Slide 1: European Hotel Performance Update
European Hotel Performance Update Pandox Earnings Call 8th February 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 f
Slide 2: Strong growth on 2022 occupancy levels
Strong growth on 2022 occupancy levels Occupancy (Std), Full Year 2023 and YTD % change to 2022 Europe North America Mainland China 69% 63% 8% 65% 1% 34% Middle East Northern Africa Central America Asia (excl. Mainland China) 67% 59% 66% 60% 6% 17% 9% 8% Australia & Oceania 59% 59% 69% 2% 11% 9% Sou
Slide 3: European hotel demand has recovered to 2019 levels
European hotel demand has recovered to 2019 levels Europe demand indexed to 2019, Jan 2022 – Dec 2023 120 101 100 80 60 40 20 0 Source: STR. © 2024 CoStar Group 3
Slide 4: Tipping occupancy closer to a full recovery
Tipping occupancy closer to a full recovery Occupancy (Std), Full Year 2023 and % change to 2019 Europe North America Mainland China 69% 63% -4% 65% -4% -3% Middle East Northern Africa Central America Asia (excl. Mainland China) 67% 59% 66% 60% 2% -7% -4% 7% Australia & Oceania 59% 59% 69% 0% 0% -6%
Slide 5: UK&I booming with Southern Europe hot on its tail
UK&I booming with Southern Europe hot on its tail Occupancy, indexed to 2019, Full Year 2023 120 Regional UK & I Southern Europe Western Europe Headwinds 102 100 99 100 97 97 97 96 95 94 93 91 91 91 88 80 60 40 20 0 Ireland United Italy France Spain Greece Portugal Switzerland Benelux Nordics Austri
Slide 6: 2023 was a fantastic year for European markets
2023 was a fantastic year for European markets….. European markets, Occupancy (Std), YoY % change, FY 2023 +6 Helsinki +10 Tallinn +15 Riga Edinburgh +8 Copenhagen +17 Moscow +13 +14 Vilnius Dublin +6 Amsterdam +17 +8 Berlin +1 Warsaw London +9 +14 Brussels Prague +20 +18 Kiev Paris +4 Vienna +18 Zu
Slide 7: However most remain slightly behind 2019
…..however most remain slightly behind 2019 European markets, Occupancy (Std), % change to 2019, FY 2023 -22 Helsinki -6 Tallinn -10 Riga Edinburgh +1 Copenhagen -8 Moscow -13 +10 Vilnius Dublin -0 Amsterdam -8 -10 Berlin +1 Warsaw London -4 -7 Brussels -9 Prague -49 Kiev Paris -1 Vienna -10 Zurich
Slide 8: European occupancy levels up by 8%, and ADR up by 9%
European occupancy levels up by 8%, and ADR up by 9% ADR (USD & CC), Full Year 2023 and % change to 2022 Europe North America Mainland China 155 158 9% 65 4% 14% Middle East Northern Africa Central America Asia (excl. Mainland China) 169 122 128 160 -1% 23% 34% -2% Australia & Oceania 99 137 171 18%
Slide 9: So ADR remains well ahead of 2019 levels
So ADR remains well ahead of 2019 levels ADR (USD & CC), FY 2023 and % change to 2019 Europe North America Mainland China 155 158 26% 65 20% 4% Middle East Northern Africa Central America Asia (excl. Mainland China) 169 122 128 160 20% 21% 82% 25% Australia & Oceania 99 137 171 41% 36% 27% South Ame
Slide 10: Real ADR is ahead of 2019 on a pan European basis
Real ADR is ahead of 2019 on a pan European basis Europe* (EUR, CC), ADR indexed to 2019, Jan – Dec 2023 Real ADR Index (EU 27 HICP) Nominal ADR Index 130 134 125 129 129 127 128 127 120 120 122 115 104 107 108 111 107 105 106 105 96 100 100 101 jan-23 feb-23 mar-23 apr-23 maj-23 jun-23 jul-23 aug-2
Slide 11: Countries with inbound US travel reaped the rewards
Countries with inbound US travel reaped the rewards ADR, indexed to 2019, Full Year 2023 Currency devaluation 180 US and Leisure Rest of Europe 168 160 146 141 137 140 132 130 126 126 123 122 121 120 115 114 111 100 80 60 40 20 0 Turkey Italy France Greece Ireland Portugal Spain United Benelux Austr
Slide 12: Gateway cities show eye watering increases vs 2019 in many cases
Gateway cities show eye watering increases vs 2019 in many cases European markets, ADR (LC), % change to 2019, FY 2023 -3 Helsinki -3 Tallinn +16 Riga Edinburgh +44 Copenhagen +23 Moscow +5 +25 Vilnius Dublin +26 Amsterdam +22 +24 Berlin +31 Warsaw London +27 +24 Brussels Prague +14 +56 Kiev Paris +
Slide 13: ADR growth still strong and 'accepted' in key markets
ADR growth still strong and ‘accepted’ in key markets European markets, ADR (LC), YoY % change, FY 2023 +2 Helsinki +10 Tallinn +9 Riga Edinburgh +16 Copenhagen +18 Moscow +5 +21 Vilnius Dublin +6 Amsterdam +11 +8 Berlin +15 Warsaw London +8 +16 Brussels Prague +11 +7 Kiev Paris +14 Vienna +12 Zuric
Slide 14: RevPAR growth is by no means limited to specific classes
RevPAR growth is by no means limited to specific classes Europe* (EUR, CC), KPI % chg. YoY, Full Year 2023 Occupancy ADR RevPAR 25% 20% 20% 19% 18% 17% 15% 15% 14% 10% 5% 0% Luxury Class Upper Upscale Class Upscale Class Upper Midscale Class Midscale Class Economy Class *Excluding Turkey Source: STR
Slide 15: Since 2019, luxury and economy have led the way
Since 2019, luxury and economy have led the way 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 Source: STR. © 2024 Co
Slide 16: Interestingly European RevPAR is significantly ahead of U.S.
