Bilzin Sumberg's New Miami Breakfast Series Hospitality: A Bird's Eye View of Miami and Beyond June 13, 2013 www.newmiamiblog.com
Panelist Presentations Max Comess Director, HFF Christian Charre Senior Vice President, CBRE Hotels Michael Tillman Director, The LeFrak Organization (Presentation Unavailable) www.newmiamiblog.com
Miami Hotel Market Overview What s Driving the Market? Dynamic and Evolving Market Drivers We Came here to Party and Find Permanent Employment Diverse and Growing Visitor Profile Learn Spanish and Portuguese and maybe Mandarin Incredible Fundamental Growth No End in Sight! Developing Submarkets More than Just Miami Beach Transformational Development Projects Gambling and Conventions and Golf Resorts, Oh My! All-Time Investment Peak Strategic Investments are Overriding Economic Investments Major Impending Supply Offering Higher Profile Hotel Product Go North, Young Man Development Trends Heading Northward Up the Beach Introduction of International Brands COMO, Faena, East, and More to Come Where are the Value Plays? Non-Oceanfront Revival, or Go to the Mainland Miami Hotel Market Overview HFF, L.P. Presented at Bilzin Sumberg's New Miami Breakfast Series Hospitality June 13, 2013
Miami Hotel Market Overview Hotel Market Performance Strongest hotel market in the country through April Second highest RevPAR growth among the top 25 markets! Top Five Domestic Hotel Markets (April 2013 YTD) Rank City Occupancy ADR ($) RevPAR ($) (April 2013) RevPAR ($) (April 2012) 4/2012 to 4/2013 % Change YTD 1 Miami-Hialeah, FL 84.6% 213.80 180.92 159.23 13.6% 2 New York, NY 79.9% 223.79 178.78 163.79 9.1% 3 Oahu Island, HI 84.9% 205.09 174.16 147.69 17.9% 4 San Francisco/ San Mateo, CA 76.8% 169.83 130.37 116.34 12.3% 5 New Orleans, LA 71.9% 160.14 115.17 105.09 10.6% Source: Smith Travel Research Top Five Domestic Hotel Markets (2012) Rank City Occupancy ADR ($) RevPAR ($) (2012) RevPAR ($) (2011) 2011 to 2012 % Change YTD 1 New York, NY 83.7% 251.59 210.56 198.52 6.1% 2 Oahu Island, HI 84.7% 183.51 155.37 133.11 16.7% 3 San Francisco/ San Mateo, CA 80.4% 171.72 137.99 122.36 12.8% 4 Miami-Hialeah, FL 76.4% 163.59 124.92 115.76 7.9% 5 Boston, MA 71.8% 158.68 114.00 105.22 9.1% Source: Smith Travel Research Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Visitor Profile Visitation to Miami is at an all-time high, reaching nearly 14M visitors in 2012. Nearly half of all visitors are from international markets, with Brazil leading the way. Miami Visitor Statistics Visitors 2012 2011 2010 2009 2008 Domestic 7,074,900 6,948,500 6,544,000 6,251,500 6,341,400 % of Total 50.9% 51.7% 51.9% 52.4% 52.3% International 6,833,700 6,495,700 6,060,100 5,684,400 5,787,200 % of Total 49.1% 48.3% 48.1% 47.6% 47.7% South American 3,435,600 3,182,900 2,836,800 3,549,500 2,480,100 Central American 550,100 537,600 525,100 517,300 540,000 Caribbean 718,800 702,800 688,500 682,100 702,100 Europe 1,368,400 1,324,700 1,306,500 1,279,000 1,360,600 Canada 640,500 627,900 587,400 537,700 573,500 Other 120,300 119,800 115,800 118,800 130,900 Total 13,908,600 13,444,200 12,604,100 11,935,900 12,128,600 Growth in international visitation is great news, because international visitors spend more than domestic visitors a lot more. Miami Visitor Expenditures (in Billions) Visitors % Change YOY 2012 2011 2010 2009 2008 Domestic 5.6% 7,482 7,089 6,485 5,954 6,557 International 4.5% 15,183 14,529 12,429 11,157 10,745 Total 4.8% 22,665 21,617 18,913 17,111 17,302 Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Miami Beach Development Pipeline Major Hotel Developments Moving North Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Miami Beach Non-Oceanfront Hotel Development/Recent Openings Investors Moving to Non-Oceanfront Assets for Lower Basis/Redevelopment Opportunities Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Brickell/Downtown Hotel Development Pipeline Brickell/Downtown/Doral Continue to See Large-Scale Hotel Projects and Select Service Development Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Major Miami Beach Hotel Projects Faena Miami Edition South Beach King & Grove Versailles The 1 Hotel & Residences Miami Hotel Market Overview HFF, L.P.
