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VISITOR INDUSTRY OUTLOOK CONFERENCE
SOUTHERN CALIFORNIA LODGING FORECAST
OCTOBER 18, 2016 OPERATING AT A HIGH LEVEL
CBRE HOTELS | CONSULTING
2 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
OPERATING AT A HIGH LEVEL
1. MUCH TO THINK ABOUT – THE ECONOMY 2. A REVIEW OF HISTORY 3. OUR NATIONAL FORECAST 4. THE SUPPLY STORY 5. LOCAL LODGING FORECAST 6. DATABASES USED
TOPICS FOR TODAY
3 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
MUCH TO THINK ABOUT
WHY BE HAPPY?
HIGH OCCUPANCY LEVELS
SUPPLY GROWTH ACCELERATING
INFLATION & INTEREST RATES ARE LOW WAGES INCREASING PROFITS CONTINUE TO GROW
INFLATION & INTEREST RATES GOING UP? WAGES INCREASING EXPENSE GROWTH ACCELERATING
WHY BE CONCERNED?
4 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
A STRONGER 2017 IS EXPECTED ECONOMIC ASSUMPTIONS BEHIND OUR FORECASTS
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5 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
• No Recession Any Time Soon • Energy/Trucking/Railroads Are Hurting
– All Else = Fine • Economy Not Growing Fast • Retail Sales: Volume Good; Too Many Stores
SOME THOUGHTS ON THE ECONOMY
MAIN TAKEAWAY:
WE’RE SLOWING DOWN, NOT STOPPING
OUR NATIONAL FORECAST
7 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
Long Run Average 2013 2014 2015 2016F 2017F
Supply 1.9% 0.6% 0.7% 1.1% 1.6% 2.0%
Demand 2.0% 2.0% 4.3% 2.7% 1.7% 1.8%
Occupancy 62.0% 62.2% 64.4% 65.4% 65.5% 65.4%
ADR 3.0% 3.8% 4.5% 4.5% 3.5% 4.1%
RevPAR 3.2% 5.2% 8.2% 6.2% 3.6% 3.9%
OCCUPANCY PEAKS AND ADR GROWTH PICKS UP
U.S. BASELINE FORECAST
Source: CBRE Hotels’ Americas Research - Hotel Horizons® September – November 2016; STR
RECORD HIGH OCCUPANCY WAS ACHIEVED IN 2015, WILL 2016 BE EVEN BETTER?
8 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
REVPAR FORECAST BY CHAIN-SCALE
Chain-Scale 2015 2016F 2017F
Luxury 4.5% 1.5% 2.5%
Upper-Upscale 4.8% 2.5% 3.6%
Upscale 5.6% 2.5% 3.5%
Upper-Midscale 6.3% 2.6% 3.4%
Midscale 6.2% 1.2% 3.6%
Economy 6.5% 2.8% 4.6%
All Hotels 6.2% 3.6% 3.9%
Source: CBRE Hotels’ Americas Research - Hotel Horizons® September – November 2016 (PRL); STR, Inc.
9 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
REVPAR CHANGE FROM PREVIOUS PEAK
TIMES ARE GOOD FOR MOST, BUT NOT ALL – CHAIN SCALES
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BLLA | OCTOBER 24, 2016
OUR REGIONAL FORECASTS
11 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
U.S. supply has increased more slowly than in prior cycles, but the pace of hotel construction could accelerate if past patterns repeat.
WHERE ARE WE IN THE SUPPLY CYCLE?
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000
1,000,000
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120
Rooms
Months After Start of Expansion
Cumulative Supply Changes
Aug 1992-Nov 2002 Nov 2002-May 2010 May 2010-Current
Sources: CBRE Hotels, STR Inc. Q2 2016.
