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  • 1.1 Hotel InduSTRy Overview Hoosier Hospitality Conference Lauren Faulkner Business Development Executive

2. 2 Todays Agenda: March 12, 2014 Total U.S. Review Top Markets Review Indiana Performance Overview Pipeline Forecast 3. 3 www.hotelnewsnow.com Click on Data Presentations 4. 4 Total U.S. Review 5. 5 January 2014 (12 MMA): Strongest Demand Ever % Change Room Supply* 1.8 bn 0.7% Room Demand* 1.1 bn 2.2% Occupancy 62.3% 1.4% A.D.R.* $110 3.7% RevPAR* $69 5.2% Room Revenue* $123 bn 6.0% January 12 MMA 2014, Total US Results * All Time High 6. 6 Quarterly RevPAR % Change: ADR Drives Growth 8.8 8.1 8.0 7.97.9 7.9 5.1 6.56.4 4.9 5.5 5.1 Q1 Q2 Q3 Q4 2011 2012 2013 * Total US, RevPAR % Change, by Quarter, Q1 2011 Q4 2013 7. 7 Demand & Supply Move Back Towards Long Run Averages -8 -4 0 4 8 1990 2000 2010 Supply Demand -6.9% -0.9% - 4.7% Total U.S., Supply & Demand % Change, 12 MMA 1/1990 1/2014 8.0% 2.2% 8. 8 ADR Growth Anemic This Time Around -10 -5 0 5 1990 2000 2010 Demand % Change ADR % Change -4.5% 7.5% 6.8% -8.7% 3.7% Total U.S., ADR & Demand % Change, 12 MMA 1/1990 1/2014 9. 9 OCC Will Probably Continue To Slow. Steady ADR Growth. -10 -5 0 5 1990 2000 2010 OCC % Change ADR % Change -6.7% 7.5% 6.8% -9.7% 6.2% Total U.S., ADR & OCC % Change, 12 MMA 1/1990 1/2014 4.2% 10. 10 Positive RevPAR Growth For The Foreseeable Future -20 -15 -10 -5 0 5 10 1990 2000 2010 -16.8% -2.6% -10.1% 9% 8.6% Total U.S., RevPAR % Change, 12 MMA 1/1990 1/2014 65 Months 41 Mo.112 Months 11. 11 Chain Scale Review 12. 12 Scales: Upscale Supply Growth Now Noticeable 0.7 2.1 4.0 -0.7 1.7 0.60.7 2.7 4.4 1.4 5.7 4.6 Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Supply Demand *Supply / Demand % Change, by Scale, January 2014 13. 13 Scales: ADR Growth Strong For Luxury & Economy Hotels 0.0 0.6 0.4 2.1 4.0 4.0 5.6 3.1 2.8 2.3 2.5 3.3 Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Occupancy ADR *OCC / ADR % Change, by Scale, January 2014 14. 14 Scales: RevPAR Catches Up To Prior Record Highs $213 $113 $84 $62 $44 $31 $216 $116 $87 $64 $43 $30 Luxury Upper Upscale Upscale Upper Midscale Midscale Economy 2007 2013 *RevPAR $, by Scale, 2007 & 2013 15. 15 Segmentation 16. 16 3% 4% 5% 6% Jan 12 Jul 12 Jan 13 Jul 13 Demand ADR *Transient Demand and ADR % Change, 12 MMA, 1/2012 1/2014 Transient Growth Rates Healthy 17. 17 -2% -1% 0% 1% 2% 3% 4% Jan 12 Jul 12 Jan 13 Jul 13 Demand ADR *Group Demand and ADR % Change, 12 MMA, 1/2012 1/2014 Is No Group Demand Growth The New Normal? 18. 18 Transient Occupancy Share Increases 43% 57% 2005 Group Transient 36% 64% 2013 Group Transient *Transient and Group Occupancy as Share of Total OCC, 2005 and 2013 19. 19 Transient ADR Premium Not As Strong As In Last Upturn $10 $15 $20 $25 1 year 2 years 3 years Starting 2005 Starting 2011 *Transient ADR Premium over Group ADR, 12 MMA, 1/05-12/07 & 1/11-1/14 20. 20 Markets 21. 21 January 2014 RevPAR: Best / Worst Performing Markets Market RevPAR % Change Market RevPAR % Change Florida Keys 23.7 Omaha, NE -5.3 San Francisco/San Mateo, CA 19.3 Central New Jersey -5.4 Philadelphia, PA-NJ 17.9 North Dakota -5.8 Denver, CO 16.5 Mississippi -6.0 Myrtle Beach, SC 16 North Carolina East -8.1 Wyoming 15.9 Pennsylvania Area -8.6 West Palm Beach Boca Raton, FL 15.8 California North Central -9 California Central Coast 15.7 Washington, DC-MD-VA -23 Los Angeles-Long Beach, CA 15.2 Long Island -29.4 San Jose-Santa Cruz, CA 15.1 New Jersey Shore -32.6 22. 