Hotel Market Analysis:Aspen, Colorado

Lindsay Stroda

Tuesday, October 25, 16

Geographical Area County: Pitkin County • Population: 17, 148Surrounding Cities Population:• Aspen: 6,658• Basalt: 3,857• Breckenridge: 2,800• Copper Mountain: 385• Estes Park: 5,858• Fort Collins: 150,000• Snowmass: 2,300• Telluride: 2,303• Vail: 4,531

Males: 52.1%Females: 47.9%

Average Household Size: 1.9 people

1.48%0.60%1.50%

7.49%

89%

Race

WhiteHispanicAsian African AmericanOther

Tuesday, October 25, 16

Visitor Profile Age• Under 25: 5%• 25-34: 16%• 35-44: 20%• 45-54: 22%• 55-65: 21%• 65+: 16%

Household Income• Under $50k: 13%• $50k-$99k: 22%• $100k-$199k: 34%• $200k+: 32%

Marital Status• Families w/ children at home: 35%• Empty-nesters: 33%• Singles w/out children: 16%• Couples w/out children: 16%

Top Feeder Markets• Colorado• Texas• California• Florida• New York• Illinois

Day13%

Overnight87%

Travelers

Average Length of Stay 5.5 Nights

44%56%

Transportation

GroundAir

Approximately 50,000 visitors each year

Tuesday, October 25, 16

Supply Unit/Pillows by Location

Aspen Property Count

Snowmass Property Count

Total

Units 2,293 1,822 4,115

Pillows 10,085 8,772 18,857

Aspen Comparison 2009 2012 % Change

Units 2,304 2,293 -0.5%

Pillows 9,385 10,085 6.9%

Unit (Aspen)Comparison

Hotel/Lodge Condo Private Home B&B Total

2009 1,160 976 100 68 2,304

2012 1,158 932 131 72 2,293

% Change -.17% -4.51% 31.00% 5.88% -.48%

Tuesday, October 25, 16

Aspen Properties 2012

0

375

750

1,125

1,500

Hotel/Lodge Condo Private Home B&B

2%5%

45%48%

Property Type

Hotel/LodgeCondoPrivate HomeB&B

9%

29%62%

Units by Rating

DeluxeModerateEconomy

Tuesday, October 25, 16

Development Pipeline• The 2012 AACP (Aspen Area Community Plan)

conducted an outreach to the public on thoughts about development. The feedback resulted in high opposition to building large deluxe lodging units and high support on building moderate and economy size lodging.

• The Hotel Jerome is opening their first full service luxury spa with all new renovations

• Kimpton Hotels and Restaurant is opening a Ski Resort called Sky Hotel at the base of Aspen Mountain that will be convenient for guests to get a lift up the mountain for skiing or hiking and biking in the summer.

• In November 2011, Aspen City Council approved a lodging proposal in the Lift 1A neighborhood:▫ 22 lodging units▫ room configuration to be broken down into

84 units with an average of 524 square feet▫ 100% housing mitigation for the lodging,

five condos, and 6,000 square feet of commercial space.

Sky Hotel

Tuesday, October 25, 16

Aspen Average Room Rate

$0

$150.00

$300.00

$450.00

$600.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average Room Rate for 2011

2011

The highest occupancy and room rates for Aspen are seen in December through March and June through August. December through March have the highest average room rates, ranging from an average of $542.30 in December between 2006 and 2011 and $419.89 in March between 2006 and 2012. Compared to other mountain resorts in Colorado, Aspen has the highest room rates.

Tuesday, October 25, 16

Occupancy Percentage Comparison

40%

48%

55%

63%

70%

2004 2005 2006 2007 2008 2009 2010 2011 2012

AspenTotal ResortsTotal Colorado

Tuesday, October 25, 16

RevPar Comparison

$0

$75.00

$150.00

$225.00

$300.00

20042005

20062007

20082009

2010 20112012

AspenTotal ResortsTotal Colorado

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Demand Plummets in 2009 compared to 2008

Aspen Occupancy ADR RevPar2008 $4362009 -31.1% $354, -15.8% -42%

Aspen Occupancy ADR2011 64% $2652012 70% $283, up 6.5%

Demand Rises in the August of 2012 compared to 2011

Tuesday, October 25, 16

Accommodation Revenue by Month

$0

$7,500,000

$15,000,000

$22,500,000

$30,000,000

Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

20112012

For Aspen, the busiest time of the year for tourists are December through March and June through August.

