Big Picture Destination Marketing in the 2015 Hotel Environment
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In case you missed our live broadcast of this webinar with STR, catch the presentation to help you prepare your marketing plans for 2015 with a heightened understanding of the trends and market forces impacting hotel occupancy in the year ahead. Presenter: Brittany Baldwin, Director of Business Development, Destinations with STR
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Big Picture Destination Marketing in the 2015 Hotel Environment
- 1. Hotel InduSTRy Overview Brittany Baldwin CSGP, CHIA Director of Business Development, Destinations DMAI Webinar October 7, 2014
- 2. 1. Visit www.HotelNewsNow.com 2. Create Free Login 3. Click on “Data Presentations”
- 4. 1.Industry Pulse from 30,000 ft. 2.Group Demand ‘Comeback’? 3.Best & Worst Market Performance 4.Pipeline Growth 5.Where Are We Headed? 5 Things to Know …..
- 5. U.S. Pulse -Positive So Far 1
- 6. U.S. Records Set in 2013! Most Rooms Available Most Rooms Sold Highest Rooms Revenue Highest ADR ($110) Highest RevPAR ($70) Full Year 2013
- 7. May 2014 RevPAR Growth 10%
- 8. May 2014 RevPAR Growth 10% Highest May of any on record…ever!
- 9. June 2014 Occupancy 71.7%
- 10. June 2014 Occupancy 71.7% Highest June occupancy this century!
- 11. July 2014: Most Rooms Sold Ever! 113 Million
- 12. August 2014 YTD: Strong Demand Drives Very Strong RevPAR % Change •Room Supply*0.8% •Room Demand*4.3% •Occupancy66%3.4% •ADR*$115 4.4% •RevPAR*$768.0% •Room Revenue*8.9% August 2014 YTD, Total US Results * All Time High for First 8Months
- 13. Demand Growth AcceleratesAgain. Smooth Sailing Ahead! -8 -4 0 4 8 1990 2000 2010 Supply % Change Demand % Change -6.9% -0.9% -4.7% Total U.S., Supply & Demand % Change, 12 MMA 1/1990 –8/2014 8.0% 3.5%
- 14. Steady ADR Growth As Room Demand Growth Continues -10 -5 0 5 1990 2000 2010 Demand % Change ADR % Change -4.5% 7.5% 6.8% -8.7% 4.1% Total U.S., ADR & Demand % Change, 12 MMA 1/1990 –8/2014
- 15. Group Demand ‘Comeback’? Group Transient Contract 2
- 16. Group Demand ‘Comeback’? Group Transient Contract Segmentation 2
- 17. Group Demand ‘Comeback’? Group Transient Contract Segmentation 2
- 18. Total U.S.: Transient Occupancy ShareIncreases 43% 57% Group Transient 36% 64% Transient and Group Occupancy as Share of Total OCC, 2005 and 2013 (Share does not include contract) 2005 2013
- 19. U.S. Transient and Group Occupancy Mix of Total OCC 2005 thru August 2014 Transient Continues To Grow Share of Occupancy 30% 40% 50% 60% 70% 2005 2007 2009 2011 2013 Group mix Trans Mix
- 20. Group Demand Is Roaring Back -2% -1% 1% 2% 3% 4% 5% 2012 2013 2014 Demand % Change ADR % Change Group Demand and ADR % Change, 12 MMA, 1/2012 –8/2014 *2013 Easter Comp
- 21. As of July 20141.8 million moregroup rooms sold than in the prior 12 months
- 22. August 2014 Group ADR 4.1% Highest Monthly Group Rate Growth This Year
- 23. What Do Meeting Planners Say?
