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HomeMy WebLinkAbout2017-12-11 e-packet@12:30Monday, December 11, 2017 12:30 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Housing Standing Committee of the City Council and Planning Commission Special Meeting Agenda December 11, 2017Housing Standing Committee of the City Council and Planning Commission Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council and the Planning Commission Housing Standing Committee of the City of South San Francisco will hold a Special Meeting on Monday, December 11, 2017, at 12:30 p.m., at City Hall, City Manager's Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: Call To Order. Roll Call. Public Comments. MATTERS FOR CONSIDERATION Motion to approve the Minutes from the meetings of June 26, 2017, August 7, 2017 and October 16, 2017. 1. Report regarding developer selection process for the proposed hotel development at Oyster Point (Ernesto Lucero, Economic Development Coordinator) 2. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: the 4.7 acre portion of APN 015-010-600, dedicated for a proposed hotel. Agency negotiator: Alex Greenwood Negotiating parties: Ensemble Real Estate Investments, Shashi Group, JMA Ventures, and City of South San Francisco Under negotiation: Price and Terms of payment 3. Adjournment. Page 2 City of South San Francisco Printed on 1/23/2018 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-1188 Agenda Date:12/11/2017 Version:1 Item #:1. Motion to approve the Minutes from the meetings of June 26, 2017, August 7, 2017 and October 16, 2017. City of South San Francisco Printed on 12/7/2017Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-1129 Agenda Date:12/11/2017 Version:1 Item #:2. Report regarding developer selection process for the proposed hotel development at Oyster Point (Ernesto Lucero, Economic Development Coordinator) RECOMMENDATION Staff recommends that the Joint Housing Subcommittee receive presentations and interview the three development teams that submitted proposals,and make a recommendation to the City Council regarding a preferred developer and alternate. BACKGROUND Over the past 10 months,the City has been proceeding through a solicitation process to select a highly qualified development team for a future hotel on a City-owned,4.7-acre site at Oyster Point.The site has undergone environmental review for up to 350 hotel rooms and 40,000 square feet of retail amenities.The City intends to retain ownership of the land and enter into a ground lease with the selected developer for the development and operation of a hotel. The site is an ideal location for a high-end hotel with waterfront views,just steps from the South San Francisco Ferry Terminal and directly within the biotech industry cluster at Oyster Point.A CBRE Hotels market data report (Attachment 1)illustrates that local market conditions show strong hotel occupancy rates,as well as high Average Daily Rates (ADR)and Revenue per Available Room Rates (“RevPar”).Additionally,as new life science construction has surpassed the supply of high quality,upscale hotel brands in the immediate area,the Oyster Point area is currently underserved by upscale hotels and hotel amenities.These are all indicators for the potential of a high-end hotel to succeed in the South San Francisco market. Developer Solicitation On February 24,2017,staff issued a Request for Qualifications (RFQ)for a highly-qualified hotel developer. The RFQ was due on March 31,2017,and eight submittals were received by the City.Those submittals were from the following entities: ·AJ Capital Partners ·OTO Development ·M-Rad Architecture & Oliver Companies ·Shashi Group ·Glacier House Hotels ·Ensemble Real Estate Investments ·Bayview Development Group City of South San Francisco Printed on 12/7/2017Page 1 of 4 powered by Legistar™ File #:17-1129 Agenda Date:12/11/2017 Version:1 Item #:2. ·JMA Ventures A Review Panel was convened on May 1,2017,to review and score the submittals.The Review Panel included representatives from:Genentech,City (Economic &Community Development),City (Planning Division),City (Public Works Department),and the California Life Sciences Association.Based on scoring of the submittals, six developer teams were invited to conduct in-person interviews with the Review Panel on May 22nd and 23rd. A recommendation from the Review Panel was taken to the Joint Housing Subcommittee (JHSC)for consideration at its June 26,2017 meeting.The JHSC recommended the City invite four developer teams to respond to a Request for Proposals (RFP) (Attachment 2). DISCUSSION The deadline to submit proposals was October 25,2017.The City received proposals from the following three short-listed developers: ·JMA Ventures; ·Ensemble Real Estate Investments; and ·Shashi Group. All three of the developers that submitted proposals have been invited to present their hotel concepts to the JHSC on December 11,2017.The December 11,2017 JHSC meeting is an opportunity for the developers to discuss their proposed development team,demonstrate relevant experience,and propose their initial hotel programming and amenities for the site. Proposals Received The RFP required developers to submit the following information:a description of the proposed development, identification and qualifications of the design team,relevant experience of the hotel developer,proposed hotel brand(s),approach to the proposed development,schematic plans and drawings,a project schedule and phasing plan, and financial benefits to the City of the proposed project. Ensemble Real Estate Investments (Attachment 3) Ensemble Real Estate Investments (“Ensemble”),with a wide presence in the Bay Area,brings over thirty years of experience building full and select service hotels.Some comparable projects include:Hyatt Place, Emeryville; Hyatt Place, Pasadena at The Paseo; and Hotel Nia Park, Menlo Park. Ensemble conducted preliminary community engagement,speaking with major biotech tenants in South San Francisco,and identified the need for a more iconic hotel with ample food and beverage service and meeting space.Ensemble’s preliminary concept consists of a 243-room,full service lifestyle hotel branded as either Canopy or Curio, both Hilton brands. Hotel amenities would consist of: ·Waterfront view meeting space of at least a total of 11,500 square feet; ·4,000 square feet of food and beverage space; and ·1.5 acres of open space. City of South San Francisco Printed on 12/7/2017Page 2 of 4 powered by Legistar™ File #:17-1129 Agenda Date:12/11/2017 Version:1 Item #:2. JMA Ventures (Attachment 4) Headquartered in San Francisco,JMA Ventures is a full-service real estate development and investment firm with over thirty years of experience in the Bay Area.Comparable project experience includes the conversion of the Hearst office building in downtown San Francisco to a 170-room boutique hotel,the development of a 250- room hotel in Sacramento Kings Arena entertainment district,and the redevelopment of a mixed-use project at Ghirardelli Square with re-purposed retail and a residence club. JMA Ventures gathered feedback from the broker community and local employees which indicated a high demand for high-end hotels with amenities in the Oyster Point area.The proposed development plan consists of two separate hotels:a 250-room higher end four star service hotel,and a 100-room select service hotel for longer term business guests. Amenities shared between the two hotels would consist of: ·Waterfront view meeting space of at least a total of 16,000 square feet; ·One full service restaurant and two fast-casual food amenities/bars; and ·Communal space and outdoor recreational space. Shashi Group (Attachment 5) Shashi Group is a Silicon Valley-based hotel developer that has built,repositioned,or conducted major renovations on five hotels along the Peninsula and South Bay since 2013.Its most recent project includes breaking ground on a new 200-room,upscale,full service,LEED-certified hotel near Google in Mountain View. Shashi Group is proposing a combination of Marriott products geared toward full service and extended stay customers.The proposed development plan consists of two separate hotels:a 210-room full service Westin hotel,and a 138-room extended stay Element hotel for long term business guests.Amenities shared between the two hotels would consist of: ·Waterfront view meeting space of at least a total of 9,400 square feet; ·A combination of three restaurants totaling 12,500 square feet; and ·Amenities and public space. Developer Selection The evaluation criteria specified in the RFP for the selection of a preferred developer and an alternate,as described in Section 3.4 Evaluation Criteria of Attachment 2, are as follows: ·Appropriateness and quality of the project concept. ·Community and economic benefits to Oyster Point and the City. ·Financial capability to consummate the proposed deal. ·Delivery of a high-quality iconic design. ·Completeness, creativity and clarity of the proposal. ·Presentation to and interview with the JHSC. City of South San Francisco Printed on 12/7/2017Page 3 of 4 powered by Legistar™ File #:17-1129 Agenda Date:12/11/2017 Version:1 Item #:2. Next Steps The recommendation from the JHSC to select a preferred developer and an alternate will be presented to the City Council in the first quarter of 2018 for approval.The City will then enter into an Exclusive Negotiating Rights Agreement with the selected developer and subsequently terms of the ground lease will be negotiated. CONCLUSION This report provides an update on the developer selection process for a hotel on a City-owned site at Oyster Point.A recommendation is being sought from the JHSC on a preferred developer and one alternate.The recommendation will be presented to the City Council for final approval. Attachments: 1.Market Data Analysis 2.Request for Proposals 3.Proposal (non-confidential) - Ensemble Real Estate Investments 4.Proposal (non-confidential) - JMA Ventures 5.Proposal (non-confidential) - Shashi Group City of South San Francisco Printed on 12/7/2017Page 4 of 4 powered by Legistar™ REGIONAL ECONOMIC SUMMARY HOTEL MARKET SUMMARY San Francisco Forecast Summary YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201280.3%1.6%$171.6410.9%$137.7712.7% 201382.8%3.1%$187.339.1%$155.0212.5% 201484.0%1.5%$208.0811.1%$174.8312.8% 201584.4%0.5%$222.106.7%$187.497.2% 201684.3%-0.2%$230.823.9%$194.493.7% 2017F83.3%-1.2%$226.65-1.8%$188.69-3.0% 2018F82.7%-0.7%$230.611.7%$190.691.1% 2019F83.3%0.7%$237.262.9%$197.563.6% 2020F83.5%0.3%$244.543.1%$204.303.4% 2021F84.3%0.9%$252.373.2%$212.734.1% Source: CBRE Hotels' Americas Research, STR, Q3 2017 EXHIBIT 1**: Performance Grade vs. Long Run Average Source: CBRE Hotels' Americas Research, STR, Q3 2017 Source: CBRE Hotels' Americas Research, Q3 2017**See Appendix for exhibit descriptions DECEMBER 2017 -FEBRUARY 2018 EDITION -3 -2 -1 0 1 2 3 '12'13'14'15'16'17F'18F'19F'20F'21F Nu m b e r o f S t a n d a r d D e v i a t i o n s Occupancy ADR Change RevPAR Change HOTEL MARKET SUMMARYREGIONAL ECONOMIC SUMMARY SAN FRANCISCO San Francisco: Next 4 Quarters EXHIBIT 1**: Performance Grade vs. Long Run Average The arrows show the forecast direction of change over the next 4 quarters vs. the previous 4 quarters. Green indicates the change will be above the long run average, yellow indicates it will be the same, and orange indicates it will be below. San Francisco Forecast Summary Long Run Averages 1988 to 2016 Occupancy: 73.8%, ADR Change: 4.0%, RevPAR Change: 4.8% DECEMBER 2017 -FEBRUARY 2018 EDITION PRICE: $545VOLUME XI -ISSUE IV Occupancy Average Daily Rate Revenue Per Available Room Supply (orangeindicates above long-term average) Demand DECEMBER 2017 -FEBRUARY 2018 EDITION PRICE: $545VOLUME XI -ISSUE IV “Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of mid-August through September. Overall price inflation was flat and remained low, while upward wage pressures strengthened somewhat, and labor market conditions tightened further. Sales of retail goods picked up, and growth in consumer and business services remained strong. Conditions in the manufacturing sector improved, while activity in the agriculture sector was flat. Lending activity grew at a moderate pace. Retail sales picked up over the reporting period. Demand for entertainment services was strong, and one contact reported that technological gains and favorable tax conditions spurred investment. Demand in the hospitality industry slowed slightly from its strong pace over the summer, and contacts expect hotel stays to soften a bit more over the remainder of the year. Real estate market activity continued to grow at a strong pace. On balance, commercial construction activity continued to expand at a moderate pace. In Eastern Washington, permits for commercial construction were up over the same period last year. Contacts in Southern California reported that construction of hotel and retail spaces were at an all-time high." Federal Reserve Bank Beige Book, October 2017 By year-end 2017, San Francisco hotels are forecast to see a RevPAR decrease of 3.0%. This is the result of an estimated decline in occupancy of 1.2% and a 1.8% loss in average daily room rates (ADR). The 3.0% decline in San Francisco RevPAR is less than the national projection of a 2.9% increase. Both the upper and lower-priced segments of San Francisco are expected to show negative RevPAR change by year end. Lower-priced hotels are forecast to suffer a 0.9% loss in ADR and a 1.0% decrease in occupancy, resulting in a 1.9% RevPAR decline. Upper-priced hotels are projected to experience an ADR decline of 2.0%, along with a 1.3% loss in occupancy, resulting in a 3.3% RevPAR decline. Looking towards 2018, San Francisco RevPAR is expected to grow 1.1%, reversing the downward trend of 2017. Prospects for RevPAR growth in the lower-priced segment (positive 1.1%) are better than in the upper-priced segment (positive 0.8%). San Francisco market occupancy levels are expected to range from 82.7% to 84.3% during the 5-year forecast period. Occupancy will decrease to 82.7%, a decline over the past 4 quarters' rate of 83.4%, but above the long run average of 73.8% ADR growth expectations are increasing, positive 1.2% vs. the past 4 quarters' rate of negative 1.8%, but are below the long run average of positive 4.0% RevPAR growth projections are climbing to 0.4% as compared to the past 4 quarters' rate of negative 3.0%, but are lower than the long run average of positive 4.8% Supply growth is climbing, 2.3% vs. the past 4 quarters' rate of 0.2%, and greater than the long run average of 0.8% Forecast demand growth is climbing, positive 1.5% vs. the past 4 quarters' rate of negative 1.1%, and is greater than the long run average of positive 1.3% Se e u s e a n d d i s t r i b u t i o n r e s t r i c t i o n s o n t h e l a s t p a g e o f t h i s r e p o r t . D o w n l o a d e d b y J u l i e P u r n e l l , C B R E H o t e l s ' R e s e a r c h San Francisco Economic Summary *See Appendix for exhibit descriptions P. 2 / CBRE HOTELS' AMERICAS RESEARCH Below are a select number of variables that drive the CBRE Hotels | Americas Research econometric forecasts contained in this report. Income and employment are important barometers of economic health and are used in every Hotel Horizons ® forecast model. The lodging market is part of the larger economy, and the forces that affect us nationally also affect lodging, but in different magnitudes and time periods (see Exhibits 4 and 5 below). Exhibits 2 - 6 provide an overview of current economic history and forecast, and provide explanation of what to expect in the future, and how that affects the lodging industry. 1.0% 2.6%2.7% 3.1% 0.7% 1.6% 2.4% 3.4% 0% 1% 2% 3% 4% Change in Total EmploymentChange in Consumer Price IndexChange in Gross Metro ProductChange in Real Personal Income San Francisco 1988 to 2016 San Francisco 2017 to 2021 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% '99'01'03'05'07'09'11'13'15'17'19'21 Real Personal Income -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% '99'01'03'05'07'09'11'13'15'17'19'21 Total Payroll Employment Employment (Left)Demand (Right) Source: CBRE EA, Moody's Analytics, Q3 2017 Source: CBRE EA, Q3 2017 Source: CBRE EA, Q3 2017 Income (Left)RevPAR (Right) Source: CBRE EA, CBRE Hotels, STR, Q3 2017 Source: CBRE EA, CBRE Hotels, STR, Q3 2017 Exhibit 3*: Employment ChangeExhibit 2*: Income Change Exhibit 4*: Quarterly Income vs. RevPAR Change Exhibit 5*: Quarterly Employment vs. Demand Change Exhibit 6*: Average Annual Growth Rates See graph below See graph below DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® San Francisco Hotel Summary The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2012 to 2021. Used as a relative benchmark, each market segment is plotted against a common index value of 2012 = 100. This method provides clear insight of how each market segment performed and is expected to perform in relation to others in the specified period. The charts on the right compare near-term historical compound annual growth rates (CAGR) to the CAGRs for the forecast period. P. 3 / CBRE HOTELS' AMERICAS RESEARCH 100 110 120 130 140 150 160 All U.S.Upper-Priced Hotels Lower-Priced Hotels All Hotels 100 110 120 130 140 150 160 170 All U.S.Upper-Priced Hotels Lower-Priced Hotels All Hotels 100 101 102 103 104 105 106 107 108 109 110 All U.S.Upper-Priced Hotels Lower-Priced Hotels All Hotels 0.1% 0.5% -0.7% 2.0% 2.3% 1.2% -1.0% 0.0% 1.0% 2.0% 3.0% All HotelsUpper-PricedLower-Priced Past 5 Years Next 5 Years Source: CBRE Hotels, STR, Q3 2017 9.0%8.6% 9.8% 3.0%2.9%3.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% All HotelsUpper-PricedLower-Priced Past 5 Years Next 5 Years 1.3% 1.8% 0.3% 2.3% 2.5% 1.7% 0.0% 1.0% 2.0% 3.0% All HotelsUpper-PricedLower-Priced Past 5 Years Next 5 Years Exhibit 8*: ADR Change Exhibit 10*: Compound Average Annual Supply Change Exhibit 11*: Compound Average Annual Demand Change Exhibit 9*: RevPAR Change Exhibit 12*: Compound Average Annual RevPAR Change Exhibit 7*: Occupancy Change DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® *See Appendix for exhibit descriptions Source: CBRE Hotels, STR, Q3 2017 Source: CBRE Hotels, STR, Q3 2017 *See Appendix for exhibit descriptions Source: CBRE Hotels, STR, Q3 2017 Source: CBRE Hotels, STR, Q3 2017 Source: CBRE Hotels, STR, Q3 2017 San Francisco Forecast - All Hotels YEARPERIODOCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR Δ SUPPLY Δ DEMAND 2012Annual80.3%1.6%$171.6410.9%$137.7712.7%-0.1%1.5% 2013Annual82.8%3.1%$187.339.1%$155.0212.5%-0.3%2.8% 2014176.8%4.8%$186.5912.5%$143.3817.9%-1.0%3.8% 2014286.8%0.1%$203.0811.1%$176.3511.2%-0.6%-0.5% 2014391.2%0.8%$227.3311.2%$207.2212.1%0.1%0.8% 2014481.2%0.9%$212.0610.0%$172.2411.0%0.2%1.1% 2014Annual84.0%1.5%$208.0811.1%$174.8312.8%-0.3%1.2% 2015178.8%2.5%$207.8511.4%$163.7114.2%0.3%2.9% 2015287.5%0.7%$218.287.5%$190.978.3%0.3%1.0% 2015390.4%-0.9%$240.886.0%$217.665.0%0.4%-0.4% 2015481.0%-0.2%$219.043.3%$177.483.0%0.2%0.0% 2015Annual84.4%0.5%$222.106.7%$187.497.2%0.3%0.8% 2016180.4%2.0%$235.0113.1%$188.8515.4%0.8%2.9% 2016287.2%-0.4%$230.935.8%$201.265.4%0.9%0.6% 2016389.2%-1.2%$238.03-1.2%$212.42-2.4%0.6%-0.7% 2016480.3%-0.9%$218.51-0.2%$175.43-1.2%0.7%-0.2% 2016Annual84.3%-0.2%$230.823.9%$194.493.7%0.8%0.6% 2017179.0%-1.7%$234.62-0.2%$185.30-1.9%-0.5%-2.2% 2017285.4%-2.0%$216.48-6.3%$184.83-8.2%-0.1%-2.1% 2017388.8%-0.5%$237.54-0.2%$211.00-0.7%0.6%0.1% 2017F479.8%-0.6%$217.58-0.4%$173.57-1.1%0.8%0.2% 2017FAnnual83.3%-1.2%$226.65-1.8%$188.69-3.0%0.2%-1.0% 2018FAnnual82.7%-0.7%$230.611.7%$190.691.1%2.8%2.1% 2019FAnnual83.3%0.7%$237.262.9%$197.563.6%1.7%2.4% 2020FAnnual83.5%0.3%$244.543.1%$204.303.4%1.7%2.0% 2021FAnnual84.3%0.9%$252.373.2%$212.734.1%1.7%2.6% 2016 3QYear to Date85.6%0.0%$234.685.2%$200.865.3%0.8%0.8% 2017 3QYear to Date84.4%-1.4%$229.53-2.2%$193.77-3.5%0.0%-1.4% 2017 3QTrailing 4 Qtrs83.4%-1.3%$226.88-1.8%$189.18-3.0%0.2%-1.1% Source: CBRE Hotels' Americas Research, STR, Q3 2017 Exhibit 13*: San Francisco Standardized Changes in Real RevPAR Movements Over Time Source: CBRE Hotels' Americas Research, STR, Q3 2017 *See Appendix for exhibit description P. 4 / CBRE HOTELS' AMERICAS RESEARCH -4 -3 -2 -1 0 1 2 3 198919911993199519971999200120032005200720092011201320152017F2019F2021F Nu m b e r o f S t a n d a r d D e v i a t i o n s U.S.San Francisco Exhibit 13*: San Francisco Standardized Changes in Real RevPAR Movements Over Time DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® San Francisco Forecast - Upper-Priced Hotels YEARPERIODOCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR Δ SUPPLY Δ DEMAND 2012Annual80.9%0.7%$196.0010.4%$158.6511.2%0.4%1.1% 2013Annual83.7%3.4%$213.368.9%$178.5012.5%0.4%3.7% 2014177.8%3.9%$215.6112.1%$167.7616.5%-0.2%3.7% 2014286.8%-1.3%$230.4710.9%$200.029.5%0.2%-1.0% 2014391.0%0.8%$254.6710.6%$231.8411.6%0.5%1.4% 2014482.1%0.7%$240.879.5%$197.8110.2%0.5%1.2% 2014Annual84.5%0.9%$236.1410.7%$199.4211.7%0.3%1.2% 2015178.6%1.0%$240.2411.4%$188.8712.6%0.5%1.6% 2015287.4%0.8%$246.777.1%$215.797.9%0.3%1.0% 2015390.4%-0.7%$268.455.4%$242.704.7%0.2%-0.5% 2015482.1%0.0%$247.372.7%$203.162.7%0.0%0.0% 2015Annual84.7%0.2%$251.216.4%$212.666.6%0.3%0.5% 2016181.5%3.7%$269.0412.0%$219.2916.1%1.0%4.8% 2016287.8%0.5%$259.245.1%$227.725.5%1.2%1.6% 2016389.9%-0.5%$263.19-2.0%$236.70-2.5%1.0%0.4% 2016481.7%-0.6%$245.25-0.9%$200.26-1.4%1.1%0.5% 2016Annual85.2%0.7%$259.263.2%$220.993.9%1.1%1.8% 2017179.8%-2.1%$268.85-0.1%$214.64-2.1%-0.7%-2.8% 2017286.0%-2.1%$242.62-6.4%$208.61-8.4%-0.1%-2.2% 2017389.5%-0.5%$262.12-0.4%$234.61-0.9%0.8%0.3% 2017F481.2%-0.5%$242.78-1.0%$197.15-1.5%1.0%0.5% 2017FAnnual84.1%-1.3%$254.01-2.0%$213.75-3.3%0.2%-1.0% 2018FAnnual83.7%-0.6%$257.491.4%$215.390.8%3.5%2.9% 2019FAnnual84.3%0.8%$264.682.8%$223.183.6%1.9%2.7% 2020FAnnual84.4%0.1%$273.073.2%$230.433.2%1.9%1.9% 2021FAnnual84.9%0.6%$282.123.3%$239.604.0%1.9%2.5% 2016 3QYear to Date86.4%1.1%$263.684.5%$227.925.6%1.1%2.2% 2017 3QYear to Date85.1%-1.5%$257.63-2.3%$219.35-3.8%0.0%-1.5% 2017 3QTrailing 4 Qtrs84.3%-1.3%$254.63-2.0%$214.57-3.2%0.3%-1.0% Source: CBRE Hotels' Americas Research, STR, Q3 2017 FULL-SERVICE HOTELS - PERCENT OF TOTAL REVENUE - 2016 Financial Line Item Mountain / Pacific Region ADR Over $250†150 to 300 Rooms‡ Rooms Revenue 70.5%66.2%72.8% Food and Beverage Revenue 24.3%27.7%22.6% Total Departmental Expenses 38.8%44.8%37.1% Total Departmental Profit 61.2%55.2%62.9% Total Undistributed Expenses 23.1%22.9%26.1% Gross Operating Profit**38.1%32.3%36.8% *Data from 2017 Trends ® in the Hotel Industry report †San Francisco Upper-Price Average ADR: $259.26 **Before deductions for management fees and non-operating income and expenses.