Slide 1: European Hotel Performance Update
European Hotel Performance Update Pandox Earnings Call 25th April 2024 Thomas Emanuel | Senior Director All information is provided “as is” and only as of the date referenced and may change. While the information is believed to be accurate, neither CoStar Group nor STR guarantees that it is free fro
Slide 2: Global demand consistently ahead of 2019 levels for over a year now
Global demand consistently ahead of 2019 levels for over a year now….. Global demand indexed to 2019, Jan 2022 – Mar 2024 120 100 80 60 40 20 0 Source: STR. © 2024 CoStar Group 2
Slide 3: However there has been a slight softening in recent months
…..however there has been a slight softening in recent months Global demand YoY % chg., Jan 2023 – Mar 2024 30% 25% 20% 15% 10% 5% 0% -5% jan-23 feb-23 mar-23 apr-23 maj-23 jun-23 jul-23 aug-23 sep-23 okt-23 nov-23 dec-23 jan-24 feb-24 mar-24 Source: STR. © 2024 CoStar Group 3
Slide 4: Which is a result of declines in the US
Which is a result of declines in the US U.S. room demand YoY change 7% 6% 5% 4% 3% 2% 1% 0% (1%) (2%) feb-23 mar-23 apr-23 maj-23 jun-23 jul-23 aug-23 sep-23 okt-23 nov-23 dec-23 jan-24 feb-24 Source: STR. © 2024 CoStar Group
Slide 5: YTD occupancy is mixed, but Europe continues to move in the right direction
YTD occupancy is mixed, but Europe continues to move in the right direction Occupancy % chg., March YTD 2023 and 2024 Europe North America Mainland China 61% 156 59% 158 143 2% 60% 69 -2% 151 Middle East -1% 57 Northern Africa Central America Asia (excl. Mainland China) 73% 165 67% 126 52% 121 69% 1
Slide 6: Europe may look like it's decelerating, however
Europe may look like its decelerating, however….. Europe*, EUR & CC, KPI % change YoY, Apr 2023 – Mar 2024 Occupancy % Chg. ADR % Chg. RevPAR % Chg. 30% 28% 25% 20% 19% 16% 15% 10% 10% 9% 9% 8% 8% 7% 6% 5% 5% 4% 0% apr-23 maj-23 jun-23 jul-23 aug-23 sep-23 okt-23 nov-23 dec-23 jan-24 feb-24 mar-24 *
Slide 7: For the next quarter there will be a continued corporate revival
…..for the next quarter there will be a continued corporate revival….. Europe consistent sample, occupancy on the books for April – June, as of 1 Apr 2024 2023 2024 49% 49% 45% 43% 42% 42% Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) Source: STR. © 2024 CoStar Group 7
Slide 8: Business ADR catching up on post-COVID leisure premium
…..resulting in business ADR catching up on post-COVID leisure premium Europe*, ADR, EUR & CC by day of week, March YTD 2022 - 2024 Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) 2019 % Change €140 +29% +25% +18% €130 +13% +19% +17% €120 +11% €110 -5% -1% €100 €90 €80 2022 2023 2024 *Exclu
Slide 9: Another record summer is likely to boost Europe higher again
…..and then another record summer is likely to boost Europe higher again Europe and U.S RevPAR, indexed to 2019, Jun 2022 – Mar 2024 U.S. Europe Europe business on 140 the books vs. STLY 130 Q2 2024 Q3 2024 120 110 + 2pp + 2pp 100 90 80 70 60 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 2023
Slide 10: UK&I is ahead on occupancy, but Southern Europe is close behind
UK&I is ahead on occupancy, but Southern Europe is close behind….. Occupancy, indexed to 2019, R12 March 2024 Regional UK & I Southern Europe Western Europe Headwinds 101 100 99 98 97 97 96 95 95 93 92 91 91 Ireland U.K. Italy Spain Portugal France Greece Switzerland BeNeLux Nordics Austria Germany
Slide 11: France, Italy, Greece, Portugal and Spain's ADR growth is well ahead
.....and France, Italy, Greece, Portugal and Spain’s ADR growth is well ahead ADR, indexed to 2019, R12 March 2024 US, Luxury and Leisure Rest of Europe 148 147 139 132 131 129 126 125 123 123 120 115 114 France Italy Greece Ireland Portugal Spain U.K. CEE BeNeLux Austria Nordics Switzerland Germany
