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This excerpt taken from the WYN 10-K filed Feb 29, 2008. Lodging
Industry
The $143 billion domestic lodging industry is a growing
segment of the hospitality industry. Companies in the lodging
industry generally operate in one or more of the various lodging
segments, including luxury, upscale, midscale and economy, and
generally operate under one or more business models, including
franchise, management
and/or
ownership. The lodging industry is an important component of the
U.S. hospitality industry. In 2007, the U.S. lodging
industry boasted approximately 49,000 properties, which
represented approximately 4.5 million guest rooms, which
are comprised of approximately 3.0 million rooms in
franchised hotels and approximately 1.5 million rooms in
independent hotels. According to PricewaterhouseCoopers’
forecast, the U.S. lodging industry is expected to gross
$28.1 billion in pre-tax profits in 2007, which represents
a 5% increase from the prior year, followed by
$29.6 billion in 2008 and $32.5 billion in 2009. We
generally obtain our industry data from either
PricewaterhouseCoopers or Smith Travel Research. The most recent
data available from these sources was issued on February 8,
2008; however, such report was abridged and did not contain all
the industry data used in this Annual Report on Form 10-K,
including profits of the lodging industry. Therefore, the
lodging industry profits data contained herein reflects the most
recent data received from PricewaterhouseCoopers, which was the
August 2007 Hospitality Directions Report. We believe that the
lodging industry profits data may change when the December 2007
Hospitality Directions Report is released based upon a 20 basis
point reduction in the overall industry RevPAR growth from 5.7%
per the August 2007 report to 5.5% per PricewaterhouseCoopers
most recent forecast issued on February 8, 2008.
Growth in demand in the lodging industry is driven by two main
factors: (i) the general health of the travel and tourism
industry and (ii) the propensity for corporate spending on
business travel. Demand for lodging in the United States grew by
a 1.9% Compound Annual Growth Rate (CAGR) for the five year
period from 2003 through 2007. During this five year period, the
industry added approximately 523,600 rooms.
Table of Contents
Performance in the lodging industry is measured by certain key
metrics, such as average daily rate, or ADR, average occupancy
rate and revenue per available room, or RevPAR, which is
calculated by multiplying ADR by the average occupancy rate. In
2007, ADR in the United States was $103.46, which is 5.7% higher
than the rate in the prior year, the average occupancy rate was
63.2%, which is relatively unchanged versus the rate in the
prior year, and RevPAR was $65.38, which is 5.5% higher than
RevPAR in the prior year. The following table demonstrates the
trends in the key performance metrics:
This excerpt taken from the WYN 10-K filed Mar 7, 2007. Lodging
Industry
The $134 billion domestic lodging industry is a growing
segment of the hospitality industry. Companies in the lodging
industry generally operate in one or more of the various lodging
segments, including luxury, upscale, middle and economy, and
generally operate under one or more business models, including
franchise, management
and/or
ownership. The lodging industry is an important component of the
U.S. hospitality industry. In 2006, the U.S. lodging
industry boasted approximately 49,000 properties, which
represented approximately 4.5 million guest rooms, which
are comprised of approximately 3.0 million rooms in
franchised hotels and approximately 1.5 million rooms in
independent hotels. According to PricewaterhouseCoopers’
forecast, the U.S. lodging industry is expected to gross
$25.1 billion in pre-tax profits in 2006, which represents
an 11% increase from the prior year, followed by
$27.2 billion in 2007 and $29.6 billion in 2008.
Growth in demand in the lodging industry is driven by two main
factors: (i) the general health of the travel and tourism
industry and (ii) the propensity for corporate spending on
business travel. Demand for lodging grew by a 1.3% CAGR in the
United States from 2000 through 2006. During this seven year
period, the industry added approximately 639,000 rooms. Demand
for lodging has grown even faster in the past four years from
2003 to 2006 at a 3.3% CAGR. Even with the recent increase in
the number of hotel rooms, demand in the past few years has been
outpacing supply, which creates a favorable business environment
for lodging companies.
Table of Contents
Performance in the lodging industry is measured by certain key
metrics, such as average daily rate, or ADR, average occupancy
rate and revenue per available room, or RevPAR, which is
calculated by multiplying the ADR by the average occupancy rate.
Over the past five years, the trends in these performance
metrics have generally indicated that the lodging industry is
growing. In 2006, the ADR in the United States was $97.24, which
is 7.0% higher than the rate in the prior year, the average
occupancy rate was 63.4%, which is 0.4% higher than the rate in
the prior year and RevPAR was $61.62, which is 7.4% higher than
RevPAR in the prior year. The following table demonstrates the
trends in the key performance metrics:
This excerpt taken from the WYN 8-K filed Jul 19, 2006. Lodging Industry The $124 billion domestic lodging industry is a growing segment of the hospitality industry. Companies in the lodging industry generally operate in one or more of the various lodging segments, including luxury, upscale, middle and economy, and generally operate under one or more business models, including franchise, management or ownership. The lodging industry is an important component of the U.S. hospitality industry. In 2004, the U.S. lodging industry boasted approximately 47,600 properties, which represented more than approximately 4.4 million guest rooms, which are comprised of approximately 3.0 million rooms in franchised hotels and approximately 1.4 million rooms in independent hotels. According to PricewaterhouseCoopers’ forecast, the U.S. lodging industry is expected to gross $20.9 billion in pre-tax profits in 2005, which represents a 25.1% increase from the prior year, followed by $25.6 billion in 2006 and $30.3 billion in 2007. Growth in demand in the lodging industry is driven by two main factors: (i) the general health of the travel and tourism industry and (ii) the propensity for corporate spending on business travel. Demand for lodging grew by a 1.2% compounded annual growth rate (CAGR) in the United States from 2000 through 2005. During this six year period, the industry added approximately 518,000 rooms. Demand for lodging has grown even faster in the past three years from 2003 to 2005 at a 3.8% CAGR. Even with the recent increase in the number of hotel rooms, demand in the past few years has been outpacing supply, which creates a favorable business environment for lodging companies. Performance in the lodging industry is measured by certain key metrics, such as average daily rate, or ADR, average occupancy rate and revenue per available room, or RevPAR, which is calculated by multiplying the ADR by the average occupancy rate. Over the past five years, the trends in these performance metrics have generally indicated that the lodging industry is growing. In 2005, the ADR in the United States was $90.84,
117
Table of Contentswhich is 5.3% higher than the rate in the prior year, the average occupancy rate was 63.1%, which is 2.9% higher than the rate in the prior years and RevPAR was $57.34, which is 8.4% higher than RevPAR in the prior year. The following table demonstrates the trends in the key performance measures: | EXCERPTS ON THIS PAGE:
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