HICAP Update APAC markets performance and development outlook. 15 March Jesper Palmqvist Area Director Asia Pacific.

Transcription

1 HICAP Update 2017 APAC markets performance and development outlook 15 March 2017 Jesper Palmqvist Area Director Asia Pacific 2017 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.

2 II III IV What s hot? What isn t yet Rooms ahead Optimizing high demand 2017 STR, Inc. All Rights Reserved.

3 What s hot and why? Arrivals Supply Development & spread Performance +26% 2016: 10 million 75% OCC Millions 3.0 ADR 70% % 60% %

4 What s hot and why? Arrivals Supply Stability Performance $200 ADR $180 $160 $140 $ Occupancy already high - This rates growth creates a new and stronger value proposition for New Zealand investment

5 What s hot and why? Arrivals Supply Regional Performance & Outlook +8% Chūgoku + Shikoku Hokkaido +9% Continued growth likely strong regional focus Game changers include upcoming minpaku regulation, integrated resorts bill passed in the Diet Int l arrivals into Japan 2011: 6m 2016: 24m 2020: 40m

6 What s hot and why? Stability Supply & Venues ROI Economy % RevPAR growth (12MMA) Investors keep liking the overall stability, Sydney/Melbourne still good outlook China dependency - the iron ore rally is over uncertainty for volatile regional markets

7 What s hot and why? Rates Supply Spread Performance & Long game North India +6.9% Central India +6.6% South India +5.6% While barriers of entry and development challenges for int l investment prevail, there are indicators showing signs of long-term growth (post demonetization)

8 What s hot and why? Long game Scope Yielding Performance & Outlook Investors have appreciated that Indonesia has shown a good capability to navigate through decreased demand, rates not dropping too much OCC Millions ADR

9 I What s not there yet -5% Supply Arrivals Rate pressure -11% Source Market Supply Politics & Risk Special mention 2017 STR, Inc. All Rights Reserved.

10 Rest of the world? Many markets with good growth, particularly in Europe Colombia Germany Czech Republic Romania Bulgaria Poland Russia Hungary Austria UK Regional Holland 2017 STR, Inc. All Rights Reserved. Spain

11 II Rooms ahead - Seeing a shift to Upper Midscale APAC Pipeline Under Contract by Chain Scales, as per Jan 2017 with share and growth Under Contract Pipeline 28% 29% Pipeline Share Change since 12 months ago 16% 19% +4% +5% -8% +41% +7% Luxury Upper Upscale Upscale Upper Midscale Midscale & Economy 8%

12 II % Pipeline of Rooms ahead APAC Pipeline total rooms top 10 by country, as per Jan 2017 Growth of pipeline compared to 2016 Negative growth in past 12 months helped drive performance +10% Vietnam number speaks to the recent pace in pipeline growth The country will see a 38% increase in new rooms over existing supply % +8% +27% +65% +16% -11% +26% -11% 0 Mainland China Indonesia India Malaysia Australia Vietnam Thailand Japan South Korea Philippines

13 V Optimizing high demand - Takeaways Comparing ADR premium during room nights with high vs low occupancy in 2016 Best in class: Phuket consistently very high rates during compression 52% ADR premium during % occupancy Australia generally does well in optimizing rates Hong Kong & Tokyo kick in over 90% - below that ADR growth moderate Singapore & Hanoi lower ADR increase, even at very high occupancy

14 II III IV What s hot Vietnam Japan New Zealand Australia Indonesia India What isn t yet Singapore Maldives Rooms ahead More Upper Midscale coming Vietnam strongest growth Who captures opportunities abound? Big variations around the region Phuket best in class Summary Questions? apsales@str.com STR, Inc. All Rights Reserved. Any 2017 reprint, STR, Inc. use All or Rights republication Reserved. 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.