September 23, 2020 ACVB Board of Directors Presentation

ACVB BOARD OF DIRECTORS MEETING (Annual meeting for bylaws) Wednesday, September 23, 2020 8:00 a.m. via video conference

CALL TO ORDER Jo Ann Herold

Chair, Board of Directors

DESTINATION REPORT Mark Vaughan EVP/CSO

ATLANTA OCCUPANCY – AUGUST 2020 2019 ACVB tax revenue district TITLE

TITLE

123

Atlanta convention hotels

TITLE

TITLE

Source: STR

123

TITLE

TITLE 37.7%

123

123

81.3%

123

Hotels within 1-mile radius of GWCC TITLE 123

Metro Atlanta

76.2%

2020

79.1%

71.2%

36.1% 123

123

123

37.6% 123

123

123 47.6%

KEY SALES ACTIVITIES Year-to-date booking goal – August Year-to-date lead goal – August

PLACE IMAGE HERE

97.6% 53.6%

Direct Sales Events ASAE Annual Meeting (virtual) IAEE Expo! Expo!

Holiday Showcase (virtual) PCMA

August December December January

BOOKINGS

GROUP ROOMS

BY EVENT DATE AND STATUS

AUGUST 2020 YTD

City of Atlanta vs. luxury and upper upscale hotels of top 25 markets

AUGUST 2020 – 12 MONTH RUNNING TOTAL City of Atlanta vs. luxury and upper upscale hotels of top 25 markets

FINANCIAL REPORT Gregory Pierce EVP/CAO/CFO

2020 FORECAST ASSUMPTIONS FOR THE PURPOSE OF FINANCIAL PROJECTIONS Hotel revenue for the entire year for the City of Atlanta projected to be down PLACE IMAGE HERE

55% to 60% Average occupancy rate for the entire year for the City of Atlanta projected to be between

36% to 39% @christopherbw

ATLANTA CONVENTION & VISITORS BUREAU STATEMENT OF REVENUE AND EXPENSE (in millions) Revenue – public Revenue – private

ACTUAL FORECAST CURRENT FULL YTD 9/1/20 thru YEAR FORECAST 08/31/20 12/31/20 FYE 12/31/20 Original $7.1 $4.0 $11.1 $27.5 $2.5 $0.0 $2.5 $6.5

Public revenue released/reserves Total revenue

$3.5 $13.1

$1.5 $5.5

$5.0 $18.6

$0.0 $34.0

Direct promotional expense Payroll and related expense

$6.0 $5.9

$1.9 $2.8

$7.9 $8.7

$20.1 $10.2

Operating expense

$1.4

$0.6

$2.0

$3.1

Total expense

$13.3

$5.3

$18.6

$33.4

Excess (deficiency)

($0.2)

$0.2

$0.0

$0.6

ATLANTA CONVENTION & VISITORS BUREAU BALANCE SHEETS (in millions)

AS OF 08/31/20

YE 2019

Var.

Cash and equivalents

$2.4

$3.2

($0.7)

Accounts receivable

$1.5

$5.1

($3.9)

Investments

$7.6

$11.5

($2.4)

Prepaid and other assets

$0.5

$1.0

($0.6)

Property and equipment

$3.1

$4.1

($0.9)

Total assets

$15.1

$24.9

($8.5)

Accounts payable and accruals

$0.9

$1.9

($1.0)

Deferred revenue and liabilities

$8.2

$11.9

($3.5)

Lines of credit

$1.0

$1.7

($1.7)

Lease liability

$0.6

$0.7

$0.0

Fund balance – unrestricted

$4.4

$8.7

($2.3)

Total liabilities and fund balance

$15.1

$24.9

($8.5)

HOTEL MARKET UPDATE “WINTER IS COMING, BUT SPRING LIES AHEAD” Mark Woodworth, Principal R.M. Woodworth & Associates

