monthly p&l results august 2020...profit margins improving but remain poor overall monthly...
TRANSCRIPT
Monthly P&L ResultsAugust 2020
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Source: STR. 2020 © CoStar Realty Information, Inc.
U.S. Profitability shows little improvement in AugustU.S. Monthly P&L KPIs – 2020 YTD vs 2019 YTD
2
Total LPAR % Chg
5.0%
-31.2%
-72.8%
-72.7%
-59.6%
-64.8%
-64.4%
1.7%
EBITDA PAR % Chg
-116.8%
-140.2%
-140.9%
-124.6%
-115.1%
-112.1%
0.8%
1.4%
GOPPAR % Chg
-101.7%
-116.9%
-117.7%
-105.4%
-93.3%
-91.3%
1.0%
1.4%
TRevPAR % Chg
January
February
March
April
May
June
July
August
-64.0%
-92.9%
-92.6%
-81.3%
-74.1%
-74.5%
2.7%
0.9%
2019
2020 $106.36-57.6%
$250.69
TRevPAR
$20.63-78.8%
$97.18
GOPPAR
$2.57-96.4%
$71.21
EBITDA - PAR
$50.44-41.7%
$86.55
LPAR - Labor Costs
Source: STR. 2020 © CoStar Realty Information, Inc.
Profit Margins improving but remain poor overallMonthly P&L Program – August 2020 and August 2019
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Total Revenues (Per AvailableRoom Night)
Gross Operating Profit / TotalRevenues
Earnings Before Interest, IncomeTax, Depreciation, and
Amortization / Total RevenuesTotal Labor Costs / Total Revenues
Includes rooms, F&B, other depts,misc income
Includes departmental expenses, A&G,I&TS, marketing, maintenance, utilities
excludes fixed expense
Includes operating expense,management fees, non-operating
income, rent, property tax, insurance,other fixed
Includes all labor costs from alldepartments including salaries, wages,
benefits, payroll tax, bonuses,contract, and outsourced labor
2019
2020$55.72-74.5%
$218.33
TRevPAR
12.4%
-23.9%
36.3%
GOP % of Revenues
-12.5%
-38.9%
26.4%
EBITDA % of Revenues
48.8%
13.8%
35.0%
Labor Costs % of Revenues
Source: STR. 2020 © CoStar Realty Information, Inc.
Demand decline improved, but Revenue improvements stagnateU.S. Revenue & Expense % Change – August 2020 vs August 2019
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DemandRooms Revenue
Food RevenueBeverage Revenue
Other F&B RevenueOther Dept Revenue
Miscellaneous IncomeTotal Revenue
Rooms ExpenseF&B Expense
Other Dept ExpenseA&G ExpenseI&TS Expense
Marketing ExpensePOM Expense
Utilities ExpenseGOP
Property TaxesInsurance Expense
EBITDATotal Labor Costs -63.5%
-112.4%
-9.9%
-13.9%
-91.1%
-37.7%
-46.6%
-68.6%
-41.4%
-50.8%
-67.4%
-75.9%
-66.3%
-73.8%
-54.3%
-57.9%
-101.8%
-77.2%
-83.1%
-72.9%
-56.5%
Source: STR. 2020 © CoStar Realty Information, Inc.
Upper Upscale, Airport, and Urban locations continue to struggleMonthly P&L Program – August 2020 vs August 2019
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Full-Service
Limited-Service
-75.7%
-63.5%
-94.0%
-74.5%
Luxury Class
Upper Upscale Class
Upscale Class
Upper Midscale Class
Midscale Class
-70.5%
-79.0%
-66.9%
-67.6%
-29.4%
-89.4%
-97.4%
-78.7%
-76.3%
-34.1%
Airport
Interstate
Resort
Small Metro/Town
Suburban
Urban
-76.6%
-55.6%
-65.7%
-35.5%
-71.0%
-83.1% -106.3%
-95.5%
-63.7%
-76.2%
-37.8%
-83.6%
TRevPAR % Change GOPPAR % Change
Source: STR. 2020 © CoStar Realty Information, Inc.
Revenues improving, but Profits remain weak compared to last yearTRevPAR & GOPPAR indexed to same months last year
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January February March April May June July August January February March April May June July August
0%
20%
40%
60%
80%
100%
120%
TRevP
-20%
0%
20%
40%
60%
80%
100%
120%
GOPP
104% 106%
32%
16%24% 25%
6% 6%
97%91%
48%
18% 19%
37%43%
38%
103% 106%
-19% -21%-10%
-3%
3% 6%
93% 90%
20% 22%28% 26%
-4%
5%
Full-ServiceLimited-Service
Source: STR. 2020 © CoStar Realty Information, Inc.
