Slide 1: European Hotel Performance Update
European Hotel Performance Update Q4 Pandox Earnings Call 6th February 2025 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 fre
Slide 2: Globally, demand ahead of 2019 levels for 24 consecutive months
100 120 0 20 40 60 80 Jan-2022 Feb-2022 Mar-2022 Apr-2022 May-2022 Jun-2022 Jul-2022 Aug-2022 Sep-2022 Oct-2022 Nov-2022 Dec-2022 Jan-2023 Feb-2023 Mar-2023 Apr-2023 May-2023 Jun-2023 Global Demand indexed to 2019, Jan 2022 – Dec 2024 Jul-2023 Aug-2023 Sep-2023 Oct-2023 Nov-2023 Dec-2023 Jan-2024 Fe
Slide 3: …with demand continuing to grow year on year also
…..with demand continuing to grow year on year also….. Global demand YoY % chg., January 2023 – December 2024 30% 25% 20% 15% 10% 5% 0% -5% Source: STR. © 2024 CoStar Group 3
Slide 4: …leading to continued occupancy increases
…..leading to continued occupancy increases….. Occupancy, FY 2024 and % change to 2023 Excluding; Argentina, Lebanon, Turkey, Venezuela Source: STR. © 2024 CoStar Group 4
Slide 5: …along with ADR growth
….along with ADR growth ADR, USD & CC, FY 2024 and % change to 2023 Excluding; Argentina, Lebanon, Turkey, Venezuela Source: STR. © 2024 CoStar Group 5
Slide 6: ADR growth consistent, it has been a solid year for Europe
ADR growth consistent, it has been a solid year for Europe Europe, EUR & CC, KPI % change YoY, Jan 2024 – Dec 2024 Occ % Chg. ADR % Chg. RevPAR % Chg. 10% 9% 9% 8% 8% 7% 7% 7% 7% 6% 6% 5% 5% 5% 5% 4% 5% 4% 3% 3% 2% 1% 0% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 De
Slide 7: Bifurcation – present in the US, now in Europe, albeit to a lesser extent
Bifurcation – present in the US, now in Europe, albeit to a lesser extent Europe, EUR & CC, KPI % change YoY, December YTD 2024 Occ % chg. ADR % chg. RevPAR % chg. 10% 8% 8,1% 6% 6,4% 5,9% 5,2% 4% 3,9% 2% 0% 0,4% -2% Luxury Class Upper Upscale Class Upscale Class Upper Midscale Class Midscale Class
Slide 8: Return to 2019 occupancies led by the PIIGS
Return to 2019 occupancies led by the PIIGS Occupancy, indexed to 2019, Full Year 2024 UK & I Southern Europe Rest of Europe 102 100 99 99 98 I 98 96 96 96 96 95 S I G P 93 93 Ireland United Spain Italy Greece Portugal Switzerland Nordics Benelux CEE France Germany Austria Kingdom YoY % Chg. 0% 1% 2
Slide 9: Most gateway cities still enjoying occupancy growth, albeit low single digits
Most gateway cities still enjoying occupancy growth, albeit low single digits European markets, Occupancy, YoY % change, FY 2024 Source: STR. © 2024 CoStar Group 9
Slide 10: ADR growth in Europe is led by the Mediterranean markets
ADR growth in Europe is led by the Mediterranean markets ADR, indexed to 2019, Full Year 2024 Southern Europe Rest of Europe 156 152 149 G I 138 138 132 129 128 128 S P I 122 121 118 117 Greece Italy France Spain Portugal Ireland CEE United Austria Benelux Nordics Germany Switzerland Kingdom YoY % C
Slide 11: The north south divide is evident when looking at ADR in 2024
The north south divide is evident when looking at ADR in 2024 European markets, ADR (LC), YoY % change, FY 2024 Source: STR. © 2024 CoStar Group 11
Slide 12: Supply changes, sluggish occupancy growth comes as no surprise
Supply changes, sluggish occupancy growth comes as no surprise Europe, Supply, % change YoY, Full Year 2018, 2019, 2023, & 2024 2018 2019 2023 2024 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% Luxury Class Upper Upscale Class Upscale Class Upper Midscale Class Midscale Class Economy Class Source: STR. © 2024 CoSta
Slide 13: There is a great deal of variance in new supply since COVID
There is a great deal of variance in new supply since COVID….. Supply % change 2019 vs. 2024, major European countries Italy Czechia Greece Spain United Kingdom France Turkiye Netherlands Ireland Sweden Switzerland Belgium Portugal Germany Austria Poland 0% 2% 4% 6% 8% 10% 12% 14% Source: STR. © 202
Slide 14: …YoY, we see that trend continue
…..YoY, we see that trend continue Supply % change 2023 vs. 2024, major European countries 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% -0,5% -1,0% Source: STR. © 2024 CoStar Group 14
Slide 15: How might supply change? UK, Germany, & Spain have largest pipelines
How might supply change? UK, Germany, & Spain have largest pipelines European countries, Rooms in the active pipeline, January 2025 120 000 100 000 80 000 60 000 40 000 20 000 0 United Germany Spain Turkiye Poland Ireland France Italy Portugal Austria Georgia Israel Romania Greece Kingdom Source: ST
Slide 16: So, longer term pipeline is more robust, especially in the east
So, longer term pipeline is more robust, especially in the east….. Europe, planning and final planning pipeline rooms as % of existing supply, Dec 2024 60% 50% 40% 30% 20% 10% 0% Source: STR. © 2024 CoStar Group 16
Slide 17: …but in construction shows limited supply growth to continue
…..but in construction shows limited supply growth to continue Europe, rooms in construction as % of existing supply, Dec 2024 180% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: STR. © 2024 CoStar Group 17
Slide 18: Looking forward, missing events impacting ADR in Q3
Looking forward, missing events impacting ADR in Q3 European markets*, YoY % change, Q1 2025 – Q1 2026, November 2024 forecast Occ ADR (EUR) RevPAR (EUR) 5% 4% 3% 2% 1% 0% -1% -2% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 *Aggregated performance of Amsterdam,Barcelona,Belfast,Berlin,Birmingham,Brussel
Slide 19: Steady but unspectacular growth in the short to medium term
Steady but unspectacular growth in the short to medium term European markets*, KPI YoY % change, 2025-2028, November 2024 forecast Occ ADR (EUR) RevPAR (EUR) 3% 2% 1% 0% 2025 2026 2027 2028 *Aggregated performance of Amsterdam,Barcelona,Belfast,Berlin,Birmingham,Brussels,Budapest,Cologne,Dublin, Dus
Slide 20: Thank you!
Thank you! Thomas Emanuel Senior Director 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