Tampa Lodging Market – Themes for 2014

Tampa Lodging Market – Themes for 2014

The Tampa lodging market has been one of the slower Florida markets to recover, but
its imminent return to peak levels is evident in the number of high-profile city-wide
events that will be hosted by the city in the upcoming year.

Tampa Bay was ranked among the top 20 fastest growing economies in the country
for 2013, ranking 16 out of 363 metro areas according to the U.S. Conference of
Mayors. Economic recovery is attributable to enhance airport facilities, new
international flights, and the relocation of many healthcare companies to the area.

Limited new hotel supply on a comparative basis, especially in the luxury segment
where barriers to entry are high.

RevPAR growth is expected to be strong in 2014 surpassing record levels.

Strong average rate growth in 2014 as markets focused on recapturing rate lost during
economic downturn, evidenced by the 11.0% rate increase expected.
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Tampa Lodging Overview

Tampa RevPAR is projected to grow 11.8% in 2014, driven primarily though strong
market rate growth.
Tampa-St. Petersburg
Market Performance (2008-2014F)
Year
Supply
% Change
Demand
% Change
Market
Occupancy
Average Daily
% Change
Rate
2008
2.1%
-6.1%
56.3%
$107.46
2009
3.3%
-4.5%
52.1%
2010
1.3%
7.3%
2011
-0.4%
2012
RevPAR
% Change
2.8%
$60.55
-5.5%
$98.50
-8.3%
$51.33
-15.2%
55.2%
$91.40
-7.2%
$50.46
-1.7%
9.1%
60.5%
$93.76
2.6%
$56.72
12.4%
0.1%
4.4%
63.1%
$100.19
6.9%
$63.23
11.5%
2013
-0.1%
2.6%
64.6%
$100.47
0.4%
$64.89
3.1%
2014F
0.7%
1.3%
65.0%
$111.63
11.1%
$72.53
11.8%
4.4%
0.4%
2009-2013E CAGR
4.8%
Source: PKF
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Tampa Tourism

From 2010 to 2012, Tampa tourism volume increased approximately 900,000 and
spending increased $0.5B.

Visitor volume is still 11.4% below previous peak levels experienced in 2007 of 16M.

Major citywide events scheduled for 2014 which will have a large impact on visitation
and spending include the Tampa Bay Outback Bowl, the New York Yankees Fantasy
Camp, IBM’s Global Summit, and the “Bollywood” awards, which may draw as many
visitors to Tampa as the Super Bowl.
Source: Visit Tampa Bay
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Tampa International Airport Volumes


Passenger volumes at TIA have been steadily recovering, with an additional +/- 12%
growth needed to return to peak. Today, TIA remains in the top 30 of all US airports in
volume.
TIA has a number of existing infrastructure improvements that will continue to improve
what we all know is America’s finest airport.
Tampa International Airport
Passenger Counts
2000-2013
Year
Emplaned
Deplaned
Total
% Change
2000
2001
2002
2003
2004
2005
2006
2007
8,037,434
7,963,970
7,760,828
7,761,254
8,702,213
9,538,757
9,438,089
9,579,029
8,005,949
7,924,466
7,733,840
7,762,314
8,694,623
9,506,633
9,429,452
9,575,928
16,043,383
15,888,436
15,494,668
15,523,568
17,396,836
19,045,390
18,867,541
19,154,957
N/A
-1.0%
-2.5%
0.2%
12.1%
9.5%
-0.9%
1.5%
2008
2009
9,142,879
8,511,240
9,120,055
8,454,305
18,262,934
16,695,545
-4.7%
-8.6%
2010
2011
2012
2013
8,368,499
8,380,473
8,462,645
8,477,966
8,277,266
8,289,842
8,358,214
8,442,120
16,645,765
16,670,315
16,820,859
16,920,086
-0.3%
0.1%
0.9%
0.6%
Source: Tampa International Airport
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Westshore Performance Snapshot


Westshore’s lodging market experienced a slight decrease in performance metrics in
2013 due in large part to the market’s outstanding performance in 2012 which was
bolstered by the Republican National Convention.
Compared to 2011, RevPAR in the Westshore market was up 22% in 2013, very strong
two-year growth.
Westshore Loding Market At a Glance
Occupancy
ADR
Rev PAR
2013
71.1%
$96.14
$68.35
2012
70.6%
$97.09
$68.51
% Change
0.7%
(1.0%)
(0.2%)
Occupancy
ADR
Rev PAR
2013
71.1%
$96.14
$68.35
2011
67.5%
$91.46
$56.04
% Change
5.3%
5.1%
22.0%
Source: Smith Travel Research
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Westshore YoY Comparison – Occupancy
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Westshore YoY Comparison – ADR
“The RNC Effect”
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Westshore YoY Comparison – RevPAR
“The RNC Effect”
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Submarket Performance Metrics – Occupancy
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Submarket Performance Metrics – ADR
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Submarket Performance Metrics – RevPAR
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Westshore Hotel Inventory – Full Service
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Westshore Hotel Inventory – Limited Service
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Downtown Hotel Inventory
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Westshore Brand Representation
Number of Hotels by Brand Family
Hilton
8
Other/Independents
10
Starwood
2
Marriott
8
Wyndham
3
Choice
4
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IHG
5
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Brand Opportunities
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Notable Trades
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Westshore/Downtown Development Pipeline
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Westshore Lodging Market – Going Forward

RevPAR in the Westshore submarket has yet to return to its previous full-year peak,
leaving plenty of upside potential in the near term.

Improving office market and expanding corporate presence will lead to growing and
sustained demand.

Westshore will be able to capitalize on the Tampa Bay region’s ability to attract major
events.

More transactions are likely to occur over next 12-24 months as owners are looking to
take advantage of a heated market characterized by improving lodging
fundamentals, increased competition by buyers targeting a fairly limited supply of
assets around the state, and historically low interest rates.

Limited projected new supply in near term but aging product may create
opportunities for new development or redevelopment of existing assets.

We are in the early innings of the hotel development cycle. Lender and equity
discipline remains, but quality projects with strong sponsors will now be able to attract
capital.
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