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Home My Public Portal AboutVHS Memo on Economic Feasibility 17 June 2015RECEIVED RECEIVED JUN 18 2015 PLANNING BOARD WATERTOWN, MA LETTER OF FINDINGS JUN 17 2015 BOARD OF APPEALS WATERTOWN, MA Proposed Watertown Hotel 80 ELM STREET WATERTOWN, MASSACHUSETTS SUBMITTED TO: Ms. Melissa M. Santucci Rozzi, Chairperson And Members of the Zoning Board of Appeals Town of Watertown 149 Main Street Watertown, Massachusetts 02472 PREPARED BY: HVS Consulting and Valuation Services Division ofTS Worldwide, LLC 369 Willis Avenue Mineola, New York, 11501 +1 (516) 248-8828 June 16, 2015 Ms. Melissa M. Santucci Rozzi, Chairperson And Members of the Zoning Board of Appeals 149 Main Street Watertown, Massachusetts 02472 HVS NEW YORK Re: Proposed Watertown Hotel 369 Willis Avenue Watertown, Massachusetts Mineola, Newyork, 11501 HVS Reference: 2015020818 +1 (516)248-8828 +1(516) 742-3059 FAX www.hvs. com To Whom It May Concern: Atlanta Boston Pursuant to the developer's request, we herewith submit our summary of findings Bolder pertaining to the above -captioned property. We have analyzed the lodging trends Chicago of select competitive hotels in this Boston/Cambridge market. It is our Dallas professional opinion that the subject site is favorably situated for commercial use Denver and its locational attributes have been considered in our analysis. The proposed Houston subject hotel has an o 1 pportunity to serve an unrepresented niche in the market. Las Vegas While the greater Boston/Cambridge market offers a wide complement of Los Angeles Mexico City affiliated and non-affiliated hotels, the area near the subject site remains Miami underserved by lodging facilities. Based on our market analysis, there is sufficient Minneapolis market support for the proposed Hilton Worldwide affiliated hotel. Our New Orleans conclusions are based primarily on the long-term strength of this hotel market. Newyork This market successfully absorbed a significant amount of supply that opened Newport throughout 2008 and 2009, and the projected long-term of demand and Philadelphia growth average rate indicates that the market should successfully absorb the new supply San Francisco from the proposed hotels in the area, including the proposed subject hotel. The Scoots Toronto hotel site is located near several local employers and headquarter offices, Vancouver academic and healthcare institutions, and leisure attractions in the area; Washington furthermore, the proposed hotel will offer an appropriate array of facilities and Athens amenities that should allow the property to perform well among the commercial, Bahamas extended -stay, and leisure segments. Based on these parameters, the feasibility of Bangkok the subject project is confirmed. Beijng Buenos Aires Dubai Guangzhou Sincerely, Hong Kong Jakarta TS Worldwide, LLC London Milan New Delhi Sao Paulo Shanghai Preston K. Puleo, Vice President Singapore ppuleo@hvs.com,+1 (910) 723-3579 Superior results through unrivaled hospitality intelligence. Everywhere. tune-2015 Proposed Watertown Hotel— Watertown, Massachusetts 11 HVS is the is the world's leading consulting and services organization focused on the hotel, mixed -use, shared ownership, gaming, and leisure industries. Established in 1980, the company performs 4,500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of more than 30 offices and 450 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. www.hvs.com Superior results through unrivaled hospitality intelligence. Everywhere. HVS New York specializes in consulting and valuation, and works extensively on hotel appraisal and feasibility assignments throughout New England and the Mid -Atlantic regions. Our hotel experts offer advisory and appraisal services for all branded and independent limited-, select-, and full -service hotels and resorts. We invest in our associates' continual training and education, benefiting you with a consulting and valuation team keenly abreast of the latest market conditions and trends. Our clients include investors, lenders, rating agencies, buyers, sellers, government agencies, tax assessors, operating companies, and owners. About the Author A Vice President with HVS New York, Preston Puleo works out of Boston, Massachusetts, conducting hotel