Making of a Market: Vienna Market Overview

Patrick Adamle, Partner, MRP hotels Global Tourism Development

Overview Global Tourism Development

Global “Inbound Tourism” – Arrivals (mio.) Tourism Expenditures (bn. USD) 2008-18 ∆ 1924 % CAGR CAGR 1995-2017 1995-2017

4,25% 5,61%

CHN

CAGR CAGR USA 2010-2017 2010-2017

4,85% GER 5,34% UK FRA CAN Forecast

In short, … In short, … … total arrivals grew for the eight consecutive … a substantial part of total tourism expenditures year in 2017. This record breaking trip is are spent by Chinese tourists. After a slight

Source: UNWTO Annual Report Annual Source:UNWTO expected to continue in the upcoming years. decrease in 2016 amounts spent soar again in 2017.

Annotation: CAGR = compound annual growth rate. Tourism Trend

2012 - 2018 2012 - 2018 Overnights CAGR Overnights CAGR The 5,5% Poland 6,2% Netherlands Overnights CAGR Overnights CAGR Warsaw 6,9% Amsterdam 8,2%

The Netherlands Poland 2012 - 2018 Germany 2012 - 2018 Overnights CAGR Overnights CAGR Austria Germany 2,7% Austria 2,3% Overnights CAGR Overnights CAGR Berlin 4,7% Vienna 5,1% Source: Statistic Poland, StatistikAustria,Statistisches StatisticsBundesamt Netherlands Deutschland, Source:StatisticPoland,

Annotation: CAGR = compound annual growth rate.

68 Tourism Market Vienna

Deep Dive Marketsnapshot Vienna

Overnights & Room-Supply Seasonality (2018)

CAGR 2008-2018

Overnights 4,5% > Supply Growth 2,9% Source: Eurostat, Fairmas, Tourismus Wien Wien Fairmas, Source:Eurostat, Tourismus Marketsnapshot Vienna

YTD June Overnights Comparison YTD June Keyfacts Comparison

10,0% YTD 2018 YTD 2019 %-Change

4,0% 4,4% OCC 71,1 74,2 4,4 5,0% 5,4% 5,8% ADR 96,58 107,98 11,8 3,1%

RevPAR 68,65 80,14 16,7

Rooms opened in the first half of 2019: 303 Rooms to open in the second half of 2019: 600 Source: Eurostat, Fairmas, Tourismus Wien Wien Fairmas, Source:Eurostat, Tourismus Source: Eurostat, Fairmas, Tourismus Wien Marketsnapshot Vienna

In million -0,8% -0,8% Airport Total Passengers Airport carriedTotal Passengers 2,4% 1,4% 1,8% 4,5% 10,8% Izmir (TUR) (FRA) Calvi (TWN) Taipeh (QAT) Doha (CAN) Montreal (MAR) Casablanca (CHN) Guangzhou (CAN) Toronto (JPN) Tokio-Haneda New New Destinations Daily Daily X X Multiple Flights a Week Flights Multiple (Example) X X X X Weekly Weekly X X X Marketsnapshot Vienna

Key Informationen 100%

75% 1 1

50%

Summary 25% 0 0

• Overnights increase more rapidly than room-supply – occupancy will increase further. 0% • Average daily rate grows moderate due to massive 2008 2017 growth in the midscale category within the past years.

Source: Eurostat, Fairmas, Tourismus Wien Wien Fairmas, Source:Eurostat, Tourismus Zimmer 1-3* Zimmer 4-5* • Highly international guest mix. (see next slide) Rooms 1-3* Rooms 4-5* Source Markets 2018

Analysis Domestic Foreign • Highly international destination 18% 82% • Austria and Germany combined nearly reach 40% of all overnights. • High proportion of guests from the US. In short, … … if China proceeds its growth (in overnights) it will • China as soaring market within the period under soon become one of the TOP 3 source markets of review. Vienna Source: Regional tourism statistic, Tourmis Datenbank statistic,Tourmis tourism Source:Regional

74 Vienna Tourism Trend

CAGR 2008-2018

Overnights 4,5% > Supply Growth 2,9%

In short, … … increase in occupancy limited à pushes ADR. Source: STR Global, mrpdatabase Global, Source:STR

Annotation: CAGR = compound annual growth rate

75 Pipeline Comparison (2019-2023)

Pipeline in rooms measured by total available rooms 2018

40% 38%

30%

22% In short, … … relatively low pipeline in 20% 16% 15% Vienna with almost 4,000 rooms by 2023 (e.g. Munich

10% 9,200 rooms).

0% Vienna Berlin Hamburg Munich Source: STR Global, mrpdatabase Global, Source:STR

76 Missing products compared to European Cities

Munich Possible Brands (Example) Hamburg Berlin Rosewood, Four Vienna Seasons, The Vienna incl. Pipeline until 2023 Peninsula Luxury

Kimpton, Hoxton, High Potential Double Tree Upper Upscale

CitizenM, Hyatt Place, Upscale aloft

Hampton by Hilton, High Potential Midscale Avid, Mama Shelter

Premier Inn, B&B, Economy High Potential Zleep

0.0% 12.5% 25.0% 37.5% 50.0% Source: STR Global, mrpdatabase Global, Source:STR

Annotation: Hotel category according to STR Chainscale List

77 Pipeline Vienna

27 16 23 9+10+13

8 7 29 20 28 19 5

21 11 15 17+22+24 14 6

26 3 18 4