Slide 1: European Hotel Performance Update
European Hotel Performance Update 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 from error, omission or misstatement. CoStar Group and STR disclaim any a
Slide 2: YTD March 2023 occupancy is on par with same time 2019
YTD March 2023 occupancy is on par with same time 2019 Occupancy (Std), March YTD 2023 and YTD % change to 2019 Europe North America Mainland China 60% 60% -5% 59% -3% Middle East -3% Northern Africa Central America Asia (excl. Mainland China) 71% 54% 65% 66% 0% -10% -9% 7% Australia & Oceania 58% 5
Slide 3: Germany, Belgium, Netherlands and France recovery lagging
Germany, Belgium, Netherlands and France recovery lagging Occ R28 (Std) indexed to 2019, January 2023 – April 2023 115 110 105 100 95 90 85 80 75 70 01-Jan 08-Jan 15-Jan 22-Jan 29-Jan 05-Feb 12-Feb 19-Feb 26-Feb 05-Mar 12-Mar 19-Mar 26-Mar 02-Apr Source: STR. © 2023 CoStar Group 3
Slide 4: Gateway city performance broadly mirroring country trends
Gateway city performance broadly mirroring country trends European markets, Occ (Std), March YTD 2023 indexed to 2019 Under 80 80 - 89 90 – 100 Over 100 Source: STR. © 2023 CoStar Group 4
Slide 5: Germany had a tough Q1 last year too – but did recover
Germany had a tough Q1 last year too – but did recover Germany, R7 occ % change to 2019, Jan - April 2023 & 2022 2023 2022 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% 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 5 Source: S
Slide 6: ADR growth in most regions is ahead of inflation
ADR growth in most regions is ahead of inflation ADR (USD & CC), March YTD 2023 and YTD % change to 2019 Europe North America Mainland China 130 154 21% 68 19% Middle East 1% Northern Africa Central America Asia (excl. Mainland China) 186 118 127 178 27% 16% 81% 20% Australia & Oceania 105 134 175 5
Slide 7: ADR growth closely correlated to occupancy recovery
ADR growth closely correlated to occupancy recovery ADR R28 (LC) indexed to 2019, January 2023 – April 2023 150 140 130 120 110 100 90 80 01-Jan 08-Jan 15-Jan 22-Jan 29-Jan 05-Feb 12-Feb 19-Feb 26-Feb 05-Mar 12-Mar 19-Mar 26-Mar 02-Apr Source: STR. © 2023 CoStar Group 7
Slide 8: Europe luxury class ADR tops the charts, despite occupancy
Europe luxury class ADR tops the charts, despite occupancy Europe ADR EUR (CC), indexed to 2019, March YTD 2023 160 ADR 2023 YTD index 140 120 100 80 143 60 121 116 113 118 119 40 20 0 Luxury Class Upper Upscale Class Upscale Class Upper Midscale Class Midscale Class Economy Class Source: STR. © 202
Slide 9: Outlook
Outlook Source: STR. © 2023 CoStar Group 9
Slide 10: Room demand is still below broader economic recovery
0 Room demand is still below broader economic recovery Source: STR. © 2023 CoStar Group 10
Slide 11: Supply growth inline with historic trends but is dipping
Supply growth inline with historic trends but is dipping Europe, New Openings & Pipeline (Europe Completion & Delay Rates Applied), 2011-25 Forecast c.66K rooms p.a. c. 67K rooms p.a. 120,000 100,000 80,000 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 12: 2023 arrivals are expected to improve on 2022
2023 arrivals are expected to improve on 2022 Europe International Visitor Arrivals (000s) 1,600,000 Visitor Arrivals 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 (Forecast) (Forecast) Source: STR. © 2023 CoStar Group 12
Slide 13: Business on books suggests Q2 2023 will be stronger than PY
Business on books suggests Q2 2023 will be stronger than PY Average Occ on the books for the next 90 days as at 17 April 2023 and vs Occ on the books STLY Average BoB next 90 days vs STLY Rome 64% +23% Lisbon 52% +17% Amsterdam 55% +12% Madrid 43% +11% Brussels 41% +10% London 48% +9% Paris 50% +6%
Slide 14: Summary
Summary Demand drivers still offsetting broader economic concerns: • Favourable FX for dollarized international travellers • Continued business travel recovery • Increasing airlift ADR gains holding • Significant growth in the prior year due to pent-up demand • Despite pent-up receding, gains have h