T0=Real RevPAR trough (start of cycle)
Real RevPAR Peak RevPAR trough (end of cycle)
12 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
SOUTHERN CALIFORNIA HOTEL MARKETS COMPARISON Area YE 2015 YE 2016E YoY Change National 65.4% 65.5% 0.1% Los Angeles County 81.8% 83.0% 1.5% Orange County 77.9% 78.1% 0.2% San Diego County 77.8% 77.3% -0.6%
Area YE 2015 YE 2016E YoY Change National $120.23 $124.42 3.5% Los Angeles County $187.77 $203.41 8.3% Orange County $148.73 $155.59 4.6% San Diego County $179.17 $182.82 2.0%
Source: CBRE Hotels’ Americas Research - Hotel Horizons® September – November 2016; STR, Inc.; CBRE Hotels Southern California Lodging Forecast
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SOUTHERN CALIFORNIA HOTEL MARKETS COMPARISON Area YE 2016E YE 2017F YoY Change National 65.5% 65.4% -0.1% Los Angeles County 83.0% 80.8% -2.7% Orange County 78.1% 77.0% -1.4% San Diego County 77.3% 76.7% -0.8%
Area YE 2016E YE 2017F YoY Change National $124.42 $129.46 4.1% Los Angeles County $203.41 $210.16 3.3% Orange County $155.59 $161.04 3.5% San Diego County $182.82 $188.13 2.9%
Source: CBRE Hotels’ Americas Research - Hotel Horizons® September – November 2016; STR, Inc.; CBRE Hotels Southern California Lodging Forecast
14 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
LOS ANGELES COUNTY
PORTER RANCH GAS LEAK IMPACTED THE MARKET SIGNIFICANTLY
MANY SUBMARKETS ARE EXCEEDING HISTORICAL LEVELS & OCCUPANCY WILL DECLINE SOME
PROJECTED RATE GROWTH IS IN LINE WITH THE NATIONAL AVERAGE FOR 2017
LUXURY HOTELS PERFORMING WELL AND AMONG THE HIGHEST IN THE U.S.
MOST OF THE NEW SUPPLY WILL GET ABSORBED; THE MOST ACTIVITY IS IN DTLA, THEN LAX
LONG-RUN SUPPLY GROWTH (1988-2015) WAS 0.8%
Los Angeles County Historical Market Performance of the Competitive Supply
Daily Annual Percent Occupied Percent Market Average Percent Percent Year Supply Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 98,212 35,847,380 N/A 26,941,391 N/A 75.2% $145.74 N/A $109.53 N/A 2012 97,061 35,427,265 -1.2% 27,208,316 1.0% 76.8% 154.51 6.0% 118.67 8.3% 2013 96,963 35,391,495 -0.1% 28,296,601 4.0% 80.0% 162.11 4.9% 129.61 9.2% 2014 97,673 35,650,645 0.7% 28,917,760 2.2% 81.1% 174.88 7.9% 141.85 9.4% 2015 98,198 35,842,270 0.5% 29,331,200 1.4% 81.8% 187.77 7.4% 153.66 8.3%
2016E 98,994 36,132,795 0.8% 30,003,891 2.3% 83.0% 203.41 8.3% 168.91 9.9% 2017F 103,872 37,913,439 4.9% 30,627,372 2.1% 80.8% 210.16 3.3% 169.77 0.5% CAAG 0.9% 0.9% 2.2% 6.3% 7.6%
Source: CBRE Hotels
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SAN DIEGO COUNTY San Diego County
Historical Market Performance of the Competitive Supply Annual Percent Occupied Percent Market Average Percent Percent
Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 13,228,330 N/A 9,569,106 N/A 72.3% $151.54 N/A $109.62 N/A 2012 13,326,211 0.7% 9,830,398 2.7% 73.8% 156.21 3.1% 115.23 5.1% 2013 13,471,055 1.1% 10,022,271 2.0% 74.4% 161.43 3.3% 120.10 4.2% 2014 13,610,283 1.0% 10,384,073 3.6% 76.3% 170.52 5.6% 130.10 8.3% 2015 13,790,552 1.3% 10,723,085 3.3% 77.8% 179.17 5.1% 139.32 7.1%
