Clarksburg Hotel and Conference Center

Transcription

Clarksburg Hotel and Conference Center
Clarksburg, WV
Market Study and Financial Projections
Submitted to:
Martin Howe
City Manager
City of Clarksburg, WV
Prepared by:
Pompan Hospitality Global, Inc.
March 31, 2014
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Table of Contents
1.
Executive Summary
1.1. Introduction and Scope
1.2. Methodology
1.3. Major Assumptions
1.4. Summary of Findings
2.
Area Overview
2.1. Introduction
2.2. Demographic and Economic Trends
2.3. Major Employers
2.4. Transportation
2.5. Tourism and Convention Activity
3.
Site Analysis
3.1. Neighborhood Review
3.2. Site Analysis
3.3. Conclusions
4.
Hotel Supply Analysis
4.1. Competitive Set
4.2. Historical Market Performance
4.3. Future Additions to Supply
4.4. Historical Performance of the Competitive Set
4.5. Penetration Rate Analysis
5.
Market Demand Analysis
5.1. Introduction
5.2 Survey Results
5.3. Customer Interview Results
5.4. Demand Generators by Segment
6.
Subject Hotel Design Recommendations
6.1. Overview
6.2. Design Fundamentals
6.2.1. Lobby/Public Space
6.2.2. Guestrooms
6.2.3. Meeting and Event Space
6.2.4. Food & Beverage
6.2.5. Back of House
6.3. Subject Hotel Asset Program Recommendations
7.
Estimated Subject Hotel Performance
7.1.
Estimated Utilization/Occupancy
7.1.1. Transient Room
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7.1.2. Group Rooms
7.2 Estimated Average Daily Rate
7.3. Estimated Revenue and Financial Summary
7.3.1. Departmental Revenues | Rooms
7.3.2. Departmental Expenses | Food and Beverage
7.3.3. Departmental Expenses | Conference Services
7.3.4. Departmental Expenses
7.3.5. Undistributed Expenses
7.3.6. Management Fees and Reserves
7.3.7. Fixed Expenses
7.3.8. 5-year Pro Forma
8.
Statement of Limiting Conditions
Appendices
I.
II.
III.
IV.
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STR Report Clarksburg/Bridgeport
Construction Pipeline
Demand Generators
Online Survey Full Results
1. EXECUTIVE SUMMARY
1.1. Introduction and Scope
In December 2013, the City of Clarksburg, West Virginia (“City”) engaged Pompan Hospitality Global,
Inc. (“PHG”) to complete a feasibility study to analyze the viability of a hotel/conference center
project in Downtown Clarksburg (“Study”). The purpose of the Study is to fully evaluate the
suitability of the selected site, assess the competitive environment, identify potential customers,
establish expected rates and occupancies, project revenues, operating expenses and gross operating
profits and recommend a space utilization program for guestrooms, meeting space, public areas and
back of house areas.
This report presents a narrative of the Study’s findings and conclusions including:
 An assessment of the current local competitive supply (Clarksburg and Bridgeport) as well as,
other regional locations with substantial conference facilities;
 Results of an online survey, concentrating on customer buying habits and preferences,
frequency, size and locations of meetings and the appetite for and design of a new hotel
conference center meeting venue in Clarksburg;
 Identification and profile of current and potential Demand Generators with meeting business
volumes, preferred venues, meetings spend, meeting type, season and history;
 A list of customers developed by PHG research with contact information and approximate
business potential;
 A set of recommendations for the design of the hotel conference center with quantity of
guestrooms, quantity and size meeting rooms, features and amenities to include food and
beverage outlets, business services, casual meeting areas, retail and back of the house
requirements, etc.;
 Projection of revenues with Average Daily Rates (ADR), Occupancy, Food and Beverage and
Ancillary revenues and associated departmental expenses based on market and industry
standards;
1.2. Methodology
We approached this project under the assumption that adding a full service hotel and conference
center in the downtown Clarksburg market would be a value to the city and have market demand so
that a positive financial performance would be achieved. We knew prior to our research the
following:
 There are no hotels currently in Downtown Clarksburg;
 There are very few locations to hold conferences or social events in the immediate market;
 The largest event space in Clarksburg, the Village Square Conference Center, has not been
maintained and has undergone multiple management changes;
 The Bridgeport Conference Center was underdeveloped and is too small for many of the market
needs;
 The oil and gas industry is a major influence on the hotel occupancy for Harrison County;
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Our research focused on proving or disproving our initial assumption by understanding the market
demands and identifying demand generators that would consider the subject property for its future
meeting, social and transient business needs.
Our conclusions and findings rely upon primary and secondary research, which included but was not
limited to conversations with representatives from the competitive hotel set in the area, customers,
local government officials and others familiar with the lodging and meeting demand in the Harrison
County market and throughout the state of West Virginia. This data assisted in determining the
potential lodging and meeting demand for a new hotel and conference center. Secondary research
sources are noted throughout the Study where applicable.
We inspected the proposed sites and the surrounding area to determine which site was most
suitable for the development of the hotel conference center as envisioned. We examined such
factors as general aesthetics, the supportive nature of the local neighborhood, and access to the
area.
We conducted a full analysis of the current local competitive supply. We analyzed the strengths,
weaknesses, opportunities and threats of the potential competition from a customer’s perspective
to understand what is currently being offered to the transient and meeting markets. We evaluated
what current and potential future needs are being fulfilled.
Based on the insights gained from customer input and industry best practices, we developed an
overall design for a new hotel and conference center. We reviewed the proposed features and
functionality to determine its suitability for meeting the market’s needs and forecasted the financial
performance for the asset.
Finally, and perhaps most importantly, we conducted interviews with top local and regional demand
generators to assess their potential business levels and their desire, need and potential use of a new
full service hotel conference center in the market.
1.3. Major Assumptions
The findings, conclusions and recommendations in this report are based in part on the following
major assumptions:
 The property, to be located at a favorable site within Downtown Clarksburg, will be built and
fully operational by January 2016;
 The City will be able to acquire the land for the selected site;
 The City of Clarksburg views the construction of this hotel as a preliminary step in a larger
downtown redevelopment plan;
 That organizations in the State of West Virginia will drive 90% of the business; feeder markets
from other cities within the state will have little to no impact on performance;
 The property will be designed as a full service hotel;
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










The property will have approximately 12,000 - 15,000 net sq. ft. of banquet and meeting space
including a large ballroom-style event space;
Our financial projections are based on a 160 guest room inventory;
The oil and gas industry will continue to drive corporate transient demand into the foreseeable
future, however, we anticipate that corporate housing for field workers will be constructed
beginning in 2019 which will reduce demand;
The hotel will be professionally managed and supported by a fully qualified, reputable
management company;
Group (meeting) demand is based on a 44 week year and a 4 day week;
All inclusive day meeting packages (“DMP’s) will be offered as one option to customers;
The sales and marketing team will be in place at least six months prior to opening – fully selling
and marketing the hotel and conference center;
The hotel management company will hire and provide training to ensure an experienced and
strong hotel and conference center sales and operations team provides an excellent product
and service to effectively compete in the Clarksburg and North Central West Virginia established
markets;
The property will be branded and take full advantage of the marketing programs of the subject
hotel’s brand and stay compliant with the subject hotel’s brand standards;
There will be no other changes (additions or closures) to the competitive supply of hotel
accommodations other than what is described in this report; and,
There will be no significant geopolitical or other disruptions to the economy of the County or
State during the term of the projections contained herein.
1.4 Summary of Findings
Based on the information collected during our market research, customer interviews and
subsequent analysis, it is our opinion that the subject hotel and conference center property will be a
highly welcomed facility to the Downtown Clarksburg and Harrison County meeting market. Upon
completion, the property as currently discussed will be the only full service hotel in Clarksburg, have
a flexible, quality conference center to accommodate the unmet meeting, banquet and tradeshow
needs in the market and serve to effectively impact the current challenge of finding guestrooms for
social and city events.
We believe the ideal hotel will have a recognizable brand and contain between 160-180 guest
rooms, 12,000-15000 sq. ft. of meeting and event space, including a ballroom of no less than 7,000
sq. ft., a full service restaurant and full service amenities including a fitness center, business center
and bar.
Based on our review of the demographics and economic indicators of the region, the market is in a
stable economic condition due to the growth of a number of industries. Overall, the employment
growth of 5.88% is expected from 2014 through 2020. The oil and gas production from the
Marcellus Shale will continue to be very active over the next 15-20 years, with the Utica shale to be
active for many years after that. The continual production and growth of the industry in North
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Central West Virginia will supply the market with individual and business travelers. The aerospace
and biometrics industries are well established in the region and look to continue to grow their
presence with increased employment of positions in higher salary ranges. These industries will help
drive up the wealth index for the City of Clarksburg, which already exceeds the state’s average. The
growth of the population and income should attract other businesses to service the market needs,
which will help drive redevelopment efforts for the City.
The City of Clarksburg is fortunate to have multiple site options for a new hotel and conference
center within the city limits. The former Central Junior High School/Tower’s Grade School site,
located at the intersection of South 2nd Street and Hewes Avenue, we believe is best suited for the
vision of the project. The site is well positioned, as it overlooks US Route 50. This location provides
very good visibility and easy access for visitors as they drive through Harrison County.
The site has an “L” shape configuration, which lends itself to a variety of footprints for a developer.
The layout can easily accommodate a hotel with multiple floors that are separate from the meeting
and event space. This would also allow for separate entrances, one for the hotel and restaurant
areas and a second entrance for the meeting and event space. This separation will help create quiet
hotel environment for the individual traveler, while an event can create the atmosphere they desire.
The Central/Towers site is also located adjacent to an existing five (5) story, City owned parking
building. The availability of a covered building that can be connected to the next property would
provide safe and convenient parking for the hotel and conference center’s guests. In addition, the
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costs involved in developing a parking solution can be diverted to support the development of
preferred amenities desired within the new property.
The site is located within the Central Business District (CBD) of Downtown Clarksburg. This area
includes the Harrison County Courthouse, City Hall, shops and restaurants. The various festivals
held in Clarksburg, in particular the West Virginia Italian Heritage Festival and the West Virginia
Black Heritage Festival, are in the CBD and would be able to easily use the site for various activities
and accommodate entertainers. It is also within walking distance of Jackson Square Parking Facility,
Glen Elk district and the proposed renovated Rose Garden Theater.
STAR REPORT SET
LOCAL SET
Based on our research and understanding of the hotels and conference facilities located in the
surrounding area, a full service hotel and conference center in Downtown Clarksburg would be
favorably received and provide a product that is not available within Harrison County. A review of
the area hotels shows that the only products available include limited and select service facilities.
Property
Days Inn
Hilton Garden Inn
Wingate by Wyndham
Holiday Inn Express
Hampton Inn
Best Western Plus
Microtel Inn
Sleep Inn
Village Square Conference Ctr
Bridgeport Conference Ctr.
Townplace Suites
CITY
Clarksburg
Clarksburg
Bridgeport
Bridgeport
Bridgeport
Bridgeport
Bridgeport
Clarksburg
Clarksburg
Bridgeport
Bridgeport
Guest
Rooms
Meeting
Rooms
98
112
116
87
108
164
86
73
NA
NA
99
3
6
1
1
1
3
1
1
5
8
NA
Total NET
SF Mtg
Ballroom
Space
Size
4,000
1,800
1,000
900
460
3,000
600
625
29,700
6,100
NA
2,200
1,800
1,000
NA
NA
3,000
NA
NA
13,300
4,500
NA
SqFt/GR
40.8
16.1
8.6
10.3
4.3
18.3
7.0
NA
NA
NA
STAR
RATING
2.0
3.0
3.0
2.0
2.0
2.0
2.0
2.0
NA
NA
2.0
With regards to specially designed conference and event facilities, there are only two in the area.
The Bridgeport Conference Center has been well received but in our interviews of the meeting
planners in the market, the facility is undersized and is unable to accommodate the needs of larger
events. With the largest meeting room at 4,500 square feet and a total of 6,100 square feet, the
facility is limited in the events it is able to accommodate. While the conference center is connected
to the Wingate by Wyndham hotel, it is a select service property with very limited amenities to fully
support the conference center.
The Village Square Conference Center is the only facility large enough to comfortably support events
of 350 people or more. However, the facility has had multiple changes in management over the
past few years and thus has developed a reputation of inconsistent service and poorly kept. In
addition, the conference center is not located near hotel accommodations and is therefore not
convenient for out-of- town guests.
Over the past seven years, the hotel market has experienced a steady growth in supply, which is
directly tied to the growth in demand. Since 2007 there have been 67,642 rooms added to the
market, while the room demand has increased by 116,092 room nights. This growth has created a
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current occupancy for the market at 85.39%. The weekday occupancy percentages have grown
from the upper 80’s to mid-90’s, with the weekends staying relatively strong staying around 70%.
While additional select and limited service hotels are being built, the demand is outpacing the new
supply and area occupancy continues to increase.
Supply and Demand
350,000
ROOM NIGHTS PER YEAR
300,000
250,000
200,000
150,000
100,000
50,000
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
240,43
274,48
274,48
274,26
303,68
306,58
308,06
310,19
310,19
310,61
311,45
311,45
311,45
311,45
Demand 147,96
169,34
185,39
219,20
245,52
252,29
263,05
263,05
263,05
263,05
263,05
263,05
257,79
252,64
Supply
The primary generator for the hotel component of the property will be transient business. With the
growth of the various industries, mainly the oil and gas business, the individual travelers will be an
important part of the success for the property. While the property could be tempted to fill with
transient business similar to the other hotels in the market, it will be important for the success of
the facility and finding the right balance in supporting the local community, while maximizing
revenue opportunities with the available room demand. Group demand, which would include
conference as well as room blocks for social events such as weddings and festivals, will provide total
revenue opportunities for the property outside of just the room rate. We are projecting a 70%/30%
market mix of transient to group business. As the property stabilizes and builds a reputation for
executing exceptional meetings, we expect the mix to shift in favor of the more profitable group
segment.
With the continual year-over-year growth in demand, we believe the market can fully support
additional supply. The new supply currently under development are select and limited service
brands with minimal conference space; which focuses on serving the transient demand in the
market. With the lack of a quality facility with properly sized conference space to attract and
accommodate large events in Harrison County, a strong opportunity is present for a full service
product to capture unmet needs.
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Our online survey and customer interviews indicated a strong meeting planner and community
preference to developing a downtown hotel and conference center product. The majority of
comments about a new conference center were positive and recognized a need for a new property,
as hotel rooms and meeting space are quite limited. The general consensus is that the city needs to
be revitalized and a hotel/conference center would do a lot to support the economy.
The online survey revealed a large number of businesses use facilities both in Harrison County (72%)
and outside of the county (73%). With the majority using the Bridgeport Conference Center (63.5%)
within the county and other conference facilities outside the county (Stonewall Resort, Waterfront
Place Hotel, the Marriott Charleston, the Oglebay Resort and The Greenbrier), the meeting planners
demonstrated the desire for a productive environment for their meetings.
If you have held meetings in Harrison County, what facility do
you primarily use?
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
Bridgeport
Conference
Center,
Bridgeport
Hilton Garden
Inn,
Clarksburg
Village Square
Conference
Center,
Clarksburg
Best Western,
Bridgeport
Days Inn,
Clarksburg
Other (please
specify)
63.5%
5.8%
3.8%
3.8%
1.9%
21.2%
If you have held meetings in West Virginia, what
properties do you use? (Please check all that apply)
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Stonewall
Resort,
Roanoke
Series1
10 | Page
62.5%
Lakeview
Waterfront
Golf Resort &
Place Hotel Spa,
Morgantown
Morgantown
58.3%
20.8%
Marriott
Charleston
Other (please
specify)
37.5%
41.7%
When selecting a property, the factors that are most important to meeting planners were the
Quality of Food and Beverage (92.6%), Quality of Meeting Space (89.3%), Complimentary Parking
(89%) followed closely by Total Cost, Quality of Guestrooms, Quality of Audio Visual and High Speed
Internet Access (HSIA) and Need for a Full Service Restaurant; all between 80% and 89%.
Rate the importance of the following attributes when
selecting a property
Quality of Food and Beverage
92.6%
Quality of Meeting Facilities
89.3%
Complimentary Parking
89.0%
Total Cost of Meeting/Event
87.6%
Quality of Guestrooms
87.4%
Quality of AV/Technology Equipment
85.5%
Complimentary High-Speed Internet access in…
83.4%
Full Service Restaurant
80.0%
Security/Safety
78.1%
Bar/Lounge
Sustainability Practices
On-Site Business Center
67.3%
67.1%
65.2%
Coffee Shop (i.e.: Starbucks)
63.0%
Proximity to Downtown Clarksburg
62.4%
Proximity to your Office
61.4%
On-Site Fitness Center
58.1%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
The customer interviews supported the information gathered in the online survey. The customer
comments from the interviews can be summarized into three major points. Detailed information can
be found in section 5.2 of this report.
1) A lack of sufficient meeting space in Harrison County.
2) A lack of sleeping room inventory in Harrison County.
3) A lack of quality accommodations and amenities available in Harrison County.
The comments and online survey results support our belief that a full service hotel can be supported
in this market. The Clarksburg residents and business people have a strong desire to revive the City
of Clarksburg. The addition of a quality hotel and meeting facility would provide a strong start to
this goal. The facility would be viewed as an asset to the area and attract people to the CBD to
support the local economy and the city.
The future projections for the market remain strong. Based on the past market performance, we
foresee the demand keeping pace with the supply coming onboard. If the oil and gas industry
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decides to develop permanent housing for its workers, we project a minimal impact on demand
beginning in 2019, at which time the Subject property should be well established.
Estimated Future Performance of the Competitive Set Supply
Year
Annual
Supply
Percent
Change
Occupied
Rooms
Percent
Change
Market
Occupancy
Average
Daily Rate
Percent
Change
REVPAR
Percent
Change
2014
310,190
NA
263,058
NA
84.8%
$
100.44
NA
$
85.17
0.0%
2015
310,190
0.0%
263,058
0.0%
84.8%
$
102.44
2.0%
$
86.88
2.0%
2016
310,618
0.1%
263,058
0.0%
84.7%
$
104.49
2.0%
$
88.49
1.9%
2017
311,458
0.3%
263,058
0.0%
84.5%
$
106.58
2.0%
$
90.02
1.7%
2018
311,458
0.0%
263,058
0.0%
84.5%
$
108.71
2.0%
$
91.82
2.0%
2019
311,458
0.0%
257,797
-2.0%
82.8%
$
108.71
0.0%
$
89.98
-2.0%
2020
311,458
0.0%
252,641
-2.0%
81.1%
$
108.71
0.0%
$
88.18
-2.0%
Annualized Change
0.1%
-0.7%
1.3%
0.6%
Source: Smith Travel Research
Based on the market analysis of the supply and demand, PHG has projected the financial
performance for the first five years of operation.
12 | Page
Statistics
Rooms
Available Rooms
2016
160
58,560
2017
160
58,400
2018
160
58,400
2019
160
58,400
2020
160
58,560
Occupied Rooms
OCC %
Average Rate
RevPAR
42,050
71.8%
104.49
75.03
44,969
77.0%
106.58
82.07
48,916
83.8%
108.71
91.06
48,916
83.8%
108.71
91.06
48,916
83.5%
108.71
90.81
Revenue
Rooms
Food & Beverage
Conference Services
Minor Operating Depts.
