Alberta Hotel & Lodging Association industry leaderAmr Awad, CHA Holloway Lodging George Marine Radisson Hotel & Suites, Fort McMurray Peter Parmar, Chair, Effective Solutions to HR

our vision is to be an

industry leader

and the

trusted advisor for hotels & lodging in Alberta, helping to buildCanada’s tourism and hospitality industry

ANNUAL REPORT

Alberta Hotel & Lodging Association

2014

Our Mission

Through our programs, services,

and advocacy efforts, we strive to

enhance the economic prosperity

and social fabric of our industry.

We achieve our mission by living

by our 5 Key Values:

is to support our members and strengthen Alberta’s tourism and hospitality industry

Table Of Contents

2014-2015 Board of Directors .......................................................................................................................................... 2

2014 Year at a Glance ...................................................................................................................................................... 2

Report of the Board Chair and President & CEO ................................................................................................................ 4

Strategic Objectives Objective #1 – Trusted Advisor & Industry Leader ..................................................................................................... 8 Objective #2 – Fully Engaged Membership .............................................................................................................. 14 Objective #3 – Targeted & Relevant Programs & Services for Members ................................................................... 18 Objective #4 – Effective Solutions to the Human Resource Challenge ...................................................................... 24 Objective #5 – Sound Management & Strong Financial Stewardship ........................................................................ 30

2014 Financial Statements .............................................................................................................................................. 342014 Auditor’s Report...................................................................................................................................................... 35

2014-15 BOARD OF DIRECTORS

Executive Steven Watters, ChairSawridge Inn & Conference Centre, Fort McMurray

Perry Batke, First Vice ChairChair, Sound Management & Strong Financial PositionBest Western Denham Inn & Suites, Leduc

Leanne Shaw-Brotherston, Vice ChairCountry Inn & Suites by Carlson, Calgary

Tina Tobin, Vice ChairChair, Targeted & Meaningful Member ProgramsChateau Nova Yellowhead, Edmonton

Perry Wilford, Past ChairChair, GovernanceGlenmore Inn & Convention Cenre, Calgary

Dave Kaiser, CHA, President & CEO

Directors North Amr Awad, CHAHolloway Lodging

George MarineRadisson Hotel & Suites, Fort McMurray

Peter Parmar, Chair, Effective Solutions to HR ChallengesNova Hotels & Resorts

Directors Central Shazma CharaniaHoliday Inn & Suites, Red Deer

Robin Cumine, Chair, Trusted Advisor, Industry LeaderRadisson Hotel Edmonton South

Karen Naylor Super 8 Edmonton South/Ramada Sherwood Park

Directors South Chris Barr, Chair, Fully Engaged MembershipBanff Aspen Lodge

Cory HaggarFalcon Crest Lodge, Canmore

Dwayne StrattonHoliday Inn Lethbridge

2014 AHLA ANNUAL REPORT

2014 YEAR AT A GLANCE u 3

Report of the Board Chair and President & CEO

2,300 new rooms in the province, the largest

increase in the past five years.

We are pleased to report that the Alberta Hotel

& Lodging Association kept pace with our

industry’s growth, achieving a membership

penetration rate of 94.7% of the total guest

rooms in Alberta. We take this measure very

seriously as it is a positive indicator that we are

relevant to the industry and its legitimate voice.


In 2014, Alberta’s hotel and lodging industry

once again outperformed all other provinces

in Canada. Based on data compiled by

PKF Consulting, Revenue Per Available

Room (RevPAR) improved by 3% to $96.92.

Perhaps a sign that tourism is indeed a

growing sector of Alberta’s economy, RevPAR

growth in the resort areas increased an

impressive 11.6% to $129.02. These results

were achieved despite the addition of

Report of the Board Chair and President & CEO u 5

AHLA DIRECTORS ATTENDANCE 2014 – 2015

2014 – Preparing for a Milestone

To begin the year, the AHLA’s Board of Directors looked to the horizon and noted the approach of our association’s 100th anniversary just five years away. To prepare for this milestone and to ensure our continued success, the Board developed a new strategic plan during a three-day retreat in Olds. InterVISTAS Consulting facilitated a very thoughtful and robust planning process. Our board and staff have been invigorated by the final results, and we are proud to bring these results to you throughout the pages of our 2014 annual report.

Our bold new vision, “to be an industry leader and the trusted advisor for hotels and lodging in Alberta, helping to build Canada’s tourism and hospitality industry,” speaks to our ongoing commitment to support our members and also to the leadership the AHLA is taking on important issues that are national in scope.

The work we are doing on the workforce challenges that afflict our industry exemplifies this leadership. The major reforms announced for the federal Temporary Worker Program in 2014 were a serious blow, exacerbating an already serious problem. Our disciplined approach to building and maintaining positive and effective relationships with government, even when we strongly oppose their positions, gave us the opportunity to voice our members’

concerns and work on solutions that meet the need of both government and industry. The AHLA was invited to meet with the Alberta Caucus of MPs in September, and received subsequent invitations to meet with key federal ministers, providing us with a window of opportunity to advance our work on a national hotel and lodging worker program.

Our investment in labour market research, the development and growth of our Employer of Choice program, and our ramped up delivery of front-line occupational training this past year demonstrates our commitment – and our industry’s – to solving the workforce challenge, without waiting for government to deliver a solution for us. Investing in the development of www.TourismWorks.ca, launched in 2015, demonstrates that our members are doing their due diligence to attract and recruit Canadians, including under-represented groups, to work in their hotels.

Another example of our new vision at work is the Check In Canada national accommodation directory. Transitioning the AHLA’s legacy Approved Accommodation Program to the digital age and expanding it across the country is an ambitious undertaking. We were pleased with the results of the Alberta Pilot for Check In Canada in 2014, and appreciate the tremendous backing of our members. We also appreciate the strong support of Travel Alberta and Alberta Culture and Tourism’s Tourism Division to further market and develop the program.

Meeting Chair

Board Meetings Watters 5/5 5/5 5/5 5/5 5/5 5/5 4/5 3/5 3/3 4/5 4/4 5/5 5/5 4/5

New Board Orientation 1 1 1 1 1 1 1

Committee Chair Orientation 1 1 1 1 1

Board Retreat Watters 2 2 2 2 2 2 2 2 2 2 2 2 2

Governance Committee Wilford

Sound Management, Strong Financial Stewardship Committee Batke 5/5 5/5 1/1 4/5 4/5 4/5 5/5 3/3

Trusted Advisor, Industry Leader Committee Cumine 5/5 5/5 5/5 2/2 4/5 4/5 3/5 2/5

Fully Engaged Membership Committee Barr 3/3 3/3 3/3 2/3 2/3 3/3 1/2

Targeted & Relevant Programs & Services for Members Committee Tobin 1/1 1/1 1/1 1/1 0/1 1/1

Check In Canada Strategy 3/3 1/1 2/2 1/1 1/1 0/1 0/1 1/1 1/1 0/1 1/1 1/1 0/1 1/1

Human Resource Challenges Committee Parmar 1/1 1/1 1/1 1/1 1/1 1/1


StevenWatters

PerryBatke

Tina Tobin

Leanne Perry WilfordShaw-Brotherston

Our confidence in the AHLA’s ability to achieve our new vision and our strategic objectives is bolstered by our team working out of the AHLA office. In 2014, a new organizational structure was implemented that will better leverage the skills and experience of our team members across all of the association’s activities and initiatives. We are very pleased with their outstanding performance and thank them for their efforts.

Our board continues to provide the sound governance and bold leadership required for our success. Their passion to pursue our new vision and truly embrace our mission and values is exemplary. It has been a pleasure and honour to serve with them. Finally, we express our sincere appreciation to each of our members for their loyalty and support in 2014.

We look forward to serving you!

Towards the end of the year, we engaged Bruce Okabe, Travel Alberta’s outgoing CEO, to help us plot the future of Check In Canada. Bruce’s knowledge and understanding of the tourism industry, as well as his strong reputation in Canada’s tourism marketing community, has been invaluable in helping the board to develop a solid long-term strategy for the program.

There’s a lot at stake. If we can truly harness the aggregate marketing power of Canada’s destination marketing organizations, which collectively spend over $500 million a year, we should be able to recover some of the revenue our industry loses to Online Travel Agencies (OTAs). This amount is estimated at over $250 million annually in Canada, and it continues to grow. Even more important, Check In Canada helps hotels to take back their guests and keeps the relationship with the customer between the hotel and the customer, eliminating the unnecessary cost and complexity of dealing with OTAs.

Alberta’s fast-changing political environment and the sparks of municipal taxation threatening to become full-blown fires in 2015 - were very much on the AHLA’s radar as we closed out 2014. Executing well on our first strategic objective, “To be a trusted advisor and industry leader,” will certainly be important to effectively defend and grow our industry going forward.

Steven Watters AHLA Board Chair

Meeting Chair

Board Meetings Watters 5/5 5/5 5/5 5/5 5/5 5/5 4/5 3/5 3/3 4/5 4/4 5/5 5/5 4/5

New Board Orientation 1 1 1 1 1 1 1

Committee Chair Orientation 1 1 1 1 1

Board Retreat Watters 2 2 2 2 2 2 2 2 2 2 2 2 2

Governance Committee Wilford

Sound Management, Strong Financial Stewardship Committee Batke 5/5 5/5 1/1 4/5 4/5 4/5 5/5 3/3

Trusted Advisor, Industry Leader Committee Cumine 5/5 5/5 5/5 2/2 4/5 4/5 3/5 2/5

Fully Engaged Membership Committee Barr 3/3 3/3 3/3 2/3 2/3 3/3 1/2

Targeted & Relevant Programs & Services for Members Committee Tobin 1/1 1/1 1/1 1/1 0/1 1/1

Check In Canada Strategy 3/3 1/1 2/2 1/1 1/1 0/1 0/1 1/1 1/1 0/1 1/1 1/1 0/1 1/1

Human Resource Challenges Committee Parmar 1/1 1/1 1/1 1/1 1/1 1/1

Dave Kaiser, CHAAHLA President & CEO

Amir Awad

GeorgeMarine

PeterParmar

Shazma Charania

Robin Cumine

Karen Naylor

Chris Barr

Cory Haggar

Dwayne Stratton

Report of the Board Chair and President & CEO u 7

STRATEGIC OBJECTIVE 1 To be a Trusted Advisor and Industry Leader

To be successful over the long-term,

our members must believe the AHLA

is relevant and trustworthy. Only then

can we legitimately be considered an

industry leader by both internal and

external stakeholders. When members

view the AHLA as a credible authority

that has their best interests at heart,

we can effectively advocate for them

on issues that impact Alberta’s

tourism & hospitality industry in the

short- and long-term.


STRATEGIC OBJECTIVE 1 u 9

2014 PROGRESS

Members View the AHLA as a ResourceKeeping Members InformedA vast amount of information is available to AHLA members through their membership. We strive to ensure the information we provide is accurate, current, and easy to access. To this end, we:

u Increased our communications capacity by reorganizing and hiring Lara Courtepatte in the new role of Communication Specialist.u Increased our use of social media to: • Connect with our members, and connect our members to one another, • Share information from a variety of sources about issues, challenges, and opportunities that affect members.u Increased the frequency of the Innsider, and expanded its distribution to managers and supervisors. u Streamlined and updated www.ahla.ca, increasing the number of articles available without a member log in.