2016E 14,163,886 2.7% 10,952,627 2.1% 77.3% 182.82 2.0% 141.37 1.5% 2017F 14,474,410 2.2% 11,101,719 1.4% 76.7% 188.13 2.9% 144.29 2.1% CAAG 1.5% 2.5% 3.7% 4.7%
Source: CBRE Hotels
UNCERTAINTY OF SAN DIEGO CONVENTION CENTER EXPANSION AND SAN DIEGO CHARGERS
CONVENTION CENTER CAPITAL IMPROVEMENTS PROJECT FUNDING
CONTINUED ENHANCEMENTS TO AIRPORT
CONTINUED DECLINE IN SEAWORLD VISITATION AND ABANDONED TANK PROJECT
SIGNIFICANT SUPPLY GROWTH EXPECTED THROUGH 2017
LONG-RUN SUPPLY GROWTH (1988-2015) 2.0%
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VENTURA COUNTY
VENTURA COUNTY LODGING ASSOCIATION (VCLA) CONTINUED INVESTMENT IN MARKETING
PORTER RANCH SECONDARY OVERFLOW MARKET
NO SUPPLY GROWTH EXPECTED IN THE NEXT TWO YEARS
CONTINUED INVESTMENT IN HOTEL RENOVATIONS
NFL TRAINING CAMP – COWBOYS AND RAMS
Ventura County Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 1,673,890 N/A 1,078,694 N/A 64.4% $98.07 N/A $63.20 N/A 2012 1,673,890 0.0% 1,115,862 3.4% 66.7% 100.03 2.0% 66.69 5.5% 2013 1,673,890 0.0% 1,138,217 2.0% 68.0% 101.71 1.7% 69.16 3.7% 2014 1,673,525 0.0% 1,214,067 6.7% 72.5% 109.07 7.2% 79.13 14.4% 2015 1,652,720 -1.2% 1,235,540 1.8% 74.8% 117.57 7.8% 87.90 11.1%
2016E 1,652,720 0.0% 1,270,689 2.8% 76.9% 123.79 5.3% 95.18 8.3% 2017F 1,651,990 0.0% 1,263,380 -0.6% 76.5% 127.54 3.0% 97.54 2.5% CAAG -0.2% 2.7% 4.5% 7.5%
Source: CBRE Hotels
17 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
ORANGE COUNTY
OVER 3.5 MILLION SQUARE FEET OF OFFICE SPACE UNDER CONSTRUCTION NEW PLANS ANNOUNCED FOR DISNEYLAND NEW AND UNDER CONSTRUCTION HOTEL ADDITIONS ANAHEIM – VISIT ANAHEIM, HOTEL INCENTIVES PROGRAM, & DISNEYLAND CONVENTION CENTER EXPANSION SCHEDULED FOR FALL 2017 COMPLETION OC SUBMARKETS SHOWING RATE RESISTANCE LONG-RUN SUPPLY GROWTH (1988-2015) WAS 1.5%
Orange County Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 15,532,940 N/A 11,069,315 N/A 71.3% $119.10 N/A $84.87 N/A 2012 15,616,160 0.5% 11,445,068 3.4% 73.3% 125.97 5.8% 92.33 8.8% 2013 15,641,345 0.2% 11,720,289 2.4% 74.9% 133.35 5.9% 99.92 8.2% 2014 15,807,755 1.1% 12,077,989 3.1% 76.4% 142.12 6.6% 108.59 8.7% 2015 16,155,995 2.2% 12,589,677 4.2% 77.9% 148.73 4.6% 115.90 6.7%
2016E 16,635,149 3.0% 12,992,456 3.2% 78.1% 155.59 4.6% 121.52 4.9% 2017F 17,299,373 4.0% 13,319,741 2.5% 77.0% 161.04 3.5% 123.99 2.0% CAAG 1.8% 3.1% 5.2% 6.5%
Source: CBRE Hotels
18 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
SANTA BARBARA COUNTY
SANTA BARBARA AIRPORT ADDED A NON STOP FLIGHT FROM DALLAS/FORTH WORTH
MAJOR OPPORTUNITIES IN HOTEL RENOVATIONS AND REPOSITIONINGS
EXCITING FUTURE ADDITIONS TO SUPPLY