Total Revenue
$
$
$
$
$
Amount Ratio
4,331,544 69.5%
1,487,423 23.9%
310,316 5.0%
100,000 1.6%
6,229,283 100.0%
Per Room
$ 27,072
$ 9,296
$ 1,939
$
625
$ 38,933
POR
$ 103.01
$ 35.37
$
7.38
$
2.38
$ 148.14
Amount Ratio
$ 4,756,345 68.6%
$ 1,667,827 24.1%
$ 405,290 5.8%
$ 100,000 1.4%
$ 6,929,463 100.0%
Per Room
$ 29,727
$ 10,424
$ 2,533
$
625
$ 43,309
POR
$ 105.77
$ 37.09
$
9.01
$
2.22
$ 154.09
Amount Ratio
$ 5,300,480 68.2%
$ 1,883,492 24.2%
$ 485,673 6.3%
$ 100,000 1.3%
$ 7,769,645 100.0%
Per Room
$ 33,128
$ 11,772
$ 3,035
$
625
$ 48,560
POR
$ 108.36
$ 38.50
$
9.93
$
2.04
$ 158.84
Amount Ratio
$ 5,406,490 68.1%
$ 1,935,276 24.4%
$ 498,891 6.3%
$ 100,000 1.3%
$ 7,940,657 100.0%
Per Room
$ 33,791
$ 12,095
$ 3,118
$
625
$ 49,629
POR
$ 110.53
$ 39.56
$ 10.20
$ 30.00
$ 162.33
Amount Ratio
$ 5,514,620 67.9%
$ 1,988,659 24.5%
$ 512,507 6.3%
$ 100,000 1.2%
$ 8,115,786 100.0%
Per Room
$ 34,466
$ 12,429
$ 3,203
$
625
$ 50,724
POR
$ 112.74
$ 40.65
$ 10.48
$ 30.00
$ 165.91
Departmental Expenses
Rooms
Food & Beverage
Conference Services
$
$
$
$
1,160,854
1,143,828
185,706
76,300
26.8%
76.9%
59.8%
76.3%
$
$
$
$
7,255
7,149
1,161
477
$
$
$
$
27.61
27.20
4.42
1.81
$ 1,189,086
$ 1,267,549
$ 247,997
$
75,000
25.0%
76.0%
61.2%
75.0%
$
$
$
$
7,432
7,922
1,550
469
$
$
$
$
26.44
28.19
5.51
1.67
$ 1,325,120
$ 1,412,619
$ 266,061
$
75,000
25.0%
75.0%
54.8%
75.0%
$
$
$
$
8,282
8,829
1,663
469
$
$
$
$
27.09
28.88
5.44
1.53
$ 1,351,623
$ 1,451,457
$ 277,881
$
75,000
25.0%
75.0%
55.7%
75.0%
$
$
$
$
8,448
9,072
1,737
469
$
$
$
$
27.63
29.67
5.68
1.53
$ 1,213,216
$ 1,491,495
$ 290,272
$
75,000
22.0%
75.0%
56.6%
75.0%
$
$
$
$
7,583
9,322
1,814
469
$
$
$
$
24.80
30.49
5.93
1.53
Total Expenses
$
2,566,688
41.2%
$ 16,042
$
61.04
$ 2,779,632
40.1%
$ 17,373
$
61.81
$ 3,078,800
39.6%
$ 19,243
$
62.94
$ 3,155,960
39.7%
$ 19,725
$
64.52
$ 3,069,983
37.8%
$ 19,187
$
62.76
Departmental Profit
$
3,662,595
58.8%
$ 22,891
$
87.10
$ 4,149,831
59.9%
$ 25,936
$
92.28
$ 4,690,845
60.4%
$ 29,318
$
95.90
$ 4,784,697
60.3%
$ 29,904
$
97.82
$ 5,045,803
62.2%
$ 31,536
$ 103.15
A&G
Sales & Marketing
Property Operations
Utilities
$
$
$
$
566,865
560,635
286,547
230,483
9.1%
9.0%
4.6%
3.7%
$
$
$
$
3,543
3,504
1,791
1,441
$
$
$
$
13.48
13.33
6.81
5.48
$
$
$
$
630,581
554,357
318,755
256,390
9.1%
8.0%
4.6%
3.7%
$
$
$
$
14.02
12.33
7.09
5.70
$
$
$
$
707,038
621,572
357,404
287,477
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,419
3,885
2,234
1,797
$
$
$
$
14.45
12.71
7.31
5.88
$
$
$
$
722,600
635,253
365,270
293,804
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,552
4,001
2,301
1,851
$
$
$
$
14.77
12.99
7.47
6.01
$
$
$
$
738,537
649,263
373,326
300,284
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,688
4,121
2,370
1,716
$
$
$
$
15.10
13.27
7.63
6.14
Total Undistributed
$
1,644,531
26.4%
$ 10,278
$
39.11
$ 1,760,083
25.4%
$ 11,001
$
39.14
$ 1,973,490
25.4%
$ 12,334
$
40.34
$ 2,016,927
25.4%
$ 12,606
$
41.23
$ 2,061,410
25.4%
$ 12,884
$
42.14
0
Gross Operating Profit
$
2,018,064
32.4%
$ 12,613
$
47.99
$ 2,389,747
34.5%
$ 14,936
$
53.14
$ 2,717,355
35.0%
$ 16,983
$
55.55
$ 2,767,770
34.9%
$ 17,299
$
56.58
$ 2,984,393
36.8%
$ 18,652
$
61.01
Base Management Fee
$
199,337
3.2%
$
1,246
$
4.74
$
221,743
3.2%
$
1,386
$
4.93
$
248,629
3.2%
$
1,554
$
5.08
$
254,101
3.2%
$
1,588
$
5.19
$
259,705
3.2%
$
1,623
$
5.31
Property Taxes
Insurance
Total Undistributed
$
$
$
224,254
74,751
299,006
3.6%
1.2%
4.8%
$
$
$
1,402 $
467 $
1,869 $
5.33
1.78
7.11
$
$
$
249,461
83,154
332,614
3.6%
1.2%
4.8%
$
$
$
2,079 $
5.55
1.85
7.40
$
$
$
279,707
93,236
372,943
3.6%
1.2%
4.8%
$
$
$
1,748 $
583 $
2,331 $
5.72
1.91
7.62
$
$
$
285,864
95,288
381,152
3.6%
1.2%
4.8%
$
$
$
1,801 $
500 $
2,382 $
5.84
1.95
7.79
$
$
$
292,168
97,389
389,558
3.6%
1.2%
4.8%
$
$
$
1,855 $
500 $
2,435 $
5.97
1.99
7.96
Net Operating Income
$
1,519,722
24.4%
$
9,498
$
36.14
$ 1,835,390
26.5%
$ 11,471
$
40.81
$ 2,095,783
27.0%
$ 13,099
$
42.84
$ 2,132,518
26.9%
$ 13,328
$
43.60
$ 2,335,130
28.8%
$ 14,595
$
47.74
FF&E Reserve
$
62,293
1.0%
$
389
$
1.48
$
138,589
2.0%
$
866
$
3.08
$
233,089
3.0%
$
1,457
$
4.77
$
238,220
3.0%
$
1,489
$
4.87
$
243,474
3.0%
$
1,522
$
4.98
NOI after Reserve
$
1,457,429
23.4%
$
9,109
$
34.66
$ 1,696,801
24.5%
$ 10,605
$
37.73
$ 1,862,694
24.0%
$ 11,642
$
38.08
$ 1,894,298
23.9%
$ 11,839
$
38.73
$ 2,091,657
25.8%
$ 13,073
$
42.76
Undistributed Expenses
Fixed Expenses
The balance of this report will review in full detail these findings.
13 | Page
2. AREA OVERVIEW
2.1. Introduction
To properly understand the market and opportunities that might be available to a new hotel and
conference center in the market, we first needed an understanding of the City of Clarksburg and
Harrison County community. PHG looked at a multitude of indicators of the area to develop an
overall view of the environment of the people and businesses in the area that will help support a
new hotel and conference center. Indicators that provide insight into the demographic and
economic trends included population growth projections, employment and retail sales figures,
major employers in the region, access to the area and the main tourism and convention activities.
The City of Clarksburg is located in the hills of north central West Virginia at the intersection of
Interstate 79 and U.S. Route 50, the second busiest interchange in the state. Clarksburg is a city in
and the county seat of Harrison County. Clarksburg is the largest city in Harrison County. In 2011,
the City was named National Small City of the Year by the National League of Cities.
Situated at an important crossroads of US Route 50 and I-79, the area has easy access to midAtlantic metropolitan areas. Many new businesses have built or relocated here due to easy access
to mid-Atlantic metropolitan areas. These businesses include the FBI Fingerprinting Facility,
Fairmont State University’s Downtown Campus, Precision Coil, Lockheed Aeronautical Systems,
Winfield Corporation and the West Virginia Aerospace Center. Excellent medical facilities include a
well-recognized VA hospital with a new VA Nursing Home, Highland Hospital and a newly
constructed state-of-the-art United Hospital along Corridor D of 1-79.
2.2. Demographic and Economic Trends
The understanding of a market’s economic trends provides a developer with insight into the future
business potential for the project. The community’s stability or growth in specific trends indicates
the market’s ability to support the project. If businesses are attracted to the area, the population
will grow, retail sales increase, and visitor business traveler counts increase – all activities that can
provide a positive impact to a new hotel and conference center. The cycle of growth will then
continue as each in market indicator will support growth in the other areas and overall a community
will experience a positive impact. Conversely, if a market has not shown trends towards growth in
these indicators, it can discourage businesses and economic develop in the area.
Population
The population of Clarksburg is anticipated to grow less than 1% through 2020. This is slightly
behind statewide growth estimated at 1.77% during the same time frame.
14 | Page
TOTAL POPULATION (in thousands)
NAME
2014
2015
2016
2017
2018
2019
2020
UNITED STATES
320976.93
324186.915
327418.228
330673.02
333952.567
337251.026
340554.332
SOUTHEAST
82275.278
83311.707
84353.413
85401.051
86454.968
87513.714
88573.673
1869.418
1874.61
1879.927
1885.394
1891.002
1896.72
1902.469
0.28%
0.28%
0.29%
0.30%
0.30%
1.77%
151.201
151.273
151.355
151.446
151.551
151.664
151.777
94.75
94.851
94.959
95.072
95.195
95.323
95.45
0.11%
0.11%
0.12%
0.13%
0.13%
0.13%
WEST VIRGINIA
Year of Year Change
FAIRMONT-CLARKSBURG, WV
CLARKSBURG, WV
Year of Year Change
Period Change
0.74%
SOURCE: Woods and Poole Economics
Wealth Index
The Wealth Index of Clarksburg exceeds the State of West Virginia by 6.8 points and is equal to that
of Morgantown. However, the index falls short of the nation by 15 points and the region by 6.1
points. Because the wealth index is higher than the state as a whole, a new property in Clarksburg
can expect to generate slightly greater rates for services on average than the state, but lower rates
then the state capital, Charleston.
WOODS & POOLE ECONOMICS WEALTH INDEX (U.S. = 100)
AREA
2014
2015
2016
2017
2018
2019
2020
100
100
100
100
100
100
100
SOUTHEAST
90.96
90.99
91.02
91.06
91.1
91.13
91.17
WEST VIRGINIA
78.82
78.92
79
79.06
79.12
79.18
79.22
CHARLESTON, WV
91.02
91.01
91
90.99
90.98
90.96
90.95
MORGANTOWN, WV
84.48
84.61
84.71
84.79
84.87
84.94
85
CLARKSBURG, WV
84.07
84.26
84.43
84.6
84.76
84.92
85.07
UNITED STATES
Employment
Clarksburg is expected to see a steady 1% rise in employment each year from 2014 through 2020.
Sectors that are expected to experience the most pronounced growth(30% +) include
Administrative Service and Waste Services, General Management of Companies and Services,
Transportation, Professional and Technical Services, Accommodations, Food Service, Healthcare,
Social Services, and Real Estate.
TOTAL EMPLOYMENT (in thousands)
AREA
2014
2015
2016
2017
2018
2019
2020
181869.482
184320.297
186803.767
189320.874
191871.814
194457.258
197077.389
44897.681
45570.309
46252.456
46944.46
47646.425
48358.484
49080.854
937.316
947.333
957.404
967.623
977.956
988.404
998.972
1.07%
1.06%
1.07%
1.07%
1.07%
6.58%
83.109
83.983
84.865
85.758
86.669
87.598
88.535
CLARKSBURG, WV
54.403
55.005
55.614
56.229
56.858
57.499
58.142
0.95%
0.94%
0.95%
0.95%
0.97%
0.98%
UNITED STATES
SOUTHEAST
WEST VIRGINIA
Year of Year Change
Year of Year Change
Period Change
5.88%
15 | Page
TOTAL EMPLOYMENT (in thousands of jobs)
SECTOR
Administrative and Waste Service
Management of Companies and Services
Transportation of Companies and Enterprises
Professional and Technical Services
Accommodation and Food Services
Healthcare and Social Services
Real Estate and Rental and Lease
Mining
Other services, except public administration
Wholesale trade
Arts, Entertainment and Recreation
State and Local Government
Finance and Insurance
Retail trade
Federal civilian government
Construction
Federal military
Farm
Information
Educational services
Utilities
Manufacturing
Forestry, Fishing and Related Activities
TOTAL EMPLOYMENT
2000
1.589
0.098
1.522
1.628
2.822
5.337
1.016
1.745
2.774
1.284
0.456
5.078
1.201
7.067
4.095
2.899
0.488
1.648
0.838
0.718
0.646
3.109
0.141
48.199
2005
2.111
0.061
1.87
1.814
3.24
5.752
1.353
1.773
3.039
1.54
0.586
5.259
1.138
6.77
3.911
2.883
0.467
1.519
0.851
0.73
0.571
2.639
0.101
49.978
2010
1.98
0.179
1.989
2.114
3.418
6.313
1.476
2.306
3.078
1.521
0.591
5.722
1.289
6.326
4.257
2.822
0.475
1.603
0.753
0.567
0.421
2.184
0.069
51.453
2015
2.427
0.16
2.317
2.367
4.016
7.073
1.475
2.337
3.335
1.647
0.514
6.002
1.273
6.927
4.382
2.9
0.484
1.608
0.642
0.583
0.419
2.038
0.079
55.005
Postive
2020 % Change
2.753
58.8%
0.196
54.7%
2.468
47.6%
2.617
46.8%
4.363
45.1%
8.079
43.4%
1.576
37.9%
2.415
29.1%
3.591
26.5%
1.68
26.0%
0.558
17.3%
6.265
9.5%
1.306
8.1%
7.421
5.6%
4.308
5.0%
2.916
0.6%
0.488
0.0%
1.642
-0.4%
0.678
-21.2%
0.582
-24.0%
0.388
-61.3%
1.762
-61.7%
0.09
-73.9%
58.142
19.3%
Negative
Total Retail Sales
Retail sales are projected to grow 5.94% through 2020 to $1.36B. The compounded rate of growth
lags the state rate of growth by 1.16%.
TOTAL RETAIL SALES, INCLUDING EATING and DRINKING PLACES SALES (in millions of 2005 dollars)
AREA
2014
2015
2016
2017
2018
2019
2020
UNITED STATES
4298146.2
4378472.3
4460299.6
4543656.1
4628570.4
4715071.6
4803189.5
SOUTHEAST
1090903.8
1114197.5
1137919.1
1162077.9
1186682.2
1211741.2
1237264.1
21286.8
21526.6
21771.2
22020.8
22275.3
22534.8
22799.4
1.1%
1.1%
1.1%
1.2%
1.2%
7.1%
WEST VIRGINIA
Year of Year Change
1905.2
1922.7
1940.5
1958.7
1977.2
1996.2
2015.4
CLARKSBURG, WV
1279.3
1291.3
1303.6
1316.2
1329.0
1342.0
1355.3
0.94%
0.95%
0.96%
0.97%
0.98%
0.99%
Year of Year Change
Period Change
5.94%
The greatest segment of retail growth is expected in non-store retailers followed by Health and
Personal Care, Gasoline, General Merchandise, Restaurants and Bars. Conversely, Home Furnishing,
Building and Garden Equipment, Clothing and Electronics are expected to fall dramatically through
2020.
16 | Page
TOTAL RETAIL SALES, INCLUDING EATING and DRINKING PLACES SALES (in millions of 2005 dollars)
SECTOR
2000
NONSTORE RETAILERS RETAIL SALES
60.079
HEALTH and PERSONAL CARE RETAIL SALES
61.975
GASOLINE STATIONS RETAIL SALES
113.244
GENERAL MERCHANDISE STORES RETAIL SALES
166.508
EATING and DRINKING PLACES SALES
88.056
SPORTING GOODS, HOBBY, BOOK, and MUSIC STORES RETAIL SALES
19.299
MISCELLANEOUS STORE RETAIL SALES
36.509
MOTOR VEHICLES and PARTS DEALERS RETAIL SALES
312.667
FOOD and BEVERAGE STORES RETAIL SALES
123.682
ELECTRONICS and APPLIANCE STORES RETAIL SALES
17.515
CLOTHING and CLOTHING ACCESSORIES STORES RETAIL SALES
48.221
BUILDING MATERIALS and GARDEN EQUIPMENT and SUPPLIES DEALERS RETAIL SALES
126.132
FURNITURE and HOME FURNISHING STORES RETAIL SALES
25.548
TOTAL SALES
1199.435
2005
97.711
73.617
131.912
179.068
86.723
21.086
35.548
320.628
114.513
19.841
43.763
140.04
17.649
1282.099
Postive
2010
107.463
83.091
131.333
188.376
86.895
20.423
32.008
250.566
118.711
15.496
36.501
88.027
9.234
1168.124
2015
138.397
88.38
152.034
190.069
94.679
21.012
35.637
291.844
120.97
14.865
39.214
94.247
9.974
1291.322
2020 % Change
152.397
153.7%
99.023
59.8%
151.948
34.2%
199.346
19.7%
98.293
11.6%
20.856
8.1%
37.874
3.7%
309.028
-1.2%
119.942
-3.0%
15.569
-11.1%
40.636
-15.7%
99.703
-21.0%
10.703
-58.1%
1355.318
13.0%
Negative
2.3. Major Employers
West Virginia is a core global location for chemicals, a leader in the area of energy production and
resources, and a growing national hub in the Biotechnology Industry. Its economy includes such
industries as aerospace, healthcare, manufacturing, natural resources, metals and steels, media and
telecommunications and tourism.
The North Central region of West Virginia is an area that is growing and expanding due to the
development of these markets. Clarksburg is home to approximately 16,500 residents, and nearly
6,000 professionals work in the CBD.
Major drivers for the city/county include:




Healthcare – There are four major hospitals in the area which have needs for meeting and
event space as well as sleeping accommodations for families of their patients
Aerospace Industry – This is one of the fastest growing sectors of the West Virginia
economy. Companies such as Lockheed Martin, Bombardier Aerospace and Pratt & Whitney
are a few of the leaders in this area.
Biometrics – The FBI Criminal Justice Information Services Division is Clarksburg’s largest
employer with 3,000 employees and the Biometrics Identity Management Agency is also
located in Clarksburg.
Oil and Gas – West Virginia is home to one of the largest Marcellus Shale natural gas
deposits on the East coast, and Harrison County is leading the state in production. Sales
volumes from Marcellus Shale operations are expected to nearly double in the coming
years.
2.4. Transportation
North Central West Virginia Airport
The Harrison County market, which includes the City of Clarksburg, is supported by North Central
West Virginia Airport (CKB), located in the neighboring City of Bridgeport. The regional airport
primarily acts as a stopover location for flights between Morgantown, WV and Washington DC. The
airport supports three daily flights arriving from Washington DC, with stopovers at Morgantown and
three daily flights departing to Washington DC. On the weekends, the airport has two additional
flights each Saturday and Sunday, arriving from and departing to Washington DC. Also, the airport
17 | Page
offers direct flights to Sanford, FL via Allegiance Air, arriving and departing Thursday and Sunday at
very economical rates. All other flights are operated by United Airlines.
Highways
The highway system in and around Harrison County is primarily supported by two main
thoroughfares, Interstate 79 and US Route 50, which creates the second busiest interchange in the
state of West Virginia. Interstate 79 runs North and South through the state connecting
Morgantown, near the Pennsylvania border and the location of West Virginia University, to
Charleston, the state capital, in the southwest section of the state. U.S. Route 50 travels East and
West through the state with Washington, DC located a four hour drive to the east of Clarksburg and
Parkersburg just under one hour to the west.
Clarksburg is favorably located within convenient drive times between these major cities with major
industries. Being in a location with easy drive-in access is a favorable position for the City and can
significantly impact the demand to attract state association conferences, as well as industries that
need to bring people in from various locations around the state.
2.5. Tourism and Convention Activity
West Virginia is nicknamed The Mountain State as it is the only state that is entirely within the
Appalachian Mountains. It also has over 50 state parks and forest locations, including the
permanent home of the National Scout Jamboree at the Summit Bechtel Reserve with 40,000
patrons annually. Outdoor recreation is abundant in the state, and Clarksburg’s central location
makes it relatively close to all types of activities. Golf, skiing, whitewater rafting, mountain biking,
camping, hunting, and hiking are all popular in this region.
Clarksburg is a cultural center for the north central region of West Virginia. It is rich in history and
cultural heritage and there are several defined historical districts in the city. There are many annual
festivals, bike races and 10k runs that take place in Clarksburg, and again, its central location makes
it the perfect venue for these events. Residents from the neighboring states of Pennsylvania, Ohio,
Kentucky, Virginia and Maryland will drive an hour or more to attend larger festivals such as the
West Virginia Italian Heritage Festival and the West Virginia Black Heritage Festival. (The WV Italian
Festival alone draws up to 85,000 people over Labor Day weekend.) Other events such as the Pasta
Cook Off, Jazz Strolls and New Year’s Eve at the Jackson Square Parking Facility have proven to be
very successful in drawing crowds to downtown Clarksburg.
Clarksburg’s own 50 acre Veterans Memorial Park features a newly opened 385,000 gallon
waterpark which has proven to be an attraction in itself for locals as well as visitors from all over the
region. Also within the park is a state-of-the art amphitheater for concerts and plays. The Jackson
Square Parking Facility is another downtown open-air venue which is very popular for special events,
reunions or trade shows.
The state capital of Charleston is home to most of the association groups in the state. These groups,
along with other religious and fraternal organizations, plan social events, concerts, festivals, and
trade shows all over West Virginia. When space permits, they have gathered in Harrison County for
these events.
18 | Page
3. SITE ANALYSIS
3.1. Neighborhood Review
Clarksburg
The Clarksburg community is a mixture of retail, industry, and government services, along with
many recreational facilities. With its distinct historic downtown district, the City has both an urban
and suburban environment. The population of the City has remained consistent over the past
decade with the current population recorded at 16,439, with approximately 7,213 households, and
4,179 families residing within the city boundaries.
There are 7,213 households of which 28.5% have children under the age of 18 living with them,
38.0% are married couples living together, 14.7% have a female householder with no husband
present, 5.2% have a male householder with no wife present, and 42.1% are non-families. 5.3% of all
households are made up of individuals and 14.6% have someone living alone who was 65 years of
age or older. The average household size is 2.25 and the average family size is 2.91.
The median age in the city is 39.5 years. 21.9% of residents are under the age of 18; 7.9% are
between the ages of 18 and 24; 26.8% are from 25 to 44; 27.1% are from 45 to 64; and 16.3% are 65
years of age or older. The gender makeup of the city is 48.0% male and 52.0% female.
Bridgeport
Bordering the eastern edge of Clarksburg, the City of Bridgeport is a slightly smaller community with
more expansive land lots, which creates a more suburban feel to the city. The recent expansion at
Charles Pointe and White Oaks districts has attracted new businesses, small industries, supply and
retail businesses. Over the past 10 years, the city has experienced an 11.5% population growth and
currently has 8,149 people, 3,458 households, and 2,383 families residing within the city.
There were 3,458 households of which 30.2% have children under the age of 18 living with them,
56.7% are married couples living together, 9.2% have a female householder with no husband
present, 3.1% have a male householder with no wife present, and 31.1% are non-families. 28.2% of
all households are made up of individuals and 12.8% have someone living alone who is 65 years of
age or older. The average household size was 2.34 and the average family size is 2.86.
The median age in the city is 44.7 years. 21.9% of residents are under the age of 18; 5.1% are
between the ages of 18 and 24; 23.5% are from 25 to 44; 30.8% are from 45 to 64; and 18.8% are 65
years of age or older. The gender makeup of the city is 47.7% male and 52.3% female.
19 | Page
3.2. Subject Hotel Site Analysis
The City of Clarksburg is currently considering four locations as potential sites for a new hotel and
conference center project. The sites are in various stages of availability and condition from an
empty lot to a location currently in use but to be vacated within the next few years. PHG reviewed
the four sites under consideration for the Clarksburg Hotel and Conference Center to provide
recommendations on which site would be best suited for the project. The sites were evaluated
based on the accessibility, visibility and the potential for possible future expansion. Other
considerations included the proximity to demand generators, amenities and parking options.
After studying and reviewing the proposed sites as a location for a full service hotel and conference
center, the chart below shows each site and a ranking for the suitability of the location.
