ALBERTA ACCOMMODATION OUTLOOK 2018 ALBERTA HOTEL & LODGING ASSOCIATION
APRIL 17, 2018 PRESENTATION OUTLINE
Western Calgary & Investment Key National Alberta Questions Canada Edmonton Trends Takeaways
AHLA | CBRE HOTELS’ OUTLOOK NATIONAL ECONOMIC & TRAVEL OUTLOOKS NATIONAL REAL GDP OUTLOOK 2018/19
$1.95 4.0%
$1.90 $1.91 3.0% $1.88 $1.85 $1.84 $1.80 2.0% $1.79 $1.75 $1.76 1.0% % Change $1.74 $1.70 $1.70 0.0% $1.65 $1.66 Real GDP ($ Trillions) $1.63 $1.60 -1.0%
$1.55 -2.0% $1.50
$1.45 -3.0% 2011 2012 2013 2014 2015 2016 2017 2018p 2019p % Change
Source: Statistics Canada; Conference Board of Canada, Canadian Outlook Fall 2017; Scotiabank Group – Global Forecast Update January 2018; CIBC World Markets – Monthly FX Outlook, February 2018; RBC – Economic and Financial Market Outlook – 2017 Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK NATIONAL TRAVEL OUTLOOK
Overnight Travel 2016E 2017F 2018P 2019P KEEP YOUR TABLE WITHIN THE GUIDES Business travel domestic 1.3% 2.2% 1.4% 1.4%
Pleasure travel domestic 2.1% 3.1% 2.2% 2.0%
Total domestic travel 1.9% 2.7% 1.8% 1.7%
U.S. Travel 9.4% 4.0% 2.8% 2.3%
Overseas travel 13.6% 10.4% 6.4% 5.7%
Total Overnight Travel 3.7% 3.3% 2.2% 2.0%
National accommodation demand growth 1.3%* 4.1%* 2.4% —
Source: Canadian Tourism Research Institute, Conference Board of Canada, Fall 2017 *Actual results, Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK NATIONAL SUPPLY & DEMAND OUTLOOKS 2018 NATIONAL SUPPLY & DEMAND OUTLOOK
National Occupancy 4.1% 2016 Actual 64%
2017 Actual 66% 2.4% 1.7% 1.3% 2018 Projection 66% 1.2% 1.1%
2016 2017 2018p 2016 2017 2018p
Supply Demand
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK NATIONAL ADR, REVPAR & BOTTOM LINE OUTLOOK 2015 ∆ 2016 ∆ 2017 ∆ 2018P ∆
ADR Growth RevPAR Growth Occupancy — 0 pts 2 pts 0 pts 2016 Actual 64% 2.9%64% 2016 Actual66% 3.0%66%
ADR 2017 Actual$144 — 4.8%$148 2.9%2017 Actual$155 4.8% 8.0%$161 4.0%
2018 Forecast 4.0% 2018 Forecast 4.7% RevPAR $91 — $94 3.0% $102 8.0% $107 4.7%
Adjusted Net 8.2% Operating 15.9% Income/ 3.9% Available Room ($000’s)
$12.3 $14.3 $15.4
2016 2017 2018p Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK WESTERN CANADA OUTLOOKS WESTERN CANADA SUPPLY & DEMAND OUTLOOK
Supply & Demand Growth Western Canada Occupancy
2016 Actual 60% 4.6% 2017 Actual 62%
2.4% 2.0% 2018 Projection 63% 1.7% 1.0%
2016 2017 2018p 2016 2017 2018p
-1.5% Supply Demand
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK CANADIAN NATIONAL AND REGIONAL MARKET OUTLOOKS
2018 Region 2014 Actual 2015 Actual 2016 Actual 2017 Actual Forecast Western Canada Occ 65% 62% 60% 62% 63% ADR $143 $148 $150 $155 $160 RevPAR $93 $92 $90 $96 $100
Central Canada Occ 64% 66% 68% 70% 70% ADR $134 $142 $149 $158 $165 RevPAR $87 $93 $101 $110 $115
Atlantic Canada Occ 58% 59% 61% 63% 63% ADR $123 $127 $129 $135 $140 RevPAR $72 $75 $79 $86 $88
