EFFECTS OF CITYWIDE CONVENTIONS ON DOWNTOWN VANCOUVER HOTELS IN 2016

EFFECTS OF CITYWIDE CONVENTIONS ON DOWNTOWN VANCOUVER HOTELS IN 2016 NICOLETTE DOUGLAS CONSULTING APRIL 2017

TABLE OF CONTENTS EXECUTIVE SUMMARY... 3 BACKGROUND AND PURPOSE... 6 APPROACH... 6 ANALYSIS... 7 OCCUPANCY LARGE HOTELS... 8 OCCUPANCY SMALL HOTELS... 9 AVERAGE DAILY RATE LARGE HOTELS... 11 AVERAGE DAILY RATE SMALL HOTELS... 12 REVENUE PER AVAILABLE ROOM LARGE HOTELS... 14 REVENUE PER AVAILABLE ROOM SMALL HOTELS... 16 DEMAND (ROOMS SOLD) LARGE HOTELS... 17 DEMAND (ROOMS SOLD) SMALL HOTELS... 18 ROOM REVENUE LARGE HOTELS... 19 ROOM REVENUE SMALL HOTELS... 20 CONCLUSION AND RECOMMENDATIONS... 22 APPENDIX A... 24 APPENDIX B... 26 Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 2

EXECUTIVE SUMMARY Citywide conventions 1 have a significant impact on average occupancy, ADR, RevPAR, demand and room revenue for both large and small hotels, particularly during non-peak season months 2. There were 29 citywide conventions or events in Vancouver in 2016. LARGE HOTELS HOTELS WITH MORE THAN 300 ROOMS Average Annual Occupancy ADR RevPAR Demand Room Revenue Citywide Days 85% $236 $204 5,352 $1,280,952 Non-Citywide Days 73% $220 $166 4,560 $1,042,565 Difference (% Change) +12.5 percentage points +7.1% ($15.57 higher) +22.7% ($37.78 higher) +17.4% +22.9% Occupancy The greatest impact on occupancy was in January (+25.9 percentage points higher) and December (+23.3 percentage points higher than non-citywide days), traditionally the weakest months. Quarterly occupancy data shows that the greatest difference in percentage points is in the first (+17.8 percentage points higher) and the fourth quarters (+16.9 percentage points higher). ADR The greatest difference in ADR was in April (+17.9% higher) and October (+11.7% higher on citywide days). Quarterly ADR shows the greatest change in the first (+8.5%) and fourth (+6.9%) quarters. RevPAR The greatest difference in RevPAR for citywide days compared to non-citywide days was January (+64.5%), April (+45.5% higher) and December (+41.5% higher). It is clearly evident that citywide conventions have a significant impact on revenue during non-peak season months. Quarterly RevPAR shows the greatest difference in the first (+40.7%) and fourth (+34.5%) and quarters. 1 A citywide convention is defined as a convention with at least 1,000 out-of-town attendees that use a minimum of three convention hotels and the Vancouver Convention Centre. 2 Non-peak season months: January to May and October to December. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 3

Demand Annual demand or rooms sold at large hotels was on average +17.4% higher on days in which there was a citywide convention. Demand was significantly higher during the non-peak season months, such as January (+50.9% higher), December (+40.7%), March and April (both 23% higher than non-citywide days). Room Revenue Annual room revenue at large hotels was on average +22.9% higher on days in which there was a citywide convention. Revenue was significantly higher during the non-peak season months, such as January (+64.5% higher), April (+45.5%), December (+41.5%) and October (+33.6% higher on citywide days compared to non-citywide days). SMALL HOTELS - HOTELS WITH LESS THAN 300 ROOMS Average Annual Occupancy ADR RevPAR Demand Room Revenue Citywide Days 87% $198 $176 5,167 $1,039,734 Non-Citywide Days 79% $183 $150 4,661 $886,884 Difference (% Change) +8.4 percentage points +7.8% ($14.32 higher) +17.1% ($25.63 higher) +10.9% +17.2% Occupancy The greatest variance in occupancy was in October (+12.9 percentage points higher), January (+11.9 percentage points higher) and March (+11.5 percentage points higher than non-citywide days). The first (+12.1 percentage points) and fourth (+10.1 percentage points) quarters show the greatest variance in occupancy for citywide days compared to non-citywide days. ADR The greatest difference in ADR for citywide days compared to non-citywide days was April (+19.1% higher) and October (+14.6% higher on citywide days). Quarterly ADR variance is highest in the first (+9.3%) and fourth (+6.8%) quarters. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 4

