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Group Meeting Guest Market
The demand for the nroposed hotel in the group meeting guests market is expected to be composed of the following:
Penetration of the existing luxury group conference demand segment (defined as corporate and association groups requiring ten or more rooms).
Demand derived from the marketing efforts of the operating company. These are groups which have never been to the area and will come because of sales efforts of an inernational resort hotel operator's marketing department.
At maturity, the proposed hotel is projected to capture slightly more than its fair share of demand in the group meetings market. This is based on the proposed resort's expected high level of quality, its meeting facilities, amenities and afiliation.
Seasonal Demand
During the peak season, the proposed hotel is expected to achieve strong occupancy levels. In the first two years of operation, we project peak season occupancy levels to be 77 to 85 percent, respectively, with a 93 percent occupancy level being achieved in the third year and averaging above 95 percent after that. By this time, the hotel should be fully established in its market position.
Demand in the shoulder and winter seasons is expected to experience a similar buildlup period, with occupancy levels during the first three years being lower than the level at which it is eventually expected to stabilize.
We project shoulder season occupancy levels to be 60 and 66 percent for the first two years, respectively, reaching 73 percent in the third year and stabilizing at 76 percent by the fourth year.
Winter season occupancy is projected to be 55 percent for the first three years, stabilizing at 65 percent by the fourth year.
Hotel Spa
We have projected operating levels for the spa facility at the proposed resort on similar operations throughout the country. The most directly comparable facility to the one planned in the hotel is the La Costa Hotel and Spa near San Diego, California.