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
4. 1.Industry Pulse from 30,000 ft.
2.Group Demand âComebackâ?
3.Best & Worst Market Performance
4.Pipeline Growth
5.Where Are We Headed?
5 Things to Know âŠ..
6. U.S. Records Set in 2013!
ïŒMost Rooms Available
ïŒMost Rooms Sold
ïŒHighest Rooms Revenue
ïŒHighest ADR ($110)
ïŒHighest RevPAR ($70)
Full Year 2013
12. August 2014 YTD: Strong Demand Drives Very Strong RevPAR
% Change
âąRoom Supply*0.8%
âąRoom Demand*4.3%
âąOccupancy66%3.4%
âąADR*$115 4.4%
âąRevPAR*$768.0%
âąRoom Revenue*8.9%
August 2014 YTD, Total US Results
* All Time High for First 8Months
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 â8/2014
*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
25. Relativeto Previous Years, was Attendance for your Largest MeetingâŠ
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
27. What Planners Consider âVery Importantâ 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. âVery Likelyâ 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
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 âTop 25 Mkts
34. August 2014 YTD ADR % Change in Secondary Markets (26 â50)
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 âSecondary Mkts
36. In ConstructionâVertical construction on the physical building has begun. (This does not include construction on any sub-grade structures.)
Final Planningâconstruction will begin within the next 12 months.
Planningâconstruction 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, â000s 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 , â000s Rooms, by Scale, August 2014
67%
42. Total United StatesKey Performance Indicator Outlook (% Change vs. Prior Year) 2014 â2015 (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 RecapâŠ
âąLife is Great! âFish While the Fishing is Goodâ
âąDemand Growth: Strong & Steady
âąGroup Demand: Still Wild Card
âąSupply growth: Not an Issue, yet
âąYE RevPAR Forecast: Rosy!