Clarksburg Hotel & Conference Center Site Analysis
Site 1
Site 2
Site 3
Site 4
Very Good
Very Good
Good
Good
Excellent
Good
Good
Good
Proximity to Demand
Very Good
Very Good
Very Good
Very Good
Proximity to Amenities
Very Good
Very Good
Very Good
Very Good
Expansion Potential
Very Good
Very Good
Poor
Fair
Excellent
Very Good
Poor
Fair
Accessibility
Visibility
Parking Options
Site 1: Central/Towers; North 2nd Street and Hewes Avenue Lot # 720
Located overlooking US Route 50, this site
offers the best visibility for traffic passing
through Harrison County. The site is easily
accessible, as it is located just to the left of
the entrance ramp from US Route 50 as
vehicles exit the highway and enter into the
downtown area. It is situated in close
proximity to the government buildings and
other downtown businesses. The property
has an “L” shape configuration, which
provides a developer the opportunity to
layout the project into clearly divided and
separated areas, creating distinct hotel and
conference center wings. Two entrances
could be created; one for the hotel and
restaurant guests with a second entrance for
the banquet and event areas. Each wing of the site is long enough to provide additional space for
future expansion. The property is located adjacent to the City’s five (5) story parking building and
could be easily connected for direct, covered access for guests.
20 | Page
Site 2: Moose Lot Property; West Pike and West Main Streets Lot #302,306.6, 306.5 and 424
The site spans between two main streets, Main
Street and Pike Street, which have direct access
to the CBD. With the expansive lots and a fairly
flat terrain, the lot has the flexibility to support a
number of hotel and conference center
footprints. With the site being only a couple of
blocks from the US Route 50, access and visibility
are very good. Hotel entrances can be created off
both Main and Pike Streets to create easy access
for guests traveling from either direction through
the city. The site is located directly across from a
future state government building and a couple of
blocks from the courthouse and other downtown
businesses. Future expansion could be available
based on the layout of the structure and
opportunities with adjacent lots.
The
development of surface parking lots is available on the site and across the street.
Site 3: Waldo Hotel; North Fourth Street and Hewes Avenue
The site is the long closed historic Waldo Hotel,
which is centrally located within the downtown
business district and close proximity to the library,
Jackson Square Parking Facility and Glen Elk
District. While not far from US Route 50, it is not as
easily accessible or visible as other sites. The site is
“land-locked” with surrounding buildings and
streets and would be difficult to expand the
current footprint. The building is in disrepair and
while there is some local interest in restoring the
landmark facility, it would require considerable
funds to restore the property to current needs and
codes. Parking is not available at the site and
would need to be created at a minimum of a block
away, which could be cause for safety concerns
late in the evening.
21 | Page
Site 4: Dominion Gas Building; 445 W Main Street
The site is located in the midst of the CBD and has
close proximity to downtown businesses and
amenities. Of the four sites, it is the furthest
from US Route 50 and the least visible. The site is
currently occupied by Dominion Gas, which is
planning on building a new office in Bridgeport.
The new office is expected to be completed in
2016, at which time this site would then become
available for development. This is the only site
not currently vacant. The site is expansive and
would avail itself to a variety of footprints.
Future expansion could be limited due to the
surrounding neighborhoods and businesses.
Parking would need to be developed either as a
structure or surface lot to accommodate the
project needs.
3.2 Site Conclusion
The Site 1, the Central/Towers location is the preferred location to develop the new hotel and
conference center project. With the assumption that the City is able to effectively negotiate
obtaining the land, the location offers the best visibility and accessibility for people traveling
through Harrison County. Our estimated performance and other recommendation comments are
based on this site being selected by a developer.
The size of the site, along with the flexibility of the layouts the site can support, provides a
developer with many options on how to create the best facility to support the needs of the
community. Creating a separate conference center wing can provide distraction free meetings and
support trade shows/exhibits with effective load in support. With the hotel rooms separated from
event space, the individual business traveler will be able to have the privacy and quiet they look for
as they look to conduct business or get a good night’s rest from a long day of meetings. The oil and
gas business persons will be able to be in close proximity to the government buildings, in particular
the courthouse, to effectively do their business work.
While other sites would be able to provide some sort of parking option, Site 1 has the covered five
(5) story parking building already in place, which would potentially save the developer costs; costs
which can be directed towards the development of the hotel and conference center’s other
amenities. In addition, covered parking with direct access into the facility would promote a safe and
weather protected environment for guests.
22 | Page
4. HOTEL SUPPLY ANALYSIS
4.1. Introduction
To develop conclusions relative to the competitive environment in which the Hotel will compete, we
have analyzed the overall market and selected properties that we feel will offer primary competition
to the Hotel. The competitive properties, or competitive set, were selected based on their facilities,
location, market performance and orientation, property rating, rate structure, and discussions with
management of several of these properties.
Presented on the following pages are the summary profiles of competitive hotels based on their
close proximity to Clarksburg, for their inventory of sleeping rooms, because of their significant
meeting space or because they were mentioned in our interviews by demand generators in the area.
We have categorized them into two groups; primary and secondary properties. The primary
competitive set includes those properties located in Harrison County within a ten mile radius of the
proposed Clarksburg hotel. The secondary set are hotels and event centers located outside of
Harrison County and throughout the state.
4.2. Primary Hotel Competitive Set
In this section we will provide an overview of the hotel and conference centers that are in
competition with the Subject Hotel. The following table is a listing of the local competitive set for
the subject hotel. This competitive set will be used as a baseline for comparison in the analysis to
follow.
Local Competitive Supply
Name of Establishment
Guest Rooms
Sunject Property
140
Days Inn Bridgeport Clarksburg
Hilton Garden Inn Clarksburg
Wingate By Wyndham Bridgeport
Holiday Inn Express & Suites Bridgeport
Hampton Inn Bridgeport Clarksburg
Best Western Plus Bridgeport Inn
Microtel Inn & Suites by Wyndham Bridgeport
Sleep Inn Clarksburg
AVERAGE
98
112
116
87
108
164
86
73
109
The following table provides a more comprehensive list of competitors in the market. The expanded
local set includes three non-residential meeting facilities which will directly compete for meeting
business, especially the highly lucrative Day Meeting Business (DMP).
23 | Page
STAR REPORT SET
LOCAL SET
OTHER COMPETITORS FOR GROUP
Property
Days Inn
Hilton Garden Inn
Wingate by Wyndham
Holiday Inn Express
Hampton Inn
Best Western Plus
Microtel Inn
Sleep Inn
Village Square Conference Ctr
Bridgeport Conference Ctr.
Townplace Suites
Fairfield Inn & Suites
Comfort Inn & Suites
Holiday Inn Express
Clarion Inn
Stonewall Jackson Resort
Lakeview Golf Resort & Spa
Morgantown Event Center
Waterfront Place Hotel
Days Inn Flatwoods
Oglebay Resort & CC
Charleston Marriott Town Ctr.
Resort At Glade Springs
The Greenbrier Resort
CITY
Clarksburg
Clarksburg
Bridgeport
Bridgeport
Bridgeport
Bridgeport
Bridgeport
Clarksburg
Clarksburg
Bridgeport
Bridgeport
Fairmont
Fairmont
Fairmont
Fairmont
Roanoke
Morgantown
Morgantown
Morgantown
Sutton
Wheeling
Charleston
Daniels
White Sulphur Spr
Guest
Rooms
Meeting
Rooms
98
112
116
87
108
164
86
73
NA
NA
99
80
82
71
105
208
187
NA
205
199
273
352
200
682
3
6
1
1
1
3
1
1
5
8
NA
4
1
1
4
14
23
8
22
7
15
16
12
40
Total NET
SF Mtg
Ballroom
Space
Size
4,000
1,800
1,000
900
460
3,000
600
625
29,700
6,100
NA
1,300
1,000
750
3,000
15,000
32,500
25,000
9,400
14,800
20,000
17,500
11,400
70,000
SqFt/GR
2,200
1,800
1,000
NA
NA
3,000
NA
NA
13,300
4,500
NA
NA
1,000
NA
1,500
7,000
12,500
23,000
7,000
8,200
8,000
6,200
3,500
16,500
40.8
16.1
8.6
10.3
4.3
18.3
7.0
NA
NA
NA
16.3
12.2
10.6
28.6
72.1
173.8
NA
45.9
74.4
73.3
49.7
57.0
102.6
STAR
RATING
Year
Opened
Owner
Operator
2.0
3.0
3.0
2.0
2.0
2.0
2.0
2.0
NA
NA
2.0
2.0
2.0
2.0
2
4
3
NA
3
2
3
3
3
5
1985
2007
2006
2011
1994
1971
2006
1995
1980
2006
2012
2004
1986
2011
1973
2002
1960
2010
2003
1990
1957
1997
1974
1778
Wyndham WW
Mountain West Hosp.
Wyndham Worldwide
IHG
Hilton Worldwide
Independent
Wyndham Worldwide
Hospitality Dev. Corp
Village Enterprises
Genesis Partners
Marriott/Baywood
Marriott Int'l
Choice Hotels
IHG
Choice Hotels
Crestline
GF Management
Puskar Trust
Puskar Trust
Skidmore Dev. Co.
Wheeling Pk Comm.
Marriott Int'l
Indep - Jim Justice
Indep - Jim Justice
Laurel Lodge Ent.
Mountain West Hosp.
Lodging Dev. Co.
Double J Dev.
Independent
Best Western
CP Hospitality
Centurion Hosp.
Village Enterprises
CP Hospitality
Baywood Hotels
Marriott
Independent
Double J Dev.
REAL Hosp. Group
Benchmark Hosp.
GF Management
Stonebridge Cos.
Stonebridge Cos.
Same
Same
Marriott Int'
Same
Same
The following two tables provide a snapshot summary of features and amenities of the competitive
set. This information was learned through in-person inspections, a review of competitor websites
and sales collateral and competitive shops.
PROPERTY
Total Meeting Total Meeting
Largest
Space
Rooms
Meeting Room
Total Guest
Rooms
# F&B Outlets
Room Service
Hours
Business
Fitness Center
Center Hours
Hours
Days Inn
4,000
3
2,200
98
0
NA
24 hour
24 hour
Hilton Garden Inn
1,800
6
1,800
112
2
5pm-10pm
24 hour
24 hour
Wingate by Wyndham
1,000
1
1,000
116
0
NA
24 hour
24 hour
900
1
900
87
0
NA
24 hour
24 hour
Holiday Inn Express
Hampton Inn
Best Western Plus
Microtel Inn
Sleep Inn
460
1
460
108
0
NA
24 hour
24 hour
3,000
3
3,000
3,000
2
NA
24 hour
24 hour
600
1
600
86
0
NA
24 hour
24 hour
625
1
625
73
0
NA
24 hour
NO
Village Square Conference Center
29,700
5
13,300
NA
NA
NA
NA
NA
Bridgeport Conference Center
6,100
8
4,500
NA
NA
6-11am, 5-10pm
NA
NA
NA
NA
NA
99
0
NA
24 hour
24 hour
TownPlace Suites
24 | Page
Coffee
Maker
Iron and
ironing
board
Safe In
Room
Hairdryer
Yes
Yes
Yes
Yes
Yes
Corian
Tile
Yes
Yes
Yes
No
Yes
Granite
Tile
Yes
Yes
Yes
Yes
Yes
Yes
Corian
Tile
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Granite
Tile
Yes
Yes
Yes
Yes
Yes
No
Yes
Granite
Tile
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Granite
Tile
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Corian
Tile
Sleep In
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
NA
Tile
HSIA
Wired
HSIA
Wireless
Days Inn
Yes
Yes
Yes
Hilton Garden Inn
Yes
Yes
Yes
Wingate by Wyndham
Yes
Yes
Holiday Inn Express
Yes
Hampton Inn
Yes
Best Western Plus
Microtel Inn
PROPERTY
2 Line
Voice Mail
telephone
Bathroom Bathroom
Counter
Floor
Material Material
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
TownPlace Suites
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Granite
Tile
PRIMARY COMPETITIVE SET
Days Inn & Suites
Days Inn & Suites is a two star property conveniently located off I-79 near shopping and restaurants.
The hotel has 98 guestrooms and three meeting rooms with 4,000 total square feet of space. The
largest room is 2200 square feet. Guestroom amenities include a coffee maker, microwave oven,
refrigerator and safe. Breakfast is included with the rate. Additional business-friendly amenities
include free Wi-Fi and onsite business center.
Groups that utilize Days Inn include City National Bank, Res-Care Inc., Salem International University
and West Virginia Association of Realtors.
Strengths
 Location just off I-79
 Walking distance to shops and
restaurants
 Indoor swimming pool
 Complimentary breakfast with room
 Ample free parking
 Large sleeping rooms
Opportunities
 Limited meeting space offers opportunity
to capture larger groups
 Days Inn brand is not recognized for
exceptional meetings and events
Weaknesses
 Lobby and banquet space is tired
 Poor curb appeal; located in busy location
off highway
 Indoor pool attracts families. (Pool parties
are offered on weekends)
 No restaurant or lounge on site
 Does not offer shuttle service
Threats
 Lower rates capture group and transient
business
Hilton Garden Inn
The Hilton Garden Inn is Clarksburg’s newest hotel, opened in 2007. The property is located off I-79,
within walking distance to New Pointe shopping area. The hotel features 112 guestrooms; all have
25 | Page
flat screen televisions, spacious work desks and Herman Miller ergonomic chairs. Each guestroom is
equipped with a microwave, refrigerator and coffee maker. The property has a full service
restaurant on site, which serves breakfast and dinner along with nightly room service. Fitness
amenities include a health club and indoor swimming pool. Also on property is a 24 hour business
center and gift shop. Parking is complimentary. There is a total of 1,800 square feet of meeting
space on property. The largest space is the ballroom, which can be divided into six smaller rooms,
and can accommodate up to 120 in banquet rounds.
Groups that utilize the property for meetings and sleeping rooms include Bombardier, Chesapeake
Energy, HSH Insurance & Safety Company, Infocision, Medical Action Industries and West Virginia
Association of Realtors.
Strengths
 Newer Property
restaurants
 Restaurant and room service on site
 Nicely appointed meeting space and
guestrooms
 Offers complimentary airport shuttle
Opportunities

Limited meeting space offers opportunity
Weaknesses
 Limited meeting space
 Location is within strip mall and busy
shopping area – lacks character and charm
 Breakfast is not offered with room
Threats
 Newer property with upscale amenities
Wingate by Wyndham Bridgeport
The Wingate by Wyndham is a limited service hotel located off interstate 79 in the Charles Pointe
Development. The property has 116 sleeping rooms which feature refrigerators, microwaves and
coffee makers as well as complimentary Wi-Fi. There is an indoor pool, fitness center and 24 hour
business center on property and breakfast and parking is complimentary. A small, 1,000 square foot
meeting room is located on site, but the property is connected to Bridgeport Conference Center
which has another 6,100 square feet of space.
This property is used regularly by Aurora Flight Sciences, Bombardier, EQT Corporation, Petroleum
Development Corporation and Steptoe & Johnson.
Strengths
 Connected to Bridgeport Conference
Center
 Convenient location off I-79
 Location is near Charles Pointe business
26 | Page
Weaknesses
 Lack of restaurants and activities in area
 Corporate office corridor lacks character
and charm
 No full service restaurant or lounge on

complex and United Hospital
Complimentary breakfast offered with
room.
Opportunities
 Clarksburg has history and culture
 Lack of sufficient space opens up
opportunities to capture large groups
property
 Limited meeting space for large groups,
even though connected to Bridgeport
Conference Center
Threats
 Planned expansion of conference center
will allow for larger groups.
Holiday Inn Express Hotel & Suites
The Holiday Inn Express is a new hotel located off interstate 79 in Bridgeport. It offers 87 sleeping
rooms and suites each equipped with microwaves, refrigerators and coffee makers. A work desk
and 37” flat screen TV is also in each room, and internet access and parking are complimentary. A
complimentary breakfast bar is also offered. The property has a heated indoor pool and spa, 24
hour business center and 24 hour fitness center. There is one meeting room on site which is 900
square feet.
Local groups that utilize Holiday Inn Express include Bombardier, Pratt & Whitney and Steptoe &
Johnson.
Strengths
 Convenient location
 New property
 Complimentary buffet breakfast with
room
Opportunities
 Limited meeting space offers more
opportunities for larger groups
Weaknesses
 Limited service hotel
 Area lacks character and charm
 Is not within walking distance of
restaurants or activities
 Does not offer shuttle service
Threats
 Lower rates capture group and transient
business
Hampton Inn
The Hampton Inn is a two star, limited service property built in 1994. It has 108 guestrooms and
one meeting room which is 460 square feet. There is an indoor swimming pool, 24 hour fitness
center and a 24 hour business center on property. Guestroom amenities include a coffee maker and
complimentary high speed internet access. Parking and continental breakfast are both
complimentary.
Strengths
 Complimentary beverage area
27 | Page
Weaknesses
 Limited room amenities; no safes in room.
Microwaves and refrigerators upon


Convenient location
Guestrooms renovated in 2013
Opportunities
 Limited meeting space offers
opportunities for larger groups
request as available
 No dining options on property
 No airport shuttle offered
Threats
 Lower rates capture transient business.
Best Western Plus
This newly renovated hotel is conveniently located near North Central West Virginia Airport,
shopping and restaurants. The 164 sleeping rooms feature coffee makers, refrigerators, microwave
ovens and safes. The hotel has a full-service restaurant/cocktail lounge, and offers morning and
evening room service. For meetings or social events there is one large, 3,000 square foot meeting
room which can be divided into thirds. Parking is free, and complimentary shuttle service is offered
to and from the airport. Other features include an outdoor pool, health club, and 24 hour business
center.
Groups that use the Best Western include Bear Contracting LLC and Baker Hughes.
Strengths
 Newly renovated property
 Guestrooms are nicely appointed
 Convenient location off highway
 Nearby restaurants and shops
 Very good service
 Restaurant and room service on site
 Complimentary airport shuttle
Weaknesses
 Poor curb appeal with busy location off
highway
 Banquet space is limited
 Cookie cutter banquet space with stack
chairs and low ceilings
Opportunities
 Best Western brand is not recognized for
exceptional meetings and events.
Threats
 Bridgeport location is centrally located
within state
Microtel Inn
The Microtel Inn & Suites by Wyndham Bridgeport is a limited service, discount property with 86
sleeping rooms and one 600 square foot meeting room. It was opened in 2006 and is located
adjacent to the Bridgeport Conference Center in the planned community of Charles Pointe. The
sleeping rooms each have a microwave and refrigerator, and breakfast is complimentary. There is a
24 hour health club and business center on property.
Both Aurora Flight Sciences and MITRE use the Microtel for their transient room needs.
28 | Page
Strengths
 Located across from Bridgeport
Conference Center
 Complimentary breakfast offered with
room
Opportunities
 Limited meeting space offers opportunity
Weaknesses
and charm
 No airport shuttle service
Threats
 Discounted pricing attracts groups and
transient business
Sleep Inn
The Sleep Inn is another limited service, discount property with 73 sleeping rooms and one 625
square foot meeting room. This property opened in 1995. A complimentary breakfast is offered
with the rate as well as free WI-FI. The sleeping rooms are equipped with coffee makers, and there
is a 24-hour business center on property.
There were no contacts interviewed that used this property.
Strengths
restaurants
Opportunities
 Limited meeting space offers
opportunity to capture larger groups
Weaknesses
 Sleeping rooms are dated
 No airport shuttle service
 No refrigerators, microwaves or safes in
rooms
 No fitness center on property
 Poor curbside appeal
Threats
 Discounted pricing attracts transient
business
Village Square is Clarksburg’s largest venue with close to 30,000 square feet of banquet space.
There are a total of five meeting rooms, the largest being 13,300 square feet with a seating capacity
of 800. The ballroom has a built in dance floor and stage.
Local groups such as Harrison County Association of Realtors, James Law Company, Salem
International University and United Hospital use Village Square for their corporate meetings and
social events.
29 | Page
Strengths
 Clarksburg’s largest banquet venue
Opportunities
 Hotel property with sleeping rooms would
be desirable for wedding and other social
groups
Weaknesses
 Recent management changes
 Unattractive exterior
 Inconsistent food
 Bingo facility on property
 More appropriate for social events vs.
corporate
Threats
 Ballroom capacity exceeds most in
Clarksburg/Bridgeport area
TownPlace Suites by Marriott
TownPlace Suites is an extended stay property with 99 guestrooms. Each room features wellequipped kitchens with refrigerators, microwaves, and dishwashers, as well as flat-screen TVs.
Internet access, parking and continental breakfast is complimentary. There is a 24 hour fitness
center, lounge, sundries market and business center on property as well as an indoor pool. There is
no meeting space at this property.
Bombardier and Pratt & Whitney use TownPlace Suites for their transient room needs.
Strengths
 Newer property built in 2012
 Larger rooms with kitchen facilities
 Close to shopping and restaurants
Opportunities
 Lack of meeting space on site opens
opportunity for more group business
Weaknesses
 No meeting space
 Location near busy strip mall
 No shuttle service offered
 No full service restaurant on property
Threats
 Newer property with upscale amenities
Bridgeport Conference Center at Charles Pointe is conveniently located along Interstate 79, minutes
from the North Central West Virginia Airport. The property offers a total of 6,100 total square feet
of meeting space with eight conference rooms, the largest at 4,500 square feet. Connected to the
conference center is the Wingate by Wyndham Hotel, with 116 guestrooms (see separate entry
below located in this section).
Groups that are currently using this property include EQT, CityNet, Davis Law Firm, HQ Aero
Management, West Virginia Association of Realtors and West Virginia Primary Care Association.
30 | Page
Strengths
 Abundance of existing and planned hotels
in area to support large groups
 Attached to existing hotel
Opportunities
 Clarksburg has history and culture
 Lack of sufficient space opens up
opportunities to capture large groups
Weaknesses
and charm
 Limited meeting space for large groups;
lack of space to meet and eat
 Very limited breakout space
 South facing reception area outside of
meeting space gets extremely hot in
summer months
Threats
 Planned expansion of conference center
will allow for larger groups.
 Location is near Charles Pointe complex
and accessible to local businesses
SECONDARY SET
The secondary set of competitive properties is significant because these properties have a location
convenient to the client or an extensive amount of meeting space that can accommodate groups of
150 or more. These venues were most commonly mentioned in our interviews. Their facilities are
large enough to handle meetings requiring a main session, separate dining space, and breakout
and/or exhibit space. Many have recreational options or activities on site, which is important to
groups that meet for an extended period of time or allow attendees to bring their families.
Charleston Marriott Town Center
Located in downtown Charleston, this property has 352 sleeping rooms and 17,500 square feet
of meeting space. The largest room is 6,200 square feet. It recently underwent a multimillion
dollar renovation of all guestrooms and the lobby area. Also on property is one restaurant and
lounge, an indoor swimming pool and a fitness center.
Groups that are currently using the Marriott include the Kiwanis Club of West Virginia, West
Virginia Alzheimer’s Association, West Virginia Bankers Association, and the West Virginia
Community Action Partnership.