EXECUTIVE COMMITTEE AND BOARD OF DIRECTORS MEETING

U.S. and Atlanta Lodging Industry Update SEPTEMBER 23, 2020

WINTER IS COMING - JAMIE LANE, CBRE HOTELS

2

U.S. Cases broken down by region

Daily new increase in 7-day moving averages

Northeast

Midwest

West

South

70,000

60,000

Daily Cases

50,000

South: 35% of GDP 38% of Population

Midwest: 19% of GDP 21% of Population

40,000

30,000

West: 26% of GDP 24% of Population

20,000

Northeast: 20% of GDP 17% of Population

10,000

0 3/14 3/21 3/28

4/4

4/11 4/18 4/25

5/2

5/9

5/16 5/23 5/30

6/6

6/13 6/20 6/27

7/4

7/11 7/18 7/25

8/1

8/8

8/15 8/22 8/29

9/5

Source: COVID Tracking Project, US Census, BEA, CBRE Research, Macrobond, 11 Sep 2020.

Note: Regions defined by US Census Bureau

The U.S. just about regaining control

Daily new increase in 7-day moving averages (thousands of cases) Midwest

Northeast

3.0 2.5

Illinois

2.0

12

19% of GDP 21% of Population

6

1.0

4

0.5

2

0.0 4/1

5/1

6/1

7/1

8/1

New York

8

1.5

3/1

9/1

0 3/1

4/1

5/1

6/1

12

10

26% of GDP 24% of Population

8 6

7/1

8/1

9/1

South

West

12

20% of GDP 17% of Population

10

California

Florida

35% of GDP 38% of Population

10 8

Texas

6

4

Georgia

4

Arizona

2

2

0

0 3/1

4/1

5/1

6/1

7/1

8/1

9/1

3/1

4/1

5/1

6/1

7/1

8/1

Source: COVID Tracking Project, US Census, BEA, CBRE Research, Macrobond, 10 Sep 2020.

9/1

Stronger than Expected gains in Employment – Doing well Millions

Trend

Total Employment

155

150

11 - 12 Million Left to Recover 145

22 Million Jobs Lost

140

10.5 Million Jobs Gained 4.1 Million in L&H

135

130

125 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Jul-20 Aug-20

Source: BLS, CBRE Research, August 2020.

Hotels are not benefiting from the employment Recovery Y-o-Y Change in US Employment Total Leisure & Hospitality

Accommodation

Food Services & Drinking Places

Nonfarm, Payroll, Total

Performing Arts & Spectator Sports

Museums, Historical Sites, Zoos, & Parks

0.0% 2/1/2020

3/1/2020

4/1/2020

5/1/2020

6/1/2020

7/1/2020

8/1/2020 -6.8%

-10.0%

-18.7% -20.0% -23.2%

• Accommodation Industry Job gains have stalled since June.

• Experience employment (sports/museums/plays, etc.. all still at April levels)

-26.2% -30.0%

-37.0% -40.0%

-46.2%

• Food & Beverage recovering, but can that be sustained with winter coming?

-50.0% -48.5% -60.0%

Source: BLS, CBRE Research, August 2020.

In normal times, the USA hotel industry employs over 8,300,000 people, but less than 53% of these jobs have returned since April

Source: Hotel EffectivenessÂŽ sample of 3,300 same-store hotels across the USA

A larger share of select service hotels in Georgia mean smaller staff per hotel and faster recoveryYTD

Source: Hotel EffectivenessÂŽ sample of 3,300 same-store hotels across the USA

All roles have seen an increase in wages in every market across the USA Seasoned team members reduce operational risk and are the first hired

Hotels retained the most experienced team members and rehired seasoned workers first.

Source: Hotel EffectivenessÂŽ

Hourly wages in Atlanta are higher than pre-COVID average, but this is skewed by tenure.

2020 pre/post COVID analysis Hotels retained the most experienced team members and re-hired seasoned workers first.

