Scotland's hotel performance - Hot.E 2013

Spotlight on Scotland @2013 STR Global www.strglobal.com www.strglobal.com

Spotlight on Scotland Performance of Scotland’s key destinations Naureen Ahmed

Manager, Marketing and Analysis

HOTEL INVESTMENT CONFERENCE EUROPE – HOT.E

September 24th 2013

Spotlight on Sctoland @ 2013 STR Global

Spotlight on Scotland @2013 STR Global www.strglobal.com

Agenda

Global Overview

Where is Europe today?

Focus on Scotland

Comparison to UK Markets

Forecast


Our coverage

As of August 2013

32,385 hotels

3,810,279 rooms

672 hotels

106,076 rooms

640 hotels

116,025 rooms

486 hotels

127,280 rooms

8,068 hotels

1,108,215 rooms

4,688 hotels

961,896 rooms


Global performance

As of August 2013

Europe €

YE11 YE12 YTD 13

5.4% 4.4% 0.5%

Asia Pacific $

YE11 YE12 YTD 13

3.8% -0.3% -3.8 %

North America $

YE11 YE12 YTD 13

8.0% 6.4% 5.7%

Middle East & Africa $

YE11 YE12 YTD 13

-2.1% 5.4% 5.5%


European Regions Occ/ADR/RevPAR

Aug YTD 2013 & YTD 2012 in €

YTD 2012 Occ ADR RevPAR

Total 65.6 103.89 68.15

Eastern 58.6 88.30 51.73

Northern 70.0 99.61 69.74

Southern 62.1 103.50 64.24

Western 65.4 113.92 74.53

YTD 2013 Occ ADR RevPAR

Total 67.2 101.97 68.49

Eastern 60.6 84.47 51.22

Northern 72.5 94.16 68.24

Southern 63.1 106.22 67.03

Western 66.1 113.68 75.18


Focus on Scotland


Scotland Supply / Demand / RevPAR

£20

£25

£30

£35

£40

£45

£50

£55

£60

£65

£70

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Supply Demand RevPAR

12 month moving average Jan 2003 – Aug 2013 in GBP


Scotland Recent Monthly Performance

Occ and ADR Percent change in GBP

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Occ ADR


All Scottish markets in recovery

Occ and ADR in GBP

40%

50%

60%

70%

80%

90%

100%

£40

£45

£50

£55

£60

£65

£70

£75

£80

£85

£90

ADR Occ


Scotland Classes

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

£0

£20

£40

£60

£80

£100

£120

£140

£160

£180

Luxury Upper Upscale Upscale Upper Midscale Midscale/Economy

Occ 12 Occ 13 ADR 12 ADR 13

YTD Aug 2012 and 2013 Occ and ADR in GBP


Existing Room Supply & Pipeline

As of July 2013

1% 8%

15%

11%

5% 17%

43%

Luxury Upper Upscale

Upscale Upper Midscale

Midscale Economy

Independent

Supply

14%

6% 7%

13%

14%

25%

21%

Luxury Upper Upscale

Upscale Upper Midscale

Midscale Economy

Unaffiliated

Pipeline


UK markets


Selected UK Markets

0 5,000 10,000 15,000 20,000 25,000 30,000

Stirling+

St Andrews+

Dundee+

Inverness

Belfast

Aberdeen

Cardiff

Liverpool

Glasgow

Birmingham

Edinburgh

Manchester

Greater London

Room Count

+110,000

Aug 2013 Room Count


Scottish Markets

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Supply Demand

YTD Aug 2013 Supply and Demand %Chg


Selected UK cities

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Occ ADR

YTD Aug 2013 %Chg Occupancy and ADR


Selected UK cities

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

£0

£20

£40

£60

£80

£100

£120

£140

£160

ADR Occ

YTD Aug 2013 Occ and ADR in GBP


Selected Hotel Market Forecasts

London – 3.4%

Regional UK – 2.0%

Edinburgh – 2.8%

Glasgow – 7.5%

Manchester – 4.8%

Birmingham – 1.2%

RevPAR Growth rates for year end 2014

Source: International Congress and Convention Association - ICCA


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Contact

Naureen Ahmed

+44 (0)207 922 1965 [email protected]

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Scotland's hotel performance - Hot.E 2013