Hutchinson Draft 4.26.19 Center study...property of this type and scope in the Hutchinson market...

MarketStudyforaproposed

Hotel&ConventionCenterHutchinson,KansasVisitHutchApril2019

Hospitality Real Estate Counselors SM

Memphis, Tennessee

®

6075PoplarAvenue,Suite903·Memphis,Tennessee38119901.791.2564Telephone·901.791.2574Facsimile

[email protected]·www.hrec.com

April26,2019DebraTeufelPresident/CEOVisitHutch117NorthWalnutHutchinson,[email protected]:620.662.3391

DearMs.Teufel: Enclosed is themarket study for aHotel andConventionCenter (the “Hotel”) proposed fordevelopmentinHutchinson,Kansas. The objective of this study is to determine the market support for of the proposedHotel/Convention Center. The research and these projections are based on certainassumptions and the interpretation of evolving events, which is inherently subject touncertainty. Someassumptionsandestimateswillinevitablybeinaccurateandunanticipatedeventsmayoccur.Therefore,theactualresultsachievedduring the forecastperiodmayvaryfromtheseprojectionsandthevariationscouldbematerial. Therewerenoattemptstoascertainlegal,ADA,regulatory,zoning,permit,license,signageorother development and related approvals. Existing and pending legislative or ecologicalmatters were not considered. The author and HospInvest, LLC, d/b/a HREC – HospitalityRealEstateCounselorswill not be liable for errors in judgment,negligenceor other fault inconnection with this study except for acts of gross negligence, willful malfeasance andfraud.Keyassumptions to theseprojections include thepresenceofahigh levelofexpertisein thedevelopmentandongoingmanagementoftheproposedHotel. This report is intended for your use in support of franchise, development and fundingconsiderations.Neither the reportnor its contentsmaybe included or quoted in any otherdocument or be used in a bond, public or other offering/prospectus without prior writtenconsent. Also, certain data and information collected for this study and presented in thisreport is confidential and not intended for public dissemination or disclosure to unrelatedparties.Sincerely, HREC – Hospitality Real Estate Counselors

HospitalityRealEstateCounselorsSM

Memphis,Tennessee

®

ProposedHotel&ConventionCenter•Hutchinson,KansasPreparedfor:VisitHutchPreparedfor:VisitHutch

HospitalityRealEstateCounselorsPage3

ExecutiveSummary A120-roomCourtyardbyMarriott,HiltonGardenInn,orsimilarproductisproposedfordevelopment

inHutchinson,Kansas.Thesubject facility isplanned to include foodandbeverageservice,business

center,fitnesscenter,possibleindoorpool,andrecommendedshuttletosurroundingsupportservices

and demand generators. The facility is also planned to be adjacent, or connected to, a large

complement ofmeeting space serving as a convention center; and,work in a partnershipwith this

venue for conventions, meetings, and various social events. The proposed Hotel and Convention

Centerisprojectedtoestablishapremiumcompetitivepositionandmarketdistinctionasthenewest

andmost upscale property in the Hutchinsonmarket. The projected performance of the proposed

HotelandConventionCenterispresentedinthefollowingtable.

TheproposedHotelandConventionCenterwouldbetheonlyCourtyardorHiltonGardenInnlodging

propertyof this typeandscope in theHutchinsonmarketarea.TheHotelandConventionCenter is

projectedtoestablishaclearlysuperiorcompetitivenicheandbesupportedbytheanticipatedgrowth

ofconventiondemand;anationallyrecognizedbrandaffiliation;acompetitivepriceposition;general

conveniencetoareacorporateandleisuredemandgenerators;proximitytosupportservices;and,an

easily accessible locationwithinHutchinson.Adiscussionof theproposed facility, subject site, area,

national lodging market conditions, demand considerations, and the projected performance of the

subjectHotelandConventionCenterappearsinthefollowingsectionsofthisreport.

PROJECTEDPERFORMANCE

PROPOSEDHOTEL&CONVENTIONCENTER

HUTCHINSON,KANSAS AverageRate

Year Occupancy 2018Dollars Inflated*

2022 62% $120 $132

2023 64% $120 $136

2024 66% $120 $139

2025 70% $120 $143

2026 72% $120 $146

*Inflatedat2.5percentannuallySource:HREC–HospitalityRealEstateCounselors



ProposedFacilitiesA120-roomCourtyardbyMarriott,HiltonGardenInn,orsimilarproductisproposedfordevelopment

in Hutchinson, Kansas. The Hotel and Convention Center is planned to include all standard guest

amenities and services prototypical for the brand, along with a possible indoor pool, and a

recommendedshuttletosurroundingsupportservicesanddemandgenerators.

MarriottInternational

In September 2016,Marriott International completed the acquisition of StarwoodHotels & Resorts

Worldwide.Thecombinedcompanyistheworld’slargesthotelcompanywithanestimated1.1million

rooms in more than 6,000 hotels, spanning the globe in over 110 countries with 30 leading hotel

brands. The transaction offers substantial economies of scale.Marriott now offers the most

comprehensiveportfolioofbrandsincludingleadinglifestylebrands,asignificantglobalfootprint,and

leadershipintheluxuryandselect-servicetiersaswellastheconventionandresortsegment.There

arepresentlyanestimated420,000roomsintheglobaldevelopmentpipeline.

CourtyardbyMarriottispartoftheMarriottfamily,whichincludesamulti-tierportfolioof30brands:

Luxury (Bulgari Hotels & Resorts®, The Ritz-Carlton®, JWMarriott®, St. Regis,WHotels, The Luxury

Collection,EDITION);Premium(MarriottHotels,Sheraton,Westin,DeltaHotelsbyMarriott,Marriott

ExecutiveApartments,MarriottVacationClub,RenaissanceHotels,LeMerdien,AutographCollection

Hotels,GaylordHotels,TributePortfolio,DesignHotels);and,Select(CourtyardbyMarriott,Residence

byMarriott, Fairfield Inn&SuitesbyMarriott, SpringHill SuitesbyMarriott, FourPointsbySherton,

TownePlaceSuitesbyMarriott,AloftHotels,ACHotelsbyMarriott,ProteaHotelsbyMarriott,Element

Hotels,MoxyHotels).

ThefollowingdiagramfurtherillustratesrepresentationoftheMarriottfamilyofbrands.



Asamemberof theMarriott familyofhotels,Courtyardwillhaveaccessto thenumerousbenefits

and services offered including on-line distribution channels and the frequent traveler rewards

program.Guests staying at anyMarriott property can participate in theMarriott Rewards program.

Thisprogramoffersmemberspointstowardbothfreevacationsandfreeairlinetravel.Membersearn

points for each dollar that is spent in any of the over 6,000Marriott propertiesworldwide. Other

benefitsforMarriottRewardsmembersareprioritycheck-in,roomguarantee,amonthlynewsletter,

room discounts and other select member services. Members can redeem points online for

merchandise and other vacation discounts.Marriott Rewards is one of the industry’s largestmulti-

brand frequent guest reward programs. Marriott effectively markets leisure stays, new hotels and

businessandsocialeventsthroughthissystem.Thereareanestimated110millionMarriottRewards

programparticipants and the program is consistently rated among the best in the industry. Global

strategicalliancesoffercross-promotionalpackagesanddatabasemarketingprograms(at littleorno

costtoMarriott)includingpartnershipswith41airlines,financialservicecompanies,suchasAmerican

Express and VISA, and consumer brands including AT&T and Hertz. In September 2016, Marriott

announced that they will match membership status across Marriott Rewards, which now includes

StarwoodPreferredGuest.Thiswillallowmemberstotransferpointsbetweentheprogramsfortravel

andexclusiveexperienceswhentheylinktheiraccounts.

Marriott.com is one of the leading Internet lodging sites in the country. The additional online

distribution channels include partnerships with Travelocity, Expedia and Orbitz, plus many smaller

online agencies. The companymaintains a long-term relationship with Priceline.com and strategic

relationshipswithSite59.comandtheNeatGroup,aswellastheTravelGroup.Marriott.comalsohasa

partnershipwith TravelCLICK for discounts onmedia placements and report products for individual

hotels.



CourtyardbyMarriottBrand

Courtyard by Marriott is one of the

company’s select-service lodging segment

brands. Founded in the early 1980s, the

brand, as of year-end 2017, has over 1,100

propertiesoperatingworldwide. The typical

Courtyard by Marriott prototype is a four-

story, 120-room property. Comparable

system-wide North American properties in

2017achieveda73.3percentoccupancy, an

average rate of $139.45, and RevPAR of

$102.15.

The Courtyard byMarriott features a newly designed lobby,which focuses on an elevated evening

experiencewith special seatingoptions toworkand relax.TheBistroprovides fresh, seasonalmenu

itemsforbreakfastanddinner,aswellassignaturecraftcocktails.Asanextensionof the lobby, the

BistroTerracefeaturesacommunityfirepitandoutdoorseatingarea.ThenewGoBroadtouchscreen

pushesbrandandhotelcontenttoguestsandprovidesaccesstocuratedlocalrecommendations.The

24/7Marketoffers “grabandgo”options,whichalso creates additional revenueopportunities. The

redesigned fitness center provides 1,000 square feet of space for cardio, stretching, and strength

activities.

The smartly designed guest rooms feature a luggage drop, tech drop to charge and store your

electronics,ahospitalitycabinet,andmovableworkspaceandoutlets.

Additionalguestroomfeaturesincludethefollowing:

• Luxuriousbeddingwiththickmattressesandcotton-richlinens;

• King-sizebedsinmostrooms;

• Spaciousguestroomsandsuiteswithworkspaceandseparateseatingareas;

• Alargeworkdeskwithno-glarelighting,outletsandanergonomicchair;

• Phoneswithdataportandvoicemail;

• LargeflatscreenTV;

• In-roomrefrigeratorandmicrowave;

• Walk-inshowersinthebathrooms;

• Complimentaryhigh-speedInternetaccess;

• Complimentaryin-roomcoffeeandtea;

• Ironandironingboard;and,

• Hairdryer.

PrototypicalDesignOnly



PhotographsofthecurrentprototypicalCourtyarddesignschemefollow.



HiltonWorldwide

Hilton Worldwide is headquartered in Tysons Corner, Virginia. As of December 2018, its portfolio

includesmorethan5,600properties(includingtimeshareproperties)withover913,000roomsin113

countriesandterritories.

Anadditional 364,000hotel roomsare in thedevelopmentpipeline - oneof the largestofferings in

companyhistory.HiltonWorldwidehas15brandsacrossdifferentmarketsegmentsincludingdifferent

scalesandhotelclasses.

HiltonGardenInnisoneof15brandsofHiltonWorldwide.OtherHiltonbrandsinclude:ConradHotels

& Resorts, Canopy by Hilton,Curio - A Collection by Hilton,Hilton Hotels & Resorts,DoubleTree by

Hilton,Embassy Suites Hotels,Hampton by Hilton,Homewood Suites by Hilton,Home2 Suites by

Hilton,HiltonGrandVacations,WaldorfAstoriaHotels&Resorts,TrubyHilton,TapestryCollectionby

Hilton,andMottobyHilton.

TheHiltonGarden Innbrand issupportedbytheHilton infrastructureanddistributionsystemwhich

includes the Hilton Worldwide Reservation System and the Hilton HHonors™ rewards program

designedforfrequentbusinesstravelerswhostayatanyoftheHiltonbrandhotels.HiltonHHonors™

offersmembers the ability to earn both points and airlinemiles for their stays at Hilton properties

worldwide.Goldanddiamondmembersgetcomplimentaryroomupgrades,Wi-Fi,bottledwater,and

breakfastatsomeproperties.HiltonHHonors™reportedlyhasover57millionmembersandover200

strategicpartners.

TheHiltonGardenInnBrand

Hilton Garden Inn is an award-winning, mid-priced

brand which provides guests such amenities as

complimentary cableandWi-Fi Internetaccess inall

guest rooms, PrintSpot™ mobile printing,

complimentary round-the-clock business center

services, innovativeGardenSleepSystem™bedsand

ergonomicMirra®chairsdesignedbyHermanMiller.

TheHiltonGarden Innbrand is designed to appeal to the individual business traveler andweekend

familysegmentintheuppertierofthemid-pricedmarket.HiltonGardenInnsrangeinsizefrom80to

365guest roomsandaregenerallynewconstruction. It isoneof the fastestgrowingbrands in the

Hilton family.AsofDecember2016, therearemore than700propertiesworldwide.The firstHilton

PrototypicalDesignOnly



GardenInnwasopenedinChinain2013andwasthefifthbrandintroducedtothatmarketbyHilton

Worldwide.

HiltonGarden Inns offer a full range of food and beverage facilities including a restaurant, bar and

roomserviceor,analternateprototypicalversionthathasmorelimitedfoodandbeveragefacilities.

This latter version is applicable in markets where there are numerous restaurant and bar options

available inthe immediatearea. Ineitherdesign,therearefewersquarefeetof foodandbeverage

facilitiesthaninatypicalfull-servicepropertysuchasaHiltonorDoubleTreeHotel.Afullcooked-to-

orderbreakfastisavailableforpurchaseatallproperties.

Thebrand finished the fullyearof2018withanoccupancyof75.5percentata$133averageroom

rate;2014performancenotedanoccupancyof75.3percentwithanaveragerateof$131.

The Hilton Garden Inn brand benefits from a strong reservation system and reward program. The

reservation system and Hilton HHonors™ reward program are key attributes of the brand. Other

importantcomponentsincludethefollowing:

• The Pavilion - Acting as the principalreception/lobby area that includes a

restaurant, lounge, guest check-in,

fireplace, outdoor patio, soft seating,

cocktail tablesandchairs, thePavilion

is the architectural signature item for

Hilton Garden Inn. The Pavilion

reflects the overall appearance of

Hilton Garden Inn in themarketplace

andinvitesgueststorelaxandunwind

afterabusyworkday.

• The Pavilion Pantry - The retail market includes a selection of microwaveable packaged,

refrigeratedandfrozenfooditemsandanassortmentofbeverages,snacks,andsundries.

• 24-HourBusinessCenter -Officeequipment includingan IBM-compatiblepersonal computer,

photocopyandfaxmachines,andprintingcapabilitiesareavailabletoguestswithoutcharge.



• Fitness Center - Each property is equipped with state-of-the-art aerobic and weightliftingequipment available to guests 24-hours a day. The hotels also offer a Stay Fit Kit® which

combinesaPilatesandyogaworkoutforuseintheguestbedrooms.

GuestRooms

Guestroomsarefurnishedaseitherqueen-queenorking

withadjustableGardenSleepSystems,whiteduvets,crisp

linens and a choice of hypoallergenic pillows. The

nightstand,entertainmentandhospitalitycenterprovide

amoredistinct residential feelwhile thematchingwork

desk adds an element of business functionality.

Complimentary Wi-Fi is available and the room is

equippedwithanErgonomicMirradeskchairbyHerman

Miller with 11 adjustable points to ensure comfort. An

alarmclockwithMP3connectivityisprovided.

GuestSatisfactionRatings

The2018J.D.Power&AssociatesNorthAmericaHotelGuestSatisfactionIndexStudyfindsthatguestsexperiencing problems during their stay is a highly important factor in their level of reported

satisfaction.

Keyfindingsincludethatnearly80percentofguestswhoexperienceasatisfactorystaywill“definitely”

recommend the [respective] brand to a friend. A recent survey of the overall satisfaction rating of

Prototypical

Queen/Queen

PrototypicalKing



upscalesegmentbrandsappearsinthefollowingtable.

The Courtyard brand scored above average for the upscale segment brands. TheHiltonGarden Inn

brandscoredhighestintheupscalesegment.

ConclusionTheproposedHotel andConventionCenter,witheitherbrandoption, isprojected toofferamixof

modernhigh-qualityfacilitieswithaverycompetitivecomplementofamenities,servicesandfeatures

andanexcellentbrandaffiliation.BoththeCourtyardandHiltonGardenInnprototypeareconsidered

very effective and competitive lodging products. This product profile is projected to support the

achievementofamarketpenetrationpremiumlevelwithinthesubjectmarketarea.Featuressuchas

fitness facilities, business center, high-speed Internet access, all interior- corridors, a nationally

recognized brand affiliation, limited food and beverage service, a possible indoor pool, and a

recommendedareashuttleareallprojectedtofavorablydifferentiatethisproduct.