Santa Barbara County Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 1,954,210 N/A 1,365,334 N/A 69.9% $168.80 N/A $117.93 N/A 2012 1,980,855 1.4% 1,415,645 3.7% 71.5% 174.72 3.5% 124.87 5.9% 2013 2,011,241 1.5% 1,460,900 3.2% 72.6% 182.57 4.5% 132.61 6.2% 2014 2,015,165 0.2% 1,517,573 3.9% 75.3% 196.45 7.6% 147.94 11.6% 2015 1,986,573 -1.4% 1,533,045 1.0% 77.2% 207.13 5.4% 159.84 8.0%
2016E 1,986,391 0.0% 1,522,047 -0.7% 76.6% 214.00 3.3% 163.97 2.6% 2017F 2,132,026 7.3% 1,593,847 4.7% 74.8% 220.01 2.8% 164.47 0.3% CAAG 1.5% 2.6% 4.5% 5.7%
Source: CBRE Hotels
19 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
COACHELLA VALLEY
DEMAND CONTINUES, BUT STILL BELOW A STABILIZED LEVEL
TOURISM DRIVES LOCAL HOTEL DEMAND; FESTIVALS & EVENTS
RESORTS LEADING THE WAY, PALM SPRINGS CLOSELY BEHIND
AIRLIFT CAPACITY INCREASES, BUT WILL CONTINUE TO BE A GROUP RESTRAINT
STRONG DEVELOPER INTEREST & ECONOMIC INCENTIVES
RITZ-CARLTON RANCHO MIRAGE, PALM SPRINGS HOTEL PIPELINE GROWING
Coachella Valley Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 3,672,054 N/A 2,009,851 N/A 54.7% $136.09 N/A $74.48 N/A 2012 3,698,629 0.7% 2,107,203 4.8% 57.0% 142.28 4.6% 81.06 8.8% 2013 3,703,079 0.1% 2,130,949 1.1% 57.5% 150.98 6.1% 86.88 7.2% 2014 3,748,659 1.2% 2,234,847 4.9% 59.6% 161.90 7.2% 96.52 11.1% 2015 3,756,945 0.2% 2,236,370 0.1% 59.5% 164.99 1.9% 98.22 1.8%
2016E 3,756,945 0.0% 2,339,223 4.6% 62.3% 172.86 4.8% 107.63 9.6% 2017F 3,866,080 2.9% 2,402,204 2.7% 62.1% 178.25 3.1% 110.75 2.9% CAAG 0.9% 3.0% 4.6% 6.8%
Source: CBRE Hotels
20 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
SAN LUIS OBISPO COUNTY
MORE ACTIVE SUPPLY PIPELINE THAN IN PAST YEARS; SHOULD BE ABSORBED IN 1-2 YEARS
INCREASINGLY STRONG LEISURE DEMAND; POPULAR DRIVE DESTINATION
SMALL, BUT GROWING CORPORATE BASE (QUALITY OF LIFE AS A DRIVER)
CENTRALLY LOCATED BETWEEN LA & SF; SIGNIFICANT DRIVE DEMAND TEMPERS DOWNSIDE
RENOVATIONS OF OLDER PROPERTIES IN THE COASTAL REGION
HIGHER QUALITY HOTEL PROJECTS ON THE HORIZON (SLO CITY & PISMO BEACH)
San Luis Obispo County Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 1,561,105 N/A 1,040,987 N/A 66.7% $129.04 N/A $86.05 N/A 2012 1,607,825 3.0% 1,110,325 6.7% 69.1% 132.24 2.5% 91.32 6.1% 2013 1,646,880 2.4% 1,175,542 5.9% 71.4% 136.75 3.4% 97.61 6.9% 2014 1,646,880 0.0% 1,205,879 2.6% 73.2% 144.07 5.4% 105.49 8.1% 2015 1,691,958 2.7% 1,238,005 2.7% 73.2% 150.96 4.8% 110.46 4.7%
2016E 1,770,250 4.6% 1,258,673 1.7% 71.1% 158.14 4.8% 112.44 1.8% 2017F 1,788,865 1.1% 1,284,992 2.1% 71.8% 162.28 2.6% 116.57 3.7% CAAG 2.3% 3.6% 3.9% 5.2%
Source: CBRE Hotels
21 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
INLAND EMPIRE
ECONOMIC RECOVERY FUELED BY NEW HOUSING AND JOB GROWTH BARRING UNFORESEEN EVENTS, IE WILL EXHIBIT SOME OF THE STRONGEST GROWTH NEW AND MINIMAL SUPPLY ADDITIONS WILL BE QUICKLY ABSORBED WE’VE ADDED TEMECULA VALLEY AS A SEPARATE SUBMARKET; SIGNIFICANT SUPPLY GROWTH FOCUS SHOULD BE ON INCREASING ADR (NOT YET BACK TO PEAK) AT STABILIZATION CONTINUED EFFORTS BY THE GOCVB TO INCREASE LEISURE DEMAND LOCAL CONTROL OF THE LA/ONTARIO AIRPORT OFFERS FUTURE POTENTIAL…
