LODGING INDUSTRY OVERVIEW

LODGING INDUSTRY OVERVIEW

Randy Smith

CEO

The World

Global Regions – Asia Pacific/AmericasMarket Performance (US Dollars)August 2009 Year-to-Date

Occ (%) ADR RevPARPercent Change from YTD

20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Asia Pacific 58.5 66.5 116.08 142.73 67.90 94.88 -12.0 -18.7 -28.4Central & South Asia 55.1 64.9 155.10 224.62 85.43 145.79 -15.1 -30.9 -41.4Northeastern Asia 55.0 62.7 112.71 135.06 62.04 84.66 -12.2 -16.6 -26.7Southeastern Asia 59.2 70.0 107.12 124.53 63.43 87.14 -15.4 -14.0 -27.2Australia & Oceania 69.4 73.2 120.96 155.11 83.89 113.47 -5.2 -22.0 -26.1

Americas 56.9 63.4 99.64 110.25 56.64 69.85 -10.3 -9.6 -18.9North America 56.7 63.2 98.73 109.08 56.01 68.97 -10.3 -9.5 -18.8Caribbean 65.6 69.9 158.11 189.60 103.76 132.53 -6.1 -16.6 -21.7Central America 57.8 71.5 121.39 126.35 70.19 90.30 -19.1 -3.9 -22.3South America 58.1 65.4 107.00 120.93 62.17 79.05 -11.1 -11.5 -21.4

Global Regions – Europe/Mid East/AfricaMarket Performance (US Dollars)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Europe 60.5 65.9 128.09 164.55 77.47 108.42 -8.2 -22.2 -28.5Eastern Europe 51.0 60.3 110.81 164.97 56.52 99.54 -15.5 -32.8 -43.2Northern Europe 65.2 68.9 120.19 160.69 78.38 110.76 -5.4 -25.2 -29.2Southern Europe 56.3 63.8 134.30 164.28 75.60 104.77 -11.7 -18.2 -27.8Western Europe 60.4 65.2 138.31 169.81 83.48 110.72 -7.4 -18.5 -24.6

Middle East/Africa 61.8 71.0 149.49 154.83 92.39 109.86 -12.9 -3.4 -15.9Middle East 61.9 69.9 197.20 214.84 122.10 150.26 -11.5 -8.2 -18.7Northern Africa 64.6 75.6 85.12 87.61 54.99 66.22 -14.5 -2.8 -17.0Southern Africa 59.0 67.7 119.08 125.65 70.28 85.01 -12.8 -5.2 -17.3

-12

-10

-8

-6

-4

-2

0

2

4

Jan-08 Jul-08 Jan-09 Jul-09

US

Eurozone

BRIC

World – US / Eurozone / BRIC Demand Percent Change – 12 Month Moving AverageJuly 2009 YTD

US / EU in Lockstep; BRIC Falls Hard

-6.0

-8.0

-10.3

-15

-10

-5

0

5

10

15

20


US

Eurozone

BRIC

World – US / Eurozone / BRIC ADR Percent Change (US/BRIC:$ / EU:€)12 Month Moving AverageJuly 2009 YTD

Beijing Olympics Helped

Proj. Inflation Rate 2009:US: 0.7%, Eurozone: 0.5% India: 6.0% China: -0.5%, Brazil: 5%, Russia: 12%

-5.1

--5.5

-12.5

-35

-25

-15

-5

5

15

25


US

EurozoneBRIC

World – US / EU / BRIC ADR Percent Change (US/BRIC:$ / EU:€)July 2009 YTD

Olympics 8/08: +56%

Global Deterioration: 10/08

Stabilization?

Are We Done Yet?