UPSCALESEGMENT

OVERALLSATISFACTIONINDEX

(Basedona1,000-pointscale)

HiltonGardenInn 867

HyattPlace 861

Courtyard 858

SpringHillSuites 858

DoubleTree 852

UpscaleAverage 852

CrownePlaza 831

Aloft 827

FourPointsbySheraton 825

Radisson 821

Source:J.D.Power&Associates2018NorthAmericaHotelGuestSatisfactionIndexStudy



SiteandLocationAnalysis

LocationThe site of the proposed Hotel and Convention Center is in Hutchinson in Reno County Kansas.

Hutchinson is the largest cityandcounty seatofRenoCounty.Hutchinson iswithinaday’sdriveof

severallargercitiesintheregion.DenverandSt.Louisarejustoversevenhoursaway;Omahaisfive

hoursnorth;and,OklahomaCityandKansasCityarethreeandahalfhoursaway.Wichita is located

approximatelyonehoursoutheastofHutchinson.GivenitscentrallocationwithinthestateofKansas,

Hutchinsoniswithinathreeandahalfhourdrivefromnearlyanywhereisthestate.

There are currently three areaswithinHutchinsonunder consideration for the site of the proposed

Hotel and Convention Center. There are four sites under consideration in downtown Hutchinson,

several siteoptionsat theKansasStateFairgrounds, variouspossibleoption locatedwithin theK-61

corridor.



ThedowntownsitesareallwithinonemileofeachotherandincludeSearsPlazaat15NAdamsStreet

(SiteA);twobuildingsatWashingtonStreetandW4thAvenue(SiteB);asiteadjacenttothehistoric

FoxTheaterat17E2ndAvenue(SiteC);and,MemorialHallat101SWalnutStreet(SiteD).All four

siteshavethepotentialforahotelandcomplementofadjacentfunctionspace.Presentedbeloware

thefourdowntownsitesrelevanttoeachother.

Site A, located at 15N Adams Street, consists of two large parcelswith ample square footage and

parking to allow for a hotel and convention center.However, some teardownand reconstruction is

anticipated.

SiteB,locatedatWashingtonStreetandW4thAvenue,alsoconsistsoftwobuildingswithadequate

spaceforahotelandconventioncenter,althoughthetwobuildingsareseparatedbyNWashington

Street;and,donotcurrentlyofferenoughparkingtosupportaconventioncenter.Itisanticipatedthat

theexistingstructuresonSiteBthatwouldhavetoberazedandrebuilt.

SiteC,locatedat17E2ndAvenue,isa12-storybuildingoriginallybuiltasaconventionhotelin1958,

althoughitwasnotutilizedthisway.ThissitecouldusetheadjacentFoxTheater’sunderutilizedfloors

as function space. In order to do this, it is anticipated that there would need to be walkways

constructedforaccess fromthetheater totheHotel.There isalsocurrentlynotparkingavailableat

thissite.



SiteD,locatedat101SWalnutStreet,consistsoftwobuildingswithspaceforahotelandconvention

center.MemorialHallcurrentlyoffersrentalsofitsfacilitiesandcouldbeusedasfunctionspace.Itis

anticipated that the other building at this sitewould have to be torn down and rebuilt. This site is

proximatetocurrentcityparkinglots,andhasadjacentbuildingsthatcouldpotentiallybeacquiredfor

additionalparking.

TherearecurrentlyfivesitesindicatedwithintheKansasStateFairgrounds.Thefairgroundscurrently

haveseveralvenuesavailableforrentals.SomeofthelargerbuildingsaretheSunflower/Meadowlark

Complex and the Pride of Kansas building. Presented below are the various sites relevant to the

Sunflower/MeadowlarkComplexandPrideofKansasbuilding.

TheMeadowlarkbuildingisconnectedtotheSunflowerComplexandoffersover40,000squarefeetof

clearspanexhibitspace.Itwasrenovatedin2003,hasconcretefloors,andoverheaddoorsatboththe

northandsouthside.TheSunflowerComplexconsistsoftwobuildingsoffering18,000squarefeetof

clear span exhibit space a piece. These buildings are connected to each other and theMeadowlark



Building; forming the Meadowlark/Sunflower Complex. These buildings are not set up to offer

breakoutroomswithinthelargefunctionspace.

ThePrideofKansasBuildingisadjacenttotheMeadowlarkbuildingandoffersover28,000squarefeet

of clear spanexhibit space. Thebuilding isnotequipped toofferbreakout roomswithin theexhibit

space.

The fairgrounds offer ample parking for both a hotel and convention center. Presented below are

picturesoftheMeadowlark,Sunflower,andPrideofKansasbuildings.

TheK-61CorridorislocatedontheeasternsideofHutchinson.Thiscorridoriscurrentlyhometomost

of theexisting lodgingproduct inHutchinson,alongwithseveral support services.Therearevarious

potentialsiteswithinthecorridor.Onthemapbelow,twospecificsitesareindicated,althoughempty

acreagethroughoutthecorridorcouldpotentiallybedeveloped.

InsidetheMeadowlarkBuilding InsideoneSunflowerBuilding

InsidePrideofKansasBuilding



TheJCPenneyattheHutchinsonMallwasrecentlyclosed,leavingalargevacantboxonthesouthern

endofthecomplex.Thisboxis50,000squarefeetandisavailableasconversiontoconventionspace.

Theproposed site of the hotelwould be adjacent to the closed JCPenney. It is anticipated that the

proposedHotelwouldbeconnectedtotheconventionspace.Thereisampleparkingintheexistinglot

to supportbothahotel and convention center. Below is amapof themall indicating theproposed

Hotelsite(shadedarea)andidentifyingtheareaanticipatedtobeusedasaconventioncenter(former

JCPenney).

ThereisacreageavailabledirectlybehindtheexistingBuffaloWildWings.ThisBWWsitesites inthe

northwestquadrantof K-61andE17thAvenue. Theparcel is alsobordered to thenorthbyE20th

Former

JCPenney



Avenue,andtheHutchinsonRegionalMedicalCenter.Therearecurrentlynoexistingstructuresonthe

site.

Access/Ingress/Egress

AllpotentialsiteswithinHutchinsoncanbeaccessedbyKansasstatehighwaysK-96,K-14,andK-61;

and,byU.S.Route50.K-96isa300-mile-longstatehighwayincentralandsouthernKansas.Itbegins

atU.S.Route54/U.S.Route400ineasternWichita.ItapproachesHutchinsonfromthesouth,whereis

joins with K-14. It then bypasses the city to the west and turns northwest, where it runs to the

Coloradostateline.K-96/K-14alsobrieflyjoinU.S.50andK-96inSouthHutchinson.FromK-96/K-14,

MainStreetandW4thAvenuecanbeaccessed,whichprovidedirecttransportationintoHutchinson.

U.S.Route50isamajoreast–westrouteoftheU.S.Highwaysystem,stretchingjustover3,000miles

fromSacramento,California, toOcean City,Maryland. U.S. 50 intersects several major interstates

along its route. InKansas,U.S.Route50 isamaineast–westhighwayservingthesouthwest,central

andnortheasternpartsofthestate.KansasCityistheonlymetropolitanareatherouteservesinthe

state.ItalsoservesGardenCity,DodgeCity,Hutchinson,NewtonandEmporia.U.S.Route50runsjust

southofHutchinsonwhereisjoinsK-96/K-14andK-61forabouttwomiles.

K-61issignedasanorth-southhighway,andrunsdiagonallyfromsouthwesttonortheast.Itoriginates

atU.S.Route54andU.S.Route400eastofPrattandendssouthofMcPhersonatInterstate135and

U.S.Route81. ItsharesashortconcurrencywithK-14andK-96nearSouthHutchinson.Afterbreakingto the northeast from U.S. Route 50, K-61 passes through the east side ofHutchinson(Where it is

signed locally as theKen Kennedy Freeway). Also after breaking away fromU.S. Route 50, K-61 has

controlled access interchanges at Avenue A in Hutchinson, 56th Avenue in Hutchinson, and 85th

Avenue/MedoraRoadnorthofHutchinson.

The four sites indowntown Hutchinson are allwithin amile of one another. Theywill have similar

accessroutes.HeadingeastboundonU.S.Route50,travelerscanexittoMainStreetandheadnorth

intodowntownHutchinson;or,travelerscanexitnorthtoK-14/K-96,thenexiteasttoW4thAvenue,

whichleadstodowntown.HeadingwestboundonU.S.Route50,travelersmayexitnorthontoK-61,

then turnwestbound on E Avenue A, which leads to downtown Hutchinson; or, travelersmay exit

northontoYoderRoad,thenturnwestboundontoE4thAvenue,leadingtodowntown.Whenheading

southonK-61, travelerswillexitontowestboundE4thAvenueheading intodowntownHutchinson.

When heading south on K-14/K-96, travelers will exit eastbound ontoW 4th Avenue, leading into

downtownHutchinson.When travelingnorthonK-14/K-96, travelerswill continuenorthontoMain

StreetatthejunctionwithU.S.Route50,headingintodowntownHutchinson.Belowisamapofaccess

routestothedowntownsites.Eachdirectionisrepresentedbydifferentcoloredarrows.



All four sites will have accessible ingress and egress. This may differ depending on future parking

structuresor lots.The sitesarecurrentlyaccessible fromthe followingpoints: SiteA fromNAdams

Street andW1stAvenue; SiteB fromNWashingtonAvenueandW4thAvenue; SiteC fromE2nd

AvenueandNMainStreet;and,SiteDfromSWalnutStreet,EAvenueB,andEAvenueA.

The Kansas State Fairgrounds is accessible from various entry points. The twomain entrances are

located off W Poplar Street to the south, and State Fair Road to the north. The W Poplar Street

entranceisdirectlyaccessiblefromE20thAvenueviaNMainStreetandNPlumStreet.However,W

PoplarStreetrunsthelengthfromdowntownHutchinsontotheKansasStateFairgrounds,andcanbe

accessedthroughavarietyofroutes.TheentranceoffStateFairRoadisdirectlyaccessibleviaNPlum

Street to theeastandNMainStreet to thewest.FromeastboundU.S.Route50, travelersmayexit

northontoMain Street, theneast onto E 17thAvenue, thennorthonNPoplar Street, taking them

directlytothefairgroundentrance.EastboundtravelerscanalsoexitnorthontoK-14/K-96,exiteast

ontoW4thAvenue,andaccessNPoplarStreetviaNMainStreetandE17thAvenue.Fromwestbound

U.S.Route50,travelersmayexitnorthonYoderRoad,travelwestonE17thAvenue,thennorthonN

PoplarStreet.WestboundtravelerscanalsoexitnorthontoK-61,thenexitwestontoE11thAvenue,

andthennorthonNPoplarStreet.WhenusingsouthboundK-61,travelerswillexitwestontoE17th

AvenueandthennorthonNPoplarStreet.HeadingsouthonK-14/K-96,travelerswillexiteastontoW

4thAvenueandaccessNPoplarStreetviaNMainStreetandE17thAvenue.Belowisamapofaccess

routestotheKansasStateFairgrounds.Eachdirectionisrepresentedbydifferentcoloredarrows.



Itisanticipatedthatthevarioussiteswithinthefairgroundswillhaveingressandegressfromseveral

points,astherearemultipleroadwaysthatrunthroughthefairgrounds.

TheK-61CorridorisdirectlyaccessiblefromU.S.Route50.WhenheadingeastboundonU.S.Route50,

travelerswillexitnorthontoK-61andcontinueuntilthesiteisreached.FromwestboundU.S.Route

50, travelers canexit northonto YoderRoad, then travelwest on E 11thAvenue to reachK-61; or,

travelerscandirectlyexitnorthontoK-61andcontinuetothesite.TravelersonsouthboundK-61will

simplycontinuetotheaccess/egress/ingresspoint.FromsouthboundK-14/K-96,travelerswillexiteast

ontoW4thAvenue,thenheadnorthonK-61andcontinueuntilthesiteisreached.Belowisamapof

accessroutestotheK-61corridor.Eachdirectionisrepresentedbydifferentcoloredarrows.



Visibility

ThedowntownHutchinsonsiteswouldnotbevisiblefromU.S.Route50,K-14/K-96,orK-61,themost

traveledaccessroutesintoHutchinson.SitesB,C,andDdooffervisibilityfromMainStreet,oneofthe

highlytraveledlocalroutesthroughtown.SitesAandDoffervisibilityfromAvenueA,anotherhighly

traveledroutethroughtown;and,EAvenueAistheaccesspointtodowntownfromK-61totheeast

oftown.

SiteAfromWAveA SiteBfromMainStandE4thAve



TheKansasStateFairgroundsalsooffersnovisibilityfromU.S.Route50,K-14/K-96,orK-61.However,

theFairgrounds,asawhole, isvisible fromMainStreet;although,someofthepotentialsiteswithin

thefairgroundswouldnotbevisiblefromMainStreet.

TheK-61Corridorsitesoffernovisibility fromU.S.Route50orK-14/K-96.However, theHutchinson

Mall sits directly on K-61 and would be highly visible for travelers heading either direction on the

highway.

TheBWWsite alsooffersdirect visibility forbothnorthand south travelers alongK-61. Though the

proposedHotelwillbedirectlybehindtheBuffaloWildWings,itwillstandtallerthanthefree-standing

SiteDfromMainStandEAveA

Sunflower/MeadowlarkfromMainStreet

FormerJCPennyandadjacentspacefromK-61

SiteCfromMainStandE2ndAve



restaurantandsurroundingbuildings,thusmakingitvisible.Thesitealsositsatthemajorintersection

ofK-61andE17thAvenue.

SurroundingLandUses

The area surrounding the downtown Hutchinson sites is used for restaurants, retail, and

entertainmentoptions,alongwithgovernmentbuildingsandresidentialareas.

TheKansas State Fairgrounds is surrounded nearly entirely by residential neighborhoods, although

MainStreetdoesoffersomerestaurantoptions.

The K-61 Corridor is surrounded by several dining and retail outlets, lodging, and is proximate to

entertainmentoptions.Thesurroundingareaalsoincludesresidentialareas,andindustrialareas.

ProximitytoDemandGeneratorsThesitesareproximatetoavarietyofcorporateandleisuredemandgenerators.

CorporatedemandgeneratorsintheareaincludeTakako,KFSA,DCI,KuhnKrause,Dillons,Hutchinson

RegionalMedicalCenter,Siemens,CargillSalt,ESSDACK,andtheHutchinsonAirport.

ThedowntownHutchinsonsitesareapproximatelyfourmilesfromallcorporatedemandgenerators

mentionedabove;withtheexceptionofDCIandKuhnKrause,whicharewithinamileofthesites;and,

CargillSaltwhichistwomilesfromthesites.

The Kansas State Fairgrounds is approximately two to four miles from all corporate demand

generatorsmentionedabove.

FromsouthboundK-61andE17thAve



TheK-61Corridorisapproximatelytwotofourmilesfromallcorporatedemandgeneratorsmentioned

above;withtheexceptionofHutchinsonRegionalMedicalCenter,whichisdirectlyonK-61withinthe

proposedsitearea;and,ESSDACKwhichislocatedwithintheHutchinsonMall.

Below is amapof the corporate demand generatorsmentioned above as relevant to theproposed

sites.

There are also numerous leisure demand generators throughout Hutchinson. These include various

sportsfacilities,leisureattractions,andrecreationalsites.HutchinsonSportsArena,GowansStadium,

Hobart-DetterField,andFunValleySportsComplexaresportsvenuesinHutchinsonwhichhostlarge

eventsthatbringdemandintothearea.

TheHutchinsonSportsArenaishometotheNJCAAD1BasketballTournament,bringing24teams,and

the NJCAA D1 Volleyball Tournament, bringing 16 teams. Gowans Stadium has hosted the KJCCC

RegionalTrack&FieldMeet,KansasStateHighSchoolClass3AChampionship,andNJCAAD1Track&

Field Championship. Hobart-Detter Field and Fun Valley Sports Complex have hosted several USSSA

events, as well as collegiate softball and baseball events. Also, Prairie Dunes Country Club in

HutchinsonisfrequentlyrankedamongthebestgolfcoursesintheU.S.andhashostedseveralUSGA

events,aswellascollegiatetournaments.

