City of Salem, Virginia • RFP #2026-009 • Hotel Market Study & Feasibility Analysis

RFP #2026-009

Hotel Market Study and Feasibility Analysis

City of Salem, Virginia

Purchasing Department 114 North Broad Street Salem, Virginia 24153

Phone: (540) 375-3063

RFP Number: RFP #2026-009

Title: Hotel Market Study and Feasibility Analysis

Issue Date: Monday, June 22, 2026

Questions Deadline: Wednesday, July 1, 2026, 3:00 P.M. (Local Time)

Proposals Due: Friday, July 17, 2026, 3:00 P.M. (Local Time)

Procurement Contact: Benjamin Denton, Purchasing Manager 114 North Broad Street, P.O. Box 869

Salem, Virginia 24153 Phone: (540) 375-3063

Email: bkdenton@salemva.gov

This public body does not discriminate against faith-based organizations in accordance with the Code of Virginia, §2.2-4343.1, or against a bidder or Offeror because of race, religion, color, sex, national origin, age, disability, sexual orientation, gender identity, political affiliation, or veteran status, or any other basis prohibited by state law.

The City of Salem is soliciting sealed proposals from qualified Offerors to provide consulting services for the preparation of a hotel market study, including a facility recommendation and feasibility analysis, in accordance with the requirements set forth in this Request for Proposal (RFP).

The City of Salem, Virginia, and its officers, employees, and agents shall not be responsible for the premature opening of any proposal envelope or package that is not properly sealed and clearly marked in accordance with the requirements set forth herein.

The City of Salem reserves the right to cancel this solicitation, reject any or all proposals, waive minor informalities or irregularities, award in whole or in part, and make award to the Offeror whose proposal is determined, in the sole discretion of the City, to be in the best interest of the City.

During an active solicitation, all communications (email, phone, text, letter) must be conducted through the Purchasing Department. Vendors who violate this protocol may be disqualified at the discretion of the Purchasing Manager.

As this is a Request for Proposal, an evaluation committee will be established to review and evaluate all responses. No information regarding the identity of either the Offerors or the contents will be released until after the negotiation process. Once an award has been made, all proposals will become public information. If your proposal contains proprietary information, please make note of such on the form attached (Attachment A

- Proprietary Information Form)

The “Offeror Data/Signature Sheet” found below must be completed by the Offeror and returned with the proposal. By signing, the Offeror agrees that all pricing and terms shall remain firm for ninety (90) days following the proposal opening date.

Any notice of proposal withdrawal must be submitted in writing to the Purchasing Department prior to the proposal opening

OFFEROR DATA/SIGNATURE SHEET

Legal Name and Address:

Signature (ink): Date:

Printed Name: Title:

Phone: Fax:

Email: Business License #:

Federal Tax ID #: VA SCC ID #:

TABLE OF CONTENTS

OFFEROR DATA/SIGNATURE SHEET

TABLE OF CONTENTS

I. PURPOSE

II. BACKGROUND

III. SCOPE OF WORK

IV. PROPOSAL PREPARATION AND SUBMISSION REQUIREMENTS

V. EVALUATION AND AWARD OF CONTRACT

VI. CONTRACT PERIOD

VII. CONTRACT ADMINISTRATOR

VIII. COOPERATIVE AGREEMENT

IX. REFERENCES

X. INVOICING

XI. PROTESTS

XII. RELEASE OF INFORMATION AND AWARD ANNOUNCEMENT

XIII. REJECTION AND AWARD OF PROPOSAL

XIV. INSURANCE

XV. GENERAL TERMS AND CONDITIONS

XVI. SPECIAL TERMS AND CONDITIONS

Attachment A – Proprietary Information Form

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

I. PURPOSE

The City of Salem, Virginia, is soliciting sealed proposals from qualified firms or individuals to provide consulting services to assess the demand for hotel accommodations within the City and to conduct a comprehensive hotel market study, including facility recommendations and a feasibility analysis.