Beverage outperforming Food, but lack of groups hurt Other F&BF&B Revenues POR – Monthly YTD 2019 and 2020
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2019 2020
January February March April May June July August January February March April May June July August
$0
$20
$40
$60
$80
Food $5
$10
$15
$20
$25
Bev P
($10)
$0
$10
$20
$30
Othe
$75.10 $77.34$73.25
$61.67
$74.52
$60.44
$50.49 $48.09
$73.30$77.43
$63.23
$13.83 $16.92$23.37
$29.36$21.52
$20.99$23.37 $22.48
$18.33
$22.63
$19.11$17.15 $17.08
$21.67$23.75
$21.16
$12.44$14.64
$10.32
$2.48
$7.43
$23.57$27.67
$23.32$18.70
$25.48
$20.07
$12.06 $13.51
$25.27 $25.83
$-7.28 $-7.09$-3.82
$-0.58 $-0.61
$4.97
Source: STR. 2020 © CoStar Realty Information, Inc.
Full-Service Limited-Service
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28%
-200%
-150%
-100%
-50%
0%
50%
100%
GOP
-200%
-150%
-100%
-50%
0%
50%
100%
GOP
Percent of Hotels
20192020
37% of Full-Service hotels with GOP losses in August; Only 11% for LSDistribution of Profit Margins – August 2019 vs. August 2020
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Source: STR. 2020 © CoStar Realty Information, Inc.
Median GOPPAR down $86 for Top MarketsProfitability Matrix - Select Full-Service Markets, August 2020 and August 2019
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-300% -200% -100% 0%
GOP margin
($40)
($20)
$0
$20
$40
Anaheim/Santa Ana, CA
Boston, MA
Chicago, IL
Minneapolis/St Paul, MN-WI
New York, NY
-4%
-$1
August 2020
0%
GOP margin
$0
$50
$100
$150
GOPPAnaheim/Santa Ana, CA
Boston, MA
Chicago, IL
Denver, CO
Houston, TX
Los Angeles/Long Beach, CA
Miami/Hialeah, FL New Orleans, LA
New York, NY
Philadelphia, PA-NJ
San Francisco/San Mateo, CA
Washington, DC-MD-VA
34%
$85
August 2019
Source: STR. 2020 © CoStar Realty Information, Inc.
TRevPAR slows for Top Markets, but 8 show positive GOPPARMonthly P&L Program – August 2020
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Anaheim/Santa Ana, CATampa/St Petersburg, FL
Phoenix, AZLos Angeles/Long Beach, CA
Philadelphia, PA-NJAtlanta, GA
San Diego, CAMiami/Hialeah, FL
San Francisco/San Mateo, CADenver, COSeattle, WAOrlando, FL
Dallas, TXNew York, NY
Washington, DC-MD-VABoston, MA
New Orleans, LAHouston, TX
Chicago, ILMinneapolis/St Paul, MN-WI $8.32
$14.71
$27.56
$27.68
$32.45
$34.57
$36.85
$38.70
$39.26
$45.64
$46.33
$53.72
$58.62
$60.40
$61.10
$64.96
$65.69
$72.32
$79.29
$87.91
$-1.36
$7.58
$3.29
$0.19
$4.65
$9.68
$6.88
$5.97
$18.72
$19.82
$-9.89
$-7.40
$-21.76
$-8.26
$-13.66
$-26.20
$-11.33
$-1.10
$-1.36
$-18.92
$-15.23
TRevPARGOPPAR
Source: STR. 2020 © CoStar Realty Information, Inc.
Select U.S. Markets – TRevPAR & GOPPAR % ChangeMonthly P&L Program – August 2020 vs August 2019
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TRevPAR % Change GOPPAR % Change
Minneapolis/St Paul, MN-WIChicago, IL
Boston, MANew York, NY
Seattle, WAOrlando, FL
San Francisco/San Mateo, CANew Orleans, LA
Washington, DC-MD-VADenver, CO
San Diego, CASt Louis, MO-IL
Dallas, TXLos Angeles/Long Beach, CA
Houston, TXMiami/Hialeah, FL
Nashville, TNPhiladelphia, PA-NJ
Atlanta, GAAnaheim/Santa Ana, CATampa/St Petersburg, FL
Detroit, MI -52.3%
-61.0%
-65.4%
-65.7%
-69.4%
-69.5%
-73.5%
-73.9%
-76.1%
-76.9%
-77.7%
-79.0%
-80.1%
-80.8%
-81.7%
-82.2%
-82.7%
-85.6%
-86.7%
-89.5%
-92.2%
-93.0%
-53.9%
-69.4%
-79.4%
-80.5%
-89.1%
-88.1%
-100.3%
-96.2%
-90.7%
-85.8%
-99.3%
-94.2%
-96.1%
-124.5%
-102.7%
-104.6%
-117.1%
-104.2%
-125.1%
-117.1%
-117.6%
-111.8%
Source: 2020 STR, LLC / STR Global, Ltd. trading as "STR". © CoStar Realty Information, Inc. 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 credit STR as the source. This presentation is based on data collected by STR. The information in the presentation should not be construed as investment, tax, accounting or legal advice.
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