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© 2020 STR, LLC. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, LLC. or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.

What were the major stories in 2019?Alex Robinson, Senior Manager Industry Partners - STR

[email protected]

@STR_Data

© 2020 STR. All Rights Reserved.

1. Global Hotel MarketsA slowdown in the cycle?

2. Global Serviced Apartments performanceVaried growth across the sector

3. Deep dive UK Serviced Apartments MarketA premium over hotels?

4. Serviced Apartment PilotThe importance of room type

5. Pipeline & ForecastSupply in Barcelona and Madrid

Agenda


Global Performance


Middle East

Southern Africa

Northern Africa

+11.0%

Global RevPAR % ChangeUSD, Europe in EUR, Constant Currency, November 2019

Europe

Asia+0.6%

+2.8%

+2.2%

+7.4%

+0.9%

-5.2%-3.0%

Australia & Oceania

-1.8%

North America

Central America

South America excl. Venezuela


-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2002 2004 2006 2008 2010 2012 2014 2016 2018

Europe USA

US RevPAR a leading indicator for EuropeEurope –RevPAR % Change, Constant Currency, EUR, 2002 – November 2019


-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

OCC ADR RevPAR

A decade of growth not without ups and downsEurope – Occ, ADR and RevPAR % Change, Constant Currency, EUR, 2002 –November 2019


Global Serviced Apartment performance


Varied growth across global serviced apartment sectorServiced Apartments Performance – Occ, ADR & RevPAR % Chg, Local Currency – Nov 2019 YTD

6.2%

0.0% -1.0%

4.3%

-3.7%

-10.9%

-20%

-15%

-10%

-5%

0%

5%

10%

Singapore Germany UK Spain Australia UAE

Occupancy ADR RevPAR


$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Australia

Spain UAE

Germany UK

Singapore

ADR RevPAR Occupancy

Occupancy strong in key countries, Singapore and UK lead the way in ADRServiced Apartment Occupancy, ADR, RevPAR, Nov 2019 YTD, USD


United Kingdom Serviced Apartment performance


2019 has experienced growth slowdown, across hotels and serviced apartments UK – Serviced Apartments & Hotels, KPIs Actuals and % Change, GBP, Nov 2019 YTD

Occupancy ADR81.6% £130.17 £106.24

RevPAR-0.0% +0.7% +0.7%

Occupancy ADR78.2% £94.70 £74.07

RevPAR-0.3% +0.8% +0.5%

Serviced Apartments

Overall industry incl. hotels


Reasons for rate premium

Hotel

Studio Apartment

1 Bedroom Apartment

Size Higher rate for extra space

Geography City Centre, Tier 1 &2,

London centric

Class Upscale and above -unlike hotel Industry


A mixed picture for key UK markets, supply growth evident in manyUK – Key Cities Service Apartment RevPAR % Change, GBP, Nov 2019 YTD

13

London

Edinburgh

16

Total UK

-12

Manchester -11

Birmingham

3

3

M4 Corridor* -20

Total UK: -0.2%

Reg. UK: -2.5%

*M4 Corridor: Bracknell, Maidenhead, Newbury, Reading, Slough, Windsor & Wokingham

-3


London Serviced Apartment Pilot


Serviced Apartments: Pilot

2019, we conducted a pilot study in London with nine operators (76 properties) to validate our findings and ensure we are building the right solution for our clients.


Occupancy patterns consistent across all types of apartmentLondon, Serviced Apartments Occupancy, June 2018 to November 2019

50%

60%

70%

80%

90%

100%

Jun-18Jul-1

8

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19Jul-1

9

Aug-19

Sep-19

Oct-19

Nov-19

Studio 1 Bedroom 2 Bedroom Hotels

*The data shown in this slide is based on a sample of participants in the pilot program and may not reflect the entire market.


ADR very similar between hotels and 1-bedroom apartmentsLondon, Serviced Apartments ADR, Local Currency, June 2018 to November 2019

£80

£100

£120

£140

£160

£180

£200

£220

Jun-18Jul-1

8

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19Jul-1

9

Aug-19

Sep-19

Oct-19

Nov-19

Studio 1 Bedroom 2 Bedroom Hotels



Occupancy highest in 1 bedroom apartmentsLondon, Serviced Apartments & Hotels, Occupancy, ADR, RevPAR, Nov 2019 YTD

50%

60%

70%

80%

90%

100%

£0

£50

£100

£150

£200

£250

Studio 1BR 2BR Hotels

ADR RevPAR Occupancy

47% 43% 10%


Room type as % of total SA supply


ADR aligned on STR’s classification Upper Midscale – Upper UpscaleLondon, September 2019 YTD, ADR, GBP

£0

£50

£100

£150

£200

£250

£300

£350

Serviced Apartments Hotels

Studio1 Bedroom

2 Bedroom

Upper Midscale

Upscale

Upper Upscale

Luxury


Pipeline & Forecast


110%

405%

5%

189%

143%

45%

0 10 20 30 40 50 60 70 80 90

Saudi Arabia

Ireland

Australia

United Arab Emirates

Germany

United Kingdom

Thousands

Existing Pipeline Pipeline % Existing

Serviced Apartments Pipeline – Top 6 countries December 2019 report, Pipeline by Room Count


STR’s forecast overview for full year 2020Forecast – November 2019 Edition

Paris

Dubai Madrid

Amsterdam

BrusselsRecovery Continues

Steady Growth

Supply Challenges

Barcelona

Prague

Dublin

Hamburg

© 2020 STR, LLC All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, LLC or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.

Thank You!

[email protected]

STR_Data

www.strglobal.com

Alex Robinson

[email protected] @str dataoccupancy patterns consistent across all types of apartment london,...

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