22 January 2014 ADR: Best / Worst Performing Markets Market ADR % Change Market ADR % Change Florida Keys 13.0 Chicago, IL -1.7 San Francisco/San Mateo, CA 11.9 Chattanooga, TN-GA -1.8 San Jose-Santa Cruz, CA 11.3 Kansas City, MO-KS -1.8 West Palm Beach-Boca Raton, FL 10.7 Jackson, MS -1.9 Los Angeles-Long Beach, CA 9.7 North Dakota -2.3 Oakland, CA 9.3 Baltimore, MD -3.3 Oahu Island, HI 8.6 New Jersey Shore -4.7 Maui Island, HI 8.6 Long Island -5.6 Bergen-Passaic, NJ 7.7 California North Central -5.9 Greenville-Spartanburg, SC 7.5 Washington, DC-MD-VA -17.6 23. 23 State of Indiana 24. 24 Hotels 965 Rooms 84,366 STR Sample 76% Occupancy 58.3% 1.8% ADR $88 0.7% RevPAR $51.12 2.6% Room Revenue $1.2mm 3.4% State of Indiana Key Performance Indicators 12 Months Ending January 2014, Indiana Results 25. 25 3.4 -1.3 -4.5 2.1 -2.5 2.9 -6.4 -9.0 -5.0 1.1 5.9 4.7 -1.2 3.5 1.1 4.9 3.7 3 6.8 0.9 4.3 3.4 5 8.5 0 1.8 1.8 0.6 2.4 Supply Demand Occupancy ADR RevPAR 2008 2009 2010 2011 2012 2013 State of Indiana- Key Performance Indicators % Change Full Year 2008 2013 Moderate Growth Among All KPIs 26. 26 -16 -8 0 8 16 2006 2007 2008 2009 2010 2011 2012 2013 2014 Supply % Chg Demand % Chg OCC % Chg ADR % Chg Recovery? Indiana: Supply, Demand, OCC, & ADR % Change Twelve Month Moving Average 2006 through January 2014 27. 27 $50 $60 $70 $80 $90 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Indiana: Actual ADR ($) Twelve Month Moving January 2001 thru January 2014 ADR Has Surpassed 2008 Peaks $87 Sept. 08 $82.00 28. 28 1.6 -1.5 43.9 0.1 2.6 Indiana North Indiana South Indianapolis Occupancy ADR RevPAR 1.9 1.9 -1.4 Indiana Markets - Occ / ADR / RevPAR % Change Twelve Month Moving Average January 2014 Growth in Most Indiana Markets 29. 29 55.2 54.9 61.8 $81.85 $81.00 $90.32 $45.19 $44.46 $55.83 Indiana North Indiana South Indianapolis Occupancy ADR RevPAR Indiana Markets - Occ / ADR / RevPAR Twelve Month Moving Average January 2014 Strongest Performance in Indianapolis 30. 30 63.8 61.8 55.2 55.0 53.8 49.7 Gary MSA Indianapolis, IN Market Indiana North Market Evansville-Henderson MSA Indiana South Market Fort Wayne MSA -3.5% Indiana Markets & Sub-Markets: Occupancy & % Change Twelve Month Moving Average January 2014 4% 1.6% -0.2% -1.9% 0.7% Gary Highest OCC % but Indianapolis Strongest OCC Growth 31. 31 $90.32 $81.85 $80.21 $78.59 $77.84 $72.67 Indianapolis, IN Market Indiana North Market Gary MSA Evansville-Henderson MSA Indiana South Market Fort Wayne MSA Indiana Markets & Sub-Markets: Actual ADR & % Change Twelve Month Moving Average Ending January 2014 -1.4% 2.3% 1.5% 4% 4.4% 1.9% Strongest Rate Growth in Indiana South & Evansville 32. 32 Indiana Pipeline 33. 33 Indiana Customer Segmentation 34. 34 Indiana: Monthly Transient Room Demand (sold) January 2007 Through December 2013 400 500 600 700 800 900 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2011 2012 2013 Dec. 2013. 672,954 rooms sold Thousands Transient Rooms Sold in August 2013 Out Pacing Prior Years 35. 