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

yet, in fact, exist as of the date of appraisal. Our appraisal does not address
unforeseeable events that could alter the proposed project and/or the market
conditions reflected in the analyses; we assume that no significant changes, other
than those anticipated and explained in this report, will take place between the
date of inspection and date of prospective value.
Additionally, our opinion of the stabilized market value of the subject property
prospectively, as of the date of stabilization, assumes that the hotel will be
maintained in good competitive condition and that no major changes will have
occurred in the local market or national economy that would impact the
performance of the property at that time.
According to the developer, the ground rent payable to the sublessor (Turtle Bay
Exploration Park) equals 5% of total revenue. The ground rent is waived in the
first and second years of operation. We have made the extraordinary assumption
that the sublease continues to pay ground lease payments to the sublessor in this
amount for the duration of our projection period.
The hotel is expected to be developed consistent with Sheraton’s brand standards
for improvements, finishes, design, and amenities, however, service practices such
as doormen and extensive room service may not be warranted in the market. A
modification of this service platform is not expected to affect the revenue
performance of the hotel.
We assume that the building will be fully open and operational on the assumed
opening date and will meet all local building codes and brand standards.
Furthermore, we assume that the hotel staff will be adequately trained to allow for
a successful opening and that pre-marketing efforts will have introduced the
product to major local accounts at least six months in advance of the opening date.
Several other important general assumptions have been made that apply to this
appraisal and our valuations of proposed hotels in general. These aspects are set
forth in the Assumptions and Limiting Conditions chapter of this report.
February-2011 Reconciliation of Value Indications
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