2013 Income Expenses Summary

A DEEP DIVE INTO THE HOTEL
OPERATING STATEMENT
October 23, 2015
Robert Mandelbaum – Director of Research Information Services
ECONOMETRIC ADVISORS
PRESENTATION OUTLINE
The Old Metrics
• Trends® in the Hotel Industry
• Revenues
• Expenses
• Profits
• Questions and Answers
The New Metrics
• Cindy Estis-Green
2 ECONOMETRIC ADVISORS
PKF HOSPITALITY RESEARCH | CBRE HOTELS
Trends® in the Hotel Industry
• Annual voluntary survey of thousands
of U.S. hotel financial statements
• First survey conducted in 1937
– Occ: 64.4%
– ADR: $3.04
• Data converted to USALI to ensure
comparability
• 2015 Survey Sample
• 7,135 hotels across the U.S.
• Occupancy: 74.3%
• ADR: $158.62
REVENUES
HOTEL REVENUE
Index: 1977 = 100
1,000
800
600
400
200
-
1995
2007
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2008
2009
2010
2011
2012
2013
2014
Rooms Food and Beverage
Other Operated Rental and Other Income
Total Revenue
Source: PKF Hospitality Research | CBRE Hotels, Trends® in the Hotel Industry
MIX OF REVENUE
Percent of Total Revenue
Rental and
Other
Income 1977
1.1%
Rooms Rental and

Other
Operated 57.4% Other 2014
Income
2.8% Other 1.1%
Operated
4.7%
F&B Rooms
38.7% F&B 69.5%
24.7%
COMPOSITION OF CHANGE IN REVPAR
Impact On Change in NOI*
Change in ADR (left axis) Change in Occupancy (left axis) Change in NOI* (right axis)
15% 20%
10%
10%
5%
0%
0%
-5% -10%
-10%
-20%
-15%
-30%
-20%
-25% -40%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F
Note: * Before deduction for capital reserve, rent, interest, income taxes, depreciation,
and amortization.
IMPACT OF REVPAR CHANGE COMPOSITION

ON HOTEL PROFITS*
Note: * Before deduction for capital reserve, rent, interest, income taxes, depreciation,
and amortization.
Source: PKF Hospitality Research | CBRE Hotels, Trends® in the 8 Hotel Industry ECONOMETRIC ADVISORS
F&B DEPARTMENT REVENUES
Compound Average Annual Change – 2007 to 2014
Restaurant -5.2%
Bar/Lounge 7.9%
Room Service 1.6%
Mini Bar -3.0%
Banquet 2.0%
Public Room Rental 2.0%
A/V Rental 7.8%
Service Charges 1.7%
Other F&B Income -5.5%
Total Department Revenue -0.1%
-8% -6% -4% -2% 0% 2% 4% 6% 8% 10%
Same-Store Sample: 1,613 Full-Service Hotels - Average: 302 Rooms
F&B DEPARTMENT MIX OF REVENUES

Percent of Department Revenue
100%
90% Other
80% Service Charges
70% A/V Rental
60% Public Room Rental
50%
Banquet
40%
Mini-Bar
30%
Room Service
20%
Bar/Lounge
10%
0% Restaurant
2007 2008 2009 2010 2011 2012 2013 2014
Same-Store Sample: 1,613 Full-Service Hotels - Average: 302 Rooms
OTHER OPERATED DEPARTMENTS
Change – 2007 to 2014*
5.0%
Telecommunications -52.2%
-54.2%
4.5%
Movie -53.4%
-55.1%
5.7%
Laundry -23.8%
-28.1%
9.5%
Parking 33.3%
25.3%
-75% -50% -25% 0% 25% 50%

Total Hotel Revenue Department Revenue $PAR Department Revenue $POR
Note: * Properties that reported respective revenue
Source: PKF Hospitality Research | CBRE Hotels. Trends® in the Hotel Industry
EXPENSES
OPERATED DEPARTMENT PROFITS
Index: 1977 = 100
1,000
(1,000)
(2,000)
(3,000)
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Rooms Food and Beverage
Other Operated Operated Department Profits
WHERE DID THE DOLLARS GO?