Days Hotel Sutton Flatwoods
This property has 199 sleeping rooms and seven meeting rooms with a total of 14,800 square
feet of meeting space. The largest meeting room is 8,200 square feet. A complimentary
breakfast is offered with the room, and WI-FI and parking are also free. There is a full service
restaurant and lounge on site, as well as indoor/outdoor swimming pools, and a 24 hour
business center. Days Hotel is located near Flatwoods Factory Outlets, Mountain Lakes
Amphitheater and Holly River State Park.
31 | Page
Properties currently using the Days Hotel Flatwoods include the American Legion, Wellness
Council of West Virginia, West Virginia Association of Physical Plant Administrators, West
Virginia Bankers Association, West Virginia Board of Education, West Virginia Center for
Professional Development, and West Virginia State Bar.
Fairmont Properties
There are four limited service properties located in Fairmont that are noteworthy because of
their proximity to Clarksburg (25 miles). These four properties are the Fairfield Inn & Suites,
Comfort Inn & Suites, Holiday Inn Express and the Clarion Inn. Each has between 70 and 100
sleeping rooms. The newest property is the Holiday Inn express which was built in 2011.
The Greenbrier Resort
The Greenbrier Resort is an award winning historic hotel with 682 guestrooms and 40 meeting
rooms. The four-star, five-diamond property has a total of 70,000 square feet of meeting space,
with the largest room close to 17,000 square feet. The property has an abundance of
recreational options including championship golf, full service spa, a bowling alley, indoor and
outdoor swimming pools and a casino on site.
Many organizations throughout the state use the Greenbrier for their annual meetings and
events. These include the Builders Supply Association, Consol Energy, Independent Oil & Gas
Association, West Virginia Automobile & Truck Dealers Association, West Virginia Board of
Dental Examiners, and the West Virginia Chamber of Commerce.
Lakeview Golf Resort & Spa
Lakeview Resort is located on 500 acres in Morgantown. The property has 187 guestrooms and
32,500 square feet of meeting space including a 12,500 square foot ballroom. There are two
restaurants, a sports complex and 36 holes of championship golf on property.
Current users of Lakeview include Chesapeake Energy, the Contractors Association of West
Virginia, West Virginia Chief of Police Association, West Virginia Chiropractic Society, West
Virginia Economic Development Council and West Virginia Board of Registration for Professional
Engineering.
Oglebay Resort
Oglebay is situated on a hilltop in Wheeling surrounded by two championship golf courses and a
nearby lake. The property offers 273 recently remodeled guestrooms as well as 54 cottages.
There are 20,000 square feet of banquet space with 15 rooms; the largest totaling 8,000 square
feet. Dining options on property include one full service restaurant, two grills (one seasonal)
and room service. Other property amenities include tennis courts, a fitness center and an
outdoor swimming pool.
32 | Page
Some groups that use Oglebay for their annual meetings include Leadership West Virginia,
Philanthropy West Virginia, West Virginia Association of Rehabilitation Facilities, West Virginia
Bar Association, West Virginia Healthcare Association, West Virginia Housing Institute and West
Virginia Oil & Natural Gas Association.
Stonewall Jackson Resort
Stonewall Resort is located 35 minutes south of Clarksburg. This lakeside resort operated by
Benchmark Hospitality has 208 sleeping rooms and 14 meeting rooms. The largest meeting
space is 7,000 square feet. The property also has an 18-hole championship golf course, marina
and full service spa.
Organizations that currently use Stonewall include the Hardwood Alliance Zone, Huntington
Bank, West Virginia Association of Community Bankers, West Virginia Auxiliary to Hospital
Association, and West Virginia Cemetery & Funeral Association.
The Resort at Glade Springs
This three diamond resort has 200 guestrooms and 12 meeting rooms with 11,400 square feet
of meeting space. The largest room is 3,500 square feet and will accommodate groups of 300 in
banquet seating. There are many dining options including a full service restaurant, grill, café
and sports bar. Recreational options are abundant as well, including an 18-hole golf course,
indoor/outdoor swimming pools, full service spa, 10 lane bowling alley and basketball and
tennis courts.
Current users of this property include the West Virginia Bar Association, West Virginia
Behavioral Health Care Providers Association, West Virginia Hospital Association, West Virginia
Society of Association Executives and the West Virginia Wellness Council.
Waterfront Place Hotel / Morgantown Event Center
The Waterfront Place Hotel and Morgantown Event Center share 30 meeting rooms and close to
35,000 square feet of meeting space. The largest space is 23,000 square feet. The hotel has 205
sleeping rooms, a full service bar and lounge, another seasonal lounge and fitness center and
spa.
Properties that use Waterfront Place and Morgantown Event Center include the Central West
Virginia Telephone Credit Union, Contractors Association of West Virginia, Dominion Hope Gas,
MVB Bank, Tech Connect West Virginia, West Virginia Athletic Directors Association, and West
Virginia Broadcasters Association.
33 | Page
4.3. Future Additions to Supply
As mentioned in the previous section, in response to very high demand, new hotel products are in
various stages of development. There are five properties either in construction or in the planning
stage in the immediate Clarksburg vicinity. Future supply estimates take into consideration the
effect of these properties as well as the impact of the subject property (with a Jan 2016 open date).
Location: West Virginia Market
Publication Date: January 29, 2014
Target
Opening Location
STATUS
Brand
Hotel Name
In Construction
Courtyard
105
Feb-14
Bridgeport, WV 26330
In Construction
Springhill Suites
Courtyard by Marriott Bridgeport
Clarksburg
SpringHill Suites Bridgeport Clarksburg
100
Oct-14
Comfort Suites Bridgeport
Homewood Suites Bridgeport
Cambria Suites Bridgeport
75
108
105
May-14
Mar-16
May-17
In Construction
Comfort Suites
Planning
Homewood Suites
Planning
Cambria Suites
Rooms
Location: West Virginia Market
Project ID: 37287
Publication Date: January 29, 2014
Location
Owner/Developer
Chain: Courtyard
Shaner Hotel Group
Courtyard by Marriott Bridgeport Clarksburg
30 Shaner Drive
State College, PA 16801
Phone: 8142344460
Project ID: 36214
Location
Owner/Developer
In Construction
Chain: Springhill Suites
In Construction
Projected opening:
Rooms:
Market:
Sub-Market:
Projected opening:
Rooms:
Market:
Sub-Market:
2/13/2014 12:00:00 AM
105
West Virginia
West Virginia North
10/24/2014 12:00:00 AM
100
West Virginia
West Virginia North
SpringHill Suites Bridgeport Clarksburg
1235 West Main Street
Bridgeport, WV 26330-1660
Project ID: 15084
Location
In Construction
Chain: Comfort Suites
Projected opening:
Rooms:
Market:
Sub-Market:
5/16/2014 12:00:00 AM
75
West Virginia
West Virginia North
Owner/Developer
Comfort Suites Bridgeport
285 White Oaks Boulevard
Project ID: 46435
Location
Owner/Developer
Planning
Chain: Homewood Suites
Bridgeport Suites LLC
Projected opening:
Rooms:
Market:
Sub-Market:
3/4/2016 12:00:00 AM
108
West Virginia
West Virginia North
Homewood Suites Bridgeport
Genesis Boulevard & Chester Drive
Project ID: 42205
Location
Planning
Chain: Cambria Suites
Projected opening:
Rooms:
Market:
Sub-Market:
34 | Page
5/31/2017 12:00:00 AM
105
West Virginia
West Virginia North
Owner/Developer
Cambria Suites Bridgeport
500 Market Place
4.4. Historical Market Performance
Smith Travel Research (STR) is an independent research firm that compiles data on the lodging
industry; its published data is routinely used by typical hotel buyers. STR has compiled historical
supply and demand data for properties that will be competitive to the subject hotel in the local
market. This information is presented in the following tables, along with the market-wide
occupancy, average rate, and room revenue per available room (RevPAR). RevPAR is calculated by
multiplying occupancy by average rate, and provides an indication of how well room revenue is
being maximized. The table depicted on this page provides an overview of the performance of the
hotel competitive set in terms of occupancy, ADR, and RevPAR.
Supply has been slowly growing over the past seven years and is expected to continue to grow into
2017.
Since 2007, 67,642 rooms have been added to the immediate market annually, a 4.4%
annualized increase. This increase in supply directly correlates to the increase in demand. Since
2007 room demand has increased 116,092 rooms. More rooms are being rented today then existed
in 2007. Current market occupancy is 85.39%. As would be expected, rates have also increased from
the 2007 ADR of $71.80 to the current ADR of $95.65.
Historical Market Performance of the Competitive Supply
2007
Annual
Supply
240,432
Percent
Change
N/A
Occupied
Rooms
147,966
Percent
Change
N/A
Market
Occupancy
61.54%
2008
274,480
14.2%
169,347
14.4%
61.70%
$
2009
274,480
0.0%
185,394
9.5%
67.54%
2010
274,263
-0.1%
219,200
18.2%
79.92%
2011
303,680
10.7%
245,521
12.0%
2012
306,587
1.0%
252,295
2013
308,060
0.5%
263,058
Year
Annualized Change
4.4%
10.2%
Average
Daily Rate
$
71.80
Percent
Change
N/A
$
44.19
Percent
Change
N/A
77.29
7.6%
$
47.68
7.9%
$
77.78
0.6%
$
52.53
10.2%
$
78.47
0.9%
$
62.72
19.4%
80.85%
$
85.18
8.5%
$
68.87
9.8%
2.8%
82.29%
$
89.66
5.3%
$
73.78
7.1%
4.3%
85.39%
$
95.65
6.7%
$
81.68
10.7%
4.9%
REVPAR
10.9%
The competitive market exhibits a strong demand on weekday with occupancies in the high 80’s to
mid-90’s. Weekends; typically a period of low occupancy in most markets, is also strong; exceeding
69%. This level of demand fully supports more supply in the market and the market is responding
with a number of properties in the pipeline.
35 | Page
Occupancy by Weekday
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Total
Month
Jan - 13
60.8
87.4
83.7
89.9
83.1
63.9
56.9
76.1
Feb - 13
69.3
97.2
98.0
97.7
89.8
70.5
68.6
84.4
Mar - 13
73.4
95.5
97.0
96.0
90.5
82.0
77.7
86.5
Apr - 13
72.7
96.7
98.1
98.5
89.0
85.0
84.4
89.7
May - 13
66.1
85.5
96.5
97.5
91.3
87.3
88.5
88.0
Jun - 13
66.0
96.5
98.7
98.5
90.2
81.8
81.0
86.6
Jul - 13
78.0
95.4
94.1
89.8
86.9
91.1
93.0
90.1
Aug - 13
76.5
97.3
98.1
98.1
92.6
86.5
89.1
91.0
Sep - 13
72.0
87.8
96.7
98.5
90.6
87.0
81.6
87.2
Oct - 13
65.6
93.7
95.8
96.4
90.2
84.1
84.0
87.8
Nov - 13
70.1
92.2
91.9
87.7
84.1
78.9
78.6
83.0
Dec - 13
66.2
79.3
75.7
81.6
80.2
73.6
64.1
74.3
Total Year
69.7
91.9
93.3
94.1
88.3
81.2
79.2
85.4
Occupancy % by Day of Week
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Occupancy
Sun
Mon
Tue
Wed
Thu
Fri
Sat
69.7
91.9
93.3
94.1
88.3
81.2
79.2
4.5. Estimated Penetration
The subject property’s forecasted market share and occupancy levels are based upon the hotel’s
anticipated competitive posture within the market, as quantified by its penetration rate. The
penetration rate is the ratio of a property’s market share to its fair share. In this equation, market
share represents that portion of total market demand accommodated by a property, and fair share
represents the subject hotel’s portion of the total supply (calculated as the subject property’s room
count divided by the total supply of the market at large).
If a property with a fair share of 5% is capturing 5% of the market demand in a given year, then its
occupancy will equal the market-wide occupancy, and its penetration rate will equal 100% (5% ÷ 5%
36 | Page
= 100%). If the same property achieves a market share in excess of its fair share, then its occupancy
will be greater than the marketwide occupancy, and its penetration rate will be greater than 100%.
For example, if a property with a fair share of 5% has a market share of 7%, then its penetration rate
is 140% (7% ÷ 5% = 140%). Conversely, if the property captures less than its fair share, then its
occupancy will be below the market wide average, and its penetration rate will be less than 100%.
The first table identifies the basis for the calculation of the subject property’s estimated penetration
rates by segment for 2016 (opening year) within the existing comp set. The second table estimated
penetration in Year 2020. We believe these to be conservative estimates because the subject
property, as planned, will be a more desirable destination then any other property in the local
market.
Subject Property’s 2016 Penetration Rates by Segment
Market Segment
Subject Property's
Total Room Night
Capture (2016)
Market Segment
Percentage (Full
Service Hotels)
Marketwide
Occupied Room
Nights
Fair Share
Subject Property's
Penetration
Commercial
15,000
x
19.0%
x
78,917
=
30.1%
15,500
x
30.0%
25.0%
÷
Leisure
÷
19.0%
x
65,764
=
31.1%
Meeting/Group
9,750
x
30.0%
÷
19.0%
x
78,917
=
19.6%
Other
1,800
x
15.0%
÷
19.0%
x
39,459
=
3.6%
42,050
x
100.0%
÷
19.0%
x
263,058
=
84.3%
OVERALL
Sources: Market Segmentation - Market Surveys, Marketwide Occupancy - Smith Travel Research
MARKET
Sleep Inn Clarksburg
ROOMS
112
116
86
87
98
164
73
108
844
Comp Set 2016 Supply
Comp Set 2016 Occupancy
306,587
85.8%
Subject Property’s 2020 Penetration Rates by Segment
Market Segment
Subject Property's
Total Room Night
Capture (2016)
Market Segment
Percentage (Full
Service Hotels)
Marketwide
Occupied Room
Nights
Fair Share
Subject Property's
Penetration
Commercial
16,377
x
19.0%
x
75,792
=
34.2%
16,923
x
30.0%
25.0%
÷
Leisure
÷
19.0%
x
63,160
=
35.3%
Meeting/Group
13,651
x
30.0%
÷
19.0%
x
75,792
=
28.5%
Other
1,965
x
15.0%
÷
19.0%
x
37,896
=
4.1%
48,916
x
100.0%
÷
19.0%
x
252,641
=
102.1%
OVERALL
Sources: Market Segmentation - Market Surveys, Marketwide Occupancy - Smith Travel Research
MARKET
Sleep Inn Clarkburg
37 | Page
ROOMS
112
116
86
87
98
164
73
108
844
Comp Set 2016 Supply
Comp Set 2016 Occupancy
311,458
81.1%
Explanation of Market Share and Penetration Rate Adjustment
The subject property’s occupancy is forecast by estimating the hotel’s penetration by market segment
for each year of the forecast period. The estimation of penetration rates is based upon our review of
the historical penetration rates of the subject property and its competitors. If the subject hotel and all
its competitors are expected to remain stable in their ability to penetrate the market, then the
historical penetration rates may be appropriately projected to remain the same throughout the
forecast period.
However, when additions to supply are anticipated, or if a particular hotel is expected to alter its
ability to compete in some way (e.g., through a refurbishment or change in brand or management),
then the penetration rates for all the hotels in the market must be adjusted. This adjustment is
necessitated by the circular calculation of the penetration rate. A hotel’s penetration rate is
calculated as its market share of demand divided by its fair share of demand. If one hotel’s
penetration rate increases, thereby increasing its market share and leaving less demand for the other
hotels in the market to capture, then the penetration rates of the remaining hotels automatically
decline (all other things being equal).
For example, let us assume that a hotel is slated for a renovation and repositioning, thereby enabling
the hotel to improve its occupancy through increased market penetration. A higher penetration by
one hotel will result in a larger capture of room nights by that hotel, thus leaving a reduced number
of room nights to be shared by the rest of the competitive set. The additional room nights captured
by this hotel will come out of the same finite amount of demand from which the other hotels in the
market draw their demand. Any inducement of new demand caused by the repositioning will already
have been built into the forecast of market-wide demand in the forecast of market-wide occupancy.
A similar impact is observed when a new hotel is added to the market. Penetration rates for the new
hotel are forecast. These rates are multiplied by the hotel’s fair share percentage (calculated as the
hotel’s fair share of supply) to calculate the hotel’s market share percentage. The hotel’s market
share percentage is then multiplied by the total demand forecast for that market segment in that
year to determine the number of room nights captured by the new hotel in that segment. When the
new hotel enters the market, the penetration of all the existing hotels will automatically be impacted
because these properties will each be capturing a smaller amount of the overall demand once the
new hotel takes its share. If the new hotel captures less than its fair share of demand, then the
penetration rates of the existing hotels will increase, and alternatively, if the new hotel captures
greater than its fair share of demand, then the penetration rates of the existing hotels will decline.
Thus, the penetration rate of a stable hotel is often impacted from year to year by the penetration
rates of its competitors.
38 | Page
5. MARKET DEMAND ANALYSIS
5.1. Introduction
In order to assess the viability as well as determine the size and complexity of a new hotel and
conference center for the City of Clarksburg, a comprehensive research campaign was executed.
This research consisted of a survey of local businesses and state-wide companies and organizations,
followed by contacting hundreds of companies by telephone to interview people involved with or
responsible for planning meetings and events. The primary purpose of this research was to
determine as closely as possible the number of room nights being generated in a reasonable
geographic area in three primary segments; Group, Transient and Social. The secondary purpose of
this research was to determine the meeting/event space needs of these same organizations. This
data will be used to recommend the size and scope of the future property, a minimum set of
amenities and help point to possible brands that would be suitable for the markets’ needs.
Following are the results of this research.
5.2. Survey Results
The survey was sent to approximately 500 e-mail addresses and received 66 responses or
approximately a 13% return. This is a high rate of return for surveys of this type and we believe the
results to be representative of a larger response data set by percentages. The following companies
identified themselves in the survey.
The survey was sent to area chamber of commerce members, statewide associations, and various
corporate meeting planners in Harrison County regarding the proposed Clarksburg hotel and
conference center. The purpose of this study was to gain some insight as to the meetings that are
currently being held in Harrison County (as well as outside of the area), the properties that are being
used, and the specific needs for these events. Perhaps the most valuable part of the survey is the
feedback received from the participants regarding the new property and the effect it will have on
Clarksburg and the surrounding areas.
The Following organizations responded to the Survey
Aurora Flight Sciences
Blooms Florist
Bombardier, Inc.
Builders Supply Association of West Virginia
Champion Industries
City National Bank
City of Clarksburg
Citynet
Consol Energy
Contractors Association of West Virginia
Culliga of Clarksburg
CWV TEL Federal Credit Union
Davis Law Firm
39 | Page
Dominion Hope Gas
Gary Bowden Advertising and Marketing
Harrison County Board of Education
Health Access, Inc.
HOMEFINDERS PLUS REAL ESTATE, INC.
HomeFinders Plus Real Estate, Inc.
Member of Harrison County Association of
Realtors
Hornor Brothers Engineers
Huntington Bank
Independent Oil & Gas Association of WV
Kiwanis Club of Clarksburg
Lockheed Martin Aeronautics
Main Street Manor
Mid Atlantic Aerospace Complex
Pratt & Whitney
Steptoe and Johnson
The James & Law Company
Town of Salem
United Hospital Center
United Security Agency
United Way of Harrison County
WesBanco Bank Inc.
West Virginia Orthopedic Society
West Virginia Activity Professional
Association
West Virginia Association of Community
Bankers
West Virginia Association of Rehabilitation
Facilities
West Virginia Bankers Association
West Virginia Bar Association
West Virginia Behavioral HealthCare
Providers Association
West Virginia Broadcasters Association
West Virginia Center for Professional
Development
West Virginia Chief of Police Association
West Virginia Education Association
West Virginia Geriatrics Society
West Virginia Healthcare Association
West Virginia Junior College-Bridgeport
Campus
West Virginia Manufacturing Association
West Virginia Oil & Natural Gas Association
West Virginia Primary Care Association
West Virginia Prosecuting Attorneys
West Virginia School Board Association
West Virginia Society of Association
Executives
West Virginia Society of Certified Public
Accountants
WV Board of Registration for Prof.
Engineers
WV Humanities Council
Clarksburg-Harrison Cultural Foundation
Kappa Sigma Pi
WV Junior College
By category, 23.1% of the respondents identified themselves as corporate entities, 36.9% as
Associations, 4.6% as Government /Military and 4.6% as Education. These are the primary markets
that will drive group demand.
My organization is best categorized in which
market?
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
40 | Page
Corp
Assn
Gov
Military
23.1%
36.9%
3.1%
1.5%
Small Indepen Other
Educatio
Business
dent
(please
n
Owner Planner specify)
4.6%
15.4%
0.0%
15.4%
72% of the survey participants hold meetings in Harrison County.
Have you held meetings in Harrison County?
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
Yes
No
71.9%
28.1%
The majority of the participants use Bridgeport Conference Center (63.5%) followed by Hilton
Garden Inn (5.8%). 3.8% of the participants use Best Western Bridgeport and Village Square
Conference Center. Other properties that were mentioned were Pete Dye Golf Course, Holiday Inn
Express, Wingate Wyndham and Microtel.
If you have held meetings in Harrison County,
what facility do you primarily use?
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
41 | Page
Bridgeport
Conference
Center,
Bridgeport
Hilton
Garden Inn,
Clarksburg
Village
Square
Conference
Center,
Clarksburg
Best
Western,
Bridgeport
Days Inn,
Clarksburg
Other
(please
specify)
63.5%
5.8%
3.8%
3.8%
1.9%
21.2%
73% of those that took the survey also hold meetings outside of Harrison County and primarily use
Stonewall Resort (61%) and Waterfront Place Hotel (47%). Other properties used the most are
Marriott Charleston and Lakeview resort, but also mentioned were Oglebay Resort, The Greenbrier,
Fairmont Hotels, Embassy Suites Charleston, and Glade Springs Resort.
Do you hold meetings in West Virginia outside of Harrison
County?
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
Yes
No
73.4%
26.6%
If you have held meetings in West Virginia, what properties do
you use? (Please check all that apply)
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
42 | Page
Stonewall
Resort,
Roanoke
Morgantown
Event Center
Waterfront
Place Hotel Morgantown
Lakeview Golf
Resort & Spa,
Morgantown
Marriott
Charleston
Other (please
specify)
60.8%
7.8%
47.1%
15.7%
41.2%
60.8%
67% participants book one to five meetings a year and 15% book six to ten.
How many offsite meetings or events does your
organization plan a year in West Virginia?