RevPAR The greatest difference in RevPAR for citywide days compared to non-citywide days was April (+35.0% higher), October (+34.8%) and January (+27.8% higher). It is clearly evident that citywide conventions have a significant impact on revenue during non-peak season months. Quarterly RevPAR is highest in the first (+28.3%) and fourth (+22.6%) quarters on citywide days. Demand Annual demand at small hotels was on average +10.9% higher on days in which there was a citywide convention. Demand was significantly higher during the non-peak season months, such as January (+19.4% higher), October (+17.2%), March (+15.0%) and December (+14.6% higher than non-citywide days). Room Revenue Annual room revenue at small hotels was on average +17.2% higher on days in which there was a citywide convention. Revenue was significantly higher during the non-peak season months, such as April (+35.0%), October (+34.8%), and January (+27.8% higher on citywide days than non-citywide days). This analysis shows that citywides benefit both large and small hotels in downtown Vancouver in terms of generating additional business as measured by increased average occupancy, ADR, RevPAR, demand and room revenue, particularly during non-peak season months. As such, it is beneficial for the hotel industry, including both large and small hotels, to continue working together with industry stakeholders to bring citywide conventions to Vancouver, especially from January-April and October to December, when the greatest impact is seen. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 5

BACKGROUND AND PURPOSE Prior to 2016, commissioned MNP to conduct an analysis and reporting of the effects of citywide conventions on the occupancy of small and large hotels in Vancouver, based on data from the On the Books (OTB) 3 project. is no longer conducting the OTB project, and in 2016 purchased hotel data (for the year 2015) from Smith Travel Research (STR) for the purposes of this analysis. While the OTB project only collected daily occupancy data from a relatively small number of hotels, the STR data is more robust and includes daily occupancy, average daily rate (ADR), revenue per available room (RevPAR), demand (rooms sold) and room revenue data for a larger number of hotels. Due to its larger sample size, STR data is more representative of the market and also enables the ability to segment downtown Vancouver data from Metro Vancouver. STR data covers approximately 77.9% of downtown hotel room capacity and 79.4% of Metro Vancouver hotel room capacity. For the purposes of this analysis, large hotels are defined as hotels with a capacity exceeding 300 rooms, and small hotels to be hotels with a capacity of less than 300 rooms. The large hotels are typically the hotels that host conventions as they are able to facilitate a larger number of convention attendees, have a greater total meeting space, and have a greater total number of guest rooms than the small hotels. The objective of this project is to quantify the average change in hotel occupancy rates, ADR, RevPAR, demand and room revenue at large hotels and small hotels in downtown Vancouver during citywide conventions or events held in Vancouver in 2016. APPROACH This report utilizes the same methodology as the previous reports developed by MNP. However, the results are not directly comparable to previous year s reports as the source data and hotel samples are different. There were a total of 29 citywide conventions and events held in downtown Vancouver in 2016, distributed over every month of the year with all months, except December, having multiple citywide conventions or events. During this period there were 134 days where at least one citywide convention or event was held. We have separated the days during this time period into two categories: those days where there were citywide conventions in the city, and those days where there were no citywide conventions. 3 Voluntary research program that collected statistics from participating hotels. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 6