The purpose of the study is to evaluate market demand, analyze economic conditions, project revenues and expenses, and determine the feasibility of potential hotel development opportunities within the City of Salem.

II. BACKGROUND

The City of Salem is an independent city encompassing approximately fourteen (14) square miles, nestled in the heart of Virginia’s Blue Ridge Mountains within the Roanoke Region. Conveniently located along Interstate 81, Salem is home to approximately 25,346 residents and is part of the larger Roanoke Metropolitan Area, which has a regional population of approximately 313,786.

Salem is home to Roanoke College, a vibrant downtown district, Salem Memorial Ballpark, the Salem Civic Center, and several active commercial and industrial corridors. The City hosts numerous regional events, athletic competitions, tournaments, and conferences that generate lodging demand throughout the year.

The City of Salem is evaluating opportunities to expand its hospitality and lodging infrastructure in support of its long-term economic development objectives. This study will provide information to assist the City in evaluating the viability, appropriate type, size, and potential location of new hotel accommodations within the City.

III. SCOPE OF WORK

The selected Consultant shall provide a comprehensive hotel market study, including facility recommendations and a feasibility analysis, for the City of Salem. At a minimum, the study shall address the following:

A. Community-Wide Market Evaluation

• Assess current and projected future demand for hotel accommodations within the City of Salem and the surrounding competitive market area.

• Evaluate the existing and potential future competitive lodging supply, including any properties currently under development or announced.

• Determine the market share that could reasonably be captured by new hotel development in the

City.

• Identify the types of hotels (e.g., limited-service, full-service, extended-stay, boutique) and the number of rooms that best fit the market.

B. Demand Analysis

• Identify and quantify primary demand generators, including corporate, group, leisure, event-driven, sports, government, medical, and institutional segments.

• Assess historical and projected occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) for the market area.

• Evaluate demand patterns related to the Moyer Sports Complex, Salem Civic Center, Roanoke

College, Salem Memorial Ballpark, and other major regional demand generators.

C. Facility Recommendation

• Recommend the optimal size (number of rooms), quality tier, and type of lodging facility that best fits the Salem market.

• Recommend an optimal brand chain scale or independent/boutique positioning for any proposed hotel development.

• Identify and evaluate potential development sites within the City of Salem for their relative suitability.

D. Financial Feasibility Analysis

• Project income and expense statements for a proposed hotel over a minimum five (5) to ten (10) year period.

• Evaluate the economics of proposed hotel development, including estimated development costs, projected operating performance, and return on investment metrics.

• Assess potential public financing or incentive mechanisms (e.g., TIF, grants, public-private partnership structures) that may enhance project feasibility.

E. Final Deliverables

• A written final report presenting all findings, analyses, recommendations, and supporting data.

• An executive summary suitable for presentation to City leadership and stakeholders.

• An oral presentation of findings to City staff and/or City Council upon request.

• All supporting data files, financial models, and documentation used in preparation of the study.

IV. PROPOSAL PREPARATION AND SUBMISSION REQUIREMENTS

A. General Requirements

• Proposals must be received by hand delivery, mail, or electronic submission through eVA at www.eva.virginia.gov no later than 3:00 p.m. (local time) on Friday, July 17, 2026. Electronic submission through eVA is preferred.

• Offerors submitting paper proposals shall provide one (1) original and two (2) copies in a sealed envelope clearly marked: “Attn: Purchasing Dept. – RFP #2026-009 – Hotel Market Study and Feasibility Analysis.”

Paper proposals must be mailed or hand-delivered to: City of Salem Purchasing Department, 114 North Broad Street, Salem, VA 24153.

• Offerors submitting electronically must be registered vendors in eVA (Business Opportunities > Virginia Business Opportunities). Registration is free. For eVA assistance contact 1-866-289- 7367 or eVACustomerCare@dgs.virginia.gov.

