Slide 1: Hotel performance: holding onto gains, facing off economic pains?
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Slide 2: Global overview
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Slide 3: Occupancy only slightly behind in the West
Occupancy only slightly behind in the West Occupancy (standard) and occupancy % change to 2019, September 2022 Europe North America Mainland China 77% 67% -5% 51% 0% Middle East -18% Northern Africa Central America Asia (excl. Mainland China) 62% 63% 61% 50% 0% -14% -6% 0% Australia & Oceania 60% 59
Slide 4: Whilst ADR roars ahead, except across Asia
Whilst ADR roars ahead, except across Asia ADR % change to 2019, Constant Currency, September 2022 Europe North America Mainland China 22% 17% 17% -14% 13% Middle East -14% Northern Africa Central America Asia (excl. Mainland China) 12% 41% 3% 24% 13% -8% 30% 22% Australia & Oceania 42% 17% 30% 24%
Slide 5: Which is driving RevPAR ahead YTD in those same regions
Which is driving RevPAR ahead YTD in those same regions RevPAR (standard), % change to 2019, Constant Currency, September 2022 Europe North America Mainland China 16% 17% 3% -30% 7% Middle East -36% Northern Africa Central America Asia (excl. Mainland China) 11% 32% -11% 24% 7% -30% 13% 19% Australi
Slide 6: Top performing markets capitalising on regional travel
Top performing markets capitalising on regional travel Occupancy (STD), September YTD 2022, indexed to 2019 Under 50 50- 80 80 – 100 Over 100 Source: STR. © 2022 CoStar Group 6
Slide 7: European overview
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Slide 8: The summer has been particularly kind to Europe
The summer has been particularly kind to Europe Occupancy R28 (Std) indexed to 2019, June 2021 to October 2022 Austria Belgium France Germany Greece Ireland Italy Netherlands Poland Portugal 160 Russia Spain Switzerland Turkey United Kingdom Index 140 1 104 120 2 100 3 100 100 80 13 91 60 14 89 15 8
Slide 9: Recovery maintained despite the end of summer… business is back
Recovery maintained despite the end of summer… business is back Europe, occupancy % change to 2019, weeks ending 5 Jun – 16 Oct 2022 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% -14% -16% 5 Jun 16 Oct 5 Jun 16 Oct Weekday Weekend Source: STR. © 2022 CoStar Group 9
Slide 10: Although group and events demand not fully back yet
Although group and events demand not fully back yet Europe, segmentation Demand % change to 2019, weeks ending 5 Jun – 16 Oct 2022 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% 5 Jun 16 Oct 5 Jun 16 Oct Group Demand Transient Demand Source: STR. © 2022 CoStar Group 10
Slide 11: Cities were indexing 90% recovered in July
Cities were indexing 90% recovered in July European major markets, Occupancy (STD), July 2022 indexed to 2019 Under 50 50- 80 80 – 100 Over 100 Source: STR. © 2022 CoStar Group 11
Slide 12: … BoB suggested recovery would maintain given later corporate pick-up
… BoB suggested recovery would maintain given later corporate pick-up Business on the books pace between (Jun, Jul, Aug) and (Sept, Oct, Nov) -2% St. Petersburg Edinburgh -18% +3% Moscow Dublin -6% Amsterdam -4% -8% -3% Berlin London Brussels -4% +5% Prague -3% Kiev Zurich Vienna -5% -1% Paris -9% -
Slide 13: … and that is what has materialised
… and that is what has materialised European major markets, Occupancy (STD), September 2022 indexed to 2019 Under 50 50- 80 80 – 100 Over 100 Source: STR. © 2022 CoStar Group
Slide 14: Real ADR has shown consistent recovery since June 2022
100 110 120 130 140 80 90 1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb 19-Feb 26-Feb 5-Mar 12-Mar 19-Mar 26-Mar 2-Apr 9-Apr 16-Apr 23-Apr 30-Apr 7-May Real ADR Index 14-May 21-May 28-May 4-Jun 11-Jun 18-Jun 25-Jun Nominal ADR Index 2-Jul 9-Jul 16-Jul EU 27 Countries, Weekly ADR (Euros) indexed to 2
Slide 15: Country ADR consistently ahead, albeit with variances
Country ADR consistently ahead, albeit with variances ADR R28 Local Currency indexed to 2019, June 2021 to October 2022 Austria Belgium France Germany Greece Ireland Italy Netherlands Poland Portugal 200 Russia Spain Switzerland Turkey(EUR) United Kingdom Index 180 1 170 160 2 139 140 3 136 120 100
Slide 16: It is a sea of green across the major cities too
It is a sea of green across the major cities too European major markets, ADR (Local Currency), September YTD 2022 indexed to 2019 Under 50 50- 80 80 – 100 Over 100 Source: STR. © 2022 CoStar Group
Slide 17: Summer performance is strong compared to pre-pandemic…
Summer performance is strong compared to pre-pandemic… European Cities, ADR (Local Currency), Jun, Jul, Aug 2022 indexed to Jun, Jul, Aug 2019 Under 50 (EUR) 50- 80 80 – 100 Over 100 Source: STR. © 2022 CoStar Group 17
Slide 18: ADR recovery takes no heed of occupancy
ADR recovery takes no heed of occupancy Europe Occ (STD) and ADR (Euros) indexed to 2019, September YTD 2022 160 Occ index ADR index 140 120 100 80 146 60 120 114 114 113 109 98 40 84 84 86 87 87 20 0 Luxury Class Upper Upscale Class Upscale Class Upper Midscale Class Midscale Class Economy Class So
Slide 19: Europe Outlook
Europe Outlook Source: STR. © 2022 CoStar Group
Slide 20: Across major markets, business on the books is much improved
Across major markets, business on the books is much improved Occupancy on the books TY & STLY for the next 90 days as at 17 October 2022 London Paris Brussels This year STLY 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0%
Slide 21: Major city occupancies are catching up to regional markets
Major city occupancies are catching up to regional markets R28 occ, % change to 2019, 2022 YTD London Regional UK 10% 0% -10% -20% -30% -40% -50% -60% 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct Source: STR. © 2022 CoStar Group 2121
Slide 22: London ADR recovery matching and set to accelerate past regions
London ADR recovery matching and set to accelerate past regions R28 ADR (GBP), % change to 2019, 2022 YTD London Regional UK 40% 30% 20% 10% 0% -10% -20% 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct Source: STR. © 2022 CoStar Group 2222
Slide 23: Business on the books shows we are returning to normal
Business on the books shows we are returning to normal – corporate travel has not changed forever Group demand is slowly coming back ADR growth which has been very strong is stabilising The worsening economic outlook represents a downside risk There are upsides from a strong dollar, pent-up business