Table 1: Citywide Convention Days in downtown Vancouver Days with one or more citywide conventions 134 Days with no citywide conventions 232 Total 366 The Figure below shows the number of citywide conventions or events per month by the date they arrived and departed. The 2016 BMO Vancouver Marathon arrived in April and departed in May, 2016 cruise360 arrived in May and departed in June, and the 2016 American Masters Games arrived in August and departed in September. Please see Appendix B for a full list of citywides. Figure 1: Number of Citywides in downtown Vancouver by arrival and departure date 6 5 5 5 4 4 4 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Citywides-arrival month Citywides- departure month ANALYSIS STR daily data for occupancy, ADR, RevPAR, demand and room revenue was analyzed using the Statistical Package for the Social Sciences (SPSS). Statistical t-tests were performed for both the large and small hotel groups to test whether the differences in occupancy, ADR, RevPAR, demand and room revenue were statistically significant. The results showed that for both large and small hotels, there was a statistically significant increase in occupancy rates, ADR and RevPAR, demand and room revenue between the days in which there was a citywide convention versus those days in which there was no citywide convention 4. 4 The outcomes for large and small hotels are statistically significant at the 1% significance level, meaning there is less than a 1% probability the outcomes occurred by chance. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 7

The following figures and tables show average monthly, quarterly and annual data for occupancy, ADR and RevPAR; and average monthly and annual data for demand and room revenue; for large hotels (more than 300 rooms) and small hotels (less than 300 rooms) for days with a citywide convention and days without a citywide convention, for each month during 2016. OCCUPANCY 5 LARGE HOTELS For ten out of twelve months in 2016, occupancy rates at large hotels for days with a citywide convention were higher than on days without a citywide convention, apart for August and September (which were flat, at 90% and 92% respectively). The increase in occupancy for citywide days is particularly evident during the non-peak season months from January to April and October to December. The largest impact was in January (+25.9 percentage points higher) and December (+23.3 percentage points higher than non-citywide days), traditionally the weakest months. Figure 2: Monthly Occupancy Rates at Large Hotels (>300 rooms) in downtown Vancouver 100% 96% 93% 92% 86% 87% 89% 90% 90% 92% 90% 87% 86% 77% 79% 81% 80% 80% 72% 70% 73% 72% 70% 70% 64% 64% 57% 60% 51% 50% 40% 30% 20% 10% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days The first and the fourth quarters show the greatest variance (+17.8 and +16.9 percentage points higher) in occupancy rates at large hotels, for days with a citywide convention compared to days without a citywide convention. The third quarter was only marginally higher for citywide days at 92.4% compared to 91.6% for non-citywide days (+0.8 percentage points). 5 Rooms sold divided by rooms available. Occupancy is always displayed as a percentage of rooms occupied. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 8

Figure 3: Quarterly Occupancy Rates at Large Hotels (>300 rooms) in downtown Vancouver 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 92% 92% 87% 85% 83% 77% 78% 73% 66% 59% First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days Table 2 shows that hotel occupancy at large hotels was higher, on average, by +12.5 percentage points on days in which there was a citywide convention. Table 2: Average Occupancy for Large Hotels (>300 rooms) in downtown Vancouver Days with one or more citywide conventions 85.3% Days with no citywide conventions 72.8% Annual Average 77.4% Difference (Citywide days Non-Citywide days) +12.5 percentage points OCCUPANCY SMALL HOTELS Occupancy rates at small hotels on days with a citywide convention were higher in eleven out of twelve months, with a difference of -1.9% in August (93.4% non-citywide days vs. 91.5% for citywide days). The greatest variance for small hotels was in October (+12.9 percentage points higher), January (+11.9 percentage points higher) and March (+11.5 percentage points higher than non-citywide days). Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 9

