MEA SERVICED APARTMENT MARKETS AND GUEST EXPERIENCE INDEX Filippo - - PowerPoint PPT Presentation

Filippo Sona

Director | Head of Hotels MENA

Colliers International

MEA SERVICED APARTMENT MARKETS AND GUEST EXPERIENCE INDEX

Confidential – Colliers International 2016

SUPPLY

2

NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED SUPPL Y- 2016 NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED SUPPL Y- 2020

19% 14% 26% 18% 16% 6% 3% 2% 10% 9% 14% 5% 63% 26% 72% 53% 51% 28% 4% 38% 41% 33% 24% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 20 30 40 50 Abu Dhabi Dammam & Khobar Doha Dubai Jeddah Kuwait Madinah Makkah Manama Muscat Riyadh Sharjah

Thousands

Total Supply of Serviced Apartments by 2020 % of Serviced Apartment to Total Supply - 2020 % of Internationally Branded - 2020

More than

22,500 Keys

(Serviced Apartments)

Expected Future Supply

(2017-2020)

Contribution

• f Serviced

Apartments to Total Supply

14%

94% 30% 6% 20% 59% 54% 2% 41% 36% 17% 24% 0% 0% 27% 18% 2% 19%

• 10%

0% 10% 20% 30% 40% 50% 60% 5 10 15 20 25 30 35 Abu Dhabi Al Khobar & Dammam Doha Dubai Jeddah Kuwait City Madinah Makkah Manama Muscat Riyadh Sharjah

Thousands

2015 Increase from 2015 % of Internationally Branded

Confidential – Colliers International 2016

PERFORMANCE

3

ADR in US$ Occupancy

200 20 50% 1 00%

Manama

110 75%

Doha Jeddah K uwait Dubai Al K hobar & Dammam Sharjah Madinah

Below Average REVPAR Above Average REVPAR

Makkah Abu Dhabi Riyadh Muscat Average REVPAR = US$80

Legend: Size of Market Large Market (More than 7,000 keys) Medium (3,000 – 7,000 keys) Small (Less than 3,000 keys) Average REVPAR line

Confidential – Colliers International 2016

KPIs - COMPARISON

4

96 60 183 128 137 132 67 78 199 68 107 71

91 64 187 126 139 135 70 78 197 67 106 67

83% 66% 83% 79% 75% 70% 73% 75% 52% 80% 80% 60% 84% 67% 83% 79% 76% 70% 71% 73% 50% 80% 80% 59% 40% 50% 60% 70% 80% 90%

50 150 250 Abu Dhabi Al Khobar & Dammam Doha Dubai Jeddah Kuwait City Madinah Makkah Manama Muscat Riyadh Sharjah ADR (USD) - 2014 ADR (USD) - 2015 Occupancy % - 2014 Occupancy % - 2015

Confidential – Colliers International 2016

ARE SERVICED APARTMENTS DOING BETTER THAN HOTELS?

5

YOY REVPAR VARIANCE – 2014 to 2015 HOTEL VS SERVICED APARTMENTS

Dubai

• 5.0%
• 2.3%

Doha

• 2.7%

2.5% Market Hotels Serviced Apartments

Confidential – Colliers International 2016

DEMAND SEGMENTATION

6

87% 96% 94% 89% 85% 88% 89% 11% 72% 72% 73% 80% 10% 3% 5% 8% 11% 11% 7% 15% 16% 16% 15% 12% 74% 12% 12% 12% 0% 20% 40% 60% 80% 100% Riyadh Makkah Madinah Jeddah Dammam & Al Khobar Manama Muscat Doha Kuwait City Dubai Abu Dhabi Sharjah

< 1 Month 1- 6 Months > 6 months

GCC SERVICED APARTMENT DEMAND SEGMENTATION (2015)

Confidential – Colliers International 2016

65%

C airo

71 %

Hurghada

55%

Sharm El Sheikh

72%

Amman

76%

Aqaba

76%

Jeddah

58%

Makkah

76%

Madinah

65%

Muscat

73%

R iyadh

69%

Kuwait C ity

78%

Dubai

70%

Sharjah

69%

Fujairah

77%

Manama

76%

Al Khobar

80%

Beirut

Marina / JBR

82% 81 % 81 % 74%

Doha Airport & City Centre W est Bay & Diplomatic Area Dubai Creek & Festival City Sheikh Zayed Road & DIFC

Score out of 1 00

81 %

76%

Doha

80%

Abu Dhabi

GUEST EXPERIENCE INDEX

7

ONLINE RATING: MAP – GEI SCORING FOR SERVICED APARTMENTS BY CITY (September 2016)

8% 11% 1% 6% 6% 4% 3% 4% 3% 3% 3% 1% 1% 2% 11% 3% 1%

% Decrease vs. Last Year % Increase vs. Last Year

1%

Confidential – Colliers International 2016

8

GEI – TOP TEN BRANDS (September 2016) SERVICED APARTMENT BY TYPE OF AFFILIATION (September2016)

Source: O lery, C

• lliers International

93.7% 1 Rank Brand G EI Rating 90.8% 2 86.5% 3 84.7% 4 84.0% 5 83.7% 6 82.6% 7 82.4% 8 82.2% 9 10 86.0%

Source: O lery, C

• lliers International

N

• te: R

atings are out of 1 00

Overall Unbranded Locally Branded R egionally Branded Internationally Branded

G uest Experience Index (G EI) Room R ating Value R ating Service R ating Location R ating Cleanliness R ating Best and worst by type of rating

74.9 81 .4 82.9 81 .1 87.5 81 .9 72.9 77.6 82.0 77.3 85.9 75.0 77.2 76.3 82.1 77.9 86.5 83.3 80.7 85.1 83.8 88.0 89.4 88.9 82.9 91 .1 84.1 88.9 89.7 90.0 72.9 82.0 77.3 76.3 85.9 75.0 82.9 91 .1 84.1 88.9 89.7 90.0

Confidential – Colliers International 2016

CHALLENGES & OPPORTUNITIES

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• Dual Brand Combo Concepts
• Adequate amenities
• Smaller units

Thank You