global hotel corporate purchase trends...

4th Dimension Focus Global Hotel Corporate Purchase Trends Q2-2018

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Top performing countries for occupancy during Q2-2018 :

•  DUBLIN 89.6%, due to their destination popularity and low room growth.

•  SINGAPORE 81.3%, which includes +4.5% new room growth. Overall there are positive signs for tourism, business travel and conferencing for hoteliers in the market.

•  MOSCOW 77.6%, attributed to the FIFA world cup where demand exceeded market expectations and increased ARR by +206.8%.

In contrast we saw occupancy decline in :

•  MEXICO 63.5% (-3.25%) due to a changed travel advisories.

•  CHILE 60.8% (-1.7%) where tourism slowed May-June. However, the market is seeing a gradual upward tick of mid-week travel from business travellers.

OCCUPANCY – Q2-2018 VAR. ON 2017

AUSTRALIA 73.20% + 1.3%

CANADA 68.8% + 1.6%

CHILE 60.8% - 1.7%

INDONESIA 60.6% + 2.5%

KUWAIT 52.7% - 0.9%

MOSCOW 77.6% + 9.3%

NIGERIA 49.4% + 10.9%

SINGAPORE 81.3% + 2.9%

Sourced from STR & public news sources

Easter fell in Q2 this year which pushed occupancy

up in several major cities during April. However, in contrast, several cities reported occupancy decline from May through to June where tourism numbers declined.

Q2-2018 occupancy increased across several regions compared to Q2-2017: Europe 75.5% (+1.1%), APAC 70.4% (+1.0%), North Americas 67.5% (+1.0%), Africa 56.3% (+5.1%) and Central/South America 55.3% (+2.4%) . The only region with reduced occupancy was the Middle East 60.2% (-3.5%).

Europe and APAC regions saw an increase in their corporate ARR of +4.4% ($6) with all other regions seeing an ARR decline of -5% ($7).

Global Highlights

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About the Report 4D FOCUS – Hotels

Annual Analysis

Cities 3500+ Countries 200+

400+ Global Corporate Clients

Regions 7

Hotel Rating 3-5

Average Nights Away 2.12

Multi- Booking Stream

Currencies 60+

This 4D Focus quarterly report uses global data sourced from FCM corporate bookings made offline, online (via OBT), GDS and non-GDS bookings during April to June 2018 (Q2-2018). The average room rates (ARR) quoted are booked rates (excluding taxes). Variations in rates booked are a reflection of season, supply and demand, corporate buying behaviour, leisure/tourist seasons and variations in exchange rates. Unless otherwise stated US$ is used.

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Major Cities for Corporate Travellers & their average purchase rates Q2-2018 vs Q2-2017 Regional Trends – Hotel ARR Q2-2018

US$

North America ARR $142 -2.5%

Americas ARR $88 -0.4%

ME ARR $167 -32.0%

Asia ARR $126 +1.2%

Europe ARR $145 +6.3%

Oceania ARR $128 +3.0%

Africa ARR $128 -6.0%

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Europe Q2-2018 ARR Regional ARR Analysis

Corporate regional ARR during Q2-2018 increased +6.3% or $9.

Regional occupancy was 75.5%, +1.1% increase on Q2-2017. +6.3%

MUNICH

STOCKHOLM

MILAN

- 8.9%

- 1.8%

- 8.9%

LONDON

DUBLIN

PARIS

- 6.4%

- 8.9%

- 8.9%

$146 MUNICH

$230 PARIS

$188 DUBLIN $226

LONDON

$204 BARCELONA

$140 ABERDEEN

$123 LIVERPOOL

$210 AMSTERDAM

$130 MOSCOW

$156 ISTANBUL

$130 BUCHAREST $178

MILAN

$168 FRANKFURT

$220 BUDAPEST

$213 STOCKHOLM

$235 OSLO

US$

- 16.3%

+ 4.6%

- 6.7 %

- 0.8%

- 3.4%

Local Currency ARR Var. Q2-‐2018 vs Q2-‐2017

ROE to USD Var. Q2-‐2018 on 2017

- 4.0%

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Asia Q2-2018 ARR $245 TOKYO

$166 BEIJING

$161 JAKARTA

$143 GUANGZHOU

Regional ARR Analysis Average Q2-2018 regional rate increased $1 on same period last year. The broader APAC occupancy was 70.4%, +1.0% increase on Q2-2017.