Figure 4: Monthly Occupancy Rates at Small Hotels (<300 rooms) in downtown Vancouver 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 61% 73% 88% 90% 90% 79% 82% 78% 75% 77% 92% 91% 96% 95% 93% 94% 94% 92% 75% 88% 75% 75% 70% 65% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days The first and the fourth quarters show the greatest variance (+12.1 and +10.1 percentage points higher) in occupancy rates at small hotels, for days with a citywide convention compared to days without a citywide convention. The third quarter was only marginally lower for citywide days at 93.8% compared to 94.1% for non-citywide days (-0.3 percentage points). Figure 5: Quarterly Occupancy Rates at Small Hotels (<300 rooms) in downtown Vancouver 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 70% 82% 90% 85% 94% 94% 70% 80% 79% First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days 87% Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 10

Table 3 shows that for small hotels, occupancy rates were +8.4 percentage points higher on average on days in which there was a citywide convention. Table 3: Average Occupancy for Small Hotels (<300 rooms) in downtown Vancouver Days with one or more citywide conventions 87.3% Days with no citywide conventions 78.9% Annual Average 81.9% Difference (Citywide days Non-Citywide days) +8.4 percentage points AVERAGE DAILY RATE 6 LARGE HOTELS ADR at large hotels for days with a citywide convention were higher than on days without a citywide convention for ten out of twelve months in 2016, with the exception of August (-2.6%) and September (-1.5% lower on citywide days). The greatest difference in rate for citywide days compared to non-citywide days was April (+17.9% higher) and October (+11.7% higher on citywide days). Figure 6: Monthly ADR at Large Hotels (>300 rooms) in downtown Vancouver $300 $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $174 $190 $200 $202 $192 $186 $268 $262 $241 $242 $228 $205 $288 $287 $286 $278 $259 $255 $211 $194 $191 $185 $189 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days $236 The first and the fourth quarters show the greatest variance (+8.5% and +6.9% higher) in ADR at large hotels, for days with a citywide convention compared to days without a citywide convention. 6 Room revenue divided by rooms sold, displayed as the average rental rate for a single room. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 11

The third quarter was slightly lower for citywide days at $273.46 compared to $277.67 for non-citywide days (-1.5% lower on citywide days). Figure 7: Quarterly ADR at Large Hotels (>300 rooms) in downtown Vancouver $300 $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $198 $183 $248 $234 $278 $273 $209 $195 $236 $220 First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days Table 4 shows that ADR at large hotels was higher, on average, by $15.57 or +7.1% on days in which there was a citywide convention. Table 4: ADR for Large Hotels (>300 rooms) in downtown Vancouver Days with one or more citywide conventions $235.95 Days with no citywide conventions $220.38 Annual Average $226.08 $ Difference (Citywide days Non-Citywide days) $15.57 Percentage Difference (Citywide days over Non-Citywide days) +7.1% AVERAGE DAILY RATE SMALL HOTELS ADR at small hotels for days with a citywide convention were higher than on days without a citywide convention for nine out of twelve months in 2016, with the exception of July (-0.8%), August (-0.4%) and September (-1.1% lower on citywide days). Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 12

The greatest difference in ADR for citywide days compared to non-citywide days was April (+19.1% higher) and October (+14.6% higher on citywide days). Figure 8: Monthly ADR at Small Hotels (<300 rooms) in downtown Vancouver 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 61% 73% 78% 75% 88% 90% 90% 77% 79% 82% 92% 91% 96% 95% 93% 94% 94% 92% 75% 88% 75% 75% 70% 65% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days The first and the fourth quarters show the greatest variance (+9.3% and +6.8% higher) in ADR at small hotels on days with a citywide convention compared to days without a citywide convention. The third quarter was slightly lower for citywide days at $242.52 compared to $245.29 for non-citywide days (-1.1% lower on citywide days). Figure 9: Quarterly ADR at Small Hotels (<300 rooms) in downtown Vancouver $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $158 $144 $209 $198 $245 $243 $166 $156 $198 $183 First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 13