January +7.3%

August

January

August +32.7%

Source: Hotel EffectivenessÂŽ

Housekeeping clean times (minutes per room) have been reduced despite new brand standards Stayover cleans are uncommon, offsetting departure clean MPR increases

26

U.S. Employment Forecasts Current Forecast Scenarios Compared to Last Edition CBRE Q4 2019

CBRE Q1 2020

CBRE Q2 2020

105

100

Q1 2023 Q2 2022 Q4 2020 95

90

85

80

Source: BLS, CBRE Research, August 2020.

Note: Employment Indexed to Pre-recession levels

US Airline Passenger Counts Still Depressed vs Drive-ToTraffic Plane Trips

Drive Trips

20.0%

0.0% 2/29

3/31

4/30

5/31

6/30

7/31

8/31

-20.0%

-40.0%

-60.0%

-80.0%

-100.0%

Source: TSA, Arrivalist, CBRE Hotels Research, 9/11/2020 Note: Plane Trips - TSA Passenger Throughput, Drive Trips – Arrivalist tracked Trips away from home greater than 50 Miles

Significant Gains In All Metrics Since April Y-o-Y Change in RevPAR Luxury & Upper Upscale

0% 2/14/2020

3/14/2020

4/14/2020

Y-o-Y Change Upscale & Upper Midscale

5/14/2020

6/14/2020

Midscale & Economy

7/14/2020

8/14/2020

Occ^

0% 2/14/2020

-20%

-20%

-40%

-40%

-60%

-60%

-80%

-80%

-100%

-100%

3/14/2020

ADR^

4/14/2020

5/14/2020

Revpar^

6/14/2020

7/14/2020

8/14/2020

Source: CBRE Hotels Research, Kalibri Labs, Sept 10th, 2020.

Note: Covers Kalibri Weekly Sample, not scaled to full U.S. Hotel Industry Representation

Rural/Small Town Come back Strong – Break out Large vs. Midsize Cities 2020 Y-o-Y Change in RevPAR

2020 Y-o-Y Change in RevPAR

Resort / Destination

Rural Area / Interstate

Small City / Town

Urban

Suburban

Airport

Large Metropolitan Area - Urban 20.0%

20.0%

0.0%

0.0% 1

-20.0%

-40.0%

-60.0%

-80.0%

Mid-sized City - Urban

2

3

4

5

6

1

7

2

3

4

5

6

7

-20.0%

-40.0%

-60.0%

-80.0%

-100.0% -100.0%

Source: CBRE Hotels Research, Kalibri Labs, August 2020.

JULY 2020 Top 10 Market Performance (out of 65) RevPAR Rank

Market

Y-o-Y RevPAR

Occupancy

1

San Bernardino

-30.5%

62.8%

2

Virginia Beach

-32.8%

59.7%

3

Oklahoma City

-37.4%

47.4%

4

Tucson

-38.7%

41.4%

5

Birmingham

-40.7%

47.8%

6

Savannah

-42.3%

52.1%

7

Jacksonville

-43.2%

52.3%

8

Memphis

-43.7%

52.0%

9

Richmond

-44.9%

45.3%

10 21

Columbia

-45.9%

43.1%

Atlanta

-54.5%

45.3%

Bottom 10 Markets: Hawaii, New York, Boston, San Francisco, Seattle, Washington DC, Chicago, New Orleans, Orlando, San Jose Source: CBRE Hotels Research, Kalibri Labs, August 2020.

CBRE Hotels - Baseline Forecast- U.S. National RevPAR % of 2019

Year

Occ

ΔOcc

ADR

ΔADR

RevPAR

ΔRevPAR

2018

66.4%

-0.4%

$130.20

2.1%

$86.51

1.7%

2019

66.7%

0.4%

$130.76

0.4%

$87.22

0.8%

100.0%

2020

39.8%

-40.3%

$104.10

-20.4%

$41.46

-52.5%

47.5%

2021

52.3%

31.3%

$111.89

7.5%

$58.51

41.1%

67.1%

2022

60.2%

15.0%

$120.52

7.7%

$72.50

23.9%

83.1%

2023

65.5%

8.8%

$128.90

6.9%

$84.37

16.4%

96.7%

2024

66.6%

1.7%

$134.12

4.1%

$89.27

5.8%

102.3%

2025

67.3%

1.1%

$138.44

3.2%

$93.15

4.4%

106.8%

Source: CBRE Hotels Research, Kalibri Labs, 8/13/2020 – https://pip.cbrehotels.com .