35 Indiana: Monthly Transient ADR January 2007 Through December 2013 $70 $80 $90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2011 2012 2013 Dec.2012 $77.60 Transient ADR Surpasses 2007 Peaks (Mostly) 36. 36 Indiana: Monthly Group Room Demand (sold) January 2007 Through December 2013 200 300 400 500 600 700 800 900 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2011 2012 2013 Dec. 2012 285,396 Thousands April 2013 Group Rooms Sold Out Paced Prior Years 37. 37 Oklahoma: Monthly Group ADR January 2007 Through December 2013 $65 $75 $85 $95 $105 $115 $125 $135 $145 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2011 2012 2013 Dec. 2013 $82.76 $136.80 Super Bowl XLVI Had Large Effect on Group ADRs 38. 38 Indiana North 39. 39 40. 40 Indiana North Key Statistics Twelve Month Moving Average January 2014 % Change Hotels 410 Room Supply 30,462 Sample 72% Occupancy 54.5% 1.7% ADR $78.96 2.4% RevPAR $43.03 4.1% Room Revenue $477m 4.2% 41. 41 55% 54% 46% 48% 50% 52% 60% 58% 53% 56% 56% 59% 35 45 55 65 75 2007 2008 2009 2010 2011 2012 2013 Weekday Weekend 60% 52% Indiana North Weekday / Weekend Occupancy % Year End 2006 2013 Occupancy almost back to 2007 peaks.. Both Weekday & Weekend! 42. 42 $76 $75 $72 $71 $73 $75 $76 $85 $82 $80 $79 $81 $83 $85 $50 $60 $70 $80 $90 $100 $110 $120 2007 2008 2009 2010 2011 2012 2013 Weekday Weekend Indiana North- Weekday / Weekend ADR Year End 2006 2013 ADR Spread $6-$9 43. 43 Indiana North 44. 44 Indiana South 45. 45 46. 46 Indiana South Key Statistics Twelve Month Moving Average January 2014 % Change Hotels 246 Room Supply 18,810 Sample 71% Occupancy 53.8% -1.9% ADR $77.84 1.5% RevPAR $41.86 -0.4% Room Revenue $287m 0.4% 47. 47 Indiana South Pipeline 48. 48 Indianapolis, IN 49. 49 50. 50 Indianapolis Key Statistics Twelve Month Moving Average January 2014 % Change Hotels 274 Room Supply 31,233 Sample 86% Occupancy 61.8% 4.0% ADR $90.32 -1.4% RevPAR $55.83 2.6% Room Revenue $639m 2% 51. 51 60% 57% 50% 52% 55% 57% 58.1 66% 63% 60% 61% 63% 68% 2007 2008 2009 2010 2011 2012 2013 Weekday Weekend 58% 70% Indianapolis Weekday / Weekend Occupancy % Year End 2006 2013 Weekend Occupancy Continues to Surpass Prior Peaks 52. 52 $90 89 $82 $82 $84 $90 $90 $93 $89 $82 $81 $84 $93 $91 2007 2008 2009 2010 2011 2012 2013 Weekday Weekend Indianapolis Weekday / Weekend ADR Year End 2006 2013 Very Little Difference in ADR WD vs. WE 53. 53 4.1% 0.6% 3.6% 13.2 2.2 -2.3% -1.7% -4.6% -6.2 2.8 1.7% -1.1% -1.1 6.2 5.1 Indianapolis Smalltowns North Loop Southeast Airport/Speedway CBD Occupancy ADR RevPAR Indianapolis Tracts - Occ / ADR / RevPAR % Change Twelve Month Moving Average January 2014 Indianapolis Airport/Speedway Largest RevPAR Growth 54. 54 Indianapolis Market Breakdown - Occ / ADR / RevPAR Twelve Month Moving Average January 2014 55.7 61.3 58.4 59.1 70.4$70.83 $82.12 $60.69 $69.33 $140.24 $39.45 $50.35 $35.42 $40.95 $98.68 Indy Smalltowns North Loop Southeast Airport/Speedway CBD Occupancy ADR RevPAR 55. 55 Indianapolis Pipeline Project Name Room Count Open Date Holiday Inn 122 February 2015 Suburban Extended Stay 119 December 2014 Courtyard by Marriott 92 May 2014 Hampton Inn 100 March 2014 Sleep Inn 91 May 2014 56. 56 Pipeline 57. 57 US Pipeline: Construction Accelerates Phase 2014 2013 % Change In Construction 96 72 34% Final Pla

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