,722 0.80% 34,228 0.79% Front Desk 72,000 2.05% 74,160 1.95% 76,385 1.86% 78,676 1.86% 81,037 1.87% Food and Beverage 44,981 1.28% 46,331 1.22% 47,721 1.16% 49,152 1.16% 50,627 1.17% Employee Benefits 19,896 0.57% 20,773 0.55% 21,691 0.53% 22,399 0.53% 23,090 0.53% Workers Comp Insurance 10,496 0.30% 11,020 0.29% 11,571 0.28% 11,803 0.28% 11,980 0.28% Payroll Tax 65,974 1.88% 68,891 1.81% 71,942 1.75% 74,271 1.75% 76,541 1.76%TOTAL HOTEL PAYROLL 593,768 16.88% 620,017 16.31% 647,475 15.75% 668,441 15.79% 688,871 15.88%

HOTEL OPERATING EXPENSE

Cleaning Supplies 13,494 0.38% 14,169 0.37% 14,878 0.36% 15,175 0.36% 15,403 0.35% Laundry Supplies 5,998 0.17% 6,297 0.17% 6,612 0.16% 6,744 0.16% 6,846 0.16% Linens 16,493 0.47% 17,318 0.46% 18,184 0.44% 18,547 0.44% 18,826 0.43% Guest Supplies 29,988 0.85% 31,487 0.83% 33,061 0.80% 33,722 0.80% 34,228 0.79% Operating Supplies 22,491 0.64% 23,615 0.62% 24,796 0.60% 25,292 0.60% 25,671 0.59% Complimentary Breakfast 89,963 2.56% 94,461 2.48% 99,184 2.41% 101,167 2.39% 102,685 2.37% Evening Social 29,988 0.85% 31,487 0.83% 33,061 0.80% 33,722 0.80% 34,228 0.79% Repairs & Maintenance 14,994 0.43% 15,743 0.41% 16,531 0.40% 16,861 0.40% 17,114 0.39% Elevator Contracts 5,998 0.17% 6,297 0.17% 6,612 0.16% 6,744 0.16% 6,846 0.16% Fire Protection & Contracts 5,998 0.17% 6,297 0.17% 6,612 0.16% 6,744 0.16% 6,846 0.16% Electrical & Mechanical 8,996 0.26% 9,446 0.25% 9,918 0.24% 10,117 0.24% 10,268 0.24% Plumbing 2,999 0.09% 3,149 0.08% 3,306 0.08% 3,372 0.08% 3,423 0.08% HVAC Maintenance 7,497 0.21% 7,872 0.21% 8,265 0.20% 8,431 0.20% 8,557 0.20% Grounds/Landscaping 14,994 0.43% 15,743 0.41% 16,531 0.40% 16,861 0.40% 17,114 0.39% Pool Expenses 7,497 0.21% 7,872 0.21% 8,265 0.20% 8,431 0.20% 8,557 0.20% Franchise Fee 167,268 4.75% 180,900 4.76% 195,644 4.76% 201,552 4.76% 206,621 4.76% Marketing / Advertising 84,496 2.40% 91,383 2.40% 98,830 2.40% 101,815 2.41% 104,376 2.41% Frequent Stay Program 37,937 1.08% 41,029 1.08% 44,373 1.08% 45,713 1.08% 46,863 1.08% Travel Agent Fees 51,732 1.47% 55,949 1.47% 60,508 1.47% 62,336 1.47% 63,903 1.47% Reservations Expense 34,488 0.98% 37,299 0.98% 40,339 0.98% 41,557 0.98% 42,602 0.98% Market Expense 18,742 0.53% 19,679 0.52% 20,663 0.50% 21,077 0.50% 21,393 0.49% Office Supplies 10,496 0.30% 11,020 0.29% 11,571 0.28% 11,803 0.28% 11,980 0.28% Utilities (Electricity/Gas/Fuel) 56,988 1.62% 61,598 1.62% 66,581 1.62% 68,579 1.62% 70,291 1.62% Water & Sewer 22,866 0.65% 24,715 0.65% 26,715 0.65% 27,516 0.65% 28,203 0.65% Waste Removal 8,794 0.25% 9,506 0.25% 10,275 0.25% 10,583 0.25% 10,847 0.25% Telephone 750 0.02% 787 0.02% 827 0.02% 843 0.02% 856 0.02% Internet Expense 10,500 0.30% 11,025 0.29% 11,576 0.28% 12,155 0.29% 12,763 0.29% Cable 12,000 0.34% 12,971 0.34% 14,020 0.34% 14,441 0.34% 14,801 0.34% Dues & Subscriptions 4,498 0.13% 4,723 0.12% 4,959 0.12% 5,058 0.12% 5,134 0.12% Licenses & Permits 3,599 0.10% 3,778 0.10% 3,967 0.10% 4,047 0.10% 4,107 0.09% Credit Card Expense 89,963 2.56% 94,461 2.48% 99,184 2.41% 101,167 2.39% 102,685 2.37% Management Fee 175,890 5.00% 190,116 5.00% 205,497 5.00% 211,664 5.00% 216,948 5.00%TOTAL OPERATING EXPENSES 1,068,391 30.37% 1,142,192 30.04% 1,221,345 29.72% 1,253,838 29.62% 1,280,985 29.52%

