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December 18th

In This Issue

Economic Snapshot

Economic Notes:

This Weeks Leads:
 

Scorecard

Hospitality – Lodging – October 2006

How do we compare to our neighbors?

Out of state

In state

Occupancy – 2006 - % Change 06/05

  1. Los Angeles-Long Beach, CA 76.2% 2.7%
  2. San Diego, CA 73.5% 6.2%
  3. Albuquerque, NM 71.5% 4.8%
  4. Anaheim 71.4% -5.4%
  5. Seattle, WA 71.3% 4.4%
  6. Phoenix, AZ 70.6% 1.0%
  7. Salt Lake County, UT 69.8% 5.9%
  8. Portland, OR 67.6% 2.4%
  9. Denver, CO 67.3% 5.7%
  10. San Antonio, TX 63.9% -8.5%
  11. Reno MSA 60.8% -5.0%

Average Room Rate – 2006 - % Change 06/05

  1. San Diego, CA $132.24 12.1%
  2. Seattle, WA $117.64 12.3%
  3. Los Angeles-Long Beach, CA $115.49 10.0%
  4. Phoenix, AZ $115.38 11.1%
  5. Anaheim $102.76 9.1%
  6. San Antonio, TX $101.61 13.1%
  7. Denver, CO $95.85 13.0%
  8. Reno MSA $91.80 3.9%
  9. Salt Lake County, UT $91.68 9.1%
  10. Portland, OR $90.32 10.9%
  11. Albuquerque, NM $82.00 12.5%

Revenue Per Available Room – 2006 - % Change 06/05

  1. San Diego, CA $97.20 19.1%
  2. Los Angeles-Long Beach, CA $87.96 12.9%
  3. Seattle, WA $83.89 17.2%
  4. Phoenix, AZ $81.47 12.3%
  5. Anaheim $73.35 3.2%
  6. San Antonio, TX $64.97 3.5%
  7. Denver, CO $64.47 19.3%
  8. Salt Lake County, UT $63.98 15.5%
  9. Portland, OR $61.07 13.6%
  10. Albuquerque, NM $58.60 17.8%
  11. Reno MSA $55.80 -1.3%

Source: Smith Travel Research

Room Nights Available – 2006 - % of Total

  1. DOWNTOWN & EAST SLC 147,681 28.0%
  2. AIRPORT & NORTH SLC 54,932 10.4%
  3. SOUTH VALLEY SLC 54,131 10.3%
  4. UTAH MOUNTAIN RESORTS 52,457 9.9%
  5. ST. GEORGE 45,744 8.7%
  6. UTAH COUNTY 43,493 8.2%
  7. DAVIS COUNTY 33,193 6.3%
  8. OTHER UTAH 23,242 4.4%
  9. OGDEN 23,156 4.4%
  10. CEDAR CITY 22,509 4.3%
  11. WEST VALLEY CITY 15,779 3.0%
  12. LOGAN 11,424 2.2%

COMBINED TOTALS 527,741 100.0%

Room Occupancy % – 2006

  1. LOGAN 75.5%
  2. DOWNTOWN & EAST SLC 74.2%
  3. AIRPORT & NORTH SLC 74.1%
  4. SOUTH VALLEY SLC 72.3%
  5. UTAH COUNTY 72.2%
  6. ST. GEORGE 70.6%
  7. OTHER UTAH 68.8%
  8. WEST VALLEY CITY 68.4%
  9. DAVIS COUNTY 67.6%
  10. OGDEN 62.5%
  11. CEDAR CITY 59.3%
  12. UTAH MOUNTAIN RESORTS 43.4%

COMBINED TOTALS 68.5%

Average Room Rate – 2006 – Revenue Per Avail Room (REVPAR)

  1. DOWNTOWN & EAST SLC $101.18 $75.09
  2. UTAH COUNTY $81.32 $58.74
  3. SOUTH VALLEY SLC $80.14 $57.92
  4. ST. GEORGE $81.29 $57.36
  5. AIRPORT & NORTH SLC $76.54 $56.73
  6. LOGAN $66.37 $50.09
  7. WEST VALLEY CITY $72.17 $49.34
  8. DAVIS COUNTY $70.67 $47.79
  9. UTAH MOUNTAIN RESORTS $109.95 $47.67
  10. OGDEN $71.63 $44.77
  11. OTHER UTAH $64.72 $44.54
  12. CEDAR CITY $69.66 $41.29

COMBINED AVERAGE $85.63 $58.66

Occupancy Percentage by Month - 2006

  1. AUGUST 79.6%
  2. MARCH 77.9%
  3. JUNE 75.9%
  4. JULY 73.2%
  5. SEPTEMBER 72.4%
  6. FEBRUARY 69.1%
  7. OCTOBER 68.5%
  8. APRIL 66.1%
  9. MAY 62.5%
  10. JANUARY 61.1%

Revenue Per Avail Room (REVPAR) by Month - 2006

  1. JANUARY $84.16
  2. MARCH $81.25
  3. FEBRUARY $81.24
  4. AUGUST $77.17
  5. OCTOBER $75.28
  6. SEPTEMBER $74.35
  7. JULY $73.31
  8. JUNE $73.14
  9. APRIL $72.84
  10. MAY $71.29

Source: Rocky Mountain Lodging Report

Greetings!