- 25. Relativeto Previous Years, was Attendance for your Largest Meeting… 46% 42% 46% 35% 36% 38% 19% 22% 16% Overall Association Corporate Up Unchanged Down DestinationMAP 2013 Vol. 1; 40 North American Meeting Mkts; Largest meeting = 300+ attendees
- 26. DestinationMAP 2013 Vol. 1; 40 North American Meeting Mkts
- 27. What Planners Consider “Very Important” in Meeting Site Selection 57% 62% 62% 64% 64% 66% 73% 80% 81% 81% 81% 87% Good restaurants Attractiveness of conference hotels Willing to make financial/other concessions Number of hotel rooms available Clean/attractive city Security/crime rate Good value for the money Easy for delegates to get to Convenient airline service Travel costs to location Food and lodging costs Good hotels DestinationMAP 2013 Vol. 1; 40 North American Meeting Mkts; Selection from 26 Characteristics
- 28. 46% 57% 94% 2009 2011 2013 Wi-Fi Required for Largest Meeting Sees Exponential Growth DestinationMAP 2013 Vol. 1; 40 North Am. Meeting Mkts; Largest =300+ attendees; Last 12 months
- 29. “Very Likely” Deterrents for Destination/City Site Selection 94% 89% 85% 61% 56% 51% 45% 44% 27% 20% DestinationMAP 2013 Vol. 1; 40 North American Meeting Mkts; Selection from 22 Characteristics
- 30. DestinationMAP 2013 Vol. 1; 40 North American Meeting Mkts High and Low Perception Ratings for 2013
- 31. 3 U.S. Market Performance
- 32. August 2014 YTD RevPAR: Market RevPAR % Change Market RevPAR % Change Nashville, TN 18.9 Maui Island, HI 1.9 Augusta, GA-SC 18.3 Central New Jersey 1.6 Denver, CO 16.5 Buffalo, NY 1.6 San Jose-Santa Cruz, CA 14.9 Connecticut Area 1.4 Fort Myers, FL 14.9 Oklahoma City, OK 1.3 Oakland, CA 14.6 New Jersey Shore 0.4 Sarasota-Bradenton, FL 14.3 Texas South 0 Las Vegas, NV 14.2 Long Island -1.3 Memphis, TN-AR-MS 14.1 North Dakota -1.7 Wyoming 13.6 Rochester, NY -2.7 Highest Growth Mkts Lowest Growth Mkts
- 33. August 2014 YTD ADR % Change for Top 25 markets Market OCC % ADR % Change Nashville, TN 73.0 13.1 San Francisco/San Mateo, CA 84.5 11.5 Denver, CO 77.3 8.4 Seattle, WA 77.6 8.4 Boston, MA 76.1 7.5 New York, NY 84.1 2.2 Norfolk/Virginia Beach, VA 57.8 2.2 Chicago, IL 69.5 2.0 New Orleans, LA 69.6 1.9 Philadelphia, PA-NJ 68.9 0.7 Washington, DC-MD-VA 70.6 -0.6 Highest / Lowest YTD Rate Growth –Top 25 Mkts
- 34. August 2014 YTD ADR % Change in Secondary Markets (26 –50) Market OCC % ADR % Change San Jose/Santa Cruz, CA 77.0 12.5 Oakland, CA 77.8 10.1 Portland, OR 73.6 7.7 Austin, TX 73.8 6.9 Fort Lauderdale, FL 79.9 6.5 Pittsburgh, PA 68.8 3.3 San Antonio, TX 67.3 2.8 Salt Lake City/Ogden, UT 68.2 2.7 Richmond/Petersburg, VA 61.6 2.1 Baltimore, MD 69.0 1.9 Highest / Lowest YTD Rate Growth –Secondary Mkts
- 36. In Construction–Vertical construction on the physical building has begun. (This does not include construction on any sub-grade structures.) Final Planning–construction will begin within the next 12 months. Planning–construction will begin in more than 13 months. Unconfirmed(formerly Pre-Planning)-Potential projects that remain unconfirmed at this time. Under Contract STR Pipeline Phases Under Contract