The Voice of Industry Serving as the voice of industry is a responsibility that requires the AHLA to balance the needs of a membership that is diverse in property size, type, market segmentation, ownership, and geography. It requires our Board of Directors to consider the short, medium, and long-term implications of their decisions and agree upon a strategy that maximizes the benefits to business owners, employees and Albertans. We do this by:

1. Striving to understand members’ interests and concerns by talking with them and through our annual member survey.2. Building relationships with government representatives & stakeholders.3. Providing input to policy makers and influencers, and helping our members connect with their elected representatives on issues of critical importance.

Building Relationships Alberta’s long stable political landscape witnessed tremendous upheaval in 2014, creating one of the busiest years in memory for the AHLA in the areas of government relations and advocacy.

u The resignation of the Premier in March resulted in a summer leadership race, during which members of the AHLA’s Board of Directors met with candidates Thomas Lukaszuk and Jim Prentice. The Board impressed upon both candidates:

• The impacts of the workforce challenges facing our members, and the need for a permanent solution to Alberta’s labour shortages. • The importance of the Tourism Levy as a sustainable means of funding tourism marketing and product development. • The AHLA’s strong support for Travel Alberta and the work it is doing.u Premier Prentice’s September cabinet shuffle resulted in new ministers in key portfolios, with the department of Tourism, Parks and Recreation changing to Culture and Tourism and seeing its fifth minister in four years.

Representing the Interests of Members to Government & Other StakeholdersIn addition to monitoring and advocating on liquor and gaming, tourism, and labour, the AHLA:

u Provided input to Alberta Finance Tax and Revenue Administration to clarify how the Tourism Levy should be applied on complimentary rooms and other items.u Responded to an inquiry from the Solicitor General regarding the Innkeepers Act, advising that the AHLA supports a review and update of this act.u Supported members in Fox Creek in opposing a municipal bylaw that would increase their business licence fees astronomically.

Labour & Immigration


“Hotels and motels need

a labour solution that

addresses regional disparities

and reflects Alberta’s labour

market realities. Without a

long term solution, visitors

to Alberta will experience

reduced service, limited hours

of operation and even closures

for some properties.”

– Dave Kaiser, AHLA President & CEO


The AHLA maintains that Alberta’s accommodation industry is facing a structural labour gap that can only be closed if there are more people, from Canada or abroad, willing and able to work in our hotels and motels. The federal government’s 2014 decision to implement a moratorium and overhaul the Temporary Foreign Worker Program (TFWP) severely reduced access to much-needed foreign workers and increased costs for employers.

The provincial government recognized the devastating impacts this change would have on Alberta’s economy and made significant efforts to address the issue with their federal counterparts. Although Conservative Members of Parliament (MPs) from Alberta recognized the impacts the overhaul would have on their communities, the federal government was unmoved. The Hotel Association of Canada and the AHLA continued to work outside of the media spotlight to inform federal MPs and bureaucrats about the unintended consequences of these changes, and to propose the development of a Hotel & Lodging Worker Program. The AHLA attended numerous meetings with federal MPs including Hon. Jason Kenney, Hon. Rona Ambrose, and Blaine Calkins, Chair of the federal Alberta caucus. Our messages were:

u The 10% cap on the number of TFWs as a proportion of the workforce at each property to be phased in by July 1, 2016 will severely impact hotels, particularly those in smaller or remote communities. u The new one-year permit for the TFWP does not allow enough processing time for an Alberta Immigrant Nominee Program (AINP) application. Over the past several years, many TFWs have become Permanent Residents through the AINP. Many of those remain with the employers who originally hired them as TFWs, effectively creating a permanent foreign worker solution for our industry. The AINP is the only program available for the immigration of low-skilled workers in Alberta.u A transitional strategy or policy is needed to avoid inadvertently creating an underground economy.u The government should consider creating a Hotel and Lodging Worker Program, a Hotel Association of Canada initiative that was started well before reforms to the TFWP were initiated.

We were pleased that the federal government responded in early 2015 by providing for work permit extensions for TFWs nominated for the AINP whose temporary status would end prior to finalization of their permanent residency applications. The AHLA is working closely with the Hotel Association of Canada to advance the idea of a permanent foreign worker solution for the hotel & lodging industry.

In light of the changes to the TFWP, the AINP made genuine efforts to accommodate the needs of hotels and motels, identifying Housekeeping Room Attendant and Front Desk Agent as occupations under pressure. As a result, AINP applications for these positions were prioritized for the remainder of 2014. With over 10,000 AINP applications waiting to be processed, this was good news for our industry.

The AHLA also provided input on regulatory proposals to enhance the TFWP compliance framework. In addition to reiterating our key messages, we asked that:u Ottawa permit Alberta to develop its own immigration program, as has been done in Québec. u A comprehensive awareness and education campaign be undertaken about the obligations and rights of employees and employers before changes to enforcement. u Penalties be made proportionate to the violation. An appeal process should be established to ensure that employers who make genuine efforts to abide by the rules are not unreasonably penalized for errors made in good faith.

Liquor & GamingThe sale of liquor through hotels in Alberta is part of the very foundation of the AHLA. The AHLA and our members have worked hard to demonstrate that we are willing and trustworthy partners in Alberta’s gaming and liquor business. The Alberta Gaming & Liquor Commission (AGLC) has stated that it intends to build positive and effective relationships with industry and other stakeholders, and has committed to improve its communication with industry.

Today, 37.3% of our members hold liquor licences and 22.9% of our members operate VLTs, just under 30% of the VLT network. Liquor and gaming remain important to our members’ livelihoods. For this reason, the Board of Directors has appointed a Liquor & Gaming Committee from our membership to monitor these issues closely. In 2014, the AHLA:

u Raised our members’ concerns about the change in AGLC’s approach to working with industry. Recent feedback suggests AGLC is taking a more authoritarian approach to enforcement. We acknowledge and support AGLC’s role in enforcing the Liquor and Gaming Act and Regulation, and agree with its contention that enforcement must be accompanied by education.


u Responded to our members’ concerns about AGLC’s new due diligence requirements for Gaming Entertainment Centres. The AHLA and its members consider the extensive personal information requested of owners, managers, key employees and even their spouses onerous and unreasonable, particularly for licensees who have operated VGERs without incident for many years. We continue to hear frustration from VLT retailers who have been in the network since it went live in 1991.u Participated in the Responsible Gambling Advisory Committee (RGAC) co-chaired by AGLC and Alberta Health Services. RGAC’s members represent primary healthcare providers, gaming operators, gambling researchers, and other gambling stakeholder groups. Past Director Thomas Barknowitz attended this meeting on behalf of the AHLA. We will continue to attend these meetings to ensure industry is well represented at these meetings.u Attended meetings of the Provincial Impaired Driving Committee to monitor and provide input on impaired driving prevention and enforcement initiatives. u Attended an AGLC focus group to discuss product promotions as they relate to agencies and licensed premises, including tasting and sampling policies, inducements, and Buy/Sell agreements.u Attended AGLC’s Stakeholder Advisory Committee meeting and CEO Roundtables to discuss liquor and gaming issues as well as opportunities for innovation and growth. These

sessions provide insight into AGLC’s strategic directions and encourage productive dialogue on issues.

TourismAlberta’s Tourism Levy is expected to generate $92 million in 2014 – 2015. Our model of funding tourism marketing and tourism product development is unique in Canada, and is part of our province’s competitive advantage. Ensuring MLAs and bureaucrats understand the purpose of the Tourism Levy and the allocation of these funds is critical to the sustainability of the Levy and the continued prosperity of the industry. As collectors of the Tourism Levy, hotels and motels expect a high level of accountability from both Travel Alberta and Alberta Culture and Tourism.

Ensuring the Accountability of Tourism Levy Dollars Alberta Strategic Tourism Council The Alberta Strategic Tourism Council (ASTC) is the Minister of Culture and Tourism’s key advisory group, responsible for providing strategic tourism advice to the Minister and Travel Alberta. Guided by Alberta’s Tourism Framework, ASTC works in partnership with Travel Alberta, Alberta Culture and Tourism, and industry to support tourism marketing and product development. Three of the council’s 17 members are also AHLA members. The AHLA attended the council’s first meeting in 2014.

26% Very Effective

58% Effective

8% Neither Effective nor Ineffective

3% Not Effective

5% No Opinion

Overall, how would you

rate the effectiveness

of the AHLA’s advocacy

efforts?

58%

26%

8%

3%

5%

2013 Result 2014 Target 2014 Result*

Member Satisfaction with AHLA Government Relations Initiatives

Travel Alberta 3.22 3.0 4.26

Ensuring sustainable funding for tourism 2.90 3.0 4.02

Influencing tourism policy 3.02 3.0 4.03

Destination Marketing Fees 2.99 3.0 3.97

Tourism Levy administration 2.94 3.0 3.98

VLT policy 2.91 3.0 4.03

Minimum wage policy 2.91 3.0 4.00

Liquor policy 2.89 3.0 3.94

Taxation 2.82 3.0 3.88

Foreign Worker Policy (TFW, AINP) 2.74 3.0 3.71

Music tariffs 2.40 3.0 3.37

Stakeholders view AHLA as a valued partner:

Tourism 3.75 3.0 4.66

Gaming & Liquor N/A 3.0 4.66

Labour & Immigration N/A 3.0 4.50

Tourism MarketingTravel Alberta The March 2014 provincial budget increased Travel Alberta’s allocation of the Tourism Levy to $56.3 million for 2014 – 15. This amount is relatively consistent to the 70/30 split of the levy that was allocated to Travel Alberta in the previous year.

Travel Alberta is recognized as one of Canada’s leading provincial marketing organizations, with a mission to grow tourism revenues with compelling invitations to visit Alberta. The AHLA enjoys an open and highly collaborative relationship with Travel Alberta. In 2014, the AHLA represented our members’ interests by:

u Participating in Travel Alberta’s strategic planning process. u Providing input to Travel Alberta’s Board of Directors on the selection of its new CEO.u Working with Travel Alberta on the Alberta pilot of Check In Canada.

Travel Alberta continues to play an important role in the Housekeeping Awards by recognizing hotels for achieving the highest standards of cleanliness, maintenance, and state of repair. These awards are presented annually at the AHLA’s convention.

Tourism Product DevelopmentAlberta Culture and TourismAfter a wave of departures amongst senior officials in the department, the AHLA cultivated relationships with new staff at Alberta Culture and Tourism. In addition to informing them about current issues and trends, the AHLA supplied important context and history about the Approved Accommodation Program, the origins of the Tourism Levy, and the open and effective relationship we have had with the department. Alberta Culture and Tourism:

u Engaged PKF Consulting to conduct the Alberta Accommodation Outlook, the results of which were shared at our 2014 convention. This information was also published in the Summer 2014 issue of Alberta Hospitality.u Provided financial support to create a new brand and visual identity for the Housekeeping Awards, as well as collateral resources to help hotels educate guests and staff alike and promote their achievement.u Supported www.CheckInCanada.com and www.AlbertaCampgroundGuide.ca through Alberta’s Visitor Information Centres and the Alberta Visitor Information Provider network.

The AHLA will continue to advocate for accountability for every dollar generated by the Tourism Levy.

Performance Measures


*The rating scale was changed in 2014 from a four to a five point system where 1= Very dissatisfied and 5=Very Satisfied.

Our goal is for every member to feel that the AHLA is their association. The more actively members participate in our programs,

services, and events, the better value they receive. Each and every member matters, and is at the centre of what we do.

