Serviced Apartment Summit Europe Performance Overview Thomas Emanuel, Director of Business Development temanuel@str.com 2018 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
Agenda Global Overview Global Country Service Apartment Performance United Kingdom Serviced Apartment Overview Supply & Pipeline Forecast
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What we do Research Studies Whitepapers Event Impact Regional Performance Reviews Ad Hoc studies Analysis Compression Day of Week Event Impact Bespoke client reporting Performance Reports Supply Reports Forecast Reports Occ, ADR, RevPAR Supply/Demand Revenue P&L Existing supply Future supply Pipeline Characteristics Main KPIs Macro economic input Micro economic input 5 years/6 quarters/18 months
Global Overview
Significant demand growth across the world, except Central America Global Supply & Demand % Change, May 2018 YTD - Industry Supply Dema nd 7.6% 5.1% 5.3% 4.3% 2.7% 1.8% 1.8% 2.0% 0.9% 2.2% 2.3% 1.1% 3.0% 1.5% 3.3% 0.1% North Ame rica & Car ibbean Centr al America South America Eur ope Middle East Africa Asia Australia & Oc ea n ia
Global RevPAR % Change USD, Europe in EUR, Constant Currency, May 2018 YTD - Industry North America +3.5% Central America +2.8% Europe +3.6% Middle East -6.9% +22.2% Asia +4.8% +24.3% Northern Africa +4.8% +4.1% South America Southern Africa Australia & Oceania
Global Country Serviced Apartment Performance
Mixed picture across global serviced apartments Serviced Apartments Performance Occ, ADR & RevPAR % Chg, Local Currency May 2018 YTD 10% 8% Oc cu p an cy ADR RevPAR 6% 4% 4.4% 2% 1.7% 1.9% 0% -2 % -2.1% -1.1% -0.3% -4 % -6 % -8 % -1 0% Singapore UK UAE China Ge rm any Australia
Occupancy strong in key countries, Singapore leads the way in ADR Serviced Apartment Occupancy, ADR, RevPAR, May 2018 YTD, USD ADR RevPAR Oc cu p an cy 80% $250 75% 70% $200 65% $150 60% 55% $100 50% $50 45% 40% $0 Singapore Ge rm any UK UAE China Australia
United Kingdom Serviced Apartment Overview
2018 has experienced growth slowdown UK Serviced Apartments, KPIs Actuals and % Change, GBP, May 2018 YTD Serviced Apartments 75.9% 119.86 90.98 Occupancy ADR RevPAR -0.1% -0.9% -1.1% Overall industry incl. hotels 73.7% 87.53 64.49 Occupancy ADR RevPAR -0.1% +0.5% +0.4%
A mixed picture for key UK markets UK Key Cities Service Apartment RevPAR % Change, GBP, May 2018 YTD Scotland -8-8 Edinburgh Total UK Total UK: -1.1% 16 England NW 4 13 Manchester 2 Reg. UK: -0.4% 7 Birmingham M4 Corridor* -14-4 London SW England 7-7 SE England *M4 Corridor: Bracknell, Maidenhead, Newbury, Reading, Slough, Windsor & Wokingham 2016 STR. All Rights Reserved.
Occupancy in Birmingham highest Occupancy, ADR & RevPAR Actuals, GBP, May 2018 YTD ADR RevPAR Oc cu p an cy 90% 160 85% 140 80% 75% 120 70% 100 65% 80 60% 60 55% 50% 40 45% 20 40% 0 Manchest er M4 Corridor* NW E ng land Scotland SE England Edinbur gh SW England Lo n d on Birmingham *M4 Corridor: Bracknell, Maidenhead, Newbury, Reading, Slough, Windsor & Wokingham 2017 STR. All Rights Reserved.
London historical performance, occupancy slipping but remains high Occupancy, ADR & RevPAR Actuals, GBP, Full Year 2013-2017, May 2018 YTD ADR RevPAR Oc cu p an cy 90% 200 85% 180 80% 160 75% 140 70% 120 65% 100 60% 80 55% 60 50% 40 45% 20 40% 0 Lo n d on ' 13 Lo n d on ' 14 Lo n d on ' 15 Lo n d on ' 16 Lo n d on ' 17 Lo n d on ' 18 Y TD 2017 STR. All Rights Reserved.
Supply & Pipeline
Serviced apartment supply growth outpacing total accommodation UK Serviced Apartment Sector supply & growth Serviced Apartment supply Serviced Apartment Growth Tot al Accommodation Growt h 24,000 23,000 22,000 22,637 12% 10% 21,000 20,711 8% 20,000 19,000 19,173 19,761 6% 18,000 17,740 4% 17,000 16,000 15,000 2014 2015 2016 2017 2018 YTD 2% 0%
Serviced Apartment supply growth continues to outpace Hotels UK Serviced Apartments Historical & Projected Supply Serviced Apartment supply Serviced Apartment Growth Tot al Accommodation Growt h 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 15,000 2014 2015 2016 2017 2018 2019 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% NB. Pipeline data only includes active projects with opening dates, data from May 2018.
London by far the largest supply, Edinburgh firmly in second UK Existing Serviced Apartment Supply - Room Count May 2018 10,900 10,800 10,700 1,400 1,200 1,000 800 600 400 200 0 Lo n d on Edinbur gh Manchest er Li v er po o l Birmingham Dublin Aber deen Le e d s Gla sgow Reading Bristol Yor k
Triple digit increases due in Glasgow, Manchester, and Liverpool Serviced Apartment Active Pipeline vs Existing Supply (rooms), Data from AM:PM, June 2018 Existing Pipeline Bris tol Aberd een Reading Birmingham London Edinburgh Leeds York Liverpo ol Manchester Glas gow 5% 20% 31% 37% 38% 42% 42% 67% 105% 158% 184% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Incoming supply in UK cities UK Active Pipeline Room Count, Data retrieved from AM:PM: June 2018 Glasgow +184% +5% York Liverpool +105% +158% Manchester Active Pipeline % of Existing Supply
London due to see significant new supply London Service Apartment Active Pipeline, Data from AM:PM June 2018 Active Pipeline: +4.1 K rooms Opening 2018/2019: + 1.1k rooms
Forecast
STR s forecast overview for full year 2018 Forecast May 2018 Edition Recovery Continues Paris Moscow Brussels Strong Growth Amsterdam Athens Vienna Supply Challenges London Warsaw Hamburg
2018 Market Forecast UK key cities, a mixed year ahead Full Year 2018 RevPAR % change, May 2018 forecast edition +6.5% Birmingham Leeds Manchester Edinburgh London Glasgow -5.0%
Thank You! Thomas Emanuel temanuel@str.com 2018 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively STR ) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.