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Industry Update by CBRE
AAHOA Education series HOTEL ROI: COST ISSUES SEPTEMBER 6, 2018
Daniel C. Hanrahan II, MAI, CRE Director CBRE Hotels daniel.hanrahan@cbre.com (212)207-6021
U.S. Lodging Forecast All Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 1.8% 1.0% 1.5% 1.8% 2.0% 1.9% Demand 2.0% 2.5% 1.6% 2.6% 2.3% 1.9% Occupancy 62.3% 65.3% 65.4% 65.9% 66.1% 66.1% ADR 3.0% 4.5% 3.0% 2.1% 2.8% 2.6% RevPAR 3.3% 6.1% 3.1% 2.9% 3.1% 2.6% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Philadelphia Lodging Forecast All Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 2.3% -0.2% 1.2% 2.5% 2.1% 3.3% Demand 2.1% 1.1% 2.8% 1.5% 5.5% 2.3% Occupancy 65.9% 68.2% 69.2% 68.5% 70.9% 70.2% ADR 2.5% 4.0% 3.6% -1.6% 3.8% 4.0% RevPAR 2.4% 5.4% 5.1% -2.6% 7.3% 3.0% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Philadelphia Lodging Forecast Upper-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 3.5% 0.6% 1.8% 3.3% 2.7% 3.2% Demand 3.6% 1.6% 3.7% 2.2% 5.4% 2.9% Occupancy 69.0% 72.3% 73.7% 72.8% 74.7% 74.5% ADR 2.6% 3.5% 3.4% -1.5% 4.1% 4.3% RevPAR 2.8% 4.5% 5.4% -2.6% 6.8% 3.9% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Philadelphia lodging Forecast Lower-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 1.3% -1.2% 0.5% 1.6% 1.2% 3.4% Demand 0.7% 0.4% 1.5% 0.6% 5.7% 1.5% Occupancy 63.0% 63.4% 64.0% 63.3% 66.1% 65.0% ADR 1.8% 4.6% 3.0% -2.5% 3.2% 2.6% RevPAR 1.4% 6.4% 3.9% -3.5% 7.8% 0.8% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Pittsburgh Lodging Forecast All Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 2.4% 5.3% 6.2% 4.2% 2.4% 3.6% Demand 2.4% 1.6% -3.7% 6.7% 6.4% 5.1% Occupancy 63.7% 64.9% 58.9% 60.3% 62.7% 63.6% ADR 2.5% 2.4% -0.2% -4.8% 0.1% 1.7% RevPAR 2.5% -1.3% -9.5% -2.6% 4.0% 3.2% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Pittsburgh Lodging Forecast Upper-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 3.5% 5.6% 7.6% 2.4% 2.6% 4.2% Demand 3.8% 3.3% 2.2% 3.1% 5.8% 6.1% Occupancy 65.6% 68.1% 64.7% 65.1% 67.2% 68.4% ADR 2.1% 2.8% -1.5% -3.5% 0.0% 1.4% RevPAR 2.5% 0.5% -6.5% -2.8% 3.2% 3.3% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Pittsburgh Lodging Forecast Lower-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 1.7% 5.0% 4.9% 5.9% 2.3% 3.1% Demand 1.4% -0.2% -9.7% 10.9% 7.2% 4.0% Occupancy 62.3% 62.0% 53.3% 55.8% 58.5% 59.0% ADR 2.2% 0.8% -1.7% -5.0% 0.7% 1.5% RevPAR 2.0% -4.2% -15.4% -0.6% 5.5% 2.4% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Newark Lodging Forecast All Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 1.5% 0.2% 0.0% 1.6% 2.6% 2.7% Demand 1.8% 3.0% 0.9% 3.1% 3.3% 2.4% Occupancy 68.4% 72.2% 72.8% 73.9% 74.4% 74.2% ADR 2.5% 1.6% 1.5% 0.6% 4.2% 3.5% RevPAR 2.9% 4.4% 2.5% 2.1% 4.9% 3.2% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Newark Lodging Forecast Upper-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 2.8% 1.0% 0.0% 1.6% 2.8% 4.0% Demand 3.3% 2.0% 1.8% 2.4% 5.0% 4.0% Occupancy 69.9% 72.9% 74.1% 74.7% 76.3% 76.3% ADR 2.3% 1.6% 1.2% 0.7% 3.7% 3.4% RevPAR 3.0% 2.6% 3.0% 1.4% 5.9% 3.3% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Newark Lodging Forecast Lower-Priced Hotels Long Run Average 2015 2016 2017 2018F 2019F Supply 0.5% -0.7% -0.1% 1.5% 2.3% 1.2% Demand 0.7% 4.0% -0.1% 3.8% 1.4% 0.4% Occupancy 67.0% 71.4% 71.4% 73.1% 72.4% 71.8% ADR 2.1% 2.3% 1.4% 1.0% 3.9% 2.7% RevPAR 2.5% 7.1% 1.4% 3.3% 3.0% 1.9% Source: CBRE Hotels Americas Research - Hotel Horizons September November 2018; STR