INCOME BEFORE

FIXED EXPENSES

RESERVES & FIXED EXPENSES Real Estate Taxes 180,000 5.12% 180,000 4.73% 183,600 4.47% 187,272 4.42% 191,017 4.40% Insurance 43,972 1.25% 47,529 1.25% 51,374 1.25% 52,916 1.25% 54,237 1.25% Reserves For Replacement 140,712 4.00% 152,093 4.00% 164,397 4.00% 169,331 4.00% 173,558 4.00%TOTAL RESERVES & FIXED 364,684 10.37% 379,622 9.98% 399,371 9.72% 409,519 9.67% 418,813 9.65%

CASH FLOW BEFORE DEBT 1,490,953 42.38% 1,660,493 43.67% 1,841,741 44.81% 1,901,478 44.92% 1,950,288 44.95%

Debt Service 829,592 23.58% 829,592 21.82% 829,592 20.19% 829,592 19.60% 829,592 19.12%

NET CASH FLOW $661,361 18.80% $830,901 21.85% $1,012,149 24.63% $1,071,886 25.32% $1,120,696 25.83%RETURN ON CASH INVESTMENT


55%

9.87% 12.40% 15.11% 16.00% 16.73%

Hotel Expenses

1,855,637 53% 2,040,115 54% 2,241,112 55% 2,310,997 55% 2,369,100

5 Year ProjectionThe following statistics are preliminary projection based on assumed costs of prototypical hotel.

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Year 1 % Year 2 % Year 3 % Year 4 % Year 5 %

Lodging Rooms Available 45,625 45,625 45,625 45,625 45,625Lodging Occupancy % 44.0% 44.0% 42.8% 42.8% 41.8% 41.8% 41.9% 41.9% 41.9% 41.9%

Total Occ. Rooms 20,072 19,533 19,070 19,095 19,127Average Daily Rate $115.01 $118.46 $122.01 $123.23 $124.47REVENUE:

Guest Rooms 2,308,456 98.04% 2,313,860 98.10% 2,326,784 98.15% 2,353,133 98.17% 2,380,647 98.19% Telephone / Misc. Revenue 1,004 0.04% 977 0.04% 954 0.04% 955 0.04% 956 0.04% Meeting Room Revenue 20,072 0.85% 19,533 0.83% 19,070 0.80% 19,095 0.80% 19,127 0.79% Market Revenue 25,090 1.07% 24,416 1.04% 23,838 1.01% 23,869 1.00% 23,909 0.99%TOTAL HOTEL REVENUE 2,354,621 100% 2,358,786 100% 2,370,645 100% 2,397,051 100% 2,424,639 100%

HOTEL PAYROLL EXPENSE

General Manager 65,000 2.82% 68,250 2.95% 71,663 3.08% 75,246 3.20% 79,008 3.32% Assistant Manager 45,000 1.95% 47,250 2.04% 49,613 2.13% 52,093 2.21% 54,698 2.30% Sales Manager 50,000 2.17% 52,500 2.27% 55,125 2.37% 57,881 2.46% 60,775 2.55% Operations Manager 30,000 1.30% 30,900 1.34% 31,827 1.37% 32,782 1.39% 33,765 1.42% Housekeeping 90,324 3.84% 87,899 3.73% 85,815 3.62% 85,928 3.58% 86,072 3.55% Laundry 17,061 0.72% 16,603 0.70% 16,210 0.68% 16,231 0.68% 16,258 0.67% Maintenance 20,072 0.85% 19,533 0.83% 19,070 0.80% 19,095 0.80% 19,127 0.79% Front Desk 72,000 3.06% 74,160 3.14% 76,385 3.22% 78,676 3.28% 81,037 3.34% Food and Beverage 30,108 1.28% 31,011 1.31% 31,942 1.35% 32,900 1.37% 33,887 1.40% Employee Benefits 16,783 0.71% 17,124 0.73% 17,506 0.74% 18,033 0.75% 18,585 0.77% Workers Comp Insurance 7,025 0.30% 6,837 0.29% 6,675 0.28% 6,683 0.28% 6,694 0.28% Payroll Tax 55,422 2.35% 56,508 2.40% 57,729 2.44% 59,443 2.48% 61,238 2.53%TOTAL HOTEL PAYROLL 498,795 21.18% 508,575 21.56% 519,557 21.92% 534,991 22.32% 551,144 22.73%