Table 5 shows that for small hotels, ADR was on average $14.32 or +7.8% higher on days in which there was a citywide convention. Table 5: ADR for Small Hotels (<300 rooms) in downtown Vancouver Days with one or more citywide conventions $197.73 Days with no citywide conventions $183.41 Annual Average $188.66 $ Difference (Citywide days Non-Citywide days) $14.32 Percentage Difference (Citywide days over Non-Citywide days) +7.8% REVENUE PER AVAILABLE ROOM 7 LARGE HOTELS RevPAR at large hotels for days with a citywide convention were higher for ten out of twelve months in 2016, with the exception of August (-2.2%) and September (-1.7% lower on citywide days). The greatest difference in RevPAR for citywide days compared to non-citywide days was January (+64.5%), April (+45.5% higher) and December (+41.5% higher). It is clearly evident that citywide conventions have a significant impact on revenue during non-peak season months. Figure 10: Monthly RevPAR at Large Hotels (>300 rooms) in downtown Vancouver $300 $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $89 $146 $145 $120 $124 $160 $144 $209 $211 $168 $240 $228 $276 $267 $257 $252 $240 $236 $154 $206 $129 $157 $154 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 $109 Non-Citywide Days Citywide Days 7 Room revenue divided by rooms available. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 14

The first and the fourth quarters show the greatest variance (+40.7% and +34.5% higher) in RevPAR at large hotels for days with a citywide convention compared to days without a citywide convention. The third quarter was marginally lower for citywide days at $255.13 compared to $253.77 for non-citywide days (-0.5% lower on citywide days). Figure 11: Quarterly RevPAR at Large Hotels (>300 rooms) in downtown Vancouver $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $255 $254 $218 $204 $184 $174 $153 $166 $129 $109 First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days Table 6 shows that RevPAR at large hotels was higher, on average, by $37.78 or +22.7% on days in which there was a citywide convention. Table 6: RevPAR for Large Hotels (>300 rooms) in downtown Vancouver Days with one or more citywide conventions $204.13 Days with no citywide conventions $166.35 Annual Average $180.18 $ Difference (Citywide days Non-Citywide days) $37.78 Percentage Difference (Citywide days over Non-Citywide days) +22.7% Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 15

REVENUE PER AVAILABLE ROOM SMALL HOTELS RevPAR at small hotels for days with a citywide convention were higher for ten out of twelve months in 2016, with the exception of August (-1.9%) and September (-1.5% lower on citywide days). The greatest difference in RevPAR for citywide days compared to non-citywide days was April (+35.0% higher), October (+34.8%) and January (+27.8% higher). It is clearly evident that citywide conventions have a significant impact on hotel revenue during non-peak season months. Figure 12: Monthly RevPAR at Small Hotels (<300 rooms) in downtown Vancouver $300 $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $84 $107 $119 $108 $118 $147 $129 $174 $159 $184 $217 $209 $245 $246 $233 $229 $214$211 $124 $167 $116 $118 $106 $101 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days The first and the fourth quarters show the greatest variance (+28.3% and +22.6% higher) in RevPAR at small hotels for days with a citywide convention compared to days without a citywide convention. The third quarter was slightly lower for citywide days at $228.20 compared to $231.37 for non-citywide days (-1.4% lower on citywide days). Figure 13: Quarterly RevPAR at Small Hotels (<300 rooms) in downtown Vancouver $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $ $102 $130 $189 $170 $231$228 $135 $110 $176 $150 First Q Second Q Third Q Fourth Q Annual Non-Citywide Days Citywide Days Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 16

Table 7 shows that for small hotels, RevPAR was on average $25.63 or +17.1% higher on days in which there was a citywide convention. Table 7: RevPAR for Small Hotels (<300 rooms) in downtown Vancouver Days with one or more citywide conventions $175.55 Days with no citywide conventions $149.92 Annual Average $159.31 $ Difference (Citywide days Non-Citywide days) $25.63 Percentage Difference (Citywide days over Non-Citywide days) +17.1% DEMAND (ROOMS SOLD) 8 LARGE HOTELS Annual demand or rooms sold at large hotels was on average +17.4% higher on days in which there was a citywide convention. Eleven out of twelve months experienced growth in 2016, apart from August (-0.2% lower on citywide days). Demand was significantly higher during the non-peak season months, such as January (+50.9% higher), December (+40.7%), March and April (both 23% higher than non-citywide days). Figure 14: Monthly Demand at Large Hotels (>300 rooms) in downtown Vancouver 7,000 6,000 5,000 4,000 3,000 2,000 1,000 4,826 4,352 3,883 3,199 5,999 5,821 5,789 5,790 5,647 5,423 5,468 5,585 5,638 5,406 4,980 5,458 4,606 4,404 4,538 4,050 5,061 5,046 4,369 3,586 - Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days 8 The number of rooms sold (excludes complimentary rooms). Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 17