-9.1

-13.0

-24.3

Europe

-10

-8

-6

-4

-2

0

2

4


Eurozone

Non-Eurozone

Eurozone vs. Non EurozoneDemand Percent Change – 12 Month Moving AverageJuly 2009 YTD

Eurozone Demand Fell Earlier / More Sharply

-5.8

-8.0

-20

-15

-10

-5

0

5

10


Eurozone

Non-Eurozone

Eurozone vs. Non EurozoneADR Percent Change – 12 Month Moving AverageJuly 2009 YTD

ADR Deterioration More Pronounced In Non-Eurozone

Proj. Inflation Rate 2009:Eurozone: 0.5% Non-Eurozone: 2.3%

-13.0

-18.6

Europe – Germany / UK / France

Country Rooms

(‘000s)

Supply Growth (YTD 7/09)

Germany 357 +1.0%

UK 417 +2.3%

France 379 +0.5%

-8

-6

-4

-2

0

2

4

6


GermanyUKFrance

Europe – Germany / UK / France*Demand Percent Change – 12 Month Moving AverageJuly 2009 YTD

*France excl. Accor

Same Inflection Point – Same Direction

-3.0

--3.8

-6.5

-6

-4

-2

0

2

4

6

8

10

12

14


GermanyUKFrance

Europe – Germany / UK / France*ADR Percent Change (D/F: €, UK: £) – 12 Month Moving AverageJuly 2009 YTD

*France excl. Accor

Rates Declined only in 2009Proj. Inflation Rate 2009:D: 0.3% UK: 1.9% F: 0.3%

-2.7-3.8

-4.6

EuropeMarket Performance (Local Currency)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Amsterdam 68.8 76.6 118.00 137.90 81.17 105.60 -10.2 -14.4 -23.1Athens 55.7 66.1 122.48 139.97 68.26 92.54 -15.7 -12.5 -26.2Barcelona 63.2 69.8 114.11 136.17 72.08 95.07 -9.5 -16.2 -24.2Berlin 66.1 67.6 76.90 83.81 50.79 56.63 -2.2 -8.3 -10.3Budapest 51.5 63.6 19695.69 19394.40 10133.65 12331.07 -19.1 1.6 -17.8Copenhagen 61.7 68.1 796.23 881.63 491.47 600.62 -9.4 -9.7 -18.2Dublin 63.3 69.3 88.38 106.61 55.98 73.84 -8.6 -17.1 -24.2Frankfurt 56.2 59.6 104.50 110.20 58.78 65.65 -5.6 -5.2 -10.5Geneva 59.2 70.6 348.37 380.35 206.22 268.37 -16.1 -8.4 -23.2Hamburg 70.2 71.7 89.80 94.26 63.04 67.62 -2.1 -4.7 -6.8Helsinki 59.3 66.0 99.96 107.41 59.25 70.89 -10.2 -6.9 -16.4Lisbon 57.3 63.6 80.65 89.04 46.23 56.63 -9.9 -9.4 -18.4London 79.2 80.1 112.41 121.42 88.98 97.27 -1.2 -7.4 -8.5Madrid 54.5 64.7 91.51 112.41 49.89 72.70 -15.7 -18.6 -31.4Munich 63.2 67.7 87.19 100.33 55.09 67.95 -6.7 -13.1 -18.9Moscow 56.1 64.7 6476.26 8071.38 3631.49 5224.92 -13.4 -19.8 -30.5Oslo 61.8 67.6 938.03 978.21 579.41 661.34 -8.6 -4.1 -12.4Paris 73.2 78.1 167.30 182.68 122.53 142.75 -6.3 -8.4 -14.2Prague 55.4 64.4 2058.00 2346.54 1140.58 1510.13 -13.9 -12.3 -24.5Rome 61.8 64.9 136.91 150.24 84.58 97.46 -4.8 -8.9 -13.2Stockholm 66.1 69.2 1027.34 1088.05 679.12 752.63 -4.4 -5.6 -9.8Tel Aviv 62.1 79.3 892.51 781.04 554.49 619.49 -21.7 14.3 -10.5Venice 56.6 60.0 253.21 289.81 143.30 173.80 -5.6 -12.6 -17.5Vienna 62.3 69.1 90.81 105.98 56.57 73.26 -9.9 -14.3 -22.8Zurich 66.5 73.2 214.73 258.97 142.69 189.48 -9.2 -17.1 -24.7

Note – No,I Do Not Expect You To Read This! (particularly Don)

