7. Demand Leads ADR….Swings Get More Extreme 1.6% -0.2% -0.9% -4.6% -4.7% -6.9% -8.7% Total U.S.: ADR & Demand % Change Twelve Month Moving Average : Jan. 1989 – March 2011
8. Absolute ADR Will Not Recover for At Least 2 Years 30 Months -$10.60 41 Months -$3.70 Total U.S.: Actual ADR Twelve Month Moving Average: Jan. 2000 – March 2011
9. Hopeful ADR growth will continue to drive RevPAR growth 2011 Total U.S. Outlook
12. Historically: Builds Into Downturns… Indiana: Supply & Demand % ChangeTwelve Month Moving Average: Jan. 2001 – March 2011
13. IF All Active Pipeline Opens…over 5.5% Room Supply Increase! Indiana: Active Development PipelineMarch 2011
14. OCC Growth is Back…ADR Growth much Slower!? Indiana: OCC & ADR % ChangeTwelve Month Moving Average: Jan. 2001 – March 2011
15. ADR discounts not as extreme as U.S…BUT still takes time! 31 Months -$4.81 Indiana:Actual ADR ($) Twelve Month Moving Average: Jan. 2001 – March 2011
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19. Group Demand & ADR Growth pretty in-sync…A good thing. Indiana: Group Room Demand & ADR % ChangeBy Month: Jan. 2004 – March 2011
20. 2011 STR Chain SegmentsSelected Brands from each segment Luxury – Four Seasons, Ritz Carlton, Fairmont, InterContinental Upper Upscale – Hyatt, Embassy Suites, Hilton, Marriott Upscale – Hyatt Place, Hilton Garden Inn, Courtyard, Hotel Indigo Upper Midscale – Best Western PLUS/Premier, Hampton Inn, Fairfield Inn Midscale – Best Western, Country Inn & Suites, La Quinta Inn, Sleep Inn Economy – America’s Best Inn, Econolodge, Red Roof, Days Inn
21. Appears to be a Top Down Recovery… Indiana: Combine Chain Class Demand % Change by Month through March 2011
22. ADR Data is “Less Bad”…need consistent growth. Indiana: Combine Chain Class ADR % Change by Month through March 2011
32. What If since 2000 ADR had increased by CPI each year? Total U.S.: Annual ADR 2000 – 2012P Note: 2011 & 2012 CPI forecast from Blue Chip Economic Indicators
33. Takeaways New Hotel Supply Muted in ‘11 & ‘12 Demand Rebounds (Strongly) ADR Growth Started Strong…Keep It Up!? Indiana Transient Rate Growth Needed