• The City is not responsible for delays caused by the eVA platform, vendor registration issues, or internet outages. Timely submission is the Offeror’s sole responsibility.

• Proposals submitted via facsimile or email will not be accepted.

• If submitting a paper response, Proposals must be signed in ink by an authorized officer. Any erasures or corrections must be initialed in ink.

• Late proposals will not be considered and will be marked “Late” and retained unopened.

• Failure to comply with any requirement of this RFP may result in rejection of the proposal.

• All written inquiries must be submitted in writing prior to 3:00 p.m. on Wednesday, July 1, 2026 to: Benjamin Denton, bkdenton@salemva.gov. Oral instructions carry no weight; only written addenda are binding.

• Offerors organized as corporations, LLCs, business trusts, limited partnerships, or registered LLPs must be authorized to transact business in Virginia as required by Title 13.1 or Title 50 of the Code of Virginia. Please contact the SCC to determine whether your firm should register.

https://www.eva.virginia.gov/ mailto:eVACustomerCare@dgs.virginia.gov mailto:bkdenton@salemva.gov

• The City is not responsible for any costs incurred in the development or delivery of the proposal.

• Oral Presentations: At the City’s discretion, Offerors may be required to participate in an oral presentation or interview to clarify aspects of their proposal. Such presentations are intended solely for clarification purposes and shall not constitute negotiations.

B. Specific Proposal Requirements The following information must be furnished by the Offeror:

• Cover Letter and Company Overview: Full legal name, brief company description, and contact information for the primary point of contact.

• Project Team: Key personnel assigned to this project, their roles, and résumés.

• Qualifications and Experience: Firm background with emphasis on hotel market studies, hospitality feasibility analyses, and public-sector engagements. Include at least three (3) similar completed projects.

• References: All Offerors shall include at least three (3) references who can attest to the Offeror’s qualifications on similar projects, and include these in the Proposal

• Proposed Methodology: Detailed approach and methodology for all elements of the Scope of Work.

• Project Schedule: Proposed milestones from notice to proceed through final report delivery. It is anticipated that the City will be provided with a Final Deliverable withing 120-150 days.

• Fee Proposal: Itemized fee proposal including proposed hours, billing rates, and anticipated reimbursable expenses.

The Offeror’s proposal shall remain valid for not less than ninety (90) days from the submission deadline.

V. EVALUATION AND AWARD OF CONTRACT

Award: An evaluation committee will review and evaluate all responses. No information regarding the identity of Offerors or contents of proposals will be released until after the negotiation process.

Selection shall be based on the criteria below. Informal interviews may be conducted with two or more Offerors. If one Offeror is clearly more qualified, the City may award without interviews.

Evaluation Criteria: Proposals will be evaluated by the City based upon the following, weighted criteria:

Evaluation Criteria Weight

Qualifications and Relevant Experience – Depth and breadth of the firm’s experience in hotel market studies and hospitality feasibility analyses, including the number and scale of comparable public-sector engagements.

30%

Project Team Qualifications – Qualifications, experience, and availability of assigned personnel.

10%

Technical Approach and Methodology – Quality and thoroughness of the proposed approach, including market/demand analysis methodology, data sources, and financial feasibility modeling.

30%

Evaluation Criteria Weight

Project Schedule – Reasonableness of the proposed timeline and ability to meet the City’s anticipated 120–150 day delivery target.

10%

Price Proposal – Competitiveness and clarity of the proposed fee structure, including hourly rates and reimbursable expenses.

10%

References and Past Performance – Client-reported satisfaction with the quality, responsiveness, and accuracy of the firm’s past deliverables.

10%

Proposals will be scored using the following scale:

5 – Excellent | 4 – Good | 3 – Satisfactory | 2 – Marginal | 1 – Poor | 0 – Non-Responsive

VI. CONTRACT PERIOD

The contract will be awarded for the period necessary to complete the study and deliver all final deliverables, or as otherwise negotiated. The City may terminate the contract, in whole or in part, without cause upon thirty (30) days’ written notice to the Contractor.