STRATEGIC OBJECTIVE 2 Fully Engaged Membership




2014 PROGRESS Attracting, Reaching & Retaining MembersThe AHLA has a continuous process for targeting and enrolling new members – a process that has been highly effective in driving membership and helping new members get maximum value. Ensuring that we remain relevant to our members is critical to our success. To do so, we must deliver on all of the reasons hotels and motels choose to be part of the AHLA:u Programs & services to help manage costs;u Advocacy and government relations;u Access to human resource tools and consulting;u Networking opportunities; andu Information about what is going on in the industry.

The AHLA’s 96.8% retention rate reflects our members’ recognition that we are stronger when we work together. We are committed to delivering value to our members through our programs, services, and advocacy efforts.

A Trusted & Reliable Source of InformationOur members expect the AHLA to be alert to issues that may affect their businesses, and ensure they get the information they need in a timely and efficient manner. A vast amount of information is available to members through our Innsight newsletter, Alberta Hospitality magazine, and on www.ahla.ca. In 2014, we increased the frequency of our Innsider email and expanded the distribution beyond owners and general managers to include senior staff and supervisors. The Innsider average open rate of 35.3% far exceeds the industry average of 22.8%, suggesting that we are supplying content our members want. After hiring Social Media Specialist Jordan McKay, the AHLA initiated a social media strategy that resulted in greater engagement of our members, culminating in the announcement of Housekeeping Award recipients over Twitter and Facebook in December.

Understanding our members’ concerns and interests helps us focus the information we provide. Our annual member survey provides our board and staff with valuable insights on what matters to our members. In 2014, our members identified the following as their biggest challenges:

Economic conditions

u Staff recruitment & retention

u Online Travel Agency (OTA) fees & commissions

u Improving occupancy/average daily rate

u Managing operating costs

In addition to helping us develop programs that meet our members’ needs, the information we gather through the survey guides our board’s advocacy efforts.

The Personal Connection Although we live and work in a digital age, nothing is more effective at helping us to understand our members than hearing about their experiences. This appreciation helps us ensure that the work we are doing truly meets our members’ needs, and motivates both our board and staff to serve them.

Annual Convention & Trade ShowThe AHLA’s 94th Annual Convention & Trade Show was held April 24-26 at The Banff Centre, with 25.1% of our members represented. In addition to the celebrations associated with the Housekeeping, Gold Key, and Employer of Choice Awards, the event was also the official launch of the Alberta pilot of Check In Canada. The convention also coincided with the federal government’s decision to place a moratorium on the foodservices sector’s access to the Temporary Foreign Worker Program. The long- and short-term impacts of this decision were at the centre of many discussions throughout the event. We celebrated the industry’s best at the Housekeeping Awards Gala, Gold Key Awards, and Employer of Choice Award presentations.

Regional MeetingsAHLA board members and staff visited 12 communities across Alberta to connect with members and discuss the issues, challenges, and opportunities before us. We received strong support from members for a federal hotel & lodging worker program, www.TourismWorks.ca, the AHLA’s online job bank, and www.CheckInCanada.com.

Business Development ManagerIn November 2014, Matt Rowlette was hired as Business Development Manager. In this new role, Matt will help members connect with the AHLA’s programs and services. With over 49 years of experience in the hospitality industry, Matt is highly regarded and understands the day-to-day realities of operating a hotel.


2013 Result 2014 Target 2014 Result*

Members 884 878 888

Member Retention 95.6% 95.0% 96.8%

Industry penetration of guest rooms 95.3% 95.0% 94.7%

Member participation in board elections 16.6% N/A N/A

Member survey participation 15.8% 20% 8.9%

Member properties represented at convention 24.2% 20% 25.1%

Member satisfaction with convention 3.29/4.0 3.0/4.0 3.32/4.0

Member satisfaction with publications 2.95/4.0 3.0/4.0 *4.12/5.0

Innsider distribution 926 N/A 1,080

Average Innsider open rate N/A N/A 35.3%

Unique visits to www.ahla.ca 52,833 38,000 66,514


*The rating scale was changed in 2014 from a four to a five point system where 1= Very dissatisfied and 5=Very Satisfied.

STRATEGIC OBJECTIVE 3 To Provide targeted & Relevant Programs & Services for Members

Like other suppliers to our industry, the

AHLA sells products and services that

deliver value at a competitive price. Unlike

other suppliers, the AHLA’s chief concern

is not for our own profitability, but that of

our members. When members purchase

supplies and services through the AHLA,

they receive outstanding value and invest

in an organization whose whole purpose is

to serve them.



2014 PROGRESS

The Evolution of a LegacyThe AHLA’s Approved Accommodation and Approved Campground Programs have been in existence since the 1980s. The information gathered through these programs was the source of listings in the Official Guides and was the basis for the Housekeeping Awards. We continue to evolve these programs through www.CheckInCanada.com and www.AlbertaCampgroundGuide.ca. In recognition of our need to manage the AHLA’s digital assets, Obinna Merenu was hired as Web Programmer/Developer.

Printed Guidesu The AHLA printed the Official 2014 Accommodation and Campground Guides based on continued demand for these publications from Travel Alberta’s Call Centre and Alberta’s Visitor Information Centre network. u The design, advertising sales, and publishing of the Official 2015 Guides was outsourced to the LPi Group. This significantly reduced the cost of producing the guides while preserving our position as the official source of accommodation and campground information in Alberta, and allowed us to focus on data management.

www.AlbertaCampgroundGuide.cau The AHLA continues to leverage its database platforms for both fixed roof accommodation and campground data.u The AHLA introduced the Alberta Campground Guide app for iPhone prior to the May long weekend. The printed guide, app, and website were featured in a story in the Travel section of the Calgary Herald.

Check In CanadaThe AHLA estimates that Online Travel Agencies (OTAs) take over $250,000,000 from Canada each year. OTAs are big, and they’re only getting bigger while siphoning profits from the hotel industry. They dominate the travel industry, inserting themselves between consumers and hotels. In response to our members’ concern about the impact OTAs have on their relationship with their customers and their profitability, the AHLA launched Check In Canada.

u The Alberta pilot of the Check In Canada national accommodation directory was launched in April 2014. All properties listed in the Official 2014 Accommodation Guide were automatically listed on www.CheckInCanada.com. Properties without an online reservation system were able

to take advantage of a free system provided by JackRabbit, which provides the direct booking technology.u Check In Canada integrates Green Key, Star Quality, and Housekeeping Award information as well as consumer reviews through the TrustScore. u The AHLA worked closely with Travel Alberta and the Visitor Information Centre network to help them understand the real cost of OTAs to hotels, the Tourism Levy, and government revenue. Travel Alberta and Alberta Culture and Tourism have been strong supporters of the program.u In November 2014, the AHLA engaged former Travel Alberta CEO Bruce Okabe to assess the Check In Canada platform relative to our goal of making it the preferred accommodation data solution for tourism marketing organizations across Canada, and to assist with developing strategic partnerships and business planning.u With the support of the Hotel Association of Canada, provincial hotel associations from British Columbia, Saskatchewan, Manitoba, and Ontario have expressed interest in participating in Check In Canada. As of December 31, www.CheckInCanada.com listed 2088 hotels and motels from six provinces.

Performance Measures 2013 2014

Star Quality Participation 197 201

Star Quality Membership Penetration 21.9% 22.6%

Alberta properties listed on CheckInCanada.com N/A 599

CheckInCanada.com Unique Visitors N/A 14,265

CheckInCanada.com Total Visits N/A 19,040

Accommodation Guide Distribution 120,000 90,000

Campgrounds on AlbertaCampgroundGuide.ca 560 536

Campground Guide Distribution 185,000 150,000

AlbertaCampgroundGuide.ca Unique Visitors 141,530 141,530

AlbertaCampgroundGuide.ca Total Visits 251,657 251,657

Campground Guide app downloads (iOs only) N/A 9,040


$150,294 18 members generated

in revenue to fund on-site and community initiatives to conserve energy and lower emissions

thanks to members and their guests, over

3.5 million hotel night stays have been offset to date, removing a total of over

103,075 tonnes of carbon emissions from our global atmosphere, or the equivalent of 329,300 million km of vehicle travel


Housekeeping AwardsThe Housekeeping Award is unique to Alberta’s lodging industry and is the only award of its kind in Canada. Highly coveted by hotels and their heart of house staff, the award raises the standard of housekeeping practice in properties of all sizes in communities around Alberta. Created in 1983, the Housekeeping Awards needed to be refreshed to keep pace with the expectations of today’s traveller. To this end, the AHLA:

u Updated the Housekeeping Award selection process to include: • Consideration of online reviews; • Analysis of TrustScore data related only to cleanliness, maintenance, and state of repair; and • Unannounced inspections of selected properties. u Created a new visual identity for the Housekeeping Awards with the support of Alberta Tourism, Parks and Recreation. The Housekeeping Award logo and a variety of resources are available to recipients at www.HousekeepingAward.ca. u Announced the names of Housekeeping Award recipients via Twitter in December.

Delivering Competitive Programs and ServicesWhile regular retailers work for their stakeholders, the AHLA works for our members. By aggregating the purchasing power of our members, every property benefits by getting competitive pricing, receiving added value, and reinvesting in an organization that serves them. Programs are reviewed on a regular basis to ensure they are competitive, relevant, and valuable to our members. In 2014, our partnership with Johnson Inc was discontinued.

Carbon OffsetsEcoStay™ helps members generate revenue for energy efficiency projects at their property, while helping them become carbon neutral. Carbon offsets purchased under the EcoStay™ program come from projects in Alberta that are registered on the CSA Group’s GHG CleanProjects Registry.

u 18 members generated $150,294 in revenue to fund on-site and community initiatives to conserve energy and lower emissions. u Over 3.5 million hotel night stays have been offset to date, removing a total of over 103,075 tonnes of carbon emissions from our global atmosphere, or the equivalent of 329,300 million km of vehicle travel.

Electrical EnergyThe ENMAX Energy Corporation / AHLA Power Program provides members with the opportunity to lock in their rates* for electricity at wholesale prices. 80% of participating members extended their contracts & locked in their electricity rates* for 2016 and 2017. A total of 40,168 guest rooms in Alberta are now powered by ENMAX and the AHLA.

* Some conditions, admin, other fees and taxes beyond the electricity rate also apply.

Natural GasOver the past three years, AHLA members have bought their natural gas through Gas Alberta Energy at an average price of C$3.27/GJ compared to the C$3.31/GJ Alberta spot price over the same period. In 2014, the AHLA and Gas Alberta Energy made changes to our Natural Gas Aggregation Program to offer members three options designed to meet varying risk tolerances.

Property Tax AssessmentAltus Group assesses and appeals property taxes for the hotel industry in Canada. In 2014, Altus Group represented 10 members in the appeals process in Edmonton and surrounding area, saving them $31,570 on their property taxes.

Property & Liability InsuranceWFG retained many policies that shopped the competition this year, as we were able to provide them with comparative analyses that showed the AHLA’s policy being much superior. Many competitors offered our members reduced premiums, however this was usually a result of lower levels of coverage or deductible increases. The program policy was significantly enhanced with the following three new coverages:

u Cyber Liability u Legal Expenseu Critical Illness Business Extension


2013 Penetration 2014 Target 2014 Penetration

EcoStay Carbon Offsets 2% 3% 2%

Electrical Energy 54% 54% 55%

Mat Services 4% 4% 4%

Natural Gas 19% 24% 21%

Office Supplies 9% 11% 9%

Property Tax Assessment 0% 0% 1%

Self-Insurance – Lodging Division 33% 34% 30%

Self-Insurance – Beverage Division 5% 6% 5%

TrustYou Online Reputation Management System N/A 14% 0%

2013 Result 2014 Target 2014 Result

Average Programs per member 1.24 1.36 1.27

% of members participating in one or more programs 73.8% 74.9% 73.5%



STRATEGIC OBJECTIVE 4 To Work on Effective Solutions to the Human Resource Challenge

The robust economy Alberta enjoyed in

early 2014 meant continued demand for

employees in the 24x7 hotel industry. The

federal government’s decision in June to

restrict access to foreign workers rocked

employers in Alberta’s hospitality industry.