EuropeMarket Performance (US Dollars)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Amsterdam 68.8 76.6 161.19 212.63 110.87 162.82 -10.2 -24.2 -31.9Athens 55.7 66.1 167.39 216.07 93.29 142.86 -15.7 -22.5 -34.7Barcelona 63.2 69.8 155.75 209.91 98.39 146.55 -9.5 -25.8 -32.9Berlin 66.1 67.6 104.79 129.19 69.21 87.29 -2.2 -18.9 -20.7Budapest 51.5 63.6 94.91 121.63 48.83 77.33 -19.1 -22.0 -36.9Copenhagen 61.7 68.1 146.12 181.90 90.19 123.92 -9.4 -19.7 -27.2Dublin 63.3 69.3 120.52 164.19 76.33 113.72 -8.6 -26.6 -32.9Frankfurt 56.2 59.6 141.06 169.47 79.34 100.96 -5.6 -16.8 -21.4Geneva 59.2 70.6 314.02 364.73 185.89 257.35 -16.1 -13.9 -27.8Hamburg 70.2 71.7 122.33 145.25 85.87 104.21 -2.1 -15.8 -17.6Helsinki 59.3 66.0 136.18 165.11 80.71 108.97 -10.2 -17.5 -25.9Lisbon 57.3 63.6 109.99 137.39 63.04 87.37 -9.9 -19.9 -27.8London 79.2 80.1 173.91 238.53 137.67 191.08 -1.2 -27.1 -28.0Madrid 54.5 64.7 123.79 173.50 67.49 112.21 -15.7 -28.7 -39.9Munich 63.2 67.7 118.55 154.29 74.90 104.49 -6.7 -23.2 -28.3Moscow 56.1 64.7 196.43 339.29 110.15 219.64 -13.4 -42.1 -49.9Oslo 61.8 67.6 143.93 187.98 88.90 127.08 -8.6 -23.4 -30.0Paris 73.2 78.1 228.23 281.30 167.16 219.81 -6.3 -18.9 -24.0Prague 55.4 64.4 105.37 145.53 58.40 93.66 -13.9 -27.6 -37.7Rome 61.8 64.9 187.25 232.23 115.68 150.65 -4.8 -19.4 -23.2Stockholm 66.1 69.2 130.55 177.82 86.30 123.00 -4.4 -26.6 -29.8Tel Aviv 62.1 79.3 223.02 224.73 138.56 178.25 -21.7 -0.8 -22.3Venice 56.6 60.0 349.85 447.31 197.99 268.25 -5.6 -21.8 -26.2Vienna 62.3 69.1 124.05 163.73 77.28 113.18 -9.9 -24.2 -31.7Zurich 66.5 73.2 193.10 247.99 128.32 181.44 -9.2 -22.1 -29.3

Europe - Pipeline

CountryIn Construction

Rooms% Of Exist.

SupplyTotal Active

Pipeline Rooms% Of Exist.

Supply

Czech Republic 715 2.1% 1,551 4.5%

Denmark 1,302 4.1% 1,302 4.1%

Germany 6,633 1.9% 18,747 5.2%

Hungary 851 2.0% 1,495 3.6%

Latvia 412 5.1% 412 5.1%

Poland 710 2.6% 1,852 6.8%

Romania 186 1.6% 1,332 11.2%

Russia 5,692 8.2% 11,736 17.0%

Slovakia 710 9.5% 960 12.8%

United Kingdom 8,908 2.1% 18,202 4.4%

Middle East

-2

0

2

4

6

8

10

12

14

16


Saudi Arabia

UAE

Qatar

Saudi Arabia vs UAE vs QatarDemand Percent Change – 12 Month Moving AverageJuly 2009 YTD

Qatar Used To Hold Up Better

2.3

1.0

-0.9

-10

-5

0

5

10

15

20

25


Saudi ArabiaUAEQatar

Saudi Arabia (SAR) vs UAE (AED) vs Qatar (QAR)ADR Percent Change – 12 Month Moving AverageJuly 2009 YTD

Strong ADR Growth - But is UAE The Future?Proj. Inflation Rate 2009:Saudi Arabia: 5.1%

12.0

10.6

-7.8

Middle East Pipeline

CountryIn Construction

Rooms% Of Exist.

SupplyTotal Active

Pipeline Rooms% Of Exist.

