YOUR HOSTS Kasia Russell, MAI krussell@hvs.com (970) 227-7799 Desiree Flanary, MAI dflanary@hvs.com (970) 381-9794 Matt Melville mmelville@hvs.com (505) 270-5050
Click Portland to edit Master text styles At a Glance Desiree Flanary, MAI dflanary@hvs.com
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
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
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%
Portland Development Pipeline - 2016 783 New Rooms Residence Inn Hillsboro Hyatt House Portland Waterfront Holiday Inn Hillsboro Autograph Collection Hi-Lo AC Hotel by Marriott Under Construction
Portland Development Pipeline - 2017 1,599 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
Portland Development Pipeline - 2018 780 New Rooms Radisson Red Hyatt Regency Oregon Convention Center Hotel Approved
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
Portland New Rooms Pipeline Total 783 1,599 780 4,111 2016 2017 2018 Total Pipeline 949 Unknown
Portland Existing vs. New Supply Existing Supply vs. New Supply 13% Existing Supply New Supply * Includes Unknown 87%
New Supply - Then vs. Now 11,000,000 10,500,000 10,000,000 1.8% 2.0% 1.8% 2.8% 9,500,000 9,000,000 8,500,000 0.6% 3.8% vs. 8,000,000 2007 2008 2009 2015 2016f 2017f 2018f 2019f
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
Portland Available Room Nights +10.5 MILLION ROOMS NIGHTS BY 2019
Portland Available vs. Occupied Room Nights 11,000,000 AVAILABLE SOLD 9,000,000 7,000,000 5,000,000 Source: HVS, STR
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% 2015 2016 2017 2018 2019 Source: HVS, STR
Portland ADR & RevPAR Forecast ADR RevPAR $160.00 $140.00 $126.38 $133.34 $139.34 $143.52 $147.82 $120.00 $100.00 $94.68 $100.13 $103.11 $105.42 $107.78 $80.00 2015 2016 2017 2018 2019 Source: HVS, STR
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
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
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
Oregon Cap Rates Range 29 transactions 17 months 7.0% to 10.9%
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% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For more information, visit http://hvi.hvs.com/
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Analysis of Expense Ratios Independent Hotels 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 59.9 65.2 Revenue % Percentage 28.8 National 23.6 Rooms Food and Beverage + Other F&B Portland 8.0 11.0 Other Operated Departments 3.3 0.2 Miscellaneous Income
Analysis of Expense Ratios Independent Hotels 120.0 100.0 80.0 60.0 40.0 20.0 0.0 28.7 Departmental Expenses % Percentage 26.7 National Portland 73.8 77.5 68.0 105.8 Rooms Food & Beverage Other Operated Departments
Administrative & General Information & Telecommunications Systems Marketing Franchise Fees Utility Costs Property Operations & Maintenance Analysis of Expense Ratios Independent Hotels 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 8.5 8.3 Undistributed Operating Expenses % Percentage 1.0 0.2 National 5.8 5.7 Portland 0.3 0.0 3.4 3.5 4.7 4.1
Analysis of Expense Ratios Independent Hotels Management Fee and Fixed Charges % Percentage 3.5 National Portland 3.0 3.0 2.8 2.7 2.5 2.0 2.0 1.5 1.0 0.5 1.3 1.2 0.0 Management Fees Taxes Insurance
Analysis of Expense Ratios Independent Hotels 32.0 EBITDA % Percentage 30.0 28.0 26.0 24.0 22.0 20.0 25.7% National Portland 29.7%
Desiree Flanary, MAI dflanary@hvs.com +1 (970) 381-9794 Questions?
MARKET INSIDERS Matt Melville MODERATOR HVS Bashar Wali Provenance Hotels Brian Resendez Sperry Van Ness Luther Barker Columbia Banking System Steve Faulstick Travel Portland
YOUR HOSTS Kasia Russell, MAI krussell@hvs.com (970) 227-7799 Desiree Flanary, MAI dflanary@hvs.com (970) 381-9794 Matt Melville mmelville@hvs.com (505) 270-5050