Inland Empire Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 3,607,295 N/A 2,241,012 N/A 62.1% $84.80 N/A $52.68 N/A 2012 3,663,140 1.5% 2,339,678 4.4% 63.9% 86.54 2.0% 55.27 4.9% 2013 3,682,120 0.5% 2,464,799 5.3% 66.9% 88.67 2.5% 59.36 7.4% 2014 3,756,945 2.0% 2,665,973 8.2% 71.0% 93.26 5.2% 66.18 11.5% 2015 3,819,360 1.7% 2,846,692 6.8% 74.5% 100.25 7.5% 74.72 12.9%
2016E 3,875,205 1.5% 2,917,989 2.5% 75.3% 106.53 6.3% 80.22 7.4% 2017F 4,005,875 3.4% 2,990,764 2.5% 74.7% 110.65 3.9% 82.61 3.0% CAAG 1.8% 4.9% 4.5% 7.8%
Source: CBRE Hotels
22 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
SOUTHERN CALIFORNIA COASTAL
NEW SUPPLY AT OR EXCEEDING HISTORICAL HIGHS
ALL TIERS ACHIEVING RECORD ADR LEVELS, SLOWER GROWTH GOING FORWARD
LAST YEAR WAS LIKELY PEAK OCCUPANCY FOR THE SHORT TO MID-TERM, BUT LACK OF AVAILABLE SITE SHOULD PROTECT AGAINST DRAMATIC DECLINES
PASÉA HOTEL & SPA OPENED MEMORIAL DAY WEEKEND 2016
FUTURE ADDITIONS IN HUNTINGTON BEACH IN SANTA BARBARA
Southern California Coastal Historical Market Performance of the Competitive Supply
Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2011 3,105,785 N/A 2,051,479 N/A 66.1% $293.39 N/A $193.79 N/A 2012 3,145,205 1.3% 2,167,571 5.7% 68.9% 305.62 4.2% 210.63 8.7% 2013 3,203,240 1.8% 2,252,619 3.9% 70.3% 321.50 5.2% 226.09 7.3% 2014 3,245,945 1.3% 2,366,762 5.1% 72.9% 341.56 6.2% 249.05 10.2% 2015 3,248,135 0.1% 2,387,785 0.9% 73.5% 353.58 3.5% 259.93 4.4%
2016E 3,301,364 1.6% 2,397,543 0.4% 72.6% 363.11 2.7% 263.70 1.5% 2017F 3,383,003 2.5% 2,443,945 1.9% 72.2% 371.93 2.4% 268.69 1.9% CAAG 1.4% 3.0% 4.0% 5.6%
Source: CBRE Hotels
23 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
OPERATING AT THE PEAK 1. THE FUNDAMENTALS REMAIN ATTRACTIVE ACROSS THE VAST MAJORITY OF
MARKETS. 2. INDUSTRY GROWTH WILL PERSIST COMFORTABLY THROUGH 2017 AND LIKELY
BEYOND. 3. HIGH OCCUPANCY LEVELS WILL PROVIDE THE LEVERAGE NEEDED TO
ACHIEVE ABOVE-AVERAGE ADR INCREASES FOR THE NEXT TWO-THREE YEARS.
4. MODEST (BUT INCREASING) HOTEL CONSTRUCTION IS TO BE EXPECTED; THE THREAT OF OVER BUILDING IS ABSENT FROM MOST MARKETS.
5. ABOVE LONG RUN AVERAGE OCCUPANCY LEVELS WILL LEAD TO REVENUJE GROWTH SUFFICIENT TO OFF-SET INCREASING LABOR COSTS, THUS RESULTING IN ABOVE-AVERAGE PROFIT GROWTH.
6. SOUTHERN CALIFORNIA CONTINUES TO BE ONE OF THE NATION’S LEADING REGIONAL HOTEL MARKETS!
SUMMARY THOUGHTS
24 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
Q & A
WHAT QUESTIONS CAN WE ANSWER FOR YOU?
25 VIOC – SOUTHERN CALIFORNIA LODGING FORECAST| OCTOBER 18, 2016
CBRE HOTELS The World’s Leading Hotel Experts.
Bruce Baltin Managing Director +1 213 613 3370 [email protected]
400 South Hope Street 25th Floor Los Angeles, CA 90071 www.cbrehotels.com
CBRE © 2016 All Rights Reserved. All information included in this proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
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