Supply

Bahrain 4,169 75% 5,299 95%

Jordan 3,942 37% 5,393 51%

Kuwait 2,616 45% 2,866 49%

Oman 924 17% 2,643 50%

Qatar 4,177 65% 5,225 81%

Saudi Arabia 6,693 18% 11,539 32%

Syria 393 5% 1,158 16%

United Arab Emirates 33,717 50% 58,003 86%

Middle East / AfricaMarket Performance (Local Currency)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Abu Dhabi 75.3 82.4 1059.81 961.38 798.11 792.03 -8.6 10.2 0.8Amman 60.8 69.2 105.88 92.43 64.38 63.92 -12.1 14.5 0.7Beirut 70.4 50.1 316874.57 252428.99 223150.88 126452.42 40.6 25.5 76.5Cairo 64.2 76.6 703.54 720.10 451.99 551.26 -16.1 -2.3 -18.0Cape Town 57.7 65.0 1001.77 938.75 578.23 610.05 -11.2 6.7 -5.2Dubai 68.3 80.0 842.53 1104.29 575.64 883.59 -14.6 -23.7 -34.9Istanbul 63.6 73.4 292.62 291.77 186.23 214.09 -13.3 0.3 -13.0Jeddah 70.3 69.7 667.05 574.09 468.86 400.13 0.8 16.2 17.2Johannesburg/Pretoria 61.2 74.2 864.23 793.02 529.26 588.51 -17.5 9.0 -10.1Muscat 52.3 69.5 102.33 90.20 53.56 62.73 -24.7 13.4 -14.6Riyadh 60.5 77.7 946.64 891.50 572.38 692.34 -22.1 6.2 -17.3

Middle East / AfricaMarket Performance (US Dollars)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Abu Dhabi 75.3 82.4 288.44 261.70 217.22 215.60 -8.6 10.2 0.8Amman 60.8 69.2 148.58 129.67 90.35 89.67 -12.1 14.6 0.8Beirut 70.4 50.1 207.91 165.34 146.42 82.82 40.6 25.8 76.8Cairo 64.2 76.6 124.75 132.04 80.14 101.08 -16.1 -5.5 -20.7Cape Town 57.7 65.0 112.64 121.95 65.02 79.25 -11.2 -7.6 -18.0Dubai 68.3 80.0 229.31 300.60 156.67 240.52 -14.6 -23.7 -34.9Istanbul 63.6 73.4 185.53 237.52 118.07 174.29 -13.3 -21.9 -32.3Jeddah 70.3 69.7 177.66 152.87 124.88 106.55 0.8 16.2 17.2Johannesburg/Pretoria 61.2 74.2 100.40 103.19 61.49 76.58 -17.5 -2.7 -19.7Muscat 52.3 69.5 264.67 233.63 138.55 162.48 -24.7 13.3 -14.7Riyadh 60.5 77.7 252.14 237.41 152.46 184.37 -22.1 6.2 -17.3

Americas/Asia Pacific Markets

AmericasMarket Performance (Local Currency)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Alberta 60.6 69.1 138.02 143.95 83.67 99.44 -12.2 -4.1 -15.9Boston 61.3 67.7 136.10 151.65 83.42 102.66 -9.5 -10.3 -18.7Buenos Aires 50.4 68.2 513.99 490.48 259.18 334.65 -26.1 4.8 -22.6Chicago 56.3 65.0 111.02 130.09 62.52 84.52 -13.3 -14.7 -26.0Los Angeles 65.2 74.6 115.69 130.27 75.43 97.24 -12.7 -11.2 -22.4Manitoba/Saskatchewan 67.9 69.5 112.12 107.01 76.11 74.41 -2.4 4.8 2.3Mexico City 48.5 62.3 1482.69 1387.95 718.53 865.28 -22.3 6.8 -17.0Miami 66.6 74.9 145.82 167.88 97.14 125.82 -11.1 -13.1 -22.8Montreal 58.3 62.9 125.98 135.17 73.39 85.05 -7.4 -6.8 -13.7New York 75.0 83.0 194.23 259.44 145.66 215.39 -9.7 -25.1 -32.4Ottawa 67.3 71.1 133.90 134.96 90.13 95.93 -5.3 -0.8 -6.0Rio de Janeiro 64.6 61.8 314.40 282.95 203.10 174.95 4.5 11.1 16.1San Francisco 70.8 76.9 130.15 154.42 92.15 118.69 -7.9 -15.7 -22.4San Juan 74.7 76.5 175.38 200.35 130.98 153.23 -2.3 -12.5 -14.5Santiago 58.4 74.5 78909.21 66878.50 46045.59 49819.15 -21.7 18.0 -7.6Sao Paulo 58.6 65.6 176.57 165.07 103.54 108.29 -10.6 7.0 -4.4Toronto 62.0 68.4 128.56 142.66 79.65 97.60 -9.4 -9.9 -18.4Vancouver 66.1 73.6 137.38 146.28 90.77 107.71 -10.3 -6.1 -15.7Washington 67.3 69.8 146.24 151.67 98.44 105.93 -3.6 -3.6 -7.1

