NYU International Hospitality Industry Investment Conference. Amanda W. Hite STR President & COO

Transcription

1 NYU International Hospitality Industry Investment Conference Amanda W. Hite STR President & COO

2 Supply

3 Middle East Leads in Development Central- South America Europe Middle East Africa Asia Australia & Oceania Supply % Change, April 2014 YTD

4 Supply Growth Creeps Up Total U.S., Supply % Change, 12 MMA 1/1990 4/2014

5 U.S. Pipeline: Construction Accelerates Phase % Change In Construction % Final Planning % Planning % Under Contract % Total U.S. Pipeline, by Phase, 000s Rooms, April 2014 and 2013

6 Under Construction Rooms Mostly In Middle Segments % Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Unaffiliated U.S. Pipeline, Rooms Under Construction, 000s Rooms, by Scale, April 2014

7 10 of Top 26 Markets With 2%+ Of Supply Market Rooms UC % Of Existing Anaheim-Santa Ana, CA 1, % Dallas, TX 1, % Washington, DC-MD-VA 2, % Boston, MA 1, % Los Angeles-Long Beach, CA 2, % Houston, TX 3, % Seattle, WA 1, % Denver, CO 1, % Miami-Hialeah, FL 2, % New York, NY 13, % U.S. Pipeline, Top 26 Markets, U/C Rooms as % of Existing Supply, March 2014

8 U.S. Supply Outlook % 1.6% Total United States Supply Outlook (% Change vs. Prior Year),

9 Demand

10 Middle East Leads Demand Growth Central- South America -2.3 Europe Middle East Africa Asia Australia & Oceania Demand % Change, April 2014 YTD

11 Demand Growth is Steady 10 8 Feb % Apr % Sept % U.S., Room Demand % Change, 12 Month Moving Average: 89 to March 14

12 Upscale Leads Demand Growth Luxury Upper Upscale Upscale Upper Midscale Midscale Economy U.S. Chain Scales, Demand % Change, Twelve Months Ended April 2014

13 Transient Occupancy Share Increases % 43% Group Transient 64% 36% Group Transient *Transient and Group Occupancy as Share of Total OCC, 2005 and 2013

14 Occupancy Segmentation by Class: Groups Finally Returning? Transient % Change Group % Change Luxury Upper Upscale *Segmentation Occupancy % Change, by Class, April 2014 YTD

15 U.S. Demand Outlook Demand 2.6% 2.2% Occupancy 1.4% 0.6% Total United States Demand & Occupancy Outlook (% Change vs. Prior Year)

16 Average Daily Rate

17 Middle East Leads in Rate Growth Select Global Regions ADR Percent Change (In US Dollars except Europe in Euros), April 2014 YTD

18 Steady ADR Growth As Room Demand Growth Continues 5 3.7% 0-5 Demand % Change ADR % Change % Total U.S., ADR & Demand % Change, 12 MMA 1/2008 4/2014

19 Scales: ADR Growth Healthy, Especially For Luxury Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Total U.S. Chain Scales: ADR % Change, April 2014 YTD

20 Strong Transient Room Rate Growth $200 $ $ $190 $180 $ $ $ $ $170 $160 $ $ $ $ $150 Transient Group NOTE: Data is for luxury and upper upscale classes only. Total United States Actual ADR ($) by Customer Segment, YTD April 2014

21 April 2014 YTD ADR % Change in Top 25: 5 Best / 5 Worst Performing Markets Market ADR $ ADR % Change Nashville, TN San Francisco/San Mateo, CA Denver, CO Miami/Hialeah, FL Boston, MA New York, NY Norfolk/Virginia Beach, VA New Orleans, LA Chicago, IL Washington, DC-MD-VA

22 U.S. ADR Outlook % 4.3% Total United States ADR Outlook (% Change vs. Prior Year)

23 RevPAR

24 RevPAR growth in 3 of the four regions + 6.1% + 4.4% - 2.8% + 5.3% April 2014 YTD, RevPAR % Change in USD, Europe in Euro

25 Positive RevPAR Growth For The Foreseeable Future 10 9% 8.6% Months 65 Months 44 Mo % % % Total U.S., RevPAR % Change, 12 MMA 1/1990 4/2014

26 April 2014 YTD RevPAR % Change in Top 25: 5 Best / 5 Worst Performing Markets Market RevPAR % Change Nashville, TN 20.3 Denver, CO 20.1 San Francisco/San Mateo, CA 14.2 St. Louis, MO-IL 13.6 Dallas, TX 12.1 Norfolk/Virginia Beach, VA 2.5 New Orleans, LA 0.8 Chicago, IL 0.1 New York, NY 0.0 Washington, DC-MD-VA -4.3

27 U.S. Forecast Summary Outlook 2014 Forecast 2015 Forecast Supply 1.2% 1.6% Demand 2.6% 2.2% Occupancy 1.4% 0.6% ADR 4.2% 4.3% RevPAR 5.7% 4.9% Source: STR & TE

28 New Peaks Reached in Revenue Net Income In Billions Total U.S., Estimated Total Revenue and Profitability* *Representing all U.S. hotels that collectively provide room revenue data to STR. Net Income defined as House Profit less management fees, property taxes, insurance, and an imputed 4.0% reserve for replacement expense.

29 Key Takeaways Industry is Profitable Supply Growth Accelerates First Quarter Demand Stronger than Expected Group Demand: Finally Some Growth STR Forecast: Positive, Robust Growth

30 Click on Data Presentations