naw aec summer association executives council meeting dana ... · international –proprietary and...

2016 - 2017Market Trends

NAW AEC Summer Association Executives Council Meeting

Dana Point, California

Unprecedented consolidation is creating mega-brands

2017 ASSOCIATED LUXURY HOTELS

INTERNATIONAL – PROPRIETARY AND

CONFIDENTIAL

Current Conditions

Consolidation

Current Conditions

ConsolidationSales staff-to-hotel ratios are unmanageable. Brand sales teams simply cannot know their own properties anymore.



CONFIDENTIAL

30 Brands in 100+

countries with 5,700 hotels

12 Brands in 100 territories

and countries with

5,000 hotels

19 Brands in 95

countries, with

4,100 hotels

Current Conditions

ConsolidationOur model works best for both the Meeting Professional and the Member hotels.



CONFIDENTIAL

1 brand in 61 countries

with over 250 hotels

Global Sales Ratio 4:1

Loews Atlanta HotelATLANTA, GEORGIA

Market Trends: Buyer Insight

Market Update Focus on Upper – Upscale & Luxury Hotels Market Specifically



CONFIDENTIAL

Market Update

Sources

Moody’s Economic Analytics

PKF Hospitality Research

Smith Travel Research

(STR)

ALHISurveyResults

Market Trends

Buyer & Seller Trends

Trailing Market Trends

2016 Buyers Trends & Demand ResultsNumber of Programs Booked vs. Last Year



CONFIDENTIAL

42%

51%

7%

Same Number Programs vs. This Time Last Year

Less Programsvs. This Time Last Year

More Programs vs. This Time Last Year



CONFIDENTIAL


2016 Buyers Trends & Demand Results

18%6-10%

15%>10%

67%1-5%

34%Same66%

Yes

Did BQT. / F&B Spend Increase? (Per Group R/N Comparison)

Number of Expected Programs to be Booked in 2017 vs. 2016



CONFIDENTIAL

Future Market Trends

2017 Buyers Trends & Demand Indicators

INCREASED SAME LESS

Will Expect Less

50%45%

5%

Will Increase# of Meetings

Same# of Meetings

TIMING: 65% Will be Held the Same as 201631% Will Book Earlier7% Will Have a Short Time Frame to Book

2017 Outlook on Booking Environment



CONFIDENTIAL



80%

7%

13%

Buyer’s Market

Seller’s Market

NeutralMarket

2017 Outlook on Incentive Travel Programs



CONFIDENTIAL



76%

22%

2%

More in 2017

Less in 2017

Same as 2016

ISLAND HOTEL NEWPORT BEACHNEWPORT BEACH, CALIFORNIA

Market Trends: HoteliersRepresentative of Upper – Upscale & Luxury M.I.C.E. Market

2016 Hotels YE Performance Update



CONFIDENTIAL


2016 Hoteliers Trends & Performance

0%

25%

50%

75%

100%

Occupancy ADR $

Most + 1 - 5 %

81% Same or

Greater to LY

(23% Same)

94% Same or

Greater to LY

( 5% Same)



CONFIDENTIAL

2017: Pre-sold Group Business vs. STLY

2018: Pre-sold Group Business vs. STLY for 2017

Source: Associated Luxury Hotels International Survey, October 2016


2017 + 2018 Hoteliers Trends

69%

31%

Same or More R/N

Less R/N

84%

16%

Same or More R/N

Less R/N

Hoteliers Perspective on Market Conditions



CONFIDENTIAL

64%

8%

28%

Neutral

Sellers Say:


Hoteliers Market Indicators

Sellers

Buyers

Buyers Say:

80%

7%

13%

Seller’s Market

Buyer’s Market

NeutralMarket

The Cloister at Sea IslandSEA ISLAND, GEORGIA

Market Trends: Industry Data

• Occupancy – UP 3.5% Above Long Running Average of 70%

• ADR – UP 4.0% vs. Past 4 Quarters

• RevPar – Same vs. Past 4 Quarters

• Supply – UP 3.2% vs. 2.2% LY; Under 2.08% Long Running Average

• Demand – UP at 2.4% ; to Long Term Average



CONFIDENTIAL

Future Market Trends – National Market: Short Term

Hotels Snapshot on 2017



CONFIDENTIAL

Market Trends : Industry Data

U.S. Supply Change - Luxury Hotels

Long Run Average 4.

