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City of San Leandro Marina Lodging Development paqe 8 D. RESUL TS OF THE SURVEY OF MAJOR EMPLOYERS IN SAN LEANDRO We have conducted a focused survey of several large employers in San Leandro to determine if there is sufficient market demand to justify the construction of a conference-center hotel at the Marina. A total of 15 surveys were sent to the largest businesses, as ranked by employees, in San Leandro. Of those surveys, we received replies from 11 companies indicating a response rate of over 70 percent. A copy of this survey is included in Addendum C. The survey itself contained two sections. The first section inquired about information regarding hotel demand and the second regarding meeting space demand. All 11 San Leandro based companies surveyed indicated that there would be utilization of an additional hotel at the marina if it were constructed and met their specifications. Given that, the companies indicated they would provide a total of approximately 2,000 room nights per year. In the past year, these companies have used other area hotels such as the San Leandro Marina Inn, Waterfront Plaza Hotel, and Oakland Airport Hilton. Further, nine companies indicated that they hold events that require an outside meeting facility. The companies combined hold approximately 40 events annually with attendees ranging from less than five to 250. All nine companies indicated a need for food and beverage service at their events and seven of the companies also indicated a need for hotel accommodations during events. The majority of the companies prefers to hold their events at hotels with meeting space and indicated that the main reason for holding events outside of San Leandro was because of the higher quality of accommodations available outside the City. The updated surveys concur with our findings from a much larger sampling of similar respondents which we conducted in 1999 for another study of a recommended conference center at the Marina. This study was done on behalf of a private developer. E. PROJECTED OPERA TING RESUL TS 1. Conference Center Hotel Operating Results Presented on the following two pages is a statement of estimated annual operating results for the first ten years of operation of the recommended conference center hotel. This statement, which assumes that the facility will open on January 1, 2006, includes all operating revenues and expenses and reflects a "bottom line" of income before interest, depreciation, amortization, and taxes on income. The estimated occupancy, ADR, total revenues, and net operating income for the 200-room facility are summarized in the following table (Table One).