As the AHLA worked to inform the

government about the impacts of this

decision and the need for a permanent

solution to Alberta’s structural labour gap,

the AHLA continued to support our members

through our human resource programs.



2014 PROGRESS

In July, Celia Koehler joined the AHLA team as Manager of Human Resources. Celia’s prior experience as HR Manager for a group of AHLA member hotels was invaluable in helping members navigate the overhauled Temporary Foreign Worker Program (TFWP), and use the Alberta Immigrant Nominee Program (AINP) to help foreign workers become Permanent Residents. In November, Zainub Siddiqui was hired for the new role of HR Generalist to provide additional resources and capacity to serve our members.

The AHLA has participated in Alberta Jobs, Skills, Training and Labour’s Workforce Strategy for Alberta’s Tourism and Hospitality Industry since the initiative began in 2006. We continue to align our activities with the provincial government’s strategy. The AHLA’s advocacy efforts related to labour and immigration are reported under our first strategic objective.

Ensuring an Adequate Workforce for the Hotel & Lodging Industry in AlbertaIn light of the changes to the TFWP, the AHLA expects a significant increase in job openings over the next few years as foreign workers return home. Government expects employers to make every effort to hire Canadians first. The AHLA is working to help our members do this by reaching out to groups that serve individuals who are underrepresented in Alberta’s workforce such as aboriginal employees, individuals with disabilities, and newcomers to Canada.

Flagship Hospitality Program with Olds CollegeThe AHLA has been challenged to develop a long-term industry strategy that adequately addresses the existing structural labour gap and helps to build our industry’s future workforce. In 2014, we explored a strategic partnership with Olds College to create a Flagship Hospitality Program that involves three key areas:

u Educating frontline staff, a key concern for employers.u Engaging dual-credit students around Alberta to increase awareness and entry into the field of hospitality, as well as high school completion rates.u Investing in middle managers, further developing people who may have advanced in the industry without essential supervisory training.

The integration of technology with the Olds College Hospitality program’s curriculum will allow the program to be delivered anywhere in Alberta. In partnership with Olds College, we have approached the Government of Alberta and Western Economic Diversification to provide funding for this initiative.

www.TourismWorks.ca With the growing need to connect with underrepresented groups in the labour market, the AHLA wanted to offer members an affordable way to reach the employees they need. With the support of Alberta Jobs, Skills, Training and Labour, we created www.TourismWorks.ca. This new job board will help our industry to deal with their recruitment challenges by:

u Offering an affordable, industry specific website;u Automated job matching for hospitality positions; andu Working with high schools, post-secondary institutions, and underrepresented groups to educate them about careers in the hospitality industry.

We believe TourismWorks will ease the labour challenge felt throughout the tourism and hospitality industry.

Seminars & WorkshopsTraining offered by the AHLA’s Karen Harrison was extremely popular in 2014. The AHLA offered:

u Housekeeping Edgeu Front Desk Agents: Making a Differenceu Training & Coaching Skills for Supervisorsu Team Excellenceu Super Service

The AHLA is the provincial certification organization for emerit professional training & certification through the Canadian Tourism Human Resource Council, handling registration, administration, and marketing of the program. In Alberta, 311 learners registered with emerit in 2014.

Educating Members about HR Practices, Standards and TopicsHandling Inquiries & Providing General InformationThe AHLA receives numerous inquiries from hotels regarding their HR practices. In addition to the HR Matters column in Alberta Hospitality, the AHLA provides information about HR topics and practices in all of our communication vehicles.


71%

OF EMPLOYEES ARE EMPLOYED FULL TIME

20% of the surveyed workforce is made up of foreign workers

52% of those are now Permanent Residents through the AINP

48% are working with a positive Labour Market Impact Assessment

19%

OF EMPLOYEES ARE PART TIME

27%

10%

OF EMPLOYEES ARE CASUAL

turnover for foreign workers 8% turnover for permanent residents 14%turnover for for all employees 46%hired foreign workers

between 2011 and 2013


Average wages for hard to fill entry-level positions:

IN 2013, THE AHLA HELD:


Standards of Conduct for Employers of Foreign Workers These Standards were approved by the AHLA’s Board of Directors in December 2014 to encourage transparency and accountability in the employment of foreign workers by AHLA members. The Standards provide a framework to guide our members’ conduct in a way that shows:

u Transparency and accountability to employees, guests, industry, and government.u The integrity of individual employers and the industry as a whole, helping to preserve the privilege of access to foreign workers.

The standards require that:u AHLA members comply with all relevant laws, regulations, policies, and procedures with respect to employing foreign workers.u The actions and decisions of AHLA members are made with integrity, advancing the long-term interests of our industry.

Employer of Choice DesignationThe AHLA’s Employer of Choice (EoC) designation helps members assess and improve their human resource practices. To achieve the designation, properties must:

u Complete an online audit that measures their HR practices; andu Have a designated percentage of employees complete the Employee Opinion Survey.

Whether or not they meet the standard to achieve the EoC designation, each property receives a customized report identifying their strengths as well as areas for improvement. Helping hotels and motels improve their HR practices and recognizing those that have implemented HR best practices shows employees, guests, and government that the hospitality industry offers satisfying and meaningful careers.

Collecting Labour Market Information The AHLA uses its Labour Market Survey to lobby federal and provincial governments on labour and immigration policies. The survey collects three categories of data:

u Salary information;u Benefits information; andu Labour market data.

Information gathered on wages and benefits helps our members ensure they offer competitive wages and benefits.

FOR FROM


2013 Result 2014 Target 2014 Result

Training Workshops 30 20 35

Employer of Choice Designations 87 75 110

Labour Market Survey Participation 30.3% 33.8% 24.1%

Scholarships Awarded $49,983 $50,000 $35,343

WFG Employee Health Benefits 131 135 129

Manulife Employee RRSP 12 12 12

Job Postings N/A 30 95


STRATEGIC OBJECTIVE 5 Sound Management and Strong Financial Stewardship

In our 95th year, the AHLA is a vibrant and

progressive organization. Practicing sound

management and demonstrating strong

financial stewardship is vital to the long

term sustainability of the association. Key

to achieving this is having clear direction,

effective management, and the resources

needed to implement and execute.



2014 PROGRESS

Building a Strong & Effective BoardThe AHLA has been fortunate to attract talented industry professionals to our Board of Directors. These individuals bring the perspective of our members to current issues affecting the industry. In June the Board of Directors held its annual retreat in Olds, where directors participated in a strategic planning process led by InterVISTAS. The result was a five year strategic plan with a refreshed vision, mission, values, and strategic objectives developed to better serve our members’ interests. These reinvigorated foundations appear throughout this annual report.

The AHLA’s Board of Directors has a solid reputation for being strategic and effective. It has adopted numerous progressive governance practices, including:

u Comprehensive orientation for new board members and committee chairs;u A deeply held appreciation of the organization’s vision, mission and values; u Use of knowledge-based decision-making in its deliberations;u Use of a consent agenda to ensure the board has sufficient time to focus on issues of strategic importance, and advance materials to ensure directors have the information they need for sound decision making;u Annual board evaluation and director self assessment; andu Sending the incoming Board Chair and the President & CEO to the Canadian Society of Association Executives’ Governance Summit.

The AHLA’s Board of Directors meets four times each year, in additional to time spent preparing for meetings, in committees, on conference calls and at meetings with government and industry. The individuals who served on the 2014–2015 Board of Directors put in over 750 hours of effort on behalf of AHLA members.

“In my opinion, one of

the board’s greatest

accomplishments in 2014 was

taking the time to review,

re-evaluate, and redefine the

AHLA’s vision, mission and

values. In changing times it’s

imperative to ensure that

these still define and align

with what is relevant to our

members in the short and long

term. And if they don’t, then

to change them to reflect

new directions and strategies,

which we did.” – AHLA Director

Strong & Competent LeadershipThe AHLA continues to align its internal resources to serve our members better. In 2014, the AHLA underwent a significant restructure, adopting a more holistic approach to how we deliver our programs and services. This reorganization allowed us to ensure we had the right people in the right places, capitalizing on existing resources and skill sets to foster collaboration and innovation. It also identified gaps, which we addressed by hiring individuals with the skills and talents we needed. To solidify the new structure, our internal policies were renewed to strengthen our organizational culture and build a positive environment that puts service to our members at the centre of everything we do.

AHLA 2014 Balanced Scorecard Results

2013 2014

Meet or exceed budget No Yes

Membership penetration of industry 95.3% 94.7%

Average Programs per member 1.24 1.27

% of members participating in one or more programs

73.8% 73.5%

Member satisfaction 75.5% 88.8%

Clean audit opinion Yes Yes

Stakeholders view AHLA as valued partner

96.2% 91.4%

Healthy Financial PositionIn keeping with good governance practice, the AHLA conducted a Request for Proposal for external audit services in May, culminating in the selection and appointment of MNP LLP for 2014–2016. The AHLA acknowledges and thanks PricewaterhouseCoopers LLP for the years of exemplary service they provided to our members.

Elenita Dizon joined the AHLA in the role of Accounting Manager in November, significantly increasing our team’s resources and capacity.

MNP has expressed an unqualified opinion that the AHLA’s 2014 financial statements present fairly, in all material respects, the financial position of the Alberta Hotel & Lodging Association. The 2014 Audited Financial Statements are presented with this Annual Report.

Since the construction of our office in 2009, reducing the long term debt associated with the AHLA’s land and building has been a priority. Total associated original costs were $4,053,815, of which $1,969,758 was financed by mortgage. In December 2014, AHLA made a prepayment of $100,000 directly against principal, reducing the balance owing to $1,000,000 in just five years. The term loan was renegotiated for a further three-year term at a very favourable rate. The current assessed value by the City of Edmonton is $4,791,000.

The AHLA’s annual membership revenue is a barometer for our relevance. It represents a significant proportion of the association’s total annual revenues. In addition, the AHLA offers well designed products and services


29% Accommodation Programs

38% Member Dues and Events

25% Member Value Programs

8% HR Products and Training

AHLA 2014 Revenue streams

which deliver demonstrable value for members, while ensuring a diversified and sustainable revenue stream for the organization:

Significant capital investments were made in 2014 to develop the Check In Canada and Tourism Works platforms:

2013 2014

CheckInCanada.com $128,026 $66,095

TourismWorks.ca N/A $29,319

Understanding Risk The board’s regular oversight of the affairs of the association and the annual external audit provide our members with assurance that good stewardship is being exercised over the association’s resources. Management conducts a regular review of potential risks, which is discussed with the Board of Directors.

The Alberta Hotel & Lodging Association provides trustee/accounting services to six Destination Marketing Funds in Alberta. As part of its due diligence to all members, in 2014 the AHLA initiated a legal review to identify risks associated with the fulfillment and continuation of its role. This legal review is ongoing in 2015.

