WYN » Topics » Chain Scale Segment Forecast - 2009

This excerpt taken from the WYN 10-K filed Feb 27, 2009.
Chain Scale Segment Forecast – 2009
 
                                   
    Estimated
  2009E
  2009E Change
  2009E
  2009E
  2009E
    Average Daily
  Change in
  in Avg. Room
  Change in
  Change in
  Change in
Segment   Room Rate (ADR)   Demand   Avg. Room Supply   Occupancy %   ADR   RevPAR
 
Luxury
  Greater than $210     (5.7)%     5.4 %     (10.5)%     (6.9)%     (16.7)%
Upper upscale
  $125 to $210     (5.2)%     2.4 %     (7.4)%     (6.1)%     (13.0)%
Upscale
  $95 to $125     (1.2)%     5.5 %     (6.3)%     (5.8)%     (11.8)%
Midscale with food-and-beverage
  Less than $95     (10.0)%     (4.1)%     (6.1)%     (5.4)%     (11.2)%
Midscale without Food-and-beverage
  Greater than $65     (1.2)%     4.7 %     (5.6)%     (3.7)%     (9.1)%
Economy
  Less than $65     (5.6)%     0.9 %     (6.4)%     (3.8)%     (10.0)%
Total
        (4.5)%     2.1 %     (6.4)%     (5.2)%     (11.2)%
 
Sources: Smith Travel Research (Estimated Average Daily Room Rate (ADR)); PricewaterhouseCoopers (Operating Statistics). 2009 data is as of January 2009.
 
Typically, companies in the lodging industry operate under one or more of the following three business models:
 
•        Franchise. Under the franchise model, a company typically grants the use of a brand name to owners of hotels that the company neither owns nor manages in exchange for royalty fees that are typically equal to a percentage of room sales. Owners of independent hotels increasingly have been affiliating their hotels with national lodging franchise brands as a means to remain competitive. In 2008, the share of hotel rooms in the United States affiliated with a national lodging franchise brand was approximately 68%.
 
•        Management. Under the management model, a company provides hotel management services to lodging properties that it owns and/or lodging properties owned by a third party in exchange for management fees, which may include incentive fees based on the financial performance of the properties.
 
•        Ownership. Under the ownership model, a company owns properties and therefore benefits financially from hotel revenues and any appreciation in the value of the properties.
 
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