Aspen Snowmass Transient Lodging Inventory Study as of July 1, 2012

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1 INTRODUCTION A benchmark transient lodging inventory study was conducted by MTRiP on behalf of Aspen Skiing Company during the summer of 2008 for inventory in the City of Aspen and the Town of Snowmass Village as of January 1, 2009 (see Attachment A). An abbreviated update to this study was conducted during June of 2009 for inventory as of July 1, 2009 to revise future development and construction projects affecting the lodging inventory in Aspen & Snowmass. In May/June of 2012 a complete update to this report was conducted by contacting each property and property management company to update their unit and pillow counts. The ensuing report includes the revised data and inventory with the following considerations: Inclusions: o Any newly constructed inventory that opened for business prior to July 1, 2012 is included in unit and pillow counts. o Renovation projects that are underway and the property is actively booking reservations for future months, but not currently open are included. o A comparison of inventory as of July 1, 2009 and July 1, 2012 is in included in each section of this report. o Fractional ownership units and pillows that offer units for transient short term rental are also included in the unit and pillows counts, have been analyzed separately and are included in the overall unit and pillow counts. Assumptions: o It is assumed that unit and pillows counts submitted by participating properties are accurate. In cases where large discrepancies between 2009 data to 2012 data were encountered, the data submitter was contacted for verification. Exclusions: o A comparison of historical data prior to July 1, 2009 to the current data has been omitted. o The MTRIP Occupancy Report Comparison has also been excluded in this iteration of the study. SUMMARY Aspen and Snowmass s short term transient bed base includes 4,115 units, which can accommodate up to 18,857 persons at their total theoretical capacity. A further breakdown by location is provided in the accompanying report. 49 unique participating property management companies and a variety of properties are represented, including 4 Bed & Breakfasts, 26 Hotel/Lodges, 120 Condominium Properties and 213 Private Homes (based on a subjective interpretation of the naming conventions used by the respondents). METHODOLOGY The following methodology, first applied during the initial data collection process for the benchmark study in 2008, was also employed for this report. Participation: Data was obtained by soliciting information from properties and property management companies who manage and rent units to transient guests for periods of time less then 30 consecutive 1

2 nights. A list of potential participants was provided by Stay Aspen Snowmass (SAS) and participants from the 2009 study were contacted. Data Collection: Properties and property management companies were sent the Aspen Snowmass Bed Base Data Collection Form (see Attachment A) via and asked to include their property name, property type, location, quality rating, unit count, maximum occupancy and name and title of the submitter. Follow up calls were made as appropriate in order to accomplish full participation. When there was no response/data submission/participation from a property or property management company an estimate was included. Unit and pillows counts were estimated by obtaining individual unit information such as location, property type, rating and bedding from the property management company s website. A total of 197 units (4.7% of the overall sample) and 1,741 pillows (9.2% of the overall sample) were estimated. Locations: Respondents were given the choice of two geographic locations in which to define their properties/units: Aspen and Snowmass Village. Properties/units that are located outside the town limits of Aspen and Snowmass Village were not included in the study. Ratings: The property quality rating was obtained, based on the subjective opinion of the property manager and not based on a unit inspections or a standardized rating system. Respondents were asked to indicate how their property was rated: deluxe, moderate or economy. Transient Inventory: Data was collected on units that are available for rental in increments of less than 30 days. Units that are exclusively available for the duration of one season, winter or summer, were excluded. Fractional Ownership Inclusion/Exclusions: If a Fractional Ownership property offers units for short term rental, all of the units/pillows in their inventory were included, not just the units/pillows that are available for short term rental which will change from month to month. If a Fractional Ownership property does not offer any units for short term rental, the property was excluded from this study. Metrics and Definitions: Data on the number of short term units and their maximum occupancies in each property type category, location and quality rating was collected. The following terms are defined in the Glossary of Terms on the Aspen Snowmass Data Collection Form (see Attachment A) in order to ensure a reporting standard across respondent properties: Property Management Company, Property Name, Property Type, Rating, Ownership (wholly owned or fractional ownership) and Maximum Occupancy. Other terms were addressed and defined to accommodate all types of rental situations including Time-share/Fractional Ownership and Lock-offs. Prior to the commencement of the study, Property Types were categorized and defined into the following: Hotel/Lodge, Condominium Property, Private Home and Bed & Breakfast. Practical Capacity: Data was collected and reported based on a unit s theoretical capacity (or maximum occupancy, also known as total pillows ), but it is understood that theoretical capacity is never achieved. For those wishing to extrapolate a practical capacity we suggest: Peak Times including holidays and family based high season : 90%* of theoretical capacity 2