There are two major attractions in Hutchinson, the Cosmosphere, which brings in approximately

100,000visitorsannually; and, theStrataca/KSUndergroundSaltMuseum,whichhasapproximately

50,000visitorsannually.OtherattractionsintheHutchinsonareaincludeDillonNatureMuseum,Reno

CountyMuseum,andtheHutchinsonZoo.

The Kansas State Fairgrounds brings in approximately 500 events a year including SkillsUSA events,

horseshows,dogshows,andvariouslivestockshowsandsales.Thesenon-faireventsareestimatedto



have over 200,000 attendees. The Kansas State Fair attracts approximately 330,000 people to

Hutchinsoneveryyear.

The Hedrick Exotic Animal Farm is located approximately 11 miles northwest of Hutchinson and

features zebras, camels, ostriches, giraffes, kangaroos and other exotic creatures. Yoder, Kansas is

approximately11milessouthofHutchinsonandisthelargestAmishcommunityinKansas.Visitorscan

experiencewhat life is like for theAmish,andhow littlehas changed since the1800s.Visitors from

throughout the country come to purchase their handmadequilts, jams, smokedmeats,made-from-

scratchdessertsandcrafts.

Presentedbelowisamapofthe leisuredemandgenerators locatedwithinHutchinsonasrelativeto

thevariouspotentialsites.

ProximitytoSupportServices

Thedowntown Hutchinson sites are all locatedwithin onemile of each other, and offer numerous

supportservices.TheAntiqueDistrictdowntown ishometoseveralowner-operatedshops including

Armstrong’sAntiques,SaltCityCoin,Maxine’sDollMuseum&Giftshop,ToyDepot,andMemoryLane

boutiques.Mostof these shops featurehomedécor, collectibles, and furniture.Other retailoptions

includebookstores,boutiqueclothingstores,jewelrystores,thriftshops,andhomegoodstores.Some

oftheseretailers include:BluebirdBooks,Bookends,TesoriBoutique,BrickHouseBoutiques,Amelia

Beadelia’s, and Westphal Jewelers. Downtown is also home to the historic Fox Theater, Stage 9

theater,andtheHutchinsonArtCenter.TherearealsoseveraldiningoptionsindowntownHutchinson

rangingfromupscaledining,casualfamilyrestaurants,bar/lounge,andfastfood.Jillian’sisanupscale

Italian option; Anchor Inn, El Rodeo, and PiZaaco’s are some casual restaurants; Smedley’s Tavern,

Carl’s Bar, 21 Santa Fe are various bar/lounges; and fast food outlets include Burger King, Subway,



Wendy’s, Dairy Queen, KFC, McDonald’s, Sonic, Pizza Hut, Taco Bell, and Spangles. Most of these

variousretail,dining,andentertainmentoptionsarewithinwalkingdistanceofthesites.Therearealso

numerousparkswithinthedowntownareathatincreasethewalkabilityofthearea.

TheKansas State Fairgrounds is proximate to several fast fooddining options includingA&W, Long

John Silver’s, Braum’s Ice Cream, Burger King, Dairy Queen, Domino’s Pizza, HogWild BBQ, Arby’s,

JimmyJohn’s,Bogey’s,FirehouseSubs,Subway,TacoJohn’s,LittleCaesar’s,McDonald’s,PapaJohn’s,

andSubway.Othernon-fastfooddiningoptionsincludeCancunMexicanGrill,ElPotrillo,andPoloBar

& Grill. There are notmany retail options proximate to the fairgrounds. There is aWalgreen’s and

Dillon’sMarketplace,alongwithsomelocalspecialtyshops.

TheK-61Corridor ishometoseveral retail,dining,andentertainmentoptions.TheHutchinsonMall

itselfprovidesnumerousoptions.TheHutchinsonMallclothingretailersinclude:WhiteLily,Maurice’s,

FamousFootwear,Buckle,andTJMaxx.UltaBeautyandBathandBodyWorksofferbeautyproducts

withintheMall;andRegisSalon,Nails-n-Spa,andLianeMassageofferbeautyservices.Otherretailers,

immediately surrounding the Mall, include Dunham’s Sporting Goods, Hibbet Sports, Cindy Lou’s,

SharpnShiny,YourWirelessWorld,GameOn,HarborFreightTools,DollarTree,andHobbyLobby.The

Mall is also home to companies and businesses including ESSDACK, Almont Green, Ameritime, and

HutchinsonGymnasticsAcademy.B&BTheater,anine-screenmovietheaterofferingcurrentmoviesis

also in theMall.Other retailoutlets throughout theK-61Corridor includeKohl’s,HomeDepot,Wal-

Mart, Lowe’s, Petco, Verizon Wireless. Dining options include: Pizza Ranch, Chili’s, Subway,

McDonald’s, Freddy’s, Buffalo Wild Wings, Olive Garden, Panda Express, Qdoba, Starbucks, IHOP,

Applebee’s,Arby’s,ChinaStar,andAJ’sSportsBar&Grill.Entertainmentoptionsnearby includeThe

Alley,afull-servicebowlingalley;and,HutchPutt,aputt-puttcourse.

Conclusion

ThethreedifferentareasindicatedasthepotentialsitefortheproposedHotelandConventionCenter

areallwithinthreemilesofeachother.Thespecificsitesindicatedwithintheseareasarealsoclosein

proximity. The specific sites within the larger areas generally offer the same advantages and

disadvantages.TheKansasStateFairgroundssitesprovideampleparkingandexistingstructuresfora

convention center. However, there is no visibility frommain routes, and access is not convenient.

These sites are also further away from support services. The downtown sites offer walkability to

unique, local boutique stores and restaurants, and are easily accessed from main streets through

Hutchinson.Downtownlacksnecessaryexistingparkingspacetosupportaconventioncenter.Also,all

sites indicatedwithin downtownHutchinson are anticipated to require significant reconstruction to

existingstructuresinordertoachieveanupscalehotelandconventioncenter.TheK-61corridoroffers

the only visibility from amajor highway that runs through the state of Kansas. The corridor is also

hometonationally-brandedretailersandrestaurants,andallotherqualitylodgingoptionswithinthe

Hutchinsonmarket.TheBWWSiterequiresnewconstructionforbothahotelandconventioncenter,

aswellaspossiblepavedparkingtosupportthesestructures.ThesiteattheHutchinsonMallalready

has an existing structure for a convention center, as well as ample paved surface parking, and the

space to newly construct an upscale hotel. All sites are relatively proximate to both leisure and

corporatedemandgenerators.



AreaReview

Overview

Hutchinson is located on the Arkansas River in south-central Kansas approximately 45 minutes

northwestofWichita.ItisthelargestcityandcountyseatinRenoCounty.Ithashistoricallybeenthe

siteofnumeroussaltminesandisnicknamed“SaltCity.”Locally,thecityisknownas“Hutch.”

Population:PresentedinthefollowingtablearepopulationtrendsforHutchinson;RenoCounty;the

stateofKansasandthenation.

Hutchinsonisthe11thlargestcityinKansasandisthelargestcityinRenoCounty. Boththecityandcountyhavelostpopulationsince2010atthesamerate(3.1percent).

Employment:PresentedinthefollowingtableareemploymenttrendsHutchinson;RenoCounty;the

stateofKansasandthenation.

POPULATION

2000 2010 2017

PercentageChange

2000-2010 2010-2017

Hutchinson 40,787 42,080 40,772 3.2% -3.1%

RenoCounty 64,790 64,511 62,510 -0.4% -3.1%

Kansas 2,688,418 2,853,118 2,913,123 6.1% 2.1%

Nation* 281,421 308,758 325,719 9.7% 5.5%

*InThousandsSource:USCensusBureau



EMPLOYMENT

Year Hutchinson

Reno

County

Kansas

Nation*

2010 19,561 30,800 1,394,958 139,064

2011 19,467 30,664 1,394,082 139,869

2012 19,236 30,318 1,400,122 142,469

2013 18,969 29,930 1,407,217 143,929

2014 18,898 29,809 1,424,439 146,305

2015 18,701 29,515 1,428,557 148,833

2016 18,284 28,812 1,425,433 151,436

2017 18,319 28,867 1,424,724 153,337

2018 18,341 28,901 1,432,387 155,761

*InthousandsSource:BureauofLaborStatistics

Employmentintheareahasslowlydecreasedsince2010;cityemploymenthasdecreased6.3percent

since2010;thecounty6.2percentoverthesameperiod.Stateemploymentsince2010hasgrown2.7

percent; while national employment has grown 12.0 percent. However, the rate of decrease has

leveledoffforthecityandcounty;andthecountyshowedaveryslightincreasein2018.

Unemployment:PresentedinthefollowingtableareestimatedunemploymentratesforHutchinson;

RenoCounty;thestateofKansasandthenation.

UNEMPLOYMENTRATE

Year Hutchinson

Reno

County

Kansas

Nation

2010 7.1% 6.4% 7.1% 9.6%

2011 6.7% 6.0% 6.5% 8.9%

2012 6.1% 5.5% 5.7% 8.1%

2103 5.6% 5.3% 5.3% 7.4%

2014 4.7% 4.4% 4.5% 6.2%

2015 4.5% 4.3% 4.2% 5.3%

2016 4.7% 4.4% 4.0% 4.9%

2017 4.1% 3.9% 3.7% 4.4%

2018 4.2% 3.6% 3.4% 3.9%

Source:BureauofLaborStatistics

Accordingtohouseholdsurveydata,theunemploymentrateforHutchinsonhasfallenfromahighof

7.1percentin2010to4.2percentin2018.Thecityhastrendedwiththecounty,stateandnation.

Economy:Hutchinsonservesasaregionalhubforaprimarytrade,educationandhealthcareareathat

includes approximately 100,000 people. The city is home to a major medical facility, a community

college,acorrectionsfacilityandaregionalmall.



Arecentretailreportconcludesthatregioncreatesretailpurchasingpowerofover$1.1billionandhas

acurrentretaildemandforover300,000squarefeetofadditionalretail.

LargestEmployers:Thecity’slargestemployersarenotedinthefollowingtable.

Thetenlargestemployersintheareaareamixofhealthcare,education,andgovernmententities,as

wellasagrocerystore,afoodprocessingplant,aprisonandautility.

Healthcare:TheHutchinsonRegionalHealthcareSystemisanintegratedhealthcareorganizationwhich

servesawidegeographicalareainSouth-CentralKansas.TheHutchinsonRegionalMedicalCenterisa

not-for-profit,199-bedlicenseandaccreditedacutecarehospital.Thecampusalsoincludescentersfor

cancer treatment andmental health. The facility recently added 10,000-square-feet of space to the

emergencydepartment,bringingthetotalsquare footageupto16,000,andmorethandoublingthe

sizeofHRMC’spreviousemergencydepartment.Thefacilityisthearea’slargestemployer.

Higher Education:Hutchinson Community College has itsmain campus in Hutchinsonwith satellite

campuses inMcPhersonandNewton.The collegeoffersmore than70differentacademicprograms

leadingtoAssociatesinArtsandAssociatesinSciencedegreesand50technicalprograms.Itisoneof

thecity’slargestemployers.

MAJOREMPLOYERS

HUTCHINSONKANSAS

Employer Industry Employment

HutchinsonRegionalHealthcareSystem Healthcare 1,200

HutchinsonPublicSchools Education 878

HutchinsonCommunityCollege Education 877

HutchinsonClinic Healthcare 609

Dillons GroceryStore 548

TysonPreparedFoods FoodProcessing 548

HutchinsonCorrectionalFacility Prison 507

CityofHutchinson Government 430

RenoCounty Government 395

SiemensGamesaRenewableEnergy Utility 360

BuhlerPublicSchools Education 331

KrogerAccountingServices FinancialServices 319

Wal-MartSupercenter Retail 300

PortfolioRecoveryAssociates CollectionAgency 281

LowenCorporation SignsandGraphics 275

WesleyTowers RetirementCommunity 268

NickersonPublicSchools Education 245

CollinsBusCorporation Transportation 230

MennoniteFriendshipCommunities RetirementCommunity 225

KuhnKrause,Inc AgriculturalMachinery 208

Source:Hutchinson/RenoCountyChamberofCommerce;HREC



Tourism:Hutchinsonishosttoanumberofnationallyknownfacilities,eventsandfestivalsthatdraw

inmore than1.5millionvisitorseachyear suchas theKansasStateFair.The5,559-seatHutchinson

Sports Arena, on the campus of Hutchinson Community College, recently underwent a $30million

renovation. In 2016, theNJCAA signed a 25-year contract to hold the National Junior College Athletic

Association (NJCAA)Division IMen'sBasketballChampionshipat thearenauntil 2041.Thearenaalso

hosts theKansasStateHighSchoolActivitiesAssociation(KSHSAA)boysandgirls3Astatebasketball

tournaments.

Hutchinsonalsohasfirst-classmuseumssuchastheCosmosphereandStrataca.

Transportation:HutchinsonisstrategicallylocatedinSouthCentralKansasapproximately45minutes

fromWichitaandUSInterstate35withaccessviaK-61,K-96orUS-50.

CommercialairserviceisprovidedatWichitaDwight

D. Eisenhower National Airport. The facility is the

largest inKansasand isservedbysixairlines:Alaska

Airlines, Allegiant Air, American Airlines, Delta Air

Lines,SouthwestAirlines,andUnitedAirlines.

Summary

Hutchinson serves as a regional healthcare,

education and service hub for an area of about

100,000. Population and employment have both

decreasedsince2010.Employmentlosseshaveslowedforthecityandcounty,andthecountyshowed

aslightincreaseinemploymentfor2018.Unemploymentisdowntonearrecordlevels.Forecastscall

forstabilizationofeconomicindicators.



MacroLodgingOverview TheHistoricPerspective

TheperformanceoftheU.S.lodgingindustrytendstofollowcyclesthatbeginorendduetoasingle

majorevent,orseveral factorscomingtogetherwithinaveryshortperiodof time.Presented in the

followingchartsaretrendsinoccupancy,averageroomrateandRevPARfortheindustrynationwide.

U.S.LODGINGINDUSTRYTRENDS

Year Occupancy ADR RevPAR

2000 63.2% $84.66 $53.49

2001 59.7% $83.61 $49.91

2002 59.0% $82.53 $48.70

2003 59.3% $82.71 $49.03

2004 61.3% $86.18 $52.80

2005 63.0% $91.03 $57.35

2006 63.1% $97.82 $61.75

2007 62.8% $104.32 $65.52

2008 59.8% $107.34 $64.18

2009 54.5% $98.17 $53.51

2010 57.6% $98.06 $56.46

2011 59.9% $101.85 $61.82

2012 61.3% $106.25 $65.15

2013 62.2% $110.30 $68.58

2014 64.4% $115.32 $74.28

2015 65.6% $120.01 $78.67

2016 65.5% $123.97 $81.19

2017 65.9% $126.72 $83.57

2018 66.2% $129.83 $85.96

2019P 66.2% $132.81 $87.94

Sources:STR;HREC–HospitalityRealEstateCounselors

ThemostrecentfullcycleoftheU.S.lodgingindustryisdefinedbytheperiodbetweentheeventsof

September11, 2001, and theeconomic crisis that started inOctoberof 2008. TotalRevPARgrowth

between2002 and2007was an impressive 35percentover five years. Prior to that growthperiod,



Source: STR

RevPAR had declined approximately nine percent between 2000 and 2002. RevPAR decreased 18

percentbetween2007and2009,and2009establishedanewlowpointinindustryoccupancy.RevPAR

reachedanall-timehighin2018andisprojectedtocontinuegrowingin2019.