National Occ 64% 64% 64% 66% 66% ADR $138 $144 $148 $155 $161 RevPAR $88 $91 $94 $102 $107
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK WESTERN CANADA ADR, REVPAR & BOTTOM LINE OUTLOOK 2015 ∆ 2016 ∆ 2017 ∆ 2018P ∆
ADR Growth RevPAR Growth Occupancy 62% — 60% -2 pts 62% 2 pts 63% 1 pt 2016 Actual 1.3% 2016 Actual (2.1%) ADR 2017 Actual$148 — 3.2%$150 1.3%2017 Actual$155 3.2% 6.1%$160 3.3% 2018 Forecast 3.3% 2018 Forecast 4.7% RevPAR $92 — $90 (2.1%) $96 6.1% $100 4.7%
Adjusted Net 7.1% Operating Income/ 9.8% Available Room -7.2% ($000’s) $13.7 $15.0 $16.1
2016 2017 2018p Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA ECONOMIC & TOURISM OUTLOOKS ALBERTA TOURISM INDICATORS 2017
AIRPORT PASSENGER VOLUMES NATIONAL PARKS ATTENDANCE* • Calgary (YYC) 3.8% • Banff 3.0% • Edmonton (YEG) 5.0% • Jasper -1.6% • Waterton Lakes 7.3%**
FOOD SERVICES & DRINKING HISTORIC SITES & MUSEUM PLACES RECEIPTS VISITS • 2.4% • 3.8%
*Excludes Group Tours as per Parks Canada definition ** Waterton Lakes National Park was closed to the public from September 8-20, 2017 due to a wildfire. Source: Alberta Tourism Market Monitor, Alberta Culture and Tourism
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA 2017-19 GDP GROWTH PROJECTIONS
2017 2018 2019 Estimate Forecast Forecast
ATB Financial 3.9% 2.8% 2.2%
Scotiabank Group 3.0% 2.8% 1.9%
RBC Economics 4.2% 2.2% 2.0%
Conference Board of 6.7% 2.1% 1.6% Canada
Source: ATB Financial – Alberta Economic Outlook – February 2018 Scotiabank Group, Global Economics Forecast Tables, March 6, 2018 RBC Economic and Financial Provincial Outlook – Alberta – March 2018 Conference Board of Canada, Provincial Outlook Winter (February) 2018
AHLA | CBRE HOTELS’ OUTLOOK National 2018f 2.4% 2018-19F REAL GDP GROWTH BY PROVINCE 2019f 1.9% NL PE NS NB QC ON MB SK AB BC 2.1% 2.8% Real GDP 2.6% 2.3% 2.2% 2.2% 2.1% 2.0% 1.9% 1.9% 1.2% 1.8% 1.6% 1.6% 1.2% 1.0% 1.0% 0.9% 0.7% 0.5% 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f 2018f 2019f
Source: Scotiabank Group, Global Forecast Update, March 6, 2018
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA TRAVEL OUTLOOK
2017 2018 2019 Overnight Travel Estimate Forecast Forecast
Business Travel Overnight 2.6% 1.3% 1.3% Domestic Pleasure Travel Overnight 3.9% 2.3% 1.9% Domestic U.S. Overnight Travel 4.9% 3.3% 2.8%
Overseas Overnight Travel 9.1% 5.9% 5.3%
Total Overnight Travel 3.6% 2.3% 2.1%
Source: Canadian Tourism Research Institute, Conference Board of Canada, Fall 2017
AHLA | CBRE HOTELS’ OUTLOOK KEY ECONOMIC/TOURISM FACTORS
Oil and Gas Capital Investment – Pipeline/Rail Capacity Issues Oil Sands Conventional
Low Natural Gas Business & Consumer Overnight Travel Growth Prices Confidence Inconsistencies Increases
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK WEST TEXAS INTERMEDIATE CRUDE OIL PRICES & HOTEL OCCUPANCY 1998-2018F
$120 80%
70% $100 60% $80 50%
$60 40%
30%