Hospitality/Lodging

How do we compare?

Who is making money?

Economic Notes

This Weeks Leads


  • Economic Snapshot
    		•

    Tax Reciepts – First Five Months FY2007

    • Sales and Use Taxes (Gen Gov’t) +6.2%
    • Corporate Franchise Taxes (Gen Gov’t) +39.7%
    • Individual Income Taxes (Education) +13.5%
    • Severance Taxes (Gen Gov’t) -14.4%
    • Motor Fuel Taxes (Transportation) +1.3%

    Source: Utah State Tax Commission, 12/13/06

    • Utah's jobless rate fell to an unprecedented low last month, according to the latest data from the Department of Workforce Services. The state's unemployment rate fell to 2.5 percent for October, down from 2.8 percent in September. At this time last year, the jobless rate was 4.2 percent.
    • Source: State of Utah – Workforce Services
    • Utah's population estimates, released in November, show Utah's 2006 population at 2,615,129 — an estimated growth of 2.7 percent, or 67,740 people since 2005.
    • Source: Bureau of Census
    • The number of building permits issued for new houses, condominiums and apartments is falling across Utah, but in Utah County permits are skyrocketing. Residential permits issued across the state from Jan. 1 through Sept. 30 fell to 20,387, down 4.5 percent from 21,347 permits handed out during the same nine-month period in 2005,
    • Source: University of Utah's Bureau of Economic and Business Research.
  • Economic Notes:
    		•

    • Global Business Confidence
    • Global business confidence slipped to a more than three-year low in early December. Hiring plans have fallen notably in the past two weeks, businesses are cutting inventories, and even heretofore strong equipment and software investment has turned a bit soft. Confidence is weakest among vehicle and transportation companies, followed closely by residential real estate firms. Manufacturers have also become decidedly more cautious. Sentiment is consistent with a global economy that is growing below its potential. The best news from the survey is that pricing pressures are off sharply from their summer peaks.
    • Federal Dificit
    • The unified federal deficit for November was $75.6 billion, slightly larger than the CBO's preliminary estimate. The monthly deficit was $7.5 billion smaller than the shortfall incurred in November 2005. Through the first two months of the fiscal year, the unified deficit has reached $125 billion, $5.4 billion smaller than over the same period during FY2006.
    • International Trade (FT900)
    • The nominal U.S. trade deficit in goods and services narrowed by 8.4% in October. The U.S. trade deficit came in at $58.9 billion, $5.4 billion less than September's revised $64.3 billion, according to the Bureau of Economic Analysis. In October, exports increased and imports decreased. The goods deficit with China, however, widened 5.8% to $24.4 billion. Crude oil prices decreased in October, which in return decreased the nation's total import bill for energy- related petroleum products to $22.3 billion.
    • The Reality of the Chinese Welcome Mat for Foreign Banks
    • China recently opened its retail banking market for foreign banks that become incorporated in the country. Though the new regulation provides a promising opportunity for foreign banks in the long term, it is unlikely to significantly alter the banking environment in the near future.
    • MBA Mortgage Applications Survey
    • Mortgage demand increased 11.4% in the week ending December 5. Purchase applications increased 8.7% and refinance applications increased 15.8%.
    • Business Inventories (MTIS)
    • Total business inventories increased 0.4% for October, between our and consensus expectations. Inventories at retailers were unchanged from the previous month. Total business sales decreased by 0.2%. The total I/S ratio moved up yet again, to 1.31.
    • Retail Sales (MARTS)
    • Total retail sales rose an unexpectedly strong 1.0% in November, following October’s upwardly revised 0.1% decline. Surprisingly large gains occurred in several segments, including electronics and appliance stores, building supply stores, gasoline stations and auto dealers. Non-auto sales rose 1.1%. Year-over-year growth rose to 5.6% in total and 5.3% excluding autos.
    • Chain Store Sales
    • Chain store sales increased 1.0% in the week ending December 9, as sales retained their common volatile pattern during the holiday season, according to the ICSC. Year-over-year growth increased modestly, to 3.2%, the best growth in nearly two months.
    • Manpower Employment Outlook Survey
    • According to the Manpower Outlook Survey, employers in all of the 27 countries surveyed expect to add staff in the first quarter of 2007. Hiring intentions eased in the U.S., however, with the net employment outlook indicating that 12% (not seasonally adjusted) of employers expect to increase hiring, compared to 20% in the previous stanza. In the Asia Pacific, hiring activity remains solid but has also eased moderately since the last quarter. In the euro area, positive hiring activity is expected, with many countries—including Germany and Spain among others—reporting their most optimistic employment outlooks since the survey began.
    • Weekly Natural Gas Storage Report
    • Underground storage of natural gas decreased by 168 billion cubic feet during the week ending December 8. This was more than the expected draw of 153 Bcf from storage. Inventories are now 7.5% above the five-year average. This report is likely to add some bullish pressure to prices.
    • Oil and Gas Inventories
    • Crude inventories fell a massive 4.3 million barrels during the week ending December 8 according to the Energy Information Administration. Distillate inventories inched lower by 0.5 million barrels. Gasoline stocks dropped a scant 0.1 million barrels. This report will set a slightly bullish tone in markets today.