This previous cycle is clearly identified by pre- and post-2001 performance. The year 2000 was a

banner year for the industry. Then, 2001 started with a growing economic contraction in the first

quarter.This,inadditiontotheterroristattacksofSeptember11,2001,resultedinseveralpercentage

pointsdropinoccupancyfor2001ascomparedto2000.Atthattime, itwasoneofthe largestone-

yeardrops inoccupancy inthehistoryofthemodernU.S. lodging industry.Perhapsnotsurprisingly,

theaverageratedroppedaswell.Thegrowthandrecoveryphaseofthecycle lasteduntil2008.The

latestindustrycyclestartedatanewlowestablishedin2009.Thecurrentcyclehasshowngrowthin

occupancy,averagerate,andRevPAR,aswellassupplyanddemand.Whileoccupancyisprojectedto

remainflatin2018,averagerateandRevPARareprojectedtoincrease.

In 2008, significant supply growth coupled with national and international monetary turmoil and

rapidlydeterioratingglobalandU.S.economicfundamentalsresulted inthefirstsignificant industry-

widedeclinesince2001.RevPARdeclinedapproximatelytwopercentfortheyearwhichconsistedof

abouta4.8percentagepointdeclineinoccupancyandathreepercentincreaseinaveragerate.

50%

52%

54%

56%

58%

60%

62%

64%

66%

68%

$20

$40

$60

$80

$100

$120

$140

NATIONALOCCUPANCY,AVERAGERATE&REVPARTRENDS

2000-2019P

ADR RevPAR Occupancy

Source:SmithTravelResearch





63.0%

63.1%

62.8%

59.8%

54.5%

57.6%

59.9%

61.3%

62.2%

64.4%

65.6%

65.5%

65.9%

66.2%

66.2%

U.S.HOTELOCCUPANCY

2005-2019P

8.67.6

6.1

-2.0

-16.6

5.3

9.5

5.4 5.3

8.3

5.9

3.2 3.0 2.9 2.3

RevPARPERCENTCHANGE

2005-2019P

$91

$98

$104$107

$98 $98

$102

$106

$110

$115

$120

$124$127

$130$133

U.S.AVERAGEDAILYROOMRATE

2005-2019P




Thelargestsingleyeardeclineinoccupancy,averagerate,RevPAR,anddemandwaspostedin2009.

Thiswas the first full yearofoperationsince theonsetof the internationaleconomicandmonetary

crises.The scopeof thedeclineexceededallprior yearsof the recordedmodernhistoryof theU.S.

lodgingindustry.Thealmost17percentsingleyeardeclineinRevPARquicklyerasedseveralyearsof

realgrowth.Theeconomicturmoilalsocameatatimewhenanapproximatethreepercentincreasein

theavailablesupplyofguestroomsoccurred.Thiswaswellabovethe20-yearaverageofabouttwo

percentperyear.

The declines of 2009 were followed by a 7.7 percent increase in accommodated demand and 5.3

percentincreaseinRevPARin2010.Occupancyincreased5.3percentagepointswhiletheaveragerate

continuedtolaginflation.The8.2percentRevPARgainin2011wassignificantlyabovethegainseenin

2010, and additional confirmation of the continued recovery of the industry. RevPAR increased 6.8

percent in 2012. RevPAR increased by 8.3 percent in 2014 due to strong economic growth, which

boostedconsumerspending.

Despite a year thatwasmarked bymacroeconomic uncertainty, and resulting shaky consumer and

businessconfidence,hotels intheU.S.ended2011onastrongnote.Lodgingperformanceexceeded

expectations in the fourth quarter, in part due to a short-term uptick in economic activity. Hotels

across the spectrum of price segments posted occupancy and average daily rate gains in 2011

reflecting the breadth of the recovery.Overall, hotel occupancy in 2011 recovered to 59.9 percent,

comparabletoitsten-yearaverageof60percent.

TheU.S.hotelindustryreportedpositiveyear-over-yearresultsinthethreekeyperformancemetrics

during 2018. Average rate reached a new high at $129.83 for 2018, a 2.4 percent gain from 2017.

Occupancywent up 0.5 percent to 66.2 percent. As a result, the industry showed positive RevPAR

growthin2018withanincreaseof2.9percentto$85.96.RevPARgrowthwasjustbelowthe30-year

U.S. average (3.3 percent). According to STR, the period from2010 to 2018 sawdemandoutpacing

supply.Thistrend isprojectedtochange inthecomingyears,anda1.9percentsupplyanddemand

growthisanticipatedfor2019.

TOTALU.S.PIPELINECHAINSCALESEGMENT

ACTIVEDEVELOPMENTPIPELINE

AUGUST2017COMPAREDTOAUGUST2016

InConstruction UnderContract

Chain Total

Rooms

Aug-17 Total

Rooms

Aug-17

Scale Change Change

Luxury 8,928 46.4% 14,944 24.9%

UpperUpscale 26,391 27.3% 58,099 19.3%

Upscale 61,258 6.0% 163,478 5.9%

UpperMidscale 63,021 14.0% 193,239 6.9%

Midscale 9,881 47.4% 59,205 44.8%

Economy 2,498 68.6% 11,400 28.9%

Unaffiliated 20,155 -8.9% 89,715 -7.4%

Total 192,132 12.9% 590,080 8.8%

Source:STR



For2019,STRandTourismEconomicsprojectstheU.S.hotelindustrywillmaintainaflatoccupancyat

66.2 percent occupancy; a 2.3 percent increase in average daily rate (ADR) to $132.81; and, a 2.3

percentliftinrevenueperavailableroom(RevPAR)to$87.94.RevPARgrewatleastthreepercentfor

eachyearfrom2010to2018.

SupplyGrowth

The29-yearaveragechange innet supply for theU.S.hotel industry is twopercent.Net supplyhas

beenbelowtwopercentsince2009whenitregisteredthemostrecenthighof2.8percent.Thishas

been the longest period of below average supply since Smith Travel Research began compiling

statistics in 1987. The previous streak was six years from 2002 to 2007. Following a 1.6 percent

increasein2016andatwopercent increasein2017netsupply isprojectedto increaseanothertwo

percentin2018anddeclineslightlyto1.9percentin2019.

PresentedinthefollowingtableisasummaryoflodgingsupplygrowthbychainscaleinAugust2017

ascomparedtoAugust2016.

ThetotalU.S.hoteldevelopmentpipeline,asofAugust2017,iscomprisedofatotalof782,212rooms.

This represents a 12.9 percent increase in the number of rooms In Construction as comparedwith

August 2016; and an 8.8 percent increase in rooms Under Contract. Under Contract data includes

projectsintheInConstruction,FinalPlanningandPlanningstagesbutdoesnotincludeprojectsinthe

Unconfirmedstage.AmongtheChainScalesegments,UpperMidscaleaccountedforthemostrooms

In Construction followed by Upscale. The Economy segment reported the largest year-over-year

percentage increase inrooms InConstructionwith68.6percent; theMidscalesegmentreportedthe

largestpercentageincreaseinroomsUnderContractwith44.8percent.Overalltheincreaseinactivity

spansacrosstheboard.EverysegmentoutsideofUnaffiliatedat-7.4percentreportedapositiveliftin

UnderContractpipelinesupply.

Conclusion

Theindustryfundamentalsareanticipatedtoremainfavorablelong-term.Realrategainsareprojected

tocontinueandRevPARgrowthisprojectedtoremainabovetwopercent.Thetimingimplicationsof

thecurrent industrycyclesuggest thatenteringthemarketduringthisperiodofcontinuedrecovery

andnewgrowthcouldcreateafavorableeconomicbenefitlong-term.Theintroductionofpotentially

significant levels of new supply is projected to eventuallymove sector occupancies towards historic

averages.



SupplyA competitive set of six hotels with 434 total guest rooms was considered in this analysis. These

properties are all located within the trade area and are of the type, brand, quality, and affiliation

consideredcompetitivewiththepotentialdevelopment.Thesummaryofthesehotelsispresentedin

thefollowingtable.

COMPETITIVESET

HUTCHINSON,KANSAS

Property

Year

Opened

Available

Rooms

Super8

1981

63

ComfortInn&Suites

1997

69

DaysInn

1999

67

HamptonInn

2002

70

FairfieldInn&Suites

2012

89

HolidayInnExpress

2015

76

Total 434

Sources:STR;HREC-HospitalityRealEstateCounselors

This competitive set was estimated to have completed 2018 with 59 percent occupancy at a $95

averageroomrate.Asummaryofthehistoricoccupancyandaveragerateforthesesamehotelssince

2013appearsinthechartbelow.

Asummaryoverviewofthecompetitivesetfollowsbytheorder inwhichthepropertyopenedfrom

oldesttonewest.

COMPETITIVESET

HISTORICPERFORMANCE

Average

Year Occupancy Rate RevPAR

2013 67% $91 $61

2014 66% $91 $60

2015 63% $96 $61

2016 59% $92 $54

2017 58% $95 $55

2018 59% $95 $56




Super 8: This 63-room hotel opened in 1981 and is

located across from the Hutchinson Mall. Room

amenities include freeWi-Fi, Direct TV, and a coffee

maker.Thehotelhasabusinesscenter,outdoorpool,

guest laundry services, and complimentary SuperHot

breakfast.

ComfortInn&Suites:This69-roomhotelopened

in1997andislocatedacrossfromtheHutchinson

Mall. The hotel offers free hot breakfast and a

complimentary manager’s reception Monday

through Thursday evening. Other amenities

include free Wi-Fi, fitness center, heated indoor

pool and whirlpool, and business center. Room

amenitiesincludecoffeemaker,mini-refrigerator,

andmicrowave.

DaysInn:This67-roomhotelopenedin1999andis

also located across from the Hutchinson Mall. The

hotel offers free breakfast, complimentary Wi-Fi,

outdoorpoolandhottub,andfitnesscenter.Room

amenities include a microwave, mini-refrigerator,

andcoffeemaker.



HamptonInn:The70-roomHamptonInnopened

in 2002 and is located directly south of the

HutchinsonMall. It is the only Hilton product in

the competitive set. The hotel offers free hot

breakfast, complimentary Wi-Fi, fitness center,

business center, and an indoor pool. Room

amenities include microwave, mini-refrigerator,

andcoffeemaker.

FairfieldInn&Suites:The89-roomFairfieldInn&

Suites opened in 2012, and is the only Marriott

productinthecompetitiveset.Thehotelislocated

across from the Hutchinson Mall. The property

offers free hot breakfast, complimentary Wi-Fi,

fitness room, business center, indoor pool and

whirlpool, and a 1,200square footmeeting room.

Room amenities include a microwave, mini-

refrigerator,andcoffeemaker.

Holiday Inn Express: This 76-room property

opened in 2015, and is the newest hotel in the

competitive set. The Holiday Inn is located

directly south of theHutchinsonMall. The hotel

featuresfreehotbreakfast,complimentaryWi-Fi,

business center, fitness center, heated indoor

pool and whirlpool, and an 800 square foot

meeting room. Room amenities include a

microwave,mini-refrigerator,andcoffeemaker.

SupplyAdditions

Therearenootherhotelspresentlyunder construction in themarket. Localdevelopersandcurrent

hotel owners have, at different times, expressed an interest in possibly developing various lodging

productsinHutchinson.NoformalplanshavebeenrecentlysubmittedtotheCityforapproval.There

havebeendiscussionsofotherprojects;includingasmall,boutiquehotelindowntownHutchinson.



OtherSupply

ThereareotherhotelsintheHutchinsonmarketthatarenotconsidereddirectlycompetitivewiththe

subjectHotel andConventionCenterdue toquality, size,or location.A summaryoverviewof these

propertiesappearsbelow.

Atrium Hotel and Conference Center: The

Atrium Hotel and Conference Center was

built in 1972 and has 215 guest rooms,

making it the largesthotel inHutchinson. It

is located directly across from the

Hutchinson Mall on K-61. The hotel and

attachedconferencecenteroffersatotalof

35,000 square feet of meeting space. The

hotel features a pool and hot tub and free

Wi-Fi.

Red Coach Inn & Suites: The Red Coach Inn

opened in 1985 and has 40 rooms. The hotel is

locateddirectlyacrossfromtheHamptonInnon

K-61.Amenities include: freebreakfast, freeWi-

Fi, and microwaves and refrigerators in guest

rooms.

Sunflower Inn: The Sunflower Inn, opened in

1985,islocatedontheeastedgeofdowntown

Hutchinsonandhas47guestrooms.Eachguest

roomisfurnishedwitharefrigerator,oversized

work desk and a tub/shower combination in

the bathroom. Free Wireless Internet Access,

microwave, fax service, non-smoking rooms

and guest laundry facilities are also available.



BudgetHostInn:LocatedindowntownHutchinson,the

Budget Host Inn opened in 1970 and has 97 rooms.

Amenitiesincludefreebreakfast,freeWi-Fiinthelobby,

andmicrowaves and refrigerators in guest rooms. The

propertyalsohasonoutdoorpool.

Rodeway Inn: Located in South Hutchinson,

approximatelyfivemilessouthofHutchinson,theformer

Quality Inn opened in 1985 with 95 rooms. The hotel

offers free Wi-Fi and microwaves and refrigerators in

everyroom.

Conclusion

The competitive set includes only oneMarriott product, the Fairfield Inn & Suites; and one Hilton

product, theHampton Inn. The subjectHotel is anticipated tobe a superior productwith regard to

amenitiesandservices,anditwillbethenewestfull-servicehotelwithintheHutchinsonmarket.

Presentedbelowisamapofthecompetitivesetasrelativetomultiplesitesunderconsideration.



Demand

TheCompetitiveSetPresentedinthefollowingtableisthesummaryofhistoricgrowthinaccommodateddemandamong

thecompetitiveset.

COMPETITIVESET

HISTORICSUPPLY&DEMANDTRENDS

Supply Demand

Year Amount Change Amount Change Occupancy

2013 358 - 240 - 67%

2014 358 0% 238 -1% 66%

2015 421 18% 265 12% 63%

2016 434 3% 255 -4% 59%

2017 434 0% 253 -1% 58%

2018 434 0% 257 2% 59%

Sources:SmithTravelResearch;HREC-HospitalityRealEstateCounselorsTheapproximatecompositionofaccommodateddemandamong thecompetitiveset ispresented in

thefollowingtable.

Group demand is made up of both corporate and leisure travelers. Most properties reported high

corporatedemandduringtheweekandhighleisuredemandontheweekends.Theyalsoreportedan

increaseinleisuredemandinthespringandsummermonths.

CorporateTransientDemand:Thecorporatetransientdemandmakesupapproximately40percentof

the demand in the expandedmarket area. Customers include both traditional corporate individuals

traveling to the area on a corporate expense account, as well as individuals visiting themarket to

conductbusinessrelatedtoothersegmentsoftheeconomyincludingretail,development,insurance,

and medical, or to multiple corporate accounts during one trip to the region. The competitive set

COMPETITIVESET

ESTIMATEDDEMANDMIX

CorporateTransient 40%

Group 20%

Leisure 40%

Total 100%

Source:HREC–HospitalityRealEstateCounselors



servesabroadgeographicareabecauseofthegeneralconveniencetodowntownandtheexpanded

market area. There are numerous companies located throughout the sector that drive demand.

Commentsandinsightsfrommanyofthesecompaniesdirectlyappearinthefollowingsectionofthis

report.Therearedifferentareasoftheexpandedmarketthatareanticipatedtodrivedemand.

GroupDemand:Thissegmentiscomprisedofleisureeventsorcorporategroupscomingtothearea.

For the competitive set, group business is estimated tomake up approximately 20 percent of total

demand. Leisure group business is comprised of groups meeting for social purposes and includes

gatheringssuchasreunions,weddings,amateurathleticsportingevents,andothersocialfunctions.

Groupdemandhasalsobeendrivenby largecorporateconventions,conferences,andmeetingsthat

takeplaceinHutchinsonduetoitscentrallocationwithinthestateofKansas.Thefrequencyofthese

eventshasrapidlydeclined inrecentyearsduetotheconditionofthecurrenthotelandconference

center.Adetailed lookatothermeetingfacilitiesthroughoutthestate,andpotentialgroupdemand

forHutchinsonappearslaterinthisreport.

Individual Leisure: Individuals traveling for pleasure, recreation or other non-business reasons are

estimated to comprise about 40 percent of the total accommodated demand among the expanded

competitiveset.Thisdemandisheaviestontheweekends,duringthespringandsummermonths,and

whentherearelargeeventsinthearea.