Percent of Total Operating Expenses*
Salaries, Cost of Goods
Wages, and Sold
Benefits 8.6%
44.2%
Management
Fees
4.9%
Property Taxes
Operating and Insurance
Expenses 6.2%
36.1%
Note: * Before deductions for capital reserve, rent, interest, income taxes, depreciation, amortization.
Source: PKF Hospitality Research | CBRE Hotels, 2015 Trends® in the Hotel Industry
ANNUAL CHANGE IN LABOR COSTS
50%
40%
30%
20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Percent of Total Revenue Percent of Total Expenses
COMPONENTS OF LABOR COST

Annual Change
15%
10%
5%
0%
-5%
-10%
-15%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Salaries, Wages, and Bonuses - 2000-2014 AVG = 1.8%
Payroll Related Expenses (Benefits) - 2000-2014 AVG = 3.0%
Note: 9th Edition of USALI prior to 2007

Source: PKF Hospitality Research | CBRE Hotels, Trends® in 16
the Hotel Industry ECONOMETRIC ADVISORS
CHANGE IN HOSPITALITY EMPLOYMENT COMPENSATION
Change in Average Hourly Compensation for Hospitality Employees
Change In Hourly Compensation U.S. Unemployment Rate
6% 10%
5% 9%
4% 8%
3% 7%
2% 6%
1% 5%
0% 4%
-1% 3%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: PKF Hospitality Research | CBRE Hotels, Bureau of Labor Statistics

HOURS WORKED VS. ROOMS OCCUPIED

Annual Change
10%
Change in Total Hours Worked Change in Occupied Rooms
5%
0%
-5%
-10%
-15%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: PKF Hospitality Research | CBRE Hotels, Bureau of Labor Statistics
UNDISTRIBUTED EXPENSES
Index: 1977 = 100
700
600
500
400
300
200
100
-
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Administrative and General Marketing
Property Operations and Maintenance Utility Costs
Total Undistributed Expenses
UNDISTRIBUTED EXPENSES – FIXED?

Index: 1977 = 100
700
600
500
400
300
200
100
-
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Total Undistributed Expenses
UNDISTRIBUTED EXPENSES – FIXED?
Index: 1977 = 100
700
600
500
400
300
200
100
-
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total Undistributed Expenses CPI
PROVISION FOR DOUBTFUL ACCOUNTS

0.15%
0.111%
0.107%
0.10%
0.105%
0.070%
0.052% 0.058%
0.068%
0.05%
0.017%
0.00%
2007 2008 2009 2010 2011 2012 2013 2014
CREDIT CARD COMMISSIONS
2.30%
2.22% 2.22%
2.21%
2.20% 2.17%
2.19%
2.09%
2.10%
2.04%
2.01%
2.00%
2007 2008 2009 2010 2011 2012 2013 2014
Source: PKF Hospitality Research, Trends® in the Hotel Industry

REVENUE PAID BY CREDIT CARD*

Percent of Total Revenue Excluding Tax and Tip
85%
83.4%
82.8% 82.6%
81.8%
80.6%
80% 79.1% 79.3%
77.8%
75%
2007 2008 2009 2010 2011 2012 2103 2014
Note; * Assumptions made regarding discount rates, tip, and tax
UNIT-LEVEL MARKETING DEPARTMENT EXPENSES*
PER AVAILABLE ROOM
Compound Annual Change Rate – 2007 to 2014
Salaries & Wages 2.1%
Employee Benefits 2.5%
E Commerce 19.2%
Advertising -6.5%
Other Marketing 1.5%
Selling 1.6%
-10% -5% 0% 5% 10% 15% 20% 25%

