Hospitality Outlook Asheville, NC Chad Church STR cchurch@str.com 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
STR Definitions: Supply - The number of rooms in a hotel or set of hotels multiplied by the number of days in a specified time period. Demand The number of hotel rooms sold over a specified time period. Room Revenue Total room revenue generated from the rental of rooms over a specified time period. 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
STR Definitions: Occupancy Occupancy is the percentage of available rooms that were sold during a specified period of time. ADR (Average Daily Rate) The average rate paid for rooms sold RevPAR (Revenue per Available Room) The total guest room revenue divided by the total number of available rooms. 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
National Industry Overview 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
Total US - Key Statistics Twelve Month Moving Average December 2016 % Change Hotels 53 k Room Supply 1.8 bn 1.6% Room Demand 1.2 bn 1.7% Occupancy 65.5% 0.1% ADR $123.97 3.1% RevPAR $81.19 3.2% Room Revenue $149 bn 4.8%
Total United States Room Supply/Demand Percent Change Twelve Month Moving Average 2000 to December 2016 10 8 6 4 2 0-2 -4-6 Supply % Change Demand % Change Feb 11 7.7% Mar 02-4.7% Aug 06-0.2% Sept 09-7.1% -8 2000 2002 2004 2006 2008 2010 2012 2014 2016
Total United States Occupancy Twelve Month Moving Average 2000 to December 2016 70 65 June 06 63.6 Dec 16 65.5 60 55 Jan/Feb 10 54.5 50 2000 2002 2004 2006 2008 2010 2012 2014 2016
Total United States Average Daily Rate Twelve Month Moving Average 2000 to December 2016 125 115 105 Sept 08 107.72 Dec 16 123.97 95 85 June 01 85.76 75 2000 2002 2004 2006 2008 2010 2012 2014 2016
Total United States Under Contract Pipeline by Chain Scale In Thousands December 2016 180 160 140 120 28.7 47.3 In Construction Final Planning Planning 100 80 60 63.8 76.6 53.1 40 20 0 1.9 3.2 7.5 Luxury 12.4 16.4 23.6 Upper Upscale 61.6 60.0 Upscale Upper Midscale 24.4 19.1 6.8 17.0 1.7 22.8 8.8 2.6 Midscale Economy Unaffiliated
Total United States Key Performance Indicator Outlook (% Change vs. Prior Year) 2017F 2018F Outlook 2017 Forecast 2018 Forecast Supply 2.0% 2.2% Demand 1.7% 2.0% Occupancy -0.3% -0.2% ADR 2.8% 2.8% RevPAR 2.5% 2.6%
Total United States Chain Scale Key Performance Indicator Outlook 2017F by Chain Scale 2017 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (% chg) Luxury -0.4% 2.5% 2.1% Upper Upscale -0.2% 2.5% 2.3% Upscale -1.1% 2.5% 1.3% Upper Midscale -0.7% 2.3% 1.6% Midscale 0.1% 2.4% 2.5% Economy 0.0% 2.7% 2.7% Independent -0.3% 3.0% 2.7% Total United States -0.3% 2.8% 2.5%
Total United States Chain Scale Key Performance Indicator Outlook 2018F by Chain Scale 2018 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (% chg) Luxury -0.2% 3.0% 2.8% Upper Upscale -0.1% 2.8% 2.7% Upscale -0.7% 2.5% 1.7% Upper Midscale -0.6% 2.5% 1.9% Midscale -0.2% 2.5% 2.2% Economy -0.1% 2.3% 2.3% Independent -0.2% 2.8% 2.7% Total United States -0.2% 2.8% 2.6%
Local Market Update 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
Buncombe Co. Hotel Census As of December 2016 30 Properties (72) 20 10-1,500 5 11 15 Luxury Upper Upscale Upscale Upper Midscale Rooms (7,172) 21 13 7 Midscale Economy Independent 1,000 500 1,175 1,437 1,529 762 1,116 1,153 - Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Independent
