the hotel evolution - convention management watts.pdf · the hotel evolution emerging lifestyle...
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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
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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
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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
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Broad appeal brands will always have a home © 2017. All rights reserved. Proprietary and confidential But we need diversity to avoid contraction
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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
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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
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“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
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Boutique, lifestyle & niche
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The new traveller is defining the product
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INDEPENDENT BOUTIQUES
CLUB CONCEPT
PRIVATE RESIDENCES
Neighborhood story
Wellness niche Luxury lifestyle
IHG’s evolving experiences
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© 2017. All rights reserved. Proprietary and confidential
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© 2017. All rights reserved. Proprietary and confidential
The challenge of boutique
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“America’s Best Employer,” 2016
“Best Companies to Work For,” 2009, 2011-16
Bring the experience to life
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© 2017. All rights reserved. Proprietary and confidential
Beware of Whales..
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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
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Thank you