LatentDemand: Latent demand is demand attracted and accommodated in themarket areamost

oftenbyvirtueofanewproduct,brandorpriceposition.Thedevelopmentofthesubjectfull-service

HotelandConventionCenterisprojectedtoattractandaccommodatecorporateandgroupdemand,

as well as leisure customers who otherwise might not have been accommodated among the

competitivesetofhotels.This includessomeguestswhomaystayorextendastayasaresultofan

enhancedamenitypackage.Latentdemandalsoconsiderscustomerswhotrade-uporareotherwise

accommodated among the competitive set, but previously may have stayed among hotels located

outsideofthecompetitiveset.

DeterredDemand:Demandthatisturnedawayfromthemarketdueprimarilytolackofcapacityis

referred to as deterred demand. The increase of accommodated demand is often attributed to the

captureofadditionaldemandduringpeakperiodsbecauseoftheavailabilityofnewlodgingproduct

and competitive room rates. The subject Hotel and Convention Center will benefit from deterred

demandofthesurroundinglodgingmarket.Theadditionofnewsupplyenablesthemarkettocapture

moreofthisdemandthatwouldotherwisebeturnedawayfromthemarket.

SeasonalFluctuations

Presentedinthefollowingchartisasummaryofthesixyearaveragerate,occupancyandRevPARby

monthfortheexpandedcompetitivesetfortheperiodendedDecember2018.



ThemonthswiththehighestoccupanciesareApril,June,andSeptemberwithoccupancyratesinthe

high-sixtiestolow-seventies.OccupancyistypicallyatthelowestfromNovembertoFebruary,ranging

from mid-forties to mid-fifties. Average rate remains virtually consistent throughout the off and

shouldermonths,rangingfromhigh-$80stolow-$90s,butpeakinginMarchandSeptember$98and

$112respectively.

Thereareseveralevents inHutchinson throughout theyear thatbringdemand into thearea.Youth

sportsareamajordemanddriverinthearea,aswellaseventsatthefairgrounds.Youthandcollegiate

baseball,softball,andsoccercontributetotheoverallseasonalityofthemarket.Typicallybaseballand

softball season runs from April through October, and brings several tournaments into the area of

varyingsizes.SpringBreakandsummervacationalsobringmore leisuredemandintothearea.Both

theCosmosphereandStratacaMinereportamuchhighervolumeofvisitorsduringtheseperiods.

Off-season: The off-season is November through February. Occupancy and average rate are lowest

during this period, but there are still some events that bring demand into the area. TheNJCAAD1

VolleyballchampionshiptakesplaceannuallyinNovember,andbringsin16teams.TheClass3AHigh

SchoolStateFootballChampionshipisannuallyheldinHutchinsoninNovember.TheNJCAASaltCity

Bowl,oneoftheNJCAAcollegiatebowlgames,isheldannuallyonthefirstSaturdayofDecember,at

GowansStadiuminHutchinson.TheKansasStateFairgroundshoststheKansasBeefExpoinDecember

andMacDon’s trainingclinicannually in January.TheKansasBeefExpo isanticipated tobringabout

1,200peopleneedingabout300hotelrooms.TheMacDontrainingclinicbringsabout150people in

fromCanadaneedingapproximately60rooms.TheStrataca5KMineRuntakesplaceinFebruaryand

hasapproximately400participantsrepresentingover20states.

Shoulderseason:ShouldermonthsareMarch,May,July,August,andOctober.Occupancyratesduring

thesemonthsareinthemid-sixties,andratesarelowtomid-$90s.Averagerateisat$98inMarchdue

to the NJCAA D1 Basketball Championship. This tournament sells out the Hutchinsonmarket, with

45%

55%

65%

75%

$40

$50

$60

$70

$80

$90

$100

$110

SEASONALDEMANDPATTERNS

ADR RevPar Occupancy%




overflow going to neighboring areas. Theweek-long, single-elimination tournament hosts 24 teams

withabout20peoplecominginperteam.Therearealsofamiliesandfansthatcomefortheevent.In

May,Gowans Stadiumhosts the KJCCCRegional Track& Field event and aNJCAAD1 Track& Field

event.TheCelebrateKansasHorseShowtakesplaceatthefairgroundsinMay,andbringsabout250

participants. In July andAugust the fairgroundshosts theRenoCounty Fair, theAll-AmericanSheep

Show,andHutchGrandNationalAutoRaces.ThesheepshowwasinHutchinsonin2014and2019,and

takesplaceoverfourdays,andhasover1,000attendees.HutchNationalsisatwodayeventwithover

4,000attendees.TheBrandenbergToyShowtakesplaceat the fairgroundsevery July,andbrings in

over500attendees.TheSaltyDogTriathalonhasover300participantsandtakesplaceannuallyevery

August. 60 percent of these participants come fromout of town for the one day event. The Pretty

Prairie Rodeo takes place over four days in July in Pretty Prairie, Kansas, just 30minutes south of

Hutchinson.Theeventattractsthousandsofpeopleannually.

PeakSeason:April,June,andSeptemberhavethehighestoccupancyratesandareconsidered“peak”

months.Someofthe largereventsatthefairgroundstakeplace inApril.TheMCCfundraisingevent

takes place over the course of two days and attracts over 8,000 people. The event raises over

$500,000. SkillsUSA is a three day event every April that brings in over 1,700 attendees from the

region.Theeventisgrowingeveryyear.TheSaltCityQuarterHorseshowandAppaloosaHorseShow

also take place in April. In June 2018, the fairgrounds hosted the National Junior Red Angus show,

which took place over the course of a week and had over 500 attendees. This event generated

approximately 1,000 roomnights.HCCFieldOps Training takesplace at the fairgroundsevery June.

This event has over 350 attendees fromover 90 cities across seven states. Smallville ComicCon is a

large,popularevent inHutchinson.Thisevent takesplaceover twodaysat the fairgroundsandhas

over5,000attendees.EverySeptember,theKansasStateFairbringsinover330,000peopleoverthe

courseoftendays.This is,byfar,thelargestevent intheregion. InSeptember,thefairgroundsalso

hosts the Kasnas Junior Livestock Show (KJLS). This annual, three day event brings in over 4,000

attendees.

Day-of-WeekDemandFluctuations

Presentedinthefollowingchartisasummaryofthethreeyearaveragerate,occupancyandRevPAR

byday-of-weekfortheexpandedcompetitivesetfortheperiodendedDecember2018.



Occupancy ishighestonTuesdayandWednesdayat68percentand65percent respectively. Friday

and Saturday have occupancy rates at 63 and 61 percent respectively.Monday and Thursday show

occupancyinthehigh-fiftiesandSunday’soccupancyisinthehigh-thirties.AveragerateandRevPAR

are both highest on Tuesday andWednesday. This reflects composition of demand as being nearly

equalcorporateandleisure.

Conclusion

There are several large annual events bringing significant demand into Hutchinson. The addition of

qualityroomsisanticipatedtobringdemandbackintotheareathathaspreviouslybeenturnedaway

fromthemarketduetolackofproduct.


30%

40%

50%

60%

70%

$30

$45

$60

$75

$90

Sun Mon Tue Wed Thu Fri Sat

DAY-OF-WEEKDEMANDPATTERNS

ADR RevPAR Occupancy%



DemandGeneratorSurvey

Hutchinsonandthesurroundingareaare home to numerous demand generatorsinmanufacturing,

agriculture, technology, mining, and distribution sectors of commerce. The region provides an

attractive destination for the leisure market as well as commercial travelers. Lodging demand

includes managementpersonnel, trainees, consultants, project specialists, interviewees,customers,

laborers,vendors,andotherstravelingtotheareaonbusiness.

Severalareademandgeneratorswerepreviouslyinterviewedtogainanunderstandingastothetype

andextentoftheirneedforlodging.Asurveyofthistypedoesnotprovideaquantitativebasisforan

analysis,butisusedtosupportorquestionsubjectivefeelingsorconclusionsregardingtheproposed

location,productandpriceposition. It isalsoimportanttorecognizethatsurveycommentsandself-

estimates of lodging demand are usuallymuch less than that which is accommodated among area

hotels. It is very difficult for any individual within a company to accurately gauge the amount of

demandgeneratedbycorporateguests.Companyestimatesaretypicallyfarlessthanactualdemand

generatedbyandbecauseofthecompany.Asummaryofselectedareademandgeneratorcomments,

thelistofcompaniessurveyed,andselectinterviewquestionsfollow.



DemandGeneratorInterview

ProposedHotel&ConventionCenter

Hutchinson,Kansas

March/April2019

NameofCompany:_______________________________________

PhoneNumber:__________________________________________

Receptionist: May I speakwith theperson responsible for securinghotelaccommodations foryour

company?

Notes:______________________________________________________________________________

Contact:Hello,mynameisJordanCanfieldandIamwithHREC–HospitalityRealEstateCounselorsin

Memphis,Tennessee.ThedevelopmentofanewHotelandConventionCenterisunderconsideration

for development in Hutchinson. There are several potential sites for the proposed Hotel and

ConventionCenterinvariousareasthroughoutHutchinson.Weareinterestedinwhatyouthink.Iwas

wondering if you could take just aminute to givemeyour thoughtson the current andanticipated

lodgingneedsofyourcompany?

Name:___________________________________Title:_____________________________________

Location:WhatdoyougenerallythinkaboutHutchinsonforapossiblehoteldevelopment?Ifyouare

familiarwithHutchinson,doyouthinkthedowntownarea,fairgrounds,ortheK-61corridorwouldbe

bettersuitedforyourclients’needs?

____________________________________________________________________________________

LodgingNeeds: Doyoueverneedtobookorrecommendahotel forguestsvisitingtheHutchinson

area?____________Ifso,howoften?_____________________________________________________

Howlongdotheseguestsstayonaverage?________________________________________________

Typesoflodgingguests:_________________________(Demandestimate______________________)

(management,meetings,training,customers)

Whichhotelsdoyoucurrentlyuse?Reason:(Price,Facilities,Service,CorporateDirective,Amenities,Location)

Rateyouarecurrentlypaying/comments:

_________________________________PFSCDALOther__________/______________________

_________________________________PFSCDALOther__________/______________________

_________________________________PFSCDALOther__________/______________________

Whatfacilitiesareusedinthesurroundingmarketarea?

____________________________________________________________________________________



PotentialUseofProposedHotel(s):Doyouthinkthefollowingpropertywouldgainconsiderationasa

preferredlodgingoption?

CourtyardbyMarriottorHiltonGardenInn

Approximately120guestrooms

• Complimentarybreakfast

• SundryShop

• Lobbylevelloungearea

• PossibleIndoorPoolandFitnessRoom

• BusinessCenter

• LaundryFacilities

• Wirelesscapabilitiesthroughout

• PossibleAreaShuttle

• LargeComplementofMeetingSpace

$115-$125

RackRange

AndwouldyousaythattherecommendationtousetheHotelwouldbemoreaccuratelydescribedas

low_____,average_____,orhigh____?Basis:___________________________________________

Whichbrandrecommendationwouldlikelygainyourconsideration?___________________________

Why?______________________________________________________________________________

ConventionCenterNeeds:Doyoueverneedtobookorrecommendalargespacetoholdmeetings,

conventions, or banquets for guests visiting the Hutchinson area?____________ If so, how often?

____________________________________________________________________________________

Howlongdotheseguestsstayonaverage?________________________________________________

Typesoflodgingguests:_________________________(Demandestimate______________________)

(management,meetings,training,customers)

Whichfacilitiesdoyoucurrentlyuse?Reason:(Price,Facilities,Service,CorporateDirective,Amenities,Location)

Rateyouarecurrentlypaying/comments:

_________________________________PFSCDALOther__________/______________________

_________________________________PFSCDALOther__________/______________________

_________________________________PFSCDALOther__________/______________________

Whatfacilitiesareusedinthesurroundingmarketarea?

ProductType

Suggested

Rate(s)

LikelihoodofUse

(Likely/NotLikely/Don’t

Know)&Why



____________________________________________________________________________________

CompanyProfile:Product/Service_______________________________________________________

TotalEmployment:______________________EmploymentatthisLocation:_____________________

Howmanylocationsinthisarea?_____Locations:__________________________________________

Isemployment____stable,orareyouexpectedto____increase/____decreaseoverthenextyear?

Doyouanticipateanyshort-orlong-termchangesinyourlodgingneeds?_______________________

IsthereanyoneelseinthecompanyyouwouldrecommendIspeakwith?_______________________

AdditionalComments:_________________________________________________________________



CommercialDemandGeneratorComments

ESSDACK

EducationalConsultant

Since 1982, ESSDACK has provided leadership, innovation, services,

products, and solutions to educators in Kansas, across the country, and

aroundtheworldwithafocusonpreparinglearnersfortheirfuture.They

offer professional learningopportunities for educators, coaching for

adults, anda host of servicesranging from group health insurance to

technologysupport.

PerceivedNeedforLodging/ConventionCenter:

• Hostsmultipleconferencesannually;includescareerexpos,workshops,fundraisers,etc.

• Annual career expo brings over 6,000 students to the area with approximately 200

vendors/exhibitors;takesplaceovertwodays

• Hostsatechnologyconferenceannuallywith325vendorsandexhibitors

• Hostsatleastthreeotherlargeconferencesthroughouttheyear

Hotels/FacilitiesUsed,RateandCriteria:

• UsesHutchinsonforannualcareerexpo;theMallhasemptyspacethatiscurrentlyutilizedfor

theactualexpo

o Doesnotwant tousecurrent conventioncenter in towndue to conditionof facilities

andequipment

• When people come in they are put at the Fairfield, Holiday Inn Express, or Hampton in

Hutchinson

o Bestqualityhotels;wouldn’twanttoputthemanywhereelse

• HoststechnologyconferenceinWichita-usetheHyatt

• HoststhreedifferentconferencesattheHiltoninManhattan,KS

LikelihoodofUseoftheproposedHotel/ConventionCenter:ExtremelyLikely

• Hutchinsoniscentrallylocatedandidealforconferences

• If therewasadecentplace toholda conventionor conference inHutchinson, someof their

eventswouldbemovedtoHutchinson,orHutchinsonwouldbeaddedtotherotation

BrandPreference,RateConsiderations,Amenities/Services:

• Notsurebrandmatters,qualityisthemostimportantthing

• Therateneedstobereasonable,hotelsinHutchinsonarenotexpensive,socannotbetoohigh

overcurrentrates

• Convention spacewould need to be large enough to hold 500 peoplewith the possibility of

seventoeightbreakoutrooms

• Pricingofrentingtheconventionspaceandpriceofusingequipmentisextremelyimportant



Location:

• Thecurrenthotelandconventioncenterishardtogettoandwouldprobablyneedtobetorn

downandrebuilt;plus,thereisnowalkability

• Thefairgroundscurrentlyrentouttheirfacilitiesforlargeevents,butthereisnopossibilityfor

breakoutrooms;theyare just largeopenspaces;therearealsonota lotofdiningoptionsor

entertainmentnearthefairgrounds

• Downtownisaninterestingidea;wouldbenicetoseegrowthdowntown;butparkingwouldbe

anissue

• Themall/K-61corridor iswhereeverything is; it iswhere thenewrestaurantsarecoming in;

excellenthighwaylocation;thereisjustnowalkability

AdditionalComments:

• GuestsliketheconferencecenterinWichitaduetoOldTown

KansasStateHighwayPatrol

LawEnforcement

The Kansas Highway Patrol is a law enforcement agency dedicated to

theService, Courtesy, and Protection,whichwas first establishedwhenthe agency was formed in 1937. The Patrol’s Kansas state troopers,

CapitolPoliceofficers,motorcarrierinspectors,andcivilianworkersare

devoted to improving the quality of life for citizens and travelers in

Kansas.TheycurrentlyprovidesecurityfortheKansasStateFair.