Miami Hotel Market Overview Transformational Miami Developments Miami Beach Convention Center Redevelopment Genting/Resorts World Development Swire Brickell CityCentre East Hotel Development Miami Hotel Market Overview HFF, L.P.
THE CARIBBEAN MARKET UPDATE June 13, 2013
CARIBBEAN TRENDS Luxury/Upper Up for Caribbean ADR and RevPAR $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $50.00 $0.00 2007 2008 2009 2010 2011 2012 YTD Apr 2012 ADR RevPAR YTD Apr 2013 % Luxury/Upper Up for Caribbean 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Occupancy 2007 2008 2009 2010 2011 2012 2013 YTD Apr 2012 YTD Apr 2013 Source: STR Occupancy 2 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
TRANSACTIONS IN THE CARIBBEAN 2011-2013 Year Hotel Location Rooms 2013 Amanyara Providenciales, T&C 40 2013 Altamer Anguilla 3 2013 Mallihouhana Hotel & Spa Long Bay Village, BVI 55 2013 Veranda Resort & Residences Providenciales, T&C 168 2012 Paradise Island Harbour Resort Nassau, Bahamas 246 2012 Fairmont Hamilton Princess Hamilton, Bermuda 410 2012 Royal Island Resort Royal Island, Bahamas 80 2012 Breezes Runaway Bay Saint Anne, Jamaica 266 2011 Rosewood Little Dix Bay Resort Spanish Town, BVI 100 2011 Viceroy Anguilla Anguilla 166 2011 San Juan Marriott Resort & Stellaris Casino San Juan, Puerto Rico 525 Source: Real Capital Analytics, CBRE 3 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
CARIBBEAN/MEXICO PIPELINE Year # Hotels # Rooms Breakdown 2013 42 Hotels 6,556 7 Luxury (2,387 rooms) 10 Upscale (1,439) 2014 53 Hotels 9,799 9 Luxury (2,467 rooms) 18 Upper Midscale (2,067 rooms) TOTAL 95 Hotels 16,355 Source: STR Hotels are expected to open in the next two years 4 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
CARIBBEAN PIPELINE 5 2 1 4 2 2 10 Anguilla Aruba Bahamas 1 Barbados 3 6 3 1 1 Cayman Islands Dominica Dominican Republic Haiti Jamaica 15 Netherlands Antilles Puerto Rico St Kitts / Nevis St Lucia Turks / Caicos Islands Source: STR Includes project in construction, final planning, and planning stages. 5 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
LARGEST CARIBBEAN PROJECTS IN CONSTRUCTION Projects Unit Counts Location Grand Hyatt Baha Mar 733 Bahamas Secrets Gems @ Cap Cana 350 Dominican Republic Now Gems @ Cap Cana 350 Dominican Republic Ritz Carlton Aruba 320 Netherland Antilles Mondrian Baha Mar 310 Bahamas Crown Plaza @ the Mall of San Juan 225 Puerto Rico Westin Punta Cana 200 Dominican Republic Source: STR, CBRE 6 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
INDUSTRY CHALLENGES One up What is the biggest challenge for Caribbean tourism? 9% Other 18% Increased Travel Costs 73% Fragile global economic recovery Source: KPMG 7 CBRE BILZIN SUMBERG CARIBBEAN MARKET UPDATE
For more information regarding this presentation please contact: Christian Charre Senior Vice President T +1 305 381 6427 F +1 305 205 6722 Email.christian.charre@cbre.com
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