‡San Francisco Upper-Price Average Size: 220 Rooms Source: CBRE Hotels' Americas Research, 2016 For a more comparable and detailed financial comparison, we recommend a BenchmarkerSM report. Please contact Viet Vo at +1 404 812 5112 for more information. P. 5 / CBRE HOTELS' AMERICAS RESEARCH San Francisco Financial Benchmarks* -Full-Service Hotels HOTEL HORIZONS®DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEO San Francisco Forecast - Lower-Priced Hotels YEARPERIODOCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR Δ SUPPLY Δ DEMAND 2012Annual78.8%3.7%$116.5213.7%$91.7817.9%-1.2%2.5% 2013Annual80.7%2.4%$126.708.7%$102.2511.4%-1.7%0.7% 2014174.6%7.0%$117.8514.2%$87.9622.1%-2.8%4.0% 2014287.0%3.2%$140.3613.1%$122.0516.7%-2.3%0.8% 2014391.4%0.6%$164.6912.5%$150.5613.1%-0.9%-0.4% 2014479.2%1.4%$143.4512.0%$113.5413.6%-0.4%1.0% 2014Annual83.0%2.9%$142.7112.6%$118.5015.9%-1.6%1.2% 2015179.1%6.0%$134.2313.9%$106.1720.7%-0.1%5.9% 2015287.6%0.7%$153.029.0%$134.019.8%0.2%0.9% 2015390.3%-1.3%$177.838.0%$160.516.6%1.0%-0.3% 2015478.5%-0.8%$151.385.5%$118.834.7%0.5%-0.3% 2015Annual83.9%1.0%$154.928.6%$129.929.6%0.4%1.4% 2016177.7%-1.8%$152.8113.8%$118.7511.8%0.3%-1.4% 2016285.6%-2.3%$163.727.0%$140.074.5%0.4%-1.9% 2016387.6%-2.9%$178.310.3%$156.26-2.7%-0.4%-3.3% 2016477.1%-1.8%$153.031.1%$118.02-0.7%-0.2%-1.9% 2016Annual82.0%-2.2%$162.524.9%$133.272.6%0.0%-2.2% 2017177.0%-0.9%$153.540.5%$118.25-0.4%0.0%-0.9% 2017284.0%-1.8%$154.65-5.5%$129.88-7.3%0.0%-1.8% 2017387.3%-0.4%$178.910.3%$156.11-0.1%0.2%-0.2% 2017F476.4%-0.9%$155.191.4%$118.630.5%0.3%-0.6% 2017FAnnual81.2%-1.0%$161.04-0.9%$130.72-1.9%0.1%-0.9% 2018FAnnual80.4%-0.9%$164.362.1%$132.161.1%1.0%0.1% 2019FAnnual80.7%0.4%$169.062.9%$136.523.3%1.3%1.7% 2020FAnnual81.5%1.0%$173.792.8%$141.703.8%1.3%2.2% 2021FAnnual82.8%1.5%$178.772.9%$147.974.4%1.3%2.8% 2016 3QYear to Date83.6%-2.4%$165.446.0%$138.363.5%0.1%-2.3% 2017 3QYear to Date82.8%-1.0%$162.84-1.6%$134.76-2.6%0.1%-1.0% 2017 3QTrailing 4 Qtrs81.3%-1.2%$160.52-1.0%$130.58-2.2%0.0%-1.2% Source: CBRE Hotels' Americas Research, STR, Q3 2017 LIMITED-SERVICE HOTELS - PERCENT OF TOTAL REVENUE - 2016 Financial Line Item Mountain / Pacific Region ADR Over $115†Under 100 Rooms‡ Rooms Revenue 97.5%97.1%98.4% Food and Beverage Revenue 0.0%0.0%0.0% Total Departmental Expenses 25.5%23.2%26.6% Total Departmental Profit 74.5%76.8%73.4% Total Undistributed Expenses 26.9%27.9%31.0% Gross Operating Profit**47.5%48.9%42.4% *Data from 2017 Trends ® in the Hotel Industry report †San Francisco Lower-Price Average ADR: $162.52 **Before deductions for management fees and non-operating income and expenses.‡San Francisco Lower-Price Average Size: 68 Rooms Source: CBRE Hotels' Americas Research, 2016 For a more comparable and detailed financial comparison, we recommend a BenchmarkerSM report. Please contact Viet Vo at +1 404 812 5112 for more information. P. 6 / CBRE HOTELS' AMERICAS RESEARCH San Francisco Financial Benchmarks* -Limited-Service Hotels DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® San Francisco Airbnb Summary Figure 1: October 2016 – September 2017 Airbnb Performance METRIC 2017Y-o-Y CHANGE Occupancy64.0%3.5% ADR$194.340.5% RevPAR$124.304.1% Available Supply2,325,39714.8% Units Sold1,487,49618.8% Total Revenue$289,205,97619.5% Source: Airdna, CBRE Hotels' Americas Research, Q3 2017 Figure 3: October 2016 – September 2017 Active Units by Month Figure 4: October 2016 – September 2017 ADRs by Unit Type and Bedroom Count Detailed Report on Airbnb data for any U.S. Market Can be found at: https://pip.cbrehotels.com/airbnbinsights P. 7 / CBRE HOTELS' AMERICAS RESEARCH Below is an overview of Airbnb’s presence in this market. The estimates of Airbnb performance come from Airdna, a firm that provides data and analytics on Airbnb rental performance for 4 million+ Airbnb listings worldwide. Figure 1 shows the total number of units available, sold and revenue generated during from July 2016 – June 2017 along with the calculated Occupancy, Average Daily Rate(ADR), RevPAR, and year-over-year growth rates. Figure 2 shows the percent of units and revenue by unit type. Figure 3 shows the average daily number of active Airbnb units by month. Figure 4 lists the ADRs broken down by unit types and number of bed rooms over the past 12 months. More detailed reports on Airbnb performance in this market can be found at https://pip.cbrehotels.com/airbnbinsights. Figure 2: Percent of Active Units and Revenue by Listing Type 58.0% 38.7% 3.3% 2017 TTM Active Units 77.7% 21.6% 0.8% 2017 TTM Revenue -20% -10% 0% 10% 20% 30% 40% 50% 60% 0 2,000 4,000 6,000 8,000 10,000 OCT 2016NOV 2016DEC 2016JAN 2017FEB 2017MAR 2017APR 2017MAY 2017JUN 2017JUL 2017AUG 2017SEP 2017 Y- O - Y C h a n g e Ac t i v e U n i t s Active Units Y-o-Y Change $180.23 $279.71 $401.42 $641.98 $106.44 $51.65 0200400600800 1 2 3 4+ En t i r e h o m e / a p t Pr i v a t e ro o m Sh a r e d ro o m Bedrooms 2017 Average Daily Rate ($)Glossary Active Units -a unit is considered active if it had at least one night sold during the month Average Daily Rate (ADR)-The revenue collected divided by the units sold. Bedrooms -The number of rooms that are available within each unit. Unit Types: Entire Home -The guest has complete and sole access to the entire Unit during the stay. Private Room -The guest has their own sleeping area, but shares access to the Unit common areas with others. Shared Room -The guest rents a common area, like an airbed in a living room. DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Entire Home/Apt Private Room Shared Room National Horizon Profile 2 Albany 3 Dayton 3 Milwaukee 2 Raleigh-Durham 2 Albuquerque 1 Denver 2 Minneapolis 3 Richmond 2 Anaheim 2 Detroit 2 Nashville 3 Sacramento 2 Atlanta 2 Fort Lauderdale 2 New Orleans 2 Saint Louis 2 Austin 2 Fort Worth 1 New York 3 Salt Lake City 2 Baltimore 2 Hartford 2 Newark 3 San Antonio 2 Boston 1 Houston 2 Norfolk-VA Beach 3 San Diego 1 Charleston 2 Indianapolis 3 Oahu 2 San Francisco 2 Charlotte 3 Jacksonville 2 Oakland 2 San Jose-Santa Cruz 3 Chicago 2 Kansas City 1 Omaha 1 Savannah 3 Cincinnati 2 Long Island 2 Orlando 1 Seattle 2 Cleveland 2 Los Angeles 2 Philadelphia 2 Tampa 3 Columbia 3 Louisville 2 Phoenix 3 Tucson 3 Columbus 2 Memphis 1 Pittsburgh 2 Washington DC 2 Dallas 2 Miami 2 Portland 2 West Palm Beach Less Than 0%Between 0% and 3%Greater Than 3% Source: CBRE Hotels' Americas Research, STR, Q3 2017 This page showcases the CBRE Hotels' Americas Research Hotel Horizons ® forecasting universe. The map below displays average RevPAR change for 2018. Quarterly Hotel Horizons ® reports are available for the nation and all the markets shown below. P. 8 | CBRE HOTELS' AMERICAS RESEARCH DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEO 2018 Average Annual RevPAR Change https://pip.cbrehotels.com HOTEL HORIZONS® San Francisco Market Profile Total Room Supply:52,408 UPPER-PRICED BRANDS PROPERTIESROOMS% MARKETLOWER-PRICED BRANDS PROPERTIESROOMS% MARKET Hilton 43,8867.4%Holiday Inn 51,8653.6% Marriott 53,3486.4%Best Western Plus 78391.6% Westin 32,2734.3%Travelodge 74940.9% Courtyard 91,6523.2%Extended Stay America 44730.9% Hyatt Regency 21,5933.0%Comfort Inn 54400.8% Source: STR, Q3 2017 PHASE PROPERTIESROOMS% MARKETPROPERTIESROOMS% MARKETPROPERTIESROOMS% MARKET Unconfirmed 000.0%24180.8%000.0% Planning 193,5736.8%55581.1%1750.1% Final Planning 101,4442.8%45031.0%000.0% In Construction 81,5823.0%32210.4%000.0% Total 376,59912.6%141,7003.2%1750.1% Source: STR, CBRE Hotels' Americas Research, Q3 2017 Source: STR, Q3 2017 *Formerly Pre-Planning P. 9 / CBRE HOTELS' AMERICAS RESEARCH Unclassified / IndependentUpper-PricedLower-Priced San Francisco Top Brands San Francisco Supply Pipeline Pipeline Status Definitions DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Unconfirmed*Potential projects that remain unconfirmed at this time. STR is unable to verify the existence of these projects through a corporate chain feed or other verifiable source. Planning Confirmed, under contract projects where construction will begin in more than 12 months. Final Planning Confirmed, under contract projects where construction will begin within the next 12 months. In Construction Vertical construction on the physical building has begun. This does not include construction on any sub-grade structures including, but not limited to, parking garages, underground supports/footers or any other type of sub-grade construction. PHASE DEFINITION San Francisco Submarket Map Total Room Supply:52,408 Source: CBRE EA, Q3 2017 PropertiesRooms% MarketPropertiesRooms% MarketPropertiesRooms% Market Airport215,39510.3%403,5476.8%618,94217.1% Market Street5115,53429.6%383,1286.0%8918,66235.6% Nob Hill / Wharf5410,52320.1%744,7639.1%12815,28629.2% San Mateo / Redwood City173,0385.8%342,2594.3%515,29710.1% Extended Area242,2844.4%441,9373.7%684,2218.1% Total16736,77470.2%23015,63429.8%39752,408100.0% Source: STR, Q3 2017 P. 10 / CBRE HOTELS' AMERICAS RESEARCH UPPER-PRICEDLOWER-PRICEDTOTALSSUBMARKET San Francisco Submarket Summary DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Submarket Profile - Airport Total Room Supply:8,942 Airport Submarket Inventory UPPER-PRICED PROPERTIESROOMS%SUBMKTLOWER-PRICED PROPERTIESROOMS%SUBMKT Inventory 215,39560.3%Inventory 403,54739.7% UPPER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKTLOWER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKT Hyatt Regency 17898.8%Best Western Plus 24254.8% Marriott 16887.7%Holiday Inn 23964.4% Embassy Suites 26527.3%La Quinta Inns & Suites 22713.0% Airport Construction Pipeline Source: STR, Q3 2017 PHASE PROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKT Unconfirmed 000.0%000.0%000.0% Planning 000.0%1861.0%000.0% Final Planning 23283.7%11551.7%000.0% In Construction 13503.9%11101.2%000.0% TOTAL 36787.6%33513.9%000.0% Source: STR, CBRE Hotels' Americas Research, Q3 2017 Airport Performance - All Hotels All Hotels Penetration vs. Market Total YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR YEAROCCADRREVPAR 201282.0%-$121.80-$99.91-2012102.2%71.0%72.5% 201383.7%2.1%$132.719.0%$111.1011.2%2013101.2%70.8%71.7% 201484.8%1.3%$150.7113.6%$127.7615.0%2014100.9%72.4%73.1% 201585.8%1.2%$167.0510.8%$143.2912.2%2015101.6%75.2%76.4% 201684.1%-1.9%$174.494.5%$146.802.5%201699.8%75.6%75.5% 3Q16 YTD85.3%-2.2%$177.285.4%$151.253.1%3Q16 YTD99.7%75.5%75.3% 3Q17 YTD85.8%0.6%$177.04-0.1%$151.970.5%3Q17 YTD101.7%77.1%78.4% Airport Performance - Upper-Priced Hotels Source: STR, Q3 2017 YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201281.6%-$139.25-$113.57- 201383.8%2.7%$152.399.4%$127.6912.4% 201484.5%0.8%$173.0913.6%$146.2414.5% 201586.2%2.0%$191.7710.8%$165.3413.1% 201685.4%-0.9%$199.354.0%$170.263.0% 3Q16 YTD86.3%-1.1%$202.094.8%$174.503.6% 3Q17 YTD87.8%1.7%$201.32-0.4%$176.771.3% Airport Performance - Lower-Priced Hotels YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201282.7%-$97.70-$80.77- 201383.6%1.1%$104.166.6%$87.097.8% 201485.2%1.9%$118.0613.3%$100.5615.5% 201585.1%0.0%$130.7310.7%$111.3010.7% 201682.3%-3.4%$136.534.4%$112.310.9% 3Q16 YTD83.8%-3.9%$139.695.6%$117.061.5% 3Q17 YTD82.9%-1.0%$139.28-0.3%$115.53-1.3% Source: STR, Q3 2017 Source: STR, Q3 2017 P. 11 / CBRE HOTELS' AMERICAS RESEARCH UNCLASSIFIED/INDEPENDENT Submarket Rank* 78%2 *SubmarketRevPARpenetrationexpressedasapercentage ofthemarketRevPARfortheprevious4quarters. Directionofarrowindicatesifpenetrationisincreasingor decreasing relative to one year ago's performance. UPPER-PRICED LOWER-PRICED Out of 5 *Based on RevPAR change over the last 4 quarters. Submarket Penetration* The San Francisco Airport submarket consists of the hotels located near the San Francisco International Airport in San Mateo County. The hotels in this lodging submarket are located in such cities as Burlingame, Milbrae, and South San Francisco. 65 85 105 20122013201420152016 Market ADROcc RevPAR 80 90 100 110 20122013201420152016 Upper-Priced Penetration vs. Market Total Lower-Priced Penetration vs. Market Total DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Submarket Profile - Market Street Total Room Supply:18,662 Market Street Submarket Inventory UPPER-PRICED PROPERTIESROOMS%SUBMKTLOWER-PRICED PROPERTIESROOMS%SUBMKT Inventory 5115,53483.2%Inventory 383,12816.8% UPPER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKTLOWER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKT Hilton 22,94315.8%Holiday Inn 13882.1% Westin 21,87610.1%Best Western Plus 11430.8% Marriott 11,5008.0%Travelodge 1840.5% Market Street Construction Pipeline Source: STR, Q3 2017 PHASE PROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKT Unconfirmed 000.0%13001.6%000.0% Planning 122,64814.2%11811.0%1750.4% Final Planning 34972.7%000.0%000.0% In Construction 24282.3%000.0%000.0% TOTAL 173,57319.1%24812.6%1750.4% Source: STR, CBRE Hotels' Americas Research, Q3 2017 Market Street Performance - All Hotels All Hotels Penetration vs. Market Total YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR YEAROCCADRREVPAR 201280.4%-$194.66-$156.44-2012100.1%113.4%113.6% 201383.6%4.0%$213.089.5%$178.1013.8%2013101.0%113.7%114.9% 201484.5%1.1%$238.0711.7%$201.1612.9%2014100.6%114.4%115.1% 201584.9%0.5%$251.135.5%$213.236.0%2015100.6%113.1%113.7% 201685.7%0.9%$256.972.3%$220.113.2%2016101.7%111.3%113.2% 3Q16 YTD87.0%1.4%$261.633.7%$227.535.1%3Q16 YTD101.6%111.5%113.3% 3Q17 YTD85.9%-1.2%$252.94-3.3%$217.27-4.5%3Q17 YTD101.8%110.2%112.1% Market Street Performance - Upper-Priced Hotels Source: STR, Q3 2017 YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201280.9%-$209.07-$169.06- 201384.3%4.3%$227.288.7%$191.6713.4% 201485.0%0.8%$252.3211.0%$214.4211.9% 201585.3%0.4%$266.045.4%$226.995.9% 201686.0%0.8%$271.462.0%$233.562.9% 3Q16 YTD87.3%1.5%$276.543.4%$241.354.9% 3Q17 YTD86.0%-1.5%$267.64-3.2%$230.05-4.7% Market Street Performance - Lower-Priced Hotels YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201278.1%-$127.35-$99.46- 201380.1%2.5%$142.9512.3%$114.4715.1% 201482.1%2.5%$165.1615.5%$135.5718.4% 201582.9%1.0%$177.127.2%$146.838.3% 201683.8%1.1%$185.374.7%$155.395.8% 3Q16 YTD85.5%0.7%$188.456.2%$161.087.0% 3Q17 YTD85.6%0.2%$182.40-3.2%$156.22-3.0% Source: STR, Q3 2017 Source: STR, Q3 2017 UPPER-PRICED LOWER-PRICED UNCLASSIFIED/INDEPENDENT P. 12 / CBRE HOTELS' AMERICAS RESEARCH Submarket Rank*Submarket Penetration* 4112% Out of 5 *SubmarketRevPARpenetrationexpressedasapercentage ofthemarketRevPARfortheprevious4quarters. Directionofarrowindicatesifpenetrationisincreasingor decreasing relative to one year ago's performance. *Based on RevPAR change over the last 4 quarters. The San Francisco Market Street lodging submarket consists of the hotels located near the Moscone Convention Center, in the Financial District, and around Union Square. 95 100 105 110 20122013201420152016 95 105 115 125 20122013201420152016 Upper-Priced Penetration vs. Market Total Lower-Priced Penetration vs. Market Total DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Market ADROcc RevPAR Submarket Profile - Nob Hill / Wharf Total Room Supply:15,286 Nob Hill / Wharf Submarket Inventory UPPER-PRICED PROPERTIESROOMS%SUBMKTLOWER-PRICED PROPERTIESROOMS%SUBMKT Inventory 5410,52368.8%Inventory 744,76331.2% UPPER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKTLOWER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKT Hyatt Regency 18045.3%Holiday Inn 21,0817.1% Marriott 26854.5%Comfort Inn 11380.9% Joie De Vivre 56624.3%Travelodge 31220.8% Nob Hill / Wharf Construction Pipeline Source: STR, Q3 2017 PHASE PROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKT Unconfirmed 000.0%000.0%000.0% Planning 57154.7%1150.1%000.0% Final Planning 1560.4%000.0%000.0% In Construction 22551.7%000.0%000.0% TOTAL 81,0266.7%1150.1%000.0% Source: STR, CBRE Hotels' Americas Research, Q3 2017 Nob Hill / Wharf Performance - All Hotels All Hotels Penetration vs. Market Total YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR YEAROCCADRREVPAR 201282.3%-$186.38-$153.36-2012102.5%108.6%111.3% 201384.2%2.4%$205.0210.0%$172.6712.6%2013101.8%109.4%111.4% 201485.5%1.5%$225.7510.1%$193.0411.8%2014101.8%108.5%110.4% 201584.9%-0.7%$239.045.9%$202.965.1%2015100.6%107.6%108.3% 201685.1%0.3%$248.494.0%$211.544.2%2016101.0%107.7%108.8% 3Q16 YTD86.4%0.7%$253.595.3%$219.076.0%3Q16 YTD100.9%108.1%109.1% 3Q17 YTD84.2%-2.6%$246.36-2.9%$207.33-5.4%3Q17 YTD99.7%107.3%107.0% Nob Hill / Wharf Performance - Upper-Priced Hotels Source: STR, Q3 2017 YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201283.3%-$210.28-$175.16- 201385.7%2.9%$230.359.5%$197.3712.7% 201486.1%0.5%$253.149.9%$218.0210.5% 201585.0%-1.3%$265.905.0%$225.973.6% 201686.8%2.2%$274.313.2%$238.175.4% 3Q16 YTD88.0%2.7%$279.934.5%$246.237.3% 3Q17 YTD85.1%-3.2%$273.24-2.4%$232.59-5.5% Nob Hill / Wharf Performance - Lower-Priced Hotels YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201280.2%-$135.43-$108.61- 201381.1%1.2%$148.509.7%$120.4710.9% 201484.2%3.8%$165.9211.7%$139.7016.0% 201584.8%0.7%$180.458.8%$152.949.5% 201681.4%-4.0%$187.934.1%$152.960.0% 3Q16 YTD82.9%-3.6%$192.155.1%$159.331.3% 3Q17 YTD82.0%-1.1%$185.06-3.7%$151.82-4.7% Source: STR, Q3 2017 Source: STR, Q3 2017 UPPER-PRICED LOWER-PRICED UNCLASSIFIED/INDEPENDENT P. 13 / CBRE HOTELS' AMERICAS RESEARCH Submarket Rank*Submarket Penetration* 5107% Out of 5 *SubmarketRevPARpenetrationexpressedasapercentage ofthemarketRevPARfortheprevious4quarters. Directionofarrowindicatesifpenetrationisincreasingor decreasing relative to one year ago's performance. *Based on RevPAR change over the last 4 quarters. The San Francisco Nob Hill / Wharf submarket consists of the hotels located along Fisherman’s Wharf, atop Nob Hill, in the Marina district, and into the western sectors to the Pacific Ocean. 95 105 115 20122013201420152016 95 105 115 125 20122013201420152016 Upper-Priced Penetration vs. Market Total Lower-Priced Penetration vs. Market Total DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Market ADROcc RevPAR Submarket Profile - San Mateo / Redwood City Total Room Supply:5,297 San Mateo / Redwood City Submarket Inventory UPPER-PRICED PROPERTIESROOMS%SUBMKTLOWER-PRICED PROPERTIESROOMS%SUBMKT Inventory 173,03857.4%Inventory 342,25942.6% UPPER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKTLOWER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKT Marriott 14759.0%Extended Stay America 33616.8% Pullman 14217.9%Motel 6 12665.0% Crowne Plaza 13536.7%TownePlace Suites 22164.1% San Mateo / Redwood City Construction Pipeline Source: STR, Q3 2017 PHASE PROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKT Unconfirmed 000.0%000.0%000.0% Planning 000.0%22765.2%000.0% Final Planning 34598.7%22484.7%000.0% In Construction 354910.4%1651.2%000.0% TOTAL 61,00819.0%558911.1%000.0% Source: STR, CBRE Hotels' Americas Research, Q3 2017 San Mateo / Redwood City Performance - All Hotels All Hotels Penetration vs. Market Total YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR YEAROCCADRREVPAR 201277.5%-$143.18-$111.03-201296.6%83.4%80.6% 201379.7%2.8%$153.687.3%$122.4510.3%201396.3%82.0%79.0% 201481.2%1.9%$166.978.6%$135.5110.7%201496.6%80.2%77.5% 201582.0%1.1%$188.3012.8%$154.4914.0%201597.2%84.8%82.4% 201679.9%-2.6%$200.446.4%$160.173.7%201694.8%86.8%82.4% 3Q16 YTD81.6%-3.0%$201.797.9%$164.694.6%3Q16 YTD95.4%86.0%82.0% 3Q17 YTD80.0%-2.0%$206.792.5%$165.390.4%3Q17 YTD94.7%90.1%85.4% San Mateo / Redwood City Performance - Upper-Priced Hotels Source: STR, Q3 2017 YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201278.8%-$183.32-$144.49- 201379.0%0.2%$199.568.9%$157.599.1% 201480.2%1.5%$214.417.4%$171.939.1% 201581.4%1.5%$239.9011.9%$195.1713.5% 201679.1%-2.8%$254.736.2%$201.383.2% 3Q16 YTD80.5%-3.3%$256.887.6%$206.754.0% 3Q17 YTD80.0%-0.7%$258.640.7%$206.810.0% San Mateo / Redwood City Performance - Lower-Priced Hotels YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201276.0%-$93.44-$71.04- 201380.5%5.9%$100.007.0%$80.5213.4% 201482.3%2.2%$111.8211.8%$92.0414.3% 201582.9%0.7%$125.6012.3%$104.1313.1% 201681.0%-2.3%$133.596.4%$108.193.9% 3Q16 YTD83.0%-2.7%$134.447.5%$111.644.7% 3Q17 YTD80.0%-3.7%$138.483.0%$110.78-0.8% Source: STR, Q3 2017 Source: STR, Q3 2017 UPPER-PRICED LOWER-PRICED UNCLASSIFIED/INDEPENDENT P. 14 / CBRE HOTELS' AMERICAS RESEARCH Submarket Rank*Submarket Penetration* 185% Out of 5 *SubmarketRevPARpenetrationexpressedasapercentage ofthemarketRevPARfortheprevious4quarters. Directionofarrowindicatesifpenetrationisincreasingor decreasing relative to one year ago's performance. *Based on RevPAR change over the last 4 quarters. The San Mateo / Redwood City submarket is located south of the San Francisco International airport area along the San Francisco Bay. It extends from San Mateo in the north to Palo Alto in the south. Hotels in this area border the northern edge of Silicon Valley. 80 90 100 110 20122013201420152016 65 85 105 20122013201420152016 Upper-Priced Penetration vs. Market Total Lower-Priced Penetration vs. Market Total DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Market ADROcc RevPAR Submarket Profile - Extended Area Total Room Supply:4,221 Extended Area Submarket Inventory UPPER-PRICED PROPERTIESROOMS%SUBMKTLOWER-PRICED PROPERTIESROOMS%SUBMKT Inventory 242,28454.1%Inventory 441,93745.9% UPPER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKTLOWER-PRICED BRANDS BY SHAREPROPERTIESROOMS%SUBMKT Courtyard 22826.7%Best Western Plus 22054.9% Ritz-Carlton 12616.2%Americas Best Value Inn 51523.6% Embassy Suites 12365.6%Best Western 21413.3% Extended Area Construction Pipeline Source: STR, Q3 2017 PHASE PROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKTPROPERTIESROOMS%SUBMKT Unconfirmed 000.0%11182.8%000.0% Planning 22105.0%000.0%000.0% Final Planning 11042.5%11002.4%000.0% In Construction 000.0%1461.1%000.0% TOTAL 33147.4%32646.3%000.0% Source: STR, CBRE Hotels' Americas Research, Q3 2017 Extended Area Performance - All Hotels All Hotels Penetration vs. Market Total YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR YEAROCCADRREVPAR 201272.4%-$149.42-$108.13-201290.2%87.1%78.5% 201375.7%4.7%$160.587.5%$121.6112.5%201391.5%85.7%78.5% 201478.7%3.9%$177.2010.3%$139.3714.6%201493.6%85.2%79.7% 201580.6%2.5%$188.786.5%$152.239.2%201595.5%85.0%81.2% 201680.4%-0.2%$198.185.0%$159.424.7%201695.5%85.9%82.0% 3Q16 YTD81.8%0.1%$199.236.0%$162.996.1%3Q16 YTD95.6%84.9%81.1% 3Q17 YTD81.3%-0.6%$201.271.0%$163.600.4%3Q17 YTD96.3%87.7%84.4% Extended Area Performance - Upper-Priced Hotels Source: STR, Q3 2017 YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201272.4%-$183.13-$132.54- 201375.6%4.5%$196.667.4%$148.7512.2% 201478.5%3.8%$217.7410.7%$170.9915.0% 201579.5%1.2%$236.738.7%$188.0910.0% 201679.7%0.3%$247.094.4%$197.014.7% 3Q16 YTD81.0%1.1%$248.205.3%$201.156.5% 3Q17 YTD80.2%-1.0%$250.230.8%$200.74-0.2% Extended Area Performance - Lower-Priced Hotels YEAROCC Δ OCC ADR Δ ADR REVPAR Δ REVPAR 201272.3%-$109.57-$79.27- 201375.8%4.8%$118.067.7%$89.5413.0% 201478.8%3.9%$129.619.8%$102.1214.1% 201582.0%4.1%$134.053.4%$109.967.7% 201681.3%-0.9%$141.645.7%$115.124.7% 3Q16 YTD82.7%-1.0%$142.686.4%$118.015.3% 3Q17 YTD82.5%-0.2%$145.171.7%$119.831.5% Source: STR, Q3 2017 Source: STR, Q3 2017 UPPER-PRICED LOWER-PRICED UNCLASSIFIED/INDEPENDENT P. 15 / CBRE HOTELS' AMERICAS RESEARCH Submarket Rank*Submarket Penetration* 384% Out of 5 *SubmarketRevPARpenetrationexpressedasapercentage ofthemarketRevPARfortheprevious4quarters. Directionofarrowindicatesifpenetrationisincreasingor decreasing relative to one year ago's performance. *Based on RevPAR change over the last 4 quarters. The San Francisco Extended submarket covers a wide variety of suburban areas. It includes Marin County to the north and the Pacific Coastal cities of Pacifica and Half Moon Bay to the south. 