Table 8: Demand for Large Hotels (>300 rooms) in downtown Vancouver Days with one or more citywide conventions 5,352 Days with no citywide conventions 4,560 Annual Average 4,850 Percentage Difference (Citywide days over Non-Citywide days) +17.4% DEMAND (ROOMS SOLD) SMALL HOTELS Annual demand at small hotels was on average +10.9% higher on days in which there was a citywide convention. Ten out of twelve months experienced growth in 2016, apart from August (-2.1%) and September (-0.1% lower on citywide days). Demand was significantly higher during the non-peak season months, such as January (+19.4% higher), October (+17.2%), March (+15.0%) and December (+14.6% higher than non-citywide days). Figure 15: Monthly Demand at Small Hotels (<300 rooms) in downtown Vancouver 6,000 5,000 4,000 3,615 4,316 4,478 4,264 5,223 5,321 5,316 4,861 4,701 4,541 5,441 5,408 5,698 5,612 5,539 5,588 5,580 5,424 4,454 5,221 4,468 4,415 4,151 3,851 3,000 2,000 1,000 - Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 18

Thousands Table 9: Demand for Small Hotels (<300 rooms) in downtown Vancouver Days with one or more citywide conventions 5,167 Days with no citywide conventions 4,661 Annual Average 4,847 Percentage Difference (Citywide days over Non-Citywide days) +10.9% ROOM REVENUE 9 LARGE HOTELS Annual room revenue at large hotels was on average +22.9% higher on days in which there was a citywide convention, all but two months experienced growth in 2016, with August (-2.2%) and September (-1.7%) being lower on citywide days. Revenue was significantly higher during the non-peak season months, such as January (+64.5% higher), April (+45.5%), December (+41.5%) and October (+33.6% higher on citywide days compared to non-citywide days). Figure 16: Monthly Average Revenue at Large Hotels (>300 rooms) in downtown Vancouver $2,000 $1,731 $1,800 $1,676 $1,616 $1,581 $1,600 $1,507 $1,505 $1,433 $1,479 $1,400 $1,325 $1,294 $1,315 $1,200 $1,055 $1,011 $969 $987 $964 $1,000 $921 $882 $903 $778 $811 $800 $728 $681 $600 $560 $400 $200 $ Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days 9 Total room revenue generated from the sale or rental of rooms. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 19

Thousands Table 10: Average Room Revenue for Large Hotels (>300 rooms) in downtown Vancouver Days with one or more citywide conventions $1,280,952 Days with no citywide conventions $1,042,565 Annual Average $1,129,843 Percentage Difference (Citywide days over Non-Citywide days) +22.9% ROOM REVENUE SMALL HOTELS Annual room revenue at small hotels was on average +17.2% higher on days in which there was a citywide convention, all but two months experienced growth in 2016, with August (-1.9%) and September (-1.5%) being lower on citywide days. Revenue was significantly higher during the non-peak season months, such as April (+35.0%), October (+34.8%), and January (+27.8% higher on citywide days than non-citywide days). Figure 17: Monthly Average Room Revenue at Small Hotels (<300 rooms) in downtown Vancouver $1,600 $1,400 $1,200 $1,000 $800 $600 $497 $636 $679 $621 $702 $871 $1,034 $765 $1,453 $1,461 $1,384 $1,289 $1,357 $1,242 $1,269 $1,090 $941 $1,250 $736 $992 $687 $700 $626 $600 $400 $200 $ Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Non-Citywide Days Citywide Days Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 20

