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Hotel Industry Overview ORLA Convention: Oregon Lodging Industry Trends Breakout

Hotel Industry Overview ORLA Convention: Oregon Lodging Industry Trends Breakout. Allison Cowan Business Development Associate. Welcome!. Allison Cowan Business Development Associate. linkedin.com/in/allisoncowan. Allie_STR. 71%. of U.S. rooms participate with STR. STR provides monthly,

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Hotel Industry Overview ORLA Convention: Oregon Lodging Industry Trends Breakout

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  1. Hotel Industry OverviewORLA Convention:Oregon Lodging Industry Trends Breakout Allison Cowan Business Development Associate

  2. Welcome! Allison Cowan Business Development Associate linkedin.com/in/allisoncowan Allie_STR

  3. 71% of U.S. rooms participate with STR

  4. STR provides monthly, weekly and daily reports to more than worldwide hotels, which represent rooms. 47,000 6.1 million

  5. What We Do KPIs (Key Performance Indicators) Occ (Occupancy) ADR (Average Daily Rate) RevPAR (Revenue per Available Room) Raw Data Collected: Total Rooms Available (Supply) Total Rooms Sold (Demand) Total Room Revenue (Revenue)

  6. Presentation is available for download. To view this presentation, go to the “Data” drop-down menu on www.HotelNewsNow.com and click “Data Presentations”.

  7. Total U.S. Overview State of Oregon Deeper Dive Into Oregon Pipeline Future Performance Q&A AgendaOctober 14, 2013

  8. Total U.S. Review

  9. Demand Growth Back to Normal. RevPAR Driven by ADR. % Change Supply* 1.8 bn 0.7% Demand* 1.1 bn2.4% Occupancy 62.0% 1.7% ADR* $109 4.0% RevPAR* $68 5.8% Room Revenue* $121 bn 6.6% Total U.S. – Key Performance Indicators 12 MMA through August 2013 * All Time High

  10. July 2013: Highest Monthly Room Revenue EVER ($12.2 Billion)

  11. Favorable Supply / Demand Fundamentals for 2013 7.7% 2.3% -0.9% - 4.7% • 7.1% Total U.S. – Supply & Demand % Change 12 MMA January 1990 – August 2013

  12. ADR Growth Stalls. Smooth Sailing From Here? 7.5% 6.8% 4.0% -4.5% -8.9% Total U.S. – ADR & Demand % Change 12 MMA January 1990 – August 2013

  13. Positive RevPAR Growth For The Foreseeable Future 9% 8.6% 65 Months 112 Months 36 Mo. -2.6% -10.1% -16.8% Total U.S. – RevPAR % Change 12 MMA January 1990 – August 2013

  14. Inflation Adjusted ADRs Still Not Reached – Yet $119 2008 ADR Grown By CPI $107 $101 2000 ADR Grown By CPI $85 $104 $111 $107 $116 $85 Total U.S. – ADR $ and Inflation Adjusted ADR $, 2000 – 2014F 2000 – 2012 CPI from bls.gov, 2013– 2014 CPI from Blue Chip Economic Indicators

  15. State of Oregon

  16. High Growth, Surpassing Peak 72.3% 66.9% 63.4% 63.5% 58.8% 61.5% 62.3% Neighboring States: %Change & Actual OCC YTD August 2013

  17. California At Least $20 Higher Than Neighbors $130.67 $109.66 $99.08 $96.88 $104.99 $93.18 $87.04 Neighboring States: %Change & Actual ADR YTD August 2013

  18. Oregon Close To Double Digit RevPAR Growth $94.42 $73.35 $62.79 $61.54 $61.78 $57.27 $54.26 Neighboring States: %Change & Actual RevPAR YTD August 2013

  19. Deeper Dive Into Oregon

  20. Portland Market

  21. Portland Market Hotels 263 Rooms 25,924 Sample 89% Supply 6.3m 0.0% Demand 4.5m* 3.9% Occupancy 72% 4.0% ADR $107* 6.7% RevPAR $77* 11.0% Room Revenue $482m* 10.9% Portland Mkt: Key Performance Indicators August YTD 2013 *All time high

  22. Supply Not An Issue, Strong Demand Growth Continues Portland Mkt: Room Supply & Demand %Change 12MMA 2001 to August 2013

