New Hotel

Development Project

Dodgeville, Wisconsin

PREPARED FOR:

Iowa County, Wisconsin

Process

Core Distinction Group LLC (CDG) was engaged to provide this Comprehensive Lodging Feasibility Study Report for the Dodgeville, WI market area. This Lodging Feasibility Study provides an overview of information concerning the area and the factors that would affect the possible development of a hotel facility in this community.

The consultant from Core Distinction Group LLC met with representatives of the community to gather information pertinent to hotel development. Comprehensive research was performed and reviewed regarding the community's economic indicators, competitive lodging supply, and lodging demand generators. CDG performed field research to determine the relationship between the community and its lodging need. Economic indicators were studied to determine the stability and future growth potential of the general market. The research was conducted as a macro and micro market analysis of Dodgeville, WI and the areas immediately surrounding area to determine their viability to support the potential of a hotel development.

This report presents projections for stabilized hotel operation based upon current operating performance in the market area. Occupancy, Average Daily Room Rate, and Sales Revenue projections for the hotel were based upon a detailed review of the field research, data, and online surveys of potential demand generators. Also, recommendations as to the property type, suggested property size, services, and amenities were included. These projections and recommendations were based upon the market demand research for a potential lodging facility.

Demand Generators

Weekday/Corporate Demand - The community of Dodgeville offers a wide variety of corporate/business/weekday demand generators. Additionally, the communities access to Highway 151 makes it a easy drive to attract corporate demand from surrounding markets. This can also increase lodging demand in Dodgeville during times of high need in these surrounding markets. Local businesses that expressed a need for lodging include but are not limited to:

Lands’ End

Wood Violet Recovery ( including weekends )

Dodgeville School District

Upland Hills Health

Uplands Cheese

Cedar Direct

Badger Hollow Wind Energy

Weekend/Leisure Demand - The community as well as the surrounding area provide a substantial amount of weekend and/or leisure lodging demand. The community is central to an array of recreational activities, potential social gathering venues, as well as regional tourism draws. These include but are not limited to:

American Players Theatre

Dodgeville Parks and Trails

Ice Wolves Hockey Association

Governor Dodge State Park

Blackhawk Lake Recreation

Industry Data

For the purposes of this Comprehensive Hotel Market Feasibility Study, it is important to understand the overall demand of lodging in the market as well as surrounding markets. The following market segment down was identified for Dodgeville:

Business

& Corporate

Area Events

& Attractions

SMERF

Social, Military, Education, Religious, and Fraternal groups

Transient/

Walk-In

Recommedation

Based on the information provided to and gathered by Core Distinction Group, at the time of researching the subject community, the following recommendations are made:

Property Segment

Property segment recommended for the potential development of a hotel is an Upscale to Upper Midscale hotel. This type of hotel would allow the property to be positioned properly at the subject site. It is anticipated that a new hotel would capture displaced Lodging Demand currently staying in markets surrounding Dodgeville, WI. Additionally, the newness of the hotel should be well received in the marketplace. Its location will be ideal to serve Dodgeville and regional markets. This type of hotel would also be capable of adjusting rates to best fit the demand in the market and seasonality.

Property Size

Property size recommendation of a newly developed hotel was researched to be between 65-75 guestrooms in this report. This would position it to be similar in size to the average room size of 49-75 noted by the competitive set surveyed. The size would assist the property in achieving the Occupancy projections listed in this report. It is not advisable to over-build in this market at this time. Expansion of the hotel in future years could be considered as the market's Lodging Demand grows. Adjusting the room count will modify Performance.

New Hampton Inn & Suites

Hotel Development Projections

Project Projections Summary

For the purpose of this report, community representatives asked Core Distinction Group to compile a projection of income and expenses for a new Hampton Inn & Suites hotel, which is an upper midscale brand. Projections are based on occupancy and average rates for an upper midscale hotel development project, and the costs are based on the Hampton Inn & Suites Franchise Disclosure Document:

Economic Impact Summary

In this section of the report, Core Distinction Group has compiled a summary of what the potential direct and indirect economic impact could be for the proposed hotel development. This projection offers potential revenue growth based on this project's recommendations.