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SECTION VII
<br />ta
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<br />HOSPITALITY
<br />more than 15 floors and over 30,000 SF of meeting space.
<br />Table 12: Selected Hotels in the 2-Mile Zone
<br />Property Name
<br />No f
<br />Sto;ies
<br />Room,
<br />Land
<br />Area (SF)
<br />Total
<br />mtg
<br />Space
<br />No. of
<br />Parking
<br />Spaces
<br />A&.
<br />Room
<br />Rent
<br />Hotel Class
<br />Star
<br />Rating
<br />Bra. d
<br />Year
<br />Built
<br />Year
<br />Ren-ted
<br />Hilton Orange County Costa Mesa
<br />7
<br />486
<br />252,648
<br />32,379
<br />535
<br />$194
<br />Upper Upscale
<br />4
<br />Hilton
<br />1970
<br />2014
<br />Westin South Coast Plaza Costa Mesa
<br />15
<br />393
<br />129,373
<br />33,952
<br />$244
<br />Upper Upscale
<br />4
<br />Westin
<br />1975
<br />2008
<br />Avenue Of The Arts Costa Mesa
<br />5
<br />238
<br />130,680
<br />5,000
<br />250
<br />$234
<br />Upper Upscale
<br />4
<br />Tribute Portfolio
<br />1986
<br />0
<br />Marriott Costa Mesa
<br />11
<br />2S3
<br />131,1S5
<br />3,072
<br />$237
<br />Upper Upscale
<br />4
<br />Marriott
<br />1989
<br />2004
<br />Marriott Irvine
<br />17
<br />496
<br />46S,6S6
<br />26,64S
<br />600
<br />$339
<br />Upper Upscale
<br />4
<br />Marriott
<br />1983
<br />0
<br />Hilton Irvine Orange County Airport
<br />10
<br />306
<br />288,803
<br />18,036
<br />414
<br />$203
<br />Upper Upscale
<br />4
<br />Hilton
<br />1985
<br />2016
<br />Embassy Suites by Hilton Irvine Orange County Airport
<br />10
<br />293
<br />86,684
<br />2,199
<br />534
<br />$15S
<br />Upper Upscale
<br />4
<br />Embassy Suites by
<br />Hilton
<br />1986
<br />2008
<br />Embassy Suites by Hilton Santa Ana Orange County Airport
<br />7
<br />301
<br />164,1S6
<br />7,2S1
<br />3S0
<br />$12S
<br />Upper Upscale
<br />4
<br />Embassy Suites by
<br />Hilton
<br />1984
<br />0
<br />Marriott Newport Beach Bayview
<br />9
<br />2S4
<br />214,568
<br />3,798
<br />297
<br />$279
<br />Upper Upscale
<br />4
<br />Marriott
<br />1988
<br />2018
<br />Renaissance Newport Beach Hotel
<br />10
<br />444
<br />322,344
<br />16,81S
<br />4S0
<br />$184
<br />Upper Upscale
<br />4
<br />Renaissance
<br />1983
<br />0
<br />Hyatt Regency John Wayne Airport Newport Beach
<br />7
<br />343
<br />267,894
<br />21,000
<br />219
<br />$198
<br />Upper Upscale
<br />4
<br />Hyatt Regency
<br />1974
<br />0
<br />Best Western Plus Newport Mesa Inn
<br />3
<br />97
<br />56,628
<br />3,000
<br />$219
<br />Upper Midscale
<br />3
<br />Best Western Plus
<br />1984
<br />0
<br />Hampton by Hilton Inn & Suites Irvine Orange County Airport
<br />4
<br />164
<br />43,560
<br />2,511
<br />$177
<br />Upper Midscale
<br />3
<br />Hampton by Hilton
<br />2018
<br />0
<br />Atrium Hotel Orange County
<br />3
<br />210
<br />278,784
<br />6,300
<br />$169
<br />Upper Midscale
<br />3
<br />1969
<br />0
<br />Total Upscale Rooms is 2-Mile Zone
<br />4,278
<br />Overall Average
<br />570
<br />3,649
<br />$211
<br />Upper Upscale
<br />346
<br />$218
<br />Upper Midscale
<br />1
<br />1 157
<br />1
<br />1
<br />1
<br />1 $173
<br />As a result, we based our daily room rates on the data presented in Table 12. Although the advertised
<br />room rate for the Westin South Coast Plaza is $244 per night, we chose to use an average room rate of
<br />$210 for the proposed hotel. We believe that the Westin South Coast Plaza's affiliation with the Hilton
<br />Flag drives significant guests to it and, since there are no comments in the Specific Plan that the hotel
<br />would be flagged, we adjusted the room rate downward. Further, since most Upper Upscale business
<br />hotels have established long-term relationships with corporate clients, we felt these long-term
<br />relationships would continue to direct corporate business to them. Until we obtain additional
<br />information, we have concluded that a daily room rate of $210 was representative of the future. We
<br />further believe that once the proposed hotel gains a reputation, its revenue could approach that of the
<br />Westin South Coast Plaza.
<br />The next step in determining total hotel revenue is to estimate the RevPAR revenues. These include food
<br />sales, beverage sales, technology revenues, and minor departments. The first two categories are self-
<br />explanatory. Technology revenues relate to internet, phone service, TV -streaming services, and others
<br />guest services. Minor department revenues include garage facilities, in-house laundry, health clubs and
<br />swimming pools, and retail shops. These departmental revenues make up more than 26% of total hotel
<br />revenues. We reduced department revenues by corresponding department expenses.
<br />In addition to department income and expenses, hotels incur "Undistributed Operating Expenses." These
<br />expenses include administration and general operating, marketing, management fees, franchise fees,
<br />energy, operations and maintenance, insurance, and property taxes.
<br />Table 13: Hotel NAV
<br />Hotel Percentage Daily Room Daily Annual Revenue % of Total
<br />Rent Revenue
<br />Base •..m Rentr rr rr rr
<br />Related Bristol at 3600 South Bristol Street
<br />Draft Market Study Report
<br />Exhibit 10
<br />September 2023
<br />30
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