70 90 20122013201420152016 75 85 95 105 20122013201420152016 Upper-Priced Penetration vs. Market Total Lower-Priced Penetration vs. Market Total DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Market ADROcc RevPAR Fairmont Embassy Suites Courtyard by Marriott Best Western PlusBest Western Days Inn Four Seasons Hilton Crowne Plaza Comfort Inn Red Lion Econo Lodge Loews Hyatt Hyatt Place Hampton Inn La Quinta Extended Stay America Ritz Carlton Marriott Radisson Holiday Inn Mainstay Suites Red Roof W Hotels Westin Residence Inn TownePlace SuitesQuality Inn Value Place Exhibit 1 Exhibits 2 - 5 Exhibit 6 Exhibits 7 - 9 Exhibits 10 - 12 Exhibit 13 Upper-Priced Lower-Priced P. 16 / CBRE HOTELS' AMERICAS RESEARCH The financial benchmarks come from the 2017 edition (2016 data) of Trends ® in the Hotel Industry , CBRE Hotels’ Americas Research’s annual analysis of hotel financial statements from thousands of properties located across the nation. To benchmark the performance of hotels in the local market, we relied on national operating data from hotels of a similar profile to the average hotel in the subject market. The average room count, occupancy, and ADR of upper-priced hotels were used to analyze the performance of full-service hotels. The average room count, occupancy, and ADR of lower-priced hotels were used to analyze the performance of limited-service hotels. For a more in-depth report with a custom comparable set designed for your individual property or the subject market, see our CBRE Hotels’ Benchmarker SM service. (pip.cbrehotels.com) Econometric forecasting represents one of the most sophisticated approaches to gaining insight into future economic activity. Unlike some forecasting methods used in business practice, the models that underlie econometric forecasts contain variables based in economic theory. The forecasts come from historical relationships, similar to statistical correlations, among hotel market measures and economic variables. The measures for the variables come from actual market transactions involving individuals and firms interacting in the economy. Positive Features of Econometric Models: • The variables included in the models follow from economic theory. • The relationships between variables are estimated with advanced statistical methods. • The forecasts developed with econometric models are objectively determined, unlike forecasts based only on judgmental approaches. Occupancy levels, ADR change and RevPAR change are plotted on a fixed "grade" scale. Measured as current value minus the mean, divided by the series' standard deviation. Grades: A: Very strong, greater than one standard deviation above long run average. B: Strong, within one standard deviation above long run average C: Somewhat weak, within one standard deviation below long run average. D: Weak, below one standard deviation of the long run average. Year over year change in Income, Employment, RevPAR and Demand, displayed as annual (Exhibits 2 and 3) and quarterly (Exhibits 4 and 5). Average annual Employment, Consumer Price Index, Gross Domestic Product, and Real Personal Income change for the MSA. Index based change charts with base year 2012 = 100, illustrating the magnitude of change. Compound average annual RevPAR, Demand and Supply change for Upper Priced, Lower Priced, and combined (All) hotels within the MSA. Real RevPAR change (inflation adjusted, CPI) of the current period minus the historical mean of Real RevPAR change, divided by the historical standard deviation of Real RevPAR change. CBRE Hotels' Americas Research prepares hotel market forecasts based on accepted econometric procedures and sound judgment. The two-stage process for producing the forecasts firstly involves econometric estimation of future hotel market activity and financial performance based on historical relationships between economic and hotel market variables, and secondly, a judgmental review of modeled outputs by experienced hotel market analysts. CBRE Hotels and others believe that errors in forecasting are minimized by relying on both data analytics and judgment. EXHIBIT DEFINITIONS FINANCIAL BENCHMARKS HOW WE FORECAST ECONOMETRIC MODELS MARKET SEGMENTS -REPRESENTATIVE BRANDS DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® Economic Data from October 2017 Hotel Data from September 2017 P. 17 / CBRE HOTELS' AMERICAS RESEARCH Gaining insight into the futures of complicated economic environments requires the introduction of multi-level forecasting models. Several equations often need to be identified and estimated to model complex economic conditions such as the national economy. Multi-equation models have considerable appeal for economic forecasting because they explicitly recognize the interdependence of relationships commonly encountered in markets. Perhaps the best example of this type of model is one that involves both the demand side and the supply side of markets, in which prices of goods are set by the interaction of buyers and sellers. Thus, price appears as a variable in both the demand and supply equations. A committee of hotel experts from CBRE Hotels' Americas Research performs a thorough review of each model prediction. These assessments are made by locally-based hotel experts working in the various offices around the U.S. The quarterly forecasts for the current and forecast period years are subject to review. The committee modifies the model’s market prediction when there is compelling evidence that factors have come into play that the model could not possibly foresee. A Super Bowl-type event, as an extreme example, would cause the committee’s forecast to differ noticeably from the model's prediction—not only in the city in which the event will occur, but also competing cities within the region. In most instances, however, the committee either defers to the model prediction or makes modest adjustments. The Hotel Horizons ® econometric forecasting models fall into the category of multi-equation, demand and supply models. These models have the structure defined below, but vary in their construction for particular market applications (e.g., different cities and hotel market segments). The three estimated equations are: 1. Demand for hotel rooms is primarily driven by the general level of economic activity in the nation or city, as measured by income and employment. The equation recognizes the fundamental relationship between room purchasing behavior and either growth or decline in the relevant economy. Both economic theory and historical data relationships strongly support the inclusion of ADR in the demand equation because lower ADRs motivate increases in travel and leisure spending, while higher ADRs motivate decreases. 2. Supply change - In historical lodging data, a strong relationship exists between growth in the supply of new hotel rooms and prior- period lodging market conditions. In the equation, new hotel room growth in modeled as a function of past levels of new room growth, past ADR, and past occupancy levels. 3. ADR movements are correlated with room scarcity in the market. The equation which estimates ADR defines ADR as a function of past room rates and contemporaneous occupancy levels. The parameters (i.e., coefficients on each variable) then are used to forecast demand, supply change, and RADR by multiplying the parameters by CBRE Econometric Advisors and Moody’s Analytics forecasts of the economic variables and relevant previously estimated values (lagged variables). Three additional calculations are made with these results, as follows: 1. Supply change is added to the previous-period number of available rooms to produce an available rooms level in future periods. 2. Number of rooms sold is divided by number of available rooms to obtain occupancy percent in each future period. 3. Expected inflation is added to real ADR to convert to nominal ADR. JUDGMENTAL INTERVENTION THE EQUATIONS DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® What Has Changed Since The Last Report? 2017 20182019 1st Qtr2nd Qtr3rd Qtr4th Qtr FYear EndYear EndYear End This Report-0.5%-0.4%0.9%2.7%0.7%3.2%4.6% Last Report1.3%2.6%4.2%4.8%3.2%3.7%4.6% This Report2.8%2.2%1.7%1.6%2.0%1.0%0.3% Last Report2.8%2.2%1.7%1.5%2.0%0.8%0.0% This Report-0.5%-0.1%0.6%0.8%0.2%2.8%1.7% Last Report-0.5%-0.1%0.9%2.1%0.6%3.1%2.1% This Report-2.2%-2.1%0.1%0.2%-1.0%2.1%2.4% Last Report-2.2%-2.1%0.2%-0.3%-1.1%1.1%2.7% This Report-1.7%-2.0%-0.5%-0.6%-1.2%-0.7%0.7% Last Report-1.7%-2.0%-0.7%-2.4%-1.7%-2.0%0.5% This Report-0.2%-6.3%-0.2%-0.4%-1.8%1.7%2.9% Last Report-0.2%-6.3%-7.5%-3.5%-4.5%1.1%2.3% This Report-1.9%-8.2%-0.7%-1.1%-3.0%1.1%3.6% Last Report-1.9%-8.2%-8.1%-5.8%-6.1%-0.9%2.9% * Economic data (history and forecast) are from CBRE EA, Q3 2017 ** Hotel performance data: History supplied by STR; Forecast developed by CBRE Hotels' Americas Research, Q3 2017 Source: CBRE Hotels' Americas Research, Q3 2017 P. 18 / CBRE HOTELS' AMERICAS RESEARCH 2017 and 2018 Year End Forecast Change in RevPAR At the beginning of each year, STR, our source for historical lodging data, repositions the chain-scale classifications for branded properties, and chain-class categories for independent hotels. The reclassifications are based on the ADR achieved the prior year. Because of these reclassifications, the historical data presented in this report may differ from the historical data presented in prior Hotel Horizons ® reports. Further, the reclassifications may have influenced our forecasts of future performance. Forecasts are valuable tools for developing expectations of key variables. Changes to forecasts occur for two primary reasons. The first is adjustments to historical series made by the data provider, causing future periods to vary due to changes in their base. The second is that economic expectations tend to shift as more information becomes available, thus moving the hotel variables according to their underlying relationships. We are constantly re-evaluating the performance of our forecasts, and presented below is a view on how the world has changed since the September - November 2017 issue, presented in same period, prior year change format. All data under "This Report" are actual through 3rd Quarter 2017. Data marked as "Last Report" are actual through 2nd Quarter 2017, with 3rd Quarter 2017 being the first forecast period for that report. As noted on earlier pages, all of the hotel variables below are modeled using data from Moody's Analytics. It is important to note that all historical data are subject to revision. -3.0% 1.1% -6.1% -0.9% 2017 2018 This Report Last Report 2018 2019 CHANGE IN REAL PERSONAL INCOME* CHANGE IN TOTAL PAYROLL EMPLOYMENT* CHANGE IN SUPPLY** CHANGE IN DEMAND** CHANGE IN OCCUPANCY** CHANGE IN ADR** CHANGE IN REVPAR** DECEMBER 2017 -FEBRUARY 2018 EDITION SAN FRANCISCO / SAN MATEOHOTEL HORIZONS® 2017 2017 ADR Occupancy RevPAR Supply Demand LRA Penetration Standard Deviation CBRE HOTELSCBRE HOTELS DallasNew York LEADERSHIPCONSULTING Jeff Binford Mark VanStekelenburg [email protected] [email protected] Kevin Mallory National Practice Leader CBRE Hotels' Global Head Tom Huffsmith Houston Philadelphia [email protected] Senior Managing Director Randy McCaslin Tony Biddle [email protected] [email protected]@cbre.com CBRE HOTELS Daniel C. Hanrahan II AMERICAS RESEARCH AtlantaIndianapolis [email protected] Scott Smith Mark Eble Mark Woodworth [email protected] [email protected] San Francisco Senior Managing Director Jill BidwellChris Kraus [email protected]@cbre.com Jacksonville [email protected] Hank Staley Jack Corgel Bozeman [email protected] Seattle Managing Director Chris KrausChris Kraus [email protected] [email protected] Los Angeles [email protected] Bruce Baltin Jamie Lane Chicago [email protected] Washington, D.C. Senior Economist Mark EbleJeff LugosiKannan Sankaran [email protected] [email protected] [email protected] [email protected] For more reports visit our store at https://pip.cbrehotels.com/ GLOSSARY OF TERMS DECEMBER 2017 -FEBRUARY 2018 EDITIONSAN FRANCISCO / SAN MATEOHOTEL HORIZONS® For more information about this market please contact: Chris Kraus at [email protected] Average Daily Rate -rooms revenue divided by paid rooms occupied. Revenue per Available Room -rooms revenue divided by available rooms. (AccommodatedDemand)Averagedailyroomnightsoccupiedperquarter,representedasachangeover previousyear,samequarterexceptwherenotedannually. LongRunAverage-Annualaveragefrom1988tolastcompleteyearend. Average daily room nights available per quarter, represented as a change over previous year, same quarter except where noted annually. Marketarea(orsub-marketarea)measurementasapercentofnational(ormarketarea)measurement. Theplottingofanormaldataseriesandhowfareachindividualdatapointliesfromthemean:68.2% oftheserieswillfallwithin1standarddeviation,95.4%ofalldatapointswillfallwithin2standard deviations,and99.7%fallingwithin3standarddeviationsofthemean. Paid rooms occupied divided by available rooms. Hotel Horizons® is compiled and produced by CBRE Hotels | Americas Research. Readers are advised that CBRE Hotels’ Americas Research do not represent the data herein to be definitive, neither should the contents be construed as a recommendation on policies or actions. Quotation, reproduction or transmittal (in any form or by any means, whether electronic, photocopying, recording or otherwise) is not permitted without consent from CBRE Hotels’ Americas Research. Please address inquiries to Hotel Horizons®, 3280 Peachtree Road NE, Suite 1400, Atlanta, GA 30305. Phone: (855) 223-1200. Copyright © 2017 CBRE Hotels’ Americas Research. All rights reserved. 1 | Page REQUEST FOR PROPOSALS For the Development of a High-Quality, Waterfront Hotel at Oyster Point Located in South San Francisco, California Issued July 28, 2017 Deadline to submit responses: Wednesday, October 25, 2017 by 5:00pm PST CONTACT: Ernesto Lucero, Economic Development Coordinator (650) 829-6620 or [email protected] 2 | Page Table of Contents 1.0 Background and City Goals Page 3 2.0 Submittal Requirements Page 11 3.0 Phase II RFP – Evaluation and Selection Process Page 15 4.0 Term Sheet Negotiations Page 17 5.0 Other Important Information Page 18 6.0 Appendices Page 19 3 | Page The City of South San Francisco (“City”) is pleased to issue a Request for Proposals (“RFP”) to the approved Developer Short List. This 90-day solicitation will conclude on October 25, 2017. Any additional information on the hotel site or surrounding development that becomes available during this RFP period will be provided directly to the Developer Short List. 1.0 Background and City Goals 1.1 Oyster Point Development Oyster Point Development 4 | Page The vision of the redevelopment of Oyster Point is to transform 81 acres of underutilized and under developed bay front land in South San Francisco into a sustainable mixed-use development that will include a state-of-the-art life science campus, a park and recreation destination, a vibrant marina environment, and a site that can accommodate commercial and hotel land uses. This vision will be achieved by implementing innovative sustainable design approaches, superior architecture, and urban design. The existing Development Agreement (DA) and Disposition and Development Agreement (DDA), between the City and Developer, Oyster Point Development, consists of the redevelopment of a multi-phased project that will include over 2.25 million square feet of office/research and development (R&D) space, the proposed hotel development, retail, and public open space. In 2011, the Oyster Point Specific Plan (OPSP) and related entitlements were approved to allow for the development of the 2.25 million square feet of office/R&D uses across an approximately 41.4 acre developer-owned site to be built out in four Phases (ID, IID, IIID, IVD). In addition, two phases of infrastructure and open -space improvements were approved throughout the site and across the adjacent 40-acre site owned by the City (Phases IC and IIC). The hotel site is located at the eastern edge of the Phase IC improvement area. Phase ID is proposed to include approximately 508,000 SF of Office/R&D buildings on a site of approximately 10 acres and Phase IC is proposed to include infrastructure and open space improvements across approximately 25 acres. The Phase I Precise Plan, which outlined the detailed design of Phase ID and Phase IC, was approved concurrently with the Oyster Point Specific Plan in 2011. 5 | Page Phases IID through IVD were entitled for approximately 1,750,000 SF of Office/R&D buildings. This would also include new infrastructure and open space improvements consisting of the continuation of the streets, sidewalks and utilities from Phase IC, a new sewer pum p station, bicycle facilities, shuttle bus stops, and new open spaces including courtyards, plazas, parks, recreation facilities and Bay Trail improvements along the Oyster Cove Marina shoreline (subject to BCDC guidelines and approval). Phase IIC at the eastern portion of the Oyster Point Specific Plan was conceptually developed in 2011 to include minor landscape, parking and landfill cap improvements. Detailed designs of these improvements have not yet been finalized. The City is in the process of beginning a Master Planning effort that will include the public areas within Phase IIC and the open space parcel within Phase 1C. In January 2017, Oyster Point Development proposed modifications to Phases IIID and IVD of the Oyster Point Specific Plan (Chapter 20.230 of the South San Francisco Zoning Ordinance) and related entitlements to include residential and commercial uses. The new proposed residential component of the project could add up t o 1,191 new housing units to the project. The illustration on page 6 shows the potential residential component to the project.  DDA and DA (2011)  Oyster Point Specific Plan (2011)  City Land Use Online Tool  Business Journal Article – Newly Proposed Residential at Oyster Point 6 | Page 1.2 Infrastructure and Construction Sequence Project Infrastructure The Project will require the construction of infrastructure to serve the proposed uses. This infrastructure includes the following:  A new street configuration with updated traffic signalization to provide a more rational circulation system throughout the project.  A new sanitary sewer system connecting into the existing sewer system. This system would include the replacement of one existing pump station and provisions for an additional pump station in the future.  A new stormwater drainage system to collect, filter/treat and discharge into the Bay.  A new domestic water distribution system and fire truck access.  A new join utility trench system including electrical power and telecommunication services. 7 | Page  An updated landfill closure system with an improved impermeable clay layer, methane mitigation and monitoring systems. Phase I Infrastructure Construction The initial phase of the Project’s construction will include the installation of necessary infrastructure to support the office/R&D development, the public amenities at Oyster Point Marina and the future hotel and commercial uses. Vehicular access to the existing Oyster Point Boulevard will remain intact throughout this phase. Temporary access to the remainder of the Oyster Point Marina will also be maintained throughout this phase. The possible sequence of construction is as follows:  Demolition of the Oyster Point Inn, adjacent office building, entry kiosk and marine services building.  Construction of the reconfigured Oyster Point and Marina Boulevard intersection.  Installation of the proposed utilities in Oyster Point and Marina Boulevard.  Relocation of sewer pump station #1 adjacent to 377 Oyster Point Boulevard.  Site work, landfill cover modifications, and grading for Phase ID of the office/R&D development, open space and future hotel site. Phase I of the Office/R&D Development and Open Space Once the new road configuration and site work is complete, construction can begin on Phase I D of the office/R&D development. Work to be completed during this phase will include:  Construction of 508,000 to 600,000 square feet of office/R&D space and podium garage structure on the 10-acre site to the south of Oyster Point Boulevard.  Completion of the open space on the 3.8-acre site to the west of the hotel site.  Completion of the open space and associated parking area to the north of the new Marina Boulevard. Phases IID-IVD of Office/R&D These phases will include:  Phased demolition of the buildings at 375 to 389 Oyster Point Boulevard.  Grading and site preparation.  Completion of the northern extent of the new roadway and utilities.  Construction of additional office/R&D buildings and supporting parking structures. Each phase will include approximately 500,000 to 600,000 square feet of space.  Construction of the associated outdoor plazas, courtyards and open space.  Improvement in the Bay Trail on the northern and western portions of Oyster Point. 8 | Page Future Phases at Oyster Point Marina This work will include:  Construction of the proposed hotel.  Additional landfill cover modifications at the eastern portions of Oyster Point Marina as required.  Landscaping and Bay Trail improvements at all areas east of the open space. Infrastructure Financing – Community Facilities District The infrastructure improvements necessary for development of the Specific Plan District are proposed to be financed through a Community Facilities District (CFD). The formation process is currently underway. 1.3 Hotel Development Site APN 015-010-600 Owner City of South San Francisco. City will retain ownership of site, and enter into a ground lease agreement at FMV with the selected developer. Area The total developable site is approximately 4.7 acres. Hotel Exhibit Parcel Map Zoning Oyster Point Specific Plan Municipal Code: Chapter 20.230 Parking Municipal Code: Chapter 20.330 Entitlements CEQA clearance has been approved for up to 350 rooms. Current Site Conditions Since this area sits on top of a closed landfill, work will be performed to grade the area and recap the existing landfill. This work is projected to be completed in Q3 2018. San Francisco Bay Conservation and Development Commission (BCDC) BCDC will not have jurisdiction over the specific hotel site. However, the City has a desire for a north-south connectivity bay trail access point within the hotel site, and would encourage the design to include this connectivity to trails. 