Arizona Lodging Insights / Charts / 1st Qtr 1998 / Warnick & Co. / July 1998

Hotel Online Special Report

**Charts** **Arizona Lodging Insights** **First Quarter 1998** **back to commentary** **Warnick & Company**
Metropolitan Phoenix Extended - Stay Hotel Devlopment: 1988-1998
Metropolitan Phoenix New Hotel Development (No. of Rooms) 1994-1999
State of Arizona Lodging Market Performance First Quarter 1998
Metropolitan Tucson Lodging Market Performance First Quarter 1998
Metropolitan Phoenix Lodging Market Performance First Quarter 1998

Metropolitan Phoenix Extended-Stay Hotel Development: 1988-1998

Year/Property	Location	No. of Rooms	Total Rooms	Percent Increase
1988
Residence Inn	Northwest Phoenix	128	128	-

1991
Residence Inn	Scottsdale	122
Residence Inn	Tempe	126
		248	376	194%
1995
Homestead Village	Central Scottsdale	120	496	32%

1996
Homestead Village	Northwest Phoenix	136
Homestead Village	Northwest Phoenix	141
Homewood Suites	Central Phoenix	124
Homestead Village	Tempe	120
		521	1,017	105%
1997
Sierra Suites	Northwest Phoenix	89
Homegate Suites	Northwest Phoenix	134
Candlewood Suites	Northwest Phoenix	98
Residence Inn (expansion)	Northwest Phoenix	40
Homegate Suites	Phoenix Airport	139
Homegate Suites	Southeast Phoenix	131
Sierra Suites	Central Phoenix	113
Homestead Village	Mesa	122
Extended Stay America	Mesa	101
Hawthorn Suites	Central Scottsdale	108
Homewood Suites	North Scottsdale	114
Sierra Suites	North Scottsdale	107
Extended Stay America	North Scottsdale	120
		1,416	2,433	139%
1998
Residence Inn	Mesa	117
Residence Inn	Peoria	90
Extended Stay America	Northwest Phoenix	104
Homewood Suites	Northwest Phoenix	125
TownPlace Suites	Northwest Phoenix	90
Hawthorn Suites	Northwest Phoenix	153
Homegate Suites	Central Phoenix	129
Extended Stay America	Phoenix Airport	101
Summerfield Suites	Central Scottsdale	160
Hawthorn Suites	Chandler	140
Homewood Suites	Chandler	83
Candlewood Suites	Tempe	119
Mainstay Suites	Tempe	94
TownPlace Suites	Tempe	118
		1,623	4,056	67%

^{(1)
Percent change between 1988-1998: 3,069% Source: Warnick & Company}

**Metropolitan Phoenix** **New Hotel Development (No. of Rooms)** **1994-1999**
Year		Limited Service	Full Service	Resort	Total
1993 Inventory		12,571	12,144	8,912	33,627
1994		250	-	-	250
1995		1,000	-	70	1,070
1996		1,825	-	390	2,215
1997		3,000	-	120	3,120
Estimated
1998		5,500	-	23	5,523
1999		2,100	613	185	2,898
Potential Inventory		26,246	12,757	9,700	48,703
		(109% inc.)	(5.1% inc.)	(8.8% inc.)	(44.8% inc.)
Source: Warnick & Company

**State of Arizona**
**Lodging Market Performance**
**First Quarter 1998**
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998	1997		% Chg		1998		1997		% Chg	Sales	Supply		Demand
Total Arizona	69.8	73.2		-4.6		105.77		102.34		3.4	5.0	6.5		1.6

By Sub-Market	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998	1997		% Chg		1998		1997		% Chg	Sales	Supply		Demand
Flagstaff	47.2	53.1		-11.1		47.86		46.61		2.7	-3.8	5.5		-6.3
Northern Arizona	29.5	33.2		-11.1		45.65		49.17		-7.2	-15.8	2.0		-9.3
Western Arizona	68.2	68.8		-.9		53.51		49.44		8.2	8.6	1.2		.3
Central Arizona ⁽¹⁾	57.3	65.2		-12.1		75.10		75.02		.1	-8.6	3.9		-8.7
Southeast Arizona ⁽¹⁾	67.2	61.2		9.8		52.47		51.85		1.2	13.9	2.4		12.5
						By Rate and Type
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998	1997		% Chg		1998		1997		% Chg	Sales	Supply		Demand
Luxury	INS	INS		INS		INS		INS		INS	INS	INS		INS
Upscale	44.8	49.7		-9.9		85.37		85.46		-.1	-6.3	4.1		-6.2
Mid-Price	58.6	59.4		-1.3		54.60		52.09		4.8	6.9	3.5		2.0
Economy	52.2	52.1		.2		41.59		39.92		4.2	8.2	3.9		3.9
Budget	52.6	54.0		-2.6		33.39		31.98		4.4	.3	-1.3		-4.0
						By Size
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998	1997		% Chg		1998		1997		% Chg	Sales	Supply		Demand
Under 75 rooms	54.4	55.7		-2.3		52.46		51.14		2.6	4.6	4.4		2.0
75 - 149 rooms	51.1	53.6		-4.7		53.58		53.25		.6	-1.9	2.3		-2.5
150 - 299 rooms	55.1	56.6		-2.7		67.51		64.39		4.8	2.1	-		-2.6
300 - 500 rooms	INS	INS		INS		INS		INS		INS	INS	INS		INS