25%

8%

38%

29%

FINANCIAL STATEMENTS


FINANCIAL STATEMENTS u 35

AchesonNova Inn

AirdreBest Western Regency InnComfort Inn & Suites AirdrieHoliday Inn Express Hotel & SuitesMotel 6 Ramada Hotel & SuitesSuper 8

AlixAlix Hotel

AthabascaAthabasca Hillside MotelAthabasca Lodge MotelAthabasca Open Camp Ltd.Days Inn

Grand Union HotelNew Western Athabasca InnSuper 8Arrow Motel

Banff Banff Aspen LodgeBanff Caribou Lodge & SpaBanff InnBanff International HostelBanff International HotelBanff Park Lodge Resort Hotel & Conference CentreBanff Ptarmigan InnBanff Rocky Mountain ResortBanff Voyager InnBest Western PLUS Siding 29 LodgeBlue Mountain Lodge B&B InnBow View Lodge

Brewster’s Mountain LodgeBrewster’s Shadow Lake LodgeBuffalo Mountain LodgeBumper’s InnCastle Mountain ChaletsCharlton’s Cedar CourtDelta Banff Royal Canadian LodgeDouglas Fir Resort & ChaletsDriftwood InnFairmont Banff SpringsHidden Ridge ResortHigh Country InnHomestead InnInns of BanffIrwin’s Mountain InnJohnston Canyon ResortKing Edward HotelMount Royal HotelRed Carpet Inn

Rundle ManorRundlestone LodgeSpruce Grove InnThe Banff CentreThe Fox Hotel & SuitesThe Juniper Hotel & BistroThe Rimrock Resort HotelTunnel Mountain Resort

Barrhead Barrhead Neighbourhood InnRed Baron InnSunset Cove MotelThe Barrhead Inn & Suites

Bashaw Bashaw Commercial Hotel


BassanoPrairie Schooner Motel (2000)R&R Inn Bassano

Beaverlodge Beaver InnBeaverlodge HotelBeaverlodge Motor InnSide Trax Inn

BeisekerMotel 9 LTD

BellevueBedside Manor Bed & Breakfast

Bentley Bentley Hotel

Big Valley Big Valley Inn

Black Diamond Black Diamond Hotel

BlackfaldsMicrotel Inn & Suites By Wyndham

BlairmoreThe Kanata Blairmore

BlufftonDeer Creek Lodge

BonnyvilleBest Western Inn & SuitesBonnyville Neighbourhood InnCentre Suite Inns

Holiday Inn ExpressSouthview MotelWestern Budget

Bow IslandSilver Sage Motel

Boyle Boyle HotelBoyle Motor InnTwilight Country Motel

Breton Breton Hotel

Brooks Brooks HotelCanalta BrooksHeritage Inn & Suites

Heritage Inn Hotel & Convention CentreLakeview Inns & SuitesNewell HotelPlains MotelRamada BrooksTel Star Motor InnTravelodge Brooks

Bruderheim Bruderheim Hotel

Busby Busby Hotel

Calgary Acclaim Hotel Calgary AirportAloft Calgary UniversityAmbassador Motor InnBest Western Airport Inn

Best Western PLUS Calgary Centre InnBest Western PLUS Port O’Call HotelBest Western PLUS Suites DowntownBest Western Premier Freeport Inn & SuitesBest Western Village Park InnCalgary Marriott Downtown HotelCanadas Best Value Inn Calgary (Royal Wayne)Carriage House InnCentro MotelClarion Hotel & Conference CentreCoast Plaza Hotel & Conference CentreComfort Inn & Suites Calgary AirportComfort Inn & Suites Calgary UniversityComfort Inn & Suites SouthCountry Inn & Suites By CarlsonCourtyard by Marriott Calgary AirportDays Inn Calgary Airport

Days Inn Calgary NorthwestDays Inn Calgary SouthDeerfoot Inn & CasinoDelta Bow ValleyDelta Calgary AirportDelta Calgary SouthEcono Lodge Inn & Suites UniversityEconoLodge Motel VillageEconoLodge SouthExecSuite Inc.Executive Royal HotelExecutive Suites by RosemanFairmont PalliserFour Points by Sheraton Calgary AirportFour Points by Sheraton Calgary WestGlenmore Inn & Convention CentreGrey Eagle Resort and CasinoHampton Inn & Suites Calgary Airport

Hampton Inn & Suites Calgary UniversityHampton Inn by HiltonHilton Garden Inn Calgary AirportHoliday Inn Calgary AirportHoliday Inn Calgary MacLeod Trail SouthHoliday Inn Express Calgary UniversityHoliday Inn Express Hotel & Suites Airport CalgaryHoliday Inn Express Hotel & Suites Calgary DowntownHoliday Inn Express Hotel & Suites Calgary SouthHomewood Suites by Hilton Calgary AirportHotel AlmaHotel ArtsHotel BlackfootHotel ElanHyatt Regency

International Hotel SuitesKensington Riverside InnLakeview Signature InnNuvo Hotel SuitesO Hotel SuitesOlympia LodgeRadisson Hotel & Conference Centre Calgary Airport EastRamada Hotel DowntownRamada Plaza Calgary Airport Hotel and Conference CentreRed Carpet InnRegency SuitesResidence Inn by Marriott Calgary AirportRoadking Inns CalgarySandman Hotel & Suites Calgary SouthSandman Hotel & Suites Calgary WestSandman Hotel Calgary Airport


Statement of Revenue and Expenses For the year ended December 31, 2014

The accompanying notes are an integral part of these financial statements

2

2014 2013

Tourism Marketing (Schedule 1) Revenue 865,821 434,061 Expenses 724,415 428,501

Excess of revenue over expenses 141,406 5,559

Member Value Programs (Schedule 1)

Revenue 735,231 689,999 Expenses 144,003 144,207


Human Resource Development (Schedule 1) Revenue 223,462 232,246 Expenses 210,969 261,001

Excess (deficiency) of revenue over expense 12,493 (28,755)

Membership Communications (Schedule 1) Revenue 1,122,446 1,078,675 Expenses 597,563 541,540


Government and Industry Relations (Schedule 1) Revenue - 24,665 Expenses 132,476 188,836

Deficiency of revenue over expenses (132,476) (164,171)

Scholarship (Schedule 1) Revenue - - Expenses 37,670 52,257

Deficiency of revenue over expenses (37,670) (52,257)

Other income (Note 15) 340,069 305,372

General expenses (Schedule 1) (1,372,589) (1,132,427)

Excess of revenue over expenses for the year 67,344 16,250

Total revenue 2,946,960 2,459,646 Total expenses (1,847,096) (1,616,342) Other income (Note 15) 340,069 305,372 General expenses (Schedule 1) (1,372,589) (1,132,427)

Excess of revenue over expenses for the year 67,344 16,250


Sandman Hotel Calgary City CentreService Plus Inns & Suites CalgarySheraton Cavalier Calgary HotelSheraton Suites Calgary Eau ClaireStaybridge Suites Calgary AirportSuper 8 ShawnessySuper 8 VillageThe Airport Traveller’s InnThe WestinTown & Country Motor HotelTraveller’s InnTravelodge Calgary UniversityTravelodge Hotel Calgary International AirportTravelodge Hotel Calgary Macleod TrailWingate By WyndhamWyndham Garden Inn

CamroseAlice HotelBEST WESTERN PLUS Resort CasinoCamrose MotelHotel MaradaNorsemen InnR&R Inn & SuitesRamadaStardust MotelSuper 8Travellers InnWindsor Hotel

CanmoreAkai MotelBanff Gate Mountain ResortBest Western PLUS Pocaterra InnBlackstone Mountain Lodge

Bow Valley MotelCanadian Rockies ChaletsCanmore CrossingCanmore Rocky Mountain InnCoast Canmore Hotel & Conference CentreCreekside Country InnEconoLodge Canmore Mountain LodgeFalcon Crest LodgeFire Mountain LodgeGrande Rockies ResortHoliday InnMystic Springs Chalets & Hot PoolsQuality Resort ChateauRamada Inn & SuitesRocky Mountain Ski LodgeRundle Mountain LodgeSilver Creek LodgeSolara Resort & Spa

StoneRidge Mountain ResortThe Drake InnThe Georgetown InnThe Lady Macdonald Country InnThe Lodges at CanmoreWindtower Lodge & Suites

Cardston Cardston Flamingo MotelSouth Country Inn

Caroline Caroline Gateway MotelCaroline HotelCaroline Motel

CarstairsGolden West Motor Inn

Alberta Hotel & Lodging AssociationStatement of Changes in Surplus

For the year ended December 31, 2014

2014 2013

Surplus, beginning of year 3,974,515 3,958,265


Surplus, end of year (Note 14) 4,041,859 3,974,515


3

Chauvin Chauvin Hotel

ClairmontRamada Inn & Travel CentreRedwood Inn & Suites

ClaresholmBest Seven InnBluebird MotelClaresholm InnLazy J Motel

Clearwater County Grandview Stage Resort

Cochrane Days Inn & Suites

RamadaSuper 8

Cold LakeBest Western InnDockside InnEl Lobo MotelLakeland InnLakeshore InnRamada Inn & Suites

Coleman BCMInns ColemanStop Inn Motel

ConsortPrairie Moon Inn & SuitesSunrise Motel

CoronationBunkhouse RV Park

Cremona Cremona Hotel

CrossfieldCountry InnDalemeadNorth Bow Lodge

DappCommercial Hotel

DayslandDayslander Motel 2010

Deadmans Flats Big Horn MotelCopperstone Resort HotelKiska Inn

Debolt Debolt Hotel

Delburne Delburne HotelDerwent Derwent Hotel

Devon Devon HotelKey West Inn

Alberta Hotel & Lodging AssociationStatement of Cash Flows


2014 2013

Cash provided by (used for) the following activities Operating

Excess of revenue over expenses 67,344 16,250Amortization of property and equipment, intangible and other assets 242,985 185,330Unrealized gain on investments (21,698) (19,622)

288,631 181,958Changes in working capital accounts

Accounts receivable and prepaids (6,183) 113,514Inventory 548 4,141Accounts payable and accruals 91,443 (230,299)Deferred contributions 38,168 407Receivable/payable from AHSA (8,214) (106)

404,393 69,615

Financing Repayment of long-term debt (236,202) (133,344)

Investing Purchases of trading investments (57,044) (21,013)Proceeds on disposal of trading investments 81,395 -Purchases of property and equipment (23,439) (7,677)Purchases of intangible assets (138,189) (189,626)Deposits received - 32,595

(137,277) (185,721)

Increase (decrease) in cash resources

30,914 (249,450)

Cash resources, beginning of year 182,956 432,406

Cash resources, end of year 213,870 182,956


4


Didsbury Didsbury Motel

Drayton Valley Aspen Motor InnBCMInnsCoach MotelDrayton Valley HotelFoxwood Inn & SuitesHoliday Inn Express & SuitesLakeview Inns & SuitesMatador MotelRamada Drayton ValleyService Plus EncoreService Plus Inns & SuitesSuper 8West Country InnWestwind Motor Inn

DrumhellerBadlands MotelCanalta JurassicEconoLodge Inn & SuitesHoo-Doo MotelRamada Hotel & SuitesSuper 8 Travelodge

Duchess Duchess Hotel

EdmontonAladdin MotelAlberta Place Suite HotelAlgonquin Motor LodgeArgyll Plaza HotelAurora Motel

Best Western Cedar Park InnBest Western PLUS City Centre InnBest Western PLUS South Edmonton Inn & SuitesBest Western PLUS Westwood Inn By The MallCampus Tower Suite HotelCanterra Suites HotelCentury Casino & HotelChateau Lacombe HotelChateau Louis Hotel & Conference CentreChateau MotelChateau Nova Hotel and SuitesChateau Nova YellowheadCoast Plaza HotelColiseum InnComfort Inn & Suites DowntownComfort Inn West Edmonton

Commercial Hotel / Blues on WhyteContinental Inn & SuitesCourtyard by MarriottCourtyard by Marriott Edmonton WestDays Inn & Suites West EdmontonDays Inn Downtown EdmontonDays Inn Edmonton SouthDelta Edmonton Centre Suite HotelDelta Edmonton South Hotel & Conference CentreDerrick MotelDoubleTree by Hilton West EdmontonDover HotelDrake HotelEastglen InnEconoLodge Edmonton SouthEdmonton Marriott at River Cree ResortExecutive Royal Inn West Edmonton

Alberta Hotel & Lodging AssociationNotes to the Financial Statements


1. Incorporation and nature of the association

Alberta Hotel & Lodging Association (the “Association”) is registered as a not-for-profit organization under the Societies' Actof Alberta and is exempt from income taxes under Section 149 of the Income Tax Act. These financial statements includethe statements of financial position, revenue and expenses, changes in surplus and cash flows for the Association’sGeneral Administration Fund.