9 | Page 1.4 Existing Site Conditions In preparation for a proposed hotel, the City -owned hotel site will undergo significant site preparation in 2017/18. The existing structures and uses will be demolished, and the closed landfill that sits below the majority of the Oyster Point peninsula will be opened , relocated on site, and covered with a new clay cap for purposes of grading the area for new development. This work is planned to be completed in Q3/Q4 of 2018. When the selected developer receives site control in late 2018, the hotel site will be leveled and graded. Please view the following reports and information as it relates to the existing site conditions and work that will take place prior to site control:  Preliminary Geotechnical Report (2017) o Oyster Point City Parcel Refuse Relocation and Future Hotel Site. This report was prepared by Langan Engineering and Environmental Services for Oyster Point Development in February 2017.  Reliance Letter – Preliminary Geotechnical Report (2017)  Draft Final Closure Plan (2017) o Former Oyster Point Landfill Draft Final Closure Plan for Oyster Point Development Phases I and II, prepared by Langan Engineering and Environmental Services, Inc.  Draft Grading Plan (2017) o Document 1 o Document 2 o This draft plan is prepared by Wilsey Ham (San Mateo) for the grading of the Phase 1D site, hotel site, open space parcel and adjacent sites.  Hotel Parcel Exhibit o The hotel parcel map represents 4.7 acres. The document was prepared by Wilsey Ham. 1.5 Opportunity The hotel site boasts an excellent opportunity to develop a high -quality, waterfront hotel in keeping with South San Francisco’s pristine new vision of Oyster Point. With partial entitlement already programmed for a hotel(s) of up to 350 rooms through the Oyster Point Specific Plan, the 4.7-acre site sits in a prime location with unobstructed waterfront views of San Francisco, Oakland, San Francisco International Airport, and the San Bruno Mounta ins. The hotel site is 10 | Page situated only steps from surrounding new developments, a world -premiere bio-tech cluster, and easy access to San Francisco and the East Bay via ferry service. The proposed hotel(s) is anticipated to represent an upper upscale or up scale hotel, offering the appropriate compliment of facilities an d amenities to cater to the larger concentration of transient commercial and leisure as well as corporate group demand in the local market area. 1.6 Design The City is interested in iconic high-quality architecture for this prominently located hotel development. As part of the Oyster Point Development waterfront, significant open space landscaping is planned for the area, and design of public spaces will be important. The overall design will be a key consideration of the RFP evaluation. The hotel design should align with the vision and design guidelines in the Oyster Point Specific Plan, as well as design elements of an upper or upscale hotel brand. 1.7 Phase II RFP Schedule The proposed schedule of Phase II of the RFP solicitation process is as follows, and is subject to modification: Milestone Anticipated Date PHASE 2 City invites Short List of Developer(s) to respond to an RFP (90 days) July 28, 2017 Last day to submit questions October 13, 2017 RFP proposals due October 25, 2017 Housing Subcommittee to interview developer teams that submitted a proposal, and make a recommendation of a selected developer, with an alternate. (Open Session for developer interviews & Closed Session for Price & Terms.) Special Mtg TBD in December 2017 11 | Page City Council meeting to approve the Housing Subcommittee recommendations and finalize developer selection January 2018 City Council meeting to approve a long-term land lease agreement with the selected developer Q1 2018 2.0 Submittal Requirements Responses to this RFP must be packaged as a submittal with:  Twelve (12) hard copies presented in collated binders, and  One (1) unbound, (8.5” x 11”)  One digital file, either sent electronically or on a thumb drive Responses must include, at a minimum: 2.1 Table of Contents Outline in sequential order the major sections as listed here, including enclosures that should also be identified. All pages must be consecutively numbered and correspond to the table of contents. 2.2 Executive Summary Summarize your proposal in no more than three(3) pages, outlining why your team is best qualified to meet the objectives of the City as set forth in the RFQ/RFP. 2.3 Development Team 2.3.1 Developer A. Company Information 12 | Page Provide background information on the company such as area of specialty, years in business, and number of employees. Outline the organization of your team, any additional companies involved, key personnel in each company, summarize respective roles and responsibilities, and include any other information that will offer the City a good understanding Proposer’s capabilities. Also, provide the contact information for the primary individual(s) who will be leading the development work and the person(s) who is authorized to bind the Proposer with respect to the RFQ/RFP. B. Development Team Members List key individuals of the development team, their roles in the proposed project, including resumes. C. Relevant Experience Summarize developments that Proposer has completed, and/or is currently entitling, of similar size and scope to those described in the RFQ/RFP. 1. Project name, location, year completed, # of hotel rooms, development cost 2. Key personnel who worked on the development and in what capacity 3. Summary of financing 4. Any public/private partnership 2.3.2 Design Consultants The Development Team must include a Lead Architect, Landscape Architect and Civil Engineer. A. Company Information Provide background information on each of the design companies such as area of specialty, years in business, number of employees, and any other information that will communicate capabilities. B. Relevant Experience Summarize developments that Design Consultant has performed services similar in scope to those described in the RFQ/RFP. 1. Project name, location, year completed, project cost 2. Design personnel who worked on the development 3. Description of services provided 4. Images 13 | Page 2.3.3 Hotel Brands Hotel brands are welcomed to be included as part of the Development Team if they are submitting as a Co-Developer or Investor. 2.4 Approach to Proposed Development Plan Prepare a summary of how the Proposer will approach the development plan implementation; include how Proposer will work with the City and the OPD community, approach to site planning, waterfront and open space design. 2.5 Development Program Include all uses with proposed specific use types and square footages for each type of use, including open space. Also provide number of parking spaces.  Detailed project description to list major milestones in a timeline format, assuming site control in Q4 2018  Market study and analysis of the proposed hotel at Oyster Point  Operational relationship of the hotel and approach 2.6 Schematic Plans / Drawings Include schematic diagrams and 3D renderings that communicate the vision for the site , showing gross building area and parking by use and by phase, conceptual plan and elevations . 2.7 Project Schedule/Phasing Plan Describe the general proposed development schedule and any phasing plan. 2.8 Financial Capability and Financing Plan (Confidential) Financial Capability Provide a description of the general financial capability of the Proposer. Financing Plan 14 | Page Summarize the Proposer’s broad approach to financing the proposed development. Include the Proposer’s role in the capitalization of the project, and relationships with capital resources. Include Proposer’s commitment to all or a portion of the financing , or commitment of financing sources for this project. 2.9 City Benefits Describe what economic and community benefits the City will receive as a result of the proposed development project. Proposer shall estimate all projected economic impacts of their proposal, including one-time fees such as building permit fees and impact fees, and ongoing payments such as estimated property taxes, hotel taxes, food & beverage taxes, and land lease payments. Describe any other community benefits to the City. 2.10 Financial Analysis (Confidential) Include a detailed analysis of project development costs, and projected revenue and operating expenses over a five-year period that support the economic impacts described in the City Benefits section above. Project cost to include direct construction costs and sources, other costs with sources and assumptions, and all costs in current dollars (date of response) (Financial analysis should be packaged as a separate submittal and will remain confidential. This information will be discussed in closed session at any committees and governing bodies) 2.11 References Provide references that the City or its authorized representatives can contact. Please include public entities if possible. 2.12 Other Information Provide any other relevant information to demonstrate capabilities and experience. 15 | Page 3.0 Phase II RFP – Evaluation and Selection Process 3.1 Phase I RFQ Selection Process for Shortlisting Developers for Phase II RFP A Request for Qualifications (“RFQ”) was issued to the public on February 24, 2017, seeking a statement of qualifications and a preliminary project concept from qualified development teams to build a high-quality, hotel or hotels, located at Oyster Point. The deadline of the RFQ was March 31, 2017. Request for Qualifications (2017) Eight submittals were received and were reviewed and scored by a Review Panel. Firms that submitted included:  AJ Capital Partners (Chicago, IL)  OTO Development (Spartanburg, SC)  M-Rad Architecture & Oliver Companies (Los Angeles, CA)  Shashi Group, LLC (Cupertino, CA)  Glacier House Hotels, LLC (Scottsdale, AZ)  Ensemble Real Estate Investments (Long Beach, CA)  Bayview Development Group (San Jose, CA)  JMA Ventures (San Francisco, CA) After the review of paper submittals received, and interview presentations, the Review Panel made the recommendation of a Developer Short List to include: 1. Ensemble Real Estate Investments (Long Beach, CA) 2. JMA Ventures (San Francisco, CA) 3. OTO Development (Spartanburg, SC) 4. Shashi Group (Cupertino, CA) The RFQ that was issued gave the City the opportunity to hear from the hotel development community about relevant experience on similar projects, determine the most qualified developers for a hotel at Oyster Point, as well as understand a very preliminary concept of the proposed hotel development and initial understanding of how the hotel would be programmed. With the recommended Short List, the City is now issuing an RFP to the selected developers to provide more specific information about the program and financial structure of the hotel, and a 16 | Page site and schematic plan. The developers will be given sufficient time to perform due diligence on the site. The RFP also includes a current disclosure package to the Short List of current reports and plans related to the entire development of Oyster Point. 3.2 Pre-submittal Informational Meeting An informational meeting will be scheduled and details about the meeting will be sent via email. Separately, any questions pertaining to this RFP can be emailed directly ([email protected]) up until October 13, 2017. 3.3 Housing Subcommittee Phase 2 of the selection process will proceed with the following milestones, with the goal of selecting a developer and entering into a lease agreement, no later than the 1st Quarter of 2018. This will include:  Housing Subcommittee – two City Council members and three Planning Commissioners o 1 meeting: In-person interviews of RFP submittals, to make the recommendation of one developer and one alternate 3.4 Evaluation Criteria Criteria that will be used by the Housing Subcommittee to evaluate the proposals of the developers that respond to this RFP will include:  Appropriateness and quality of project concept  Community and economic benefits to Oyster Point and the City  Financial capability to consummate the proposed deal  High-quality iconic design  Completeness, creativity, and clarity of proposal  Results of developer interviews at the Housing Subcommittee Note that the approval and selection of a development team as outlined in this RFP will be at the discretion of the City Council. 3.5 City Council Approval and Selection  City Council – comprised of the Mayor, Vice-Mayor and three City Council Members o 1 meeting: Approval of the Housing Subcommittee’s recommendations, and o 1 meeting: Approval to execute a lease agreement with the selected developer 17 | Page 4.0 Term Sheet Negotiations Following the approval of the developer selection by the City Council, the City and the selected Developer will enter into negotiations of a Term Sheet that will form the basis of a Long-Term Land Lease and Development Agreement. The Term Sheet will address: 4.1 Schematic Plans/Drawings Diagrams and Renderings that communicate the vision of the site 4.2 Development Program Development Program that includes square footages for each component of the development 4.3 Project Schedule/Phasing Plan Development Schedule and any Phasing Plan 4.4 Development Cash Flow Analysis Development Cash Flow Analysis (revenues, expenses, capital etc.) for each component (hotel, food & beverage, meeting space etc.) with a summary of significant assumptions, demonstrating project financial feasibility 4.5 Terms for Leasing City Land Terms for Leasing City Land for private development 4.6 Development Capitalization Plan for Raising Capital and Financing for the proposed development 4.7 Summary of City Revenues Summary of projected City Revenues generated by the proposed development over time, including property taxes, hotel taxes, food & beverage taxes, and estimated one-time fees such as building permit and impact fees 4.8 Economic Impact and Support Documentation 18 | Page Analysis of the economic impact of the proposed development plan with documentation supporting the projected economic impacts 4.9 Oyster Point Community Engagement Plan to involve the City and the OPD community in the refinement of the development vision 5.0 Other Important Information 5.1 Prevailing Wage Development on the Site will be subject to prevailing wage requirements. 5.2 Disclaimers/Additional Requirements The City reserves the right to:  Extend the due date of the RFP, or cancel, in whole or in part of this solicitation.  Interview none, any or all developers that submit responses to the RFP.  Request additional information.  Reject, in whole or in part, any or all proposals, and to waive minor irregularities in the submittal.  Award in whole or in part, by item or group of items, when such action serves the best interests of the City.  Seek and obtain additional information beyond the due date if the proposals received are unsatisfactory.  All RFP submittals will become the property of the City. The City may use any and all ideas and materials included in any submittal, whether or not the respondent is selected as the developer.  No reimbursement will be made by the City for any cost incurred by developers in preparation or submittals of a response to this RFP.  The RFP is not a contract or a commitment of any kind by the City and does not commit the City to award exclusive negotiating and/or development rights. The issuance of this RFP does not constitute an agreement by the City that the City Council will actually enter into any contract.  Issue Addenda to clarify or modify elements of this RFP 19 | Page  Require Proposers to accept the City’s standard insurance and indemnification requirements.  By responding to this RFP, the Proposer represents that it and its subsidiaries do not and will not discriminate against any employee or applicant for employment on the basis of race, religion, sex, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy-related conditions, political affiliations or opinion, age, or medical condition.  Respondent's Duty to Investigate: 1. It will be the sole responsibility of the selected respondent to investigate and determine conditions of the Site, including existing and planned utility connections, and the suitability of the conditions for any proposed improvements . 2. The information presented in this RFP and in any report or other information provided by the City is provided solely for the convenience of the interested parties. It is the responsibility of interested parties to assure themselves that the information contained in this RFP or other documents is accurate and complete. The City and its advisors provide no representations, assurances or warranties pertaining to the accuracy of the information.  Proposals and all other information and documents submitted in response to this RF P are subject to the California Public Records Act, California Government Code §§ 6250 through 6276.48) (CPRA), which generally mandates the disclosure of documents in the possession of the City upon the request of any person, unless the content of the document falls within a specific exemption category.  Non-Liability: By participating in the RFP process, each respondent agrees to hold the City and its and their officers, employees, agents, representatives, and consultants harmless from all claims, liabilities, and costs related to all aspects of this RFP. 6.0 Appendices 1. DDA and DA (2011) 2. Oyster Point Specific Plan (2011) 3. Land Use Online Tool 4. Business Journal Article – Newly Proposed Residential at Oyster Point 5. Preliminary Geotechnical Report (2017) 6. Reliance Letter – Preliminary Geotechnical Report (2017) 7. Draft Final Closure Plan (2017) 8. Draft Grading Plan (2017) a. Document 1 b. Document 2 9. Hotel Parcel Exhibit November 1, 2017 OYSTER POINT DESTINATION HOTEL Contact Jack Highwart, AIA Principal 310 895 2200 [email protected] SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 2 Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Design Concept Narrative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SITE ANALYSIS 5 Existing Site Photos. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Site Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Impacts of Airport Proximity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Site Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Site Arrival . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 RESPONSE 11 Design Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Design Concept Inspiration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Exterior Design Inspiration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Rendered View from Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Ground Floor Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Public Spaces Precedents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Second Level Floor Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Bar, Meeting Room, + Event Area Precedents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Third through Sixth Level Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Seventh Level Floor Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Spa + Guest Room Precedents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Site & Building Cross Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Aerial View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Landscape Reference Site Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Landscape References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Parking Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Project Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Table of Contents SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 3 Design Concept Narrative Introduction On a site with enviable views both to the Marina on the north side and San Francisco Bay on the south, Oyster Point Hotel is in a pivotal location, both physically and imaginatively. Established as the Biotech center of Northern California, in much the same way as Silicon Valley is the center of the high- tech industry, Oyster Point will attract an affluent but mostly youthful population that values sustainability and a casual lifestyle. Abstract concepts of “life on the seashore” such as contemplation, reflection, a healthy connection to the outdoors, and casual human interaction, are integrated in the design of Oyster Point Hotel with sophisticated building systems and the latest advances in sustainability. Subtle references to sea forms- coral, shells, waves, and the reflection of sunlight on water- are used throughout the project, informing everything from the xeriscape outdoor areas to the flowing interior surfaces. This balanced and low-key design is intended to appeal to the youthful scientific and information systems workers that will populate the biotech area. Design Concept Here are some key concepts in the site plan and overall massing of Oyster Point Hotel. • Optimal East-West orientation to reduce heat gain and optimize energy performance. • Subtle gradations from public to private space create a seamless transition from the exterior walking and activity areas into the open plan lobby and food and beverage uses. • Long view corridors welcome the guest and merge indoor and outdoor environments. • North / West side shields the project from wind and noise, south side opens to the sun and dramatic bay views. The massing of the hotel block is an abstract reference to an open seashell: the outer, northern “shell” is the protective surface, with an integration of iridescent solid surfaces with glass. The southern surface is the living essence, encased in a shimmering skin of metal and glass, with balconies that offer expansive views to the Bay beyond. Artfully-curved landforms at the Plaza level blend the adjacent parking structure and partially subterranean spa into a continuous landscape of native plant materials and walkways imbedded with seashells. Offsetting the Public Functions in a one-story building connected to the hotel block and locating the parking in another low-rise structure to the west increases the economic viability of the project. The poolside area is located along a visual axis that also allows casual visitors to experience the amenities of the hotel’s facilities like the spa and outdoor bar. Landscaped terraces surrounding the shell-shaped SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 4 pool, drenched in light, oer expansive views out to the bay beyond. The Spa, nestled into a sunken “hill” with a grass roof, continues the bio-organic theme with its calming interior of neutral colors, multiple soaking tubs, and restorative health treatments. The main lobby is a long, tall space, whose glass walls and bright slightly reective surfaces continue to blur the distinction between indoors and outdoors. Screen walls of slightly metallic nish are reminiscent of coral formations, and the abstract wavelike sound baes that wind through this multi-functional space continue the ocean theme. The soothing lobby interiors, with their restrained palette of neutral colors and use of natural materials like stone and wood, are continued into the individual guest rooms. Far from being restricted to use by hotel