3 All other times: 80%* of theoretical capacity *Practical capacity figures are estimates based on educated but informal calculations, pending collection of substantiated data under a separate study not currently underway. Pillow Data Discrepancies: When comparing 2009 data to 2012 data, some increases in pillow counts may be artificially inflated. Several properties inaccurately counted and reported their pillows in 2009 by either omitting sofa sleepers or counting (for example) a queen or full size sofa sleeper as one pillow rather than two. When this was discovered, the property s data was reported correctly for the 2012 study, which resulted in an increase in pillows but not an increase in units in some cases. Confidentiality: Individual property data (Attachment B) is confidential and only available to the Aspen Skiing Company and Stay Aspen Snowmass and is not available for further distribution. Forthcoming Inventory: As reported by Stay Aspen Snowmass, there are currently no new lodging projects or developments in the pipeline or currently in the process of permit or construction phases. Therefore new inventory will not affect the Aspen/Snowmass transient bed base in the near future. RESULTS Study results are provided in brief narrative, with charts and tables. Supporting documents are provided in the Appendices. A. Units/Pillows by Location: There are a total of 4,115 units in Aspen and Snowmass Village combined, which can accommodate up to 18,857 persons at their theoretical capacity. Aspen offers 56% of the total transient rental units and 53% of transient pillows where Snowmass offers 44% of transient units and 47% of transient pillows. Overall the transient inventory in Aspen/Snowmass increased in available units by 4% (160) and in pillows by 7% (1,381) from 2009 to The increase in units took place in Snowmass, which caused a slight increase in the overall share of units available in Snowmass from 2009 (from 42% to 44%) and a decrease in the share of units available in Aspen (from 58% to 56%) units. There was a decrease in units (-0.5%) and an increase (7%) in pillows in Aspen and a 9% increase in units and an 8% increase in pillows in Snowmass during this time period. The increase in inventory can partly be attributed to the opening of the Viceroy Snowmass Resort. The following tables and graphs represent the total number of units and pillows in both Aspen and Snowmass, including the combined total of each and a comparison to the 2009 study. Unit/Pillows by Location Aspen Snowmass All Units Pillows

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5 Units By Location/Type-2012 Hotel/Lodge Condo Property Private Home B&B All Aspen Snowmass Totals All - Units By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change 11.40% -4.94% 29.88% 5.88% 4.05% 5

6 Aspen - Units By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change -0.17% -4.51% 31.00% 5.88% -0.48% Snowmass - Units By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change 24.82% -5.69% 21.95% 0.00% 9.39% C. Pillows by Property Type and Location: Condominium Properties account for 10,044 (53%) of all pillows and have the largest pillow count of all Property Type categories in both locations, a decline from 2009 where Condo pillows made up 60% of all Aspen/Snowmass pillows. Hotel/Lodge pillows account for 6,404 (34%) of total pillows, and increased from 2009 (30%). Aspen can accommodate 17% more guests in Hotel/Lodge pillows than Snowmass and is able to accommodate approximately 3.0 guests per Hotel/Lodge room, where Snowmass can accommodate 3.5 guests per Hotel/Lodge room (an increase from 2.9 in 2009). Aspen and Snowmass continue to offer approximately the same number of Condominium pillows. Snowmass s average pillow count per condo unit is 5.4 (a decrease from 5.7 in the 2009 study) while Aspen also averages 5.4 pillows per Condo unit (a decrease from 5.9 in 2009). Overall Aspen continues to offer more variety of pillow types where the majority of pillows in Snowmass are still housed in Condominium Properties (57%). However, with the addition of Hotel/Lodge pillows in Snowmass, the variety of available accommodations in Snowmass has also increased. The following tables and graphs represent the total number of pillows in each Property Type category in each location and their overall totals as well as a comparison to the benchmark study. Pillows By Location/Type Hotel/Lodge Condo Property Private Home B&B All Aspen Snowmass Village Totals Includes Fractional Ownership units 6

7 All - Pillows By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change 19.39% -4.30% 25.96% 11.62% 7.46% Aspen - Pillows By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change 5.99% 1.72% 43.14% 13.14% 7.46% 7

