Travel Trends: What You Need to Know About NextGen Influencers and Disruptors The Lodging Conference

Disrupting HomeShareIng Jamie Lane, Sr Managing Economist

What everyone talking about today?

Where have we Been?

u.S. hotels* on Airbnb (Fastest Growing Group) Airbnb Begins It’s Transition to an OTA Source: CBRE Hotels’ Americas Research, Airdna, Q1 2019. Note: Based on self-classification by host on Airbnb.com * - Hotel Data can be misleading because each unit reported on Airbnb.com can represented multiple hotel rooms

Branded Apartment/HomeShare Hotels!

A professional home-share experience Whats driving growth A professional home-share experience Provides “beautiful” spaces and brand standards Expanding to most major cities (where legal) Going into new build developments Huge interest from investors and VC’s Appeal for both guests and building owners

Similar business model to Flex office

Impact on hotels?

Record Airbnb net Unit Growth In the U.S. in 2018 Slowing Growth Rates Can be Misleading as the Base of Units Grows Source: CBRE Hotels’ Americas Research, Airdna, Google Trends, STR, Q1 2019. * - Average Daily Active Available Units

NEW ROOMS ADDED Do We Have a Problem Now? Well Above Previous Peaks 12 MMA of New Hotel Rooms & Airbnb Units Added in the U.S. Do We Have a Problem Now? Well Above Previous Peaks Well Below Previous Peaks R:\Team-PKFHR\_HRG\_DataShare\STRData\Monthly Census and Pipeline\Pipeline_Existing_UnderRenovation_Database_US_January_2019.xlsx Create a new tab do a SUMIF(Room_Count,Openingdate,”MostRecentDate”) Copy and paste into the link below under New Rooms Added R:\Team-PKFHR\_HRG\_Marketing\Presentations\Current Slides\PIPELINE\PipelineUC.xlsx Source: STR, CBRE Hotels’ Americas Research, Airdna, Sept. 2019.

Airbnb & Hotel Supply in the US Average Daily Active Airbnb & Hotel Supply in U.S. Year Hotel Rooms Hotel^ Airbnb Units Airbnb^ Airbnb+Hotels Airbnb+Hotels^ 2012 4,848,884 0.3% 13,000 150% 4,848,885 0.5% 2013 4,873,095 28,000 115% 0.8% 2014 4,902,655 0.6% 58,000 107% 1.2% 2015 4,947,954 0.9% 115,235 99% 5,063,189 2.1% 2016 5,017,721 1.4% 223,710 98% 5,241,431 3.5% 2017 5,103,984 1.7% 342,865 53% 5,446,848 3.9% 2018 5,205,425 2.0% 469,425 37% 5,674,851 4.2% Previous Peak @ 3.1% Q1 2009 2018 Q2 5,209,886 466,337 5,676,223 2019 Q2 5,313,636 2.0% 589,631 26% 5,903,267 4.0% Source: CBRE Hotels’ Americas Research, Airdna, Google Trends, STR, Q2 2019.

Share of Airbnb’s US Supply Major Markets shrinks substantially 2014 Top Airbnb MSA’s Changing Share of those Same Cites 1. New York 2. Los Angeles 3. San Francisco 4. Miami 5. Washington 6. Chicago 7. San Diego 8. Austin 9. Boston 10. Seattle Source: CBRE Hotels’ Americas Research, Airdna, Google Trends, STR, Q1 2019.

Airbnb Penetration in the US 2018 Airbnb Units as a percent of Hotel Room in the top 30 Hotel Markets Rank Market Hotel Rooms Airbnb Units Penetration 1 Riverside & San Bernardino, CA 45,233 9,572 21.2% 16 Phoenix, AZ 65,255 4,744 7.3% 2 Los Angeles/Long Beach, CA 103,600 21,438 20.7% 17 Philadelphia, PA-NJ 48,677 3,456 7.1% 3 New York, NY 119,949 20,618 17.2% 18 Washington, DC-MD-VA 112,956 7,668 6.8% 4 Miami/Hialeah, FL 56,203 9,092 16.2% 19 Anaheim/Santa Ana, CA 57,625 3,853 6.7% 5 Austin, TX 39,175 5,998 15.3% 20 Atlanta, GA 98,174 5,701 5.8% 6 Seattle, WA 46,871 6,923 14.8% 21 Minneapolis/St Paul, MN-WI 42,926 2,209 5.1% 7 San Diego, CA 61,921 8,441 13.6% 22 San Antonio, TX 46,910 2,384 8 Orlando, FL 125,784 15,678 12.5% 23 Chicago, IL 116,865 5,503 4.7% 9 New Orleans, LA 40,897 5,056 12.4% 24 Norfolk/Virginia Beach, VA 36,937 1,513 4.1% 10 Boston, MA 57,021 6,820 12.0% 25 Houston, TX 89,661 3,205 3.6% 11 San Jose/Santa Cruz, CA 35,514 4,092 11.5% 26 Charlotte, NC-SC 36,475 1,294 3.5% 12 Nashville, TN 42,638 4,747 11.1% 27 Dallas, TX 87,506 2,904 3.3% 13 San Francisco/San Mateo, CA 52,340 5,799 28 St Louis, MO-IL 39,062 1,261 3.2% 14 Tampa/St Petersburg, FL 46,627 4,862 10.4% 29 Las Vegas, NV 165,386 4,948 3.0% 15 Denver, CO 48,164 4,510 9.4% 30 Detroit, MI 44,098 1,058 2.4% United States 5,205,425 441,466 8.5% Source: CBRE Hotels’ Americas Research, Airdna, STR, Q1 2019.

Thank you Jamie.lane@cbre.com