Slide 1: European Hotel Performance Update
European Hotel Performance Update Pandox Earnings Call 12th July 2024 Alex Robinson | 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 from error,
Slide 2: Global demand for hotels exceeding 2019 for each of the last 17 months
20 40 60 80 100 120 0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 Global demand indexed to 2019, Jan 2022 – May 2024 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 Global demand for hotels exceed
Slide 3: …however there was a slight slowdown to start the year
…however there was a slight slowdown to start the year Global demand YoY % chg., Jan 2023 – May 2024 30% 25% 20% 15% 10% 5% 0% -5% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Source: STR. © 2024 CoStar Group 3
Slide 4: But a recuperation in April and May helped by the US turning positive
But a recuperation in April and May helped by the US turning positive Total U.S., Demand % change. June 2023 – May 2024 Demand % Chg. Supply % Chg. 3% 2% 1% 0% -1% -2% -3% Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Source: STR. © 2024 CoStar Group
Slide 5: Global occupancies are almost back, but take new supply into account
Global occupancies are almost back, but take new supply into account Occupancy, YTD May 2024 and % change to 2023 Europe North America Mainland China 66% 156 61% 158 143 2% 63% 69 151 0% Middle East -1% 57 Northern Africa Central America Asia (excl. Mainland China) 71% 165 67% 126 55% 121 66% 156 16
Slide 6: Europe may appear to be decelerating, however…
Europe may appear to be decelerating, however….. Europe*, EUR & CC, KPI % change YoY, Jun 2023 – May 2024 Occupancy % Chg. ADR % Chg. RevPAR % Chg. 18% 16% 16% 14% 12% 10% 9% 9% 9% 8% 8% 8% 7% 6% 6% 6% 4% 4% 4% 2% 2% 0% Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May
Slide 7: …for the next quarter there is positive momentum for all stay patterns…
…..for the next quarter there is positive momentum for all stay patterns…. Europe consistent sample, occupancy on the books for July - Sept, as of 1 July 2024 2023 2024 50% 48% 46% 45% 45% 44% Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) Source: STR. © 2024 CoStar Group
Slide 8: …resulting in 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, May YTD 2022 - 2024 Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) 2019 % Change €150 31% 29% 22% €140 17% 24% 21% 14% €130 €120 6% 1% €110 €100 €90 €80 2022 2023 2024 *Excluding T
Slide 9: …and another record summer is likely to boost Europe higher again
…..and another record summer is likely to boost Europe higher again Europe and U.S RevPAR, indexed to 2019, Jan 2022 – May 2024 Europe United States 140 130 120 110 Europe business on the 100 books vs. STLY 90 Jul- Aug Sept - Oct 80 2024 2024 70 + 1pp + 1pp 60 Jun-22 Jun-23 Feb-22 Aug-22 Sep-22 Dec-
Slide 10: UK&I still ahead on Occ, with Spain and Italy remaining leaders in the Med
UK&I still ahead on Occ, with Spain and Italy remaining leaders in the Med Occupancy, indexed to 2019, R12 May 2024 UK & I Southern Europe Western Europe Regional Headwinds 101 100 99 98 97 97 97 95 95 94 93 92 92 Ireland United Italy Spain Greece France Portugal Switzerland BeNeLux Nordics CEE Germ
Slide 11: Growth in rate correlated to strong international leisure demand
Growth in rate correlated to strong international leisure demand ADR, indexed to 2019, R12 May 2024 US, Luxury and Leisure Rest of Europe 149 143 140 133 131 131 127 126 123 123 121 116 114 Italy France Greece Portugal Spain Ireland CEE United Austria BeNeLux Nordics Switzerland Germany Kingdom YoY
Slide 12: Occupancy gains have started to slow in some major markets…
Occupancy gains have started to slow in some major markets… European markets, Occ, YoY % change, May YTD 2024 -2 Helsinki -0 Tallinn +5 Riga Edinburgh +3 Copenhagen +14 Moscow +5 +8 Vilnius Dublin -1 Amsterdam +0 +3 Berlin +0 Warsaw London +1 +2 Brussels Prague +13 Kiev +11 Paris -0 Vienna +3 Zurich
Slide 13: …concentrated in areas with supply growth and higher rate growth
… concentrated in areas with supply growth and higher rate growth European markets, ADR (LC), YoY % change, May YTD 2024 -2 Helsinki +2 Tallinn -13 Riga Edinburgh +9 Copenhagen +36 Moscow -0 -2 Vilnius Dublin -6 Amsterdam -3 +3 Berlin -0 Warsaw London -2 +2 Brussels +14 Prague +1 Kiev Paris +4 Vienn
Slide 14: Luxury and Economy maintain their lead, but all classes ahead of 2019
Luxury and Economy maintain their lead, but all classes ahead of 2019 Europe*, RevPAR (EUR, CC) indexed to 2019, Full Year 2019 – 2023 & 2024 YTD 2020 2021 2022 2023 2024 YTD 160 140 120 100 80 60 40 20 0 Luxury Class Upper Upscale Class Upscale Class Upper Midscale Midscale Class Economy Class All
Slide 15: Summer business on the books; luxury and economy still look strongest
Summer business on the books; luxury and economy still look strongest Europe, Consistent sample, occupancy on the books July – September, as of 1 July 2024 Q2 occupancy on the books Ppts difference to 2023 52% +1% 50% 48% +1% +3% 46% +1% +1% 44% +3% 42% 40% 38% Luxury Class Upper Upscale Class Upsca
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 May Jun Jul Aug Sep Oct Nov Dec Source: STR. © 2024 CoStar Group 16
Slide 17: …and that remains true for the first half of 2024
… and that remains true for the first half of 2024 Europe, Occupancy week over week percentage point difference, 2019 and 2024 2019 2024 15 10 5 0 -5 -10 -15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 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 May Jun Jul Aug Sep Oct Nov Dec Source: STR. © 2024 CoStar Group 18
Slide 19: ADR also with positive momentum, boosted by Euro 2024
ADR also with positive momentum, boosted by Euro 2024 Germany ADR R7, 2019, 2022 - 2024 2019 2022 2023 2024 € 170 € 150 € 130 € 110 € 90 € 70 € 50 € 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: STR. © 2024 CoStar Group 19
Slide 20: Compression during the Olympics with displacement in the lead up
Compression during the Olympics with displacement in the lead up Paris, Occupancy on the books TY & STLY for the next 90 days as of 01 July 2024 Occupancy on the books This year STLY for the Olympics: 79% 100% vs STLY +31ppts 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Slide 21: Europe RevPAR growth driven by occ in the long run
Europe RevPAR growth driven by occ in the long run European markets*, KPI YoY % change, 2024-2028 Occ ADR (EUR) RevPAR (EUR) 6% 5% 4% 3% 2% 1% 0% 2024 2025 2026 2027 2028 *Aggregated performance of Amsterdam,Barcelona,Belfast,Berlin,Birmingham,Brussels,Budapest,Cologne,Dublin, Dusseldorf, Edinburgh,
Slide 22: Thank you!
Thank you! Alex Robinson arobinson2@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 cr