+1.2% $169 SHANGHAI

$243 HONG KONG

$127 HANOI

$134 MANILA

$130 BANGKOK

$173 TAIPEI

$175 SEOUL

$125 BANGALORE

$108 CHENNAI

$150 DELHI

$202 SINGAPORE

$98 KUALA LUMPUR

SINGAPORE

BANGALORE

MANILA

- 4.7%

+2.8%

+ 4.3%

BANGKOK

SHANGHAI

DELHI

- 7.9%

- 7.5%

+ 2.8%

- 10.6%

+ 3.8%

- 34.5%

- 7.7%

- 10.4%

+ 10.2%

Local Currency ARR Var. Q2 2018 vs Q2 2017

ROE to USD Var. Q2 2018 on 2017

US$

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Oceania Q2-2018 ARR

$199 SYDNEY

Regional ARR Analysis Q2 ARR up $4 due to continued demand in in Australia and New Zealand. Q2 Occupancy in Australia 73.2%, +1.3% on Q2-2017.

+3.0%

$158 MELBOURNE

$146 PERTH

$142 BRISBANE

$136 DARWIN

$139 ADELAIDE

$141 HOBART

$157 CANBERRA

$126 HAMILTON

$172 AUCKLAND

$132 CAIRNS

$143 NEWCASTLE

$145 WELLINGTON

$136 CHRISTCHURCH

PERTH

CHRISTCHURCH

BRISBANE

- 0.8%

- 1.2%

- 0.8%

SYDNEY

AUCKLAND

MELBOURNE

- 0.8%

- 1.2%

- 0.8%

- 3.2%

+ 4.4%

- 1.2%

+ 4.7%

+ 12.8%

- 0.2%



US$

$197 P.MORESBY

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North America Q2-2018 ARR Regional ARR Analysis

This quarter saw a $4 decrease in rates across the region. Regional occupancy was 67.5%, +1.0% on Q2-2017. Rate reductions were again observed in several key cities.

-‐2.5%

US$

MEXICO CITY

MIAMI

VANCOUVER

+ 1.6%

0%

- 4.3%

NEW YORK

BOSTON

DALLAS

0%

0%

0%

+ 0.4%

+ 20.4%

+ 1.0%

- 12.0%

- 5.1%

- 0.3%



$232 LOS ANGELES

$158 VANCOUVER

$197 BOSTON

$161 TORONTO

$109 EDMONTON $157

OTTAWA

$281 NEW YORK

$176 MEXICO CITY

$160 CHICAGO

$221 SEATTLE

$167 DENVER

$157 DALLAS

$166 ATLANTA

$194 MIAMI

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Americas Q2-2018 ARR Regional ARR Analysis

During Q2 ARR remained flat against the same period in 2017. Central & South America occupancy levels for the quarter were 53.3%, +2.4% increase on Q2-2017.

Flat

$148 BUENOS AIRES

LIMA

SANTIAGO

SAO PAULO

+ 0.9%

- 7.3%

+ 10.8%

BOGOTA

BUENOS AIRES

- 2.9%

+ 40.1%

- 10.6%

+ 0.6%

+ 13.5%

- 0.9%

+ 43.2%



$98 RIO

$62 SALVADOR

$176 SANTIAGO

$141 BOGOTA

$152 LIMA

$160 QUITO

$105 SANTA CRUZ

US$

$109 SAO PAULO

$122 MONTEVIDEO

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$136 JOHANNESBURG

$193 NAIROBI

$167 CAIRO

$192 LAGOS

$199 RIYADH

$123 DUBAI

$189 DOHA

$224 ABIDJAN

$126 RABAT

$234 LUANDA

$129 CAPETOWN

$139 ABU DHABI

Middle East & Africa Q2-2018 ARR

DUBAI

Regional ARR Analysis Regional ARR continued to trend down with a $36 reduction in Q2-2018 compared to Q2-2017. Occupancy in ME was 60.2% (+3.5%) and Africa 56.3% (+5.1%)

-‐20.1%

JOHANNESBURG

0%

- 6.7%

ABU DHABI

CAIRO + 1.6%

+ 0.4%

- 18.7%

+ 24.4%

+ 27.2%

- 4.1%

RIYADH 0% + 4.4%



US$

$103 POLOKWANE

$226 TEL AVIV

$222 ALGIERS

$145 GABORONE

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Contact the 4D team for an expert in local, regional or global Hotel Sourcing

Contact Us : [email protected]

Felicity Burke E: [email protected]

Dean Easton E: [email protected]

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