v4 - Cornell ID #: 1975661 Cornell ID #: 1975661 Page |...

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Unformatted text preview: Cornell ID #: 1975661 Cornell ID #: 1975661 Page | Page | 1 1 Introduction Chasm Development Investors (CDI) proposes to build a 90-room select-service, business- hotel on the Inlet Island site in Ithaca, NY. The Inlet Island area is the site of recent proposals for an up-and-coming mixed-use development project along Ithacas waterfront on Cayuga Lake. This report will detail the reasons why the Inlet Island site is viable for hotel development and what are the proposed features of this new hotel. Through calculations of given data that were provided about Ithacas hotel market, the proposed hotel is expected to garner about 103% of its fair-share of the areas demand with the following breakdown by market segment: 130% of business, 90% of leisure, and 80% of group. With these penetration values and expected demands in mind, this hotel is hoping to obtain average 70% occupancy, similar to Ithacas average occupancy of 70%. This report will continue to address the rationale for how the proposed hotel will achieve these goals. Site Description The hotel market in Ithaca has experienced a recent growth spurt in the past several years with the launches of the Hilton Garden Inn in downtown Ithaca, the Homewood Suites near the Triphammer Mall on NYS Route #13, and the Country Inn & Suites near Ithaca College. These hotels have helped meet the demand of the two main demand generators of Ithaca: Cornell University and Ithaca College. The proposed hotel on the Inlet Island site hopes to meet the demand for these two key revenue generators in Ithaca as well as help develop the Inlet Island area. Ithacas Demand Generators Ithacas two largest demand generators are Ithaca College and Cornell University. These two institutions generate large amounts of demand for hotel rooms from guest speakers, graduation, recruiters, visiting families, and prospective students. Also, the universities create latent demand for hotel rooms during the fall when students return to college and during the spring when families come to attend graduation. Ithaca has more demand generators than just the colleges such as local wineries, downtown theatres, and gorges state parks. These demand generators are more leisure-based than the colleges; yet, the wineries, parks, and theatres are still very relevant to the Inlet Island site. Examples such as Buttermilk Falls State Park, the State Theatre, and the 20 wineries listed at VisitIthaca.com (Wineries and Breweries) create year-round demand for hotel rooms, especially during the summer months when the universities dont offer sufficient demand for hotel rooms. Cornell ID #: 1975661 Cornell ID #: 1975661 Page | Page | 2 2 Inlet Islands Site Characteristics The Army Corps of Engineers created Inlet Island in the 1970s when the group dug the Cayuga Inlet and the Flood Control Channel that lead away from Cayuga Lake (Inlet Island). Inlet Island is the intersection of three New York State highways: #79, #89, and #96. #79, #89, and #96....
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v4 - Cornell ID #: 1975661 Cornell ID #: 1975661 Page |...

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