guests, the various public dining and drinking spaces of the hotel will be in constant use by the local population for anything from a quick brunch, to a gettogether with friends, to a romantic dinner overlooking the sea. The focus of this activity is the second-oor bar with its open views down into the lobby below and outdoor terraces that merge with the surrounding landscape. This is really the “living room” for the entire community to gather for a drink or some light refreshment with friends and family. Our approach to sustainability has always been to use all those tools at a building’s disposal to make the place more comfortable, the building more suited to its task and the project simply more beautiful. With the correct orientation, energy use is already cut and solar glare almost eliminated. The use of native plant materials and hardy oceanside friendly specimens creates a landscape that is always attractive and requires lower maintenance and watering. On top of low-ow xtures, water is saved throughout the project using collection systems for re-use. In addition to these physical systems, sustainability is extended to the user in terms of smart devices, hot-spots on the property and an integrated approach to information ow. A guest will be able to book a table in the restaurant, check out movies, get weather updates, or hail an Uber, all using the hotel’s app: a convenient and energy-saving strategy that brings the internet, technology, and sustainability together. SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 5 SITE ANALYSIS SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 6 Site Location Existing Site Photos SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 7 Site Information U.S. ROUTE 101 SITE SITE SPECIFICATIONS Proximity Trail Vehicle Route Bike Route Site Size: 4.7 acres [Approx.] Height: Subject to FAR Part 77 height restrictions FAR: 1.6 Base FAR SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 8 3 mile Project Location SFO Airport Excerpt from CEE 4674 - Airport Planning and Design Obstructions to Navigation An object constitutes an abstruction to navigation if: • If 200 ft. above ground level or 200 ft. above the airport elevation (whichever is greater) up to 3 miles (for runway lengths > 3200 ft.) from the airport. • Increase 100 ft. every mile up to 500 ft. at 6 miles from the ARP (airport refrence point) • Is 500 ft. or more above ground level at the object site • If penetrates an imaginary surface (a function of the precision of the runway) • If penetrates the terminal obstacle clearance area (includes initial approach segment) Impacts of Airport Proximity N *Site SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 9 Legend Road Winds Winter Solstice Summer Solstice Site Factors N *Site SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 10 VIEW Per the intent of the Oyster Point Specic Plan, the positioning of the site responds to the realignment of Marina Boulevard as an opportunity to strengthen the experience of place on this site. The new road alignment creates a repetition of the sequence: Approach, View, and Proceed to the right. Initially, the new road alignment leads guests approaching from the West to a framed view of the Marina, enhanced by the roads new alignment and proximity to the Marina. Then, a right turn shifts their gaze toward the eye-catching tower of the new hotel at the end of the peninsula. Upon approach of the hotel site entry, guests will again follow the familiar sequence - Approach, View, and Turn Right - as they turn into the Hotel entry court and covered porte cochere, with a framed view of the Bay, on- site gardens, and bike path, located south of the site. TRAVELING FROMOOOMMM V I E W TRAVELING FROM Site Arrival RESPONSE SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 11 SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 12 Views to Marina Sun Building Orientation to Maximize Daylighting Pr e s e r v e A c c e s s O n Si t e F o r B i k e P a t h Pr e s e r v e A c c e s s O n S i t e Fo r S e r v i c e V e h i c l e s B u i l d i n g O r i e n t a t i o n t o M a x i m i z e V i e w N S W E Views to Bay N e w R o a d A l i g n m e n t Arrival Sequence 1. Optimize Building Orientation for Natural Daylighting + Views. • Peninsula orients to optimal East-West placement, reducing heat gain + optimizing building energy performance • Site accessed from Marina Blvd. • Respond to Site Inuences 2. Sculpt Building + Landscaping on Site to Create a Porous + Inviting Experience. • Allow the North + South Outdoors to penetrate the Site. • Create a dramatic Entry Portal that connects the guest arrival with views of the Marina + the Bay. • Create open, exible vehicular court to accomodate Multi-model transportation uses. • Site porosity increases the visual + physical access, and allows the Public + Private uses to blend 3. A Tower Shelters + Shields Outdoor Activities from Prevailing Winds and Creates a Rened Guest Environment. • Featured areas of gathering, reection, or engagement are surrounded with glass and open air to connect interior + exterior space. • The public levels and outdoor spaces are connected with the Public realms of the site. • Access to Light + Air activates guests. • Guest Room tower takes advantage of spectacular views around all site orientations.. • Tower lifts + shapes to dene iconic formal character. Design Approach SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 13 Design Concept Inspiration SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 14 Prominent Evidence Textural Variety Iconic Destination Rooted in Site + Context Exterior Design Inspiration SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 15 Rendered View from Drive Ground Floor Site Plan SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 16 KITCHEN (3,000 SF) P-1 (SURFACE) PARKING MARINA PARKING SPA / FUNCTION (14.5 EL) 3,000 SF SOUTH BAY BAY TRAIL GRAND BALL ROOM (6,000 SF) RESTAURANT (3,500 SF) LOBBY (+16.5 EL) (2,500 SF) ARRIVAL PORTE COCHERE P-1 PARKING P-2 PARKING DECK RAMP WEST OPEN SPACE 10’ BAY TRAIL CONNECTION 10’ BAY TRAIL CONNECTION DN UP (SEE PARKING PLAN) MARINA B O U L E V A R D PDRB A BA SERV ELEV ELEV F.D. F.O. (1,000 SF) O.FITNESS SERV.SERV. SERVICE ROAD FUTURE DEVELOPMENT FIRE ACCESS TURN AROUND BALL SIDE MEETING (2,500 SF)POOL COURTYARD HK/LAUNDRY L/D M M EMW W BOH/SERV. SUPPORT/ EMPLOY (3,000 SF) BOH/ MECH-ELEC BANQ PF #2 PF #1 SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 17 Public Spaces Precedents Positively Thought-Provoking Naturally Beautiful Framed + Focused Curated Engagement SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 18 Public Spaces Precedents Relaxed Elegance Playfully Inventive Supporting Collaborative Exchange SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 19 SUITE HK BAR (2,500 SF) BAR OPEN MEETING 1 (1,500 SF) MEETING 2 (1,000 SF) BAY VIEW EVENT TERRACE (2,800 SF) BOARD (600 SF) WALK BAR/LOUNGE POOL TERRACE BAR MARINA TERRACE EVENT VIEW TERRACE EL GUEST ROOMS (18) EX OFFICE (1,000 SF) ROOF (+18’ EL) MECH Second Level Floor Plan SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 20 Uplifting Tones Inspired Gathering Punctuations of Nature + Daylight Bar, Meeting Room, + Event Area Precedents SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 21 Bar, Meeting Room, + Event Area Precedents Fostering Innovation + Communication Limitless Flexibility Kinetically Energizing SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 22 L-2 DECK L-2 ROOF 46 ROOMS/FLR TYPICAL 41 ROOMS/FLR TYPICAL NORTHERN VIEWS TO SAN FRANCISCO + MARINA SOUTHERN VIEWS TO THE BAY SUITE SUITE PRES. SUITE SUITE SUITE HK HK SUITE SUITE SUITE SUITE SUITE SUITE SUITE Level 3 Through 6 Floor Plan Seventh Level Floor Plan (Penthouse Level) SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 23 Welcome + Unwind Refreshed Relaxed + Recharged Spa + Guest Room Precedents SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 24 TYPICAL GUEST ROOMS TYPICAL GUEST ROOMS PENTHOUSE ROOMS PENTHOUSE ROOMS BAR BAR PATIO PATIO TERRACE LOUNGE POOL TERRACE BAY SIDE EVENT OPEN SPACE BAY VIEW EVENT TERRACE BAY VIEW EVENT TERRACE LOBBY/RESTAURANT LOBBY/RESTAURANT GRAND BALL ROOM ROOF PREFUNCTION BAY SIDE MEETING 2,500 SF6,000 SF BAY SIDE PATIO ARRIVAL/PARKING ARRIVAL/PARKING 12’ 12’ + 85’ MAX + 85’ MAX 10’ 10’ 10’ 10’ 10’ 10’ 10’ 10’ 13’ 13’ 18’ 18’ Building & Site Sections A - A B -B SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 25 Rendered Aerial View SOUTH SAN FRANCISCO | CALIFORNIA 2 OYSTER POINT DESTINATION HOTEL RFP SUBMISSION THE VISION scale 1”=60’-0’ SO U T H S A N F R A N C I S C O , C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L 26 Landscape Site Plan SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 2 VISION STATEMENT VISION MOOD VISION DESCRIPTION Oyster point oers an unequal opportunity to enjoy 360 degree vistas, shoreline access and through sustainable and quality design create exceptional places for people to travel, explore and gather. The vision of a building with clean organic forms nestled in the landscape helps to blur the transitions of building and landscape/ indoor and outdoor spaces. A network of circulation paths oer a network of natural and crafted for pedestrians and encourage alternative transportations methods including bikes, ferries and shuttles. The trails and open spaces will oer numerous convergence points where people can sit, meet and enjoy the opportunities. These usable public and private spaces will serve multiple functions and needs and be carefully integrated into the design program. Landscape materials will be environmentally sustainable, reect and tie into the surrounding spaces and oer a high quality of design to make the project viable and enjoyable for visitors and guests. Brisk winds blow o the water and travels over low dunes and soft plantings creating ripples across the grass meadows. Trees shaped by the wind buer the gusts as leaves wobble in the branches. The building appears to be pulled from the landscape as it rises into the skyline while fragments of planting cling to the modern façade. Breaks in the dense tree line oer glimpses into the entry portal and oer an invitation to enter. Cars ght for sunlight in a park like setting where urban needs and natural system blend seamlessly together. A scenic overlook perched uniquely on a rooftop serves as the outdoor “porch” where public and private spaces converge to share and exchange ideas, culture and time. Protected within the shell of the building the pool area acts as a tranquil pond nestled in the landscape and is the hub of activity. Natural trails demand exploration and invite travel beyond the limits of the site and oer users multiple spaces to reect view and be engulfed by the surroundings. · Convergence of travel · Thoughtful environmental design · Integrated environment · Culmination of spaces · Eco-conscious continuous trail network SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 27 Landscape References SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 3 scale 1”=60’-0’ LEVEL 2 PLAN Keymap Green Wall Water & Fire Pit Green Wall w/ Cabana Niche Edge Planters Fire Table at Edge Bar Fire Pit 1 2 3 4 5 6 7 1 6 5 3 4 4 7 4 2 SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 28 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 4 THE GROVE Entry Signage Specialty Paving Themed Bollards Tree Grove Valet Station Mounded Mix of Turf & Sand Dunes Parking Structure Access Way Porte Cochere Structure Pedestrian Crossing Specialty Paving Display Parking 1 2 3 4 5 6 7 8 9 10 2 2 scale 1”=30’-0’ Keymap 1 9 7 8 5 10 3 4 4 6 Inspired by the coastal groves and hillside forests, guests will nd a break in the tree massing oering an inviting view into the entry plaza. Natural forms, warm textures and generous planting will embrace the building as it pulls itself into the skyline. The entry experience will support and promote alternative modes of transportation through generous pathways, protected arrivals and multiuse shuttle opportunities. SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 29 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 5 THE GROVE SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 30 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 6 scale 1”=50’-0’ THE PARK Keymap Open Air Parking Structure Parking 10’ Wide Beach Access Path Themed Shade Structure Archways w/ Vines Access to Pedestrian Walk at Garage Structure Vertical Garden at Edge Forest Garden Garden Path to View Terrace 1 2 3 4 5 6 7 8 3 1 +14.5 +15.0 4 8 7 5 2 6 Integrated into the landscape, the parking area will be a unique opportunity to blur the lines between the urban needs of the site and the natural setting it is surrounded by. Selective screening, bermed planting and innovative management and sustainable design will help minimize the impacts and create a distinct park like space. SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 31 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 7 THE PARK SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 32 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 8 scale 1”=20’-0’ Keymap Garden Path Sloped Event Lawn View Terrace Roof Top Garden Over Spa Building Fitness Patio 1 2 3 4 5 1 4 5 4 3 2 +25.0 A unique integration of public and private spaces the garden overlook is intended to serve as a place to bring community together in intimate and comfortable settings. Meandering walkways up to a generous meadow and view deck with re pits and furniture clusters will allow local residents and hotel guests to exchange views and share cultures as they enjoy the panoramic views. THE PORCH SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 33 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 9 THE PORCH SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 34 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 10 scale 1”=40’-0’ THE POND Keymap Lobby Outdoor Seating Area Pool Access Way / Ramp Pool Access Way w/ Steps Ha-Ha Wall Pool Area Fence Pool Boy / Towel Kiosk Typical Cabana W/Green Roof Banquatte Seating w/Fire Tables Fire Pit W/ Water Feature Event Lawn (Small & Large) Beach Trail Fitness Center Patio Spa w/Water Feature & Fire Grand Steps View Alley Sand Dunes w/ Low Native Plantings Banquette Seating w/Eyebrow Shade Structure F & B Garden Patio 1 2 3 4 5 6 7 8 9 2 4 5 6 7 16 15 12 14 8 3 1 11 6 7 4 15 10 8 13 +16.5 +16.0 +15.0 +13.5 9 10 11 12 13 14 15 16 A sparkling gem centered in the protective shell of the building footprint, the pool area will be the social/active centerpiece of the site. Creating distinct outdoor spaces, maximizing the magnicent views and providing multi use year round spaces, guest and visitors will nd this a welcome retreat after a busy day. Natural soft forms and simple sustainable design will make this an environmentally friendly oasis. SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 35 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 11 THE POND SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 36 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 12 THE DUNES Keymap scale 1”=60’-0’ Large Event Lawn Event Lawn & Pool Area Sand Dunes w/Low Plantings & Seating Areas Beach Boardwalk Pathway Beach Access Path Spa Building w/Rooftop View Garden Deck Parking Structure Large Specimen Trees Pool Area 1 2 3 4 5 6 1 5 2 3 6 9 4 8 7 3 7 8 9 Movement and form are the main drivers for this area. The unication of a strong pedestrian network will weave through open meadows, undulating dunes and generous pathways all encouraging exploration and movement. The pathways will follow the natural landforms and mimic the shoreline edge. Places for viewing, reection and gathering will all be oered along the multiple trails surrounding the site. SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 37 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 13 THE DUNES SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 38 MATERIALS SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 14SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 39 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 15 TREE IMAGES SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 40 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL 16 SHRUB IMAGES SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 41 SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 42 Required Parking [Mun. Code 20.330.06] Guest Rooms (1 Stall per 30 Rooms) : 80 stalls Employee (1/2 stall per 20 Rooms) : 6 stalls Meeting (1 Stall per 50 S.F.) : 230 stalls Lobby (1 Stall per 200 S.F.) : 7 stalls Oce (1 Stall per 200 S.F.) : 7 stalls Total Demand : 330 Stalls* Provided Parking On-Site North P-1 Surface : 22 stalls West P-1 Surface : 118 stalls P-2 Parking Deck : 80 stalls B-1 Subterranean : 100 stalls Total : 320-330 Stalls * The project believes a 20% reduction (46 stalls) of code-required parking for Meeting Space is feasible, due to the following proposed conditions: • On-site Hotel Guests as Meeting Users; • Close Airport Access with Ride-share or Taxi; • Local Bio-Tech Oce Users with Shuttle; and • Alternative Transport Access. NORTH P-1 SURFACE PARKING (22 stalls) 6 6 6 8 8 7 1 3 8 3 0 T 2 4 T 7 8 1 3 3 0 T 1 2 7 8 1 3 3 0 T 12 14 12 12 P-1 DECK PARKING (+14.5’ EL.) (118 stalls) B-1 PARKING DECK (+4.5’ EL.) (100 stalls) P-2 PARKING DECK (+25.0’ EL.) (80 stalls) Parking Summary SOUTH SAN FRANCISCO, CALIFORNIA OYSTER POINT DESTINATION HOTEL 43 SITE AREA : 4.7 AC = 204,732 SF HEIGHT : 85-FT [7-STORIES] PROPOSED PARKING : 285-305 STALLS* SEE PARKING SUMMARY ON PREV. SHEET GROSS AREA LEVEL ONE : 48,000 SF[INCL SPA] LEVEL TWO : 19,000 SF LEVEL THREE THRU SEVEN : 115,000 SF@ 511 SF PER KEY [23,000 SF/FLR] 46 KEY PER TYP. LEVEL TOTAL : 182,000 SF PUBLIC GUEST ROOMS 13'-6" x 28'-0" TYP. BANQUET MEETING SPACE LEVEL TWO : 18 ROOMS LEVEL ONE : 8,400 SF LEVEL THREE THRU SIX : 184 ROOMS BALLROOM : 6,000 SF LEVEL SEVEN : 41 ROOMS BAY VIEW MEETING : 2,400 SF TOTAL : 243 ROOMS LEVEL TWO : 3,100 SF MEETING ROOM 1 : 1,500 SF ROOM BREAKDOWN MEETING ROOM 2 : 600 SF KING : 50% MEETING ROOM 3 : 1,000 SF DOUBLE QUEEN : 35% SUITE : 10-15% TOTAL : 11,500 SF SITE SUMMARY BLDG FOOTPRINT : 48,000 SF 23% PARKING DECK W SURFACE PARKING : 38,500 SF 19% SPA / FUNCTION SPACE W/ LAWN COVERED ROOF: 3,000 SF 1% POOL COURTYARD:: 17,100 SF 8% POOL : 2,700 SF SPA : 130 SF POOL AREA EVENT LAWN : 2,000 SF POOL CABANAS : 600 SF POOL WALKS, PLANTING, AND DECKS : 11,670 SF FRONT ENTRY DRIVE AND SURFACE PARKING : 19,000 SF 9% SERVICE DRIVE AND LOADING ZONE : 10,100 SF 5% OTHER LANDSCAPE FEATURES, INCLUDING PATHS, WALKS, LAWNS, AND PATIOS : 69,032 SF 34% TOTAL : 204,732 SF100.0% Project Summary     November 3, 2017    City of South San Francisco  Economic & Community Development Department  Attention: Mr. Ernesto Lucero  Economic Development Coordinator   400 Grand Avenue  South San Francisco, CA 94080      Re:  RESPONSE TO REQUEST FOR PROPOSAL – The Development of a Waterfront Hotel Project at  Oyster Point      Dear Mr. Lucero,    Shashi Group LLC (“Shashi”) is delighted to respond to the City of South San Francisco’s RFP for the above  referenced project. Shashi was formed to pursue a focused strategy of developing and acquiring hotel  properties in corporate technology hubs on the West Coast, primarily the Silicon Valley, San Francisco  Peninsula, and the Pacific Northwest markets.  The leadership team has 150+ years of collective  experience in institutional real estate development/investment, construction management, engineering,  local government, technology, and Fortune 100 business consulting.  Since 2013, Shashi has built,  repositioned, or conducted major renovations on all five hotels in its portfolio, all located in the core  Silicon Valley.  In September 2017 Shashi broke ground on a 200‐room new construction upscale full‐ service LEED Gold certified hotel across from Google in Mountain View.    Our vision for this project is two hotels, one a 210‐room Westin hotel and the other a 138‐room Element  (upscale extended stay) hotel.  Our expertise is creating high quality technology oriented hotels serving  today’s business travelers, particularly in a corporate campus setting.  South San Francisco with its robust  biotech industry is a target market for Shashi Group.  This project is on an attractive site with many natural  amenities.  We are excited to have the opportunity to present our proposal to develop a hotel at this  location.    Sincerely,        Dipesh Gupta, CEO  Shashi Group            2 2.1 Table of Contents Contents 2.1 Table of Contents ................................................................................................................................ 2  2.2  Executive Summary of Proposal ......................................................................................................... 3  2.3.1.A Developer Company Information ................................................................................................. 3  2.3.1.B Development Team Members ...................................................................................................... 4  2.3.1.C  Relevant Experience ..................................................................................................................... 5  2.3.2 Design Consultants ........................................................................................................................... 6  2.3.3 Hotel Brands ..................................................................................................................................... 6  2.4 Approach to Proposed Development Plan.......................................................................................... 6  2.5 Development Program ........................................................................................................................ 7  2.6 Schematic Plans/Drawings .................................................................................................................. 9  2.7 Project Schedule/Phasing Plan ........................................................................................................... 9  2.8 Financial Capability and Financing Plan .............................................................................................. 9  2.9 City Benefits ........................................................................................................................................ 9  2.10 Financial Analysis (Confidential) ..................................................................................................... 10  2.11 References ...................................................................................................................................... 10  2.12 Other Information ........................................................................................................................... 10  Tab 2  Shashi Portfolio Map and Description ................................................................................... 