• ForthedurationoftheKansasStateFair,trooperscomefromalloverthestate

• 30nightsforalltendaysoftheFairareneeded

• Therehadbeentalks in thepastaboutusingHutchinsonforastatewideconvention;buthas

notheardanythingrecently


• AtriumHotelwasusedoneyearbutisnotusedanymore

o Conditionsofroomsweretoopoor

o Hadtoomanyproblems

• HolidayInnExpresswasusedoneyear

o Thepropertywastoosmall

• CurrentlyuseFairfield

o Offeradiscountedrate

o Allowsthemtosetupa“hospitalityroom”incurrentmeetingroom


• Definitelyneedsmoreroom-beenindyerstraightsthelastcoupleofyears




• Branddoesnotnecessarilymatter;justneedstobelargeenough

• Currently hasayeartoyearcontract-wouldneedtogothroughthestatebiddingprocess in

ordertogetcontractwiththenewhotel

Location:

• Doesnotthinkthefairgroundsisthebestlocation-toonoisy;notjustduringtheweekofthe

fair;therearealwayseventsthere

• K-61hasthehighwaytrafficandalltherestaurants;closetotheCosmosphere

AdditionalComments:

• McPherson has expressed interest in getting their business; but the discount is notworth it

onceyouconsiderdrivetimeandovertime

Dillons

Grocery-Retail,Manufacturing,Distribution

Dillonsis a grocerysupermarketchain based inHutchinson,

Kansas, and is a division of TheKroger Company. Other

banners under Dillon Stores Division include Gerbes

inMissouri,Baker'sinOmaha, Nebraska, and aFood 4

Lessstore inFremont, Nebraska. Dillons operates grocery

storesthroughoutKansaswithmajorinfluencesinandaroundWichita,TopekaandLawrence.

Dillonsoperates adry grocerywarehouse inGoddard,nearWichita, in addition to frozen foodsand

perishablewarehousesinHutchinson.AbakerymanufacturingplantanddairyarealsoinHutchinson.


• Constantlyhaspeoplecominginthroughouttheyear

o Somestayweeksatatime

o Othersstayonetothreenights

• Currentlyhasonelargemeetingayearwithabout300people

• Thereareseveralsmallermeetingsthroughouttheyearwithabout20to50people


• ThereisnodecentspacetoholdmeetingsinHutchinson;currentlygoesoutsideofthemarket

• HamptonandHolidayInnExpressinHutchinsonarecurrentlyused


• Wouldabsolutelyuseanewhotelandconventioncenterforallneeds


• Brandwasnotmentioned



• Currentlygetsacorporatediscountedrate;unsureofexactamount;but$130wouldprobably

betoohigh

• Bar/restaurantandfitnessroomwouldbenicetohaveasamenities

Location:

• Downtownwouldbeaninterestinglocation;wouldliketoseewhatcouldbedonethere

• K-61 by themall is suitable for all of their needs; location does not sway them oneway or

another

KuhnKrause

Agriculture,Manufacturing

Kuhn Krause offers specialized agricultural machineryto

meet customers’ specific needs. Kuhn Krause is aleading

innovator in agricultural and industrial equipment,

specializing inspreaders,mixers,haytoolsandtillagetools.

Kuhn Krause products are sold by farm equipment dealers

throughout the United States, Canada and many other

countries.


• Groupsfromoutofthecountryarecominginyearround

o Usuallyabouteightpeoplepergroup

• Hoststwoterritorymanagermeetingsayear

o Typically50to55people

• Ifgiventhechoice,wouldliketohostaneventinHutchinson

• Moreeventsareapossibilityiftherewasmorespace


• TheFairfieldInninHutchinsonidcurrentlyusedforpeoplecomingin

o Offeradiscountedrateof$80to$90

• Theplantiscurrentlyusedformeetings

o Itisconvenient;movingheavyequipmenttoadifferentspaceisn’tpractical


• Wouldmorethanlikelyuseanewhotelandconventioncenterforallneeds


• Brandwasnotmentioned

• Currentlygetsacorporatediscountedrateof$89to$90

• Amenitiesareimportant-Bar/restaurant;pool/whirlpool;fitnesscenter

Location:

• Doesnothaveapreference;Hutchinsonisnotaverybigplace



HutchinsonRegionalMedicalCenter

Hospital

Hutchinson Regional Medical Center is a not-for-profit, 199-

licensed bedmedical facility serving the health needs ofmore

than 65,000 residents of Hutchinson, Reno County and the

surroundingCentralKansasregion.


• Doesnothavealotofpeoplecominginthathaveaneedforahotel

• Physicianssometimescome,butnotoften

• Currentlyhoststhreeconferencesayearwithabout200people


• CurrentlyusetheAtriumfortheconferences

o Havebeendisappointedinthepast

o Hadproblemswithconnectivity

• Churchauditoriums,schools,andaspacedowntownarealsoused


• Satelliteconnectionsandinternetareimportant

• Inneedofgood,qualityfacilities


• Cateringisanimportantnecessity

Location:

• Utilizing the space by themall seems to be themost logical- there is existing space already

there

• Wouldlovetoseerevitalizationofdowntown;parkingisachallengethough

• Fairgroundsseemslikeleastlikelyscenario

StateAssociationComments

KansasAcademyofFamilyPhysicians(KAFP)

StateOrganization

The Kansas Academy of Family Physicians (KAFP)

represents 1,760 physicians and medical students

statewide. It is the only medical society in Kansas

devotedsolely toprimarycare.Today, familyphysiciansprovidemorecare for theunderservedand

ruralpopulationsthananyothermedicalspecialty.Familyphysiciansconductapproximatelyoneinfive

officevisits.



PerceivedNeedforaConventionCenter:

• Onemajortradeshowannually

o Threeandahalfdayevent

o Over200people;50exhibitors

FacilitiesUsedandCriteria:

• CurrentlyrotatebetweenWichita,KansasCity,andManhattan,KS

o Havebeendisappointedinthepast

o Hadproblemswithconnectivity

LikelihoodofUseoftheproposedConventionCenterandCriteria:Considerable

• Hutchinsonwouldbeconsiderediftherewasanew,highqualityhotelandconventioncenter

AdditionalComments:

• Theytendtospoiltheirmembers-wanthighqualityfacilities;spaceforeverythingwithinthe

hotel

• TheexistinghotelandconventioncenterinHutchinsonisnotappropriateforthem

KansasBankersAssociation(KBA)

Currently supports its member banks and bankers with leadership,

advocacyandeducationtobenefitthecommunitiesandcustomersthey

serve.


• Twomeetingsperyear

o About50to85people

o Onedayseminar


• CurrentlyuseAtriumHotelforconventionspaceonly

• FairfieldInnandHamptonareusedforanylodgingneeds

LikelihoodofUseoftheproposedConventionCenterandCriteria:ExtremelyLikely

• WouldabsolutelyusenewhotelandconventioncenterinHutchinson

• Wouldneedspaceforlargegeneralsessions,breakoutrooms,andcatering

• Itwouldbepossibletogetlarger,multi-dayeventswithbetterfacilities

AdditionalComments:

• Currentlynodiscountedratesofferedathotels

• Offthehighwaywouldbethebestlocation



KansasMotorCarriersAssociation(KMCA)

CharteredbytheStateofKansasasanon-profitcorporationin

1936, KMCA consistently has provided leadership that has

helpedthetransportationindustry improveitsservicestothe

publicandtoachieveitspresentstature.Withitsmembership

ofmorethan900companies, representingall typesofmotor

carrier operations and allied enterprises, KMCA is able to

speak with authority as the voice of the transportation

industry.


• Onelargeconventionperyear

o TakesplaceinSeptember

o Usually150people


• CurrentlyusesfacilitiesinWichita,Manhattan,Salina,andTopeka

• Thesecitiesareusedinarotation

• Wouldneedbreakoutrooms,A/Vequipment

LikelihoodofUseoftheproposedConventionCenterandCriteria:Considerable

• WouldconsiderusingHutchinsonifthepricewasright

AdditionalComments:

• Hostsa“SpouseEvent”;whileonespouseisattheconvention,theothersgoonagroupouting

together;therewouldneedtobeanattractionoropportunityforatournearby

KansasPressAssociation(KPA)

KansasPressAssociationwasorganizedin1863toserve,

improve and promote the newspaper industry, and to

protect therightsofa freepress.Today,KPAcontinues

its effortsbyprovidingnewspaperswithmarketingand

educational services, legal and technology hotlines,

legislativerepresentationanda forumfortheexchange

of ideas. KPA representsmore than 225 newspapers throughout the state, including 28 dailies, 168

non-dailies,26collegeandhighschoolnewspapersandsevenSpanishlanguagenewspapers.


• Onelargeeventperyear

o About300people

• Othersmallereventsthroughtheyear

o About20to40people




• HasusedTopekathelasttwoyears

• Needsageneralsessionroom,breakoutrooms-allwithaniceflow

• Needsahotelonsitewitharestaurant/bar

LikelihoodofUseoftheproposedConventionCenterandCriteria:Likely

• Hutchinsonwouldbeagreatspotgivenitscentrallocation

AdditionalComments:

• DowntownHutchinsonseemslikeaninterestinglocation-retailandbreweries

• K-61isnotreallyadrawanymore

• Brandofhotelisnotreallyafactor

PetroleumMarketersandConvenienceStore

AssociationofKansas (PMCA) PMCAprovidesservicesthatreflectcurrentbusiness

needs and represents the business interests of the

independent energy marketers and convenience

storeownersofKansas. PMCAprovide theirmembers tools tohelpmanage their energymarketing

andretailbusinesses.


• HoststwotothreemeetingsperyearinHutchinson

• Hasonelargeconventionperyear

o About125to150people

o Locationchangeseveryyear


• CurrentlyusesAtriumformeetingspace

• UsesHamptoninHutchinsonforanylodgingneeds

• Wouldneedbreakoutrooms

• Uses50hotelrooms

• Hotelneedstohaverestaurant/bar,fitnessroom,andfreeWi-Fi

LikelihoodofUseoftheproposedConventionCenterandCriteria:ExtremelyLikely

• WouldabsolutelyuseanewhotelandconventioncenterinHutchinson

AdditionalComments:

• Would need a discounted rate for hotel rooms and for food and beverage services at

conventioncenter



LeisureDemandGeneratorComments

KansasStateFairgrounds

Kansas State Fairgrounds hostsmany activities and events year-

round.Theseincludetractorpulls,livestockexhibitionsandshows,

equipment exhibitions, dog shows, festivals, and auctions. The

facility also provides numerous options for building rentals for

family reunions,weddings, andother corporateor social events.

Many of these events bring visitors from all over the region, as

wellasvendors.

PerceivedNeedforLodging:

• KansasStateFair

o Takesplaceover10daysinSeptember

o Hasover330,000inattendance

• Over500non-faireventsthroughouttheyear

o LivestockShows/Auctions-15to20throughouttheyear-varygreatlyinsize

- CattleShows-severalrecurringannually;somereturningeverycoupleofyears;

usuallyproduceroomnights—largestisKJLS,brings1,000sintotheareaneeding

roomsannually-lastweekendinSeptember

- KSRabbitBreeders-needabout50hotel rooms,over700 rabbitsentered into

show

- Goatsale-bringsover100people-approximately20rooms

- All-American Sheep Show- every July- 1,300 attendees over a 4-day event-

definitelyneedrooms

o HorseShows-24-30throughouttheyear

- WildWind-over100peoplefromfivedifferentstates-20rooms

- CelebrateKansas-250people-about60rooms

o SkillsUSA-eventgrowingeveryyear

- 1,700attendeesfromthroughouttheregion

o MCCFundraiser-occursannuallyovertwodays

- 8,000-10,000attendeesoverduration

- Raiseover$500,000usually

- 80hotelrooms(mayberoomnights,unclear)

o SmallvilleComicCon-everyJune

- Anywherefrom3,000to5,000attendees

- Eventisgrowingeveryyear

o MacDontrainingevent

- Bringinabout150peoplefromCanada

o HutchNationalsAutoRaces-endofJuly/beginningofAugust

- Twodayevent,over4,000attendees

o HCCannualfield-opstraining

- EveryJune



- Over350attendeesfromsevenstates

o Hostsnumeroussocialeventsincludingbanquets,birthdays,andweddings

HotelsUsed/Criteria:

• Doesnotbookroomsforpeople;wouldimaginetheyusetheFairfield,Hampton,orHolidayInn

LikelihoodofUseoftheProposedHotel:

• Assumeanewhotelandconventioncenterwouldgetused;especiallywithsomeofthelarge

eventsintown

AdditionalComments:

• Knowsof groupswanting tohold events at the fairgrounds, butwon’t due to lackof quality

roomsintown

• Obviouslywouldwantahotelatthefairgroundstoaccommodatedemandthere

• Ifthehotelwasnotatthefairgrounds,K-61makessense,everythingisalreadythere

HutchinsonRecreationCommission


• YouthSports

o Over20eventsspanningAprilthroughJuly

- These events bring over 400 teams

total

- Baseball/softball tournaments bring

anywherefrom20to45teamseach

- Thesetournamentsarestillinthebuild-upphase

o Fallandwinterbringbasketballandvolleyballteams

- Basketballtypicallybrings20to25teams

- Volleyballbringsabout40teams

o AnnualsoftballtournamentinOctoberbrings50teams

• KansasParksandRecreationhostslargeconventionannually

o Laststhreedays

o About500peopleattend

o IsinarotationwithvariouscitiesinKansas

o AnewhotelandconventioncenterwouldallowHutchinsontobeinrotation

• TheSaltyDogTriathlon

o SecondweekendinAugust

o Onedayevent

o About300participants;60percentfromoutoftown

• TheSaltCityHalfMarathon

o FirstweekendinOctober

o Onedayevent

o About200participants;60percentfromoutoftown



HotelsandFacilitiesUsed,Rate,andCriteria:

• CurrentlyusesFairfieldInnandHolidayInnExpressinHutchinson

o HolidayInninfullforabouthalfthetournaments

o Currentlythereisadealworkedoutwithhotels-umpiresintownfortournamentshave

compedrooms,inexchangeHutchRecpromotesthesehotelsasthe“tournament

hotels”

LikelihoodofUseoftheProposedHotel/ConventionCenter:ExtremelyLikely

• ExtremelylikelytousenewhotelinHutchinson

• Morequalityroomsareneeded

• Youthsportsteamsdon’treallyhaveaneedforlargeconventionspace

• ThenewconventioncenterwouldallowHutchinsontobeinrotationfortheKansasParksand

Recreationconvention

• Anewconventioncenterwouldalsoallowpossiblefutureopportunities

o Potentialforumpiretraining,coachingclinics;thesearenotcurrentlybeingaggressively

pursuedduetotheconditionofthecurrentconventioncenter

Location:

• K-61isagoodlocationfortheyouthsportsteams;butnowalkability

• Downtownofferswalkability,uniquerestaurantsandretail

NJCAA

TheNational Junior College Athletic Association(NJCAA) is the

governing association ofcommunity college,state collegeandjunior

collegeathletics throughout the United States. Currently the NJCAA

holds 24 separate regions across 24 states and is divided into 3

divisions. The NJCAA currently holds the state men’s basketball

championship and the state women’s volleyball tournament in

Hutchinsoneveryyear.


• Thebasketballtournamentcurrentlyhas24teams

o Therecanbeupto20peopleperteam

o Familiesandfansofteamsfloodthetown

o Tournamentissingleelimination,soonceyouloseyougohome

• Currentlythereisnoneedforaconventioncenter


• Everyhotelintownisused

o SometeamsmayevenendupinMcPhersonduetoconditionofroomsorcertainhotels

inthemarket




• AnewhotelinHutchinsonwoulddefinitelybeused


• Goodquality,cleanrooms

• Extraamenitiesarenice,butnotanecessityfortournamentneeds

• Fansmayliketohaveashuttleto/fromarenaduringthetournament

Location:

• Doesnotthinkthelocationofthehotelmatters

Cosmosphere

The Cosmosphere started as aplanetariumestablished on

theKansasStateFairgroundsin1962.The105,000-square-

foot facility houses the largest collection of Russian space

artifactsoutsideofMoscow,andacollectionofU.S. space

artifacts second only to theNational Air and Space

MuseuminWashington, D.C.. The Cosmosphere has four

venues: The Hall of Space Museum, The Justice

Planetarium, The Carey Digital Dome Theater, and Dr.

Goddard'sLab(anexplosivelivesciencepresentationonthehistoryofrocketry).TheCosmosphereis

theonlySmithsonianaffiliatemuseuminKansas.


