History Shaping the Future: Presentation Title Benchmarking and - PowerPoint PPT Presentation

History Shaping the Future: Presentation Title Benchmarking and Performance Trends in the Hotel Sector for Strategic Decision Making Subtitle Elizabeth Randall Winkle Managing Director, STR Global Date and Location Fáilte Ireland Industry Breakfast Briefing 2 October 2012 STR Global Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited

Agenda Global Overview – mixed results Spotlight on Europe – stabilising demand, muted new Supply Focus on Ireland – recovery Pipeline – Europe Forecast – what does the future hold?

Global RevPAR RevPAR % change Europe € YE 09 YE 10 YE11 YTD12 -16.7% +9.9% +5.8% +5.3% North America $ Asia Pacific $ YE 09 YE 10 YE11 YTD12 YE 09 YE 10 YE 11 YTD12 -17.0% +6.0% +8.0% +6.8% -20.0% +17.5% +8.8% +3.3% Middle East & Africa $ YE 09 YE 10 YE11 YTD12 Middle East -19.4% -6.3% +2.9% +8.9% N. Africa -11.9% +11.7% -36.3% +10.5% S. Africa -13.4% +12.7% -0.6% - 3.6%

Moderate Demand growth w/ muted supply growth Year to date 2012, YOY % change, supply, demand, revPAR USD$ 12% Middle 10% East D E 8% M A 6% N North Asia Pacific D America 4% 2% Europe € 0% 0% 1% 2% 3% 4% 5% 6% 7% 8% -2% SUPPLY

RGI almost to 1.0 RGI Index on YTD Aug 2008, US dollars, only Europe in Euros 1.1 1 0.9 Middle East 0.8 Europe 0.7 North America Asia Pacific 0.6 0.5 0.4 YTD Aug 07 YTD Aug 08 YTD Aug 09 YTD Aug 10 YTD Aug 11 YTD Aug 12

Asia Pacific Total AP, ADR US$, Jan 08 – Aug 12 $145 Sep’08 $141 Aug’12 $139 $140 $135 $130 -17% $125 +18.8% $120 15 months 33 months $115 Dec’09 $117 $110 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 ADR $

Middle East & Africa Total MEA, ADR US$, Jan 08 – Aug 12 $165 Jan’12 $163 $160 Jan’09 $156 $155 +9% $150 -4% $145 14 months 23 months Feb’10 $150 $140 $135 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 ADR $

Europe € - taking longer to recover Total Europe, ADR Euros € , 12 MMA 2008 – YTD 2012 110.00 108.00 Apr ’08 € 107 106.00 104.00 July ‘12 € 102 102.00 -13% 100.00 98.00 +9.6% 96.00 94.00 23 months 29 months 92.00 Feb ’10 € 93 90.00 2008 2009 2010 2011 2 0 1 2

Total US Room Rates Actual vs. Inflation Adjusted 2000 – 2013F $120 $115.29 If year 2000 ADR had increased $112.91 by CPI each year… $110.59 $110 $107.21 $105.85 Nominal ADR $105.48 $101.94 Yr 2000, Grown by CPI $99.12 $100 $96.02 $92.87 $90.46 $90 $87.07 $88.45 $84.66 $84.66 $83.62 $82.54 $82.67 $86.19 $91.04 $97.82 $104.32 $107.40 $98.07 $98.06 $101.70 $106.15 $111.01 $80 Note: 2011 & 2012 CPI forecast from Blue Chip Economic Indicators

Agenda Global Overview – mixed results Spotlight on Europe – stabilising demand, muted new Supply Focus on Ireland – recovery Pipeline – Europe Forecast – what does the future hold?

Europe in detail Jan-July 2012 YTD 2012 Occ ADR RevPAR Total 65% € 104 € 67 Eastern 58% € 91 € 53 Northern 69% € 99 € 68 Southern 61% € 102 € 62 Western 65% € 116 € 75 YTD Occ ADR RevPAR Top 65% € 169 € 110 9% Middle 65% € 88 € 57 29% Lower 66% € 61 € 40 36% Eastern Northern 26% Southern Sample rooms Western 11

-15% -10% 10% 15% 20% 25% 30% -5% 2012 YTD, %chg, Occ and ADR (local currency) 0% 5% Selected European Cities Amsterdam Athens Barcelona Berlin Brussels Budapest Dublin Helsinki Istanbul Lisbon London Madrid Moscow Paris Prague ADR Occupancy Rome Vienna Warsaw Zurich

London high Occ and Paris with high ADR Jan-Aug2012 Occupancy 90% € 300 ADR € 80% € 250 70% 60% € 200 50% € 150 40% 30% € 100 20% € 50 10% 0% € 0

