U.S. Hotel Industry Performance© 2018 STR. All Rights Reserved. U.S. March 12 MMA RevPAR: 3 Markets...
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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. U.S. Hotel Industry Performance Vail Ross Senior Vice President [email protected] @vail_str
Transcript of U.S. Hotel Industry Performance© 2018 STR. All Rights Reserved. U.S. March 12 MMA RevPAR: 3 Markets...
© 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.
U.S. Hotel Industry Performance
Vail RossSenior Vice President
[email protected]@vail_str
© 2018 STR. All Rights Reserved.
8 Consecutive Years of RevPAR Growth!!!
-25
-20
-15
-10
-5
0
5
10
15
1990 2000 2010Total U.S., RevPAR % Change, 1/1990 – 03/2018
56 Months 97 Months111 Months
© 2018 STR. All Rights Reserved.
March 2018 12 MMA: Continuing Our Record Run
% Change
Room Supply 1.9%Room Demand 2.8%Occupancy (*Record*) 66.1% 0.8% A.D.R. (*Record*) $127 2.1% RevPAR (*Record*) $84 2.9%Room Revenue 4.9%
Total US Results, March 2018 12MMA
© 2018 STR. All Rights Reserved.
U.S. March 12 MMA RevPAR: 3 Markets Dragged Down US Results
Total US: +2.9%NYC: +1.2San Francisco: -2.6Washington, DC: -2.0
Total US excluding NYC, SF & DC: +3.3%
*RevPAR % Change, March 2018 12 MMA
© 2018 STR. All Rights Reserved. 5
Class: ADR Growth Drives RevPAR Growth
0.5 0.1
0.6 0.8 1.0 1.0
2.0
1.2
1.61.6
2.43.0
Luxury Upper Upscale Upscale Upper Midscale Midscale Economy
ADR % Change
Occ % Change
*RevPAR % Change by Contribution of OCC / ADR % Change, by Class, March 2018 12MMA
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Class: Upscale and Upper Midscale Hotels Still Pretty Full Despite New Supply
71.172.8 72.5
67.9
60.758.8
70.872.7 72.1
67.4
60.158.2
Luxury Upper Upscale Upscale Upper Midscale Midscale Economy
2018 2017
*OCC %, by Class, March 2018 & 2017 12 MMA
7
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
U.S. Occupancy MixGroup mix Trans Mix
16.6% 18.5% 28.4% 32.8%
Data for all Luxury and Upper-up Class hotels
© 2018 STR. All Rights Reserved.
12 MMA Market Performance : Leisure Demand Seems To Allow For Pricing Power
Market OCC % ADR % Change Influenced ByOrlando, FL 79.8 6.1 Leisure / Group Demand
Nashville, TN 73.7 5.9 Bachelorette PartiesMiami/Hialeah, FL 77.5 5.9 Leisure Demand
Anaheim/Santa Ana, CA 77.8 4.0 Leisure DemandSeattle, WA 76.1 3.8 Strong Economy
San Francisco/San Mateo, CA 82.4 (0.7)Moscone Center
Closed April – October 2017Chicago, IL 68.8 (0.8)
New Orleans, LA 68.4 (0.9)
Washington, DC-MD-VA 71.8 (1.1)Inauguration / Women’s
March CompPhiladelphia, PA-NJ 69.8 (1.2)
*ADR % Change and absolute OCC in Top 25: 5 Best / 5 Worst Performing ADR % Markets, March 2018 12 MMA
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Large Markets Grow Rapidly
Market Rooms In Construction % Of ExistingNashville, TN 5,123 12%New York, NY 11,965 10%Denver, CO 4,610 10%Seattle, WA 3,692 8%Dallas, TX 6,647 8%
*US Pipeline, Rooms I/C and as % of Existing Supply, Largest % In Top 26 Markets, March 2018
© 2018 STR. All Rights Reserved.
*Total US Pipeline; Rooms In Construction, in ‘000s; 1/2006 – 2/2018
0
50
100
150
200
250
2006 2008 2010 2012 2014 2016 2018
Low: May ‘1150K
Mar. ’18186K
High:Dec ‘07
211K
25K
I/C Pipeline Is Leveling Off Below Prior PeakTh
ousa
nds
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New Hotels w/ 50,000+ Sqft Meeting Space
98
5
2 2 23 3
2
9
3
2008 2009 2010 2011 2013 2014 2015 2016 2017 2018* 2019*
Total U.S. Count of New Hotels with 50k+ Sqft of meeting spaceBy year, 2008 – YTD 2018 Projected 2018 & 2019
* projected
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Total United StatesKey Performance Indicator Outlook (% Change vs. Prior Year)2018F – 2019F
Outlook
Metric2018
Forecast2019
Forecast
Supply 2.0% 1.9%
Demand 2.4% 2.0%
Occupancy 0.4% 0.1%
ADR 2.5% 2.3%
RevPAR 2.9% 2.4%
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To Wrap It Up….. RevPAR growth – Still positive
Occupancy – North of 70% for Full Service
Customer Mix – Transient still drives OCC share
Construction growth– Slowing down however
some markets may struggle with new supply
