US Hotel Industry SWOT Analysis

78 Pages·2015·9.94 MB·English

W R I
ELCOME EMARKS AND NTRODUCTION
Cliff Risman
Partner, Gardere Wynne Sewell LLP
10 Y S – DHC C
EARS TRONG ONTINUES TO
G B B !
ET IGGER AND ETTER
Attendance
700
600
500
400
300
200
100
0
2005 2006 2007 2009 2010 2011 2012 2013 2014 2015*
*Based on pre-registration
M U
ARKET PDATE
Dan Lesser
President and CEO, LW Hospitality Advisors LLC
U.S. Lodging Industry
Offensive or Defensive Game Plan?
2015 Dallas Hotel Conference
Presented by:
Daniel Lesser, President & CEO
LW Hospitality Advisors
570 Seventh Avenue, Suite 805
New York, NY 10018
USA
[phone] X101
[email protected]
www.lwhospitalityadvisors.com
October 21, 2015
Random Dan Lesser Thoughts
• If you bought between ‘09 and ‘11 consider selling now
• Hotels are fundamentally long term hold assets
• Off market does not equal below market
• Be vigilantly aware of new supply
• Brand overload
• A hotel company should merge with Airbnb
LW Hospitality Advisors | Page 2
Random Dan Lesser Thoughts
LW Hospitality Advisors | Page 3
U.S. Hotel Industry Macro Overview
1/1/2009 1/1/2011 11/1/2012 10/1/2015
Expanding Expanding
Economy Contracting Expanding
(Slowly) (Modestly)
Increasing Increasing
Jobs Declining Declining
(Slowly) (Modestly)
Consumer Spending Declining Expanding Increasing Increasing
Increased
Business Spending Declining Expanding Accelerating
(Now Stagnant)
Supply Growth Accelerating Stabilized Muted Accelerating
Continued
Room Night Demand Declining Growing Record Levels
Record Levels
U.S. Hotel Projected Projected
2008 2009 2010 2011 2012 2013 2014
Performance
2015 2016
Supply ▲ 2.6% ▲ 3.2% ▲ 2.0% ▲ 0.6% ▲ 0.5% ▲ 0.7% ▲ 0.9% ▲ 1.2% ▲ 1.4%
Demand ▼ 1.9% ▼ 5.8% ▲ 7.8% ▲ 5.0% ▲ 3.0% ▲ 2.2% ▲ 4.5% ▲ 2.9% ▲ 2.2%
Occupancy ▼ 4.4% ▼ 8.7% ▲ 5.7% ▲ 4.4% ▲ 2.5% ▲ 1.5% ▲ 3.6% ▲ 1.7% ▲ 0.8%
ADR ▲ 2.7% ▼ 8.8% ▼ 0.1% ▲ 3.7% ▲ 4.2% ▲ 3.9% ▲ 4.6% ▲ 5.1% ▲ 5.2%
RevPAR ▼ 1.8% ▼16.7% ▲ 5.5% ▲ 8.2% ▲ 6.8% ▲ 5.4% ▲ 8.3% ▲ 6.8% ▲ 6.0%
Source: (Data Only) STR, Inc.
LW Hospitality Advisors | Page 4
U.S. Hotel Industry SWOT Analysis- Strengths
Few economists believe the U.S. is near
recession
LW Hospitality Advisors | Page 5
U.S. Hotel Industry SWOT Analysis- Strengths
The industry is in a ‘Goldilocks’ equilibrium
LW Hospitality Advisors | Page 6