The Association is a voluntary association, established in 1919, that serves Alberta’s tourism and hospitality industry. Withmore than 885 member properties across Alberta, the Association represents hotels, motels, inns, resorts, bed & breakfastsand lodges.

The Association has some common directors with the Alberta Hotel Safety Association (AHSA). The AHSA is registered asa not-for-profit organization under the Societies’ Act of Alberta and is exempt from income taxes under Section 149 of theIncome Tax Act. The AHSA was established in 1999 to assist hotels in the implementation of health and safety programs.The purpose is to reduce injuries and claims by increasing awareness and responsibility of health and safety within theindustry.

The Association has a common director with the Canadian Hotel and Lodging Association Inc. (CHLA). The CHLA isregistered as a not-for-profit organization under the Canada Corporations’ Act – Part II and is exempt from income taxesunder Section 149 of the Income Tax Act. The CHLA was established in 2009, to fund, facilitate, promote and carry outactivities and programs for the advancement of the hospitality industry in Canada.

2. Significant accounting policies

These financial statements have been prepared in accordance with Canadian Accounting Standards for Not-For-ProfitOrganizations in Part III of the CPA Handbook.

Revenue recognition

The Association follows the deferral method of accounting, which results in the following:

Sales are recognized in the accounting period in which the services are rendered, by reference to stage of completion of thespecific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.

Rental revenue from leases is recognized on a straight-line basis over the lease term.

Revenue from guide and internet advertising is recognized when the information for publication is available for distribution.

Net investment and other income are recognized in the period in which it was earned.

Advances received for services to be rendered by the Association are deferred and recognized in the statement of revenueand expenses in the period in which the service is provided.

Government assistance received toward current expenses is recognized in revenue in the current period. Governmentassistance received relating to expenses of future accounting periods is deferred and amortized to income as relatedexpenses are incurred.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, balances with banks and short-term investments with maturities of threemonths or less.

Other assets

Other assets consist of lease inducements related to tenant improvements and direct costs associated with the leaseagreement. These costs are amortized on a straight-line basis over five years, which is the term of the lease.

5

Fantasyland Hotel at West Edmonton MallFour Points by Sheraton Edmonton SouthGateway MotelGrand HotelHampton Inn & Suites by Hilton Edmonton WestHampton Inn by Hilton Edmonton SouthHilton Garden Inn West EdmontonHoliday Inn Conference Centre Edmonton SouthHoliday Inn Express and Suites Edmonton NorthHoliday Inn Express Edmonton DowntownHoliday Inn Express Hotel & Suites Edmonton SouthHoliday Inn Express Hotel & Suites West EdmontonHoliday Inn Hotel & Suites West EdmontonHome2 Suites by Hilton West Edmonton

Hotel SelkirkHoward Johnson Hotel West EdmontonJasper Avenue Inn & SuitesJasper Place HotelJockey MotelKnights InnLister Conference Centre University of AlbertaLodge Motor InnMatrix HotelMetterra Hotel on WhyteQuality Inn West HarvestRadisson Hotel and Convention CentreRadisson Hotel Edmonton SouthRamada Edmonton SouthRamada Hotel & Conference CentreRest E-Z InnRosslyn Inn & SuitesRoyal Western Motel

Sandman Hotel West EdmontonSandman Signature Hotel & Suites Edmonton SouthSands Inn & SuitesSawridge Inn Edmonton SouthStaybridge Suites West EdmontonStrathcona HotelSuper 8 Edmonton SouthSuper 8 Motel Edmonton WestThe Fairmont Hotel MacdonaldThe Sutton Place Hotel EdmontonThe WestinTravelodge Edmonton EastTravelodge Edmonton SouthTravelodge Edmonton WestUnion Bank InnVarscona Hotel on WhyteWest Edmonton Mall InnWest Edmonton Motor Inn

Whitemud Inn Edmonton SouthWingate By WyndhamYellowhead Motor Inn

EdsonBest Western High Road InnBlack Gold InnComfort Inn & SuitesEconoLodgeEdson HotelGuest House Inn & SuitesHoliday Inn Express Hotel & SuitesHoward Johnson North Ridge InnLakeview Inns & SuitesLakeview Inns & SuitesNova InnPark “A” MotelRamada InnSundowner Inn



2. Significant accounting policies (Continued from previous page)

Capital assets

Capital assets are recorded at cost.

Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimateduseful lives.

Method RateBuildings straight-line 40 yearsOffice furniture and fixtures straight-line 10 yearsComputer equipment straight-line 3 yearsPhotocopiers straight-line 5 yearsTelephone system and postage meter straight-line 5 yearsOther office equipment straight-line 4 years

Intangible assets

All of the Association's intangible assets have limited useful lives and primarily include capitalized computer software.

Development costs that are directly associated with identifiable and unique software controlled by the Association arerecorded as intangible assets if inflow of incremental economic benefits exceeding costs is probable. Capitalized costsinclude staff costs of the software development team, costs incurred on contracts with third party developers and anappropriate portion of relevant overheads. All other costs associated with computer software, e.g. its maintenance, areexpensed when incurred. Intangible assets are amortized using the straight-line method over their useful lives.

Capitalized internal software development costs, software costs and website costs are amortized on a straight-line basisover 3 years.

Contributed materials

Contributions of materials are recognized both as contributions and expenses in the statement of revenue and expenseswhen a fair value can be reasonably estimated and when the materials are used in the normal course of the Association'soperations and would otherwise have been purchased. No contributed materials (2013 - $nil) were recorded in the year.

Allocation of expenses

The Association records a number of its expenses by pillar, including tourism marketing, member value programs, humanresource development, membership communications, government and industry relations, and scholarships. The costs ofeach program include the costs of personnel, premises and other expenses that are directly related to providing theseservices. Labour costs are allocated based on actual time spent as reported in approved timesheets.

The Association also incurs a number of general support expenses that are common to the administration of theAssociation and each of its pillars. General support expenses, which include Board of Directors, information technology, andoffice overhead costs, are included in general expenses.

Financial instruments

All financial instruments are initially recorded at their fair value, excluding certain financial assets and liabilities originatedand issued in a related party transaction measured at their carrying or exchange amount in accordance with Section 3480Related Party Transactions (refer to Note 17). At initial recognition, the Association may irrevocably elect to subsequentlymeasure any financial instrument at fair value. The Association has not made such an election during the year.

The Association subsequently measures investments in equity instruments quoted in an active market at fair value. All otherfinancial assets and liabilities are subsequently measured at amortized cost.

Transaction costs and financing fees directly attributable to financial instruments subsequently measured at fair value areimmediately recognized in excess of revenues over expenses for the current period. Transaction costs and financing feesare added to the carrying amount for those financial instruments subsequently measured at cost or amortized cost.

The Association assesses impairment of all of its financial assets measured at cost or amortized cost when there is anindication of impairment. Any impairment which is not considered temporary is included in current year excess of revenuesover expenses.

6


Super 8 The Cedars MotelTotem Motel

Elk Point Elk Point Motel and RV ParkHilltop Motor Inn

Elkwater Elkwater Lake Lodge & Resort

EntwistlePembina River Inn Ltd.

EvansburgRustic Ridge Ranch and Lodge

Fairview Dunvegan Inn & Suites

Fairview Motor InnHillview InnNew Grand Hotel

Falher Falher HotelThe Honeycomb Inn

Forestburg Battle River Inn & SuitesForestburg Motor InnMany Horses Saloon/Forestburg Hotel

Fort MacleodCentury 2 MotelD.J. MotelFort MotelRed Coat Inn MotelSunset Motel

Fort McMurray Ace InnBCMInns Fort McMurrayBCMInns Rusty’sChateau NovaClearwater Residence Hotel TimberleaClearwater Suite HotelFranklin Suite HotelMcMurray InnMerit Hotel & SuitesNomad InnNoralta Lodge BighornNoralta Lodge FirebagNoralta Lodge Fort McMurrayNoralta Lodge Ft. McMurray FM2Noralta Lodge Lynx Noralta Lodge WolverinePlatinum HotelsPodollan Inns & Rez-idence

Podollan Inns Fort McMurrayQuality Hotel & Conf. Centre Fort McMurrayRadisson Hotel & SuitesRidgewood InnSawridge Inn & Conference CentreStonebridgeSuper 8The Bridgeport InnVantage Inn & Suites

Fort Saskatchewan Comfort Inn & SuitesFort MotelHampton Inn by HiltonLakeview Inns & SuitesPark Avenue InnStars Inn & SuitesSuper 8The Kanata




Capital assets




Intangible assets





Contributions of materials are recognized both as contributions and expenses in the statement of operations when a fairvalue can be reasonably estimated and when the materials are used in the normal course of the Association's operationsand would otherwise have been purchased.









6




Capital assets




Intangible assets





Contributions of materials are recognized both as contributions and expenses in the statement of revenue and expenseswhen a fair value can be reasonably estimated and when the materials are used in the normal course of the Association'soperations and would otherwise have been purchased. No contributed materials (2013 - $nil) were recorded in the year.









6




Measurement uncertainty (use of estimates)

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizationsrequires management to make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenuesand expenses during the reporting period.

Accounts receivable and related party receivables are stated after evaluation as to their collectability and an appropriateallowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated usefullives of capital assets, intangible assets and other assets.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported inexcess of revenues and expenses in the periods in which they become known.

3. Cash and cash equivalents

2014 2013

Cash on hand 300 300Bank balances payable on demand - weighted average annual

interest rate of 0.75% (2013 - 0.75%) 190,589 153,018Cash balances with investment broker 22,981 29,638

213,870 182,956

4. Trading investments

2014 2013

Canadian Federal Government bonds 226,653 340,478Canadian Provincial Government bonds 63,337 -Corporate bonds - Canadian issuers 295,267 301,623Corporate stock - Canadian companies 273,772 187,687Corporate stock - US companies 67,365 59,136Corporate stock - Foreign companies - 40,123

926,394 929,047

None of the trading instruments are pledged as collateral.