^{(1)
Non-metro areas INS: Insufficient Data} ^{Source: Smith Travel Research}

**Metropolitan Tucson**
**Lodging Market Performance**
**First Quarter 1998**
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998		1997		% Chg	1998		1997		% Chg	Sales		Supply		Demand
Metro Tucson Total	77.6		80.6		-3.7	108.57		104.84		3.6	3.0		3.3		-.5
						By Sub-Market
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998		1997		% Chg	1998		1997		% Chg	Sales		Supply		Demand
Central Tucson	69.3		72.4		-4.3	83.81		77.51		8.1	3.5		-		-4.3
Tucson South/Airport	79.2		81.7		-3.1	68.16		66.92		1.9	4.5		5.8		2.6
Tucson North/West	77.9		83.1		-6.3	131.28		124.48		5.5	.3		1.4		-4.9
Tucson East	80.6		82.2		-1.9	136.41		134.07		1.7	4.6		4.9		2.8
						By Rate and Type
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998		1997		% Chg	1998		1997		% Chg	Sales		Supply		Demand
Luxury	80.2		81.3		-1.4	198.89		189.44		5.0	5.6		1.9		.6
Upscale	79.5		82.2		-3.3	101.62		98.83		2.8	-.6		-		-3.4
Mid-Price	78.2		80.7		-3.1	76.85		76.33		.7	4.5		7.0		3.8
Economy	73.6		77.2		-4.7	66.65		62.89		6.0	3.4		2.4		-2.4
Budget	75.3		79.7		-5.5	46.54		47.89		-2.8	-4.3		4.2		-1.6
						By Size
	*Occupancy Percent*					*Average Room Rate*					*Percent Change in Room*
	1998		1997		% Chg	1998		1997		% Chg	Sales		Supply		Demand
Under 75 rooms	75.1		78.9		-4.8	90.56		88.49		2.3	2.0		4.7		-.3
75 - 149 rooms	79.6		82.4		-3.4	69.33		71.03		-2.4	1.6		7.8		4.1
150 - 299 rooms	75.0		77.8		-3.6	100.88		94.35		6.9	3.0		-		-3.7
300 - 500 rooms	79.9		81.7		-2.2	182.45		172.86		5.5	3.3		-		-2.2

Source : Smith Travel Research

**Metropolitan Phoenix**
**Lodging Market Performance**
**First Quarter 1998**
	*Occupancy Percent*									*Average Room Rate*								*Percent Change in Room*
	1998				1997				% Chg		1998		1997			% Chg		Sales		Supply			Demand
Metro Phoenix Total	78.8				83.2				-5.3		126.99		124.17			2.3		6.8		10.2			4.4
											By Sub-Market
	*Occupancy Percent*										*Average Room Rate*							*Percent Change in Room*
	1998				1997				% Chg		1998		1997			% Chg		Sales		Supply			Demand
Phoenix West	76.9				82.3				-6.6		84.49		81.78			3.3		7.3		11.1			3.8
Phoenix East	76.6				78.8				-2.8		156.79		150.54			4.2		6.2		4.9			1.9
Scottsdale	81.5				86.1				-5.3		182.61		179.76			1.6		6.5		10.7			4.9
Tempe	82.7				86.2				-4.1		100.51		96.92			3.7		15.1		15.6			10.9
Phoenix Airport	78.2				83.3				-6.1		93.03		92.48			.6		-1.8		3.9			-2.4
Mesa / Chandler	77.1				83.0				-7.1		87.03		87.07			-		8.3		16.7			8.3
											By Rate and Type
	*Occupancy Percent*										*Average Room Rate*							*Percent Change in Room*
	1998				1997				% Chg		1998		1997			% Chg		Sales		Supply			Demand
Luxury	79.5				82.8				-4.0		236.14		224.42			5.2		2.4		1.4			-2.6
Upscale	81.8				85.1				-3.9		141.32		136.85			3.3		4.7		5.5			1.4
Mid-Price	77.7				81.0				-4.1		99.94		98.50			1.5		16.4		19.6			14.8
Economy	77.2				80.9				-4.6		76.78		77.62			-1.1		10.5		17.2			11.7
Budget	78.2				86.5				-9.6		52.81		48.24			9.5		8.7		9.8			-.7
											By Size
	*Occupancy Percent*										*Average Room Rate*							*Percent Change in Room*
	1998				1997				% Chg		1998		1997			% Chg		Sales		Supply			Demand
Under 75 rooms	78.6				85.8				-8.4		80.11		86.29			-7.2		-3.4		13.6			4.1
75 - 149 rooms	77.9				84.0				-7.3		85.01		82.51			3.0		19.8		25.5			16.3
150 - 299 rooms	78.6				82.2				-4.4		118.99		116.36			2.3		2.1		4.5			-.1
300 - 500 rooms	82.3				86.4				-4.7		199.04		186.62			6.7		1.8		.3			-4.6
Over 500 rooms	78.8				79.7				-1.1		242.90		220.19			10.3		9.1		-			-1.1

Source : Smith Travel Research

Contact: Rich Warnick President Warnick & Co. [email protected]

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