• Has100,000+visitorsperyear

o Busiest during sports events in town, summer, spring break, and the week between

ChristmasandNewYear’sEve

• Hostsaneventonceayearwith200to400people


• Forsomespecialevents,aroomatthemuseumisrentedout

• Ifthereisaneedtorentspaceoutsidethemuseum,thefairisused

• UsuallyrecommendstheFairfieldtooutsidevisitors

• UsedtousetheHampton,butitistoodatednow

• WillsometimessuggestthatpeoplestayinWichita


• AnewhotelinHutchinsonwoulddefinitelybeused


• Nomentionofbrand

• Hotelwouldneedarestaurant/bar,shuttle,suites,androomservice



Location:

• ThinkstheK-61corridorwouldbethepreferredlocation,followedbydowntown,andthenthe

fairgrounds

Strataca Strataca, previously known as the Kansas Underground Salt

Museum,was built within one of theworld’s largest deposits

ofrock saltand provides the opportunity to go 650 feet

beneath theEarth’s surface. The museum is located in the

HutchinsonSaltCompanyminewhichbeganoperationin1923

as Carey Salt Company. There are 14 other salt mines in the

UnitedStates,butnoneofthemareaccessibletotourists.


• Has50,000+visitorsperyear

• Busiestduringsportseventsintown,summer,springbreak

• 5KMineRun-400peoplefrom21states

• BikeRide-170people,mostfromoutoftown;October


• UsuallysuggesthotelsthataremembersoftheCVB

• Stratacahasaroomthatcanhold250people,sononeedformeetingspace


• WouldsuggestitifitwereamemberoftheCVB


• Hotelwouldneedarestaurant/bar,shuttle,suites,androomservice

Location:

• Locationisn’tthatimportant;kindofontheoutskirtssoallvisitorswouldhavetodrivetothem

OtherDemandGeneratorConsiderations

PrairieDunesCountryClub:

• Currentlyhassomelodgingonsite;16bedrooms(28bedstotal);expandinginthenextcouple

ofyears

• Veryseasonal,mostlypeoplejustcomingtoplaygolf

• Hastournamentseverycoupleofyearsorso

• Currently not shopping for business, sometimes organizations come to them (PGA, NCAA,

USGA)

• HostingtheBig12Tournamentin2021



• Hutchinsoncouldhostlargereventswithmoreroomsavailable

Findings

Corporate demand generators interviewed are locatedwithin the immediatemarket ofHutchinson.

StateassociationsinterviewedarelocatedthroughoutthestateofKansas.Leisuredemandgenerators

are located within the Hutchinson market, or surrounding communities, varying by distance. Most

demanddriversareveryfamiliarwiththeproposedlocation.Collectiveresponsesappearfavorablefor

futureuseandutilizationoftheproposedHotel.

• Location:MostofthoseinterviewedindicatedthattheK-61corridor,bythemall,wouldbethe

preferredormostlogicallocationforanewhotelandconventioncenter.However,anumber

ofrespondersalsoindicatedthatlocationwasnotafactortothem.Downtownistypicallythe

secondpreferredlocation,withthefairgroundsnotbeinganoption.

• Likelihood of Use of Hotel: Nearly all those corporate and leisure demand generators

interviewedindicatedthatanewhotelinHutchinsonwouldbeextremelylikelytobeused.

• Likelihood of Use of Convention Center: A number of demand generators and state

associations interviewed indicated that they would likely use a new convention center in

Hutchinson. However, there was also some indication that Hutchinson would only be

consideredforuse,andpossiblybeaddedintoarotationforlargerevents.

Additional demand generators and state associations with potential for demand were surveyed;

however,electedtonotparticipate.Asummaryoftheseentitiesappearsinthetablebelow.

Company

Takako

KFSA

DCI

CargillSalt

Lowen

KSChiropracticAssociation

KSCropImprovementAssociation

KSDentalAssociation

KSFoundationforMedicalCare

KSIndependentOil&GasAssociation

KSHospitalAssociation

KSNursesAssociation

Kearney&Associates



MeetingSpaceConsiderations

RegionalVenuesThroughout the state of Kansas, there are several venues available to host everything from large

conventions to smaller meetings. Below are profiles of some of the facilities within two hours of

Hutchinson.

DodgeCity:LocatedapproximatelytwohourswestofHutchinson.

• UnitedWireless Arena: Built in 2011, UnitedWireless Arena hosts concerts, sporting events,

familyshows,motorsports,tradeshows,equestrianevents,icehockey,graduations,meetings

and conferences. Themain floor provides approximately 20,000+ square feet of trade show

space,allowingforadequatespaceforan‘allunderoneroof’approach.Thearenahasaseating

capacity of 4,300 for sporting events and 6,000 for stage events. United Wireless Arena is

adjacenttoBootHillCasino&ResortConferenceCenter.

• Boot Hill Casino & Resort Conference Center: Boot Hill Casino & Resort Conference Center,boasts7,000square feetofversatilecolumn freemeetingspaceand includesonsitecatering

services,seatingcapacityfrom10to700attendeemeetings,moveablewallsystemstocreate

one single large room or six smaller rooms, production/audiovisual equipment, IT support,

event coordination, and close proximity to area historical attractions, entertainment, and

lodging.



• WesternBankExpoCenter:WesternStateBankExpoCenterisamulti-purposefacilitywiththe

ability tohost awide rangeof events suchas trainingandeducation seminars, trade shows,

implement expos, farm & ranch shows, equipment and product demonstrations, private

parties, banquets and meetings, equestrian events, livestock sales and livestock shows. The

Expoalsoboastsa90,000squarefeetheatedconcreteexpofloor,anda76,500squarefeetdirt

floorwitharegulationarenaspace.Inaddition,thereis1,000,000squarefeetofoutdoorhard

surface that can be used as exhibit space or for parking. This facility offers a ground level

loading dock, available to load out semi-trucks, and all areas are equipped with electric

hookups.

• DodgeHouseHotel&ConventionCenter:This istheonlyconferencehotel inDodgeCity.TheDodge House Hotel & Convention Center ballroom is 4,300 square feet and can be split to

accommodate up to 300 people. The ballroom can be opened up into the dome area to

accommodate up to 700 people. Someother amenities include: saloon, lounge, group rates,

shuttleservice,andwesternflair.

• TheCivicCenter:TheCivicCenterisa15,000squarefeet,multi-functionalfacilitythathasbeen

hosttothousandsofactivitiesfromconcerts,basketballgames,foreigndignitaries,andmuch

more. The arena features 1,800 fixed seats and concert setting for 2,700. For banquets, the

civiccentercanseat800.Inaddition,therearetwomulti-purposeroomsandlockerroomsare

included for athletic events. Other amenities include; ground level loading docks, Peavy Hi-

Fidelitysoundsystem,fixedspotlights,lightingfortelevisingevents,andafullyequippedstage.



Manhattan:LocatedapproximatelytwohoursnortheastofHutchinson.

• ManhattanConferenceCenter:TheManhattanConferenceCenterisattachedtothe122-room

HiltonGardenInn.Theconferencecenteroffers12eventroomsspanning25,000squarefeet.

ThelargestspaceistheGrandBallroomatjustover14,500squarefeet;and,thesmallestspace

istheLittleApplewithjustover400squarefeet.Amenitiesinclude:built-insoundsystems,LCD

projectors and screens, on-site catering, high-speed Wi-Fi, and on on-site event planner.

Expansionoftheconferencecenterhasbeenapproved,butitappearsnotimelinehasbeenset.

HiltonGardenInnwithManhattanConferenceCentertotheleft



• FourPointsbySheraton:TheFourPointsbeSheratonoffersover26,000squarefeetofmeeting

space.Thelargestspaceisthe6,800squarefootRegencyBallroomthatcanaccommodateup

to850people.Thesmallestspaceisthe336squarefootexecutiveboardroom.

• Holiday Inn at The Campus:TheHoliday Inn is located directly across from the Kansas State

University.Thehoteloffersover9,000squarefeetofmeetingspace.The largestroomis just

over 5,700 square feet and can accommodateup to300people. The smallest room is 1,100

squarefeet.Thehotelofferson-sitecatering.

RenderingofManhattanConferenceCenterexpansion



• BluemontHotel-The112-roomhoteloffersover7,000square feetofevent space,allon the

fifthfloor.Thelargestspaceavailableisthemainballroom,TheHartford,at3,456squarefeet.

Thesmallestspaceistheboardroomat273squarefeet.Cateringisofferedfromavendoroffa

preferredcateringlist.

• Kansas State Student Union- As part of the campus of Kansas State University, the student

union offers a variety of spaces available for rent for social, academic, and professional

functions.Thespacescanberentedtothepublicorstudentsandfaculty.Facilitiesinclude:Two



auditoriums; six banquet rooms; a spacious ballroom that can be divided in a variety of

configurations;dozensofconferenceandmeetingrooms;anindoorcourtyard;and,numerous

lounges.Thestudentunionisalsoconnectedtothe90,000squarefoot,outdoor,BoscoStudent

Plaza.ThelargestroomistheGrandBallroomatover9,000squarefeet,andcanaccommodate

upto1,000people.Thesmallerboardroomsrangeinsizefrom160to575squarefeet.These

eventscanbecateredfromapreferredlistofcaterers.

GrandBallroom IndoorCourtyard

ForumHallAuditorium

Room206-350squarefeet



• Kansas State Alumni Center- The Kansas State Alumni Center houses the Alumni Association

offices,andoffersmeetingandbanquetfacilitiesfortheuniversityandcommunity.Thecenters

offers a 5,152 square foot Banquet Room that can hold up to 750 people; and, several

conferenceroomsthatrangeinsizefrom110toover1,500squarefeetandcanholdanywhere

fromfourto100people.

• FlintHillsDiscoveryCenter-TheFlintHillsDiscoveryCenterhasmorethan7,000squarefeetof

exhibitspace.Therearevariousrentaloptionswithinthediscoverycenter.Afull-buildingrental

can accommodate up to 500 guests and includes: the outdoor rooftop terrace, two private

dressing/meeting rooms, all exhibit spaces, children’s play area, entry atrium, and balconies.

Exhibit spacerentalcanalsoaccommodateupto500peopleand includes:allexhibit spaces,

children’splayarea,entryatrium,andsecondfloorbalcony.Twoprivaterooms,theBlueEarth

RoomandFlintHillsRoom,caneachaccommodateupto50peopleandaretypicallyusedfor

meetings, presentations, and numerous social functions. The uncovered rooftop terrace can

accommodateupto150people.

BoscoStudentPlaza

BanquetRoomTadtmanBoardroom-1,564 squarefeet



• HoustonStreetBallroom-TheHoustonStreetBallroomfeaturesa9,000squarefootballroom

withpermanentdancefloorandstage,avarietyofroomsetupsandampleparking.

Emporia:LocatedapproximatelytwohourseastofHutchinson.

• ESUMemorialUnion-LocatedonEmporiaStateUniversity’scampus,theESUMemorialUnion

offersover35,000square feetofmeeting space,andcanaccommodategroupsofup to800

comfortably. TheKSTC Colonial BallroomandWebbHallare surrounded by a constellation of

break-outmeetingrooms.



• AndersonHall-AndersonHallislocatedontheLyonCountyFairgroundsandhostsavarietyofevents. With 12,000 square-feet to use, common events would include large meetings or

receptions,tradeshows,and4Hclubevents.Recentrenovationsincludeanexecutivemeeting

roomandanewexpansivepatio.Seat750attablesandchairsor1,680intheatre-styleseating.

Hays:ApproximatelytwohoursnorthwestofHutchinson.

• FortHaysState-Offerstenmeetingroomsthatcanholdanywherefromtento500people.

• Hilton Garden Inn- A 96-room Hilton Garden Inn is currently under development, and is

anticipated to have approximately 8,500 square feet of convention space. The project is

expectedtobecompletedbylate2019.

MeadowlarkRoom–10people FortHaysBallroom-500people



JunctionCity:Locatedapproximatelyonehourandforty-fiveminutesnortheastofHutchinson.

• Geary County Convention Center- The Geary County Convention Center is connected to theCourtyard by Marriott in Junction City. The convention center offers approximately 15,500

square feetof functionspaceover13meeting rooms.The fullballroomoffers12,000square

feetofspaceandcanaccommodateupto1,200people.Thefullballroomcanalsobebroken

out into six separate rooms. The smallest space is theFlintHillsBoardroomwith290 square

feetandcanaccommodate12people.CateringisofferedthroughtheCourtyard.

GreatBend:LocatedapproximatelyonehourwestofHutchinson.

• GreatBendEventsCenter-OwnedandoperatedbytheCityofGreatBend,theeventscenterboastsover14,000squarefeetofmeetingspace.Itcanaccommodateupto1,200peoplefor

theultimate in banquet dining. It is also ideal for auctions, exhibits, anddances. The largest

spaceisjustover13,000squarefeetandcanholdupto1,300people.Thesmallestspaceis208

square feet and can accommodate 20 people. The events center is currently undergoing

renovations.

Salina:LocatedapproximatelyonehournorthofHutchinson.

• Tony’sPizzaEventsCenter-Thisnewlyrenovated,multi-purposecenter(arena,exhibitionhall&

meeting rooms) for sports events, concerts, meetings and conventions, workshops and

tradeshows, ballet and rodeo, family shows, banquets, concerts,wrestling andmotor sports,

andheadlinersandsportstournaments.Thevenueoffers45,000squarefeetoffunctionspace,

andcanholdover7,500people.



• HiltonGardenInn-Thehoteloffersover10,000squarefeetofconventionspace,comprisingof

six flexiblemeeting rooms and a grand ballroom,which can cater to eventswith up to 550

guests.On-sitecateringisprovided.



Wichita:LocatedapproximatelyanhoursouthofHutchinson.

• CenturyIIConventionCenter&HyattRegency-CenturyIIPerformingArts&ConventionCenter

boastsmorethan200,000squarefeetofexhibitionandmeetingspace.CenturyIIconnectsto

the303-roomHyattRegencyWichita.Thetwofacilitiescombinedhave28meetingroomsand

ballrooms.

o Atotalof195,500squarefeetofopenfloorspace

o Roomsrangeinsizefrom900to7,750squarefeet

o Openmainfloorspaceformorethan700booths

o 8-bayloadingdock

o In-houseelectricalandtelephoneservice

o Threeprofessionalstages

o On-siteparking

o In-house catering and concessions provided by Hyatt Regency Wichita or Premier

Catering:Foodservicecapabilitiesfortento3,500

TheConcertHallseats2,178people.

The Carl A. Bell, Jr. Convention Hall provides tiered seating with removable risers for both

presentations and exhibitions. The hall can seat 5,012 people for presentations or stage

productions. Remove all risers for 32,000 square feet of exhibit space.Open thewall to the

adjacentExhibitionHall,andyou’llhaveatotalof94,500squarefeetofexhibitspace.

The Exhibition Hall provides 45,000 square feet of exhibit or banquet space. There is an

additional 17,500 square feet on the mezzanine that can also be utilized. This provides

enoughspacefor2,000people.

BobBrownExpoHalloffers93,000squarefeetofexhibitspaceandadjoinsthe8,000square

footConnectingLobby.

CenturyII(right)andHyattRegency(left) ConcertHall



• DruryPlazaHotel:DruryPlazaHotel featuresover11,000 square feetofmeeting spaceover

five rooms. The LargeBallroom is the largest spacewith9,204 square feet, and the smallest

spaceisa408squarefootboardroom.Thehotelusesanoutsidecatererforevents. • WichitaMarriott:TheWichitaMarriotthasover26,000squarefeetofmeetingspaceover16

rooms, and the ability to have 14 breakout rooms. The largest space is the Kansas Grand

Ballroomwithover7,000squarefeet,andcanholdupto1,000people.Thesmallestspaceis

theExecutiveBoardroomwith480squarefeetandacapacityof12people.Thehotelofferson-

sitecatering.

Convention/Exhibition Hall ExpoHall



• DoubleTree:TheDoubleTreebyHiltonattheWichitaairport,offersover25,000squarefeetof

functionspace.ThelargestspaceistheEmeraldBallroom,whichcanaccommodateupto1,000

people.Therearethreesmallboardroomswith336squarefeetthatcanaccommodateupto

10people.Thehotelofferson-sitecatering.