11  Tab 3  Qualifications of Consultants ................................................................................................. 12  Tab 4  LOI from Marriott International ............................................................................................. 13  Tab 5 Project Timeline ...................................................................................................................... 14  Tab 6  Project Drawings .................................................................................................................... 15  Tab 7  Summary of Recurring Quantitative Benefits to City ............................................................. 16  Tab 8  Westin and Element Brand Information ................................................................................ 17      3 2.2 Executive Summary of Proposal   We propose a dual branded Westin and Element hotel with approximately 9,400 SF of meeting space for  the City’s land available at Oyster Point.  Shashi Group’s experience in developing hotels in corporate  campus settings combined with its vision for a contemporary product to serve the Oyster Point  community will help the City of South San Francisco achieve the high‐quality hotel product it desires for  this attractive location.    Shashi has a strong relationship with Marriott that includes ownership of three Marriott‐franchised  hotels and development of a fourth.  The Westin brand’s emphasis on health and wellness is a natural fit  for the inspiring waterfront setting at Oyster Point.  Element is a wellness‐oriented extended stay hotel,  including larger rooms with kitchens and amenities that support a stay of 7+ days.  Shashi feels that the  combination of the product offered by these brands, the power of their reservation systems and the  high degree of guest loyalty is the right choice for the Oyster Point site.    The program for the development includes:    A. Guest Rooms   Westin Hotel (full service)  210 rooms, 581 SF per room, 122,000 SF   Element Hotel (extended stay)  138 rooms, 635 SF per room, 87,625 SF   Total     348 rooms    B. Food and Beverage   Westin Hotel Restaurant  2,500 SF   Element Hotel Restaurant  2,000 SF   Restaurant in Retail Space  8,000 SF    C. Meeting Space   5‐8 Meeting Rooms   9,400 SF    D. Amenities and Public Space    Lobby and Offices   8,000 SF   Fitness Center    included in Westin above   Outdoor Pool with Patio  outdoors   Steam and Sauna   included in Westin above   Guest Laundry    included in Element above      2.3.1.A Developer Company Information   With a blend of professional experience in the technology sector, real estate development sector, and  public sector, Shashi is ideally positioned to execute on the strategy of developing market‐leading hotel  properties proximate to technology, innovation, and corporate clusters.  In this type of location, Shashi  commits itself to bringing world‐class experiences to business travelers through appropriate hotel product  choices for each respective market area and customer base, offering cutting‐edge technology, modern  and oversized fitness centers, vibrant bar/lounge areas, top quality and organic food options, and  supporting amenities.  Shashi Group was honored with Starwood’s President’s Award in 2014.    Shashi’s strategy is exemplified in its current development project, the 200‐room Shashi Hotel in the North  Bayshore District of Mountain View, which is located adjacent to the worldwide headquarters of Google.  4 Mountain View’s cumbersome Precise Plan Process for the North Bayshore was created to handle the  entitlement of the expansions of corporate campuses for Google, LinkedIn and Microsoft, but through  extensive direct work with the City; Shashi was able to get its hotel project fully entitled under the Precise  Plan.  Shashi’s development plan here is for a high quality, LEED Gold certified, contemporary destination  hotel with supporting amenities to include a world class indoor‐outdoor bar and restaurant, a lobby  designed to be a magnet for casual executive meetings, leased restaurant and café space and conference  space.  Construction began in September of 2017 with the hotel to open in the first quarter of 2019.     Key Attributes of Shashi Group Hotels:     Industry‐leading Technology Infrastructure: Aloft Cupertino was one of the first hotels in North  America to offer Apple TV in every guestroom and full implementation of smart, RFID technology  for Starwood’s “Smart Check‐in” program; other enhancements include the popular Botlr robot  for amenity delivery, Apple iPad concierge stations, and remote  control/monitoring of guestroom  climate control.     LEED Silver Design & Construction   Health & Fitness Amenity Focus:  Oversized fitness centers with state‐of‐the art equipment;  organic, eclectic, and international food offerings; swimming pools at multiple locations.    Vibrant Atmosphere:  Oversized bars and lounges with expanded food menus; often times  indoor/outdoor patio spaces with lounge seating, fire pits, water features and shade structures;  special event offerings including regular live entertainment; numerous and varied  seating/gathering places with full technology and WIFI support; private meeting/function space.    World‐Class Location: Central locations within the dynamic Silicon Valley providing efficient  access and full amenities for the global business traveler; often located adjacent to corporate  campuses such as Apple, Google, or within walking distance of Stanford Research Park; ample  shopping, restaurant and entertainment offerings nearby; at select locations, complimentary  shuttles.   A map and description of the Shashi portfolio is included in Tab 2.    2.3.1.B Development Team Members Team Representative:   Dipesh Gupta, CEO – T: 408.621.3094  Project Oversight:  Jim Hansen, President – T: 916.416.6243   Project Manager:     Brian Froelich, AICP, Vice President – T: 408.887.0255  Agency Liaison:   Chaitanya Prakash, Chief Investment Officer – T: 310.741.7129    Shashi’s in‐house team is made up primarily of professionals with extensive experience in hotel  entitlements, design and construction.      Dipesh and Manish Gupta, Co‐Founders, have worked extensively with the cities of Cupertino,  Sunnyvale, Palo Alto and Mountain View, forging relationships with City Council that led to Council  approval for Shashi’s hotel projects.  They have also outlined the product and design vision for each of  Shashi’s hotels.    Jim Hansen, Chief Development Officer, has been involved in the new construction of over 75 hotels and  renovation of another 30 hotels, restaurants and conference centers in his 34 years+ hotel career.  Mr.  Hansen built the Hilton Garden Inn and Larkspur Landing on Gateway Boulevard in South San Francisco  in 1999 and was involved with the operation of both, the HGI through 2005 and the Larkspur Landing  through 2014.    5 Brian Froelich, Vice President of Development, led Shashi’s two‐year entitlement efforts under a Precise  Plan of the Shashi Hotel Mountain View in the North Bayshore District.  He has over 10 years public  sector experience and has worked in City Planning Departments for the cities of Belmont and Los Altos  Hills.    Chaitanya Prakash, Chief Investment Officer, oversees capital markets activity for Shashi Group,  including acquisitions, development and financing.  He brings nearly two decades of hospitality  experience to his role, with a career that spans nearly all aspects of hospitality including operations,  revenue management, finance, development and mergers and acquisitions.      2.3.1.C Relevant Experience   # Hotel Opening/  Acquisition  Date  Room  Count  Summary of Development Work Status  1 Aloft  Cupertino  January  2013  123  keys  Assembled land, obtained  entitlements, and built hotel from the  ground up  Operating  2 Aloft San  Jose  Cupertino  August 2014 81 keys Acquired as an independent subject to  ground lease, obtained a Starwood  brand, made a significant renovation  and repositioned as an Aloft to  maximize RevPAR Index  Operating  3 Aloft  Sunnyvale  March 2015 85 keys Acquired as an economy hotel in  downtown, completed a gut  renovation, and obtained a Starwood  brand  Operating  4 Nest Palo  Alto  December  2015  54 keys Acquired as a limited service hotel then  transformed hotel and redesigned  entire guest experience around a  welcoming outdoor patio, wine bar,  and contemporary guest rooms  Operating  5 Hilton  Garden Inn   January  2016  160  keys  Upon acquisition repositioned  corporate negotiated rates at market  levels; completed a patio expansion  and creation of indoor‐outdoor space  at the bar, and doubled size of fitness  room  Operating  6 Shashi Hotel  Shoreline  Mountain  View  Q4 2018 200  keys  Acquired land, designed hotel to LEED  Gold standard, acquired entitlements,  financed and began construction  Construction  began in  September  2017  7 Element  Hotel  Mountain  View   120‐160  keys  Designing a new construction extended  stay hotel within the parking lot of the  Shashi owned Hilton Garden Inn  Mountain View  Entitlement  Stage    6   Please note, development costs and financing summaries for these projects are confidential.    2.3.2 Design Consultants   Lead Architect – Architectural Dimensions  Landscape Architect – Reed Associates  Structural Engineer ‐ Desimone  Civil Engineer – Sandis  MEP ‐ Robison    Qualifications for the consultants are included in Tab 3 of this document.    2.3.3 Hotel Brands   Shashi is proposing a dual branded Westin and Element Hotel at this site.  A letter from Marriott  International in support of the application is included in Tab 4 of this document.  Summaries of the Westin and Element brands are included as Tab 8 of this document.    2.4 Approach to Proposed Development Plan   Shashi will work closely with the City and the Oyster Point community in the planning of the hotel.  From  responding to questions about the site conditions to negotiating the structure of the lease, the City will  be a critical partner in planning the hotel.  Equally important is the Oyster Point business community, to  whom we will look to discuss the unmet hotel needs in the market.    The approach to site planning here is important.  The hotels would be oriented with guest room views to  the north and south to maximize the excellent views of the San Francisco Bay.  The site would be designed  in a corporate campus style with a strong curb appeal from both Marina Boulevard and from the San  Francisco Bay Trail at the rear.  Parking lots would be located to the sides of the hotel; however, special  attention would be given to the open space on either side of the hotel so that the hotel incorporates well  into the overall setting.    The lobby entrance would face Marina Boulevard, but access to the hotel and its amenities would be  available from the Bay Trail at the rear so that local employees might easily stop in for lunch.    The event space would include an outdoor component, but special attention would be given to create  outdoor space shielded from the wind so prevalent on the site every afternoon.    While surface parking may take up much of the site, effort would be made to landscape the remaining  green space with native species and bay friendly plant materials.                7 2.5 Development Program   A. Guest Rooms   Westin Hotel (full service)  210 rooms, 581 SF per room, 122,000 SF   Element Hotel (extended stay)  138 rooms, 635 SF per room, 87,625 SF   Total     348 rooms    B. Food and Beverage   Westin Hotel Restaurant  2,500 SF   Element Hotel Restaurant  2,000 SF   Restaurant in Retail Space  8,000 SF    C. Meeting Space   5‐8 Meeting Rooms   9,400 SF    D. Amenities and Public Space    Lobby and Offices   8,000 SF   Fitness Center    included in Westin above   Outdoor Pool with Patio  outdoors   Steam and Sauna   included in Westin abov e   Guest Laundry    included in Element above    The two hotels would look architecturally distinct from one another, would blend well with their  surroundings, and would also include building façade articulation consistent with their surroundings. The  development would maximize the benefits of the natural surroundings, the views, and the park setting.   It would include outdoor spaces with patios, a pool and spa, cabana and other features to create a unique  Shashi Hotel experience. They would be built to LEED Silver standards.  A true destination hotel,  conference center and F&B operation will be created to serve the Oyster Point market for years to come.    The F&B program at the hotels will include:   a shared hotel restaurant serving breakfast and dinner   a lobby bar that will extend into the hotel courtyard and pool area, that will be open‐air in good  weather, serving a full drink menu and a selection of light bar snacks   a lively leased restaurant facing Marina Boulevard and accessible from both the hotel and the  Oyster Point area that will serve the multitude of area employees seeking lunch and dinner  options   a leased café/coffee bar positioned to serve local employees or those on the San Francisco Bay  Trail or coming from the Ferry Terminal nearby   in‐house banquet operations for the meeting space   Grab and Go food pantry featuring fresh salads and sandwiches as well as drinks and snacks,  accessible to hotel guests, conference attendees, and to area employees and visitors   Room service operations for the hotels                  8 The parking analysis by City code standards is:    Component Size Square Feet Parking Code Required  Parking Spaces  Westin Hotel  (full service)  210 rooms 122,000 SF 1 per 3 rooms 70 spaces  Element Hotel  (extended stay)  138 rooms 87,625 SF 1 per 3 rooms 46 spaces  Meeting Space 5‐8 rooms 9,400 SF 1 per 50 SF 118 spaces  Retail  1 outlet 8,000 SF 1 per 200 SF 40 spaces  Hotel  Restaurants  2 outlets 4,500 SF 1 per 100 SF 45 spaces  Lobby/Office  8,000 SF 1 per 200 SF 40 spaces  Total  239,165 SF  359 spaces    Parking has been designed to be accommodated with surface parking which is the most cost‐effective  solution.  252 parking spaces will be provided on site.  The City parking code would require 359 parking  spaces on site.  In our experience, having done multiple parking studies to entitle two separate new  construction projects as of late, a ratio of 72% (252 spaces to 348 rooms) is more than sufficient to meet  parking demand for full service hotels with meeting space and restaurants.  The meeting rooms and hotel  rooms are reciprocal uses, with the meeting room parking being needed during the day and hotel parking  being needed at night.  We are finding in our parking studies that as ride‐hailing services like Uber and  Lyft capture a greater share of overall transportation, guest demand for hotel parking has decreased.  Our  discussions with City planning staff around parking would begin with a parking study for this site to  determine parking demand.  To add parking beyond the surface parking shown would require a structured  parking solution.  Our current cost for structured parking at our Shoreline Mountain View hotel project,  where no surface parking is available, is $45,000 per space.  While we understand the City’s parking  requirements and are open to discussing them, we anticipate additional construction cost could ultimately  affect financial terms of the development.    Timeline with major milestones:    Please see timeline included in Tab 5 of this document.    Market study and analysis of proposed hotel at Oyster Point    South San Francisco’s existing biotech cluster with over 200 companies is underserved for high quality  hotels as hotel development in the area has not kept pace with recent construction of office and R&D  space.  The site being proposed by the City of South San Francisco is an excellent destination for a  landmark hotel and meeting space, adjacent to Genentech, across from the Ferry Terminal, surrounded  by water and the San Francisco Bay Trail.    CBRE Hotels illustrated the South San Francisco hotel market well in the RFQ document it distributed for  the City in February of 2017.  In that document, the local hotel market was described as “achieving record  occupancy, ADR and RevPAR levels” for Year to Date November 2016.  The Upper Upscale, Upscale and  Upper Midscale Segments achieved an impressive 88.8% occupancy at a $180.54 ADR for YTD November  2016.    Updated data from Smith Travel Research for a revised competitive set, excluding the Upper Midscale  hotels but including the Doubletree and Homewood Suites in adjacent Brisbane, still indicates a robust  market.    9    Occupancy % Change ADR % Change RevPAR % Change  TTM Sep 16 87.9%  $191.17  $167.95   TTM Sep 17 88.7% 0.9% $189.90 ‐0.7% $168.39 0.3%    Monthly occupancy data from Smith Travel from 2011‐2017 shows that South San Francisco is emerging  out of the seasonal pattern that once characterized hotel demand here.  Occupancy grew 1.5% annually  from 2012 through 2017, but that occupancy growth came almost exclusively in the months of November  through April.  Hotel occupancy November ’16 through April ’17 was 86.1%; by comparison occupancy for  November 2011 through April 2012 averaged 75.0%.  The previous seasonality suggests South San  Francisco enjoys overflow leisure demand from San Francisco in the traditional summer season.  But, the  new year‐round trend is evidence that a local corporate market has developed and needs to be served.   As the average age of hotels in this competitive set is 18 years old, South San Francisco is sorely in need  of new hotel product.  The new AC by Marriott that OTO opened in October 2017 is a complimentary  addition to a hotel market that has evolved a great deal in 18 years, but at that high occupancy level there  is a great deal of unmet demand.    2.6 Schematic Plans/Drawings   Please see hotel drawings which are included in Tab 6 of this document.  Gross building area and parking is included above in Development Program.    2.7 Project Schedule/Phasing Plan   Please refer to project timeline in Tab 5 of this document.    2.8 Financial Capability and Financing Plan   The financial information requested for this RFP response is Confidential and Proprietary Commercial  Information.  It is being provided under separate cover and Shashi Group requests that it be kept  confidential at all times.    2.9 City Benefits One time quantitative economic and community benefits to the City as a result of the hotel development  will include:    Building Permit Fees, Plumbing and Mechanical  Fees, Electrical Fees  $1,350,000  Plan Check Fees $337,500  General Plan Maintenance Fee $135,000  Approximate Full Time Positions, both  Management and Hourly  75 full time positions    Qualitative community benefits to the City as a result of the hotel development will include:   Restaurant facilities to serve the local business community    Meeting rooms to satisfy local meeting demand   An amenity for recreational users of the San Francisco Bay Trail    10 In addition, recurring qualitative benefits in the form of land lease payments, property taxes, TOT and  other assessments are summarized in Tab 6 of this document.    2.10 Financial Analysis (Confidential) The project budget and project revenues and expenses are packaged as a separate submittal along with  the financing plan.    2.11 References For references for Shashi Group, please contact:    Tiffany Cooper, Marriott Development,  [email protected]  Robert Sanger, Marriott Development, [email protected]   (Additional references available upon request)    2.12 Other Information Shashi Group looks at this as an exciting opportunity to grow in line with its strategy.  It is a nearby market  featuring a corporate campus, similar to the environments in which Shashi has been successful to‐date.    Since the RFQ date Shashi has grown its team substantially in order to assume management of its hotels.   