HOTEL OPERATING EXPENSE

Cleaning Supplies 9,032 0.38% 8,790 0.37% 8,582 0.36% 8,593 0.36% 8,607 0.35% Laundry Supplies 4,014 0.17% 3,907 0.17% 3,814 0.16% 3,819 0.16% 3,825 0.16% Linens 11,040 0.47% 10,743 0.46% 10,489 0.44% 10,502 0.44% 10,520 0.43% Guest Supplies 20,072 0.85% 19,533 0.83% 19,070 0.80% 19,095 0.80% 19,127 0.79% Operating Supplies 15,054 0.64% 14,650 0.62% 14,303 0.60% 14,321 0.60% 14,345 0.59% Complimentary Breakfast 60,216 2.56% 58,599 2.48% 57,210 2.41% 57,285 2.39% 57,381 2.37% Evening Social 20,072 0.85% 19,533 0.83% 19,070 0.80% 19,095 0.80% 19,127 0.79% Repairs & Maintenance 10,036 0.43% 9,767 0.41% 9,535 0.40% 9,548 0.40% 9,564 0.39% Elevator Contracts 4,014 0.17% 3,907 0.17% 3,814 0.16% 3,819 0.16% 3,825 0.16% Fire Protection & Contracts 4,014 0.17% 3,907 0.17% 3,814 0.16% 3,819 0.16% 3,825 0.16% Electrical & Mechanical 6,022 0.26% 5,860 0.25% 5,721 0.24% 5,729 0.24% 5,738 0.24% Plumbing 2,007 0.09% 1,953 0.08% 1,907 0.08% 1,910 0.08% 1,913 0.08% HVAC Maintenance 5,018 0.21% 4,883 0.21% 4,768 0.20% 4,774 0.20% 4,782 0.20% Grounds/Landscaping 10,036 0.43% 9,767 0.41% 9,535 0.40% 9,548 0.40% 9,564 0.39% Pool Expenses 5,018 0.21% 4,883 0.21% 4,768 0.20% 4,774 0.20% 4,782 0.20% Franchise Fee 111,960 4.75% 112,222 4.76% 112,849 4.76% 114,127 4.76% 115,461 4.76% Marketing / Advertising 56,557 2.40% 56,690 2.40% 57,006 2.40% 57,652 2.41% 58,326 2.41% Frequent Stay Program 25,393 1.08% 25,452 1.08% 25,595 1.08% 25,884 1.08% 26,187 1.08% Travel Agent Fees 34,627 1.47% 34,708 1.47% 34,902 1.47% 35,297 1.47% 35,710 1.47% Reservations Expense 23,085 0.98% 23,139 0.98% 23,268 0.98% 23,531 0.98% 23,806 0.98% Market Expense 12,545 0.53% 12,208 0.52% 11,919 0.50% 11,934 0.50% 11,954 0.49% Office Supplies 7,025 0.30% 6,837 0.29% 6,675 0.28% 6,683 0.28% 6,694 0.28% Utilities (Electricity/Gas/Fuel) 38,145 1.62% 38,212 1.62% 38,404 1.62% 38,832 1.62% 39,279 1.62% Water & Sewer 15,305 0.65% 15,332 0.65% 15,409 0.65% 15,581 0.65% 15,760 0.65% Waste Removal 5,887 0.25% 5,897 0.25% 5,927 0.25% 5,993 0.25% 6,062 0.25% Telephone 502 0.02% 488 0.02% 477 0.02% 477 0.02% 478 0.02% Internet Expense 10,500 0.45% 11,025 0.47% 11,576 0.49% 12,155 0.51% 12,763 0.53% Cable 12,000 0.51% 12,021 0.51% 12,082 0.51% 12,216 0.51% 12,357 0.51% Dues & Subscriptions 3,011 0.13% 2,930 0.12% 2,861 0.12% 2,864 0.12% 2,869 0.12% Licenses & Permits 2,409 0.10% 2,344 0.10% 2,288 0.10% 2,291 0.10% 2,295 0.09% Credit Card Expense 60,216 2.56% 58,599 2.48% 57,210 2.41% 57,285 2.39% 57,381 2.37% Management Fee 117,731 5.00% 117,939 5.00% 118,532 5.00% 119,853 5.00% 121,232 5.00%TOTAL OPERATING EXPENSES 722,563 30.69% 716,724 30.39% 713,376 30.09% 719,285 30.01% 725,540 29.92%