VII. CONTRACT ADMINISTRATOR

Any resulting contract will be issued by the City of Salem Purchasing Office. The Purchasing Manager is authorized to act on behalf of the City to administer this contract.

VIII. COOPERATIVE AGREEMENT

This procurement is conducted on behalf of the City of Salem and other public bodies in accordance with §2.2-4304 of the Virginia Public Procurement Act. If approved by the Offeror, the resulting contract may be used by other public bodies at contract prices and terms.

IX. REFERENCES

All Offerors shall include at least three (3) references who can attest to the Offeror’s qualifications on similar projects, and include these in the Proposal. References may be contacted at the City’s discretion. The City reserves the right to contact additional references not furnished by the Offeror.

X. INVOICING

The Contractor shall submit invoices per the payment schedule agreed upon at contract execution.

Each invoice must include:

• Company name and contract/purchase order number

• Invoice date and invoice number

• Description of services rendered and the period covered

• Amount owed

All invoices must be submitted to: City of Salem: Attention Tourism: P.O. Box 869, Salem, Virginia 24153.

XI. PROTESTS

Any Offeror wishing to protest an award or other decision pursuant to this RFP may do so only in accordance with §§2.2-4357 through 2.2-4364 of the Code of Virginia. Any protest must be in writing, signed by an authorized representative, and delivered to the City Purchasing Manager within the required timeframe.

XII. RELEASE OF INFORMATION AND AWARD ANNOUNCEMENT

No information regarding the identity of Offerors or the contents of proposals will be released until after the negotiation process. If your proposal contains proprietary information, note it on Attachment A – Proprietary Information Form.

Upon award, the City will notify all Offerors in writing. A notice of award will be posted on the City of Salem Purchasing website at https://www.salemva.gov/Bids.aspx. All materials submitted become the property of the City and are subject to public inspection under the Virginia Freedom of Information Act.

XIII. REJECTION AND AWARD OF PROPOSAL

The City of Salem reserves the right to cancel this RFP, reject any or all proposals, waive any informality or irregularity, and award to the Offeror whose proposal is, in the City’s opinion, in its best interest.

XIV. INSURANCE

By signing and submitting a proposal, the Offeror certifies that if awarded the contract, it will have the following coverage in place at the time work commences, maintain it throughout the contract term, and that all coverage will be provided by insurers authorized in the Commonwealth of Virginia.

The City of Salem must be named as an additional insured. Certificates of Insurance are required prior to commencement and at renewals. A thirty (30) day written notice of cancellation or non-renewal is required.

• Workers’ Compensation: Statutory

• Employer’s Liability: Each Accident: $100,000 | Disease, Policy Limit: $500,000 | Disease, Each Employee: $100,000

• Commercial General Liability: Each Occurrence: $1,000,000 | General Aggregate: $2,000,000

• Professional Liability (E&O): Each Claim: $1,000,000 | Annual Aggregate: $2,000,000

• Excess/Umbrella Liability: Each Occurrence: $1,000,000 | General Aggregate: $2,000,000

• Automobile Liability: Bodily Injury & Property Damage, Each Accident: $1,000,000

XV. GENERAL TERMS AND CONDITIONS

Acceptance: This purchase order constitutes the City’s offer and becomes a binding contract upon the Contractor’s acknowledgement or performance.

Entire Agreement: These terms, together with any special conditions and specifications, constitute the complete agreement and supersede all previous written or oral communications.

Changes, Additions, Deletions: No changes will be permitted without prior written approval from the City of Salem Purchasing Office.

Contractual Disputes: All claims shall be resolved through the City of Salem’s Purchasing Policy and Procedures Manual Section 4007.