- 37. US Pipeline: Construction Accelerates, But Is Still Muted Phase 2014 2013 % Change In Construction 108 78 38% Final Planning 123 125 -1% Planning 159 141 12% Under Contract 391 345 14% Total US Pipeline, by Phase, ‘000s Rooms, August 2014 and 2013
- 38. Construction In Top 26 Markets: 16 With 2%+ Of Supply US Pipeline, Top 26 Markets, U/C Rooms as % of Existing Supply, August 2014 Market Rooms U/C % Of Existing Las Vegas, NV 0.0% Norfolk-Virginia Beach, VA 104 0.3% Tampa-St Petersburg, FL 211 0.5% Orlando, FL 595 0.5% Oahu Island, HI 144 0.5% San Francisco/San Mateo, CA 333 0.6% St Louis, MO-IL 255 0.7% Atlanta, GA 852 0.9% Philadelphia, PA-NJ 521 1.1% Detroit, MI 587 1.4% Phoenix, AZ 1,240 2.0% Chicago, IL 2,252 2.1% New Orleans, LA 826 2.2% Minneapolis-St Paul, MN-WI 850 2.2% Los Angeles-Long Beach, CA 2,187 2.2% San Diego, CA 1,381 2.3% Washington, DC-MD-VA 2,619 2.4% Dallas, TX 1,974 2.5% Boston, MA 1,379 2.7% Denver, CO 1,250 2.9% Nashville, TN 1,157 3.1% Anaheim-Santa Ana, CA 2,251 4.1% Seattle, WA 1,918 4.7% Miami-Hialeah, FL 2,652 5.4% Houston, TX 4,622 6.1% New York, NY 13,194 11.8%
- 39. Under Construction Rooms Mostly In Limited Service Segments 3.6 11.0 41.3 31.7 4.9 1.1 15.2 Luxury UpperUpscale Upscale UpperMidscale Midscale Economy Unaffiliated US Pipeline, Rooms Under Construction , ‘000s Rooms, by Scale, August 2014 67%
- 40. Where Are We Headed? 5
- 41. 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 –8/2014 65 Months 46 Mo. 112 Months
- 42. Total United StatesKey Performance Indicator Outlook (% Change vs. Prior Year) 2014 –2015 (As of August 12, 2014) U.S. Outlook 2014 Forecast 2015 Forecast Supply 1.0% 1.3% Demand 3.6% 2.1% Occupancy 2.6% 0.7% ADR 4.2% 4.4% RevPAR 6.9% 5.2%
- 43. 2014 YearEnd Outlook U.S.Chain Scales Occupancy (% chg) ADR (% chg) RevPAR (%chg) Luxury -0.1% 4.6% 4.5% Upper Upscale 2.0% 4.4% 6.5% Upscale 2.0% 4.4% 6.5% Upper Midscale 2.6% 3.3% 6.0% Midscale 3.0% 3.5% 6.6% Economy 2.9% 3.9% 6.8% Independent 2.8% 4.6% 7.5% Total United States 2.6% 4.2% 6.9% As of August 12th, 2014
- 44. -5%to 0% 0% to 5% 5% to 10% 10% to 15% 15%+ Chicago Anaheim Atlanta Nashville New Orleans Detroit Boston New York Houston Dallas Norfolk Los Angeles Denver Philadelphia Miami San Francisco Washington Minneapolis Seattle Oahu Tampa Orlando Phoenix San Diego St. Louis 2014 Year End RevPAR ForecastTop 25 US Markets, August 2014 Forecast (Markets sorted alphabetically)
- 45. 2015 Year End RevPAR ForecastTop 25 US Markets, August 2014 Forecast (Markets sorted alphabetically) -5%to 0% 0% to 5% 5% to 10% 10% to 15% New York Atlanta Anaheim Nashville New Orleans Boston Norfolk Chicago Philadelphia Dallas Washington Denver Detroit Houston Los Angeles Miami Minneapolis Oahu Orlando Phoenix San Diego San Francisco Seattle St. Louis Tampa
- 46. To Recap… •Life is Great! ‘Fish While the Fishing is Good’ •Demand Growth: Strong & Steady •Group Demand: Still Wild Card •Supply growth: Not an Issue, yet •YE RevPAR Forecast: Rosy!
- 48. @BrittanyB_STR DMAI Blog Content