AmericasMarket Performance (US Dollars)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Alberta 60.6 69.1 118.93 141.72 72.09 97.90 -12.2 -16.1 -26.4Boston 61.3 67.7 136.10 151.65 83.42 102.66 -9.5 -10.3 -18.7Buenos Aires 50.4 68.2 138.88 157.66 70.03 107.57 -26.1 -11.9 -34.9Chicago 56.3 65.0 111.02 130.09 62.52 84.52 -13.3 -14.7 -26.0Los Angeles 65.2 74.6 115.69 130.27 75.43 97.24 -12.7 -11.2 -22.4Manitoba/Saskatchewan 67.9 69.5 96.35 105.52 65.40 73.38 -2.4 -8.7 -10.9Mexico City 48.5 62.3 106.71 132.60 51.71 82.67 -22.3 -19.5 -37.4Miami 66.6 74.9 145.82 167.88 97.14 125.82 -11.1 -13.1 -22.8Montreal 58.3 62.9 108.84 133.08 63.41 83.74 -7.4 -18.2 -24.3New York 75.0 83.0 194.23 259.44 145.66 215.39 -9.7 -25.1 -32.4Ottawa 67.3 71.1 114.99 133.25 77.40 94.72 -5.3 -13.7 -18.3Rio de Janeiro 64.6 61.8 147.75 169.71 95.45 104.93 4.5 -12.9 -9.0San Francisco 70.8 76.9 130.15 154.42 92.15 118.69 -7.9 -15.7 -22.4San Juan 74.7 76.5 175.38 200.35 130.98 153.23 -2.3 -12.5 -14.5Santiago 58.4 74.5 134.66 140.54 78.58 104.69 -21.7 -4.2 -24.9Sao Paulo 58.6 65.6 84.76 99.57 49.70 65.32 -10.6 -14.9 -23.9Toronto 62.0 68.4 110.51 140.76 68.47 96.30 -9.4 -21.5 -28.9Vancouver 66.1 73.6 119.02 143.98 78.64 106.02 -10.3 -17.3 -25.8Washington 67.3 69.8 146.24 151.67 98.44 105.93 -3.6 -3.6 -7.1

Asia / PacificMarket Performance (Local Currency)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Bali 70.4 78.1 1266293.51 1025182.50 891626.75 800532.04 -9.8 23.5 11.4Bangkok 50.8 71.3 3228.61 3580.27 1641.55 2552.61 -28.7 -9.8 -35.7Beijing 48.2 59.2 629.72 1171.75 303.40 693.40 -18.6 -46.3 -56.2Brisbane 75.8 79.8 167.89 178.28 127.28 142.25 -5.0 -5.8 -10.5Hong Kong SAR 70.0 80.9 1212.53 1451.57 848.64 1173.98 -13.5 -16.5 -27.7Jakarta 62.1 70.4 744433.31 665428.78 462008.96 468691.49 -11.9 11.9 -1.4Kuala Lumpur 63.1 71.2 341.20 347.12 215.34 247.11 -11.3 -1.7 -12.9Manila 66.1 73.6 5159.66 5210.55 3411.33 3835.84 -10.2 -1.0 -11.1Melbourne 74.1 78.5 176.74 181.09 130.91 142.08 -5.6 -2.4 -7.9Mumbai 57.2 66.9 9043.38 12247.42 5173.25 8192.57 -14.5 -26.2 -36.9New Delhi 60.0 73.2 8671.44 11776.96 5204.88 8619.79 -18.0 -26.4 -39.6Osaka 70.8 78.7 11348.30 12028.66 8036.21 9464.19 -10.0 -5.7 -15.1Phuket 53.7 68.4 3884.08 4531.68 2084.37 3097.61 -21.5 -14.3 -32.7Seoul 78.6 75.1 172147.92 169147.86 135234.08 126950.27 4.7 1.8 6.5Shanghai 47.1 54.7 725.10 956.26 341.30 523.34 -14.0 -24.2 -34.8Sydney 75.9 79.7 169.36 186.29 128.54 148.47 -4.8 -9.1 -13.4Tokyo 68.2 75.3 20868.62 20744.94 14223.47 15614.72 -9.4 0.6 -8.9