CBRE Hotels – REVPAR Forecast by Chain scale RevPAR as a Percent of 2019 Levels 120%

Recovery Zone

100%

80%

60%

40%

20%

0% 2019

2020 ALL

2021 Luxury

2022 Upper Upscale

Upscale

2023

2024

Upper Midscale

Midscale

2025

2026

Economy

Source: CBRE Hotels Research, Kalibri Labs, 8/13/2020, https://pip.cbrehotels.com .

Turning to Atlanta

Georgia rebound Inline with the National Recovery Occupancy

U.S. 2019

Georgia 2019

U.S. 2020

Georgia 2020

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% 1

2

3

4

5

6

7

Month

Source: CBRE Hotels Research, Kalibri Labs, August 2020.

8

9

10

11

12

Percent of Rooms Closed – Atlanta and Savannah Atlanta, GA

Savannah, GA

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Source: CBRE Hotels Research, Kalibri Labs, Hotel Compete, Sept 10th, 2020.

Percent of Rooms Closed – Atlanta 70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Luxury

Upper Upscale

Upscale

Upper Midscale

Midscale

Economy

Source: CBRE Hotels Research, Kalibri Labs, Hotel Compete, Sept 10th , 2020.

Atlanta Hotel Occupancy by Price Tier 2019 Lower

2020 Lower

2019 Mid

2020 Mid

2019 Upper

2020 Upper

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% 1

2

3

4

5

6

7

8

9

10

11

12

Month

Source: CBRE Hotels Research, Kalibri Labs, August 2020.

Atlanta On the Rebound

2020 Monthly Change in Demand/ADR - Upper-Tier Group Channel

2020 Monthly Y-o-Y Change in RevPAR 0% 1

2

3

4

5

6

0.0%

7

1

-10%

2

3

4

5

6

7

-10.0%

-18.2%

-20%

-20.0%

-30%

-30.0%

-40%

-40.0%

-50%

-52.4%

-60%

-27.8%

-50.0% -60.0%

-70% -73.6% -80%

-70.0% -80.0%

-90%

-90.0%

-100%

-92.2%

-100.0%

Lower

Mid

Upper

Demand

ADR

Source: CBRE Hotels Research, Kalibri Labs, August 2020.

Atlanta Occupancy & ADR Forecast – Baseline Scenario

Source: CBRE Hotels Research, Kalibri Labs, August 2020.

The ATLANTA Outlook – A Few different Views RevPAR Index – History & Forecast (2019 = 100)

ADR Outlook by Economic Scenario

140

120

100

80

60

40

20

0 2015

2016

2017

2018 All

2019 Upper

2020

2021 Mid

2022 Lower

2023

2024

2025

Source: CBRE Hotels Research, Kalibri Labs, 8/13/2020, https://pip.cbrehotels.com .

CBRE Hotels - Baseline Forecast- All Atlanta Hotels RevPAR % ΔRevPAR of 2019

Year

Occ

ΔOcc

ADR

ΔADR

RevPAR

2018

69.2%

-1.2%

$115.01

2.3%

$79.59

1.1%

2019

68.5%

-1.0%

$120.28

4.6%

$82.45

3.6%

100.0%

2020

41.3%

-39.7%

$92.11

-23.4%

$38.08

-53.8%

46.2%

2021

51.1%

23.7%

$97.43

5.8%

$49.83

30.8%

60.4%

2022

61.5%

20.3%

$107.35

10.2%

$66.06

32.6%

80.1%

2023

66.8%

8.6%

$115.03

7.2%

$76.85

16.3%

93.2%

2024

70.4%

5.4%

$122.76

6.7%

$86.47

12.5%

104.9%

Source: CBRE Hotels Research, Kalibri Labs, 8/13/2020 – https://pip.cbrehotels.com .