7

Fort Vermilion Country Gardens Bed and BreakfastSheridan Lawrence Inn

Fox Creek BEST WESTERN PLUSComfort Inn & SuitesDevonian Hotel & SuitesFox Creek InnFoxwood Inn & SuitesGrizzly Motor HotelSuper 8Timber Ridge Inn & Suites

Gibbons Gibbons Hotel

Grande Cache Acorn MotelBig Horn Motor InnDays Hotel & SuitesGrande Cache HotelGrande Mountain LodgeMisty Mountain Inn & Suites

Grande Prairie Best Western Hotel & SuitesCanadian Motor InnCSI Inns BrooksideDays Inn Grande PrairieHoliday Inn & Suites Convention CentreHoliday Inn ExpressIgloo InnMotel 6

Paradise Inn & Conference Centre Grande Prairie AirportPodollan Inn & SpaPodollan Rez-idencePomeroy Hotel & Conference CentrePomeroy Inn & SuitesSandman HotelService Plus Inns & SuitesSilver Crest LodgeStanford Hotels & ResortStonebridge Hotel Super 8The Lodge Motor InnWestern Budget Motel (2)

Granum Longbranch Inn

Grimshaw Dee-Jay MotelGrimshaw HotelMile Zero Motor Inn

Hanna Canada Grey Motor InnCanalta HannaWest View Motel

Hardisty R&R Inn and Suites Hardisty

Harvie Heights Banff Boundary Lodge


High Level Best Western PLUS MirageDays InnEconoLodge Inn & SuitesExecutive House Suites Hotel & Conf.CentreFlamingo InnFour Winds HotelOur Place MotelQuality Inn & SuitesSuper 8

High Prairie Days InnFamily Inn MotelKey InnNorthern Lites Motor InnPeavine Inn & SuitesRaven Motor Inn

High River Heritage Inn Hotel & Convention CentreRamadaSuper 8

HintonAthabasca Valley Inn & SuitesBCMInns and RV ParkBest Western White Wolf InnBig Horn MotelCrestwood HotelDays Inn HintonEconoLodge Inn & SuitesHoliday Inn Express Hotel & SuitesHoliday InnLakeview Inn & SuitesNova Inn Nova Lodge

Old Entrance Bed & Breakfast CabinsOverlander Mountain LodgePines MotelSuper 8 Timberland HotelTwin Pine Inn & Suites

Hythe Hythe Motor Inn

Innisfail Best Western InnBluebird MotelInnisfail HotelSuper 8

Inuvik Nova Inn

Irma Irma Hotel

Jasper Alpine VillageAstoria HotelAthabasca HotelBear Hill LodgeBecker’s ChaletsBest Western Jasper Inn & SuitesChateau JasperFairmont Jasper Park LodgeFilia InnJasper House BungalowsLobstick LodgeMaligne LodgeMarmot LodgeMiette Hot Springs Bungalows



5. Accounts receivable and prepaid expenses

2014 2013

Trade receivables 358,012 431,390Prepaid expenses 101,969 22,408Allowance for doubtful accounts (889) (889)

459,092 452,909

Included in trade receivables is $58,721 (2013 - nil) owing from Canadian Hotel Lodging Association.

6. Other assets

Accumulated 2014 2013

Cost amortization Net Net

Tenant improvements 50,000 40,625 9,375 18,750Leasing costs 15,158 12,316 2,842 5,684

65,158 52,941 12,217 24,434

In 2014, amortization of $12,217 (2013 - $12,217) was expensed.

7. Capital assets

2014 2013

Accumulated Net book Net book

Cost amortization value value

Land 927,021 - 927,021 927,021Buildings 3,126,794 397,352 2,729,442 2,807,612Office furniture and fixtures 211,799 119,478 92,321 108,658Computer equipment 129,695 115,503 14,192 8,784Photocopiers 40,045 35,105 4,940 10,069Telephone system and postage meter 28,502 27,590 912 -Other office equipment 19,756 19,421 335 503

4,483,612 714,449 3,769,163 3,862,647


8. Intangible assets

CostAccumulatedamortization 2014 2013

Website 597,816 392,950 204,866 180,393Software development costs 220,279 218,572 1,707 387Software costs 43,654 42,444 1,210 2,660

861,749 653,966 207,783 183,440

in 2014, amortization of $113,846 (2013 - $51,865) was expensed.

8




2014 2013


459,092 452,909


6. Other assets




65,158 52,941 12,217 24,434


7. Capital assets

2014 2013




4,483,612 714,449 3,769,163 3,862,647





861,749 653,966 207,783 183,440


8




2014 2013


459,092 452,909


6. Other assets




65,158 52,941 12,217 24,434


7. Capital assets

2014 2013




4,483,612 714,449 3,769,163 3,862,647





861,749 653,966 207,783 183,440


8




2014 2013


459,092 452,909


6. Other assets




65,158 52,941 12,217 24,434


7. Capital assets

2014 2013




4,483,612 714,449 3,769,163 3,862,647





861,749 653,966 207,783 183,440


8




2014 2013


459,092 452,909


6. Other assets




65,158 52,941 12,217 24,434


7. Capital assets

2014 2013




4,483,612 714,449 3,769,163 3,862,647





861,749 653,966 207,783 183,440


8



9. CHLA loan receivable

Included in the loan to the CHLA is $22,500 that was provided as a funding advance. As well, the Association has enteredinto an arrangement with CHLA to provide funds for their operating expenses. Total amount funded in 2011 was $158,132with no further funding being advanced. The receivable is unsecured, non-interest bearing and will be repaid once the CHLAis fully operational.

10. Accounts payable and accrued liabilities

Included in accounts payable and accrued liabilities are government remittances (such as goods and services taxes andpayroll withholding taxes) of $15,131 (2013 - $14,131).

11. Utility Partnership deposits

2014 2013

Utility Partnership deposits 53,207 53,207Interest accrued on Utility Partnership deposits 6,041 6,041

59,248 59,248

The Utility Partnership deposits were interest-bearing starting from the second year outstanding, provided the member'saccount has been in good standing, are demand in nature and repayable four months after the Association's memberleaves the Utility Partnership program. The interest rates payable on these deposits are equal to the rates earned by theAssociation on its cash deposit bank accounts. No interest was accrued in 2014 (2013 - $nil) as the Utility Partnershipprogram with EPCOR concluded as at December 31, 2010 and some member deposits were returned in 2011.

12. Deferred revenue

2014 2013

Energy efficiency levy 330,910 330,910Check In Canada advance received 73,000 -Celebration Homes lease deposit 6,532 6,532Tradeshow 2014 - 21,750Membership dues 2014 - 833Guide advertising 2014 - 12,249

410,442 372,274

Lease deposit related to first and last month's rent held as security deposit. Deferred revenue from energy efficiency levyrelates to revenue collected during the 2006 - 2010 Utility Partnership program with EPCOR and is retained for specific usein providing environmental stewardship benefits to members.

9

Mount Robson InnPark Place InnPatricia Lake BungalowsPine BungalowsPocahontas CabinsPyramid Lake ResortSawridge Inn & Conference CentreSunwapta Falls Rocky Mountain LodgeTekarra LodgeThe Crimson JasperTonquin InnWhistler’s Inn

Kananaskis Delta Lodge

Keg RiverMillenium Cabins

Killam Killam Krossing HotelWagon Wheel Motel

La Crete La Crete Motel

Lac La Biche Almac Motor HotelBCMInnsCanalta Lac La BicheKaren’s Katering Ltd.Lac La Biche InnParkland Motel IParkland Motel IIRamada

Lacombe Aim Motel

Country Club InnGreenway InnLacombe Motor Inn

LacoreyLakeland Country Inn

Lake Louise Baker Creek Mountain ResortFairmont Chateau Lake LouiseLake Louise InnMountaineer LodgeParadise Lodge and BungalowsPost HotelSimpson’s Num-Ti-Jah LodgeThe Crossing

LamontArchie’s Motel

Heartland HotelLamont Hotel

LeducAirport MotelBEST WESTERN PLUS Denham Inn & SuitesDays Inn Edmonton AirportExecutive Hotel AlexandraExecutive Royal Hotel Edmonton AirportHilton Garden Inn Edmonton International AirportRamada Edmonton International AirportSuper 8 Edmonton International AirportTravelodge Edmonton International AirportWaldorf HotelWestern Budget Motel (1)Western Budget Motel (2)Western Budget Motel (3)


Leslieville Leslieville Hotel

Lethbridge Best Western Plus Service Inn & SuitesCanadas Best Value InnChinook MotelComfort InnDays InnEconoLodge and SuitesHampton Inn & Suites by HiltonHoliday Inn Express Hotel & SuitesHoliday InnHoward Johnson Express InnLethbridge HotelLethbridge Lodge Hotel & Conference CentrePremier Inn & SuitesQuality Inn & Suites Lethbridge

RamadaSandman HotelSuper 8The Coast Lethbridge Hotel & Conference CentreTravelodge

Lloydminster Best Western Plus Meridian HotelDays Hotel & SuitesEcono LodgeHampton InnHoliday Inn Hotel & SuitesIvanhoe MotelRAMADA INNRoyal HotelTropical Inn Hotel and Conference Centre

Lodgepole Lodgepole Pine Inn

LongviewBlue Sky Motel

Lougheed Motel Highway

ManningGrimm’s MotelHillcrest MotelManning Motor Inn

Marwayne Marwayne Hotel

Mayerthorpe Haven Inn

McLennan Lakeside Motor Inn

Medicine Hat Best Western PLUS Sun CountryClarion Hotel & Conference CentreCoast HotelComfort Inn & SuitesCorona HotelDays InnHoliday Inn Express & SuitesImperial InnMotel 6Pals MotelSuper 8Travelodge Hotel

Milk River Sandstone Motel



13. Long-term debt

2014 2013

Non-revolving term loan, bearing interest at prime plus 0.25% (2013 - prime plus 1.25%),repayable in monthly principal payments of $11,112. Final balance of principal and accruedinterest then outstanding due December 31, 2017 1,000,000 1,236,202

Less: Current portion 133,344 1,236,202

866,656 -

Principal repayments on long-term debt in each of the next three years are estimated as follows:

2015 133,3442016 133,3442017 733,312

1,000,000

The non-revolving term loan is collateralized by a general security agreement providing a charge over all present and futureproperty of the Association; replacement cost fire insurance coverage; $2,000,000 collateral mortgage with first charge overland and building; a real property report; and an assignment of all leases and rents.

At December 31, 2014, the Association accrued $1,155 (2013 - $1,307) in interest on long term debt. As at December 31,2014, the bank's prime rate was 3.00% (2013 - 3.00%).

Long-term debt is subject to certain financial covenants with respect to maintaining an EBITDA to future debt obligationratio. As at December 31, 2014, the Association is in compliance with all such covenants.

