Pinnacle Advisory Group
Boston NewYork NewportBeach Portland Tampa Washington DC
Hospitality Consulting
Asset Management
Real Estate Appraisal Rachel J. Roginsky, ISHC
Litigation Support
July 23, 2018
Tim Cummings
Director of Economic Development
City of Nashua,
229 Main Street
Nashua, NH 03061-2019
Sent via email: cummingst@nashuanh.gov
Dear Mr. Cummings:
Thank you for the opportunity to provide consulting services to the City of Nashua (“Client”). At your
request, Pinnacle Advisory Group (“Pinnacle”) has prepared this brief proposal summarizing the
scope of work and engagement terms with respect to assisting you with an analysis of the Nashua
lodging market which will lead to the understanding of the general feasibility for developing a new
hotel (“Project”). More specifically, you have indicated that the City owns two sites in Nashua, and
you are considering selling or leasing one site to a hotel developer. Before moving forward, you have
asked Pinnacle to undertake a “high level’ analysis on the lodging market so that we can provide you
with advice regarding hotel feasibility. This proposal presents a summary of the scope of services, our
fees, and timing to assist you with this engagement.
It is important to note that our findings and written report are for your internal use only. Our report may
not be used by prospective developers to obtain financing or investment. It is assumed that any
prospective developer would complete their own due diligence.
SCOPE OF SERVICES
The tasks that we will complete include:
e Inspect both sites and the surrounding area.
e 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.
e 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.
e 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.
e Gather industry data on the construction costs to develop a 125 room, select service hotel,
along with market based financing terms.
Principal
www.pinnacle-advisory.com
98 North Washington Street, Suite 403, Boston MA 02114 phone 617-722-9916 fax 617-722-9917