$40 Occupancy Hotel 20%
USD$ per Barrel $20 10%
$0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F Crude Oil Prices Alberta Hotel Occupancy
Source: U.S. Energy Information Administration & CBRE Hotels’ Trends in the Hotel Industry
AHLA | CBRE HOTELS’ OUTLOOK HENRY HUB NATURAL GAS PRICES & HOTEL OCCUPANCY
1998-2018F $10 80%
$9 70% $8 60% $7 $6 50% $5 40%
$4 30% $3 Occupancy Hotel 20%
USD Btu $ per million $2 $1 10% $0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F Natural Gas Prices Alberta Hotel Occupancy
Source: U.S. Energy Information Administration & CBRE Hotels’ Trends in the Hotel Industry
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA SUPPLY & DEMAND OUTLOOKS 2018 ALBERTA TOP LINE 2017 PERFORMANCE
49% Occ $124 ADR $61 RevPAR Edmonton 57% Occ $130 ADR Red Deer $74 RevPAR
Calgary
Lethbridge 42% Occ $106 ADR $45 RevPAR Alberta Resorts 67% Occ $273 ADR Other Alberta North* $182 RevPAR
Other Alberta South** 59% Occ $143 ADR $85 RevPAR Note: *Properties in Communities located On or North of Highway 16 **Properties in Communities located 51% Occ South of Highway 16 $110 ADR 43% Occ $57 RevPAR $115 ADR $50 RevPAR
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA HISTORIC “TOP LINE” RESULTS COMPARISON (YTD FEBRUARY)
2016 Jan-Feb 2017 Jan-Feb 2018 Jan-Feb Overall Occ 45% 45% 47% Alberta ADR $131 $127 $126 (excl.resorts) RevPAR $59 $57 $59 Red Deer Occ 36% 36% 36% ADR $111 $105 $108 RevPAR $40 $38 $40 Lethbridge Occ 42% 40% 42% ADR $109 $109 $111 RevPAR $46 $43 $47 Alberta Occ 48% 48% 49% Resorts ADR $189 $199 $210 RevPAR $91 $96 $103 Other Occ 36% 40% 44% Alberta ADR $127 $119 $121 RevPAR $46 $48 $54
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK ACCOMMODATION SUPPLY
2,000 new rooms in 2018
Majority in Calgary/ Edmonton
Modular Construction
Developers still looking
Project Financing?
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA SUPPLY & DEMAND OUTLOOK
Room Nights 18,000,000 2% 2% 1% 16,000,000
14,000,000 5% 3% 12,000,000 5%
10,000,000 -12% 8% 2% 8,000,000 -3% 4% 3% 6,000,000
4,000,000
2,000,000
0
-2,000,000 2016 2017 2018P 2016 2017 2018P Calgary/Edmonton Combined Other Alberta
SupplySupply/Available Room Nights Dem…Demand
Source: CBRE Hotels 25 CBRE HOTELS | 2017/2018 OUTLOOK “OTHER ALBERTA” MARKET – DUAL IMPACTS OF ECONOMIC DOWNTURN AND NEW SUPPLY (2014 TO 2018)
“Other AB” Market “Other AB” Market Occupancy Supply vs. Demand Growth Supply Growth Demand Growth 10% 6% 7% 5% 70% 67% 5% 65% 0% 60% -5% 56% -10% 55% 51% 52% -15% 50% 48% -20% -17% -19% 45% -25% 40% -25% -30% 2014 2015 2016 2017 2018F 2014-2016 2014-2017 2014-2018 Market Occupancy
Supply in Other Alberta (outside Calgary and Edmonton) increasing by 7% for 2014-2018 Demand dropping 17% over the same period (2014-2018) The impact on market occupancy is a 15 point decline, from 67% in 2014 to 52% for 2018 for the “Other Alberta” market.