consulting and appraisal assignments in hospitality markets throughout the New England and the Mid -Atlantic regions. These assets range from boutiques to brand -name, full -service hotels, both existing and proposed. His detailed approach, re -adapted to fit each individual hotel assignment, translates into clear, comprehensive conclusions about a hotel's feasibility or value. Preston graduated with honors from Cornell University's School of Hotel Administration and worked as an associate with a hotel asset management firm in Providence, Rhode Island. His prior hospitality experience also includes internships at resorts and country clubs in Georgia and North Carolina. June-2015 Proposed Watertown Hotel —Watertown, Massachusetts ll) Preston Puleo EMPLOYMENT 2011 to present HVS CONSULTING AND VALUATION SERVICES New York, New York 2010-2011 HOTEL ASSET VALUE ENHANCEMENT Providence, Rhode Island 2009 CLUB CORP Stockbridge, Georgia 2008 PINEHURST RESORT & COUNTRY CLUB Pinehurst, North Carolina 2007 PINE NEEDLES LODGE & GOLF CLUB Southern Pines, North Carolina EDUCATION AND OTHER BS - School of Hotel Administration, Cornell University TRAINING Other Specialized Training Classes Completed: Advanced Income Capitalization - 30 hours Advanced Concepts and Case Studies - 40 hours Advanced MarketAnalysis and Highest & Best Use - 35 hours Basic Appraisal Procedures - 30 hours Basic Appraisal Principles - 30 hours Business Practices and Ethics - 5 homy General Appraiser Income Approach - 60 hours General Appraiser Market Analysis and Highest & Best Use - 30 hours General Appraiser Report Writing and Case Studies - 30 hours General Appraiser Site Valuation and Cost Approach - 30 hours General Appraiser Sales Comparison Approach - 30 hours Statistics, Modeling and Finance -15 hours Quantitative Analysis - 40 hours Uniform Standards of Professional Appraisal Practice -15 hours USPAP Update - 2013, 2014 STATE CERTIFICATIONS Connecticut, Massachusetts, New Hampshire, New York, Rhode Island, Vermont HVS, New York, New York Qualifications of Preston Puleo PUBLISHED ARTICLES HPSJournal "Three Key Takeaways 1 2015 HELP - Hotel Equity & Lender Perspectives Conference," April 2015 HPSJourwal "Trends and Opportunities: New England Hotel Market," September 2014 H17SJournal "In Focus: Buffalo, New York," co-authored with Patrick Bursey, July 2014 HYSJournal "Market Intelligence Report 2013: Boston," co-authored with Nicole Ortiz, August 2013 HYSJo owal "Market Intelligence Report 2013: Detroit," May 2013 HYSJournal 'Boston's Waterfront District: Harboring Potential for Hotels," co-authored with Brian Bisema, April 2012 HVS, New York, New York Qualifications of Preston Puleo 2 EXAMPLES OF CORPORATE AND INSTITUTIONAL CLIENTS SERVED 1�t National Bank of Talladega Aparium Hotel Group Apple Federal Credit Union Archgrove Hospitality Bank of America NA Barclays Capital Borrego Springs Bank Business Professionals, Inc. Camden National Bank Cantor Fitzgerald Capital Bank CheckSpring Bank C-III Commercial Mortgage Citigroup Clarion Partners Colliers Community South Cushman & Wakefield CW Capital Deutsche Bank Diane Nordin Fidelity Bank GE Commercial Mortgage GE Franchise Finance Georgia Bank & Trust Goldman Sachs Hanmi Bank Home Loan Bank Horizon Bank - Indiana Island Capital Group JPMorgan Chase Kennebunk Savings Ladder Capital Leader Bank Lion Hotel Group LNR LoanCore Lowe Enterprises Machias Savings Bank ME Financial Bank Mega International Commercial Bank Metro Bank Metro City Bank Mission Oaks Bank Mortenson NBT Bank New England Bank NewGen Technologies NHR Properties Noah Bank NRB of Chicago Orix Capital Markets Pacific Premier Bank PMC Trust Republic Bank Savings Bank of Wapole SCS Compliance Shore Community Bank Spring Bank State Bank of Texas Swami Investment Company Tariri Law Offices, P.C. TD Bank The Bank of Las Vegas Torchlight Transcas Capital Union Capital Investments US Bank HVS, New York, New York Qualifications of Preston Puleo EXAMPLES OF PROPERTIES APPRAISED OR EVALUATED ALABAMA Hampton Inn, Alexander City Hampton Inn, Birmingham CALIFORNIA Proposed Hampton Inn, Mammoth Lakes Proposed SpringHill Suites by Marriott, Mammoth Lakes Proposed Residence Inn by Marriott, Mammoth Lakes Proposed Homewood Suites by Hilton, Redondo Beach COLORADO Silverleaf Suites, Eagle CONNECTICUT