Interestingly European RevPAR is significantly ahead of U.S…… U.S. & Eurozone RevPAR, indexed to 2019, Q1 2020 – Q4 2023 United States Eurozone 130 120 110 100 90 80 70 60 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Source: STR. © 2024 CoStar Group 16
Slide 17: Which was clearly driven by summer leisure demand
…..which was clearly driven by summer leisure demand Europe, GCC and U.S RevPAR, indexed to 2019, Jan 2022 – Dec 2023 GCC U.S. Europe 160 150 140 130 120 110 100 90 80 70 60 Source: STR. © 2024 CoStar Group 17
Slide 18: Most cities should see occupancy continue to grow
Most cities should see occupancy continue to grow Occupancy on the books, percentage point change for next 90 days vs. STLY as of 22 Jan 2024 Edinburgh +5 Copenhagen +9 Moscow +5 +6 Vilnius Dublin -1 Amsterdam +3 +1 Berlin 0 Warsaw London +3 +7 Brussels Prague +9 +1 Kiev Paris +1 Vienna +1 Zurich +3
Slide 19: German occupancy still slightly behind 2019, but the gap is closing
German occupancy still slightly behind 2019, but the gap is closing..... Germany Occupancy % R7, 2019, 2022 & 2023 2019 2022 2023 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 19
Slide 20: Whilst rates are well ahead
…..whilst rates are well ahead…. Germany ADR R7, 2019, 2022 & 2023 2019 2022 2023 € 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 20
Slide 21: With demand driven most strongly by leisure markets
.....with demand driven most strongly by leisure markets..... Occupancy, Full Year, 2019 & 2023 2019 2022 2023 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: STR. © 2024 CoStar Group 21
Slide 22: Whilst ADR gains can be seen everywhere
…..whilst ADR gains can be seen everywhere ADR (EUR), Full Year, 2019 & 2023 2019 2022 2023 140 € 120 € 100 € 80 € 60 € 40 € 20 € 0€ Source: STR. © 2024 CoStar Group 22
Slide 23: Business on the books for most is improved on 2023
Business on the books for most is improved on 2023..... German markets, Average occupancy on the books for the next 90 days as at 22nd Jan 2024 and vs STLY Hamburg 43%+10% Berlin 37% +1% Dusseldorf 28% -3% Cologne 38% +2% Leipzig 32% -1% Frankfurt 29% +4% Stuttgart 32%+11% Next 90 BoB average Münche
Slide 24: With a regular Messe calendar and the Euros helping
…..with a regular Messe calendar and the Euros helping Occupancy on the books for the next 365 days as at 01 January 2024 Frankfurt Rhine-Main Dusseldorf Cologne Hamburg Ambiente 80% 70% Cologne Carnival ProWein 60% WIRE & TUBE Drupa Anuga Harbour FoodTec 50% Birthday Cold Play Automechanika Concert
Slide 25: Forecast for growth to continue, driven by occupancy
Forecast for growth to continue, driven by occupancy European markets*, KPI YoY % change, Q4 2023 – Q1 2025 Occ ADR (EUR) RevPAR (EUR) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 *Aggregated performance of Amsterdam,Barcelona,Belfast,Berlin,Birmingham,Brussels,Budap
Slide 26: Thank you!
Thank you! Thomas Emanuel temanuel@str.com Source: 2024 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