Asia / PacificMarket Performance (US Dollars)August 2009 Year-to-Date


20082009 2008 2009 2008 2009 2008 Occ ADR RevPAR

Bali 70.4 78.1 118.66 111.39 83.55 86.98 -9.8 6.5 -3.9Bangkok 50.8 71.3 92.06 110.24 46.81 78.59 -28.7 -16.5 -40.4Beijing 48.2 59.2 92.03 168.96 44.34 99.98 -18.6 -45.5 -55.7Brisbane 75.8 79.8 126.22 165.13 95.69 131.76 -5.0 -23.6 -27.4Hong Kong SAR 70.0 80.9 156.41 186.18 109.47 150.57 -13.5 -16.0 -27.3Jakarta 62.1 70.4 68.98 72.28 42.81 50.91 -11.9 -4.6 -15.9Kuala Lumpur 63.1 71.2 95.05 106.85 59.99 76.06 -11.3 -11.0 -21.1Manila 66.1 73.6 106.78 121.49 70.60 89.44 -10.2 -12.1 -21.1Melbourne 74.1 78.5 130.95 167.43 96.99 131.36 -5.6 -21.8 -26.2Mumbai 57.2 66.9 181.60 297.25 103.88 198.83 -14.5 -38.9 -47.8New Delhi 60.0 73.2 173.79 286.97 104.31 210.04 -18.0 -39.4 -50.3Osaka 70.8 78.7 119.38 114.27 84.54 89.91 -10.0 4.5 -6.0Phuket 53.7 68.4 110.35 141.12 59.22 96.46 -21.5 -21.8 -38.6Seoul 78.6 75.1 129.16 167.66 101.46 125.83 4.7 -23.0 -19.4Shanghai 47.1 54.7 105.97 137.06 49.88 75.01 -14.0 -22.7 -33.5Sydney 75.9 79.7 125.14 172.40 94.98 137.40 -4.8 -27.4 -30.9Tokyo 68.2 75.3 219.42 197.27 149.55 148.48 -9.4 11.2 0.7

Census and Sample Data2009

Hotels2009

RoomsCensus Sample Census Sample

Asia Pacific 13,037 2,187 1,859,253 540,093Central & South Asia 1,397 279 124,184 39,417Northeastern Asia 4,556 918 1,048,354 285,027Southeastern Asia 2,634 395 408,152 113,583Australia & Oceania 4,450 595 278,563 102,066

Americas 66,258 30,307 5,998,838 3,703,298North America 60,744 29,660 5,438,981 3,570,713Caribbean 2,307 176 240,352 52,308Central America 581 64 39,881 12,320South America 2,626 407 279,624 67,957

Europe 37,768 6,220 3,079,300 930,843Eastern Europe 3,127 361 304,952 74,809Northern Europe 10,238 2,742 728,648 352,627Southern Europe 10,474 1,416 1,048,797 234,737Western Europe 13,929 1,701 996,903 268,670

Middle East/Africa 3,930 949 608,008 195,185Middle East 1,460 439 237,406 101,285Northern Africa 1,155 132 245,792 43,850Southern Africa 1,315 378 124,810 50,050