European long-term view Seasonal adjusted supply, demand (# monthly rooms), RevPAR 135,000,000 100 90 125,000,000 80 115,000,000 70 105,000,000 60 50 95,000,000 40 85,000,000 30 75,000,000 20 65,000,000 10 Jan-99 Aug-99 May-01 Jul-02 Feb-03 Sep-03 Nov-04 Jun-05 Jan-06 Aug-06 May-08 Jul-09 Feb-10 Sep-10 Nov-11 Jun-12 Mar-00 Oct-00 Dec-01 Apr-04 Mar-07 Oct-07 Dec-08 Apr-11 Supply Demand RevPAR ( € )

-20 -15 -10 European long-term view YOY percentage change for occupancy and ADR € 10 15 -5 0 5 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Occupancy Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 ADR Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

10 -5 Spotlight on downturns YOY percentage change for occupancy and ADR € 0 5 -20 -15 -10 -5 0 5 Jan-12 Nov-07 Dec-07 Jan-08 Feb-08 Feb-12 Mar-08 Apr-08 May-08 Jun-08 Mar-12 Jul-08 Aug-08 Occupancy Sep-08 Oct-08 Apr-12 Nov-08 Dec-08 Jan-09 ADR Feb-09 May-12 Mar-09 Apr-09 May-09 Jun-09 Jun-12 Jul-09 Aug-09 Sep-09 Oct-09 Jul-12 Nov-09 Dec-09

Agenda Global Overview – mixed results Spotlight on Europe – stabilising demand, muted new Supply Focus on Ireland – on the recovery road Pipeline – Europe Forecast – what does the future hold?

Dublin – revPAR growth just surpassed demand 2012 YTD Rolling 12 month supply ( # monthly rooms ), demand, revPAR (Euros € )

Dublin – ADR on the road to recovery Dublin, ADR Euros € , 12 MMA 2008 – YTD August 2012 Jan ’08 € 109.16 Aug ’12 € 86.06 +11.1% 20 months Dec’10 € 77.46

Cork – stable supply & demand & rising revPAR 2012 YTD Rolling 12 month supply ( # monthly rooms ), demand, revPAR (Euros € )

Cork – rate on the recovery highway Cork, ADR Euros € , 12 MMA 2008 – YTD August 2012 Aug ‘12 € 81.26 Aug ’08 € 93.32 +17.1% Jun ‘10 € 69.39 26 months

Irish markets – encouraging growth Jan-August 2012, %chg, Occ and ADR (Euros € )

Agenda Global Overview – mixed results Spotlight on Europe – stabilising demand, muted new Supply Focus on Ireland – recovery Pipeline – Europe Forecast – what does the future hold?

Pipeline - Europe July 2012, pipeline share Pipeline share 3.63% 3.75% 5.22% United Kingdom 30.50% Russia 11.18% Germany Turkey France 13.59% Italy

Agenda Global Overview – mixed results Spotlight on Europe – stabilising demand, muted new Supply Focus on Ireland – recovery Pipeline – Europe Forecast – what does the future hold?

Dublin – Annual Trends and Forecast by Year Euros € currency as of August 2012 forecast Occupancy Annual Trends - Percent Change from Last Year ADR 15.0% RevPAR 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dublin – what do the next three quarters hold? Euros € currency as of August 2012 forecast Dublin

Dublin – YE 2012 and 2013 forecast Euros € currency as of August 2012 forecast Dublin Annual P Annual Perf erfor ormance mance Occupanc Occupa ncy y ADR ADR RevP vPAR AR % Change Euro - € % Change Euro - € Year % % Change Forecast(f) 2012 f 71.6 0.5% 86.01 5.4% 61.56 5.9% 2013 f 70.1 -2.0% 85.57 -0.5% 60.00 -2.5%

Forecast – Selected Cities 2012 RevPAR forecast % chg, local currency as per August 2012 edition Declines expected Growth expected Athens Amsterdam London Madrid Barcelona Moscow Regional UK Berlin Prague Milan Brussels Paris Luxury & Upper Upscale Zurich Budapest Rome Copenhagen Vienna Dublin Warsaw

Expect Slowing Eurozone GDP / Demand % Change *Eurozone Demand & GDP % Change, Quarterly 2004 – 2014F GDP Source: Oxford Economics

Contact details Elizabeth Randall Winkle 0207 922 1930 ewinkle@strglobal.com www.strglobal.com You can follow us on Twitter, Facebook, LinkedIn STR Global, Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited. This presentation is based on information compiled by STR Global Ltd. No strategic or marketing recommendations or advice are intended or implied.