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2013 STR Data

2013 STR Data

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  • 1. 1 Hotel InduSTRy Overview Hoosier Hospitality Conference Lauren Faulkner Business Development Executive
  • 2. 2 Today’s 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 Planning 137 96 42% Planning 123 137 -10% Active Pipeline 357 307 16% *Total US Pipeline, by Phase, ‘000s Rooms, January 2014 and 2013
  • 58. 58 Under Construction Rooms Mostly In Middle Segments 4.6 8.0 35.7 28.9 5.1 1.2 13.3 Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Unaffiliated *US Pipeline, Rooms Under Construction , ‘000s Rooms, by Scale, January 2014 67%
  • 59. 59 Construction In Top 26 Markets: 12 With 2%+ Of Supply *US Pipeline, Top 26 Markets, U/C Rooms as % of Existing Supply, January 2014 Market Rooms UC % Of Existing Las Vegas, NV 169,480 0.0% Oahu Island, HI 29,337 0.0% Norfolk-Virginia Beach, VA 38,537 168 0.4% Minneapolis-St Paul, MN-WI 38,450 190 0.5% San Francisco/San Mateo, CA 51,167 312 0.6% Phoenix, AZ 62,061 438 0.7% Detroit, MI 41,980 384 0.9% Atlanta, GA 93,713 899 1.0% Tampa-St Petersburg, FL 44,297 471 1.1% San Diego, CA 59,162 734 1.2% St Louis, MO-IL 38,007 538 1.4% Chicago, IL 109,180 1,671 1.5% Dallas, TX 78,384 1,299 1.7% Philadelphia, PA-NJ 45,524 778 1.7% Orlando, FL 118,462 2,358 2.0% Boston, MA 51,086 1,043 2.0% New Orleans, LA 37,470 866 2.3% Anaheim-Santa Ana, CA 54,186 1,287 2.4% Los Angeles-Long Beach, CA 97,702 2,323 2.4% Washington, DC-MD-VA 105,663 2,965 2.8% Nashville, TN 37,620 1,127 3.0% Houston, TX 75,109 2,361 3.1% Miami-Hialeah, FL 48,817 1,706 3.5% Seattle, WA 40,734 1,914 4.7% Denver, CO 41,496 2,193 5.3% New York, NY 109,852 12,201 11.1%
  • 60. 60 2014 / 2015 Forecast
  • 61. 61 Total United States Chain Scale Key Performance Indicator Outlook 2014F by Chain Scale 2014 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (%chg) Luxury 1.6% 4.8% 6.5% Upper Upscale 0.1% 4.4% 4.5% Upscale 2.2% 4.2% 6.6% Upper Midscale 0.5% 3.2% 3.7% Midscale 0.9% 3.1% 4.1% Economy 1.7% 3.3% 5.1% Independent 0.6% 4.5% 5.1% Total United States 1.1% 4.2% 5.3% *as of January 24th, 2014
  • 62. 62 Total United States Chain Scale Key Performance Indicator Outlook 2015F by Chain Scale 2015 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (%chg) Luxury 0.8% 4.8% 6.0% Upper Upscale 0.2% 4.4% 4.6% Upscale 0.5% 4.2% 5.1% Upper Midscale -0.4% 3.2% 2.1% Midscale 0.2% 3.1% 3.5% Economy 2.6% 3.3% 6.2% Independent -0.1% 4.5% 4.3% Total United States 0.5% 4.2% 4.7% *as of January 24th, 2014
  • 63. 63