1. The Economics of Low-Cost Lodging For the California Coastal Commission on March 13, 2015 By Maurice Robinson, ISHC, CRE, ASA Maurice Robinson & Associates LLC

2. Hotel Ground Lease Experience in California Since 2000 Source: Maurice Robinson & Associates engagements HOTELS

3. National Park Concession Experience Since 1992 Source: Maurice Robinson & Associates engagements for the National Park Service PARKS

4. Upscale, Full-Service Hotels Built in California Since 2000 with Some Form of Subsidy SUBSIDIES Source: Maurice Robinson & Associates, STR

5. CAVALLO POINT Cavallo Point Lodge

6. ASILOMAR Asilomar Lodge – Classic Park Lodge

7. BIG SUR LODGE Big Sur Lodge – Historic Parks Lodge

8. CRYSTAL COVE Crystal Cove Cottages

9. PARKS CABIN Cabin at Samuel Taylor State Park

10. GROVER BEACH Grover Beach Lodge (proposed)

11. BRANDS Examples of Hotel Brands

12. FOUR POINTS Four Points by Sheraton (Mid-Scale, Full-Service Hotel)

13. TOWNEPLACE TownePlace Suites by Marriott (Mid-Scale, Extended-Stay Hotel)

14. MICROTEL Microtel Inn by Wyndham (Limited-Service, Economy Hotel)

15. PRIVATE LAND Economics of Low-Priced Lodging on Private Land

16. PUBLIC LAND Economics of Low-Priced Lodging on Public Land with a Ground Lease

17. Opportunities to Facilitate the Development of Low-Cost Lodging Private owners of low-cost lodging willing to accept long-term restrictions on room rates in exchange for tax benefits or cash; Private landowners willing to develop and maintain low-cost lodging, for an up-front subsidy of development costs; Public agencies with land willing to ground lease, and possibly accept below-market rent (Cities, Port & Harbor Districts); State Parks, if willing to solicit private sector development of low-cost lodging, with a relatively long concession term; Non-Profits willing to facilitate lodging development, pass through a subsidy, and then sell land with deed restriction requiring the maintenance of below-market room rates. Tools include ground leases, concessions, deed restrictions. POTENTIAL