8 Snowmass - Pillows By Type Comparison Hotel/Lodge Condo Property Private Home B&B All % change 36.02% % 19.96% 0.00% 8.06% D. Units/Pillows by Rating and Location: Overall, 60% of all rental units and 64% of rental pillows in the area are rated Deluxe. Both Aspen and Snowmass Village continue to have a similar distribution of Deluxe, Moderate and Economy units and pillows. Snowmass deluxe units and pillows increased by 11% due to the opening of the Viceroy Snowmass. Interestingly, Aspen and Snowmass units and pillows that are considered Moderate and Economy, show dramatic percentage changes from 2009 to In Aspen, both Moderate units and pillows have decreased (units: -37%, pillows: - 27%) and Economy units and pillows have increased (units: 59%, pillows: 117%). This is mainly due to properties that were previously rated Moderate in 2009, are now rated Economy in There were changes in quality ratings of four large properties, which caused the fluctuations in Moderate and Economy units and pillow counts in Snowmass. The Wildwood and Snowmass Mountain Chalet, representing a total of 217 units and 732 pillows, were rated Economy in 2009 and were rated as Moderate in Woodbridge and Lichenhearth, representing 62 units and 316 pillows, were rated Economy in 2009 and were rated Moderate in The following tables and graphs represent the units by location and property quality rating as well as a comparison to the benchmark study. Units by Location/Rating 2012 Deluxe Moderate Economy All Aspen Snowmass Village Totals

9 All - Units by Rating Comparison Deluxe Moderate Economy All % change 9.22% % 35.42% 4.05% Includes Fractional Ownership units Aspen - Units by Rating Deluxe Moderate Economy All Comparison % change 7.24% % 59.26% -0.48% Includes Fractional Ownership units Snowmass - Units by Rating Deluxe Moderate Economy All Comparison % change 11.18% 18.79% % 10.36% Includes Fractional Ownership units The following tables and graphs represent the pillows by location and property quality rating as well as a comparison to the benchmark study. Pillows by Location/Rating Deluxe Moderate Economy All Aspen Snowmass Village Totals Includes Fractional Ownership units 9

10 All - Pillows by Rating Comparison Deluxe Moderate Economy All % change 15.21% % 55.09% 8.06% Aspen - Pillows by Rating Comparison Deluxe Moderate Economy All % change 18.47% % % 7.46% Snowmass - Pillows by Rating Deluxe Moderate Economy All Comparison % change 11.22% 2.12% 18.61% 8.77% E. Units/Pillows by Location, Rating and Property Type: The below tables provide a breakdown of each Property Type and Rating by Location. 10

11 Aspen Units by Type/Rating Deluxe Moderate Economy All Hotel/Lodge Condo Property Private Home B&B Totals Aspen Pillows by Type/Rating Deluxe Moderate Economy All Hotel/Lodge Condo Property Private Home B&B Totals Snowmass Units by Type/Rating Deluxe Moderate Economy All Hotel/Lodge Condo Property Private Home B&B Totals Snowmass Pillows by Type/Rating Deluxe Moderate Economy All Hotel/Lodge Condo Property Private Home B&B Totals Above tables include Fractional Ownership units F. Fractional Ownership Units and Pillows: Overall in the Aspen Snowmass Village community, 340 units (8%) and 2,000 pillows (11%) are fractionally owned, while 3,775 units and 16,857 pillows are conventionally (wholly) owned. The number and percentages of fractionally owned units and pillows vs. wholly owned units and pillows only changed slightly from 2009 (-5% or 17 units) due to one property no longer selling their smaller lock-off units, resulting in the reduction of their unit count but no change in their pillow count. The following tables and graphs represent the total number fractional ownership units and pillows in comparison to wholly owned units. Units/Pillows Units Pillows Fractional Ownership Wholly Owned

12 Fractional Ownership Unit Comparison Units Pillows % change -4.76% -0.45% G. Fractional Ownership Units and Pillows by Location: 300 or 88% of all fractional ownership units and 1,688 or 88% of fractional ownership pillows are located in Aspen. In contrast, 40 or 12% of all fractional ownership units and 312 or 16% of all fractional ownership pillows are located in Snowmass. 13% of Aspen s units and 17% of its pillows are in the fractional ownership category, whereas fractional ownership units only make up 2% of Snowmass s units and 4% of its pillows. While the number count of fractional ownership inventory did not change, percentages shifted due to the changes in overall units and pillows available in Aspen & Snowmass. The following table and graphs represent the total number fractional ownership units and pillows by location and are compared to wholly owned units. Units by Ownership/Location Aspen Snowmass All Fractional Ownership Wholly Owned Pillows by Ownership/Location Aspen Snowmass All Fractional Ownership Wholly Owned

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14 III. APPENDIX Attachment A Aspen Snowmass Data Collection Form Attachment B Raw Data 14

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