Shashi anticipates it will manage this hotel with its in‐house management team.     5 • Th e S h a s h i P o r t f o l i o i s l o c a t e d n e a r m a j o r co r p o r a t e d e m a n d g e n e r a t o r s i n h i g h b a r r i e r s to e n t r y m a r k e t s i n S i l i c o n V a l l e y , C a l i f o r n i a • Th e A l o f t C u p e r t i n o a n d A l o f t S u n n y v a l e b o a s t so m e o f t h e h i g h e s t R e v P A R ’ s i n t h e e n t i r e Al o f t s y s t e m u n d e r M a r r i o t t • Th e H i l t o n G a r d e n I n n M o u n t a i n V i e w i s sc h e d u l e d t o u n d e r g o r e n o v a t i o n s i n No v e m b e r 2 0 1 7 t h a t w i l l i n c l u d e u p d a t e d gu e s t r o o m s a n d n e w b a t h r o o m s • An E l e m e n t ( a p p r o x i m a t e l y 1 2 0 t o 1 6 0 k e y s ) i s cu r r e n t l y u n d e r p l a n n i n g t o o p e n i n Q 4 2 0 2 0 i n Mo u n t a i n V i e w , C A • Sh a s h i b r o k e g r o u n d o n a 2 0 0 - r o o m l i f e s t y l e ho t e l i n S e p t e m b e r 2 0 1 7 w i t h a p l a n n e d op e n i n g i n Q 2 2 0 1 9 5 O p e r a t i n g H o t e l s & 2 U n d e r D e v e l o p m e n t Sh a s h i   G r o u p   – W h o   W e   A r e ARCHITECT ARCHITECTURAL DIMENSIONS James is responsible for overseeing the entire project and ensuring Quality Control and upkeep of all Systems. Jeffrey is the beginning to end Project Manager that ensures that there is continuity in all work to meet the Owner's program and all contractual requirements of all vendors to the Owner. Jeff manages the schedule and deliverables from the consultants. He is also the lead communicator with the Client. Joanne administers all permit research, submittals and tracking through the course of the project. Joanne ensures compliance with requlatory requirements for submittals and performance and is on board the entire project to watchdog continuity. James M. Heilbronner PRINCIPAL IN CHARGE Joanne M. Park AGENCY MANAGER Jeffrey MacAdam AIA SENIOR PROJECT MANAGER Team Members EDUCATION Bachelor of Architecture University of Kentucky Lexington, KY REGISTERED ARCHITECT California Arizona Colorado Delaware Hawaii Idaho Kentucky Nevada New Hampshire Oregon Texas Utah Virginia Washington LICENSES California 11531 YEARS OF EXPERIENCE 40 James M. Heilbronner PRINCIPAL IN CHARGE Jim is the founder and President of Architectural Dimensions, a full service architecture and design firm that tackles complex projects in multiple sectors, including retail, hospitality, restaurants, shopping centers, office, industrial and historic renovations. The Oakland based firm’s design approach is to work hard at responding to the natural surroundings and public attitudes toward a project. As Principal Architect, he is responsible for the project management of all phases of development–from feasibility analysis and design through construction, with the help of proprietary software, Collage. Jim oversees the hiring, mentoring and management of staff, develops standards and protocols for document production and plays an active role in ongoing marketing programs, including the preparation of proposals and fulfillment of the marketing plan. Jim is the Principal-in-Charge and Project Manager of the Oakland Army Base redevelopment for the expansion of the Port of Oakland’s operations. Current work involves soil and groundwater remediation and infrastructure upgrades. Given the size of the project at 303 acres, the development team consists of over twenty consultants, the developer, the City of Oakland and the Port of Oakland. He works closely with the development team members to ensure compliance with presiding regulations, extracting and assigning tasks and monitoring their progress. The project not only revived historic building, it invigorated Oakland’s Uptown neighborhood. Renovating the 1928 theatre required incorporating new construction while preserving the building’s historical elements. The finishes and backbone are old, but the systems are new, including the latest audio visual systems to make it a major entertainment venue. Jim was the Project Manager and Construction Administrator for the $87M restoration project. He focused on matching the building’s landmark status by strictly adhering to renovation requirement for historic structures. Constructed in the early 60’s, the public buildings were scheduled for remodel, but through his study of code issues, existing building deficiencies and program needs, a more radical development plan was adopted that yielded larger and new venues. Jim was the Project Architect and responsible for master planning the new approach. The entire project had a budget of $15M. Jim is the Program Manager for Hilton International, assisting in the expansion of the hotel chain throughout Northern California. The studio is currently working on the architectural design for fifteen facilities, valued at $300M. EXPERIENCE Oakland Army Base OAKLAND, CA Fox Theatre OAKLAND, CA Rossmoor Gateway Senior Community WALNUT CREEK, CA Hilton Hotel VARIOUS LOCATIONS, NORTHERN CALIFORNIA EDUCATION Bachelor of Architecture University of Texas Austin, TX School of Graphic Design Watford College England LICENSES California C 19978 YEARS OF EXPERIENCE 33 Jeffrey MacAdam AIA SENIOR PROJECT MANAGER Jeffrey reviews and oversees every project that comes into the office. He is the lead senior architect for all projects. Jeffrey provides day-to-day management of design and technical documents in the hospitality, retail, office, restaurant, industrial and historic preservation industries. He has over twenty years of award-winning architectural experience, including design development, CADD, project management and planning/energy consultation. He has overseen the development of many corporate prototype buildings. His talents are behind the firm’s continued success in site analysis and design. His ability to “know a site” puts Architectural Dimensions in the forefront for producing the type of site investigations, analysis reports and creative site layouts that clients admire and respect. Jeffrey has a thorough knowledge of codes and his ability to manage in-house staff together with coordination of consultants works to produce a seamless effort. Being an extremely tight site with close proximity to a residential neighborhood was just one of the issues managed by Architectural Dimensions. The hotel design incorporates the “Gen-2” interior concept. The main tower is accentuated by a large curved metal roof. The hotel features an outdoor swimming pool, spa and fire pit area. Jeffrey was Project Manager for all phases of the project. This four-story, 54,000 sq.ft. 129-room hotel is located within a large retail complex, close to Interstate 880. The mixed use site required substantial entitlement work with the city to obtain zoning changes and shared parking agreements. Wood frame buildings of this height are a challenge in California’s Seismic Zone, as oversized studs and hardware are required throughout. Jeffrey was the Project Architect for all project phases. The Hilton Garden Inn project is a four-story, 110,800 sq.ft., 176 room facility with two levels of underground parking to accommodate 178 vehicles. The hotel is a “U” shaped structure with a Porte Cohere for guest drop off. The hotel features amenities such as an on-site bar and restaurant, business center, an indoor pool and spa, fitness center and a patio area with an outdoor fire pit. The design of the building is contemporary, utilizing metal panel and glass curtain wall systems. The design incorporates large horizontal roof overhangs to emphasize architectural elements and add visual interest. Variations in height and the incorporation of vertical massing elements are utilized to break up the building mass. The building is also articulated to create a building base, body and cornice line. The project is currently pursuing a LEED Silver certification and is scheduled to open in the first quarter of 2015. Jeffrey is the Project Manager on all project phases. This five-story, 77,639 sq.ft., 128-room hotel replaced an old post office adjacent to State Highway 405, minutes from downtown Seattle. The hotel features a business center, lounge, an indoor swimming pool and spa and an outdoor fire pit area. Parking is on-grade around the building. There is a creek running through the western portion of the site as well as wetlands to the south constraining development. Native plants were used extensively to minimize the impacts to the natural environment and reduce water usage. The hotel opened in 2014 with a final cost of $8.5M. Jeffrey was Project Manager throughout all phases of the project. EXPERIENCE Springhill Suites MODESTO, CA Extended Stay America UNION CITY, CA Hilton Garden Inn & Suites PALO ALTO, CA Hampton Inn & Suites BELLEVUE, WA EDUCATION Masters of Architecture Rice University SCHOOL OF ARCHITECTURE Houston, TX Bachelor of Arts Smith College Northampton, MA SECTORS OF EXPERIENCE Hospitality Retail Schools Public Infrastructure NOTABLE PROJECTS Oakland Army Base Caltrans Laydown Yard Hampton Inn & Suites YEARS OF EXPERIENCE 8 Joanne M. Park AGENCY MANAGER Joanne is responsible for communication and permit expediting with all public and private agencies. Her participation ensures that a smooth working relationship is established and maintained with all agencies throughout the course of a project. She has developed ongoing relationships and established rapport with a large number of oversight entities. She is familiar with the requirements, timelines, impacts, and fees for planning, public works, building, fire, health, environmental, and utility agencies/companies throughout the Bay Area. Point-of-contact for all interface with agencies, third-party utilities and neighboring and stakeholder entities. Responsibilities include the preparation of agency submittals, fee estimates and schedules for the procurement of federal, state and local permits and approvals from agencies such as the Army Corps of Engineers, National Maritime Fisheries Service, U.S. Fish and Wildlife Service, California Department of Fish and Wildlife, Department of Toxic Substances Control, Regional Water Quality Control Board, California Public Utilities Commission, San Francisco Bay Conservation and Development Commission, Caltrans, Union Pacific Railroad and Port of Oakland. Develop and execute new service and relocation agreements with third-party utilities including PG&E, AT&T and the East Bay Municipal Utility District. Track project compliance with federal and state codes and statutes, state environmental requirements (CEQA) and local entitlement conditions of approval. Oversee the preparation of due diligence reports, agency fee estimates, master project schedules, entitlement and permit submittals for numerous hospitality and retail projects. Past projects include: Hampton Inn & Suites, Napa; Marriott Courtyard, Redwood City; Homewood Suites, San Jose; Hilton Garden Inn, Burbank; Hilton Garden Inn, Palo Alto; SpringHill Suites, San Bruno, SpringHill Suites, Belmont; SpringHill Suites, Sunnyvale; Denica’s Real Food Kitchen, Castro Valley; CVS, Hayward; CVS, San Leandro; CVS, Vacaville, and CVS, Gilroy. Past projects in the City of Oakland’s jurisdiction include: the Oakland Coliseum additions, Hampton Inn & Suites, Fruitvale Station Shopping Center, OAB Billboards, Caltrans Laydown Yard, Roli Roti Gourmet Rotisserie, Rotunda Garage, and CVS. EXPERIENCE Oakland Army Base OAKLAND, CA Hospitality & Retail Projects BAY AREA, CA EXTENDED STAY AMERICA Alameda, CA 129 ROOMS Dublin, CA 129 ROOMS Fremont, CA 106 ROOMS Livermore, CA 122 ROOMS Milpitas, CA 146 ROOMS Pleasant Hill, CA 122 ROOMS Rancho Cordova, CA 122 ROOMS Sacramento, CA 122 ROOMS Sandy, UT 132 ROOMS Santa Rosa, CA 122 ROOMS Union City, CA 121 ROOMS HAMPTON INN & SUITES Bellevue, WA 124 ROOMS Oakland, CA 220 ROOMS Concord, CA 147 ROOMS Elk Grove, CA 110 ROOMS Las Vegas, NV 106 ROOMS Sacramento, CA 122 ROOMS Seaside, CA 164 ROOMS West Sacramento, CA 118 ROOMS Kapolei, HI 175 ROOMS Napa, CA 115 ROOMS Oakland, CA 95 ROOMS HILTON GARDEN INN & SUITES Burbank, CA 210 ROOMS Palo Alto, CA 174 ROOMS Sunnyvale, CA 238 ROOMS HOMEWOOD SUITES San Jose, CA 410 ROOMS PARMANI HOTEL Palo Alto, CA 93 ROOMS MARRIOTT AC HOTEL S. San Francisco, CA 175 ROOMS VIRGIN HOTEL San Francisco, CA 200 ROOMS RESIDENCE INN Sacramento, CA 410 ROOMS Las Vegas, NV 111 ROOMS LA QUINTA, HOMESTEAD & MARRIOTT HOTEL Fremont, CA 435 ROOMS MARRIOTT COURTYARD ONE MARINA HOTEL Redwood City, CA 177 ROOMS FAIRFIELD INN & SUITES Alameda, CA 98 ROOMS STAYBRIDGE SUITES Sorrento Mesa, CA 132 ROOMS San Diego, CA 118 ROOMS VILLAGE HOTEL Mountain View, CA 165 ROOMS SPRINGHILL SUITES Belmont, CA 169 ROOMS American Canyon, CA 123 ROOMS Modesto, CA 111 ROOMS San Bruno, CA 152 ROOMS Vacaville, CA 120 ROOMS BOUTIQUE HOTEL Walnut Creek, CA 88 ROOMS STUDIOPLUS HOTELS Alameda, CA 129 ROOMS Dublin, CA 104 ROOMS Fremont, CA 129 ROOMS Marin, CA 114 ROOMS Sandy, UT 122 ROOMS Santa Rosa, CA 104 ROOMS Union City, CA 104 ROOMS Hotel Project List Represents Partial List The boutique hotel’s main façade, sitting on South El Camino and Hillcrest Avenue, features a vibrant and modern glass mosaic. The pair of adjacent 7-story towers will offer 48 condominium units and a 98-room hotel. The design also includes retail and office space on the first floor of the residential tower. The site offers perimeter landscaping and an Boutique Hotel MILLBRAE, CA STORIES 7 GUESTROOMS 98 CONDOMINIUMS 48 SITE AREA 33,000 S.F. underground garage with 170 parking spots, including 16 designated bicycle spaces. This statement hotel and its unique architecture will be sure to catch your eye when traveling between the heart of Silicon Valley & the downtown mecca of the tech industry. Millbrae offers a small town vibe with high quality living amenities. The new SpringHill Suites designed by AD in San Bruno, California is 5 stories, has 148 deluxe guestrooms, and embodies over 150,000 sq. ft. of indoor and outdoor meeting space, plus amenities. Included in the design is a restaurant and lounge, as well as an outdoor pool and sundeck. A private courtyard is provided by the unique shape of the hotel, which is perfect for outdoor meetings. This welcoming hotel entices visitors from San Francisco, as well as serving as a local amenity to the citizens of San Bruno. Springhill Suites SAN BRUNO, CA STORIES 5 GUESTROOMS 148 DELUXE BUILDING AREA 150,000 S.F. The new v Suites in Belmont, CA is 4 stories tall and approximately 19,510 sq. ft. It houses 169 guest rooms and is located on a 3.39-acre site parallel to the state highway 101. Currently under construction, this site is to be beautifully landscaped, and designed to be in harmony with its surroundings. Springhill Suites BELMONT, CA STORIES 4 GUESTROOMS 169 BUILDING AREA 19,510 S.F. SITE AREA 3.39 ACRE The new AC Hotels Marriott is situated within a stone’s throw of San Francisco, America’s Biotech Capital, and Silicon Valley. This prime Oyster Point location fronting the San Francisco Bay offers unparalleled access to the city and peninsula for business and travelers alike. The building program for this hotel calls for 175 guest rooms and 4,000 sq. ft. of meeting areas. The unique Oyster Cove waterfront site Marriott AC Hotel SOUTH SAN FRANCISCO, CA STORIES 6 GUESTROOMS 175 BUILDING AREA 114,000 S.F. MEETING AREA 4,000 S.F. provides a spectacular location for the hotel, and takes advantage of the green space by providing a friendly and comfortable water- oriented solution. It encourages hotel guests to engage in a variety of lifestyles and land and water based recreational amenities, while enjoying a drink or dining with immediate views of the water, and distant views of the San Francisco Bay. LANDSCAPE REED ASSOCIATES Reed Associates LANDSCAPE ARCHITECTURE Reed Associates has been providing complete landscape architectural services for over thirty-five years. The firm has a history of completing quality projects on time and within budget. As the Principal of Reed Associates, Mr. Reed has provided the marketing, management and design direction for a firm that consistently produces quality work on schedule. Mr. Reed has been responsible for securing and managing projects that include Hotels, Commercial and Industrial Parks, Retail Projects, and Residential Projects. Mr. Reed has been involved in many local and area volunteer projects. • Hotels • Corporate Complexes • Retail / Shopping Centers • Multi-Unit / Multi-Lot Residential Projects • Office Buildings / Business Parks • Industrial Parks American Society of Landscape Architects MASTER PLANNING Land use, circulation, and cost studies for commercial, industrial, residential, and urban space design. SITE CONSULTATION Site review and comments on existing conditions which require professional recommendations. PRELIMINARY DESIGN DEVELOPMENT Development of a preliminary design by meetings with client, site study, and analysis. COST ESTIMATION Provide budget estimates for conceptual schemes. PRESENTATION DRAWINGS Conceptual drawings and renderings for presentations to clients, financial institutions, and public agencies. CONSTRUCTION DOCUMENTS Landscape construction plans, landscape irrigation plans, landscape planting plans, landscape construction detailing and specifications. PROJECT MANAGEMENT Assistance with bid letting, review of construction submittals, and on-site construction inspection. Areas of Expertise Areas of Professional Affiliations Scope of Services Projects completed by Reed Reed Associates LANDSCAPE ARCHITECTURE Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2013 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: $300,000 Client: Oto Development Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2017 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: $250,000 Client: Architectural Dimensions Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2016 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: $325,000 Client: Lusardi Construction Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2016 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: $400,000 Client: Oto Development Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2018 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: Over $400,000 Client: KT Urban Scope of Work: Landscape Design: Planning Approval and Construction Drawings for the total hotel site Drawing Completed: 2016 Landscape Design Services: 100% by Reed Associates Estimated Landscape Costs: $270,000 Client: KT Urban Hilton Garden Inn IRVINE, CA Courtyard Marriott Hotel IRVINE, CA Hilton Garden Inn PALO ALTO, CA One South Market SAN JOSE, CA Silvery Towers SAN JOSE, CA Homewood Suites Hotel SAN JOSE, CA Projects STRUCTURAL DESIMONE PROJECT EXPERIENCE AC Hotel by Marriott Anaheim Plaza Hotel Atlantis Cove Dubai Atlantis Resort Al Ain Wildlife Park, Resort & Residences Disney Shanghai Resort Epic Kimpton Hotel Four Seasons Manale Bay Faena Versailles Hyatt Centric Hotel Hard Rock Hollywood Hard Rock Tampa Hard Rock Daytona Beach Mandarin Oriental Marquis One & Only Ocean Club Our Lucaya Beach & Golf Resort Portofino Bay Resort Ritz-Carlton Pearl Island Tampa Marriott Waterside Viceroy Anguilla Westin Rio Mar – Ocean Villas Westfield Valley Fair Mall PROFESSIONAL REGISTRATION Professional Engineer, Delaware, Florida, New York, Oklahoma, South Carolina, Texas, Louisiana WILLIAM R. O’DONNELL, PE, SECB Managing Principal William R. O’Donnell, Managing Principal for our San Francisco office joined the firm in 1990. His extensive experience includes hotel, resorts, healthcare, airports, large-scale renovations, high-rise residential and infrastructure. Mr. O’Donnell is leading the design effort for a $300 million expansion of the Westfield Valley Fair Mall in San Jose. When complete, Valley Fair will have been transformed from a regional mall into a lifestyle center with much expanded retail, restaurant, outdoor function space, and parking. He is also designing the AC Hotel in South San Francisco and the Hyatt Centric Hotel in Mountain View. He recently managed the design of an $8 billion residential community for Saudi Aramco in South Dhahran. The project includes over 8,000 residences in single and multi-family buildings, mosques, schools, recreation centers, police and fire stations, and other municipal buildings. Mr. O’Donnell recently completed the design of two Disney hotels supporting their new Shanghai Theme Park. He is currently designing a Ritz-Carlton Reserve on Pearl Island in Panama, an expansion to the One & Only Resort on Paradise Island, and the Honeycomb Residences at Albany in The Bahamas. He recently completed Island House, a boutique hotel adjacent to Lyford Cay in The Bahamas. Previous California projects include The Four Seasons Hotel and Residences, Metreon, and the Disney Feature Animation Studio. Other resort and hotel projects include Atlantis Paradise Island, Hard Rock hotels in Hollywood, Tampa, and Daytona Beach, the Mandarin Oriental on Brickell Key, the Four Seasons Tower on Brickell Avenue, the One & Only on Paradise Island, the Kimpton Hotel at Epic, Rock Resorts at the Marquis, the Eden Roc Resort Renovation and Expansion, the Ritz-Carlton South Beach Residences, and the Our Lucaya Beach Resort on Grand Bahama Island. Mr. O’Donnell received his Bachelor’s degree in Civil Engineering from the University of Miami and continued on to a Master’s Degree program focused on Structural Engineering. AWARDS • 2009 Miami AIA Chapter Outstanding Consulting Engineer PROFESSIONAL AFFILIATIONS • Board of Trustees, Barry University • Board Member, Industry Advisory Board, University of Miami also designed the AC Hotel in South San Francisco and the Marriott Hotels is introducing a new mid-market hotel brand to the U.S. called AC Hotel, with a goal of opening 200 AC Hotels in the next 10 years. DeSimone designed their first AC Hotel in the U.S., which opened in Miami Beach in Spring 2015, and now DeSimone has been retained to design their first AC Hotel on the West Coast, located at Oyster Point in South San Francisco. The project consists of a new 185-key, 6-story hotel which includes restaurant, retail, lobby bar, fitness center, pool, meeting rooms and back of house areas totaling approximately 111,400 sf. The project is located on a 2.2 acre parcel within the 20- acre Britannia Cove Development at Oyster Point. The building comprises 5-levels of light- frame Type III construction above a single-story concrete podium. A structural slab-on-grade and pile foundation system was used to overcome the poor soil conditions found at the site. AC HOTEL BY MARRIOTT South San Francisco, California CLIENT OTO Development ARCHITECT CallisonRTKL PROJECT SIZE 111,400 sf COMPLETION DATE 2018 The 6-story Village Hotel is part of a new development at The Village at San Antonio Center in Mountain View, California. The project comprises approximately 150,000 sf, with167 guestrooms, constructed of 5 levels of Type III-A construction atop a Type I-A concrete podium. The ground level of the project contains the entrance lobby and registration area, along with a restaurant and lounge, kitchen, retail spaces and back-of-house (BOH) support functions. The second floor contains meeting rooms, pool and pool deck, fitness center, several hotel rooms and additional BOH spaces. Levels 3-6 contain hotel rooms and the roof is at level 7. HYATT CENTRIC HOTEL Mountain View, California CLIENT OTO Development ARCHITECT CallisonRTKL PROJECT SIZE 150,000 sf COMPLETION DATE Under Construction NEW YORK 140 Broadway 25th Floor New York, New York 10005 T. 212.532.2211 F. 212.481.6108 MIAMI 800 Brickell Avenue 6th Floor Miami, Florida 33131 T. 305.441.0755 F. 786.383.2329 SAN FRANCISCO 44 Montgomery Street Suite 2040 San Francisco, California 94104 T. 415.398.5740 F. 415.967.2329 NEW HAVEN 55 Church Street 4th Floor New Haven, Connecticut 06510 T. 203.495.8270 F. 203.495.8273 LAS VEGAS 6625 South Valley View Boulevard Suite 124 Las Vegas, Nevada 89118 T. 702.677.3400 F. 702.677.3410 BOSTON 31 Milk Street Suite 1016 Boston, Massachusetts 02109 T. 617.936.4492 CHICAGO 10 South Riverside Plaza Suite 875 Chicago, Illinois 60606 T. 312.590.2278 AUSTIN 11801 Domain Blvd Austin, Texas 78758 3rd Floor T. 512.508.1080 ABU DHABI Al Hana Tower Mezzanine Level 2, Suite 210 Corniche and Alkhaleej Alarabi Street Abu Dhabi, UAE T. +971.2.650.5668 F. +971.2.650.5668 MEDELLÍN Calle 3 sur # 43A -52 Office 1602 Medellín, Colombia T. +574.331.0125 CIVIL SANDIS FIRM PROFILE Firm Background SANDIS is a professional services corporation specializing in civil engineering, traffic engineering, stormwater management, QSP/D, utility locating, 3D laser scanning, land surveying and planning. Established in Northern California in 1965, SANDIS is a California Corporation comprised of 165 employees. SANDIS employs the best and the brightest in our industry. We recruit well rounded individuals committed to innovation, excellence, leadership and environmental stewardship. Service Philosophy We deliver exceptional client service. At SANDIS, we continuously mold and shape the way we operate to reflect the growing and changing demands of our clients. We ask questions, listen attentively, and respond expediently. We pro-actively seek out ways to dissolve the line between client and consultant. We work diligently to enhance project execution and delivery. We do whatever it takes to best serve our clients. SANDIS looks for innovative ways to save time and money and to provide added value to each project. We collaborate extensively with our clients, consultants and design team members to ensure that design solutions are thoughtfully explored and evaluated. We strive to exceed our clients expectations at every stage of a project. 