MEA SERVICED APARTMENT MARKETS AND GUEST EXPERIENCE INDEX Filippo - PowerPoint PPT Presentation

MEA SERVICED APARTMENT MARKETS AND GUEST EXPERIENCE INDEX Filippo Sona Director | Head of Hotels MENA Colliers International

SUPPLY NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED SUPPL Y- 2016 54% 35 60% Thousands 30% 30 50% 41% 36% Contribution 25 40% 27% of Serviced 24% 20 30% 19% 18% Apartments to 17% 15 20% Total Supply 10 2% 10% 2% 14% 0% 0% 94% 5 0% 59% 6% 20% 0 -10% Abu Dhabi Al Khobar Doha Dubai Jeddah Kuwait City Madinah Makkah Manama Muscat Riyadh Sharjah & Dammam 2015 Increase from 2015 % of Internationally Branded NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED SUPPL Y- 2020 72% 50 100% 63% Thousands More than 53% 90% Expected 40 22,500 80% 51% 70% Future 41% Keys 30 60% 33% 26% 38% 50% 24% Supply 28% (Serviced 20 40% 26% 20% (2017-2020) Apartments) 19% 30% 18% 16% 14% 14% 10% 10 9% 20% 4% 6% 5% 2% 10% 3% 0 0% Abu Dhabi Dammam & Doha Dubai Jeddah Kuwait Madinah Makkah Manama Muscat Riyadh Sharjah Khobar 2 Confidential – Colliers International 2016 Total Supply of Serviced Apartments by 2020 % of Serviced Apartment to Total Supply - 2020 % of Internationally Branded - 2020

PERFORMANCE Below Average REVPAR Above Average REVPAR 1 00% Abu Dhabi Doha Riyadh Muscat Dubai Jeddah 110 20 200 Makkah 75% ADR in US$ K uwait Madinah Al K hobar & Dammam Average REVPAR = US$80 Sharjah Legend: Size of Market Large Market (More than 7,000 keys) Medium (3,000 – 7,000 keys) 50% Manama Small (Less than 3,000 keys) Occupancy Average REVPAR line 3 Confidential – Colliers International 2016

KPIs - COMPARISON 90% 250 83% 83% 80% 80% 84% 79% 83% 80% 75% 75% 80% 79% 73% 199 197 80% 76% 70% 187 183 73% 70% 66% 71% 70% 150 67% 60% 139 60% 137 135 132 128 126 52% 59% 107 106 50% 50% 96 91 78 78 71 70 68 64 67 67 67 60 40% 50 Abu Dhabi Al Khobar & Doha Dubai Jeddah Kuwait Madinah Makkah Manama Muscat Riyadh Sharjah Dammam City ADR (USD) - 2014 ADR (USD) - 2015 Occupancy % - 2014 Occupancy % - 2015 4 Confidential – Colliers International 2016

ARE SERVICED APARTMENTS DOING BETTER THAN HOTELS? YOY REVPAR VARIANCE – 2014 to 2015 HOTEL VS SERVICED APARTMENTS Serviced Apartments Market Hotels Dubai -5.0% -2.3% Doha -2.7% 2.5% 5 Confidential – Colliers International 2016

DEMAND SEGMENTATION GCC SERVICED APARTMENT DEMAND SEGMENTATION (2015) 100% 3% 12% 12% 12% 8% 11% 7% 10% 11% 5% 12% 15% 80% 16% 16% 74% 60% 96% 94% 89% 89% 88% 87% 85% 80% 40% 73% 72% 72% 20% 15% 11% 0% Riyadh Makkah Madinah Jeddah Dammam & Manama Muscat Doha Kuwait City Dubai Abu Dhabi Sharjah Al Khobar < 1 Month 1- 6 Months > 6 months 6 Confidential – Colliers International 2016

GUEST EXPERIENCE INDEX ONLINE RATING: MAP – GEI SCORING FOR SERVICED APARTMENTS BY CITY (September 2016) Score out of 1 00 Sheikh Zayed Road & DIFC Dubai Creek & Marina / JBR 72% 80% Festival City 82% 81 % 81 % 1% Amman 69% Beirut 4% 1% Kuwait C ity 65% 3% 76% 70% 77% C airo Aqaba Sharjah Manama 3% 8% 76% 78% 71 % 55% Al Khobar Dubai 69% Hurghada Sharm 1% 3% El Sheikh 76% 11% Fujairah 76% 6% 3% 73% Madinah 80% Doha 4% R iyadh 1% Abu Dhabi 76% 74% 58% 2% 3% 81 % 65% Jeddah Doha Airport 1% Makkah & City Centre 6% W est Bay & Muscat Diplomatic Area 11% % Increase vs. Last Year % Decrease vs. Last Year 7 Confidential – Colliers International 2016

GEI – TOP TEN BRANDS (September 2016) SERVICED APARTMENT BY TYPE OF AFFILIATION (September2016) Rank Brand G EI Rating G uest Experience Index Room Value Service Location Cleanliness 1 93.7% (G EI) R ating R ating R ating R ating R ating 2 90.8% 74.9 81 .4 82.9 81 .1 87.5 81 .9 Overall 3 86.5% 72.9 77.6 82.0 77.3 85.9 75.0 Unbranded 72.9 82.0 77.3 85.9 75.0 4 86.0% 5 84.7% 76.3 77.2 76.3 82.1 77.9 86.5 83.3 Locally Branded 6 84.0% 80.7 85.1 83.8 88.0 89.4 88.9 R egionally Branded 7 83.7% 8 82.6% 82.9 91 .1 84.1 88.9 89.7 90.0 90.0 Internationally Branded 82.9 91 .1 84.1 88.9 89.7 9 82.4% Best and worst by type of rating 10 82.2% Source: O lery, C olliers International N ote: R atings are out of 1 00 Source: O lery, C olliers International 8 Confidential – Colliers International 2016

CHALLENGES & OPPORTUNITIES • Dual Brand Combo Concepts • Adequate amenities • Smaller units 9 Confidential – Colliers International 2016

Thank You