EXHIBIT B
Summary & Scope of Work
City of Nashua Office of Economic Development
Professional Services related to Hotel Market Study
Summary & Scope of Work
SCOPE OF SERVICES
The tasks that we will complete include:
Inspect both sites and the surrounding area.
Meet with you to discuss the attributes of the Nashua market including a discussion of the
planned developments and growth opportunities within the City. We will review all relevant
data that you provide to us.
Conduct a market supply and demand analysis of the Nashua lodging market which will
include interviews with competitive hotel managers, collection of data on proposed hotels,
and an analysis of current and future lodging demand generators.
Based on our research, we will prepare projections of occupancy and average room rate, and
financial projections for a proposed hotel on one of the subject sites. Per your direction, we
will assume that the proposed hotel would contain approximately 125 guest rooms and
would be developed as a nationally branded, select service hotel.
Gather industry data on the construction costs to develop a 125 room, select service hotel,
along with market based financing terms.
Based on the projected income stream for the Project, coupled with general development
costs and financing terms, coupled with required returns on investment, we will determine
the feasibility for hotel development. For the purpose of this analysis, we will ascribe no
value to the land assuming that the land is leased for $1.
Upon completion of our market research and analysis, we will prepare a brief memo (6-8
pages) that that addresses the following:
1. Market conditions. We will describe current and projected market supply and
demand factors that are relevant to the Project.
2. Project projections. We will present financial projections for the proposed Project
noting that the projections are subject to change based on more specific facility
assumptions and management structure.
3. Project feasibility. We will describe the financial feasibility of the Project, and
quantify Project shortfalls (the investment needed by the City for the Project to be
feasible).
Our brief report will be for your internal use only. The report, and our findings, may not be relied
upon by prospective developers to obtain financing or investment.
