Excellence in Hotel Ownership and Operations Market trends and outlook Anders Nissen, CEO Pandox Hotel Market Day 2017 Nov 21, 2017 This presentation may contain forward-looking statements. Such statements are subject to risks and uncertainties that could negatively affect our business and results. Please read our most recent annual report and interim report for a better understanding of these risks and uncertainties.
The world of travel 2016 A record year Source: World Tourism Organisation (UNWTO)
Asia 9% 1,235m international arrivals +46m vs. 2015 Africa World Americas Europe -4% 8% 4% 3% 2% Middle East Source: World Tourism Organisation (UNWTO)
Asia 9% 1,235m international arrivals +46m vs. 2015 Africa World Americas Europe -4% 8% 4% 3% 2% Middle East Source: World Tourism Organisation (UNWTO)
Asia 9% 1,235m international arrivals +46m vs. 2015 Africa World Americas Europe -4% 8% 4% 3% 2% Middle East Source: World Tourism Organisation (UNWTO)
The world of travel 2017 Strongest H1 since 2010 Source: World Tourism Organisation (UNWTO)
1,271m international arrivals +36m YTD Middle East Europe Africa World Asia Americas 9% 8% 8% 6% 6% 3% North America 2% Source: World Tourism Organisation (UNWTO)
1,271m international arrivals +36m YTD Middle East Europe Africa World Asia Americas 9% 8% 8% 6% 6% 3% North America 2% Source: World Tourism Organisation (UNWTO)
1,271m international arrivals +36m YTD Middle East Europe Africa World Asia Americas 9% 8% 8% 6% 6% 3% North America 2% Source: World Tourism Organisation (UNWTO)
The world of travel Outlook for 2030 Source: World Tourism Organisation (UNWTO)
Solid growth expected in international arrivals 1.3bn international arrivals 2017 1.8bn international arrivals 2030 Source: World Tourism Organisation (UNWTO)
Solid growth expected in international arrivals 1.3bn international arrivals 2017 1.8bn international arrivals 2030 Source: World Tourism Organisation (UNWTO)
Emerging markets to grow twice as fast as developed markets 2010-2030 2.2% 4.4% Developed markets Emerging markets Source: World Tourism Organisation (UNWTO)
Emerging markets share of international arrivals to almost double by 2030 57% 2030 30% 1980 More than 1,000m arrivals expected from emerging markets in 2030 Source: World Tourism Organisation (UNWTO)
Emerging markets share of international arrivals to almost double by 2030 57% 2030 30% 1980 More than 1,000m arrivals expected from emerging markets in 2030 Source: World Tourism Organisation (UNWTO)
International tourism has grown faster than world trade for the past five years International tourism now represents 7 percent of the value of world exports Hospitality represents 10 percent of world GDP Source: World Tourism Organisation (UNWTO), World Travel & Tourism Council (WTTC)
Key cities RevPAR growth snapshot YTD September, 2017 Los Angeles 0% New York -1% Washington +4% Miami -4% London +7% Paris +9% Berlin +3% Athens +9% Dubai -4% Moscow +2% Shanghai 3% Tokyo +1% Rio de Janeiro -50% Sao Paulo 0% Cape Town +10% Source: STR Sydney +6%
Market trends
1 Urbanisation
More than half of the world s population today live in cities 34% 55% 65% 1960 2016 2050 Source: United Nations
More than half of the world s population today live in cities 34% 55% 65% 1960 2016 2050 Source: United Nations
More than half of the world s population today live in cities 34% 55% 65% 1960 2016 2050 Source: United Nations
More than 1.5m people move to cities every week Source: PWC
85% of world GDP generated in cities 80% of world greenhouse gas emissions 75% of world resource consumption Source: PWC
85% of world GDP generated in cities 80% of world greenhouse gas emissions 75% of world resource consumption Source: PWC
85% of world GDP generated in cities 80% of world greenhouse gas emissions 75% of world resource consumption Source: PWC
2 The sharing economy
Home-sharing is one of the biggest sectors in the sharing economy Airbnb is a nice product mainly for consumers Legislation is coming and growth is slowing Home-sharing is here to stay and a good complement to hotels Source: The Guardian, The New York Times, CN Traveler
3 Hybrid hospitality
The hotel industry is responding to Airbnb Innovation by smaller hotel companies seeking a position between traditional hotels and home-sharing sites Hotel products which previously needed multiple facilities are today found in one hotel
Source: www.zoku.com
4 The lease renaissance
Market development
Key international destinations (RevPAR growth) 2014 2015 2016 2017 YTD Sep 2017 Sep R3M USA +8.3% +6.3% +3.2% +2.6% +1.9% New York +2.6% +0.9% -1.8% -0.7% -1.3% Montreal +9.9% +7.3% +8.8% +12.3% +6.4% Europe +5.8% +8.6% +2.1% +6.5% +6.9% London +3.3% +1.4% -0.9% +6.5% +1.9% Berlin +4.5% +8.4% +3.5% +3.0% +0.7% Brussels +3.3% +2.1% -18.3% +19.2% +30.6% Stable Stable with downside risk Growth Stable with growth potential Stable with growth potential Stable Growth Source: STR
Key regional destinations (RevPAR growth) 2014 2015 2016 2017 YTD Sep 2017 Sep R3M Frankfurt* +8.8% -2.0% -2.0% +0.1% +9.2% Stockholm +1.8% +9.3% +7.7% +0.1% -3.5% Copenhagen +3.8% +11.0% +13.2% +5.2% +1.1% Helsinki * +2.0% +1.9% +7.1% +7.8% +7.1% Oslo +0.9% +8.3% +2.7% +11.5 % +10.9% Stable Stable with downside risk Stable with downside risk Growth Growth Source: *STR, Benchmarking Alliance
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