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24 July 2017
© 2017 All Rights Reserved Proprietary and confidential – Further reproduction or distribution is prohibited
The Hotel Evolution Emerging lifestyle products and brands Alan Watts, Chief Operating Officer, AMEA
New Zealand in an up-cycle
© 2017. All rights reserved. Proprietary and confidential
International tourism contributes
$11.8 billion
Holiday arrivals up
14.1% Indian arrivals up
12.3%
USA arrivals up
29.6%
Australian arrivals up
7.6%
China, Japan and Germany
arrivals up
New supply is coming…
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
80.0%
82.0%
$80
$100
$120
$140
$160
$180
$200
2013 2014 2015 2016 May-17
Occupancy rate ADR RevPar
Source: TIA
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
2012 2013 2014 2015 2016
NZ Room Supply
Source: Stats.co.nz
Broad appeal brands will always have a home © 2017. All rights reserved. Proprietary and confidential But we need diversity to avoid contraction
Kimpton Hotel Palomar Phoenix
Lifestyle out pacing
2.9% 3.2%
4.0%
Upper Upscale Total Market Lifestyle
U.S. Rooms Demand CAGR, 2010-15
Launch Year
Hotel Count
1998 49
2007 16
2010 4
2010 4
2001 3
The rise of luxury lifestyle
“Experiential luxury accounts for almost 55% of total luxury spend worldwide, and has grown
50% faster than sales of luxury products.”
– Boston Consulting Group
“Consumers want to be one IN a million, not one OF a million.” – The NPD Group
“Forty-four percent of Chinese consumers said that they prefer experiential luxury such as spas and resorts rather than material items.”
– Mintel Research Group
A growing global trend
Boutique, lifestyle & niche
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The new traveller is defining the product
INDEPENDENT BOUTIQUES
CLUB CONCEPT
PRIVATE RESIDENCES
Neighborhood story
Wellness niche Luxury lifestyle
IHG’s evolving experiences
© 2017. All rights reserved. Proprietary and confidential
© 2017. All rights reserved. Proprietary and confidential
The challenge of boutique
“America’s Best Employer,” 2016
“Best Companies to Work For,” 2009, 2011-16
Bring the experience to life
© 2017. All rights reserved. Proprietary and confidential
Beware of Whales..
What we need to do, together
1. Invest in diversified hotel stock 2. Capture the evolving traveler market 3. Attract the right talent 4. Deliver an experience
Thank you
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