Source:CBRE Hotels’ America’s Research - Hotel

Horizons® Custom Forecast March - May 2017

Edition.



CONFIDENTIAL

Market Trends : Industry Trends for Luxury Hotels

Luxury Hotels – Future Forecast

Long Run

Average2014 2015 2016F 2017F 2018F 2019F 2020F

Supply 4.4% 1.1% 0.5% 2.2% 3.2% 3.7% 4.1% 4.1%

Demand 4.9% 2.0% 1.2% 1.8% 2.4% 3.4% 2.8% 4.7%

Occupancy 70.0% 74.9% 75.3% 74.9% 74.3% 74.1% 73.2% 73.6%

ADR 3.9% 5.3% 4.7% 1.9% 3.3% 3.5% 2.9% 2.9%

RevPAR 4.6% 6.2% 5.5% 1.5% 2.5% 3.2% 1.7% 3.4%

Record

Source:CBRE Hotels’ America’s Research - Hotel

Horizons® Custom Forecast March - May 2017

Edition.

Château ÉlanBRASELTON (ATLANTA), GEORGIA

Navigating The Market

Navigate “Market” Conditions with GSO

• M.I.C.E. Inventory Compression Remains Strong

• Likely continue through 2020

• Demand for M&I Continues to Grow

• More programs from corporate & association

• Growing at a compounded pace to supply

• Booking Programs Earlier

• Consider marketing conditions/forecasts

• Laws of supply & demand

• Tailor RFP’s accentuating business value / priorities

• Communicate Flexibility with RFP

• Prioritize meeting space requirements

• Consider alternate ALHI locations for Luxury on Sale value

• Prioritize concessions “wish list” requirements2016 ASSOCIATED LUXURY HOTELS


CONFIDENTIAL

Streamsong ResortSTREAMSONG, FLORIDA

ALHI News

LA Cantera Resort & SpaSAN ANTONIO, TEXAS

ALHI GlanceReliable GSO for over 30 years: Corporate & Association MICE Specialist

Exclusive "Invite-Only Portfolio

Worldwide:

GSO dues funded & authorized by Member: Contractually providing

cost-free, best value GSO sales service

14818

106

in the U.S.Caribbean, Bahamas Bermuda & MexicoHotels throughout EMEA& APAC

250+ Hotels & Resorts Plus, Alliance Members for M&I

23100

Luxury Cruise ShipsDestination DMC’s Worldwide

ALHI’s Passion to Serve

• Global Sales Organization since 1986 with over

70 Sales Professionals in 21 offices

• A commitment to dedicated sales for our

prestigious Members and our valued customers

• Experienced and knowledgeable guidance for

site-specific solutions

• Save time and money with personalized one-

call access and sales support



CONFIDENTIAL

• 24 independent luxury-level meeting & incentive

focused hotels and resorts outside of North America

• Destinations include Maldives, Buenos Aires, London,

Dublin, Rome, Hong Kong and more!

• ALHI’s GLA now offers over 100 Meeting & Incentive

properties in Europe, Asia, the Middle East, Africa and

South America



CONFIDENTIAL

ALHI News

Worldhotels

Grand Hotel de la Minerve

Rome, Italy

Harbour Grand Kowloon

Hong Kong, China

Duin & Kruidberg Country Estate

Santpoort, Netherlands

Royal Garden Hotel

London, England

Our Members

The Resort Collection



CONFIDENTIAL

ALHI News

Over 250 Options Including: Newest Member Destinations

Seattle, WA

Destin, FL

Orlando, FL

Atlanta, GA

Cape Neddick,

ME

Atlantic City,

NJ

Farmington,

PA

Washington, DC

Memphis, TN

London,

England

Birmingham,

England

Our Members




CONFIDENTIAL

ALHI News


Scottsdale, AZ Carlsbad, CA

Louisville, KY San Juan, PRAmelia Island,

FL

Dublin, Ireland

Fish Camp, CA

Kuala Lumpur,

Malaysia

Our Members




CONFIDENTIAL

ALHI News


Havana,

Cuba

Alexandria,

Scotland

Thank You

naw aec summer association executives council meeting dana ... · international –proprietary and...

Documents