Philadelphia Pipeline Philadelphia Supply Pipeline Upper-Priced Lower-Priced Unclassified / Independent PHASE PROPERTIES ROOM S % MARKET PROPERTIE S ROOM S % MARKET PROPERTIE S ROOM S % MARKET Unconfirmed 0 0 0.0% 0 0 0.0% 0 0 0.0% Planning 8 1,156 2.4% 21 2,023 4.2% 2 167 0.3% Final Planning 2 274 0.6% 9 1,187 2.4% 0 0 0.0% In Construction 7 1,355 2.8% 8 861 1.8% 0 0 0.0% Total 17 2,785 5.7% 38 4,071 8.4% 2 167 0.3% Source: STR, CBRE Hotels' Americas Research, Q2 2018
Pittsburgh Pipeline Pittsburgh Supply Pipeline Upper-Priced Lower-Priced Unclassified / Independent PHASE PROPERTIES ROOMS % MARKET PROPERTIES ROOMS % MARKET PROPERTIES ROOMS % MARKET Unconfirmed 0 0 0.0% 0 0 0.0% 0 0 0.0% Planning 9 1,065 3.6% 10 1,126 3.8% 0 0 0.0% Final Planning 1 108 0.4% 9 872 3.0% 0 0 0.0% In Construction 5 761 2.6% 3 318 1.1% 0 0 0.0% Total 15 1,934 6.6% 22 2,316 7.8% 0 0 0.0% Source: STR, CBRE Hotels' Americas Research, Q2 2018
Newark Pipeline Newark Supply Pipeline Upper-Priced Lower-Priced Unclassified / Independent PHASE PROPERTIES ROOMS % MARKET PROPERTIES ROOMS % MARKET PROPERTIES ROOMS % MARKET Unconfirmed 0 0 0.0% 0 0 0.0% 0 0 0.0% Planning 5 697 3.7% 4 358 1.9% 0 0 0.0% Final Planning 1 234 1.2% 1 106 0.6% 0 0 0.0% In Construction 3 403 2.1% 1 108 0.6% 0 0 0.0% Total 9 1,334 7.1% 6 572 3.0% 0 0 0.0% Source: STR, CBRE Hotels' Americas Research, Q2 2018
CBRE NORTHEAST REGIONAL BREAKDOWN CONNECTICUT MAINE MASSACHUSETTS NEW HAMPSHIRE NEW JERSEY NEW YORK PENNSYLVANIA RHODE ISLAND VERMONT Source: CBRE Hotels Americas Research Trends in the Hotel Industry CBRE 21
2017 Northeast (PA, NJ, NY, New England) Regional P&L Benchmarks Full-Service Hotels REVENUE/EXPENSE $PAR PERCENT OF TOTAL REVENUE Rooms Revenue $68,264 74.3% F&B Revenue $20,435 22.2% Total Operating Revenue $91,881 100.0% Departmental Profit $54,961 59.8% G.O.P. $32,189 35.0% Profile of Sample Avg. Rooms 251 ADR $236.57 Occupancy 79.0% RevPAR $187.00 Source: CBRE Hotels Americas Research Trends in the Hotel Industry
2017 Northeast (PA, NJ, NY, New England) Regional P&L Benchmarks Limited-Service Hotels REVENUE/EXPENSE $PAR PERCENT OF TOTAL REVENUE Rooms Revenue $42,415 97.5% Total Operating Revenue $43,492 100.0% Departmental Profit $32,667 75.1% G.O.P. $20,592 47.3% Profile of Sample Avg. Rooms 130 ADR $150.96 Occupancy 77.0% RevPAR $116.18 Source: CBRE Hotels Americas Research Trends in the Hotel Industry
Cost Issues
Our Moderator and Panelists Meet the Experts Stefani C. O Connor Editor-in-Chief Hotel Management Bhavesh Patel Immediate Past Chairman AAHOA Jeffrey Kolessar Senior Vice President GF Management LLC Kevin Brickner Senior Vice President Franchise Sales & Development Wyndham Hotels & Resorts
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