Pipeline Current Supply / New Supply 2017-2018 - 15 properties in the active pipeline in Asheville area Market 2014 % Growth 2016 % Growth 2018 Charleston, SC 18,443 5.3% 19,428 18.0% 22,926 Savannah, GA 15,025 2.5% 15,394 15.8% 17,822 Buncombe County, NC 6,667 7.6% 7,172 24.3% 8,912 Cary/South Raleigh, NC 4,967 0.9% 5,010 18.6% 5,940 Brentwood/Franklin, TN 4,641 8.1% 5,019 21.5% 6,098 Mount Pleasant/Isle Of Palms, SC 2,774 13.3% 3,142 18.6% 3,726
Buncombe County Performance Snapshot Key Performance Indicators Twelve Month Moving Average December 2016 vs. 2015 14 12 10 8-72 Hotels - 7,172 Rooms - 91.4% of Rooms in STAR Program 7.6 9.0 6 4 1.3 2 0 73.8% $150.04 $110.68 Occupancy ADR RevPAR
Buncombe County Performance Snapshot Key Performance Indicators Twelve Month Moving Average percentage change December 2014-2016 14 12 Occupancy ADR RevPAR 13.5 10 8 8.8 8.4 7.6 9.0 6 4 4.0 4.6 4.8 2 0 2014 2015 2016 1.3
Buncombe County Room Nights Available Twelve Month Moving Average 2004-2016 2,600,000 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Buncombe County Room Nights Available & Demand Twelve Month Moving Average 2004-2016 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 Supply Demand Prior Peak: Mar 2007 1.45m 1,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Buncombe County Occupancy Rate by Month 2015 vs. 2016 90 80 70 2015 2016 70.1 67.5 79.1 78.7 77.5 74.3 80.7 81.7 83.5 84.6 79.0 77.8 78.2 75.4 83.7 84.8 72.5 72.6 69.769.8 60 50 40 30 52.3 49.8 56.9 54.3 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Buncombe County Day of Week Occupancy Annual 2013-2016 90 85 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 88.2 84.9 80 75 70 65 60 55 50 2013 2014 2015 2016 74.7 72.6 71.0 66.0 58.4
Buncombe County Average Daily Rate (ADR) by Month 2015 vs. 2016 160 140 2015 2016 140 140 141 142 142 143 144 145 146 148 149 150 129 129 129 130 131 132 134 135 136 137 138 139 120 100 80 60 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Buncombe County Occupancy & Average Daily Rate % Change by Month 2016 12 10 8 6 4 2 0-2 -4-6 9.8 10.2 7.7 6.8 5.1 4.8 3.7 3.5-0.5-4.1 10.4 9.3 8.1 8.3 8.2 5.3 4.4 3.7 1.3 1.3 1.4 0.1 0.2-1.5 Occupancy ADR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Buncombe County Hotel Class Segments Occupancy/ADR/RevPAR Percent Change Twelve Month Moving Average 2016 vs. 2015 8 7 Occupancy ADR RevPAR 6.4 7.4 7.4 7.0 6 5 4 3 3.2 4.0 2 1 0 0.8 0.9 Lux/Upper Up Upscale/Upper Mid Midscale/Econ 0.4
Buncombe County/Western NC Occupancy Rate Twelve Month Moving Average 2004-2016 75 70 65 60 55 50 Buncombe Co Western NC 45 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Buncombe County/Western NC Average Daily Rate Twelve Month Moving Average 2004-2016 160 150 140 130 120 110 100 90 80 70 Western NC Buncombe Co Prior Peak: $114.58 June 2008 60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 150.04 96.54
Comparable Markets Weekday Occupancy Total Year 2016 80 70 60 50 40 30 20 10 0 68.6 67.1 71.8 72.7 Buncombe Savannah Charleston Greenville Gatlinburg/Pigeon Forge 53.9
Comparable Markets Weekend Occupancy Total Year 2016 100 80 86.6 80.0 81.7 74.1 83.2 60 40 20 0 Buncombe Savannah Charleston Greenville Gatlinburg/Pigeon Forge
Comparable Markets Demand % Change Total Year 2016 7 6 5.7 6.6 6.2 5 4 3 3.1 2 1 0 0.3 Buncombe Savannah Charleston Greenville Gatlinburg/Pigeon Forge
Comments and Takeaways Chad Church STR cchurch@str.com 2017 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.