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Series1
1-5
6-10
11-20
21+
Other
(please
specify)
67.2%
14.8%
3.3%
6.6%
8.2%
The average length of the meetings is one to two days.
What is the average length of your meetings (in days)?
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
43 | Page
1/2
1
2
3
4
5
6+
9.8%
37.7%
47.5%
4.9%
0.0%
0.0%
0.0%
There are meetings booked in all months of the year. February, April, May and October are the
highest demand months.
In what month(s) are your meetings/events typically held?
(Please check all that apply)
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Series1 29.1% 45.5% 29.1% 41.8% 40.0% 32.7% 30.9% 23.6% 34.5% 38.2% 27.3% 29.1%
The average number of sleeping rooms required for these events is up to twenty per night, but 18%
required no sleeping rooms at all and 18% required up to 100. 3% of participants need over 200
rooms a night when booking their meetings. Most do not anticipate any changes in the amount of
meetings they hold for next year.
On average, how many sleeping rooms do you require
per night for your meetings?
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
None
1-20
21-50
51-100
101-150
151-200
200+
18.0%
41.0%
9.8%
18.0%
6.6%
3.3%
3.3%
With regard to average guestroom rate, 30% of those who filled out surveys pay $100-$115 for
sleeping rooms, 22% pay between 76-$99, and 22% pay higher ($116 to $129). The highest rate
paid in the area is up to $150.
44 | Page
What is the typical Guestroom Rate range that you pay for
your meetings or events?
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
$75 or Less
$76-$99
$100-115
$116-129
$130-150
Over $150
6.0%
22.0%
30.0%
22.0%
20.0%
0.0%
The types of meetings most commonly booked in the Clarksburg area are training meetings,
followed by strategic planning, management/board, and general organizational meetings. In the
category of “Other” participants specifically mentioned holding annual and state conventions, sales
and regional meetings, litigation meetings and educational programs. Other types of events are
social gatherings, trade shows and weddings. Most meetings require a u-shape or boardroom set
for fewer than 50 people or a meeting room with a classroom or banquet set for 100 to 250 or
more.
What types of meetings or events do you typically plan?
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
45 | Page
General
Manage
Strategic
Org
Wedding
Training
Festivals
ment/Bo
Planning
Meeting
s
ard
s
47.5%
27.9%
29.5%
29.5%
3.3%
1.6%
Other
Social
Events
Trade
Shows
Other
(please
specify)
8.2%
9.8%
31.1%
When selecting a property, the factors that are most important to meeting planners are the quality of
Food and Beverage (92.6%), Quality of Meeting Space (89.3%), Complimentary Parking (89%) followed
by Total Cost, Quality of Guestrooms, Quality of AV and HSIA and Need for a Full Service Restaurant; all
between 80% and 89%. These results support the belief that full service hotel can be supported in this
market.
Rate the importance of the following attributes when selecting
a property
Quality of Food and Beverage
Complimentary Parking
Quality of Guestrooms
Complimentary High-Speed Internet access in…
Security/Safety
Bar/Lounge
Sustainability Practices
Coffee Shop (i.e.: Starbucks)
Proximity to your Office
92.6%
89.3%
89.0%
87.6%
87.4%
85.5%
83.4%
80.0%
78.1%
67.3%
67.1%
65.2%
63.0%
62.4%
61.4%
58.1%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
When asked for their thoughts about a new conference center, most had very positive comments
and saw a need for a new property, as hotel rooms and meeting space is quite limited. The general
consensus is that the city needs to be revitalized and a hotel/conference center would do a lot to
support the economy.
SURVEY QUESTION: What will be the impact of a new hotel in DT Clarksburg
POSITIVE COMMENTS
A huge impact! Meeting space needs. On a week to week basis, for example, our club meets
weekly for lunch and struggles to find a venue that can meet our needs.
Bring in more people to spend money.
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Educators hold numerous meetings throughout the school year and the summer. We are
always looking for meeting rooms. Rooms in Clarksburg are hard to come by... or they have
no parking. Also, part of the culture of the meeting is that most of the time when the
meeting is over, everyone likes to go to the same place to eat. We don't get much time
together otherwise. There are also times when we would like to take a working lunch.
Having something like this in Clarksburg would solve a lot of problems. In addition to all of
these meetings, there are many groups of teachers who hold meeting for related
organizations... maybe an academic banquet, club meeting, book club, etc. The meetings
are numerous and having a place to host them in Clarksburg is always a problem. Wifi is
important.
From Memorial Day to Labor Day there are no hotel rooms from the West Virginia border to
Ohio....need more hotel rooms
Having a facility with sufficient space and parking would be beneficial for meetings;
however cost is always a concern for non-profits.
Hope it will revitalize the area
Huge lack of adequate conference space in this state. Clarksburg is a great central location
for them.
I don't believe people will like the hassle of getting around Clarksburg or the lack of parking
unless they plan to put a parking garage close to the center.
I think it could provide a very positive influence to downtown Clarksburg.
I think it is a GREAT idea. We something in the downtown area to attract people to the
downtown area.
I think it would be a great asset for the city if enough business can be generated to sustain
it. The site discussed close to Rt. 50 and parking would seem most suitable for generating
meetings and guests from outside of the city.
I think it would be a great benefit for the growth of downtown Clarksburg. It's just what the
city needs to help with this.
I think it would help to revitalize our town and bring new business
I think that having any place in Clarksburg would help the city. We need a large conference
center for event. I don't see the need for a hotel
If it is successful, it could bring in more foot traffic that could spur more retail.
It could be a positive impact if the hotel is large enough to accommodate weddings,
conferences, etc. in a upscale environment.
It would be a tremendous positive impact not only for Downtown Clarksburg but for the
region. These are the types of activities needed.
It would be absolutely magnificent.
It would give other people a reason and opportunity to come to uptown Clarksburg besides
those who work here. This would support local businesses in the downtown area and help
property values. I think it's very important.
IT WOULD MAKE A BIG IMPACT BECAUSE THE CLARKSBURG BUSINESS COMMUNITY NEEDS
A BOOST FROM ANY SOURCE TO ENHANCE SALES, ETC.
Location is good would be good for the city and convenient location for events
Much needed since there isn't anything in downtown Clarksburg, now.
NEEDED -47 | Page
Proactive move to gain valuable downtown commerce.
Several times each of the past 4 years, I've had to secure housing for visiting artists. Every
time, except once using Main St. Manor Bed & Breakfast, I have used Bridgeport hotels.
We need something within walking distance of Waldomore. Currently I'm arranging a
statewide meeting of Humanities Council here. Again appropriate meeting space & motels
are not in Clarksburg.
The impact of a hotel/conference center to Downtown Clarksburg has the potential to be
very great and it should have been done 15 years ago when it was first studied.
The impact of having a hotel and/or conference center in Downtown Clarksburg will be
great for North-Central West Virginia. There's a great economic benefit to potential
employers and businesses along with job opportunities.
There are lodging issues in the area. Some of our clients have to stay in Weston to come to
Bridgeport.
There are never enough hotel rooms for weekly meetings and even more so when the WVU
football team has a home game. We need more rooms!
There is a lack of hotel space in the fall for WVU football games
We plan and design weddings in West Virginia, not meetings, but hopefully my input will
help. Many local brides are going to Morgantown & Stonewall due to the lack of quality
venues in Harrison County
With all the work force leaving downtown for new developments in out lining areas
anything to draw people in to town would help !!!!! Look it worked in Huntington and other
small cities RAISE the old install new.
Would be nice to have for all events
would be nice to have......city needs to be rejuvenated
would fill a need for a large facility to host dinners, holiday events, and corporate gatherings
Would like to see a venue that can accommodate larger expos for up to 500
Would welcome a more central location for my meetings.
Would welcome new property as long as it has bandwidth to support training sessions
SURVEY QUESTION: What will be the impact of a new hotel in DT Clarksburg
NEGATIVE COMMENTS OR CONCERNS
Charles Pointe just announced another hotel and major expansion that includes new
conference center space for up to 1,200 people. How could a conference center in
Clarksburg be successful with another one that close? Why doesn't the city try to do
something with the owners of Village Square to develop that facility?
I think it's important to have the right size hotel and conference center, with the right scope
of services, in downtown Clarksburg. Bridgeport already has a 300person conference
center in place, with adequate hotel rooms and services attached, or nearby. Bridgeport is
now considering a larger conference center. Shinnston is also researching a larger
conference center. I think Clarksburg needs to identify a niche size conference center that
can be marketed appropriately... be that 50-200people, but very upscale, or 50-100people,
but very modest.
Not needed
Not needed
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Parking tends to be a major issue in the downtown Clarksburg location.
They are a day late and a dollar short.
We have enough meeting space. Spend our tax dollars on economic and community
development.
We seem to keep conducting studies on this issue - I know of at least three done in my
lifetime - but nothing gets built. The Bridgeport Conference Center is the only place in our
area booking these events and Clarksburg is once again left behind.
5.3. Customer interviews
In order to achieve a better understanding of the client base and PHG conducted a detailed
customer analysis. The purpose of this study was to gain the clients’ professional insights regarding
the existing hotel choices, determine their needs for meeting space and sleeping accommodations,
and to hear their valuable suggestions regarding the proposed hotel and conference center in
Clarksburg. This was a twofold effort, which entailed a survey as well as personal interviews. The
customer survey was sent out to the Clarksburg Chamber of Commerce members and local
businesses within a 40 mile radius of Clarksburg. A total of 66 surveys were completed. (See full
survey results in Appendix IV).
In addition, research was done on companies and organizations in the local/regional market, all
within a 125 mile radius of Clarksburg. The cities included Bridgeport, Charleston, Elkins, Fairmont,
Huntington, Morgantown, Nutter Fort, Parkersburg, Salem, and Wheeling. By researching major
employers in the area as well as state wide associations and various civil and fraternal groups, we
qualified contacts to interview.
A total of 220 organizations in West Virginia were researched and/or solicited. Of these, extensive
interviews were conducted with approximately 160 contacts. These contacts included meeting
planners, directors, travel managers and other employees who play an active part in selecting hotel
accommodations. We sought to gain the client’s perception of the properties in the local and
regional area, their preferences for meeting venues (conference centers vs. hotels) and the actual
number of meetings their department or overall organization plans on a yearly basis as well as per
person expenditures (lodging, food and beverage, meeting costs, and audiovisual costs).
Results from this study concluded that approximately 117 corporations or associations have
qualified meetings or events that take place throughout the state. In addition, another 25
organizations with annual or regional meetings were identified through websites. A total of
approximately 770 meetings, trade shows and social events were identified through these
interviews. The average size of these groups was 120 persons. Of these meetings 8% have over 200
attendees, and 4% have over 300 attendees.
Through our interviews, the following common assessments were made:
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There is a lack of sufficient meeting space in Harrison County.
Meeting planners have stressed that there are only a few choices in the area for larger scale
meetings, and these locations are usually booked. Any meetings that are for 200 persons or larger
and require a classroom set as well as a separate luncheon room are very limited on venue choices.
(Bridgeport Conference Center can only accommodate up to 300 classroom style in their main
meeting room, and there isn’t a separate room to feed a group that large.) Other choices like Village
Square Conference Center aren’t conducive to business meetings due to the atmosphere. Groups
are forced to go to outside of Harrison County (Waterfront Place or Stonewall Resort) and utilize
these larger venues.
There is a lack of sleeping room inventory in Harrison County
As mentioned, due to the recent oil and gas boom, sleeping accommodations are taken by the
employees in that industry, making it difficult for local companies to find transient rooms, let alone a
block of rooms for any meetings. The shortage of rooms has driven up the occupancies and rates
locally, and has forced companies to search for available accommodations as far as 40 miles away.
Local hospitals require accommodations for families of patients, and several contacts mentioned the
lack of accommodations in central West Virginia in the fall during West Virginia University football
games and during large festivals held in Clarksburg. (The West Virginia Italian Festival alone attracts
85,000 visitors over four days to the city of Clarksburg and there are no accommodations locally for
these visitors, let alone the large fundraising events leading up to the festival).
There is a lack of quality space and accommodations available in Harrison County.
Most of the venue choices located in Harrison County are limited service hotels. They do not offer
dining choices and other amenities on property such as a coffee shop or room service. Several of
the banquet spaces that are available are not updated, and the food quality is not good, or is
inconsistent. Furthermore, they are not appropriate venues for weddings or formal events.
A hotel/conference center in the city of Clarksburg is needed.
There is an overall desire by the residents and business people in this area to revive the city of
Clarksburg and by adding a nice meeting facility, this would kick start the process. It would be
viewed as an asset to this area and support the local economy, generating much needed revenue for
the city. A new hotel would draw people to the area and serve as a location for meetings and
events that are now forced to move outside Harrison County.
Following are the result of interviews with a sampling of companies and organization contacts
during our research.
ASSOCIATIONS
American Lung Association
American Lung Association does three large training programs each year in various areas of the
state. They would like to hold one in the Harrison County area, but the contact said there is nothing
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large enough for this size group. They require a classroom set for 300 as well as six breakouts for 75
each. They are currently forced to use the Charleston Civic Center or Morgantown for these events
and would welcome another option. Important to them are low rates and food that is not overly
fancy as this program targets a younger audience.
Builders Supply Association of West Virginia
The Builders Supply Association holds several meetings a year including an annual event for 80
attendees plus spouses. Their requirements would include a classroom set for the main session for
80 with additional space for exhibits in the same room, and a banquet set for up to 160 for dinners.
The program is for three days and three nights. In addition, the association holds Department of
Highway programs four times a year. These programs attract 300 attendees who all require
sleeping accommodations for two nights. Conference space requirements include a classroom set
for 300 as well as up to 5,000 square feet of exhibit space for vendors. In the past, they have used
Greenbrier, Waterfront Hotel Morgantown and the Resort at Glade Springs in the past. Clarksburg
would also be a consideration for them due to the central location.
Contractors Association of West Virginia
This group books 15 statewide meetings each year, and two to three of them are held in the
Bridgeport and Morgantown areas. They typically require 55 sleeping rooms for three nights and
meeting space for 55. They do incorporate golf into their programs and have used both Bridgeport
and Pete Dye courses in the past.
Independent Oil & Gas Association of West Virginia
The meeting planner for this group expressed her desire for a larger facility that could accommodate
large groups. Her winter and summer meetings both have 500 to 600 attendees for two nights.
Their sports weekend is for 250 people and smaller environmental and safety training meetings
which are held regularly are for 30-200 people. The meeting planner’s biggest challenge is their
equipment show, which includes the display of large trucks and machinery (which can be held
outdoors under tents). She is forced to use Charleston properties because of the size of the event,
but she said it doesn’t make much sense since drilling is done in the northern part of the state. She
has used Greenbrier, Homestead and Nemacolin resorts, as well as Waterfront Hotel and Lakeview
Resort in Morgantown.
Tech Connect
Many of their members are in the northern part of the state so Oglebay works well for them as well
as Waterfront Place in Morgantown. A 100 person summit is also held in Charleston each year.
Since Clarksburg is in the middle of the state it would be considered as a future location as their
organization continues to grow.
West Virginia Activity Professional Association
This association holds an annual program for up to 150 people from Wednesday through Saturday.
All attendees require sleeping rooms for three nights, and meeting space for 150/classroom is
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required. In addition, they hold several one to two day educational events for up to 60 attendees
and also require sleeping accommodations for most of the group. They are currently using Grand
Pointe Conference Center, Wingate by Wyndham Vienna, and Comfort Suites Conference Center in
Mineral Wells. Important to this group is being close to the airport, good audio visual equipment
and support and having local restaurants and activities nearby.
West Virginia Association of Community Bankers
This group holds six meetings each year ranging in size from a 30 person director’s college to the
annual conference for 200. The two day annual conference requires a meeting room for 200 with
classroom style seating, space for lunch for the group, and another 4,000 square feet of exhibit
space. Additional breakouts are also needed for this meeting. Adequate space, as well as good
audio visual equipment/staging are important to them. The planner expressed her desire to have a
more central location to hold these meetings and a place that has more activities available for her
groups. They are currently using Stonewall and the Charleston Marriott and are considering
Morgantown for future events.
West Virginia Association of Rehabilitation Facilities
There are 16 training meetings that are held throughout the state for 24 area directors and their
staff. These programs average 50 attendees for one night and one day. There are also a couple of
larger training programs that take place for 150 people, classroom style, and these also require
sleeping accommodations for most of the group. In addition, a yearly awards banquet is held for
200 people for two nights and two days. The group finds it challenging at times to find a property
that can accommodate their larger groups for the meeting as well as dining. They have used
Bridgeport Conference Center, Stonewall, and Oglebay in the past.
West Virginia Auxiliary to Hospital Association
This group plans two meetings a year, both for two nights and two days. The smaller of the two is
for 200 attendees and usually takes place at Stonewall. The larger program is for 400 people and is
held at the Greenbrier. Important to both programs is sufficient space to hold a meeting and serve
meals, as well as nice amenities on site for a captive audience.
West Virginia Banker’s Association
The association holds a large annual conference each year in July at the Greenbrier. In addition,
there are 25 yearly one to two day training programs which are held in the city of Charleston or in
Harrison County. These programs are for 25-30 people and may require a handful of guest rooms
for the two day events. The organization is currently using Stonewall Resort, Bridgeport Conference
Center (only when they offer a special $49 Day Meeting Pacakges), Best Western (great hospitality,
nice space and good food), and Charleston properties (Marriott, Holiday Inn Express and Embassy
Suites). Important to them is the rate, parking, quality food and beverage, and comfortable chairs.
They would welcome another property in Clarksburg and definitely consider using it for their
programs.
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West Virginia Bar Association
This organization holds two annual conferences; one for a group of 100 for one night and another
for a group of 175 for two nights. Venue choices for the larger conference are more limited as she
requires two different meeting rooms (one for 150 classroom and one for 30 classroom) as well as
an exhibit room and break area. The larger program is usually held at Greenbrier or Homestead
because of the space needs. The smaller program is held at Oglebay Resort or Glade Springs. The
contact likes to use conference packages because of the ease in planning. She also mentioned that
shopping, historic tours and other available activities are important to them when determining a site
for their meetings.
West Virginia Behavioral Healthcare Providers Association
This group holds one annual conference each year for 75 people for three days. The attendees are
higher level executives who appreciate a more upscale property with nice amenities. The
conference generally takes place in May or June and is rotated each year to different areas of the
state. They have used Stonewall Resort as well as Glade Springs in the past. Important to this group
are fitness and leisure amenities (pool, fitness center and golf nearby) and things to do outside of
the venue. Despite the fact that this property would not be a resort destination, the contact would
consider Clarksburg because of the proximity of the airport (good for his speakers) and central
location of the city itself. He likes the fact that the guests would not be “trapped” on property, but
stressed that some rejuvenation of the city would be necessary before he would bring his group
there. He would welcome a conference center concept and prefers package pricing over a la carte.
West Virginia Broadcasters Association
The executive director of this group books one yearly meeting and expressed her frustration with
the venue choices in the region. Her winter meeting is for 150 people, classroom style. They like to
have lunch in a separate room and then dinner for 250 in the evening. Space is always limited. She
also said that ceilings are usually low; she needs 30’ ceilings for her presentations. They have used
Stonewall Resort and Waterfront Morgantown for meetings in the past. She would welcome
another venue that has ample space and good tech support.
West Virginia Center for Professional Development
This organization books close to 75 meetings a year which are continuing education and professional
development classes for teachers and principals. These include technology training events for one
to two days for 100 persons, advanced placement programs which are four day programs for 70
people, and principals leadership academies which happen three times a year with 80-150
attendees. Day programs such as iPad basic trainings and beginner teacher academies take place 50
days out of the year. These programs are for 30-35 people. The group currently uses Lakeview,
Stonewall Resort, Days Hotel Flatwoods and various other properties around the state. Extremely
important to this group is bandwidth to support groups of 30 at a time, as well as low room rates
and reasonable food and beverage pricing.
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West Virginia Chief of Police Association
The association does two large training programs for their northern and southern regions; one in
spring (April) and one in fall (September). These are one day meetings for 200 people in a classroom
style set with approximately 50 overnights. The northern group is usually held at Lakeview and the
southern takes place at Woodrow Wilson Auditorium in Beckley. They also do a large annual event
for 150 people in the fall each year which is an entire weekend event. This program includes
spouses and requires 50-75 sleeping rooms for two nights. This has been held at Bridgeport
Conference Center and Ramada Inn South Charleston in the past. Important to this group is the rate
(typically pays around $85.00/night) and quality food and beverage. They are very receptive to
having a new conference center in the mix and said they would definitely consider using it. A
comment was made that there are “no hotel rooms available from the West Virginia to Ohio border
from Memorial Day to Labor Day.”
West Virginia Economic Development Council
The council books several meetings throughout the state each year. The annual meeting is generally
held in February in Charleston at the Embassy Suites and another program with state economic
developers is held in the fall at Lakeview Resort. Both are for 150 attendees for two nights. In
addition, several other regional events and training programs are held in Morgantown and Fairmont
for the same size groups. This group likes to have good amenities on site including a full service
restaurant and health facilities since they really don’t leave the venue.
West Virginia Education Association
This organization plans a large professional conference for 200 attendees in October of each year. It
is always held at the Marriott Charleston and they would not move it out of the area. In addition,
they plan a small, 20-person, executive committee meeting that is a day and a half long. They
currently hold these smaller programs at the Charleston Sleep Inn or Embassy Suites but would
consider Clarksburg for these. Important to them is the quality of the meals and space.
West Virginia Geriatrics Society
The Geriatrics Society holds an annual fall program and four training sessions per year. The annual
session is for 100 attendees and half require sleeping accommodations for one night. The skills
training sessions are for two nights and are usually for a group of 50. They have used Bridgeport
Conference Center, Stonewall and Grand Pointe in the past, as well as various Charleston properties.
Important to the group is state of the art audio visual equipment and a strong technology staff.
West Virginia Healthcare Association
The contact shared that they hold several educational programs each year including two leadership
conferences for up to 150 attendees for one and a half to two days and two nights. They typically
move this program around the state and have used Oglebay and Stonewall Resorts as well as
Flatwoods Days Inn. They also do a 250-300 person annual program in May for three days. They are
forced to use Charleston Marriott and Embassy Suites as well as the Charleston Civic Center for the
larger programs because of the trade show space they require for this event (up to 10,000 square
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feet) . The contact believes Clarksburg is a good location and there are plenty of things to do in the
area, so she would definitely consider using a new property. Important to this group is the food,
package pricing (Modified Meeting Packages gives them the opportunity to go offsite to restaurants
for dinner), ample meeting space, parking (availability at a discounted rate), and internet included in
room rate. Her final comment was "There is a HUGE lack of adequate conference space in this
state."