Tuesday, October 25, 16

Accommodation Revenue by Year

$0

$37,500,000

$75,000,000

$112,500,000

$150,000,000

2002200320042005200620072008200920102011

Aspen Accommodation Revenue

RevenueColumn1Column2

Tuesday, October 25, 16

Forecasts• Aspen is looking to make the area more appealing to younger people. • Some of the changes that the community liked are more outdoor

dining, upgrade of the Durant Street ice rink, nightclubs for young people, and hiring music students to play in local areas.

• Colorado resorts are using deals to bring in skiers for the season. They offer a great exclusive pass for a set rate and get a deposit of the deal in the Spring so skiers will be inclined to use the deal because they already paid for a part of it and the rest is due in the Fall. These deals will bring more tourism to the different skiing areas in Colorado.

• An article in the Aspen Times illustrated that the Aspen’s winter hotel reservations appears favorable already. There is already numerous reservations on the books, but they are still looking to fill the week between Christmas and New Year’s Day, which is usually a busy time. David Perry, Aspen Skiing Co. senior vice president for mountain operations, states that “from mid-January to late March looks positive”. The challenge to get people to Aspen will be “convincing travelers to book vacations before they know about snow conditions”. Last year, skiing visits fell 1.8% for Aspen and Snowmass.

• My thoughts: From studying Aspen, Co market, I believe that there will be more people visiting Aspen than ever before in the next 10 years. The economy is slowly emerging from the recession in 2008/2009 and is working its way back up to being profitable. There are more places to stay with great skiing packages that will give guests an incentive to spend their holidays and breaks in the beautiful mountains of Colorado. From articles, this past summer in Aspen seemed to do really well and they generated more income this summer than past summers due to famous events in Aspen including the Food and Wine Classic in June and the USA Pro Cycling Challenge in August. If Aspen continues to bring in tourists by hosting these events in the summer and promoting special price skiing packages to people around the world, I believe Aspen’s Tourism Market will do very well in the upcoming years.

Limelight Hotel

Tuesday, October 25, 16

References• pictures http://enewsspot.wordpress.com/2010/12/13/spectacular-destinations-for-winter-skiing-in-aspen-colorado/

http://www.propgoluxury.com/EN/PropertyNews/Colorado/• I went on www.aspenchamber.org to find population stats for the • http://www.city-data.com/city/Aspen-Colorado.html#top Socio-demographics for Aspen Population • http://www.stayaspensnowmass.com/bpr-aspen-homes-economy-general.php for hotels and lodging, condos, homes –

numbers and stats• I went looking for a PDF file and came across Aspen’s Lodging Sector which gave insight on the lodging industry in Aspen

and things to come http://www.aspenpitkin.com/Portals/0/docs/City/Comdev/Long%20Range%20Planning/2012%20Lodging%20Study/Lodging%20Study%20Phase%201%20Final%20Report.pdf

• Looking through the AspenPitkin PDF, they gave a link to another PDF titled Aspen Snowmass Transient Lodging Industry Study that gave helpful information on the number of accommodations in Aspen and what type of properties there are. I also found the occupancy rate and ADR to create the graphs and tables. http://www.aspenpitkin.com/Portals/0/docs/City/Comdev/Long%20Range%20Planning/2012%20Lodging%20Study/Aspen%20Snowmass%20Transient%20Inventory%20Study%2007%2001%2012%20v2.pdf

• http://www.aspentimes.com/apps/pbcs.dll/article I searched through the Aspen Times looking on the business tab and came across this article that showed how Colorado is trying to create deals for tourists to give them an initiative to come skiing

• http://www.worldpropertychannel.com/us-markets/vacation-leisure-real-estate-1/real-estate-news-aspen-snowmass-village-vail-beaver-creek-smith-travel-research-warren-klug-aspen-square-condominium-hotel-1511.php I found this website searching for Aspen Business and found comparisons for demand in 2008 and 2009 when the Recession hit.

• I looked in the Aspen Business Journal and found articles titled “Reports show impressive summer bookings” and “Aspen’s summer economy heats up” to see why the economy was doing so well this past summer.

• I found the forecast information through articles in The Aspen Times titled “Colorado resorts use deals to bring in skiers” and “First glimpse of Aspen’s winter hotel reservations looks favorable”. Pictures http://www.travelenvogue.com/specials-and-reviews/view/104/Things-To-Do-In-Aspen-Aspen-Activities-and-Attractions .com and http://www.robertmillmanphotography.com

• I found the accommodation revenue by going on the Department of Revenue website and looking at Financial Reports and then formulated my own graph. http://www.aspenpitkin.com/Departments/Finance-City-of-Aspen/Financial-Reports/

Tuesday, October 25, 16