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

economic and demographic trends that may have an impact on future
demand for hotels.
5. Dividing the market for hotel accommodations into individual segments
defines specific market characteristics for the types of travelers expected
to utilize the area's hotels. The factors investigated include purpose of
visit, average length of stay, facilities and amenities required, seasonality,
daily demand fluctuations, and price sensitivity.
6. An analysis of existing and proposed competition provides an indication of
the current accommodated demand, along with market penetration and
the degree of competitiveness. Unless noted otherwise, we have inspected
the competitive lodging facilities summarized in this report.
7. Documentation for an occupancy and average rate projection is derived
utilizing the build-up approach based on an analysis of lodging activity.
8. A detailed projection of income and expense made in accordance with the
Uniform System of Accounts for the Lodging Industry sets forth the
anticipated economic benefits of the subject property.
9. The appraisal considers the following three approaches to value: cost, sales
comparison, and income capitalization. We have investigated numerous
improved sales in the market area and have spoken with buyers, sellers,
brokers, property developers, and public officials. Because lodging
facilities are income-producing properties that are normally bought and
sold on the basis of capitalization of their anticipated stabilized earning
power, the greatest weight is given to the value indicated by the income
capitalization approach. We find that most hotel investors employ a
similar procedure in formulating their purchase decisions, and thus the
income capitalization approach most closely reflects the rationale of
typical buyers.
The value conclusions of the appraisal are based on this investigation and analysis
and are conveyed in this summary report. The analyses, opinions, and conclusions
were developed based on, and this report has been prepared in conformance with,
our interpretation of the guidelines and recommendations set forth in USPAP.
February-2011 Nature of the Assignment
Sheraton Hotel Redding At Sundial Bridge – Redding, California 16