  23. Year After Year of (almost) Continuous Growth Portland Mkt: ADR, OCC & RevPAR %Change August YTD 2010– 2013

  24. Weekday= Sunday-ThursdayWeekend= Friday & Saturday

  25. Weekday OCC: Chart Topping Rooms Sold Portland Mkt: Actual Weekday OCC by Month2007 & Jan 10’- Aug’13

  26. Weekday ADR: Highest August Rate On Record +$6.87 Portland Mkt: Actual Weekday ADR by Month2007 & Jan 10’- Aug’13

  27. Weekend OCC: August Selling 9 Out Of 10 Rooms Portland Mkt: Actual Weekend OCC by Month2007 & Jan 10’- Aug’13

  28. Weekend ADR: Strong Rate Growth +$18.88 +$6.81 Portland Mkt: Actual Weekend ADR by Month2007 & Jan 10’- Aug’13

  29. Portland Submarkets • Beaverton/Sunset Hwy West: • Hotels: 35Rooms: 2,975 • Lake Oswego/ I-5 South: • Hotels: 47Rooms: 3,718 • Portland Airport/ Vancouver: • Hotels: 84 Rooms: 8,315 • Portland Downtown: • Hotels: 50 Rooms: 7,499 • Portland I-84/ I-205 East: • Hotels: 47 Rooms: 3,417 Portland Submarkets: August YTD 2013

  30. Downtown & Beaverton With Strong Performance 62% $75 80% $145 70% $88 68% $96 78% $101 Portland Submarkets: OCC & ADR %ChangeYTD August 2013

  31. 9%+ RevPAR Growth Across the Board $45.94 $113.68 $61.06 $64.56 $77.54 Portland Sub-Markets – RevPAR % ChangeYTD Ending August 2013

  32. Oregon Area Market

  33. Oregon Area Market Hotels 652 Rooms 38,973 Sample 55% Supply 9.4m* 0.4% Demand 5.5m* 5.7% Occupancy 57.9% 5.3% ADR $92* 3.1% RevPAR $53* 8.5% Room Revenue $503m* 9.0% OR Area Mkt: Key Performance Indicators August YTD 2013 *All time high

  34. Strong KPI= Favorable Supply/Demand Oregon Area Mkt: Room Supply & Demand %Change12MMA 2001 to August 2013

  35. Positive OCC/ADR Mix Across The Board Oregon Area Mkt: ADR, OCC & RevPAR &Change August YTD 2010– 2013

  36. Weekday= Sunday-ThursdayWeekend= Friday & Saturday

  37. Weekday OCC: Still Playing Catch Up From 2007 Oregon Area Mkt: Actual Weekday OCC by Month2007 & Jan 10’- Aug’13

  38. Weekday ADR: Breaking Records $9.82 $9.33 Oregon Area Mkt: Actual Weekday ADR by Month2007 & Jan 10’- Aug’13

  39. Weekend OCC:Finally Surpassing Peak Oregon Area Mkt: Actual Weekend OCC by Month2007 & Jan 10’- Aug’13

  40. Weekend ADR: Breaking Records…Again $9.94 $8.64 Oregon Area Mkt: Actual Weekend ADR by Month2007 & Jan 10’- Aug’13

  41. Oregon Area Submarkets • Bend/Redmond: • Hotels: 60 Rooms: 3,983 • Oregon West Area: • Hotels: 280Rooms: 16,462 • Eugene MSA: • Hotels: 71Rooms: 4,711 • Medford/ Grants Pass: • Hotels: 89 Rooms: 5,137 • Oregon East Area: • Hotels: 152 Rooms: 8,680 Oregon Area Submarkets: August YTD 2013

  42. 3 of 5 Submarkets Surpassing Peak 63% $104 61% $81 57% $98 63% $87 53% $83 Oregon Area Submarkets: OCC & ADR %Change YTD Ending August 2013

  43. Strong RevPAR Growth Across the Board $66 $49 $56 $55 $44 Oregon Area Sub-Markets – RevPAR % Change YTD Ending August 2013

  44. Pipeline In Construction: Ground has been broken Final Planning: Construction will begin within 12 months Planning: Construction will begin within 13-24 monthsPre-Planning: Construction will begin in more than 24 months

  45. Total U.S. – Rooms in Active Pipeline%Change From Last Year Rooms in the Active Pipeline Accelerating

  46. Under Construction Rooms Mostly In Middle Segments Total U.S. – Rooms Under Construction ‘000s Rooms, by Scale, August 2013

  47. Portland Market Pipeline Snapshot

  48. Oregon Area Market Pipeline Snapshot

  49. Forecasts

  50. Total U.S.: ADR to Drive RevPAR for the Next 2 Years Total U.S. Forecasts (%Change vs. Prior Year)2013 - 2014

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