AHLA | CBRE HOTELS’ OUTLOOK PROVINCIAL FORECAST ALBERTA “TOP LINE” 2018 FORECAST
$160 ADR RevPAR Occupancy 80% 68% 68% $140 66% 70%
59% $143 $120 $141 60% $138 54% 54% 52% $132 $100 50% $131 $130 $131 $97 $80 $94 40% $87 $83 $71 $60 $70 30% $68
$40 20%
$20 10%
$0 0% 2012 2013 2014 2015 2016 2017 2018P
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK ALBERTA FINANCIAL FORECAST
$24
$22 $20.3 $20 $18.7 $18 $16.7 $15.7 $16 $15.4 $14.3 $14 $12.3 $11.8 $12 $10.8 $10.2 $10.2 $10.3 $9.6 Available Room ($000’s) $10 $9.1
Adjusted Net Operating Income Per $8
$6 2012 2013 2014 2015 2016 2017 2018P AB NATIONAL
NOTE: Adjusted Net Operating Income is defined as income after property taxes, insurance, management fees, franchise fees, and capital reserves; but before rent, interest, income taxes, depreciation and amortization. Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK HISTORIC EXPENSE RATIOS – ALBERTA FULL SERVICE YEAR 2016
Departmental Expenses $ Per Available Room % of Dept Revenue Rooms $8,032 29.0% Food & Beverage $11,063 71.1% Other Operated Departments* $1,310 62.5%
Total Departmental Expenses $20,406 44.1% Undistributed Expenses $ Per Available Room % of Total Revenue Administration & General $3,597 7.8% Information & Telecommunications $873 1.9% Systems Sales & Marketing $2,904 6.3% Property Op. & Maintenance $2,224 4.8% Utilities $1,846 4.0% Property and Other Taxes $1,739 3.8% Insurance $283 0.6% Total Undistributed Expenses $13,466 29.2%
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK HISTORIC EXPENSE RATIOS – ALBERTA LIMITED SERVICE YEAR 2016
Departmental Expenses $ Per Available Room % of Dept Revenue Rooms $5,251 24.4% Other Operated Departments* $97 51.6%
Total Departmental Expenses $5,349 23.9% Undistributed Expenses $ Per Available Room % of Total Revenue Administration & General $2,159 9.6% Information & Telecommunications $193 0.9% Systems Sales & Marketing $1,032 4.6% Property Op. & Maintenance $1,667 7.4% Utilities $1,017 4.5% Property and Other Taxes $1,388 6.2% Insurance $90 0.4% Total Undistributed Expenses $7,547 33.6%
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK FINANCIAL CONCERNS
Departmental expenses up in 2016 and 2017
Labour shortages in many markets
Legislative changes in benefit requirements affect labour costs
Energy price increases (fuel, hydro)
Assessments – time to appeal?
Hotel brands increasing costs for program participation
Higher vacancy rates of “other” rental spaces
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK CALGARY & EDMONTON MARKET OUTLOOKS CALGARY ECONOMIC OUTLOOK
2018 2015 2016 2017 2014 2015 2016 Forecast2017F
GDPGDP Growth (%) (3.2) (3.7) 6.9 2.5 Growth (%) 5.2 -3.1 -1.7 1.8
Employment Employment(% Change) (% Change)2.5 2.0 2.1(1.5) -3.42.0 2.01.4
Unemployment Rate (%) 5.0 6.4 9.1 9.4 Unemployment Rate (%) 6.4 9.4 8.7 8.2 Housing Starts (annual, 000’s of 17 13 9 9 Housing Starts units) 13 9 11 11 (annual, 000’s of units)
Source: Conference Board of Canada – Metropolitan Outlook Winter 2018
AHLA | CBRE HOTELS’ OUTLOOK CALGARY – PERFORMANCE INDICATORS KEY POINTS FOR 2018
Supply growth slightly ahead of demand growth in 2018
ADR declines to continue, impacting RevPAR and Bottom Line