Slide 12: Gateway cities occupancy recovery in line with country averages
Gateway cities occupancy recovery in line with country averages….. European markets, Occ % chg. to March R12 2023, March R12 2024 -4 Helsinki +4 Tallinn +9 Riga Edinburgh +5 Copenhagen +19 Moscow +7 +9 Vilnius Dublin -0 Amsterdam +5 +1 Berlin -3 Warsaw London +4 +5 Brussels Prague +14 +24 Kiev Paris
Slide 13: Their ADR growth is now matching/exceeding country averages
…..and their ADR growth is now matching/exceeding country averages European markets, ADR (LC), Change % to March R12 2023, March R12 2024 +2 Helsinki +8 Tallinn +6 Riga Edinburgh +16 Copenhagen +26 Moscow +4 +17 Vilnius Dublin +2 Amsterdam +9 +5 Berlin +10 Warsaw London +5 +12 Brussels Prague +14 +1
Slide 14: Luxury and Economy continue to lead, but all classes remain ahead
Luxury and Economy continue to lead, but all classes remain ahead Europe*, RevPAR (EUR, CC) indexed to 2019, Full Year 2019 - 2023 2020 2021 2022 2023 140 120 100 80 60 40 20 0 Luxury Class Upper Upscale Class Upscale Class Upper Midscale Midscale Class Economy Class All Class *Excluding Turkey Sour
Slide 15: Looking forward; luxury and economy still looking strong
Looking forward; luxury and economy still looking strong European cities*, Consistent sample, occupancy on the books April – June, as of 1 Apr 2024 Q2 occupancy on the books Ppts difference to 2023 60% +3% +1% +0% +2% -1% 50% +1% 40% 30% 20% 10% 0% Luxury Upper Upscale Upscale Upper Midscale Midscal
Slide 16: Who said forecasting was difficult – travel patterns repeat themselves
Who said forecasting was difficult – travel patterns repeat themselves Europe, Occupancy week over week percentage point difference, 2017 and 2023 2017 2023 15 10 5 0 -5 -10 -15 -20 -25 jan feb mar apr maj jun jul aug sep okt nov dec Source: STR. © 2024 CoStar Group 16
Slide 17: ... and again in 2024
… and again in 2024 Europe, Occupancy week over week percentage point difference, 2018/19 and 2024 2018/2019 2024 10 5 0 -5 -10 -15 14-Jan 14-Feb 14-Mar 14-Apr 14-May 14-Jun 14-Jul 14-Aug 14-Sep 14-Oct 14-Nov 14-Dec Source: STR. © 2024 CoStar Group 17
Slide 18: German occupancy continues to move ahead year on year
German occupancy continues to move ahead year on year Germany Occupancy % R7, 2019, 2022 - 2024 2019 2022 2023 2024 90 80 70 60 50 40 30 20 10 0 jan feb mar apr maj jun jul aug sep okt nov dec Source: STR. © 2024 CoStar Group 18
Slide 19: With ADR also continuing to move ahead
With ADR also continuing to move ahead Germany ADR R7, 2019, 2022 - 2024 2019 2022 2023 2024 € 170 € 150 € 130 € 110 € 90 € 70 € 50 € 30 jan feb mar apr maj jun jul aug sep okt nov dec Source: STR. © 2024 CoStar Group 19
Slide 20: Looking forward, matchday demand high for the Euros this summer
Looking forward, matchday demand high for the Euros this summer Occ on the books, Euros group stages (14 Jun – 26 Jun 2024) as of 15 April 2024 Euros match date 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Berlin Leipzig Hamburg Dusseldorf Cologne Frankfurt Stuttgart Munich Source: STR. © 2024 CoStar Grou
Slide 21: Europe RevPAR growth driven by occupancy in the long run
Europe RevPAR growth driven by occ in the long run European markets*, KPI YoY % change, EUR, 2024F – 2028F Occ ADR (EUR) RevPAR (EUR) 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 2024 2025 2026 2027 2028 *Aggregated performance of Amsterdam,Athens,Barcelona,Belfast,Berlin,Birmingham,Brussels,Budapest,Cologne,Du
Slide 22: Thank you!
Thank you! Thomas Emanuel temanuel@str.com Source: 2023 STR, LLC / STR Global, Ltd. trading as "STR". © CoStar Group. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR is strictly prohibited. Any such reproduction shall specifically cre