Corporate Housing Industry Report 2010 by mar10407

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									CHPA Annual Conference
 February 17 San Diego

 Corporate Housing Industry Report
               2010
        Preliminary Results
          The Annual Report
• 52 US Markets
• 2 Canadian Markets
• Multiple sub-markets in Atlanta, Boston,
  Chicago, LA, DC, NY, Philadelphia, San
  Francisco, Seattle
• Roundly 30,000 Sample units
          The Annual Report
• Roundly 115 Companies participating
  including franchisees
• Over 100 surveys incomplete or unusable
• 268 MSA surveys completed and usable
• Reporting a week earlier than ever before
            Estimated US Historic and Projected Inventory Trend


90,000
                       76,729         77,799
80,000                                               73,385
         70,736
70,000
                                                                  61,280
60,000

50,000

40,000

30,000

20,000

10,000

    0
          2005          2006           2007           2008        2009
                   Estimated/Projected Change in Inventory


10%
         8.5%




 5%


                              1.4%

 0%
       2005-2006           2006-2007          2007-2008      2008-2009



-5%
                                                -5.7%



-10%



                                                              -13.1%
-15%
Fitting into the Lodging Marketplace
                                    2009          2008
US Hotel Rooms                   4.64 million   4.5 million
US Corporate Housing Units         61,280        73,385
US Extended Stay Units            315,357        295,707
 Upscale ES Units                 131,862        120,183
ES Growth 08-09                     6.6%          6.70%
ES Units Under Construction YE     11,456        26,160
 Upscale Units                      7,468        16,853
Projected Annual Growth Rooms      1.60%          3.4%
                Inventory Fluctuation by Quarter (Min Max)

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%    10.5%                                                    15%
                     13.0%            12.4%           10.4%
4.0%

2.0%

0.0%
        First        Second           Third           Fourth   MinMin to
                                                               MaxMax
   Fluctuation by Quarter 2009
• 30%+ Norfolk/Virginia Beach, Cleveland,
  Seattle, Kansas City, Minneapolis
• < 5% Orange County, LA, Chicago Suburbs,
  Philadelphia City Center, Pittsburgh, Miami,
  Manhattan, DC, Baltimore
           Occupancy 2009
• 88% US Average in 2009
  – Equal to 2008
• 95%+ Austin
• <85% Philadelphia City Center, Boston
  Suburbs, Seattle Suburbs, Seattle City
  Center, Manhattan, Philadelphia Suburbs,
  Orlando, San Francisco City Center,
  Northern NJ, Columbus, Chicago Inside the
  Loop (Only the last 3 were 75-80%)
              US Occupancy Trend

100%

80%

60%

40%
       91%    90%      89.7%       88.5%   88.0%
20%

 0%
       2005   2006      2007        2008   2009
Fitting into the Lodging Marketplace
                                    Occupancy 2009   Change from 2008
Corporate Housing                         88.0%            0.0%
Extended Stay                             66.0%            -5.9%
US Lodging Industry                       55.1%            -8.8%
Note: ES Room nights sold up 0.4%
           Wholesale Units
• Wholesale To: Counted in the inventory by
  the company which owns or holds the
  primary lease on the unit
• Wholesale From: Reported by the company
  which sub-leases the unit from another
  corporate housing provider
     US Wholesale as a % of Total Units in 2008 & 2009 vs Projected 2009



8%

7%

6%

5%

4%                                                                         From
                                                                           To
3%

2%

1%

0%
     1st Qtr 2nd Qtr 3rd Qtr 4rd Qtr Average Average     2010
                                      2008    2009       Proj.
      Canada Wholesale as a Percent of Total Units



18%
16%
14%
12%
10%                                                  From
8%                                                   To
6%
4%
2%
0%
      2008                        2009
                      Unit Mix

60%
50%
40%
                                                   2009
30%
                                                   2006
20%
10%
0%
      Studio   1 Bedroom   2 Bedroom 3 Bedroom &
                                        Other
            Unit Mix - Canada




           3%
      3%


                                Studio
36%
                                1 Bedroom
                                2 Bedroom
                    58%         3 Bedroom & Other
 Fitting into the Lodging Marketplace
                        ADR 2009   Change from 2008
Corporate Housing       $115.31         -1.4%
Extended Stay Upscale   $110.46         -9.4%
Extended Stay Mid        $57.08        -14.5%
Extended Stay Economy    $32.85         -7.1%
US Lodging Industry      $97.51         -8.5%
                           US Studio RateTrend

$140
           $120           $124       $122$120
$120   $113           $116                         $116$112
                                            $110
               $102           $103                         $101
$100

$80                                                               2007
                                                                  2008
$60
                                                                  2009
$40

$20

  $0
       1st Quarter    2nd Quarter    3rd Quarter   4th Quarter
                     US One-Bedroom Rate Trend

$140

$120                    $113       $117
                                      $113
       $110 $109
          $110       $112 $110           $111    $108 $109
                                                    $108
$100

$80                                                            2007
                                                               2008
$60
                                                               2009
$40

$20

 $0
       1st Quarter   2nd Quarter   3rd Quarter   4th Quarter
                      US Two-Bedroom Rate Trend