West Virginia Hospital Association
The association holds one large annual program at the Greenbrier every year, as well as a couple of
regional events at resort locations such as Stonewall or Glade Springs. On occasion, they hold oneday educational events for 50-100 people and require approximately 20 rooms/night. They
currently use Morgantown for those because the location is good for them. The contact also
believes Clarksburg would be a good location as well, and would definitely be a consideration for
these types of events. She also mentioned the great need for sleeping rooms during WVU football
weekends as everything is always sold out around Morgantown.
West Virginia Manufacturing Association
This group plans two large conferences each year and would consider Clarksburg for one of them.
This program is their Leadership Summit which is for 150 people, but will be up to 250 next year.
They require a classroom set for 250 plus exhibit space. They currently use Glade Springs Resort,
but they are quickly outgrowing it and she feels that Waterfront is too expensive and Stonewall is
too far out. The contact explained that most of their attendees are from the Charleston area, but
they tend to lose them because they are close to their offices. This makes Clarksburg an ideal
location. Important to the group is reasonable pricing, good location, parking and recreational
amenities (pool, golf nearby, theater, etc.)
West Virginia Oil and Natural Gas Association
The event planner for this group was very receptive to having a new conference center in the mix.
She said they would consider Clarksburg for the large EXPO which they hold each year. This event is
for 500 people in a classroom style set, plus exhibit space for heavy equipment and large
vehicles. In addition to this large program they also do some smaller groups of 25 to 200 attendees
for one day. The Charleston Civic Center is used for the large event and Stonewall and Oglebay
Resort for the smaller groups. Important to this group is parking, enough quality space and
reasonable pricing. They avoid the Waterfront Morgantown because it is overpriced and they do
not consider them to be easy to work with. The contact also commented on the natural gas boom in
West Virginia. She said she does not see an end in sight as there are several shale formations below
Marcellus shale.
West Virginia Orthopedic Society
The Orthopedic Society plans a large annual event for 100 in the spring. This is a two night program
which has been held for the past several years at Stonewall. The director of conferences for this
group also oversees several other orthopedic societies and associations in the state, so she plans a
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great variety of programs ranging from one day training events to luncheons to executive retreats
and summits. Her higher level groups stay at Greenbrier or Stonewall, and other conferences are
held at Oglebay, Waterfront Morgantown, Snowshoe, or Charleston Marriott. She has a large
training program that she does yearly for 250 people that she holds in Charleston. She does not get
participation from her northern members because of the location, so Clarksburg would be an ideal
location for that if space could accommodate the group for a classroom set and separate room for
lunch. Important to this group are, 1. Audio/visual – don’t nickel and dime. They don’t mind paying
if the equipment and technology is top notch. (The contact likes SWANK Productions), 2. Free
wireless, 3. Complimentary (or reasonable) parking and 4. Conference package pricing.
West Virginia Primary Care Association
The association plans some legislative events and training programs which are always held in
Charleston. They also do smaller, 30 person training programs regionally once or twice a year.
Clarksburg would be a central location for these events, which are currently held in Bridgeport,
Flatwoods or Morgantown. They prefer to use package pricing for their groups.
West Virginia Prosecuting Attorneys Association
This group does several different types of training programs around the state each year. They have
a large winter and summer training program for 100-200 attendees that are each two days long.
The winter meeting is generally held in Charleston and the summer program at a resort property. In
addition to these programs, they hold a six to eight week Law Enforcement Training/Roadshow
around the state reaching up to eight cities. On average they host 100-200 attendees at these
events for one or two day meetings. Another smaller, week-long training program is held twice a
year for 40 people. Clarksburg would be a consideration for both of these events. They are
currently using Stonewall, Embassy Suites Charleston and Oglebay Resort as well as the Greenbrier
for their events. Important to this group is complimentary WiFi and good fitness facilities.
West Virginia School Board Association
The School Board Association does a half a dozen meetings a year ranging in size from 60 to 250.
The smaller president’s retreats are one day, one night programs for 60-150 attendees. The
orientations which take place in June are three day events for up to 150 attendees. The largest
winter conference usually takes place in Charleston and requires space for 250 people for a meeting,
meals, breakouts and exhibits. Properties they are currently using include Oglebay, Snowshoe,
Stonewall, and Glade Springs resorts, as well as the Marriott Charleston and Waterfront Place Hotel
in Morgantown.
West Virginia Society of Association Executives
There is one annual meeting that is held in the state which is typically for two nights and two full
days. They generally have 100 attendees and use a classroom setting, but need some additional
space for a small expo within the room. They also require several breakouts. This year they are
going to Glade Springs in September.
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West Virginia Society of Certified Public Accountants
This group does not do much in the Clarksburg area right now. Their annual meeting is always held
at the Greenbrier, and Morgantown is a much more convenient location for their other programs.
They usually hold an annual 60-70 person continuing education meeting in Morgantown in
December for two days. They also do the same meeting in Charleston, with a larger audience of
175-200. Wheeling is another destination for them and they place a couple of programs a year in
that location. The contact mentioned the lack of hotel rooms in the fall during WVU football games.
This would be a time when individual travelers would welcome a hotel in Clarksburg and stay
overnight before or after games.
West Virginia State Bar Association
The Bar Association does a two-day annual meeting with 150 people each May and nine smaller
regional meetings in the fall. The annual meeting requires 100 sleeping rooms for two nights, a
classroom style set for 150 for the conference and space for up to 250 in rounds for the receptions
and dinners. The regional programs can be anywhere from 25-100 people, but generally they
average 50. These are day programs with very minimal needs as far as sleeping rooms. Properties
used in the past included Four Points by Sheraton and Marriott Charleston, Greenbrier, Bridgeport
Conference Center, and Days Hotel Sutton Flatwoods Important to this group is budget and terms of
contracts. They look to keep costs down and require flexibility with cancellation clauses due to the
demands of the court system.
GOVERNMENT
FBI – Criminal Justice Information Services Division
The contact books six definite meetings per year and possibly another two to three that are
unscheduled. Her programs range from 50-250 persons and are usually two to three days long.
They can accommodate some of the smaller meetings on site, but some must have public access.
Even though Bridgeport Conference Center is close, they don’t use it often because they can’t
accommodate a large block of sleeping rooms at a per diem rate. The oil and gas boom has affected
the number of sleeping rooms they can get and she stressed that it is a big problem. For social
events she would use Stonewall as there are “not many choices in the Clarksburg area”. Her
suggestion for a new property: It must have enough space for 250 people and offer sleeping rooms
at per diem rate, good quality audio visual equipment, and restaurants within walking distance since
most of their attendees do not have cars. This group books approximately 300 transient room
nights/year and 400 group rooms.
MITRE Corporation
This is a federally funded research and development center that seldom has a need for meeting
space, but they do utilize approximately 75 transient room nights per year. They currently use
Hilton Garden Inn and Microtel. The contact said they have a good relationship with Hilton and like
the brand.
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US Federal Courthouse, Clarksburg
Because of the civil hearings and criminal trials that take place in Clarksburg, there is a need for
sleeping accommodations for attorneys, jurors and family members. Every other month a grand
jury meets and jurors come from as far as Calhoun, Preston, Braxton and Monongalia counties. (Per
diems are offered for sleeping arrangements if traveling over 50 miles.) A recent trial which
included a pharmaceutical company lasted the entire month and 25-30 attorneys stayed in
Bridgeport for extended periods of time. The contact who was interviewed estimated that 350-400
individual room nights are booked each year by those visiting the courthouse.
CORPORATE
Aurora Flight Sciences
This company’s need for offsite meeting venues is minimal, as they have ample space onsite to
handle the customer events they hold. They do book one or two management off-sites each year
for ten people and usually use the Bridgeport Conference Center or other Bridgeport hotels.
However, they do have a large need for transient rooms; however, as they have three to four
employees and/or customers visit for weeks at a time, (700 total room nights/year). The shortage
of sleeping rooms in the area has made it challenging, so the contact at Aurora would be glad to
have another choice of properties. When booking a hotel, they look for government per diem rates
for their customers and direct billing. For social events, the contact would first think of Stonewall
Resort.
Baker Hughes
This group holds four local day meetings a year and the contact expressed how difficult it is to
secure both meeting space and sleeping rooms at local hotel properties. They book two training
programs, a town hall meeting and a human resources benefits meeting with an average size of 150.
They currently use Bridgeport Conference Center for their meetings.
Bear Contracting LLC
This company books small training meetings for 40-45 people several times a year. They also hold a
holiday party for 70. They are currently using the Bridgeport Conference Center and the Bridgeport
Country Club, and would consider using a new property in Clarksburg if available.
Bombardier
Bombardier also has space in their own facilities, but they hold occasional two to three day offsite
management meetings for 20 people. These are always held within one hour of their facilities, and
they have used Stonewall in the past. They also book up to 100 transient sleeping rooms per year
with rates from $45-$130. For transient rooms, they prefer to be close to their offices so they use
Wingate, Holiday Inn Express and Hilton Garden Inn.
Champion Industries
Champion has divisions all over the state and they hold up to 10 meetings per year. These are
regional and sales programs for up to 75 people for one day. They only require a handful of
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overnight rooms since most are local to the area. Most recently they have used the Morgantown
properties as well as Pullman Plaza in Huntington and Marriott in Charleston. Since Champion has
business suppliers in Clarksburg, they would definitely consider using the area for one meeting a
year. Most important to their programs is good food, comfortable meeting space and plenty of
convenient and complimentary parking.
EQT Corporation
EQT has three local offices, and Cheri books five or six day meetings a year for her office alone.
These are generally departmental or training programs with 50 people in a classroom set. Many
times meetings are only a half day and they pay less than $30 per person total. No overnights are
needed as most of their attendees have relocated to the area. When they do require sleeping
rooms for their corporate managers, they pay $98 to $120. They are currently using the Bridgeport
Conference Center because of the convenience and because according to the contact the Hilton
Garden Inn is always booked. Good conference space and low rates are important to this group.
HQ Aero Management
This is a small staffing agency and they would not have a need for any off site meeting space, but
they do require up to 20 transient rooms a year. They pay government per diem and use Spring Hill
Suites. For her own personal use when booking social events, the contact utilizes Bridgeport
Conference Center.
HSH Insurance & Safety Company
This group does the safety training for the oil and gas employees through Antero. They do two to
three classes per month and typically have 15-25 attendees per class. All of their programs are at
the Hilton Garden Inn because of the great rates they offer them for their meeting space ($180
rental, inclusive of service charge) The hotel also allows them to bring in their own food and audio
visual equipment. Sleeping room needs are minimal, if any.
MVB Bank
MVB books annual, quarterly and commercial banking meetings for 25 to 50 people. Meetings for
their branch managers are held on a monthly basis and half of the group requires sleeping
accommodations. They also hold an annual holiday event for 200. They have used Morgantown
properties as well as Bridgeport Country Club for their events.
Petroleum Development Corporation
Petroleum Development Corporation does five to six employee offsite meetings per year for 50-100
people. These are one day events without the need for sleeping rooms. They also book an annual
holiday party for up to 250 people with 100 sleeping rooms. Since their corporate headquarters are
in Denver, they have many of their consultants and auditors visit regularly so they require up to 200
transient room nights each year. They are currently using Bridgeport Conference Center for
meetings and Wingate for sleeping rooms.
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Pratt & Whitney
Pratt & Whitney does three or four management team meetings per year for 15 people each. These
are held in January/February and September only. They may need sleeping rooms for one of the
meetings on occasion, but for the most part these are one and two day programs. For these
meetings they use Hilton Garden Inn, Pete Dye Golf Resort and Bridgeport Conference Center. Pratt
& Whitney uses 200 transient rooms a year and typically uses the Hilton Garden Inn, Town Place
Suites Marriott and Holiday Inn Express. Rates range from $110 to $150 for sleeping rooms and
they don’t pay more than $40 per person for food and beverage and meeting space. In addition to
meetings, they book one holiday event per year for 160-200 people and have a $10,000 budget. In
2013 they used Provence Market event space in Bridgeport and 2012 Bridgeport Conference Center.
Important to them for meetings is proximity to office and quality of meeting space. A suggested
brand for a new Clarksburg property would be Embassy Suites.
Steptoe & Johnson
Steptoe & Johnson has conference facilities which will accommodate up to 80 people in their new
offices. They hold larger day meetings twice a month for groups of 100 or more at Bridgeport
Conference Center. Once a year they also hold an abstractors meeting for various government
agencies either at Bridgeport Conference Center or in Fairmont. These programs are for 250
attendees with limited sleeping rooms. In addition to these programs, they hold one 300 person
firm event at the Waterfront Morgantown once a year. This program is for two days and does
require sleeping accommodations for up to half of the group.
United Hospital
United Hospital has 310 beds and draws people from 14 counties. There is a need for individual
sleeping rooms on an ongoing basis both for patient families and ongoing employment interviews
and businesses visitors. The hospital holds several social events each year including their Holly Ball
which is generally for 200-230 attendees (and requires up to 100 sleeping rooms), two volunteer
awards luncheons for 100 people, an annual Celebration of Life brunch for up to 200 people,
membership brunch for 80 and Auxiliary Board retreat for 22 people.
V1 Aviation
V1 Aviation books all of the transient rooms for the pilots who fly into North Central West Virginia
Airport. The planner estimates that 1,000 individual room nights are booked each year. The
preference is to have a hotel property that is close to the airport, has a full service restaurant on site
or nearby, and provides a reasonable rate. The two properties that are called first are the two that
offer a courtesy shuttle; the Hilton Garden Inn and the Best Western. The contact was delighted to
hear that a new hotel could be going up in Clarksburg since she has such a difficult time finding
availability.
5.4. Demand Generators by Segment
Potential business for the proposed Clarksburg property will fall into three main areas; group,
transient and social. Through our research we have identified potential generators in each area.
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Group
Corporations and state associations currently book the most group business in the area; a majority
of which are for training, board meetings, and management meetings. These meetings average
one to two days in length and may or may not require sleeping accommodations. Pratt &
Whitney, Baker & Hughes, and Petroleum Development Corporation (for example) hold day only
programs which range from 15-150 persons. Larger organizations hold regional, departmental,
and branch managers’ meetings ranging from 40 to 400 employees and do require a block of
sleeping rooms. (Huntington Bank and MVB Bank are two good examples.) The majority of these
companies use or have used Bridgeport Conference Center, especially for their larger meeting, but
they have expressed the need for more choices in the area. Important to these users is ample
free parking, convenience to their offices and enough space to meet as well as feed the group.
The average spend for daily food and beverage is $40-60 per person and group sleeping room
rates average $100-$115.
Association groups will account for the largest volume of group business. Most of the statewide
associations book yearly legislative programs in Charleston, but travel around the state for their
other events. These include annual, regional, and educational classes. Sizes of association groups
vary from 75 to 700 or more, but most average approximately 150 attendees. The length of these
programs is one to three days. Associations tend to need space for their exhibits (on average up to
10,000 square feet of additional space) and for some groups finding a venue this large can be a
real challenge.
The hotel options with the most space for these larger events are the
Morgantown Event Center/Waterfront Place, Greenbrier Resort and Snowshoe Resort (a
combination of three properties with a total of 10,000 guestrooms and 15,000 square feet of expo
space). Price conscious groups avoid the first two options, leaving them with even fewer choices
for their meetings. For annual events, associations like to use resort type venues such as
Greenbrier, Stonewall Resort and Glade Springs Resort. Important to these groups are activities
(many times families join the members) and once again, ample meeting space. Smaller regional
programs are held at Days Hotel Flatwoods, Lakeview Resort, Waterfront Place Hotel and
Bridgeport Conference Center. Most planners expressed that Clarksburg would be a good central
location for their members and convenient due to the easy highway access.
Transient
Transient business will be generated from local companies who tend to use properties for their
visiting clientele or employees from other locations, as well as other individual travelers in the
area. Groups such as Aurora Flight Services, Steptoe & Johnson and V1 Aviation each use over
700 room nights per year. Each of these companies has expressed the frustration of trying to find
adequate accommodations in the Clarksburg/Bridgeport area. The recent growth in the area of oil
and gas has caused a surge in hotel occupancies and depleted the inventory for local companies.
One contact explained that she could not get a single room for one of their executives and had to
put him up at a property in Weston, 20 miles away. Others have had to stay 40 miles north in
Morgantown. Finding a hotel room has become a frustrating and time consuming process, even
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before the rate is quoted. There is more frustration when average rates of $76-100 are going up
as high as $149 per night. Other sources of transient guests stem from the local hospitals in the
area who require accommodations for families of their patients and guests attending events held
locally in Harrison County and as far north as Morgantown.
Social
Through our survey and interviews, we have learned that the social market in Clarksburg would be
made up of events such as weddings, family reunions, galas, balls, hospital and festival
fundraisers, and Christmas parties. These events range in size from 100-400+ persons and once
again, the need for space large enough to hold these groups has been clearly identified. Groups in
the range of 250-300 prefer to use Bridgeport Conference Center when available. Anything much
larger than that (especially if a dance floor is needed) is forced to use Village Square Conference
Center if staying in Harrison County. The closest choices outside of Harrison County include
Stonewall Resort, Lakeview Resort and Waterfront Hotel. Although these are viable choices for
weddings since they are willing to travel a bit farther, they do not lend themselves well to
corporate functions that need to stay closer to home. Corporate groups most often hold
Christmas parties with an average size of 150-200. Smaller groups have the option of using the
Best Western, Days Inn or Hilton Garden Inn, but these event spaces max out at 150 people.
The following table provides a summary view of Group and Social demand in each primary market
segment the subject hotel can expect to do business with. Please note that the Social numbers in
this chart are extraordinarily low because they relate only to ancillary social business generated by
companies and organization.
MARKET SEGMENT
Association
AVG
# MEETINGS
AVERAGE
ATTENDEN
PER YEAR LENGTH DAYS
CE
LARGEST
MEETING
(ppl)
EXHIBIT HALL
SIZE (SF)
TOTAL
GROUP
ROOMS
TOTAL
TRANS
ROOMS
TOTAL
SOCIAL
ROOMS
DMPs
34465
40
100
31450
405
1.8
138
1300
10000
Energy
38
1.0
89
250
0
275
415
0
4870
Corporate
151
1.3
59
400
0
1810
3920
320
9070
Government
16
1.2
80
400
0
1440
680
20
2090
SMERF
77
1.3
161
600
0
5070
140
70
2475
Social
83
1.0
179
500
0
190
0
310
0
TOTAL
770
1.5
122
43250
5195
820
49955
15% Capture
116
6488
779
123
7493
20% Capture
154
8650
1039
164
9991
DMP = Day Meeting Package
APPENDIX III provides a full listing of all the organizations that were interviewed along with
identified demand in each market segment.
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6. SUBJECT HOTEL DESIGN RECOMMENDATIONS
6.1. Overview
In order to make a recommendation for the design of the Subject property, we carefully analyzed
the information we received from the meeting planners and potential customers of the property
and compared those needs with the current supply within the market. We found that there is a
need for quality hotel rooms that are combined with conference space that can accommodate the
needs of larger meetings, social events and trade shows. We also evaluated the effect of market
inventory on penetration with the goal of designing the subject property to achieve full market
share once stabilize.
Given these parameters we believe the market can support a full service, branded hotel with 160
guestrooms, 12,000-15,000 square feet of meeting and banquet space, including an 8,000 square
feet ballroom and a full service restaurant. This sized facility would support the needs of the
market and can be part of the community’s efforts to revitalize Downtown Clarksburg.
We evaluated the benefits of a traditional hotel compared to a dedicated meetings focused
conference center hotel product. The fundamental difference between a traditional hotel and a
conference center is the amount of focus the facility places on the meeting market. A traditional
hotel has multi-purpose meeting space, designed with maximum flexibility to accommodate any
and all types of events. A dedicated conference center environment is designed for the sole
purpose of providing a successful meeting experience, with minimal focus on social and nonmeeting events. We are recommending a traditional hotel due to the need in Clarksburg and
Harrison County for a quality, large ballroom that can support a variety of meeting and social events.
Although we are recommending a traditional hotel product, there are benefits in considering
developing some of the elements of a conference center. Conference centers are designed
specifically to provide an environment for efficient and effective business gatherings. They feature
meeting space dedicated to meet the needs of small-to-medium size meetings, including state-ofthe-art lighting, acoustical treatments, ergonomic seating, meeting technology equipment and other
customized features. These design elements can be incorporated into the non-ballroom space and
provide an opportunity for the facility to distinctly separate and market itself against properties that
are outside Harrison County.
A product that is offered in a conference center environment that the Subject property should
consider is a Day Meeting Package (DMP). The DMP is a package that includes the meeting room,
standard audio visual equipment, continuous refreshment breaks and lunch for one price per
person, per day. The refreshment breaks can be shared with other conference attendees (but not a
requirement) and all meals are served in a common restaurant. The meeting planner enjoys the
benefits of ease of planning and knowing, upfront, the cost of the meeting, without any hidden
charges. The property experiences guaranteed revenues with higher profit margins due to
efficiencies in the food and beverage production and servicing.
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SURVEY QUESTION: What Features do you need in a meeting facility?
Like conference package pricing.
Need adequate space for meeting and dining for groups up to 200
Need ample space for meeting, vendors and meals.
Need sufficient space for meetings, meals and exhibits.
Need to have space to accommodate a group of 150+ for meals and meeting. We need 30' ceilings and good
a/v and tech support. Not a lot of choices.
Next year the Leadership Summit increases to 250 and will have expo as well. Need large enough property
which is not too close to Charleston. Clarksburg is a great location.
Our group likes to have nearby activities, especially for week long training sessions
Prefer Conference Pricing
We need adequate space to accommodate our groups of 300 with exhibits. Clarksburg is also a good location.
Wheel - Chair handicap accessible facilities are critically important
6.2. Design Fundamentals
The ideal design and layout of a full service hotel conference center finds the right balance between
creating an infrastructure and layout that meets the needs of the market with the quality and
amenities to match the culture of the community. The design will meet the ideal requirements of:
 An inviting front entrance that provides a warm and welcoming first impression on the
quality of the facility and services offered;
 Comfortable accommodations that are designed for all types of guests from individual
travelers to conference attendees to families;
 Amenities and services that complement the environment and support the guests
throughout their stay, in addition to welcoming local guests to use the facility.
An exceptional full service hotel and conference center considers the following features:
6.2.1. Lobby/Public Space
The ability to present an environment that welcomes a guest, in addition to stating the quality
and function of the environment, is created in the first moments a guest arrives at the property.