Tax Exemption: The City of Salem is exempt from State Sales Tax and Federal Excise Tax (Federal Tax ID: 54-6001593). This exemption does not transfer to the Contractor.

https://www.salemva.gov/Bids.aspx

Antitrust: By entering into a contract, the Offeror assigns to the City all rights and causes of action under federal and Virginia antitrust laws relating to the goods or services purchased.

Indemnification: The Contractor agrees to indemnify, defend, and hold harmless the City, its officers, agents, and employees from all claims arising out of performance of this contract.

License Requirements: Firms with a business location in the City of Salem must be licensed under the City’s BPOL Tax Ordinance. Contact the Commissioner of the Revenue at (540) 375- 3019 with questions.

Anti-Discrimination: All Offerors certify conformance with the Federal Civil Rights Act of 1964, the Virginia Fair Employment Act of 1975, and §2.2-4311 of the Code of Virginia, prohibiting discrimination in employment based on race, religion, color, sex, national origin, age, disability, or other protected status.

Drug-Free Workplace: Offerors must comply with §2.2-4312 of the Virginia Public Procurement Act.

Ethics in Public Contracting: By submitting a proposal, Offerors certify their proposals are made without collusion or fraud and that no kickbacks or inducements have been offered or received.

Applicable Law and Courts: This contract shall be governed by the laws of the Commonwealth of Virginia. Litigation shall be brought in the courts of the Commonwealth.

Independent Contractor: The Contractor is an independent contractor in all respects and is not an agent, servant, or employee of the City.

Subcontracting: Subcontracting requires prior written City approval. No subcontract relieves the Contractor of its obligations. Subcontractors must be paid within seven (7) days of the Contractor’s receipt of payment, per §2.2-4347 of the Code of Virginia.

Assignment: Neither party shall assign this contract without the prior written consent of the other party, nor to any party debarred from doing business with the Commonwealth of Virginia.

Debarment Status: By accepting a purchase order, Offerors certify they are not currently barred from submitting proposals by any agency of the Commonwealth of Virginia.

Federal Immigration Law Compliance: The Contractor shall not knowingly employ an unauthorized alien during performance of this contract, as defined in the federal Immigration Reform and Control Act of 1986.

Default: Upon failure to deliver services per contract terms, the City may, after due notice, procure from other sources and hold the Contractor responsible for resulting costs.

Gifts: No Offeror, Contractor, or subcontractor shall confer anything of more than nominal value on any public employee having official responsibility for this procurement, unless consideration of substantially equal value is exchanged.

XVI. SPECIAL TERMS AND CONDITIONS

Cancellation of Contract: The City reserves the right to cancel and terminate any resulting contract, in part or in whole, without penalty, upon thirty (30) days’ written notice. Cancellation does not relieve the Contractor of obligations on outstanding orders issued prior to the effective date.

Default; Right to Cure; Setoff: Upon the Contractor’s failure to perform, the City shall provide written notice and may require corrective action within a specified period. If uncured, the City may perform or procure the services and deduct costs from amounts owed to the Contractor. The City reserves all remedies at law or in equity.

Confidentiality: The Contractor shall treat all City data, information, and materials as confidential and shall not disclose or use such information outside the scope of this contract without the City’s prior written consent.

Ownership of Work Product: All reports, documents, data, analyses, and work products prepared under this contract shall be the sole property of the City of Salem. The Contractor shall deliver all work products to the City upon completion or termination.

Attachment A – Proprietary Information Form

Identify data or materials to be protected and state the reasons below. Indicate the specific sections, figures, or paragraphs that constitute trade secrets or proprietary materials.

The classification of an entire proposal document, line-item prices, and/or total proposal prices as proprietary is not acceptable and will result in rejection of the proposal.

Provide one (1) redacted copy of the proposal with proprietary portions removed or blacked out, clearly marked “Redacted Copy” on the cover. Confidentiality protection per Code of Virginia, §2.2- 4342.

Section / Title or Description Page(s)

Reason for Withholding:

If additional space is needed, attach a separate sheet and include it in your sealed proposal.

END OF RFP #2026-009