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Request for Proposal:
Indiana University of Pennsylvania's Kovalchick Convention and
Athletic Complex Seeks Adjacent Select-Service Hotel Development


June, 2012
- Indiana University of Pennsylvania (“IUP”), a member of the Pennsylvania State System of Higher Education, is seeking qualified hotel developers to respond to a Request for Proposal. This request for proposal seeks qualified hotel developers who would develop, construct, own and operate a high quality, upscale, select-service nationally franchised hotel to be constructed on a 3.3 acre site located adjacent to the 148,500 square foot Kovalchick Convention and Athletic Complex (“Kovalchick Complex”). The University will not convey title to the site, but will enter into a long term ground lease of the site with the Developer. The end result of this RFP process is to achieve a negotiated hotel development agreement and ground lease between IUP and a qualified hotel developer.
 
The proposed hotel will be the main university-oriented hotel in the city of Indiana, Pennsylvania. The hotel market in Indiana consists of many limited-service, and one full-service property. In 2008, IUP commissioned Hotel & Leisure Advisors, LLC to complete a market feasibility and financial analysis study, along with an economic impact study for the proposed hotel. Copies of these studies are available upon request to qualified respondents.
 
According to Smith Travel Research, the 2011 market occupancy for the Indiana competitive set of hotels finished a strong 65.7% with an ADR of $94.07. These figures compare to the year-end 2011 East North Central regional average of 56.6% at $87.96. Revenue per Available Room (RevPAR) for the competitive set of properties has averaged a significant 8.1% growth since 2007. RevPAR growth in 2011 was up 12.7% over 2010. Year-to-date RevPAR through April 2012 is up 16.8% over 2011. The market is heavily influenced not only by IUP and events surrounding the Kovalchick Complex (opened in March 2011), but also by the Pennsylvania Marcellus Shale Natural Gas Production and the room demand generated by the energy sector and natural gas industries.

Requests for copies of the bid package should be made in writing referencing ADV-440 and directed to the attention of Robert L. Bowser, Jr. CPSM, C.P.M., MCIPS, Procurement Services, IUP, Robertshaw Building, 650 S. 13th Street, Indiana, PA 15705; Fax 724-357-2670; or email rbowser@iup.edu. Interested hotel developers should submit their requests to be placed on the bidders list no later than 1:30 P.M. (EST) on June 19, 2012. Bid packages will be made available for download from the university web-site to hotel developers on or after June 20, 2012. The University encourages responses from small and disadvantaged, minority and women-owned firms.

Ample time has been allocated for the proposal process. A mandatory pre-proposal conference and site tour is scheduled for July 12, 2012 at the Kovalchick Complex on IUP’s campus for interested hotel developers. Interested hotel developers will have the opportunity for a question and answer period during the visit. All bids are due at 1:30 P.M. (EST) on September 14, 2012, at 650 South 13th Street, Indiana, PA, 15705-1087.
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Contact:

Robert L. Bowser, Jr. CPSM, C.P.M., MCIPS
Procurement Services
Indian University of Pennsylvania
Robertshaw Building
650 S. 13th Street, Indiana, PA 15705-1087
rbowser@iup.edu
Fax 724-357-2670
Reference: ADV-440



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