From the cleanliness and efficiencies of the front drive, to the color schemes and furniture
layout in the lobby is a critical design decision an owner and developer must make. The front
entrance needs to be clear of obstacles and have the ability for a guest to pull up their vehicle
under covering to protect them from the weather. It is important to have the ability to have
two lanes so that multiple vehicles are able to drop off people and luggage simultaneously.
The lobby of a full service hotel should create a “living room” type feel for the guests. Business
travelers will meet potential clients in the lobby. Families will gather together prior to going into
town. Conferences may set up a registration table as conference attendees are checking in. All
of these activities and others will make a lobby full and lively and the environment should reflect
these needs. Soft furniture should be properly spaced around the lobby. An area or two should
be identified for potential registration or company information tables to support conferences.
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Lighting should be ample enough to avoid dark spots or corners that could create uncomfortable
interactions.
The Front Desk of a hotel has evolved over the year to be less of a counter and more open to
provide the front desk agents with opportunities to come from behind the desk and better serve
guest needs. Front desks with an open space in the middle of kiosk-type individual desks are
becoming popular designs to improve service and customer interaction. This also provides front
desk agents the ability to monitor lobby and front entrance activities and support with
maintaining a clean and orderly environment.
6.2.2. Guest Rooms
The guest rooms, while still providing the typical furnishings one would see in most hotels, the
design, quality and layout continues to change. The guest has higher expectations than in the
past and looks for bedding and other furnishings of at least the same quality as they would have
at their home. Most hotel companies have branded a signature bed and bedding product for
each of their line of hotels. Flat panel televisions are now the norm and hung on the wall like
the art work. Quality desk and bed-side lighting with additional outlets is important to support
the business traveler catching up with work in the evening.
After bed quality, the second highest feature travelers look for is the ability to have a hot
shower with proper water pressure. Guest bathrooms now feature quality showerheads with
multiple spray options and expanded curtain rods to provide extra elbow room in the shower.
The counter is typically made of a solid material with darker colors to avoid showing stains.
Laminated wood under-counters and shelving provide a quality look and feel.
Other standard room features guests have come to expect include:
 Individual cup coffee makers
 Irons and ironing boards
 Internet access
 Expanded television listings, many times including a movie channel
 In-room refrigerator
 Ample sized desk
6.2.3. Meeting and Event Space
In the ideal conference center design, all of a property’s conference and banquet rooms are
grouped together in a single contiguous area that is designed around meetings. This layout will
meet the ideal requirements of:
 Contiguous grouping of conference rooms which affords guests easy movement
between conference rooms and allows staff and physical resources to be concentrated
efficiently;
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

Physical separation from the hotel’s primary living and leisure areas, allowing the
conference center to have its own sense of place;
Shielded from high-traffic areas such as the front desk, restaurants and bars, and from
outside distractions. This minimizes the blurring of work time and space with personal
time and space, and supports focus and productivity.
At the same time, the conference center should be readily accessible from the main entrance
and main lobby, making it easy for guests to find and support social and other non-conference
events that often draw large numbers of local participants. A secondary entrance that leads
guests directly into the conference area is also favorable in the designing of the event space. To
allow for the best possible service and support for meetings and other events, the conference
center should be adjacent to the back-of-house service corridor, storage areas, and catering
facilities.
For maximum productivity, meeting rooms should be free from extraneous noise from HVAC
and mechanical systems, activities in adjacent rooms (including amplified sound), and traffic and
conversations in the hallways. As a result, acoustics are critical in conference center design.
Other important considerations include guest-friendly lighting controls (capable of supporting
activities ranging from reading to projection), guest-friendly temperature controls for each
room, comfortable and functional furniture, and a full range of meeting support technology
(from traditional audiovisual to computer-driven and Internet-based presentations).
6.2.4. Food and Beverage
Many decisions are necessary when determining the food and beverage program a property will
offer to its guests. The profit margin for a food and beverage department can be very small, and
when combined with the development cost of building a kitchen, can sway many developers
away from creating a full service environment. However, a quality food and beverage program
that has a full service kitchen can provide a competitive edge that will bring the additional
occupancy and guest traffic through the facility to make it more successful.
While a restaurant’s profit margin may be low, many operators look at a full service restaurant
as an extension to the property’s marketing plan. A property can offer dining options not only
to in-house guests but also to the local market. Some of the marketing uses for the outlet
include sales managers entertaining potential businesses, local guests sampling the quality of
the food determine potential catering functions and local business people entertaining clients
that they bring in the city. Hotel restaurants will also typically have a lounge section where a
light food menu can be served as well as offer a causal environment for people to gather after
business hours.
When designed properly, the restaurant’s kitchen will also support the banquet rooms and
provide the food and beverage for the private functions. The ability to provide in-house food
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and beverage service to the conferences increases the property’s F&B profits due to higher
efficiencies and margins when producing large banquets.
Another food and beverage outlet many properties consider is a coffee shop, either selfmanaged or leasing the space. The continual popularity of a quality cup of coffee is attractive to
many guests, both in-house and local, and can provide incremental revenues for a property.
Some properties combine the coffee shop with a small gift shop, while others have it as a standalone operation. Either one can provide a service that can draw additional traffic through the
property.
6.2.5. Back of the House
While back of the house spaces do not directly provide revenue opportunities for a facility, they
are necessary to support the services provided by the operation. Offices, back service hallways
and employee break areas are locations that need to be considered to properly provide for the
staff as they seek to best serve the guests. Two areas that are sometimes given limited thought
and not designed well are storerooms and the loading dock.
Storerooms:
To ensure a property can be efficient and provide a safe environment for the staff, storage of
supplies and equipment can be very important. One consideration that is typically overlooked
is the importance of a storeroom is storage of banquet furniture and audio visual equipment.
When the size and location for storing the equipment needed for banquets is not properly
thought through, the equipment can be improperly stored (i.e.: a hallway or cramped office)
and negatively impact the property’s investment. Wide doorways and minimal turns in
hallways between the storeroom and banquet rooms can help preserve the furniture from
damage as well as limit staff injuries when moving the furniture.
Other storerooms have specific requirements to ensure safety and security of the items.
Storerooms for cleaning and maintenance supplies require certain ventilation. Food and
alcohol products should be in temperature controlled rooms with secured access controls.
Loading Dock:
At times, the loading dock location and access can be an afterthought for many properties.
The dock has three primary purposes which would ideally be out of the view of the public eye:
 Receiving product for the property. Large trucks need to be able to deliver needed
supplies such as food and beverage multiple times a week.
 Delivery and shipping of equipment, boxes and materials for conferences and trade
shows. Many trade shows and exhibits require a facility to have a receiving location
that can support a large volume of items required for their event.
 Trash and recycling material removal typically will occur near the dock and needs to
be out of the guests’ site.
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6.3. Subject Hotel Asset Program Recommendations
During the development of the recommendations for the Hotel programming, we considered four
components that would determine the quality and size of the facility. Each component took into
consideration the current market supply, the needs of the various demand generators and the
comments from the online survey and customer interviews.
Full-Service verses Limited Service
The first consideration we needed to determine was whether the property should be a full service
hotel as desired by the City or be more in line with the rest of the market and develop a select or
limited service product. In reviewing the comments from the meeting planners and results of the
survey, the factors that are most important to meeting planners when selecting a property were the
quality of Food and Beverage (92.6%), Quality of Meeting Space (89.3%), Complimentary Parking
(89%) followed closely by Total Cost, Quality of Guestrooms, Quality of AV and HSIA and Need for a
Full Service Restaurant; all between 80% and 89%.
These comments and the online survey results support the belief that a full service hotel can be
supported in this market. The combination of the quality of the facility’s products and services
informs us that the current supply products are not meeting the needs of the market. With the
highest rated factor being Quality of Food and Beverage and the Need for a Full Service Restaurant
also near the top, the market is looking for more than basic meeting space. In addition, the
Clarksburg residents and business people have a strong desire to revive the City of Clarksburg. The
addition of a quality hotel and meeting facility would provide a strong start to this goal. The facility
would be viewed as an asset to the area and attract people to the downtown district to support the
local economy and the city.
Rate the importance of the following attributes when
selecting a property
Bar/Lounge
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
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Number of Guest Rooms
The second factor considered was the number of guest rooms that would balance the needs of the
market as well as being properly sized for the developer to be profitable. To determine the number
of guest rooms, we looked at historical figures from the Smith Travel Report (STR) to understand the
market’s supply and demand trends since 2007, as well as the future projections for the market
through 2020.
Over the past seven years, the market has experienced a steady growth in supply, which is directly
tied to the growth in demand. Since 2007, 67,642 rooms have been added to the market, while the
room demand has increased by 116,092 room nights. This growth has created a current occupancy
for the market at 85.39%. The weekday occupancy percentages have grown to the upper 80’s to
mid-90’s, with the weekends staying relatively strong, staying around 70%. While additional select
and limited service hotels are being built, the demand is outpacing the new supply and area
occupancy continues to increase.
With the continual growth in demand outpacing the supply projections, we believe a 160 guest
room hotel can be successful in competing in the market and obtaining its fair share. At 160 guest
rooms, and with competitive rates, the property should be able to achieve a market index of greater
the 100%.
Meeting and Banquet Event Space
The next consideration was to determine the quantity of meeting and banquet event space that the
market would support. As mentioned throughout this study, the market is lacking in quality
meeting space to host larger meetings and events. The ability to meet this need would greatly serve
and support the community as it seeks to revitalize the downtown district.
Based on the review of the competitive set both within and outside Harrison County, along with the
research into the meeting and event demand in the market, we recommend a total of 13,850 square
feet of meeting and banquet space. This space would include a ballroom of 8,000 square feet that
would be able to accommodate a meeting or banquet for over 500 people. The ballroom should
also have direct access to a loading dock to support the larger festival events, tradeshows and
exhibits that associations and other organizations will host.
The remaining space is recommended to be divided between 10 meeting rooms from mid-sized
rooms of 1,200 square feet to small breakout rooms of 150 square feet. These rooms should be
designed with quality furnishings to support meetings and banquets for small to mid-sized
conferences. We recommend that some of the rooms be supplied with ergonomic chairs and tables
and have built-in audio visual support to help the property effectively compete with resorts and
hotels throughout West Virginia. Following is a recommended space program for the subject hotel.
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MEETING SPACE
Room Name
CURRENT SPACE
ESTIMATED CAPACITIES BY SET UP TYPE
Area
TYPE
TS
CR
CONF
HS
U-SHP
Rds/8
Ballroom A+B
2000
LMR
133
80
NA
58
66
128
Ballroom A+B+C
6000
LMR
400
240
NA
172
200
392
Ballroom D+E
2000
LMR
133
80
NA
58
66
128
Ballroom C+D+E
6000
LMR
400
240
NA
172
200
392
Ballroom A-E
8000
LMR
533
320
NA
228
266
528
Ballroom A
1000
MMR
67
40
34
28
34
64
Ballroom B
1000
MMR
67
40
34
28
34
64
Ballroom C
4000
LMR
267
160
NA
114
134
264
Ballroom D
1000
MMR
67
40
34
28
34
64
Ballroom E
1000
MMR
67
40
34
28
34
64
Meeting Room 1
1200
LMR
80
48
40
34
40
72
Meeting Room 2
1200
LMR
80
48
40
34
40
72
Meeting Room 3
800
MMR
53
32
26
22
26
48
Meeting Room 4
800
MMR
53
32
26
22
26
48
Meeting Room 5
400
LB
27
16
14
12
14
24
Meeting Room 6
400
LB
27
16
14
12
14
24
Meeting Room 7
250
MB
17
10
8
NA
NA
16
Meeting Room 8
250
MB
17
10
8
NA
NA
16
Meeting Room 9
250
MB
17
10
8
NA
NA
16
Meeting Room 10
150
SB
10
NA
5
4
NA
8
Breakout 1
150
SB
10
NA
5
4
NA
8
13850
0
923
542
330
370
430
872
TOTAL
Legend:
LMR = Large Meeting Room
LB = Large Breakout
MMR = Medium Meeting Room
MB = Medium Breakout
SB = Small Breakout
Food and Beverage
The final consideration in the facility’s programing design was the food and beverage services for
the property. As previously stated, Quality of Food and Beverage was the highest rated factor for
meeting planners to select a property. With this in mind, as well as the location being situated
within the Clarksburg business and government district, creating the right sized restaurant and bar
with an attractive atmosphere would be of great value to the market and property.
We recommend that a restaurant and bar with a combined 125-150 total seats be created off the
hotel lobby to support hotel guests and local consumers. The outlet should be well lit and have a
layout that is conducive to business and social conversations. Depending on the brand selected, a
breakfast buffet to service the hotel guests would be beneficial for ease and speed of service.
We heard from many individuals in our interviews with customers and business leaders, about the
need for a coffee shop in Downtown Clarksburg. Based on the volume of comments, the
development of a coffee shop component within the property, whether it is tied in with the
restaurant or a separate, stand-alone outlet, could be very successful.
70 | Page
7.
ESTIMATED SUBJECT HOTEL PERFORMANCE
7.1. Projected Occupancy
Along with average rate, the occupancy levels achieved by a hotel are the foundation of the
property’s financial performance and market value. Most of a lodging facility’s other revenue
sources (such as food, beverage, and telephone income) are driven by the number of guests, and
many expense levels also vary with occupancy. Consequently, a well-documented forecast of
occupancy is essential.
To a certain degree, occupancy attainment can be manipulated by management. For example, hotel
operators may choose to lower rates in an effort to maximize occupancy. Our forecasts reflect an
operating strategy that we believe would be implemented by a competent hotel management team
to achieve an optimal mix of occupancy and average rate.
7.1.1. Group Rooms
The volumes of group rooms a property can generate are very much a function of the meeting
and event space available. If, for example a hotel had one meeting room with a capacity of 25,
then the hotel could not expect to book more than 25 guest rooms on any given night based on
meeting room availability. In a perfect world, if the hotel were to maximize the use of that
meeting room, it could logically book 25 rooms a night, 7 days a week, 365 days a year or 9,125
rooms a year. A 100 room hotel could then expect 25% of its total occupancy to be group
generated.
In reality a successful hotel can expect to book group business 44 weeks a year (on average) and
4 days a week (on average). In the example above, 9,125 rooms drops to 4,400 guest rooms
which would generate 12.1% of total occupancy; that is assuming every group required 25 guest
rooms.
Total meeting space can be used as an estimate for group guest rooms available. The industry
average for this calculation is one guest room for every 125 sq. ft. of net meeting space. The
recommended 13,850 sq. ft. of meeting room space at the subject property will support the sale
of 111 guest rooms (on average).
Net SF DEDICATED ("CC") Meeting Space
Total SF Flexible (NON-DEDICATED) Meeting Space
TOTAL MEETING SPACE
TOTAL Guestrooms Supported by Meeting Space
= The lesser of (Dedicated space / 125) or Total Guest Rooms
2016
5,850
8,000
13,850
2017
5,850
8,000
13,850
2018
5,850
8,000
13,850
2019
5,850
8,000
13,850
2020
5,850
8,000
13,850
111
111
111
111
111
When multiplied by 44 week a year and 4 days a week, the 111 guest rooms will yield a 100%
utilization number that represents the maximum number of guest rooms a hotel can seek to
book.
71 | Page
From this maximum goal, a utilization factor is then applied. This factor reduces the target group
room booking goal. It is likely that a hotel will not achieve 100% success in booking group
business in the 44 weeks available. We have used industry averages for the ramp up of a new
hotel beginning at 50% utilization in year one and stabilizing at 70% utilization in year three. As
a result, the number of group rooms that we anticipate being realized is 9,750 in year one and
will grow to 13,651 in year three and beyond.
Projected Group Room VOLUMES
Category
2016
2017
2018
2019
2020
Total Rooms Supported by Meeting Space
111
111
111
111
111
Available Weeks
44
44
44
44
44
Days per week
4.0
4.0
4.0
4.0
4.0
19501
19501
19501
19501
19501
50%
60%
70%
70%
70%
NON - Packaged Groups Rooms
9750
11700
13651
13651
13651
TOTAL GROUP ROOM POTENTIAL
9750
11700
13651
13651
13651
100% Group Room Potential
Forecasted Utilization
We are projecting opening year occupancy of 72%. If the property is constructed with 160 guest
rooms, there will be an available inventory of 58,400 guest rooms (160 x 365). 72% occupancy
will result in a sale of 42,050 guest rooms; 9,750 of which will be group driven. This group
volume of 23.2% is very low by industry standards but we believe it is reasonable due to the
very high transient demand in the market. As a result the hotel will have extra meeting space to
sell and this can be accomplished by the sale of Day Meeting Packages (“DMPs”).
The typical hotel sells a number of DMPs equal to about 30% of the total group rooms sold. In
the case of the Subject hotel, because it will have excess meeting room inventory, we have
increased the number to 50%. As a result we are forecasting the following DMP sales volume.
Projected Day Meeting Package VOLUMES
Category
2016
2017
2018
2019
2020
Day Meeting Packages
4875
5850
6825
6825
6825
TOTAL CC PACKAGES (CMP/MMP/DMP)
4875
5850
6825
6825
6825
The next important question to ask is how group rooms will be sold by market segment.
Segmentation is important because of the rate tolerance of the various segments. Our survey
revealed the mix of business in the group segment.
72 | Page
My organization is best categorized in which market?
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Series1
Corp
Assn
Gov
Military
23.1%
36.9%
3.1%
1.5%
Small Independ Other
Educatio
Business
ent
(please
n
Owner Planner specify)
4.6%
15.4%
0.0%
15.4%
Using these percentages we were able to predict the volume of group business by segment.
ROOM VOLUMES
2016
Group
Corporate
Association
SMERF
Government
T&T
Subtotal Group
2252 23.1%
3598 36.9%
3598 36.9%
302
3.1%
0
0.0%
9750 23.2%
2703 23.1%
4317 36.9%
4317 36.9%
363
3.1%
0
0.0%
11700 26.0%
3153 23.1%
5037 36.9%
5037 36.9%
423
3.1%
0
0.0%
13651 27.9%
3153 23.1%
5037 36.9%
5037 36.9%
423
3.1%
0
0.0%
13651 27.9%
3153 23.1%
5037 36.9%
5037 36.9%
423
3.1%
0
0.0%
13651 27.9%
42050 72.0%
44969 77.0%
48916 83.8%
48916 83.8%
48916 83.8%
TOTAL
2017
2018
2019
2020
7.1.2. Transient Rooms
We have defined the existing transient market segments as follow:
Market Segment
Description
Commercial
Corporate/Local
Last Room Available-Negotiated at National and Local level-try to limit this category
Government
Leisure
Retail/Rack
Discount
OTA
Non-Opaque
Opaque
Contract
Contract
Group
Corporate Package
Association
SMERF
Government
T&T (Tour & Travel)
73 | Page
2 or 3 rates-County, State, Federal
Highest rated transient-everything that is not negotiated
A catchall category comprised of restricted, wholesale, other discount, redemption, etc.
rated rooms. Average rate for this category is the weighted combined average of all
components.
Negotiated contract rates
A discounted rate available to specific high-volume users, such as airlines, convention
groups, and bus tours. Contract rates are negotiated and often apply to a block of rooms
that are reserved on an ongoing basis and paid for regardless of use.
Corporate Meetings utilizing Conference Package Plan
State, Regional,National, International
Social, Military, Education, Religion, Fraternal, Sports
State Agencies, Department of and Federal Goevernment
Non Meeting Group Rooms
There is no hard data that outlines the mix of transient rooms in the Clarksburg MSA. Because of
this we spread the 32,300 transient room nights required to achieve 72% occupancy based on
general industry experience. Again, the mix of business within the transient market will
ultimately affect room revenue because each segment carries a different average rate.
2016
ROOM VOLUMES
Transient
Retail
Contract
Corporate/Local
Corporate NLRA
Government
Package
OTA
Discount
Non-Opaque
Opaque
Subtotal Transient
2017
1500
4.6%
1800
5.6%
12000 37.2%
1000
3.1%
2000
6.2%
0
0.0%
0
0.0%
9000 27.9%
0
0.0%
5000 15.5%
32300 76.8%
2018
1545
4.8%
1854
5.7%
12360 38.3%
1030
3.2%
2060
6.4%
0
0.0%
0
0.0%
9270 28.7%
0
0.0%
5150 15.9%
33269 74.0%
2019
1638
5.1%
1965
6.1%
13102 40.6%
1092
3.4%
2184
6.8%
0
0.0%
0
0.0%
9826 30.4%
0
0.0%
5459 16.9%
35265 72.1%
2020
1638
5.1%
1965
6.1%
13102 40.6%
1092
3.4%
2184
6.8%
0
0.0%
0
0.0%
9826 30.4%
0
0.0%
5459 16.9%
35265 72.1%
1638
5.1%
1965
6.1%
13102 40.6%
1092
3.4%
2184
6.8%
0
0.0%
0
0.0%
9826 30.4%
0
0.0%
5459 16.9%
35265 72.1%
7.2. Estimated Average Daily Rate
Average rates for Group business were based on survey results (see chart on following page).
Transient rates were based on call to local hotels.
2016
ADR
2017
2018
2019
2020
Transient
Retail
Contract
Corporate/Local
Corporate NLRA
Government
Package
OTA
Discount
Non-Opaque
Opaque
Transient Average Rate
$
$
$
$
$
$
$
$
$
$
$
139.00
109.00
119.00
119.00
89.00
69.00
79.00
97.39
$
$
$
$
$
$
$
$
$
$
$
141.78
111.18
121.38
121.38
90.78
70.38
80.58
99.34
$
$
$
$
$
$
$
$
$
$
$
144.62
113.40
123.81
123.81
92.60
71.79
82.19
101.32
$
$
$
$
$
$
$
$
$
$
$
147.51
115.67
126.28
126.28
94.45
73.22
83.84
103.35
$
$
$
$
$
$
$
$
$
$
$
150.46
117.99
128.81
128.81
96.34
74.69
85.51
105.42
Group
Corporate
Association
SMERF
Government
T&T
Group Average Rate
$
$
$
$
$
$
149.00
119.00
109.00
99.00
75.00
121.62
$
$
$
$
$
$
151.98
121.38
111.18
100.98
76.50
124.05
$
$
$
$
$
$
155.02
123.81
113.40
103.00
78.03
126.53
$
$
$
$
$
$
158.12
126.28
115.67
105.06
79.59
129.06
$
$
$
$
$
$
161.28
128.81
117.99
107.16
81.18
131.65
Total Average Rate
$
103.01
$
105.77
$
108.36
$
110.53
$
112.74
74 | Page
What is the typical Guestroom Rate range that you pay for
your meetings or events?