Downtown hotels suffering ADR drop, lower F&B demand and revenue
GDP growth projected for Calgary – concerns about spending in certain sectors
International travel has positive impact on spending in Calgary
Air passenger volumes continue to increase
Source: CBRE Hotels AHLA | CBRE HOTELS’ OUTLOOK CALGARY TOP LINE 2017 PERFORMANCE BY SUB-MARKET
59% Occ $119 ADR $70 RevPAR
Airport / NE 64% Occ $113 ADR Downtown / Beltline $73 RevPAR Northwest / Motel
Village 62% Occ $189 ADR South / Macleod Trail $117 RevPAR
53% Occ $127 ADR $68 RevPAR
AHLA | CBRE HOTELS’ OUTLOOK CALGARY ACCOMMODATION MARKET PERFORMANCE
ADR RevPAR Occupancy $180 80% 73% $170 71% 70% 70% $160 64% $150 $167 59% 59% 59% 60% $162 $156 $140 $158
$145 50% $145
$130 $143 $120 40% $110
$118 30% $100 $117 $110
$90 $102 20% $80 $86 $85
$85 10% $70 $60 0% 2012 2013 2014 2015 2016 2017 2018P
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK CALGARY – DUAL IMPACTS OF ECONOMIC DOWNTURN AND NEW SUPPLY (2014 TO 2018)
Calgary Accommodation Market Calgary Market Occupancy Supply vs. Demand Growth 75%
Supply Growth Demand Growth 70% 25% 70% 20% 20% 15% 65% 64% 15% 9% 59% 10% 60% 59% 59% 5% 1% 55% 0%
-5% -3% 50% 2014 2015 2016 2017 2018F -10% -9% 2014-2016 2014-2017 2014-2018 Market Occupancy
Supply in Calgary increasing by 20% from 2014 to 2018 Over the same 2014 to 2018 period, demand to improve by only net 1% As a result, market occupancy dropping from 70% in 2014 to forecast 59% in 2018 (11 points)
AHLA | CBRE HOTELS’ OUTLOOK EDMONTON ECONOMIC OUTLOOK
2018 2015 2016 2017 2018 2015 2016 2017 Forecast 2014 2015 2016 Forecast2017F
GDP Growth (%) (3.2) (3.4) 3.9 2.2 GDPGDP Growth (%) (3.2) (3.6) 5.2 2.2 Growth (%) 4.9 -3.2 -1.7 2.1
EmploymentEmployment (% Change) 2.4 0.0 0.4 1.2 Employment(% Change) (% Change)2.3 2.2 2.40.0 0.20.2 1.00.1
Unemployment Rate (%) 5.2 5.9 7.1 7.5 Unemployment Rate (%) 5.9 7.3 8.28.3 7.48.1 Housing Starts (annual, 000’s of Housing Starts 14 17 10 9 units) 17 10 1212 1111 (annual, 000’s of units)
Source: Conference Board of Canada – Metropolitan Outlook Winter 2018
AHLA | CBRE HOTELS’ OUTLOOK EDMONTON – PERFORMANCE INDICATORS
KEY POINTS FOR 2018
Supply and demand to grow at roughly same pace in 2018
Operators must be diligent on ADR – YTD Feb 2018 is down
Major infrastructure projection in Alberta’s Industrial Heartland to have positive impact on Edmonton economy
Key events including Cities and Climate Change Conference, Smart Airports and Regions Conference, Grey Cup
Royal Alberta Museum to open
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK EDMONTON TOP LINE 2017 PERFORMANCE BY SUB-MARKET
Downtown 63% Occ $154 ADR 54% Occ South /Ellerslie/Airport $98 RevPAR $124 ADR $67 RevPAR West
56% Occ $114 ADR $64 RevPAR
AHLA | CBRE HOTELS’ OUTLOOK EDMONTON ACCOMMODATION MARKET PERFORMANCE
ADR RevPAR Occupancy $150 80%
70% 69% $140 67% 70% 63% $130 59% $136 57% 57% 60% $134 $133 $130 $120 $130 $127 50%
$110 $122 40% $100 30% $90 $93
$89 20% $80 $86
$81 10% $77
$70 $76 $74 $60 0% 2012 2013 2014 2015 2016 2017 2018P
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK EDMONTON – DUAL IMPACTS OF ECONOMIC DOWNTURN AND NEW SUPPLY (2014 TO 2018)