Table 11: Average Room Revenue for Small Hotels (<300 rooms) in downtown Vancouver Days with one or more citywide conventions $1,039,734 Days with no citywide conventions $886,884 Annual Average $942,845 Percentage Difference (Citywide days over Non-Citywide days) +17.2% Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 21

CONCLUSION AND RECOMMENDATIONS Citywide conventions have a significant impact on average occupancy, ADR, RevPAR, demand and room revenue for both large and small hotels, particularly during the non-peak season months. LARGE HOTELS HOTELS WITH MORE THAN 300 ROOMS Average Annual Occupancy ADR RevPAR Demand Room Revenue Citywide Days 85% $236 $204 5,352 $1,280,952 Non-Citywide Days 73% $220 $166 4,560 $1,042,565 Difference (% Change) +12.5 percentage points +7.1% ($15.57 higher) +22.7% ($37.78 higher) +17.4% +22.9% SMALL HOTELS - HOTELS WITH LESS THAN 300 ROOMS Average Annual Occupancy ADR RevPAR Demand Room Revenue Citywide Days 87% $198 $176 5,167 $1,039,734 Non-Citywide Days 79% $183 $150 4,661 $886,884 Difference (% Change) +8.4 percentage points +7.8% ($14.32 higher) +17.1% ($25.63 higher) +10.9% +17.2% For nearly every month of the year, with the exception of August and September (which saw a minor decrease), both large and small hotels experienced a significant increase in average occupancy, ADR, RevPAR, demand and room revenue during citywide days compared to non-citywide days. The impact of citywides on hotel room demand is particularly evident during the traditionally slower shoulder season (non-peak season months of January to April and October to December). Recommendation: This analysis shows that citywides benefit both large and small hotels in downtown Vancouver in terms of generating additional business as measured by increased average occupancy, ADR, RevPAR, demand and room revenue, particularly during they non-peak season months. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 22

As such, it is beneficial for the hotel industry, including both large and small hotels, to continue working together with industry stakeholders to bring citywide conventions to Vancouver, especially from January- April and October to December, when the greatest impact is seen. STR collects data from a large sample of hotels in Metro Vancouver; therefore they are able to segment downtown Vancouver, other Vancouver and other Metro Vancouver. If purchased this geographically segmented data and conducted similar analysis as found in this report, it may demonstrate to hotel members outside of the downtown core that citywide conventions have a positive ripple effect on municipalities across Metro Vancouver. Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 23

APPENDIX A PARTICIPATING HOTELS The hotels sampled by STR are divided into the two classes, we have defined large hotels to be hotels with a capacity exceeding 300 rooms, and small hotels to be hotels with a capacity of less than 300 rooms. The hotels classified as large hotels include: 1. Sandman Vancouver City Centre 2. Hyatt Regency Vancouver 3. Four Seasons Vancouver 4. Fairmont Hotel Vancouver 5. Fairmont Pacific Rim Vancouver 6. Pan Pacific Vancouver 7. Fairmont The Waterfront 8. Pinnacle Hotel Vancouver Harbourfront 9. Marriott Vancouver Pinnacle Downtown Hotel 10. Westin Bayshore Vancouver 11. The Sutton Place Hotel Vancouver 12. Sheraton Hotel Vancouver Wall Centre The hotels classified as small hotels include: 1. Hotel BLU 2. Delta Hotel Vancouver Suites 3. Ramada Limited Vancouver Downtown 4. Hampton Inn Suites Vancouver 5. YWCA Hotel 6. Georgian Court Hotel 7. Opus Hotel 8. Comfort Inn Downtown Vancouver 9. Westin The Grand Vancouver 10. Days Inn Vancouver Downtown 11. Rosewood Hotel Georgia 12. Hotel Le Soleil 13. Metropolitan Hotel Vancouver 14. Shangri-La Vancouver 15. The Listel Hotel Vancouver 16. Sandman Vancouver Davie Street 17. Sunset Inn & Suites 18. Coast Coal Harbour Hotel 19. The Loden Vancouver 20. Rosellen Suites @ Stanley Park 21. Coast Plaza Hotel & Suites Vancouver 22. Best Western Plus Sands Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 24