    Source: Economy.com

  • This Weeks Leads:
    		•

    • Ben & Jerry’s Ice Cream
    • Unilever Corp. trades as Ben & Jerry’s Ice Cream at 650 locations nationwide and internationally.
    • The stores, which offer ice cream, frozen yogurt, desserts and sorbets, occupy spaces of 600 sq.ft. to 1,200 sq.ft. in malls, urban/downtown areas and power and tourist centers.
    • Growth opportunities area sought nationwide and internationally during the coming 18 months.
    • Typical leases run 10 years with options. A vanilla shell is required.
    • For more information, contact
      • Calen King,
      • Unilever Corp.,
      • 30 Community Drive,
      • South Burlington, VT 05403;
      • 802-846-1500 Ext. 7818,
      • Fax 802-846-1538;
      • Web site: www.benjerry.com.
    • Kitchen Collection & Le Gourmet Chef
    • The Kitchen Collection, Inc. trades as Kitchen Collection at 200 locations nationwide.
    • The stores, offering appliances, cookware and decorative items for the kitchen, occupy spaces of 3,100 sq.ft. to 6,000 sq.ft. in outlet centers.
    • Growth opportunities are sought nationwide during the coming 18 months. Typical leases run five years. A vanilla shell and specific improvements are required.
    • The company also trades as Le Gourmet Chef at 77 locations nationwide.
    • The stores, offering a variety of house wares and gourmet foods for the kitchen, occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in regional malls. Growth opportunities are sought nationwide during the coming 18 months.
    • For more information, contact
      • Larry White,
      • The Kitchen Collection, Inc.,
      • 71 East Water Street,
      • Chillicothe, OH 45601;
      • 740-773- 9150,
      • Fax 740-774-0596;
      • Web site: www.legourmetchef.com.
    • Equinox Fitness Clubs
    • Equinox Holdings, Inc. trades as Equinox Fitness Clubs. The 36-unit chain operates locations throughout CA, CT, FL, IL and NY.
    • The fitness centers occupy spaces of 25,000 sq.ft. to 40,000 sq.ft. in freestanding locations, entertainment, mixed-use, power and specialty centers and urban/downtown areas.
    • Plans call for six to nine openings throughout San Diego, San Francisco, Los Angeles and Orange County, CA; Southern, FL; Boston, MA; Northern, NJ; New York, NY; Dallas, TX and Washington, DC during the coming 18 months.
    • Typical leases run 15 years with options. A vanilla shell and specific improvements are required.
    • Preferred demographics include a population of 70,000 within three miles earning $125,000 as the average household income.
    • Preferred cotenants include upscale supermarkets.
    • For details, contact:
      • Greg Covey
      • Equinox Holdings, Inc.
      • 895 Broadway
      • New York, NY 10003
      • 212-774-6386, Fax 212-780-9806
      • Email: greg.covey@equinoxfitness.com
      • Web site: www.equinoxfitness.com
    • Nine West, Enzo, Easy Spirit and Bandolino
    • Nine West Group, Inc. trades as Nine West, Enzo, Easy Spirit and Bandolino.
    • The 1,000-unit chain operates locations nationwide.
    • The shoe stores occupy spaces of 1,500 sq.ft. to 3,000 sq.ft. in malls, strip, specialty and outlet centers and in urban downtown areas.
    • Growth opportunities are sought throughout the existing market during the coming 18 months.
    • For details, contact:
      • Michael Sadi
      • Nine West Group, Inc.
      • 1129 Westchester Avenue
      • White Plains, NY 10604
      • 914-640-6400, Fax 914-645-5521
      • Email: msadi@jny.com
      • Web site: www.ninewest.com

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