Edmonton Accommodation Market Edmonton Market Occupancy Supply vs. Demand Growth 75% Supply Growth Demand Growth 69% 20% 70% 16% 15% 13% 65% 63% 10% 7% 59% 5% 60% 57% 57%
0% 55%
-5% -4% 50% -7% -10% -8% 2014 2015 2016 2017 2018F 2014-2016 2014-2017 2014-2018 Market Occupancy
Edmonton supply will grow by 16% over the 2014 – 2018 period Room Demand will decline by net 4% over the 2014 – 2018 period The impact on market occupancy over the 4-year period is a projected 12 point decline, from 69% in 2014 to 57% in 2017 and 2018
AHLA | CBRE HOTELS’ OUTLOOK MAJOR MARKET OUTLOOKS REVPAR PROJECTION - 2018
2018 RevPAR Ranking
Vancouver $161
Toronto $138
Montreal $136
Vancouver Toronto Niagara Falls Montreal Winnipeg City Quebec Regina Edmonton Halifax Ottawa Calgary Saskatoon St. John's Ottawa $130 10% 8% Quebec City $117 6% 4% Niagara Falls $114 2% Halifax $109 0% -2% Winnipeg $92 -4% -6% St. John’s $87 > 4% RevPar 0%-3% RevPar Growth RevPAR Calgary $86 Growth Decline Edmonton $76
Saskatoon $75 *”Major Markets” refer to Greater Metro Areas Source: CBRE Hotels Regina $70
AHLA | CBRE HOTELS’ OUTLOOK INVESTMENT TRENDS ALBERTA TRANSACTION OVERVIEW
Canada 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Transactions 96 74 89 102 103 131 136 135 252 163
Volume ($Millions) $1,090 $410 $730 $1,200 $1,090 $2,110 $1,400 $2,300 $4,100 $3,400
Alberta 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017**
Total 22 10 11 16 25 28 27 15 14 15 Transactions Volume $344 $77 $111 $167 $335 $501 $293 $265 $110 $190 ($Millions) % Volume of 32% 19% 15% 14% 31% 24% 21% 12% 6% 8% Total
* Year 2016 Totals EXCLUDE assets that were within “Entity Level” transactions for which individual property acquisition prices were not disclosed. Specifically, the acquisition of the InnVest REIT portfolio and the acquisition of Coast Hotels & Resorts. ** Year 2017 Excludes M&A transactions Source: CBRE
AHLA | CBRE HOTELS’ OUTLOOK Q4 2017 CAP RATE SURVEY
Q4 2017 HOTEL CAP RATES
National Calgary Edmonton Downtown Full 7.28% 7.00%-8.75% 7.25%-8.75% Service Suburban Limited 8.36% 8.00%-9.25% 8.50%-9.50% Service Focused Service 8.05% 7.50%-9.25% 8.00%-9.50%
Source: CBRE Hotels
AHLA | CBRE HOTELS’ OUTLOOK KEY TAKEAWAYS ALBERTA TOP & BOTTOM LINE OUTLOOK
2015 2016 2017 2018P 59% OCC 0.9% 54% 54% -34.8%Adjusted Net -0.2% Operating 52% Income/ ADR $10.3 Available Room $10.2 $10.2 ($000’s) $141 $131 $130 $131 2016 REVPAR 2017 $83 2018P $70 $71 $68 KEY TAKEAWAYS
Top line performance results in many areas of the Province improved in 2017 and will continue to so in 2018
Weakness to continue in oil sands related markets due to lack of capital spending
We need to grow ADR!!!
Alberta Resorts market will continue to grow ADR
Room construction continues despite economic conditions
Bottom lines only slightly improved in 2018
Growth on the horizon in many markets. Adjustments required to thrive under “New Normal” operating conditions
AHLA | CBRE HOTELS’ OUTLOOK THANK YOU!!
Brokerage Valuation & Advisory Services Bill Stone David Larone Rebecca Godfrey Greg Kwong Brian Stanford Kirstin Hallett Deborah Borotsik Fran Hohol Nicole Nguyen Scott Duff Erin O’Brien Carol Lopes Michael Beckley David Ferguson Sylvia Occhiuzzi Karina Saks Ashley Kerr