New Supply – Atlanta

Thank you!

mark@rmwoodworth.com

MARKETING REPORT Andrew Wilson EVP/CMO

MARKETING RESULTS YEAR-TO-DATE Impressions: 33 million Engagements: 1.8 million t

Landing page views: 16k Web traffic: -53%

Budget: -40%

PIVOT From

• • •

SXSW activation Cookbook and culinary campaign Festival and event marketing

To

• • •

Photo by Paul Daniel | @pauldaniel5010

Pandemic resources BLM protests Repositioning the Still Atlanta campaign

HIGHLIGHTS

Top performing w ebsite ad Driving traffic to the best Atlanta staycation ideas, receiving 7.5k landing page views

HIGHLIGHTS

Top performing video Repurposed existing premium content from December, which received more than 257k views and 780k impressions

HIGHLIGHTS

Top performing promoted Facebook post UGC video utilizing post copy that encourages audience participation

HIGHLIGHTS

BLM protest response Following a 24-hour pause and solidarity posts, we rolled out an 18-day campaign to spotlight Black leaders that have helped make Atlanta the city it is today.

The most extensive response of any DMO More than 300,000 impressions

HIGHLIGHTS

IGTV compilation of the Music Voyager Taste ATL videos

HIGHLIGHTS

Spotlights on Black-ow ned restaurants

STILL ATLANTA

2020 ATLANTA LEISURE CAMPAIGN Recovery and Rebuild

t

•

$145k investment

•

Objective to drive leisure hotel bookings Q3/Q4

•

Target markets: • 6-hour Southeast drive market (weekend getaway) • Metro Atlanta

•

Includes attraction partner and restaurant open messaging

CAMPAIGN TIMELINE AND EXECUTION

Investment June

Social

Radio

$35k

$30k

Digital (Expedia) $80k

Paid social media affinity messaging to lead conversion messaging

July August

September October

Radio promotional giveaways started when Expedia program launched 3-month Expedia program launched July 1

SOCIAL MEDIA AFFINITY CAMPAIGN (ONGOING) Total impressions:

+9 million

Total engagements:

+600k

Landing page views:

16k

Still Atlanta launch video with 225k views and 460k impressions Expedia Facebook Story ad garnered more than 1.6 million impressions

EXPEDIA CAMPAIGN RESULTS (7/1 – 9/13)

$4.3 M

$50 K

$5.4 M

86.6

NEW MARTECH PLATFORM Design and technology agency selected in 2019 •

Madden Media

Objective: To advance ACVB’s marketing capabilities and deliver destination content to leisure travelers, meeting attendees and meeting planners when, where and how they want it Not just a new website

• •

Building a personalization engine Content syndication

ATLANTA.NET

ATLANTAMEETINGS.COM

ATLANTA.NET

DISCOVERATLANTA.COM

ATLANTAMEETINGS.COM

DISCOVERATLANTA.COM

DISCOVERATLANTA.COM

NEXT STEPS SEPTEMBER • Roll out DiscoverAtlanta.com • Atlanta.net and AtlantaMeetings.com remain live with redirects • Request image and content updates from members and stakeholders

• Staff and partner feedback, refinements

OCTOBER • Focus on enhanced culinary content to leverage four Voyager TV episodes and Fearless Innovation cookbook • Redesign and align AtlantaNow and Planner’s Guide • AtlantaNow ➔ Discover Atlanta Now • Meeting and Event Planner ➔ Discover Atlanta Meetings and Events

• PR, media rollout

PRESIDENT’S REPORT William Pate President and CEO

OLD BUSINESS

2020 ELECTION OF EXECUTIVE COMMITTEE MEMBER t

Derrick Morrow Hyatt Regency Atlanta 2022

NEW BUSINESS

ADJOURN

DiscoverAtlanta.com