PotentialMeetingSpaceDemand-HutchinsonSeveral local, regional, and statewide companies and organizations expressed interest in using the

Hutchinson market for various meetings, conferences, and conventions. Below is a table showing

possible different events in theHutchinsonmarket. The information below is a sample of potential

conventioncenteruse.

Most of the events above are in a rotationwith various other cities in Kansas. These cities include

Wichita,Topeka,Manhattan,andSalina.Mostcompaniesstatedtheywouldbeextremelylikelytouse

Hutchinsonaseitherthehostcityannuallyorinarotationbasisforevents.

Thetableonthefollowingpagereflectsadditionalpotentialconventioncenterdemand.Thischartwas

preparedbyVisitHutchandispresentedheretoprovideadditionalinsightintomarketdemand.

Company/Organization No.ofAttendees Liklihood/FrequencyofHutchUse MarketUsed OtherCommentsKRPA 500+ Likely/Every4-5years - 3-dayconvention

ESSDACK 300+ ExtremelyLikely/Annually Wichita Hastwootherconfererncesannually-useManhattan,KSKPA 300+ ExtremelyLikely Topeka Generalsessionandbreakoutroomsneedtoflowtogether

20-40 ExtremelyLikely Topeka VarioussmallereventsthroughouttheyearDillons 300+ ExtremelyLikely/Annually Wichita CurrentlyuseHyattinWichita;nodecentplaceinHutch

20-50 ExtremelyLikely/severaltimesannually WichitaCosmosphere 200-400 ExtremelyLikely/Annually Hutch UsesaroomatCosmoortheFair

HRMC 200+ ExtremelyLikely/Threetimesannually Hutch CurrentlyusesvariousplacesinHutch;needscateringKAFP 200+ Possible/inrotation Various 3.5dayevent;55exhibitorsKMCA 150+ Likely/Inrotationeveryfewyears Various Needsbreakoutrooms;pricehastoberightPMCA 125-150 Likely/Inrotationeveryfewyears Various needsbreakoutrooms;50hotelroomspernight

40-60 ExtremelyLikely/Annually Hutch 2-3meetingsannuallywith40-60peopleKBA 50-85 ExtremelyLikely/Twiceayear Hutch Generalsessions,breakouts,catering;largereventsareapossibility

Source:Subjectcompanies;HREC

ProposedHotel&ConventionCenter•Hutchinson,KansasPreparedfor:VisitHutch

HospitalityRealEstateCounselors Page78

Organization No.ofAttendees(Approx.) Event Month MarketUsed Approx.RoomNights HutchinsonUse Comments

KSAssociationofInsuranceAgents 600 Rural&SmallAgentsConference January Wichita 600-640 Hostedforfiveyears

KSEmergencyMedicalTechniciansAssociation 150-200 AnnualConference February-April Salina Hostedforatleast10years Monthchanges

SkillsUSAKansas 1,000 StateCompetition April Hutchinson 550-600 Hostedforpastfouryears Signedcontractthrough2023

KansasGroundwaterAssociation 250 AnnualConference January Mulvane Hostedforatleast12years

Gideon'sInternational-KansasChapter 450 AnnualConference Spring Hostedin2005,2012and2017 RotatesLocation

Mid-AmericaRegionalConventionofNarcoticsAnonymous 500-600 AnnualConference Spring Lawrence Hostedin2011and2016 RotatesLocation

KSSheriff'sAssociation 400-450 AnnualConference November DodgeCity Hostedin2007,2009,2011,2012,2013 95vendorslasttimeinHutch;Atriumsoldout,needoverflow

KSAssociationofChiefsofPolice 200-250 FallConferenceandTraining Fall Lawrence Hostedin2005,2009,and2011 Tradeshow&conference

KSDepartmentofLabor 500-600 KSHealth&SafetyConference Fall Wichita/Topeka 700-750 Neverhosted Won'tconsiderHutchinsonwithcurrenthotels;Willneedoverflowrooms

NAIAWrestlingChampionship 240athletes(thousandsoffans) NationalChampionship March Wichita 850(athletesonly) Bidon2020and2021 LostbidduetoAtriumquality

KansasBeefExpo 1,200 WinterExpo December Hutchinson 300 Hostedsince2018

KansasGrain&FeedAssociation 1,100 KSAgribusinessExpo Winter Wichita Neverhosted Largetradeshow

KSOrganizationofRecyclers 200 AnnualConference March Lindsborg Hostedin2010and2018 RotatesLocation

KSCriminalJusticeInformationSystem 150-200 AnnualConference June Topeka Hostedin2008,2010,2012,2014,2016 UsedtobeinrotationwithTopeka

AmericanMaine-AnjouAssociation 1,000 NationalJr.Show Summer DesMoines,IA 1,200 Hostedin2017forthefirsttime WantstoreturntoHutchinson;currentlyrotates

InternationalBrangusBreedersAssociation 500-600 NationalJr.Show Summer Texarkana 1,000 Hostedin2018forthefirsttime WantstoreturntoHutchinson;currentlyrotates

NJCAADIOutdoorTrack&FieldChampionship 750athletes NationalChampionship May Hobbs,NM 650-700 Hosted2009-2013and2015,2017 Willhostagainin2020

KSShrineBowl 600students(thousandsofspectators) FootballChampionship Summer DodgeCity 800-1,000 Hostingin2021 RotatesLocation

NJCAADIBasketballChampionship 350(teamsonly) BasketballChampionship March Hutchinson 1,200-1,300 Contractthrough2041 Hutchneedshotelroomstoreplacethelostbusiness

NJCAADIVolleyballChampionship 240(teamsonly) VolleyballChampionship November Hutchinson 500-600 Hosted2017-2019,contractedfor2021and2023 WillrotatewithWestPlains,MO

All-AmericanJr.SheepShow 1,300 NationalJr.Show July Hutchinson 550 Hostedin2014,willhostin2019 Rotatesaroundthecountry

NorthAmericanJr.RedAngus 600 NationalJr.Show Summer GrandIsland,NE 700 Hostedin2012,2013and2018 Rotatesaroundthecountry

NationalJr.LimousinShow 800 NationalJr.Show Summer Springfield,MO 1,200-1,300 Hostedin2010

DucksUnlimited 200 KansasStateConvention February Hostedfor9years LostbecauseofAtrium

KansasAmericanLegion 400-500 Mid-YearConference May Hutchinson Hostedin2014-2016,2018.Contracted2019-2021

KansasLivestockAssociation AnnualMeetingandExpo November Wichita Neverhosted

AssociationofPublicCommunicationOfficers KansasSpringConference April Mulvane Neverhosted

KansasVFW 250 AnnualConference June Hutchinson Hostedin2016.Contractedfor2019

KSCattlemen'sAssociation 100-150 AnnualConference Fall Newton Hostedin2011and2012 LostbecauseofAtrium

Source:Subjectcompanies;VisitHutch


HospitalityRealEstateCounselorsPage79 Page79

RecommendationItisrecommendedthattheproposedconventioncenterhaveatleast20,000squarefeet.Thereareatleastfiveeventswith1,000+attendeeswhowouldpotentiallyuseHutchinsonforanevent.Inadditionto these fiveevents, thereareeightpotentialeventswith500+attendees; sixwith300+attendees;over10eventswith200+attendees;andthreeeventswith100-150attendees.Therearealsoothersmaller events (less than 100 attendees) anticipated to take place annually in Hutchinson. It isproposedthattheconventioncenterhaveaspacelargeenoughforatradeshowwith1,000attendees,aswellasthecapabilityformultiplebreakoutrooms.



ProjectedPerformance

ProjectedRelationshipofSupplytoDemand

Thecompetitivesetfinished2018ata58percentoccupancyanda$95averagerate.Presentedinthefollowingtableistheprojectedoutlookforthecompetitiveset.

Theaverageroomrateisprojectedtocontinuetoimprovenear-termaslocalandnationaleconomicconditionsremainfavorable,demandgrowthcontinues,andanewhotelisdevelopedthatisprojectedtoachieveapremiumrate.Presentedasanexhibittothisreportisthehistoricandprojectedgrowthofsupplyanddemand.

ProjectedAverageRatePresentedinthefollowingtableistheprojectedaverageratefortheproposedHotel.

PROJECTEDPERFORMANCECOMPETITIVESET

Supply Demand Year Amount Change Amount Change Occupancy ADR2019 434 0% 260 1% 60% $962020 434 0% 267 2% 61% $972021 434 0% 271 2% 62% $992022 554 28% 316 17% 57% $1042023 554 0% 327 4% 59% $1072024 554 0% 332 2% 60% $1102025 554 0% 349 5% 63% $1122026 554 0% 360 3% 65% $115

Sources:SmithTravelResearch;HREC–HospitalityRealEstateCounselors

PROJECTEDAVERAGERATEPROPOSEDHOTEL&CONVENTIONCENTER

HUTCHINSON,KANSAS AverageRate

Year 2018Dollars Inflated*



Presentedbelowareaverageratecomparablesforthecompetitivesetandnationalbrandaverages,ascomparedtothesubjectHotelandConventionCenter.

ESTIMATED2018AVERAGERATECOMPARABLES

Estimated2018

Property/Brand AverageDalyRateCourtyardBrand $139HiltonGardenInnBrand $133HamptonInnBrand $124HolidayInnExpressBrand $114FairfieldInn&SuitesBrand(2017) $113HamptonInn $100-$110FairfieldInn&Suites $100-$110HolidayInnExpress $100-110ComfortInn&SuitesBrand(2017) $97ComfortInn&Suites $95-$105DaysInn $65-$75Super8 $45-$55Source:HREC-HospitalityRealEstateCounselors

PresentedinthefollowingtableisanInternetrateshopoftheexpandedcompetitiveset.

RATESHOP

HUTCHINSON,KANSAS

Property

Weekday6/11-6/13

Weekend6/14-6/16

Peak-Kansas

StateFairHolidayInnExpress

$158

$124

SoldOut

FairfieldInn&Suites

$152

$114

$497HamptonInn

$119

$104

$300

ComfortInn&Suites

$110

$108

SoldOutDaysInn

$64

$62

$200

Super8

$51

$62

$127Average $109 $96 $281

Sources:Kayak.com

2022 $120 $1322023 $120 $1362024 $120 $1392025 $120 $1432026 $120 $146

*Inflatedat2.5percentannuallySource:HREC–HospitalityRealEstateCounselors



The published rate positioning of these hotels appears appropriate for the various brands andconsistentwithexpectationsastotheannualaverageADR.

ProjectedOccupancyTheprojectedoccupancyfortheproposed120-roomHotelandConventionCenterispresentedinthefollowing table. The proposed Hotel and Convention Center is projected to achieve a start-upoccupancyinthelow-tomid-sixtiesandstabilizeinthelow-seventies.Theproperty isprojected to stabilizeat apremiumpenetration rateof roughly105 to110percent.Effectiveyieldmanagementandprojecttimingareprojectedtocreatethepotentialtoachievebothafasterramp-upandmajorstabilizedoccupancylevel.OthercompetitiveconsiderationsoftheproposedHotelandConventionCenterfollow.

• Location:ThelocationoftheproposedHotelandConventionCenter,recommendedalongtheK-61corridor,isprojectedtobeverycompetitiveshort-andlong-term.Itisreadilyconvenienttomostdemandgeneratorsandhasamplesupportservicesavailableincludingmanywithinareasonablewalkingdistanceorshortshuttleride.

• CompetitivePricePosition:TheproposedHotelandConventionCenterisprojectedtobeverycompetitively priced relative to other lodging options in the area. Major price-valueconsiderations, such as location, quality, scope of amenities and services, newness, and theoverall appeal of a nationally-affiliates brand contribute to a value perception among theconsumers. These factors in total are projected to create a superior value perception forcustomers at the subject Hotel and Convention Center and further support a premiumstabilizedpenetrationraterelativetotheoverallmarket.

• Marriott/HiltonBrandAffiliationandMembershipRewardsProgram:Thesubjectpropertywillbeaffiliatedwiththenationally-recognizedMarriottInternationalorHiltonWorldwide,andassuch, will participate in the Marriott Rewards or Hilton Honors program. This affiliation isprojected to support the penetration of the corporate and leisure demand throughout themarket. Frequent traveler programs have grown to become an important and competitive

PROJECTEDOCCUPANCYPROPOSEDHOTEL&CONVENTIONCENTERYear Occupancy2022 62%2023 64%2024 66%2025 70%2026 72%

Source:HREC–HospitalityRealEstateCounselors



attributeparticularlyamongcorporatetravelers.Thesecustomerswilloftentraveloutoftheirwayforapreferredbrandandwillpaypremiumratesaswell.

• Product Niche: The subject facility is projected to be of quality and scope of amenities andservices to compete for the majority of individual and group demand in the market. Theproposed Hotel will offer high-quality facilities, amenities and services for the corporatetraveler,aswellasbethenewconventionhotelintown.Theguestroomproductandscopeofguest services and amenities are projected to be clearly superior within the market. Theproposed Hotel is projected to be among the first choice for many repeat travelers to themarketwho prefer a hotel experience afforded by locational advantages and also enjoy thebenefitsofbrand-affiliationincludingrewardspoints,reservationsystemandbrandstandards.

• Function Space and Group Demand: The subject market area maintains a significant mix ofgroup leisure demand including: reunions; weddings; sports teams; religious functions; and,othersocialevents.Theavailabilityofasignificantamountoffunctionspace,proximitytofoodservices, and a possible indoor pool recreational amenity in total are projected to create apreferredlodgingchoiceformanyoftheseleisuregroups.

TheproposedHotelandConventionCenterisprojectedtocreateandcaptureasignificantamountofdemandthatwouldotherwisenotchoosetostayormeet inHutchinsondueto itsexpectedquality,national brand affiliation, compliment of function space, and scope of services, amenities, andfeatures.ProjectedMixofDemand

Themix of accommodated demand at the subject property is projected to approximate 40 percentcorporatetransient,25percentgroupand35percent individual leisuretravelersonanannualbasis.Theaccommodatedmixofdemandmayvaryfromyear-to-year,butoverall, theproposedHotelandConvention Center is projected to be predominantly commercial with strong group and individualleisureappeal.

AttachedExhibitThe following exhibit presents a summary of the historic and projected relationship of supply todemandamongthedefinedcompetitiveset.Alsoincludedinthisexhibitaretheprojectedoccupancy,average rate and competitivepositionof theproposedHotel andConventionCenter relative to themarketaverages.

Supply Demand

Year Amount Change Amount Change Occ ADR Change Occ Pen Rate ADR Change

Historic: 2013 358 - 240 - 67% $91 -

2014 358 0% 238 -1% 66% $91 -0.1% - - - -

2015 421 18% 265 12% 63% $96 5.6% - - - -

2016 434 3% 255 -4% 59% $92 -4.1% - - - -

2017 434 0% 253 -1% 58% $95 2.7% - - - -

2018 434 0% 257 2% 59% $95 0.1% - - - -

Projected: 2019 434 0% 260 1% 60% $96 1.4% - - - -

2020 434 0% 267 2% 61% $97 1.5% - - - -

2021 434 0% 271 2% 62% $99 1.5% - - - -

2022 554 28% 316 17% 57% $104 5.0% 62% 109% $132 -

2023 554 0% 327 4% 59% $107 3.0% 64% 108% $136 2.5%

2024 554 0% 332 2% 60% $110 2.5% 66% 110% $139 2.5%

2025 554 0% 349 5% 63% $112 2.5% 70% 111% $143 2.5%

2026 554 0% 360 3% 65% $115 2.5% 72% 111% $146 2.5%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-2026

Base Supply 358 358 358 358 358 358 358 358 358 358 358 358

Holiday Inn Express 63 76 76 76 76 76 76 76 76 76

Proposed Hotel 120 120 120

Total 358 358 421 434 434 434 434 434 434 554 554 554

*Competitive Set includes only properties reporting information to STR

Proposed Hotel & Convention CenterSupply/Demand & Penetration Summary

Hutchinson, Kansas

Competitive Set* Proposed Hotel

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