Note: * Exclusive of franchise related costs.
DISTRIBUTION OF UNIT-LEVEL
MARKETING DEPARTMENT EXPENSES*
2007 2014
Selling Selling
26.4% Salaries & 26.4% Salaries &
Wages Wages
43.6% 45.0%
Other
Marketing
4.9%
Other
Marketing
5.0%
Advertising
Advertising 5.6%
10.0%
E Employee E
Commerce Benefits Commerce Employee
1.2% 14.0% 3.2% Benefits
14.9%
$2,837 PAR $3,181 PAR
Note: * Exclusive of franchise related costs.
DISTRIBUTION OF FRANCHISE RELATED FEES*
2007 to 2014
100%
Guest
25.3% 26.4% 27.6% 28.6% 29.1% 31.8% 29.7% Loyalty
32.8%
80% Program
Marketing
60% 33.5% 30.6% 27.6% 27.1% 27.3% 25.5% Assessment
25.1% 23.8%
40% Royalty
24.0% 26.0% 25.4% 27.2% Payment
21.1% 27.0% 26.3% 26.4%
20%
Reservation
20.0% 19.0% 18.8% 18.8% 16.7% 16.8% 17.0% 17.7%
0%
2007 2008 2009 2010 2011 2012 2013 2014
Note: * Brand and Non-Brand Managed Hotels
Source: PKF Hospitality Research | CBRE Hotels Trends® in the Hotel Industry
UTILITY EXPENSES AND ENERGY CPI

Annual Change
Source: PKF Hospitality Research | CBRE Hotels, Trends® in the Hotel Industry,
U.S. Bureau of Labor Statistics
MIX OF UTILITY EXPENSES - 2014
Gas/Fuel
10.6%
Steam
2.3%
Electricity
60.0% Water/Sewer
23.8%
Other
3.3%
HOTEL UTILITY EXPENSES

Change in Dollars Per Occupied Room – 2013 to 2014
HOTEL UTILITY EXPENSES
PROFITS
U.S. HOTELS UNIT-LEVEL NOI*
Annual Change
80%
+64.6% - 1943
60%
+12.3% - 2014
+14.8% - 2015F
40% +11.9% - 2016F
20%
0%
-20%
-19.4% - 2001
-22.4% - 1938
-35.4% - 2009
-40%
1937 1943 1949 1955 1961 1967 1973 1979 1985 1991 1997 2003 2009 2016F
Note: * Before deductions for capital reserve, rent, interest, income taxes, depreciation, amortization.
Source: PKF Hospitality Research | CBRE Hotels, 2015 Trends® in the Hotel Industry
33
HISTORICAL BUDGET ACCURACY

Percent Difference - Actual Compared To Budgeted Dollars*
14% 9.2%
7% 1.3%
3.5% 1.6% 3.8% 3.5% 0.8% 0.4%
0.1% 0.1% 0.07% 0.4%
0%
-0.5% -0.1% -1.3% -0.04%
-1.9%
-7% -4.2%
-8.0% -8.0%
-14% -10.9%
-14.0%
-14.6%
-21%
-22.3%
-28%
-29.1% -28.2%
-35%
2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Revenue Profit**
Note: * - Sample of properties that reported budget data.
** - Before deducting capital reserves, rent, interest, income taxes, depreciation, and amortization.
Source: PKF Hospitality Research | CBRE Hotels
THANK YOU FOR YOUR TIME
PKF HOSPITALITY RESEARCH | CBRE HOTELS

www.pkfc.com
Robert Mandelbaum
robert.mandelbaum@pkfc.com

2013 Income Expenses Summary

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

2013 Income Expenses Summary

Transféré par

Droits d'auteur :

Formats disponibles

A DEEP DIVE INTO THE HOTEL

Rooms Rental and

IMPACT OF REVPAR CHANGE COMPOSITION

F&B DEPARTMENT MIX OF REVENUES

-75% -50% -25% 0% 25% 50%

WHERE DID THE DOLLARS GO?

Percent of Total Revenue Percent of Total Expenses

COMPONENTS OF LABOR COST

Note: 9th Edition of USALI prior to 2007

Source: PKF Hospitality Research | CBRE Hotels, Bureau of Labor Statistics

HOURS WORKED VS. ROOMS OCCUPIED

UNDISTRIBUTED EXPENSES – FIXED?

Administrative and General Marketing

PROVISION FOR DOUBTFUL ACCOUNTS

Source: PKF Hospitality Research, Trends® in the Hotel Industry

REVENUE PAID BY CREDIT CARD*

80% 79.1% 79.3%

Employee Benefits 2.5%

Other Marketing 1.5%

-10% -5% 0% 5% 10% 15% 20% 25%

UTILITY EXPENSES AND ENERGY CPI

HOTEL UTILITY EXPENSES

HISTORICAL BUDGET ACCURACY

PKF HOSPITALITY RESEARCH | CBRE HOTELS

Vous aimerez peut-être aussi