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 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: StatisticPoland, StatistikAustria,Statistisches Bundesamt Deutschland, StatisticsNetherlands 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 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 Marketsnapshot Vienna Airport Total Passengers carried New Destinations (Example) Daily Multiple Flights a Week Weekly 10,8% Tokio-Haneda (JPN) X Toronto (CAN) X Guangzhou (CHN) X 4,5% Casablanca (MAR) X 1,8% In million 1,4% Montreal (CAN) X 2,4% -0,8% Doha (QAT) X Taipeh (TWN) X Calvi (FRA) X Izmir (TUR) X Source: Eurostat, Fairmas,Tourismus Wien 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 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 Source: Regional tourism statistic,Tourmis 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 Source: STR Global, 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 Source: STR Global, 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 Source: STR Global, 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 Category 1 2 25 12 Comment: A complete new building is planned for the Intercontinental Vienna. Due to the last objections to the overall project, it is currently unclear when a new building can take place, i.e. when a closure of the hotel is to be expected. The Student Hotel will have a total capacity of 822 (the majority as a student residence), a 25% share was assumed for short-term rentals. 78 Recent Openings in Vienna (Examples) H+ Hotel Vienna Ibis Styles Wien Messe Prater Andaz Vienna Category: Midscale Category: Midscale Category: Luxury #Rooms: 77 #Rooms: 102 #Rooms: 303 Opening: October 2018 Opening: November 2018 Opening: April 2019 Source: Vienna Tourism, Google Images Source: Vienna Tourism, Google Annotation: Hotel category according to STR Chainscale List Projects Under Construction in Vienna (Examples) Moons Vienna The Student Hotel Hampton by Hilton Category: Upscale Category: Midscale Category: Midscale #Rooms: 170 #Rooms: 822 #Rooms: 190 Opening: 2019 Opening: 2020 Opening: 2020 Source: Vienna Tourism, Google Images Source: Vienna Tourism, Google Annotation: Hotel category according to STR Chainscale List Missing Brands Examples 81 Hoxton Amsterdam Name Hoxton Hotels Hoxton London Scale Upper Upscale Origin England (UK) • vibrant • meeting point Key Words Hoxton Paris • authentic • cool Source: Google Images Hoxton London Hoxton Paris The Diaoyutai Mansion Frankfurt Diaoyutai Hotels Name (MGM) Diaoyutai Hotel Hangzhou Luxury/ Scale Upper Upscale Origin China • elegant Key Words • flair Diaoyutai Boutique Hotel Chengdu • oriental Diaoyutai Hotel Hangzhou Diaoyutai Hotel Hangzhou Source: Google Images CitizenM Rotterdam Name CitizenM Scale Upper Midscale Origin The Netherlands CitizenM Paris • sleep & work Key Words • straight • leisure CitizenM New York CitizenM Amsterdam CitizenM London Source: Google Images CitizenM Glasgow .