Baymont Inn & Suites, East Windsor Courtyard by Marriott, Farmington Homewood Suites Farmington - Hartford, Farmington Comfort Inn & Suites, Meriden Quality Inn & Suites, Meriden Hyatt Place, Mystic Premiere Hotel & Suites, New Haven Holiday Inn Express, Newington Fairfield Inn & Suites by Marriott, Plainville Residence Inn by Marriott, Rocky Hill Hampton Inn, Shelton Hilton Garden Inn, Shelton Hyatt House, Shelton Motel 6, Vernon Proposed SpringHill Suites, Vernon Homewood Suites by Hilton, Wallingford Hampton Inn, Waterbury Hampton Inn, West Haven Comfort Inn & Suites, Wethersfield Econo Lodge, Windsor Locks Ramada Inn, Windsor Locks DISTRICT OF COLUMBIA Comfort Inn FLORIDA Residence Inn, Daytona Candlewood Suites, Fort Myers Econo Lodge, Orlando Quality Inn & Suites, Orlando Hilton Garden Inn Tampa Southeast, Riverview Holiday Inn Express, Spring Hill GEORGIA Holiday Inn Express (Choice Suites Conversion), Atlanta Proposed Hampton Inn, Augusta Sheraton Gateway Hotel Atlanta Airport, Atlanta Horizon Inn, Norcross INDIANA Holiday Inn Express, Brownsburg Relax Inn, Fort Wayne Holiday Inn Express, Kokomo Proposed Hampton Inn, Michigan City Motel 6, Mishawaka Best Western, Portage Baymont Inn, Plainfield KENTUCKY Holiday Inn Express, Lexington Motel 6, Louisville Sleep Inn, Owensboro MAINE Hampton Inn, Freeport Proposed Hampton Inn, Kennebunk Proposed Hotel, Oxford Proposed Hotel, South Portland Hampton Inn, Waterville MARYLAND Comfort Suites, Chestertown Comfort Suites Ella•idge Quality Inn/Econo Lodge, Takoma Park Harrison House Country Inn, Tilghman Island MASSACHUSETTS Proposed Hampton Inn, Amesbury Courtyard by Marriott, Andover DoubleTree by Hilton Bedford Glen, Bedford Homewood Suites Billerica -Boston, Billerica Embassy Suites Boston @ Logan Airport, Boston Hampton Inn, Boston Hilton Boston Logan Airport, Boston Homewood Suites by Hilton, Boston Proposed Limited -Service Hotel, Boston Proposed Limited -Service Hotel, Cambridge Hilton Garden Inn, Burlington Hyatt House, Burlington Quality Inn, Chicopee Super 8, Leominster Wesley Hotel, Oak Bluffs Proposed Holiday Inn Express, Springfield HVS, New York, New York Qualifications of Preston Puleo 4 Hotel Worchester (former Hampton Hilton, Woodbridge Inn), Worchester RHODE ISLAND MICHIGAN Comfort Suites, Auburn Hills Hilton Garden Inn, Detroit Proposed Boutique Hotel, Detroit AmeriHost Inn & Suites, DeWitt Hampton Inn, Lenox Redwood Inn, Lewiston Ramada, Ludington Hawthorn Suites, North Chelmsford Comfort Suites, Southgate Surfari Joe's Conversion (inspection only), Watervliet MINNESOTA Proposed Home2 Suites, Bloomington Proposed Select -Service Hotel, Minneapolis NEW HAMPSHIRE Proposed Comfort Inn, Berlin Rodeway Inn, Claremont Eastgate Inn, Littleton Super 8, Manchester Residence Inn by Marriott, Merrimack NEW JERSEY Comfort Suites, East Brunswick Red Roof Inn, Edison Hotel Park East, Elizabeth Ramada, Flemington Proposed Granite Woods Hotel, Merrimack Hilton Garden Inn, Ridgefield Park La Quinta Inn & Suites, Somerset Hampton Inn Cherry Hill Voorhees, Voorhees NEW YORK Holiday Inn, Albany Hotel Bliss, Brooklyn Kings Motel, Brooklyn Proposed Hotel, Brooklyn Proposed TownePlace Suites by Marriott, Brooklyn Sleep Inn, Brooklyn Country Inn & Suites, Ithaca Econo Lodge, Ithaca Best Western, Liverpool Budget Inn, Massapequa Proposed Holiday Inn Express, Peekskill Comfort Inn, Rochester Claremont Hotel, Roslyn Comfort Inn, Staten Island Holiday Inn Express, Staten Island Proposed Holiday Inn, Staten Island Proposed Limited -Service Hotel, Staten Island Best Western, Syracuse Tuckahoe Motor Inn, Yonkers NORTH CAROLINA Red Roof Inn, Greensboro Hampton Inn Fort Bragg, Spring Lake OHIO Hilton Garden Inn, Cleveland All American Inn & Suites, Norwalk Best Western, Norwalk PENNSYLVANIA Proposed Candlewood Suites, Harrisburg Hampton Inn, Smithfield TENNESSEE Courtyard Nashville Brentwood, Brentwood Courtyard Memphis East Park Avenue, Memphis VERMONT La Quinta Inn & Suites, South Burlington Colonial Motel and Spa, Brattleboro VIRGINIA Quality Inn, Christiansburg Days Inn, Petersburg Courtyard by Marriott North, Virginia Beach Courtyard by Marriott South, Virginia Beach WEST VIRGINIA Proposed Holiday Inn Express, Cross Lanes Quality Inn, Morgantown HVS, New York, New York Qualifications of Preston Puleo 5