1. Hotel Feasibility Study Rutherford, 2007

2. The Site Proper zoning Master area development plans Size in square feet/acres Visibility from arterials/freeways Traffic counts/patterns Accessibility from streets, freeways, airports, train stations, etc. Proximity to where potential guests live, travel, or work

3. Barriers that discourage competition coming into the market, if any How adjacent property and businesses are utilized Master area development plans Local permitting process and the degree of difficulty for that particular city Impact fees charged by the city

4. The Economy of the Area Major employers, government agencies Business trends for each employer Hotel needs and the demand for each Leisure travel demand in the area Nearby tourist attractions Visitor counts Conventions, trade shows, and meetings history

5. The Hotel Market The competitors, both existing and planned Historical occupancy of hotels in the area Historical average rate Proprietary data on area travel

6. Identification of Which Hotel Market Segment to Serve Full service Limited service Luxury Midprice Economy Budget

7. Selection of Appropriate Hotel Design High-rise Midrise Garden apartment style Hybrid design

8. Selection of Appropriate Hotel Brand Franchised (Marriott, Sheraton, Hyatt, etc.) Licensed (Best Western, Guest Suites,etc) Independent Independent with strategic market affiliation (Luxury Hotels of America, Historic Hotels of America, etc.)

9. Ten-year Projection Occupancy projection by year ADR by year Estimated cash generated for debt Estimated cash generated for distribution to investors Estimated cash-on-cash return (after-tax income divided by equity invested) Overall projected yield Projected internal rate of return Net present value of the project over each of the next ten years

10. FINANCING THE PROJECT The following variables must be determined to qualify for financing: The cost of the land Design and construction cost of the building The cost of furniture, fixtures, equipment, and opening supplies Pre-opening marketing and labor costs A six-month operating capital cash reserve