14. Restrictions on surplus

The Association's total surplus is comprised of the following:

2014 2013

Surplus invested in capital and intangible assets:Capital assets 3,769,163 3,862,647Intangible assets 207,783 183,440Long-term debt (1,000,000) (1,236,202)

2,976,946 2,809,885

Unrestricted surplus 1,064,913 1,164,630

4,041,859 3,974,515

15. Other income

2014 2013

Trustee fees 95,000 95,000Rental income 168,274 156,795Interest income 27,627 27,169Gain on trading investments 41,591 19,622Dividends 7,577 6,786

340,069 305,372

10

MilletPipestone Motel Millet Campground

MorleyStoney Nakoda Resort & Casino

Nampa Big Country Inn

NantonAuditorium HotelRanchland Inn

Nisku Airways Country InnFour Points by Sheraton Edmonton International AirportHoliday Inn Express Edmonton International Airport

Nisku Inn & Conference Centre Edmonton AirportNisku Place Motel at AirportQuality Inn AirportRenaissance Edmonton Airport Hotel

Nordegg Aurum LodgeNordegg Lodge

North Kananaskis Nakoda Lakeside Lodge

Okotoks Lakeview Inns & SuitesOkotoks Country Inn

OldsBest Western

Circle Five MotelOlds HotelPomeroy Inn & Suites at Olds CollegeRamadaSiesta MotelThe Sportsman’s Inn Motel

OyenAntelope InnCanalta Oyen

Patricia Patricia Hotel

Peace River BCMInnsNova InnPeace Valley Inns Hotel & Conference Center

Sawridge Inn & Conference CentreSuper 8Western Budget Motel

Pincher Creek Foothills MotelHeritage Inn Hotel & Convention CentreKing Edward HotelParkway Motel & European LogesRamadaStardust MotelSuper 8

Plamondon Chez Nous MotelPelican Hotel

Ponoka Canalta Ponoka



13. Long-term debt

2014 2013



866,656 -


2015 133,3442016 133,3442017 733,312

1,000,000






2014 2013


2,976,946 2,809,885


4,041,859 3,974,515

15. Other income

2014 2013


340,069 305,372

10



13. Long-term debt

2014 2013



866,656 -


2015 133,3442016 133,3442017 733,312

1,000,000






2014 2013


2,976,946 2,809,885


4,041,859 3,974,515

15. Other income

2014 2013


340,069 305,372

10




16. Trust accounts

As provided for under the Trust and Governance Agreements the Association has with various destination marketing funds,the Association receives and disburses funds in trust. These trust funds are accounted for separately and, accordingly, arenot reflected in these financial statements. As at December 31, 2014, the Association held trust funds on deposit in theamount of $14,706,094 (2013 - $11,239,013).

17. Related party transactions

Office rent of $66,770 (2013 - $66,675) was received during the year from the Alberta Hotel Safety Association.

Office furniture was purchased from Alberta Hotel Safety Association for $3,500 (2013 - $nil).

This transactions have been measured at the exchange amount, which is the amount of consideration agreed upon by theparties.

18. Financial instruments

The Association, as part of its operations, carries a number of financial instruments. It is management's opinion that theAssociation is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financialinstruments except as otherwise disclosed.

Interest rate risk

The Association is exposed to interest rate risk arising from fluctuations in interest rates on its cash and tradinginvestments, as described in Notes 3 and 4 and long-term debt as described in Note 13.

Credit risk

The Association is exposed to credit risk through its cash, marketable securities, accounts receivable and related partyreceivables. The maximum amount of credit risk exposure is limited to the carrying value of the balances as disclosed inthese financial statements.

The Association manages its exposure to credit risk on cash and marketable securities by placing these financialinstruments with high-credit quality financial institutions. The investments are managed on the Association's behalf by anexternal investment manager. The Board of Directors with the assistance of the investment manager has establishedguidelines for the asset mix in accordance with the Association's investment policy.

The Association assesses, on a continuous basis, accounts receivable and related party receivables and provides for anyamounts that are not collectible in the allowance for doubtful accounts.

Market risk

The Association is exposed to market risk through its marketable securities. The risk is minimized by the conservativecomposition of investments which is governed by the Association's investment policy.

Liquidity risk

Liquidity risk is the risk that the Association will encounter difficulty in meeting obligations associated with financial liabilities.The Association enters into transactions to borrow funds from financial institutions for which repayment is required atvarious maturity dates.

The Association manages its liquidity risk by monitoring its operating requirements. The Association prepares budgets andcash forecasts to ensure it has sufficient funds to fulfill its obligations. There has been no change to the risk exposures from2013.

11

Leland HotelPonoka Stampeder Inn

PriddisAzuridge Estate Hotel

ProvostCanalta ProvostDeerhead InnGreenhead MotelProvost Motor InnR&R Inn & Suites

Rainbow LakeNoralta Motor InnRainbow Centre HotelRainbow Inn

Red Deer Aladdin Motor InnBest Western PLUS Inn & SuitesBlack Knight InnComfort Inn & Suites Days Inn Red DeerHoliday Inn ExpressiHotel 67 StreetMotel 6 Quality Inn North HillRAMADA Hotel & SuitesRed Deer Lodge Hotel & Conference CentreSandman HotelSheraton HotelSuper 8 City CentreSuper 8TownePlace Suites by MarriottTravellers InnTravelodge Red Deer

Red Deer County EconoLodge Inn and SuitesHoliday Inn & Suites Red Deer SouthHoward Johnson InnNoralta Lodge Red Earth Creek

Red Earth Red Earth Inn

Red Earth CreekRedcliff Hylton

RedwaterParadise Inn and Suites RedwaterRed Rest Motel

RimbeyBest Western Rimstone Ridge HotelCanalta Rimbey

Grand HotelParkland MotelRimbey Motor Inn

Rocky Mountain House Alpine MotelBest Western Rocky Mountain House Inn & SuitesCanalta Rocky Mountain HouseChinook InnRocky Inn ExpressTamarack Motor InnTay River Motel & RVThe House MotelVoyageur MotelWalking Eagle Inn & Lodge

Round Hill Round Hill Hotel


Schedule of Revenue and Expenses – Schedule 1 For the year ended December 31, 2014

12

2014 2013 Tourism Marketing Revenue

Accommodation directory, campground directory and Check in Canada 699,493 216,273 Star Quality Rating Program – Green Key and other 166,328 217,788

865,821 434,061 Expenses

Accommodation directory, campground directory and Check in Canada 515,149 164,302 Star Quality Rating Program – Green Key and other 209,266 264,199

724,415 428,501

Excess of revenue over expenses 141,406 5,560 Member Value Program

Revenue Electrical energy and natural gas program 494,655 445,334 Self-insurance program 205,961 202,516 Other 34,615 42,149

735,231 689,999 Expenses

Electrical energy and natural gas program 68,981 67,199 Self-insurance program 4,874 5,779 Other 70,148 71,229

144,003 144,207


Rycroft Crossroads MotelRycroft HotelSt. Michaels Inn

Sexsmith Sexsmith Hotel

Sherwood Park BEST WESTERN PLUS Sherwood ParkFranklin’s InnHoliday Inn Express & SuitesHoliday Inn Conference CentreMainStay SuitesRamadaSuper 8

Slave Lake Highway Motor Inn

Holiday Inn Express & SuitesLakeside Motor InnLakeview Inns & SuitesSlave Lake Inn & Conference CentreSuper 8Travelodge

Smoky Lake Smoky Lake InnSuper 8

Spirit River Spirit River Hotel

Spruce Grove Grove Motor InnHoliday Inn Express & SuitesTravelodge Inn & SuitesSpruce View Motel

St. Albert BEST WESTERN PLUS The InnHorizon MotelSleep Inn MotelSt. Albert Inn & Suites

St. Paul Galaxy Motel & RestaurantSt. Paul LodgeSuper 8The King’s MotelWoodland Motor Inn

Standard Standard Hotel/Neighbourhood Grill & Bar

Stettler Canalta StettlerHeartland Lodge

Plains Motor InnRamada Super 8

Stony Plain Best Western Sunrise Inn & SuitesMotel 6Ramada Inn & SuitesTravelodge Hotel

Strathmore Best Western Strathmore InnDays Inn & Suites Howard Johnson HotelLeroy’s Motor InnSuper 8Travelodge




13

2014 2013 Human resource development Revenue

Certifications and training products 76,714 117,023 Consulting services and seminars 59,056 34,382 Health plan 87,692 80,841

223,462 232,246 Expenses

Certifications and Training Products 99,852 142,186 Consulting services and seminars 24,600 9,303 Employer of Choice and Tourism Works 43,466 46,744 Grants & funding - 27,961 Health plan 550 1,159 HR indirect expenditures 42,501 33,648

210,969 261,001

Excess (deficiency) of revenue over expenses 12,493 (28,755) Membership communications

Revenue Member events: annual convention & trade show and regional meetings 362,937 355,593 Membership publications 1,700 5,205 Membership services 757,809 717,877

1,122,446 1,078,675 Expenses

Member events: annual convention & trade show and regional meetings 374,428 354,145 Membership publications 68,177 40,240 Membership services 154,958 147,155

597,563 541,540


Sundre Best Western PLUS Mountain View Inn & SuitesChinook Country InnParkwood Motor InnSun Plaza MotelSundre Hotel

Swan Hills Derrick Motor InnHillcrest MotelWelcome Inn

Sylvan Lake Best Western PLUS Chateau InnComfort Inn & Suites

Taber Heritage Inn Hotel & Convention Centre Palace HotelSuper 8Taber MotelTaber Motor Inn

Thorhild Corona Hotel

Three Hills Best Western Diamond InnLamplighter InnRest-Easy MotelSuper 8

Tilley Tilley Hotel

Torrington Torrington Hotel

Turner Valley Diamond Willow Artisan RetreatTurner Valley Lodge

Two Hills Junction Inn

Valleyview Hi Valley Motor InnHorizon Inn & SteakhouseWestern Valley Inn

Vauxhall Corona Hotel

Vegreville West-View Motel

Vermilion Brunswick Motor InnSuper 8

Viking Caledonia Motor Inn

Wabamun Shoreside Inn & SuitesWabamun Hotel

Wabasca Luxury First HotelNoralta LodgeRiverside Inn



14

2014 2013 Government and industry relations Revenue - 24,665 Expenses

Gaming & liquor 11,203 13,454 Hotel Association of Canada (HAC) 29,371 40,728 Provincial government lobbying 12,171 4,021 Government relations – general 79,731 130,633

132,476 188,836

Deficiency of revenue over expenses (132,476) (164,171) Scholarship

Expenses Scholarship awards 35,343 49,983 General 2,327 2,274

Deficiency of revenue over expenses 37,670 52,257

Other income 340,069 305,372 General expenses

Total Board of Directors expenses 125,296 98,376 Total computer/IT and telecommunications expenses 77,892 69,615 Total facility and office expenses 239,965 155,720 Total overhead office payroll 567,496 481,079 Total marketing and professional fees 68,319 89,661 Total other expenses 293,621 237,976

1,372,589 1,132,427

Wainwright Best Western Inn & SuitesBio-Vista MotelBison MotelDay’s MotelPlains West Motor InnR&R Inn and SuitesRamada WainwrightSprings Motor InnThe Park Hotel

Wandering River Wandering River Motel

Warner Warner Hotel

Waterton Park Aspen Village Inn

Bayshore Inn Resort & SpaBear Mountain MotelCrandell Mountain LodgePrince of Wales HotelThe Kilmorey LodgeWaterton Glacier SuitesWaterton Lakes Resort

Wayne Rosedeer Hotel / Last Chance Saloon

Westerose Village Creek Country Inn

WestlockBest WesternRamada WestlockSouthview Motel

Westlock HotelWestlock Inn & Conference Center

Wetaskiwin Alberta Inn & SuitesBest Western Wayside InnPrairie Breeze Inn RV & CampingSuper 8

Whitecourt Alaska Highway Motel & RV ParkDays Inn & SuitesGreen Gables InnHoliday Inn Express & SuitesLakeview Inns & SuitesRenford InnRoyal Oak InnSuper 8The Kanata

The Ritz Cafe & Motor InnWhitecourt Inn & Suites

Wildwood Wildwood Hotel

Worsley Worsley Gateway Inn

Yellowknife Capital Suites

Youngstown Windmill MotelYoungstown Hotel

Zama CityNoralta Inn West

2707 Ellwood Drive Edmonton, AB T6X 0P7

Alberta Hotel & Lodging Association industry leaderAmr Awad, CHA Holloway Lodging George Marine Radisson Hotel & Suites, Fort McMurray Peter Parmar, Chair, Effective Solutions to HR

Documents