94 LEED Certified and Registered Projects We recruit well rounded individuals whom are committed to innovation, excellence, leadership and environmental stewardship. Company wide, SANDIS has made a commitment to sustainable design and employee accreditation. SANDIS has 94 LEED™ Certified and Registered LEED™ projects including: 12 LEED Platinum, 42 LEED Gold, 31 LEED Silver, and 9 LEED Certified. Our LEED Platinum experience includes the new UC Davis Graduate School of Business; and the Newark Center for Health Science and Technology, the first LEED Platinum community college campus in the State of California. SANDIS’ environmental stewardship also includes the development of UC Merced, the first wholly sustainable campus in the University of California system. SANDIS Office Location & Primary Point of Contact SANDIS Civil Engineers Surveyors Planners 636 9th Street, Oakland, CA 94607 T. 510.873.8866 I F. 510.873.8868 www.sandis.net Jeff Setera, PE COO Vice President D. 408.892.3792 [email protected] Firm Type California Corporation Year Established 1965 Number of Employees 165 FIRM PROFILE Civil Engineering: Site layout; grading and drainage plans; utility plans; road improvements; drainage/flood studies; creek improvements; storm water pollution prevention permit (SWPPP); NPDES compliance; construction ero- sion control plan; post construction erosion control plan; storm water quality control plan; regional water quality control board coordination; hydronic heating lines alignment and routing; chilled water alignment and routing; gas lines alignment and routing; steam lines alignment and routing; electri- cal system alignment and routing; telecommunications lines alignment and routing; cost estimating; bidding and permitting services; construction ad- ministration; preparation of record drawings; and plan checking/peer review. Traffic Engineering: Traffic control plans; traffic pattern impact; traffic signal plans; pedestrian studies; traffic signal warrant analysis; capacity analysis; roundabout analysis; traffic forecasting; traffic safety evaluations; trip gen- eration studies; state permitting applications; traffic studies; traffic counts; road way geometrics; intersection design; circulation plans; parking studies; pavement delineation and signing plans; construction staging plans; traffic impact analysis; traffic operation studies; and interchange analysis. QSD/QSP: BMP check lists; risk assessments & determination reports; water pollution control drawings, details & updates; SWPPPs, templates, exhibits & document management; discharge reporting; establishment of project accounts on smarts website; submittal coordination of PRDS & project cer- tification; coordination & implementation of BMPs; REAP inspections; pH & turbidity sampling & monitoring; preparation of annual reports; on-site BMP training for general contractors & major subs; NOAA website monitoring; rain event action plans (reaps); and state notification of project completion / notice of termination (NOT). Planning: Master planning, land planning, feasibility studies, facility and infrastructure assessments, subdivision planning, and storm drain planning/ storm water management. Surveying and Mapping: Boundary survey; topographic survey; ALTA/ ACSM survey; construction staking; tentative map; parcel maps; record of survey; easements/plats/legal descriptions; subdivision mapping; control survey; condominium plans; FEMA certificates; as-built survey; GPS surveys; leveling; lot line adjustments; right-of-way engineering; elevation verifica- tion; horizontal and vertical control plans; and 3D laser scanning. 3D Laser Scanning: as-built surveys; construction documentation; architec- tural surveys; topographic surveys; volume analysis / calculations; drainage surveys; and solar panel surveys. Location South San Francisco, CA Completion Ongoing Construction Cost $150+ Million Site Size 2.1 Acres AC Marriott Oyster Point The new Marriott at Oyster Point brings a unique modern design to the South San Francisco waterfront landscape. The site is located near Highway 101 and the South San Francisco Caltrain Station, providing multiple transit options for guests traveling between the City of San Francisco and San Francisco International Airport. One key challenge on this project is the location of the site in proximity to the San Francisco Bay. With only a small road separating the two, our civil engineers and stormwater technicians needed to pay close attention to grading and drainage plans both during construction and after completion that the project remained outside of required Bay Conservation Setback Springhill Suites SANDIS is working with OTO Development and Architectural Dimensions to design a new Springhill Suites hotel near Highway 101 in Belmont, California. The new hotel is surrounded by various corporate campuses including the homes of Oracle, Nikon, and Electronic Arts. The site located in Belmont but abutting 2 additional City’s Limit Lines (Redwood City & San Carlos) as well as a State of California interstate (HWY 101) right of way made permitting this project a logistical challenge. With several permits required from various jurisdictions in hand, the project is starting construction in early 2016. Location Belmont, CA Architect Architectural Dimensions Completion Ongoing Rooms 169 Size 3.4 Acres Owner OTO Development MEP ROBISON Robison MEP Robison Engineering, Inc. is a full service mechanical, electrical, and plumbing design firm located in Lynnwood, Washington. The firm serves the architectural community with design and analysis for building mechanical, plumbing, and electrical systems. The firm emphasizes cross discipline training in its staff to provide an integrated view of mechanical, plumbing, and electrical. The staff of 41 includes 36 engineers and designers. Robison Engineering specializes in multi-unit residential facilities. This includes hotels, condominiums, and apartments. Although the tenants and financing for these projects may vary widely, the design issues for mechanical, electrical, and plumbing are very similar. This allows our staff to practice as experts by performing designs for these types of projects on a continuing basis. Tacoma, WA Bellevue, WA Newark, CA Burbank, CA Medford, OR Lake Forest, CA Cypress, CA Newark CA Scottsdale, AZ Sacramento, CA Bellevue, WA Portland, OR Hillsboro, OR Boise, ID Vancouver, WA Hawthorne, CA Medford, OR Chandler, AZ El Centro, CA Lancaster, CA Issaquah, WA Hillsboro, OR Bothell, WA Embassy Suites Palmdale, CA Paso Robles, CA Oceanside, CA Santa Ana, CA San Jose, CA Long Beach, CA Campbell, CA Fairfield, CA San Diego, CA Long Beach, CA College Station, TX Issaquah, WA Issaquah, WA Lancaster, CA Medford, OR Bellingham, WA Redding, CA Richland, WA Bellingham, WA Hotel Indigo, San Diego, CA Ontario, CA Hillsboro, OR Newark, NJ Hyatt 6th & Denny, Seattle, WA Holiday Inn, Springfield, OR Everett, WA Mankato, MN Goleta, CA Maui, HI Post Street San Francisco, CA Marriott Fairfield Inn Portland, OR Oceanside, CA San Juan Capistrano, CA Woodbridge, NJ LAX Airport, CA Maxwell Hotel, Seattle, WA Arctic Club Hotel, Seattle, WA Best Western Hotel, Pasco, WA Chehalis Tribal Hotel, Rochester, WA Burlington, WA Lacey, WA Turlock, CA Portland, OR Courtyard by Marriott Residence Inn by Marriott Marriott SpringHill Suites Marriott TownePlace Suites Hilton Garden Inn Hotel Projects - Full MEP Design Robison MEP Hyatt Fisherman's Wharf SAN FRANCISCO, CA Hilton Doubletree SEATAC AIRPORT, WA Hotel Adagio SAN FRANCISCO, CA Hilton Doubletree SAN JOSE, CA Hotel California SAN FRANCISCO, CA Le Meridien Hotel SAN FRANCISCO, CA Maui Resort HANA, HI Fess Parker Hilton Doubletree SANTA BARBARA, CA Marriott SEATAC AIRPORT, WA Hotel Zephyr SAN FRANCISCO, CA Hilton Hotel OAKLAND AIRPORT, CA Prescott Hotel SAN FRANCISCO, CA JW Marriott SAN FRANCISCO, CA Hilton Oceanfront Resort CARLSBAD, CA Recent Hotel Renovation & Resort Projects Residence Inn by Marriott Residence Inn by Marriott Hotel Zephyr Hotel Adagio Hotel Adagio Hotel Adagio November 2, 2017 Mr. Dipesh Gupta Shashi Group 20370 Town Center Lane, Suite 100 Cupertino CA 95014 RE: Proposed 204-room Westin Hotel and 138-room Element Hotel in South San Francisco, California Good day Mr. Gupta, Thank you for your interest in our Westin and Element Brands, we greatly value and look forward to continuing and growing our relationship with Shashi Group. We understand that you are proposing to develop a full-service Westin Hotel and extended-stay Element by Westin Hotel located at Oyster Point in South San Francisco, CA. After a review of the location, we welcome the opportunity to continue working with Shashi Group on the proposed development of this property as both a Westin and Element Hotel. Regarding our Westin Brand - every aspect of the Westin experience is designed with travelers well-being in mind, ensuring that guests leave feeling better than when they arrived. Through innovative, signature products and programs combined with instinctive, personal service and intuitive design, Westin delivers on each guest’s every need, driving unmatched guest loyalty and industry -leading performance. With a remarkable portfolio of over 200 properties in nearly 40 countries, Westin continues to grow strategically, with almost 50 properties in the pipeline. Whether innovating from the ground up or revitalizing a property, owners are well equipped to produce a world-class property with robust returns. With respect to our Element Brand - Element Hotels offers the essentials of balanced travel for today’s standard and longer-stay traveler who does not want to compromise on comfort and design. Element Hotels is grounded in smart, environmentally friendly thinking, from its products, services and programs to its physical spaces with flowing, multipurpose areas that maximize space. Its vibrant, optimistic energy is contagious and has developers signing on and guests eagerly approving with soaring satisfaction scores. Marriott International, Inc. is a leading lodging company based in Bethesda, Maryland with more than 5,600 properties, in 85 countries and territories. For more than 59 years, the company has been committed to guest satisfaction. Upon review of the market, we believe this to be a great opportunity to offer both our Westin and Element Brands. Please let me know if there is anyone you would like for us to meet with to share the Brand stories and their overall performance within the upper-upscale, full service and extended-stay hotel segments. Thank you again for your interest in Marriott International and our Westin and Element Brands, and please let us know how we can assist in progressing discussions to move forward with this very exciting project. We look forward to working with you again on another successful Shashi hotel development project. Kind Regards, Tiffany Cooper Robert Sanger Vice President, Marriott Full Service Brands Vice President, Marriott Select Brands **Please note that this project will be subject to our standard due diligence and corporate approval process. This is a non-binding letter which speaks only to our level of interest and in no way should be interpreted as approval of a deal or execution of an agreement. Marriott International, Inc. Lodging Development Tiffany Cooper, Vice President, Development – Marriott Full Service Brands Robert Sanger Vice President, Development – Marriott Select Brands SH A S H I   H O T E L   D E V E L O P M E N T OY S T E R   P O I N T SO U T H   S A N   F R A N C I S C O WE S T I N   A N D   E L E M E N T   H O T E L   B R A N D S MI L E S T O N E Da y   1 12 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 37383940 PR O J E C T   A W A R D   B Y   C I T Y   O F   S S F * IN V E S T I G A T I O N ‐ P R E D E S I G N SC H E M A T I C   D E S I G N SC H E M A T I C   D E S I G N   R E V I E W BR A N D   R E V I E W S FI N A L I Z E   S C H E M A T I C S EN T I T L E M E N T S    P R E P A R A T I O N    C I T Y   E N G A G E M E N T    D O C U M E N T A T I O N    R E V I E W    A R B    P C    C C DD   D E S I G N CD   D E S I G N PE R M I T S    G R A D I N G   &   F O U N D A T I O N    B U I L D I N G   P E R M I T S CO N S T R U C T I O N    N O T I C E   O F   F I N A N C I N G *    N O T I C E   T O   P R O C E E D *    C O N S T R U C T I O N    P R E O P E N I N G    O P E N MO N T H X-1MASTERPLAN GROUND FLOOR PLAN X-2 SH A S H I G R O U P - 2 1 0 R O O M W E S T I N A N D 1 3 8 R O O M E L E M E N T A T O Y S T E R P OI N T Su m m a r y o f R e c u r r i n g B e n e f i t s t o C i t y 20 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 Bu i l d i n g G r o s s S F 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 2 3 9 , 1 6 5 239,165 Ke y s 3 4 8 3 4 8 3 4 8 3 4 8 3 4 8 3 4 8 3 4 8 3 4 8 3 4 8 348 Oc c u p i e d R o o m N i g h t s 1 0 0 , 7 1 5 1 0 5 , 9 7 3 1 0 9 , 1 9 1 1 0 8 , 8 9 3 1 0 8 , 8 9 3 1 0 8 , 8 9 3 1 0 9 , 1 9 1 1 0 8 , 8 9 3 1 0 8 , 8 9 3 108,893 Pr o j e c t e d R e v e n u e s Ro o m R e v e n u e s $ 2 5 , 5 2 3 , 8 6 3 $ 2 8 , 5 3 5 , 0 0 7 $ 2 9 , 9 8 9 , 5 3 8 $ 3 0 , 5 0 5 , 7 5 1 $ 3 1 , 1 1 5 , 8 6 6 $ 3 1 , 7 3 8 , 1 8 3 $ 3 2 , 4 6 1 , 6 4 0 $ 3 3 , 0 2 0 , 4 0 6 $ 3 3 , 6 8 0 , 8 1 4 $ 33,680,814 Fo o d & B e v e r a g e R e v e n u e s 6 , 5 4 6 , 4 7 5 7 , 2 3 2 , 6 8 3 7 , 8 2 4 , 9 2 8 8 , 1 9 3 , 7 2 6 8 , 6 0 3 , 4 1 2 9 , 0 3 3 , 5 8 3 9 , 5 1 1 , 2 4 9 9 , 9 5 9 , 5 2 5 1 0 , 4 5 7 , 5 0 1 10,980,376 Pr o j e c t e d B e n e f i t s A. T r a n s i e n t O c c u p a n c y T a x $ 2 , 5 5 2 , 3 8 6 $ 2 , 8 5 3 , 5 0 1 $ 2 , 9 9 8 , 9 5 4 $ 3 , 0 5 0 , 5 7 5 $ 3 , 1 1 1 , 5 8 7 $ 3 , 1 7 3 , 8 1 8 $ 3 , 2 4 6 , 1 6 4 $ 3 , 3 0 2 , 0 4 1 $ 3 , 3 6 8 , 0 8 1 $ 3,368,081 (1 0 % o f R o o m R e v e n u e ) B. C o m m u n i t y F a c i l i t i e s D i s t r i c t a n d L e a s e h o l d T a x 93 , 2 7 4 9 5 , 6 0 6 9 7 , 9 9 6 1 0 0 , 4 4 6 1 0 2 , 9 5 7 1 0 5 , 5 3 1 1 0 8 , 1 7 0 1 1 0 , 8 7 4 1 1 3 , 6 4 6 116,487 (0 . 3 9 P e r S q u a r e F o o t s u b j e c t t o C P I I n c r e a s e s ) C. P r o p e r t y T a x e s 1, 1 7 3 , 9 6 5 1 , 1 9 7 , 4 4 4 1 , 2 2 1 , 3 9 3 1 , 2 4 5 , 8 2 1 1 , 2 7 0 , 7 3 7 1 , 2 9 6 , 1 5 2 1 , 3 2 2 , 0 7 5 1 , 3 4 8 , 5 1 6 1 , 3 7 5 , 4 8 7 1,402,996 (1 . 0 6 1 % R a t e ) D. C o n f e r e n c e C e n t e r T a x 25 1 , 7 8 7 2 6 4 , 9 3 3 2 7 2 , 9 7 8 2 7 2 , 2 3 3 2 7 2 , 2 3 3 2 7 2 , 2 3 3 2 7 2 , 9 7 8 2 7 2 , 2 3 3 2 7 2 , 2 3 3 272,233 ($ 2 . 5 0 P e r O c c u p i e d R o o m ) E. S a l e s T a x ( F o o d & B e v e r a g e R e v e n u e s ) 11 4 , 5 6 3 1 2 6 , 5 7 2 1 3 6 , 9 3 6 1 4 3 , 3 9 0 1 5 0 , 5 6 0 1 5 8 , 0 8 8 1 6 6 , 4 4 7 1 7 4 , 2 9 2 1 8 3 , 0 0 6 192,157 (1 . 7 5 % o f F & B R e v e n u e ) F. G r o u n d L e a s e Ba s e R e n t 3 0 0 , 0 0 0 3 0 0 , 0 0 0 3 0 0 , 0 0 0 3 0 0 , 0 0 0 3 0 0 , 0 0 0 3 7 8 , 7 4 2 3 7 8 , 7 4 2 3 7 8 , 7 4 2 3 7 8 , 7 4 2 378,742 Pe r c e n t a g e R e n t 2 1 0 , 4 7 7 2 7 0 , 7 0 0 2 9 9 , 7 9 1 3 1 0 , 1 1 5 3 2 2 , 3 1 7 2 5 6 , 0 2 2 2 7 0 , 4 9 1 2 8 1 , 6 6 6 2 9 4 , 8 7 4 294,874 To t a l G r o u n d L e a s e P a y m e n t s 5 1 0 , 4 7 7 5 7 0 , 7 0 0 5 9 9 , 7 9 1 6 1 0 , 1 1 5 6 2 2 , 3 1 7 6 3 4 , 7 6 4 6 4 9 , 2 3 3 6 6 0 , 4 0 8 6 7 3 , 6 1 6 673,616 To t a l P r o j e c t e d B e n e f i t s $ 4 , 6 9 6 , 4 5 3 $ 5 , 1 0 8 , 7 5 6 $ 5 , 3 2 8 , 0 4 8 $ 5 , 4 2 2 , 5 8 0 $ 5 , 5 3 0 , 3 9 1 $ 5 , 6 4 0 , 5 8 6 $ 5 , 7 6 5 , 0 6 7 $ 5 , 8 6 8 , 3 6 3 $ 5 , 9 8 6 , 0 6 9 $ 6,025,570 Oy s t e r P o i n t N o v 3 1 7 _ F i n a l 11 / 3 / 2 0 1 7 City Benefits Westin photo caption The Westin Austin Downtown, USA Westin Hotels & Resorts is the preeminent wellness brand in hospitality, with over 215 inspiring destinations and a unique brand positioning backed by a global macro trend with staying power. Westin serves as a partner in its guests’ well-being, empowering them to maintain and enhance their routines while on the road so they can be the best version of themselves while traveling. Through innovative, signature products and programs combined with instinctive service and intuitive design, Westin delivers on each guest’s every need, driving unmatched loyalty and industry-leading performance. Westin continues to grow strategically, with nearly 50 properties in the pipeline. Let’s Rise With a distinct and contemporary point of view, Westin dominates its category by nearly every measure. Whether innovating from the ground up or revitalizing a property, owners are well equipped to produce a world-class property with robust returns. Experience the benefits of an established hotel brand enriched by a history of innovation, compelling promise and meaningful offerings delivered through passionate service culture. MARRIOTTDEVELOPMENT.COM As of December 31, 2016, there were 124 Westin hotels open and operating in North America (U.S. and Canada); of these, 74 were franchised. The data above reflects the performance of the 55 franchised Westin hotels open for 24 months as of December 31, 2016, for which Smith Travel Research, Inc. has data and which did not undergo material renovations or expansions during the 24 months preceding conversion. For the 55 STR Included Franchised Hotels, 26 hotels or 47.3% achieved an average occupancy rate equal to or greater than 76.4%; 25 hotels or 45.5% achieved an average daily room rate equal to or greater than $175.33; 25 hotels or 45.5% achieved or exceeded the average RevPAR of $134.01; and 32 hotels or 58.2% achieved an average RevPAR Index equal to or greater than 107.7. There is no assurance you will do as well. OFFER AND SALE BY PROSPECTUS ONLY. See Item 19 of our Franchise Disclosure Document dated March 31, 2017, for additional details. NORTH AMERICA PERFORMANCE Occupancy: 76.4% Average Daily Rate: $175.33 RevPAR: $134.01 RevPAR Index: 107.7% Source: 2017 Franchise Disclosure Document TARGET COMPETITORS Hilton Hyatt DISTRIBUTION (Q1 2017)UNITS ROOMS WORLDWIDE OPEN 216 81,186 WORLDWIDE PIPELINE 49 12,093 NORTH AMERICA OPEN 124 51,642 NORTH AMERICA PIPELINE 18 4,034 The Westin Resort & Spa, Puerto Vallarta, Mexico The Westin Jakarta, Indonesia The Westin Resort, Costa Navarino, Greece Key Competitors: Homewood Suites, Hyatt House Unprecedented Growth Momentum Since its launch, Element Hotels has created a buzz in the development community, resulting in a strong pipeline that continues to grow in key markets globally. With growing guest demand, Element is slated to nearly quadruple its footprint by 2019. Flexible Building Options Element has pioneered sustainable design while enhancing the guest experience. Its flexible design approach allows for customization of each product based on market and building type—including prototypical and non-prototypical new builds, conversions and adaptive reuse projects. Distribution* Asia Pacific: 3 Hotels / 769 Rooms Europe: 2 Hotels / 293 Rooms Middle East & Africa: n/a North America: 25 Hotels /3,617 Rooms Pipeline* Asia Pacific: 8 Hotels / 1,866 Rooms Europe: 1 Hotel / 78 Rooms Middle East & Africa: 7 Hotels / 1,375 Rooms North America: 56 Hotels / 7,056 Rooms With a rapidly expanding portfolio, Element Hotels is transforming the extended stay segment. Bright modern design, eco-conscious practices and an innovative guest experience that resonates with today’s traveler is driving soaring satisfaction scores and increasing developer demand. With updated room types, flowing multipurpose areas and a reduced cost to build, the time to build is now. Asia Pacific 3 Open 8 Pipeline North America 25 Open 56 Pipeline Middle East & Africa 7 Pipeline Europe 2 Open 1 Pipeline Element HotelsBuild better. *Q2 2017 Build better. Contact us: 301-380-3200 | marriottdevelopment.com Franchise Hotel Performance** **2017 Element Franchise Disclosure Document The data above reflects the performance of all 11 franchised Element hotels open and operating in North America for 24 months as of December 31, 2016, for which Smith Travel Research, Inc. has data and which did not undergo material renovations or expansions during the 24 months preceding December 31, 2016. Of the 11 Element hotels, 4 (36.4%) achieved an average occupancy rate equal to or greater than 84%; 3 (27.3%) achieved an average daily room rate equal to greater than $153.85; 1 (9.15%) achieved or exceeded the average RevPAR of $139.26; 4 (36.3%) achieved an average RevPAR Index equal to or greater than 103.3; 7 (63.6%) achieved an average centralized marketing delivery contribution to revenue equal to or greater than 67%; and 7 (64%) achieved an SPG contribution to occupancy equal to or greater than 46.7%. There is no assurance you will do as well. OFFER AND SALE BY PROSPECTUS ONLY. See Item 19 of our Franchise Disclosure Document dated March 31, 2017, for additional details. $Competitive Fee Structure** Application: License: Program: Loyalty (SPG): $60,000 plus $450 per room in excess of 150 rooms 5.5% of Gross Rooms Sales 4% Gross Rooms Sales including sales, marketing and other costs 4.9% of qualified charges (0% for new hotel enrollment 1st stays) Cost/Key: $117K - $176K/125 keys Cost To Build** Average Occupancy Rate:84% RevPAR: $129.26 Average Daily Rate: $153.85 RevPAR Index: 103.3 Starwood Preferred Guest Contributed 46.7% of Occupancy Central Marketing Delivery Channels Generated 67% of Room Revenue Restore: Restore pantry has been reimagined so that guests can stock up on healthy snacks, local specialties and more at check-in. Savory, fresh ready-to-cook meals plus wine and beer on tap allow guests access to everything they need anytime. Relax: Rediscover the Relax evening reception. Guests can settle in and mingle over complimentary sustainable wine and local beer options from a fully recyclable keg or enjoy light bites focusing on fresh ingredients. With options for a custom bar cart and full service bars, there is a way for guests at every hotel to unwind four nights a week. Rise Breakfast: Wake up to our signature breakfast featuring a fresh made-to-order item that rotates daily. Wholesome granola, fresh cut and whole fruit, a parfait bar plus gourmet coffee and more help guests start their day energized. Guestroom/Communal Room: The guestrooms are an open, energizing environment with extra space, clean designs and an abundance of natural light. To continue to innovate in the extended stay space, Element’s new “Communal Room” concept consists of multiple rooms centered around a common living room space that allows guests in the surrounding rooms to congregate, interact, work or dine – even more space to live their lives. DRIVING INNOVATION. Spacious guestrooms with fully equipped kitchens, spa-inspired bathrooms, the signature Heavenly Bed, and signature programming, Element is geared at today’s longer-stay travelers. Element continues to evolve, offering additional room types and innovative activation of the public space to accommodate those that want to fuel a life in balance on the road. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-1196 Agenda Date:12/11/2017 Version:1 Item #:3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: the 4.7 acre portion of APN 015-010-600, dedicated for a proposed hotel. Agency negotiator: Alex Greenwood Negotiating parties:Ensemble Real Estate Investments,Shashi Group,JMA Ventures,and City of South San Francisco Under negotiation: Price and Terms of payment City of South San Francisco Printed on 12/7/2017Page 1 of 1 powered by Legistar™