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
$75 or Less
$76-$99
$100-115
$116-129
$130-150
Over $150
6.0%
22.0%
30.0%
22.0%
20.0%
0.0%
Series1
7.3. Estimated Revenue and Financial Summary
7.3.1. Departmental Revenues | Rooms
We calculated room revenue by multiplying the volumes and average rates as described
above.
7.3.2. Departmental Revenue | Food and Beverage
We estimate that the property will generate $1.487M in F&B revenue in year one and this will
grow to 1.88M in year three.
2016
2017
2018
2019
2020
F&B Revenue Summary
Catering
$
588,706
$
648,460
$
726,525
$
748,321
$
770,771
Banquets
$
136,506
$
168,721
$
202,746
$
208,829
$
215,094
Package Breaks
$
107,254
$
128,705
$
150,156
$
150,156
$
150,156
Room Service
$
129,940
$
133,536
$
137,281
$
141,183
$
145,248
Rest #1
$
525,017
$
588,405
$
666,783
$
686,787
$
707,391
$
1,487,423
$
1,667,827
$
1,883,492
$
1,935,276
$
1,988,659
TOTAL F&B Revenue
Food and beverage revenues are driven by a set of industry acceptable metrics and local
market pricing. In the case of the subject property we estimate that the restaurant will
capture:
 .4 breakfast covers for every guestroom sold
 .3 dinner covers for every guest room sold dinner
 .1 covers for lunch is based on every transient guest room sold because many groups will
have a banquet lunch rather than go to the restaurant.
Room service assume five breakfast covers, one lunch cover and eight dinner covers per day.
75 | Page
Banquets and catering drives off average check metrics of $14 and $12 respectively. Banquet
revenue is the average check times the number of group rooms; catering is calculated by
multiplying average catering check by total transient rooms.
2016
2017
2018
2019
2020
TOTAL Transient Guestooms
32300
33269
35265
35265
35265
TOTAL Guest Rooms
42050
44969
48916
48916
48916
Restaurant 1 - Covers Per Guest Room Sold
Guest Rooms Sold
32300
33269
35265
35265
35265
Breakfast
0.40
0.40
0.40
0.40
0.40
Lunch
0.10
0.10
0.10
0.10
0.10
Dinner
0.30
0.30
0.30
0.30
0.30
Room Service
Breakfast Covers per day
5
5
5
5
6
Lunch Covers per day
1
1
1
1
1
Dinner Covers per day
8
8
8
9
9
1825
1880
1936
1994
2054
Room Service - Breakfast Covers
Room Service - Lunch Covers
365
366
367
368
369
Room Service - Dinner Covers
2920
2920
2920
2920
2920
Total Covers
5110
5165.75
5223
5282
5343
Catering Revenue per Guest Room
Banquets
$
14.00
$
14.42
$
14.85
$
15.30
$
15.76
$
12.00
$
12.36
$
12.73
$
13.11
$
13.51
Banquet Revenue per Guest Room
Catering
7.3.3. Departmental Revenue | Conference Services
Typical hotels do not have an independent department for conference services and it is unlikely
that the future management company will create one. We have separated out this function as
its own department to highlight the impact on Day Meeting Package revenue. As a result, our
Food and Beverage revenues and expenses will appear slightly lower than industry norms. In
addition, Sales and Marketing expenses will also be lower because we have isolated payroll that
would typically fall within this department.
Determining the impact of the Day Meeting Package on financial performance begins with the
creation of allocations. In a package, a fixed portion of the total income is reserved for
operating departments. These departments are primarily Food & Beverage and Conference
Services. The following allocation table projects a 2016-2020 total allocation package
consistent with industry standards. Thereafter a straight 3% inflationary rate was applied to
each allocation category. Service charge is assumed to be 22%.
76 | Page
Projected Package ALLOCATIONS
Category
2016
Breakfast
Lunch
Dinner
Breaks
Service Charge
Technology
Meeting Room Rental
Total Allocation
$
$
$
$
$
$
$
$
Category
2017
18.00
22.00
8.80
10.00
58.80
$
$
$
$
$
$
$
$
2016
2018
18.54
22.66
9.06
10.30
60.56
$
$
$
$
$
$
$
$
2017
19.10
23.34
9.34
10.61
62.38
2019
$
$
$
$
$
$
$
$
2018
2020
19.67
24.04
9.62
10.93
64.25
$
$
$
$
$
$
$
$
2019
20.26
24.76
9.90
11.26
66.18
2020
Allocations:
DMP Allocation
$
58.80 $
60.56 $
62.38 $
64.25 $
Estimated Rates:
DMP
$
89.00 $
91.67 $
94.42 $
97.25 $ 100.17
Food & Beverage Allocated Revenue
DMP
$
48.80 $
50.26 $
51.77 $
53.33 $
54.92
CC Allocated Revenue
DMP
$
10.00 $
10.30 $
10.61 $
10.93 $
11.26
CC Meeting Room Rental
DMP
$
30.20 $
31.11 $
32.04 $
33.00 $
33.99
66.18
Revenue Yields:
Applying these allocations to the covers associated to coffee breaks and lunches helps to
generate food and beverage revenue. The balance of revenue (selling price less allocations) is
meeting room rental.
2016
2017
Projected Package VOLUMES
2018
2019
2020
4875
4875
6825
6825
6825
6825
6825
6825
2016
2017
2018
Projected Package Generated Revenues
2019
2020
Forecasted Packages Sold
DMP's Sold
Total Packages Sold
REVENUE
Food & Beverage Revenue
DMP
SUBTOTAL - F&B REVENUE
5850
5850
$
$
237,910
237,910
$
$
294,056
294,056
$
$
353,358
353,358
$
$
363,959
363,959
$
$
374,877
374,877
CC Allocated Revenue
DMP
SUBTOTAL - ALLOCATED REVENUE
$
$
48,752
48,752
$
$
60,257
60,257
$
$
72,409
72,409
$
$
74,582
74,582
$
$
76,819
76,819
CC Meeting Room Rental Revenue
DMP
SUBTOTAL MEETING ROOM RENTAL
$
$
147,231
147,231
$
$
181,978
181,978
$
$
218,676
218,676
$
$
225,237
225,237
$
$
231,994
231,994
$
433,893
$
536,292
$
644,444
$
663,777
$
683,690
TOTAL Package REVENUE
As a stand-alone department, we captured operating expenses independently of other
operating departments. The departmental pro forma is captured on the following page.
77 | Page
VOLUME
2016
2017
2018
2019
2020
CMP
MMP
DMP
TOTAL PACKAGES
4,875
4,875
5,850
5,850
6,825
6,825
6,825
6,825
6,825
6,825
TECHNOLOGY
Package Allocation
Other Technology
TOTAL ALLOCATED PACKAGE REVENUE
48,752
43,877
92,629
15.7%
14.1%
29.8%
60,257
54,232
114,489
14.9%
13.4%
28.2%
72,409
65,168
137,578
14.9%
13.4%
28.3%
74,582
67,124
141,705
14.9%
13.5%
28.4%
76,819
69,137
145,956
15.0%
13.5%
28.5%
OTHER REVENUE
Meeting Room Rental | CMP/MMP
Meeting Room Rental | DMP
Meeting Room Rental | Other
Concierge Services
OTHER SERVICES
SERVICE CHARGE
TOTAL OTHER REVENUE
0
147,231
7,362
12,188
14,626
36,281
217,687
0.0%
47.4%
2.4%
3.9%
4.7%
11.7%
70.2%
0
181,978
9,099
14,626
17,551
67,548
290,801
0.0%
44.9%
2.2%
3.6%
4.3%
16.7%
71.8%
0
218,676
10,934
17,063
20,476
80,945
348,095
0.0%
45.0%
2.3%
3.5%
4.2%
16.7%
71.7%
0
225,237
11,262
17,063
20,476
83,149
357,186
0.0%
45.1%
2.3%
3.4%
4.1%
16.7%
71.6%
0
231,994
11,600
17,063
20,476
85,418
366,550
0.0%
45.3%
2.3%
3.3%
4.0%
16.7%
71.5%
TOTAL REVENUE
310,316
405,290
485,673
498,891
512,507
COST OF SALES
AUDIO VISUAL | Allocated
0
0.0%
0
0.0%
0
0.0%
0
0.0%
0
0.0%
AUDIO VISUAL | a La Carte
TOTAL COST OF SALES
21,061
21,061
48.0%
6.8%
26,031
26,031
48.0%
6.4%
31,281
31,281
48.0%
6.4%
32,219
32,219
48.0%
6.5%
33,186
33,186
48.0%
6.5%
OTHER EXPENSES
Payroll and Benefits
Equipment and Related
TOTAL OTHER EXPENSES
152,388
12,257
164,645
40.0%
3.9%
53.1%
207,257
14,709
221,966
51.1%
3.6%
54.8%
217,620
17,160
234,780
44.8%
3.5%
48.3%
228,501
17,160
245,661
45.8%
3.4%
49.2%
239,926
17,160
257,086
46.8%
3.3%
50.2%
TOTAL EXPENSES
185,706
59.8%
247,997
61.2%
266,061
54.8%
277,881
55.7%
290,272
56.6%
DEPARTMENT PROFIT
124,610
40.2%
157,293
38.8%
219,611
45.2%
221,011
44.3%
222,234
43.4%
7.3.4. Departmental Expenses
We arrived at operating expenses for each department taking a zero-based approach to
building a budget. Our figures are calculated slightly differently than the industry norm
because of the independent conference service department. The following table provides a
snapshot to the subject property’s anticipated departmental expenses compared to industry
averages.
FULL-SERVICE HOTELS
Summary Operating Statement
Departmental Costs and Expenses
Rooms
Food and Beverage
Other Operated Departments
Total Costs and Expenses
National Average
150 to 300 Rooms
Subject Hotel
150 to 300 Rooms
2012 Dollars per 2012 Percent of
Available Room
Revenue
Available Room
Revenue
$
$
10,117
11,901
1,604
23,623
26.1%
78.3%
79.1%
41.7%
$
$
$
8,282
8,829
2,132
23,623
25.0%
75.0%
58.2%
41.7%
7.3.5. Undistributed Expenses
We took a similar approach to building our undistributed expenses. Please note that Sales and
Marketing is slightly below industry average, again, because some of those expenses are
captured in conference services.
78 | Page
FULL-SERVICE HOTELS
Undistributed Operating Expenses
Administrative and General
Sales and Marketing
Property Operation and Maintenance
Utility Costs
Total Undistributed Expenses
National Average
150 to 300 Rooms
Subject Hotel
150 to 300 Rooms
Available Room
Revenue
Available Room
Revenue
$
$
5,422
5,508
2,620
2,160
15,710
9.6%
9.7%
4.6%
3.8%
27.7%
$
$
$
$
$
4,419
3,885
2,234
1,797
19,243
9.1%
8.0%
4.6%
3.7%
25.4%
7.3.6. Management Fees and Reserves
We based our management fees on straight industry averages for full service hotels.
FULL-SERVICE HOTELS
Management Fees
National Average
150 to 300 Rooms
Subject Hotel
150 to 300 Rooms
Available Room
Revenue
Available Room
Revenue
$
1,785
3.2%
$
1,554
3.2%
7.3.7. Fixed Expenses
We based our fixed expenses fees on straight industry averages for full service hotels.
FULL-SERVICE HOTELS
Fixed Charges
Property Taxes and Other Municipal Charges
Insurance
Total Fixed Charges
79 | Page
National Average
150 to 300 Rooms
Subject Hotel
150 to 300 Rooms
Available Room
Revenue
Available Room
Revenue
$
$
2,018
623
2,641
3.6%
1.1%
4.7%
$
$
$
1,748
583
2,331
3.6%
1.2%
4.7%
7.3.8. 5-year Pro Forma
Statistics
Rooms
Available Rooms
2016
160
58,560
2017
160
58,400
2018
160
58,400
2019
160
58,400
2020
160
58,560
Occupied Rooms
OCC %
Average Rate
RevPAR
42,050
71.8%
104.49
75.03
44,969
77.0%
106.58
82.07
48,916
83.8%
108.71
91.06
48,916
83.8%
108.71
91.06
48,916
83.5%
108.71
90.81
Revenue
Rooms
Food & Beverage
Conference Services
Total Revenue
$
$
$
$
$
Amount Ratio
4,331,544 69.5%
1,487,423 23.9%
310,316 5.0%
100,000 1.6%
6,229,283 100.0%
Per Room
$ 27,072
$ 9,296
$ 1,939
$
625
$ 38,933
POR
$ 103.01
$ 35.37
$
7.38
$
2.38
$ 148.14
Amount Ratio
$ 4,756,345 68.6%
$ 1,667,827 24.1%
$ 405,290 5.8%
$ 100,000 1.4%
$ 6,929,463 100.0%
Per Room
$ 29,727
$ 10,424
$ 2,533
$
625
$ 43,309
POR
$ 105.77
$ 37.09
$
9.01
$
2.22
$ 154.09
Amount Ratio
$ 5,300,480 68.2%
$ 1,883,492 24.2%
$ 485,673 6.3%
$ 100,000 1.3%
$ 7,769,645 100.0%
Per Room
$ 33,128
$ 11,772
$ 3,035
$
625
$ 48,560
POR
$ 108.36
$ 38.50
$
9.93
$
2.04
$ 158.84
Amount Ratio
$ 5,406,490 68.1%
$ 1,935,276 24.4%
$ 498,891 6.3%
$ 100,000 1.3%
$ 7,940,657 100.0%
Per Room
$ 33,791
$ 12,095
$ 3,118
$
625
$ 49,629
POR
$ 110.53
$ 39.56
$ 10.20
$ 30.00
$ 162.33
Amount Ratio
$ 5,514,620 67.9%
$ 1,988,659 24.5%
$ 512,507 6.3%
$ 100,000 1.2%
$ 8,115,786 100.0%
Per Room
$ 34,466
$ 12,429
$ 3,203
$
625
$ 50,724
POR
$ 112.74
$ 40.65
$ 10.48
$ 30.00
$ 165.91
Departmental Expenses
Rooms
Food & Beverage
Conference Services
$
$
$
$
1,160,854
1,143,828
185,706
76,300
26.8%
76.9%
59.8%
76.3%
$
$
$
$
7,255
7,149
1,161
477
$
$
$
$
27.61
27.20
4.42
1.81
$ 1,189,086
$ 1,267,549
$ 247,997
$
75,000
25.0%
76.0%
61.2%
75.0%
$
$
$
$
7,432
7,922
1,550
469
$
$
$
$
26.44
28.19
5.51
1.67
$ 1,325,120
$ 1,412,619
$ 266,061
$
75,000
25.0%
75.0%
54.8%
75.0%
$
$
$
$
8,282
8,829
1,663
469
$
$
$
$
27.09
28.88
5.44
1.53
$ 1,351,623
$ 1,451,457
$ 277,881
$
75,000
25.0%
75.0%
55.7%
75.0%
$
$
$
$
8,448
9,072
1,737
469
$
$
$
$
27.63
29.67
5.68
1.53
$ 1,213,216
$ 1,491,495
$ 290,272
$
75,000
22.0%
75.0%
56.6%
75.0%
$
$
$
$
7,583
9,322
1,814
469
$
$
$
$
24.80
30.49
5.93
1.53
Total Expenses
$
2,566,688
41.2%
$ 16,042
$
61.04
$ 2,779,632
40.1%
$ 17,373
$
61.81
$ 3,078,800
39.6%
$ 19,243
$
62.94
$ 3,155,960
39.7%
$ 19,725
$
64.52
$ 3,069,983
37.8%
$ 19,187
$
62.76
Departmental Profit
$
3,662,595
58.8%
$ 22,891
$
87.10
$ 4,149,831
59.9%
$ 25,936
$
92.28
$ 4,690,845
60.4%
$ 29,318
$
95.90
$ 4,784,697
60.3%
$ 29,904
$
97.82
$ 5,045,803
62.2%
$ 31,536
$ 103.15
A&G
Sales & Marketing
Property Operations
Utilities
$
$
$
$
566,865
560,635
286,547
230,483
9.1%
9.0%
4.6%
3.7%
$
$
$
$
3,543
3,504
1,791
1,441
$
$
$
$
13.48
13.33
6.81
5.48
$
$
$
$
630,581
554,357
318,755
256,390
9.1%
8.0%
4.6%
3.7%
$
$
$
$
14.02
12.33
7.09
5.70
$
$
$
$
707,038
621,572
357,404
287,477
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,419
3,885
2,234
1,797
$
$
$
$
14.45
12.71
7.31
5.88
$
$
$
$
722,600
635,253
365,270
293,804
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,552
4,001
2,301
1,851
$
$
$
$
14.77
12.99
7.47
6.01
$
$
$
$
738,537
649,263
373,326
300,284
9.1%
8.0%
4.6%
3.7%
$
$
$
$
4,688
4,121
2,370
1,716
$
$
$
$
15.10
13.27
7.63
6.14
Total Undistributed
$
1,644,531
26.4%
$ 10,278
$
39.11
$ 1,760,083
25.4%
$ 11,001
$
39.14
$ 1,973,490
25.4%
$ 12,334
$
40.34
$ 2,016,927
25.4%
$ 12,606
$
41.23
$ 2,061,410
25.4%
$ 12,884
$
42.14
0
Gross Operating Profit
$
2,018,064
32.4%
$ 12,613
$
47.99
$ 2,389,747
34.5%
$ 14,936
$
53.14
$ 2,717,355
35.0%
$ 16,983
$
55.55
$ 2,767,770
34.9%
$ 17,299
$
56.58
$ 2,984,393
36.8%
$ 18,652
$
61.01
Base Management Fee
$
199,337
3.2%
$
1,246
$
4.74
$
221,743
3.2%
$
1,386
$
4.93
$
248,629
3.2%
$
1,554
$
5.08
$
254,101
3.2%
$
1,588
$
5.19
$
259,705
3.2%
$
1,623
$
5.31
Property Taxes
Insurance
Total Undistributed
$
$
$
224,254
74,751
299,006
3.6%
1.2%
4.8%
$
$
$
1,402 $
467 $
1,869 $
5.33
1.78
7.11
$
$
$
249,461
83,154
332,614
3.6%
1.2%
4.8%
$
$
$
2,079 $
5.55
1.85
7.40
$
$
$
279,707
93,236
372,943
3.6%
1.2%
4.8%
$
$
$
1,748 $
583 $
2,331 $
5.72
1.91
7.62
$
$
$
285,864
95,288
381,152
3.6%
1.2%
4.8%
$
$
$
1,801 $
500 $
2,382 $
5.84
1.95
7.79
$
$
$
292,168
97,389
389,558
3.6%
1.2%
4.8%
$
$
$
1,855 $
500 $
2,435 $
5.97
1.99
7.96
Net Operating Income
$
1,519,722
24.4%
$
9,498
$
36.14
$ 1,835,390
26.5%
$ 11,471
$
40.81
$ 2,095,783
27.0%
$ 13,099
$
42.84
$ 2,132,518
26.9%
$ 13,328
$
43.60
$ 2,335,130
28.8%
$ 14,595
$
47.74
FF&E Reserve
$
62,293
1.0%
$
389
$
1.48
$
138,589
2.0%
$
866
$
3.08
$
233,089
3.0%
$
1,457
$
4.77
$
238,220
3.0%
$
1,489
$
4.87
$
243,474
3.0%
$
1,522
$
4.98
NOI after Reserve
$
1,457,429
23.4%
$
9,109
$
34.66
$ 1,696,801
24.5%
$ 10,605
$
37.73
$ 1,862,694
24.0%
$ 11,642
$
38.08
$ 1,894,298
23.9%
$ 11,839
$
38.73
$ 2,091,657
25.8%
$ 13,073
$
42.76
Undistributed Expenses
Fixed Expenses
80 | Page
8. STATEMENT OF LIMITING CONDITIONS
1.
All information, financial operating statements, estimates, and opinions obtained from parties
not employed by PHG are assumed to be true and correct. We can assume no liability
resulting from misinformation.
2.
The scope of our Study and the report does not include the possible impact of zoning or
environmental regulations, licensing requirements, or other such matters unless they have
been brought to our attention and are disclosed in the report.
3.
None of this material may be reproduced in any form without our written permission, and the
report cannot be disseminated to the public through advertising, public relations, news, sales,
or other media.
4.
We are not required to give testimony or attendance in court by reason of this analysis
without previous arrangements, and only when our standard per diem fees and travel costs
are paid prior to the appearance.
5.
We take no responsibility for individual investment decisions made based on the opinions
contained in this report.
6.
We take no responsibility for any events or circumstances that take place subsequent to either
the date of value or the date of our field inspection, whichever occurs first.
7.
The quality of a lodging facility’s on-site management has a direct effect on a property’s
economic viability and value. Any financial forecasts presented in this analysis assume
responsible ownership and competent management. Any departure from this assumption may
have a significant impact on the projected operating results and the value estimate. The
estimated operating results presented in this report are based on an evaluation of the overall
economy, and neither take into account nor make provision for the effect of any sharp rise or
decline in local or national economic conditions. To the extent that wages and other operating
expenses may advance during the economic life of the property, we expect that the prices of
rooms, food, beverages, and services will be adjusted to at least offset those advances. We do
not warrant that the estimates will be attained, but they have been prepared on the basis of
information obtained during the course of this study and are intended to reflect the
expectations of a typical hotel buyer.
8.
Many of the figures presented in this report make calculations based on numbers carried out
to three or more decimal places. In the interest of simplicity, most numbers have been
rounded to the nearest tenth of a percent. Thus, these figures may be subject to small
rounding errors.
81 | Page
9.
It is agreed that our liability to the client is limited to the amount of the fees paid as liquidated
damages. Our responsibility is limited to the client, and use of this report by third parties shall
be solely at the risk of the client and/or third parties.
10. This Study was prepared by PHG, Inc. All opinions, recommendations, and conclusions
expressed during the course of this assignment are rendered by the staff of PHG Inc. as
employees, rather than as individuals.
11. The information and analyses provided to you in presentation and/or report form will be
intended solely for your information and internal use, and for inclusion in the materials that
you may provide to entities interested in financing and/or managing a hotel developed on the
subject site. They should not be relied on for any other purpose. Otherwise, neither our
presentation material, nor our report, nor any reference to PHG may be included or quoted in
any offering circular, registration statement, prospectus, sales brochure, appraisal, loan
agreement, or any other document without our specific, advance written consent. Such
consent may require the completion of certain additional due diligence procedures that are
not included within this report.
82 | Page

Clarksburg Hotel and Conference Center

Transcription

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