Bank of Ireland Business Banking Event 8 th November 2016 Sarah Duignan Director, Client Relationships - STR sduignan@strglobal.com 2016 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 Brief World Overview region by region Europe is Dublin ahead or behind it s European neighbours? Ireland the Good, the Good and the Good Focus on Dublin double digits continue The Future Pipeline & Forecast Questions
STR Coverage Our Sample Hotels & Hotel Rooms +34.8K +4,100K +9.4K +1,200K +780 +193K +8.1K +1,500K +1.1K +179K +780 +143K Hotels Rooms
Global RevPAR % Change, September 2016 YTD Developed markets hold steady, Emerging markets face headwinds North America +3.5% Central America +2.7% Northern Africa -0.9% Europe +2.2% Middle East Asia -9.3% -0.7% South America +8.5% Southern Africa +6.6% Australia & Oceania +3.8% USD, Europe in EUR, Constant Currency
Global Supply & Demand % Change, September 2016 YTD Subdued supply growth in developed markets, significantly higher in emerging markets Supply Demand 1.5% 1.5% 0.8% 4.1% 3.2% 0.6% 0.8% 4.7% 2.0% 1.2% 3.5% 5.0% 1.6% 2.9% North America & Caribbean -2.1% -3.2% Central America South America Europe Middle East Africa Asia Australia & Oceania
Europe is Dublin ahead or behind it s European neighbours?
Europe Main KPIs, September 2016 YTD Flat occupancy with some rate growth 70.9% 112.7 79.9 Occupancy ADR RevPAR +0.2% +2.0% +2.2% EUR, Constant Currency
Europe RevPAR % Change, September 2016 YTD Top-end hotels have had a challenging year RevPAR %Chg Branded RevPAR %Chg Unbranded 7.0% 4.9% 4.9% 4.4% 4.9% 3.9% 4.4% -0.4% -0.9% -2.9% Luxury Upper Upscale Upscale Upper Midscale Midscale & Economy EUR, Constant Currency
Europe Cities Occupancy, ADR & RevPAR, September 2016 YTD 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% ADR RevPAR Occupancy 250 200 150 100 50 0 EUR
Europe RevPAR % Change, September 2016 YTD The impact of terror attacks are clear Helsinki 10 22 5 Edinburgh 16 Copenhagen Dublin 19 Amsterdam 4 11 Warsaw 4 Berlin London -2-23 Brussels 4 Prague 40 St. Petersburg 15 Moscow Kiev Paris -15 5-2 Zurich Budapest Barcelona 9 Lisbon 5 11 Madrid Rome 2 5 7 Belgrade -41 Athens Istanbul Local Currency
Ireland the Good, the Good and the Good
All Ireland ADR driving double digit recovery Occ/ADR/RevPAR 12 MMA % change - Jan 2007 to September 2016 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Occupancy % change ADR % change RevPAR % change RevPAR positive growth 68 months -30% 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUR, Constant Currency
Regional Ireland not as robust as Dublin but very close Occ/ADR/RevPAR 12 MMA % change - Jan 2007 to September 2016 20% 15% 10% Occupancy % change ADR % change RevPAR % change RevPAR positive growth 70 months 5% 0% -5% -10% -15% -20% -25% -30% 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUR, Constant Currency
Key Northern & Southern Irish markets Absolute YTD RevPAR & RevPAR % change, September 2016 YTD 43.35 60.27 55.05 109.88 86.36 78.28 86.81 EUR
Focus on Dublin double digits continue
Dublin almost 5.5 years positive RevPAR % change Occ/ADR/RevPAR 12 MMA % change Jan 2007 to September 2016 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Occupancy % change ADR % change RevPAR % change RevPAR positive growth 65 months -30% 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUR, Constant Currency
Number of Days Compression analysis Dublin High compression (>90%) occupancy nights drive a 41% higher ADR 61% increase in high compression nights boosting overall performance 140 120 100 41% 61% 160 140 120 80 60 100 80 60 40 40 20 20 0 0 < 70 70>80 80>90 >90 Occupancy (%) EUR
Dublin submarkets Absolute Occupancy % and ADR, in Euros September 2016 YTD 95% 90% 85% 80% 75% 70% Dublin City Centre Dublin Airport Dublin Outer 180 160 140 120 100 80 60 40 20 0
Summary Ireland, Ireland Regional & Dublin Main KPI s September 2016 YTD Occupancy ADR RevPAR Ireland All Ireland Regional 79.9% 123.29 98.56 +1.6% +15.4% 72.6% 109.09 +17.3% 79.19 +2.1% +10.1% +12.4% Dublin 84.2% 130.43 109.88 EUR +1.3% +17.8% +19.4%
What does the future hold?
Europe Pipeline, Top 10 September 2016 Report, Pipeline by Room Count Existing Pipeline Ireland Italy Netherlands France Poland Turkey Russia Germany United Kingdom 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 Thousands
Ireland - Top 5 Arrival Source Destinations 2017 # of international arrivals in thousands 6,000 5,000 4,000 8.8% 11.00% 9.00% 7.00% 5.00% 3,000 2,000 0.5% 1.4% -0.7% -1.6% 3.00% 1.00% -1.00% 1,000-3.00% 0 5,929 1,353 658 483 377-5.00% United Kingdom United States Germany France Spain Source: Tourism Economics
Dublin - Top 5 Arrival Source Destinations 2017 # of international arrivals in thousands 1,800 1,600 1,400 8.4% 11.00% 9.00% 7.00% 1,200 5.00% 1,000 800 600 400-1.4% 1.9% 0.6% 0.2% 3.00% 1.00% -1.00% 200 0-3.00% 1,544 1,008 471 306 279-5.00% United Kingdom United States Germany France Spain Source: Tourism Economics
2017- Occupancy Full 2017 Market forecast Key EU Performances +10% Brussels Milan, Rome, Paris, Budapest, Athens 0% Manchester, Glasgow, Amsterdam, Frankfurt, Edinburgh, Moscow Vienna, Prague, Madrid, Berlin, Zurich, Barcelona Warsaw, London, Dublin, Munich Dubai -3.0%
2017- ADR Full 2017 Market forecast Key EU Performances +7.0% 0% Dublin, Frankfurt, Amsterdam, Moscow, Edinburgh, Madrid, Barcelona Prague, Warsaw, Manchester, Berlin, Budapest, Athens, Glasgow, Brussels Vienna, Milan, Paris, Zurich, Rome, Munich, London Dubai -5.0%
A Rapidly Changing World
Questions? Thank You! Sarah Duignan Director Client Relationships, STR sduignan@strglobal.com 2016 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.