Dubai 2020, what is in store for the hotel industry based ... · No strategic advice or marketing...
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© 2018 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. Dubai 2020, what is in store for the hotel industry based on previous mega events? Sarah Duignan, Director, Client Relationships - STR [email protected]
Transcript of Dubai 2020, what is in store for the hotel industry based ... · No strategic advice or marketing...
© 2018 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.
Dubai 2020, what is in store for the hotel industry based on previous mega events?
Sarah Duignan, Director, Client Relationships - STR
© 2019 STR. All Rights Reserved.
Demand Generators Just how beneficial are major sport events?
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Olympics
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Annual - Olympic Impact – who gained & who lost?Occ, ADR Actuals, Local Currency
0
200
400
600
800
1000
1200
0
10
20
30
40
50
60
70
80
Year Before Olympic Year Year After
Beijing
ADR Occ
130
131
132
133
134
135
136
137
138
139
140
141
79.5
80
80.5
81
81.5
82
82.5
83
Year Before Olympic Year Year After
London
ADR Occ
0
100
200
300
400
500
600
0
10
20
30
40
50
60
70
Year Before Olympic Year Year After
Rio de Janeiro
ADR Occ
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Olympic Impact % Chg – ADR did well, Occ not so muchOcc, ADR % Chg, Local Currency
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Year Before Olympic Year Year After
Beijing
ADR Occ
-4%
-2%
0%
2%
4%
6%
8%
10%
Year Before Olympic Year Year After
London
ADR Occ
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Year Before Olympic Year Year After
Rio de Janeiro
ADR Occ
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Significant increase in new supply across Olympic citiesSupply & Demand % chg - 3 years before, year of and 2 years after
-10%
-5%
0%
5%
10%
15%
20%
Supply Demand
Beijing 2008
0%
1%
2%
3%
4%
5%
6%
Supply Demand
London 2012
-10%
-5%
0%
5%
10%
15%
20%
Supply Demand
Rio De Janeiro 2016
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World Cup
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Challenging demand in Brazil, nominal growth in RussiaSupply & Demand % chg - 3 years before, year of and 2 years after
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Supply Demand
Russia – 2018
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
Supply Demand
Brazil - 2014
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Expo
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39% increase in Demand in Shanghai during Expo year Supply & Demand % chg - 3 years before, year of and 2 years after
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Supply Demand
Shanghai - 2010
-15%
-10%
-5%
0%
5%
10%
15%
Supply Demand
Milan - 2015
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Dubai so far
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DXB, Creek & The Palm account for 50% of existing supplyCurrent existing supply in Dubai as of April 2019
30%
10%
10%
20%
4%1%
16%
Jumeirah Palm
Airport & Creek
Bur Dubai
Al Barsha
SurroundingsJebel Ali
10%Sheikh Zayed Road
Downtown & Business Bay
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DXB, Creek & The Palm account for 40% of new rooms27% of those new rooms expected to be in Dubai’s surroundings
23%
17%
4%
19%
27%1%
Jumeirah Palm
Airport & Creek
Bur Dubai
Al Barsha
SurroundingsJebel Ali
3%Sheikh Zayed Road
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Increase in ADR forecasted for DubaiOcc and ADR, Local Currency
560.00
580.00
600.00
620.00
640.00
660.00
680.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020 2021
Dubai (Actuals)
ADR Occ
-10%
-5%
0%
5%
10%
2017 2018 2019 2020 2021
Dubai (% Change)
ADR Occ
© 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.
Thank You!
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Sarah Duignan