23. Times Square Suites 24. Executive Hotel Vintage Park 25. Howard Johnson Hotel Vancouver 26. Ramada Vancouver Downtown 27. Holiday Inn Vancouver Downtown 28. Wedgewood Hotel 29. Residence Inn Vancouver Downtown 30. The Burrard 31. Best Western Plus Chateau Granville Hotel & Suites Effects of Citywide Conventions on Downtown Vancouver Hotels 2016 Page 25

2016 CITYWIDE CONVENTIONS Meeting Dates Group Name - Meeting Name 2016/01/10-2016/01/13 1. Professional Convention Management Association - 2016 Convening Leaders 2016/01/26-2016/01/29 2. Association for Mineral Exploration BC - 2016 Mineral Exploration Roundup Conference 2016/02/04-2016/02/05 3. Federation of Independent School Associations BC - 2016 FISA BC 50th Anniversary Convention 2016/02/16-2016/02/20 4. TED Conferences LLC - 2016 TED 2016/03/01-2016/03/12 5. NACE International - 2016 Corrosion 2016/03/02-2016/03/04 6. Globe Foundation of Canada - 2016 GLOBE Conference 2016/03/12-2016/03/13 7. Rugby Canada - 2016 IRB Sevens World Series 2016/03/17-2016/03/19 8. BC Dental Association - 2016 Pacific Dental Conference 2016/04/02-2016/04/07 9. Society of Interventional Radiology - 2016 Annual Scientific Meeting 2016/04/15-2016/04/21 10. American Academy of Neurology - 2016 Annual Meeting 2016/04/29-2016/05/01 11. Vancouver International Marathon Society - 2016 BMO Vancouver Marathon 2016/05/01-2016/05/04 12. Canadian Institute of Mining, Metallurgy & Petroleum - 2016 Annual Conference & Exhibition 2016/05/10-2016/05/12 13. United Way Worldwide - 2016 Community Leaders Conference 2016/05/16-2016/05/19 14. Mercedes-Benz USA, LLC (US Headquarter Office) - 2016 North American National Dealer Meeting & Field Meeting 2016/05/25-2016/05/29 15. Conservative Party of Canada - 2016 Convention 2016/05/31-2016/06/07 16. Cruise Lines International Association - 2016 cruise360 2016/06/12-2016/06/15 17. Million Dollar Round Table - 2016 Annual Meeting 2016/07/09-2016/07/13 18. Society for College and University Planning - 2016 Annual International Conference 2016/07/24-2016/07/29 19. IEEE Computational Intelligence Society - 2016 World Congress on Computational Intelligence 2016/08/17-2016/08/22 20. International Pediatric Association - 2016 International Congress of Pediatrics 2016/08/26-2016/09/04 21. Americas Masters Games - 2016 Americas Masters Games 2016/09/11-2016/09/14 22. Ernst & Young (NY) - 2016 Global New Partner Program 2016/09/25-2016/09/28 23. National Association of Mutual Insurance Companies - 2016 Annual Convention 2016/10/18-2016/10/22 24. American Society of Human Genetics - 2016 Annual Meeting 2016/10/26-2016/10/29 25. Child Neurology Society - 2016 Annual Meeting 2016/11/09-2016/11/12 26. College Of Family Physicians Of Canada - 2016 Family Medicine Forum 2016/11/14-2016/11/18 27. Standing Committee of the Global Symposium on Health Systems Research - 2016 Global Symposium on Health Systems Research 2016/11/27-2016/11/28 28. Mortgage Professionals Canada - 2016 National Conference 2016/12/03-2016/12/07 29. Learning Forward - 2016 Annual Meeting