Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

Cost Approach
Value Conclusion
As discussed in the Cost Approach chapter, this methodology is applicable for this
property, as it is proposed, and has been heavily considered in our reconciliation
process.
Careful consideration has been given to the strengths and weaknesses of the three
approaches to value discussed above. In recognition of the purpose of this
appraisal, we have given primary weight to the value indicated by the income
capitalization approach.
Based on our analysis, it is our opinion that the “as is” market value of the
leasehold interest in the Sheraton Hotel Redding At Sundial Bridge, as of February
9, 2011, is:
February-2011 Reconciliation of Value Indications
Sheraton Hotel Redding At Sundial Bridge – Redding, California 116
$0
ZERO DOLLARS
Based on our analysis, it is our opinion that the “when complete” market value of
the leasehold interest in the Sheraton Hotel Redding At Sundial Bridge, as of June
1, 2012, will be:
$17,500,000
SEVENTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS
This value estimate equates to $134,615 per room. We have also estimated the
prospective market value of the subject property as of its projected date of
stabilization. Based on our analysis, it is our opinion that the “when stabilized”
prospective market value of the leasehold interest in the Sheraton Hotel Redding
At Sundial Bridge, as of June 1, 2016, will be:
$20,400,000
TWENTY MILLION FOUR HUNDRED THOUSAND DOLLARS
The estimates of market value include the land, the improvements, and the
furniture, fixtures, and equipment. The appraisal assumes that the hotel is open
and operational.
We have made no assumptions of hypothetical conditions in our report.
The analysis is based on the extraordinary assumption that the described
improvements have been completed as of the prospective "when complete" date of
value. The reader should understand that the completed subject property does not