$140
                                          $131
          $122          $124          $125
                                   $123
              $121   $118 $120                       $121
                                                  $120 $118
$120   $117


$100

 $80
                                                                2007
                                                                2008
 $60
                                                                2009

 $40

 $20

  $0
       1st Quarter   2nd Quarter   3rd Quarter    4th Quarter
                                 Canada Studio Rate Trend

$140


$120

                                                             $101
$100                                                 $97
             $94                         $93                              $93
                     $89                       $87                                $89
       $83                 $86                                      $84
 $80                              $74
                                                                                        2007
                                                                                        2008
 $60                                                                                    2009


 $40


 $20


 $0
       1st Quarter         2nd Quarter         3rd Quarter          4th Quarter
                        Canada One-Bedroom Rate Trend

$140


$120
                               $108           $110
             $105$105              $105   $105    $106         $107
                                                                   $104
                         $99                             $99
$100   $96


 $80
                                                                          2007
                                                                          2008
 $60                                                                      2009


 $40


 $20


  $0
       1st Quarter       2nd Quarter      3rd Quarter    4th Quarter
                         Canada Two-Bedroom Rate Trend


                                          $151
$140                                          $135        $136
                           $133$131
       $130                                                   $130
              $127$128             $127            $127
                                                                  $123
$120


$100


$80
                                                                         2007
                                                                         2008
$60                                                                      2009



$40


$20


 $0
       1st Quarter         2nd Quarter    3rd Quarter     4th Quarter
                   US Average Charges for Housekeeping Service

$100
                                                               $90 $88
 $90                                                     $85
 $80                                     $77 $77 $76
             $70
 $70   $66                $65 $66 $66
                   $59
 $60                                                                     2007
 $50                                                                     2008
 $40                                                                     2009

 $30
 $20
 $10
  $0
       Studio Maid       1 Bedroom Maid 2 Bedroom Maid 3 Bedroom Maid
         Service             Service        Service        Service
      2009 Canada Average Charges for Housekeeping

$80
                                                     $68
$70
$60                                 $54
$50
      $39            $40
$40
$30
$20
$10
$0
       1              2              3                4
                     Trend in Average Days Stay



100
 90
 80
 70
 60
 50
 40
 30
 20
 10   71     72     72     76      82     77      81     80     92
  0
      1999   2000   2001   2002   2005    2006    2007   2008   2009
Fitting into the Lodging Marketplace
                         Average Days Stay
 Corporate Housing                92
 Extended Stay Upscale            3
 Extended Stay Mid                14
 Extended Stay Economy            35
                          Trend in Days Notice

35
30
25
20
15
10
5                                                 28            27
      26    26     27        26     29      27            28
0
     1999   2000   2001     2002   2005    2006   2007   2008   2009
             Flat Panel TV
• US 43% Living Room, exactly where you
  said you would be, going to 53%
• Canada 63% Living Room going to 87%
• Hotel chain standards have pushed flat
  panels from the end of 2010 to 2012 (some)
                        US Flat Panel Televisions


60%

50%

40%

30%                                                  2008
                                                     2009
20%                                                  End of 2010
10%

0%
      Flat Panel in the Living   Flat Panel in the
              Room                  Bedroom
                      Canada Flat Panel Televisions

           87%
90%
80%
70%              63%
                       59%           57%
60%
50%                                                        End of 2010
                                           40%
40%                                              33%       2009
30%                                                        2008
20%
10%
0%
      Flat Panel in the Living Flat Panel in the Bedroom
              Room
US Percent of Operations with Non-Refundable Fees
                   79%
      80%     71%

      70%
      60%
      50%
      40%                   29%                     2008
      30%                           21%             2009
      20%
      10%
       0%
                Yes            No
                            Pet Fees



$300
$250
$200

$150
$100           $271
                                $261         $87
$50
$-
          Refundable      Fee One-Time   Monthly
       Deposit One-Time
                                         US One-Time Fees



$160

$140

$120

$100

$80

$60

$40

$20                           $56         $108         $115          $155
               $35                                                             $141
$-
       Internet Set-Up   Application   Cleaning   Administrative   Set-Up   Departure
             US Advertising as a Percent of Gross Revenue

2.50%


2.00%


1.50%


1.00%
              1.01%                                         2.26%
0.50%                               1.25%


0.00%
        Internet Advertising   Other Advertising            Total
        Canada Advertising as a Percent of Gross
                       Revenue

3.00%
2.50%
2.00%
1.50%
1.00%                                        2.82%
           1.18%            1.64%
0.50%
0.00%
          Internet      Other Advertising     Total
         Advertising
                   Industry Bed Bug Programs


90%

80%

70%

60%

50%                                                            Yes
                                                               No
40%                                                            N/A

30%

20%

10%

0%
       Bed Bugs    Training    Prevention Plan      Uses
      Procedures                                 Experienced
                                                  Company
      Interested in a Standard Industry RFP




32%



                                              Yes
                                              No



                                    68%
                  Participate
•   Data for marketing
•   Data to measure performance
•   Benchmarks
•   Industry credibility with banks and others
•   Participants get the report for free
Reports in your In-Box
     3/15/2010


  These slides available now.
 The Highland Group
www.highland-group.net

      404.872.4631
       Peggy Berg
      Conni Atkinson

								
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