YOUR HOSTS. Desiree Flanary, MAI. Matt Melville. Kasia Russell, MAI (505) (970) (970)

Transcription

1 YOUR HOSTS Kasia Russell, MAI (970) Desiree Flanary, MAI (970) Matt Melville (505)

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3 Click Portland to edit Master text styles At a Glance Desiree Flanary, MAI dflanary@hvs.com

4 Portland Existing Supply Number of Hotels Existing Hotels by Chain Scales 17% 19% 8% 4% 16% 37% Economy Class Midscale Class Upper-Midscale Class Upscale Class Upper-Upscale Class Luxury Class

5 Portland Existing Supply Number of Rooms Existing Hotel Rooms by Chain Scales 17% 6% 21% Economy Class Midscale Class Upper-Midscale Class 13% Upscale Class 24% Upper-Upscale Class 19% Luxury Class

6 Portland vs. Nation - Existing Supply Luxury Room % of Market Share Portland National 6% Upper-Upscale 17% Upscale 24% Upper-Midscale 19% Midscale 13% Economy 21% 0% 5% 10% 15% 20% 25% 30%

7 Portland Development Pipeline New Rooms Residence Inn Hillsboro Hyatt House Portland Waterfront Holiday Inn Hillsboro Autograph Collection Hi-Lo AC Hotel by Marriott Under Construction

8 Portland Development Pipeline ,599 New Rooms Under Construction Approved Seeking Entitlements Canopy by Hilton Staybridge Suites West Hillsboro Staybridge Suites Cherry Hill Hillsboro Hampton Inn & Suites Pearl District The Porter Hotel: Curio by Hilton Vancouver Waterfront Hotel Aloft Hillsboro Cornelius & Woodlark Cambria Suites Holiday Inn Express & Suites

9 Portland Development Pipeline New Rooms Radisson Red Hyatt Regency Oregon Convention Center Hotel Approved

10 Portland Development Pipeline Unknown 949 New Rooms The Grove Hotel Candlewood Suites Hillsboro Oxford Suites Hillsboro Hotel Indigo Wyndham Portland AC by Marriott Vancouver Toyoko Inn Early Development Approved Seeking Entitlements

11 Portland New Rooms Pipeline Total 783 1, , Total Pipeline 949 Unknown

12 Portland Existing vs. New Supply Existing Supply vs. New Supply 13% Existing Supply New Supply * Includes Unknown 87%

13 New Supply - Then vs. Now 11,000,000 10,500,000 10,000, % 2.0% 1.8% 2.8% 9,500,000 9,000,000 8,500, % 3.8% vs. 8,000, f 2017f 2018f 2019f

14 Portland Room Supply Increase 45.0% 40.0% 35.0% * Includes Unknown 40.2% 30.0% 25.0% 20.9% 20.0% 15.0% 8.9% 10.0% 5.3% 2.2% 5.0% 0.0% 0.0% Economy Midscale Upper-Midscale Upscale Upper-Upscale Luxury

15 Portland Available Room Nights MILLION ROOMS NIGHTS BY 2019

16 Portland Available vs. Occupied Room Nights 11,000,000 AVAILABLE SOLD 9,000,000 7,000,000 5,000,000 Source: HVS, STR

17 Portland Occupancy Forecast Click 100.0% to edit Master text styles 90.0% 80.0% 74.9% 75.1% 74.0% 73.5% 72.9% 70.0% 60.0% 50.0% Source: HVS, STR

18 Portland ADR & RevPAR Forecast ADR RevPAR $ $ $ $ $ $ $ $ $ $94.68 $ $ $ $ $ Source: HVS, STR

19 Oregon Transaction Volume per Month 2015/16 $351,000,000 $301,000,000 $251,000,000 $201,000,000 $151,000,000 $101,000,000 $51,000,000 $1,000,000 $63,600,000 $298,750,000 Six Transactions in 2016 Total: $135,425,000 $118,175,000

20 Oregon Transaction Volume Top 10 Cities 2015/16 Click Portland to edit Master text styles Eugene Bend Lake Oswego Roseburg Clackamas Canyonville Gresham Klamath Falls Salem $491,773,100

21 Highest Transaction Prices in Portland Hilton Portland and Executive Towers Hotel Monaco Portland RiverPlace Hotel September 2015 March 2016 July 2015 $275,000,000 or $351,662 per Room $114,000,000 or $515,837 per Room $63,600,000 or $757,143 per Room

22 Oregon Cap Rates Range 29 transactions 17 months 7.0% to 10.9%

23 Portland Hotel Values PORTLAND VALUE % CHG USA % VALUE CHG 40.0% 29.9% 30.0% 25.8% 23.3% 19.9% 21.4% 23.2% 20.0% 16.2% 10.0% 0.0% -10.0% 1.9% -2.1% 1.3% -2.5% 7.7% -20.0% -13.5% -30.0% -40.0% -30.8% For more information, visit

24 How to differentiate:

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27 Analysis of Expense Ratios Independent Hotels Revenue % Percentage 28.8 National 23.6 Rooms Food and Beverage + Other F&B Portland Other Operated Departments Miscellaneous Income

28 Analysis of Expense Ratios Independent Hotels Departmental Expenses % Percentage 26.7 National Portland Rooms Food & Beverage Other Operated Departments

29 Administrative & General Information & Telecommunications Systems Marketing Franchise Fees Utility Costs Property Operations & Maintenance Analysis of Expense Ratios Independent Hotels Undistributed Operating Expenses % Percentage National Portland

30 Analysis of Expense Ratios Independent Hotels Management Fee and Fixed Charges % Percentage 3.5 National Portland Management Fees Taxes Insurance

31 Analysis of Expense Ratios Independent Hotels 32.0 EBITDA % Percentage % National Portland 29.7%

32 Desiree Flanary, MAI +1 (970) Questions?

33 MARKET INSIDERS Matt Melville MODERATOR HVS Bashar Wali Provenance Hotels Brian Resendez Sperry Van Ness Luther Barker Columbia Banking System Steve Faulstick Travel Portland

34 YOUR HOSTS Kasia Russell, MAI (970) Desiree Flanary, MAI (970) Matt Melville (505)