INCOME BEFORE

FIXED EXPENSES

RESERVES & FIXED EXPENSES Real Estate Taxes 180,000 7.64% 180,000 7.63% 183,600 7.74% 187,272 7.81% 191,017 7.88% Insurance 29,433 1.25% 29,485 1.25% 29,633 1.25% 29,963 1.25% 30,308 1.25% Reserves For Replacement 94,185 4.00% 94,351 4.00% 94,826 4.00% 95,882 4.00% 96,986 4.00%TOTAL RESERVES & FIXED 303,618 12.89% 303,836 12.88% 308,059 12.99% 313,117 13.06% 318,311 13.13%

CASH FLOW BEFORE DEBT 829,646 35.23% 829,651 35.17% 829,653 35.00% 829,657 34.61% 829,644 34.22%

Debt Service 829,592 35.23% 829,592 35.17% 829,592 34.99% 829,592 34.61% 829,592 34.22%

NET CASH FLOW $54 0.00% $59 0.00% $61 0.00% $65 0.00% $52 0.00%RETURN ON CASH INVESTMENT

5 Year ProjectionThe following statistics are preliminary projection based on assumed costs of prototypical hotel.

Rooms:

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Hotel Expenses

1,133,264 48% 1,133,487 48%


47%

0.00% 0.00% 0.00% 0.00% 0.00%

1,137,712 48% 1,142,774 48% 1,147,955

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Source: Residence Inn (3/31/2014) - Franchise Disclosure Document

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DISCLAIMER

Thank you for the opportunity to complete this market and feasibility study for the proposed hotel

project located in Maricopa, AZ. We have studied the market area for additional demand for a lodging facility and the results of our fieldwork and analysis are presented in this report. We have

also made recommendations for the scope of the proposed project, including general site location,

size of hotel, and brand.

We hereby certify that we have no undisclosed interest in the property and our employment and

compensation are not contingent upon our findings. This study is subject to the comments made

throughout this report and to all assumptions and limiting conditions set forth herein.

The conclusions presented in this report are based upon the information available and received at the

time the report was filed. Core Distinction Group, LLC (“CDG”) has taken every possible precaution

to evaluate this information for its complete accuracy and reliability. Parts of this report were

prepared or arranged by third-party contributors, as indicated throughout the document. While third-

party contributions have been reviewed by CDG for reasonableness and consistency for including in

this report, third-party information has not been fully audited or sought to be verified by CDG. CDG

does not provide financial advice.

It should be understood that economic and marketplace conditions are in constant change. The results

presented in this report are the professional opinion of CDG and are based on information available

at the time of the report preparation. These opinions infer that market conditions do not change the

information received upon which those opinions have been based. CDG assumes no responsibility

for changes in the marketplace. CDG assumes no responsibility for information that becomes

outdated once this report is written; nor are we responsible for keeping this information current after

the date of the final document presentation.

CDG makes no express or implied representation or warranty that the contents of this report are

verified, accurate, suitably qualified, reasonable or free from errors, omissions or other defects of any

kind or nature. Those who rely on this report do so at their own risk and CDG disclaims all liability,

damages or loss with respect to such reliance.

It is presumed that those reading this report understand the contents and recommendations. If this

reader is unclear of understanding the contents, clarification can be received directly from a

representative of CDG. While the terms of CDG’s engagement do not require that revisions be made

to this report to reflect events or conditions which occur subsequent to the date of completion of

fieldwork, we are available to discuss the necessity for revisions in view of changes in the economic

climate or market factors affecting the proposed hotel project.

Please do not hesitate to call should you have any comments or questions.

Sincerely,

Core Distinction Group, LLC

Lisa L. PennauOwner

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Documents

City of Maricopa, AZ Market Feasibility Studydocshare02.docshare.tips/files/29121/291216862.pdf · City of Maricopa, AZ Market Feasibility Study ... Expansion of the hotel in future