United States

-8

-6

-4

-2

0

2

4

6

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Supply % Change

Demand % Change

Total US - Room Supply & Demand Percent ChangeTwelve Month Moving Average – 1989 to August 2009

2008 Smith Travel Research, Inc.

3.1%

- 6.6%

-1.1%

- 4.8%

-20

-15

-10

-5

0

5

10

15

2001 2002 2003 2004 2005 2006 2007 2008 2009

Supply % Change

Demand % Change

Total United StatesRoom Supply/Demand Percent ChangeMonthly Year-Over-Year 2001 – August 2009

3.2

-6.9

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2003 2004 2005 2006 2007 2008 JFMAMJJA

Total United StatesRoom Supply Percent ChangeJan 2003 – August 2009

3.2

-10

-5

0

5

10

2003 2004 2005 2006 2007 2008 JFMAMJJA

Total United StatesRoom Demand Percent ChangeJan 2003 – August 2009

-6.9

70

75

80

85

90

2001 2003 2005 2007 2009

Total United StatesMonthly Room Demand (In Millions) – Seasonally AdjustedJanuary 2001 – to Aug 2009


78.6

-12-10-8-6-4-202468

10

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Occ % Chg

ADR % Chg

Total US – Occupancy & ADR Percent ChangeTwelve Month Moving Average – 1989 to August 2009

-3.4%

-6.8%

-9.4%

-6.3%-4.7%

0.1%

-20

-15

-10

-5

0

5

10

15

2001 2002 2003 2004 2005 2006 2007 2008 2009

ADR % Chg

Occupancy % Chg

Total United StatesOccupancy / ADR Percent ChangeMonthly Year-Over-Year 2001 – August 2009

Occ -9.9

-ADR -10.1

-15

-10

-5

0

5

10

2003 2004 2005 2006 2007 2008 JFMAMJJA

Total United StatesOccupancy Percent ChangeJan 2003 – August 2009

-9.9

70

80

90

100

110

2001 2003 2005 2007 2009

Seas Adj

Total United StatesMonthly ADR – Seasonally Adjusted January 2001 – to Aug 2009


$95.86

$106.69

-15

-10

-5

0

5

10

2003 2004 2005 2006 2007 2008 JFMAMJJA

Total United StatesRoom Rate Percent ChangeJan 2003 – August 2009

-10.1

-20

-15

-10

-5

0

5

10

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

RevPAR % Chg

-2.7%

Total US - RevPAR Percent ChangeTwelve Month Moving Average – 1989 to August 2009


-10.5%-15.1%

-25

-20

-15

-10

-5

0

5

10

15

20

2003 2004 2005 2006 2007 2008 JFMAMJJA

Total United StatesRevPAR Percent ChangeJan 2003 – August 2009

-19.0

-10.3

2.5

-1.8

-4.2

-1.8

2.6 3.2

-9.0-7.4

-18.3-20

-15

-10

-5

0

5

10

Supply Demand Occ ADR RevPAR

2008 Annual YTD 2009

Total US - Key Performance Indicators Percent ChangeFull Year 2008 / August YTD

-14.4

-9.1

-20.8

-12.8

-6.5

-8.5

-25

-15

-5

Occ ADR RevPAR

Weekday Weekend

Total United StatesWeekday / Weekend Percent ChangeSeptember 12th 2009 YTD

Weekends = Friday / Saturday 2009 Smith Travel Research, Inc.

-16

-14

-12

-10

-8

-6

-4

-2

0

Occupancy

ADR

Total United States28 Day Moving Average - Occupancy & ADR % ChangeJan 1, 2009 – Sept 26, 2009


1/3/09 9/26/09

Group vs. Transient

Performance

-5.0

-23.1

-16.1

-4.6

-25

-20

-15

-10

-5

0

Occupancy ADR

WeekdayWeekend

Group - Occupancy / ADR PerformanceWeekday / WeekendAugust 2009 YTD


-16.0

-6.3

1.6

-16.0

-20

-12

-4

4

Occupancy ADR

WeekdayWeekend

Transient - Occupancy / ADR PerformanceWeekday / WeekendAugust 2009 YTD


-30

-20

-10

0

10

20

1/31/08

Group Demand

Transient Demand

9/12//09

Total United States28 Day Moving Average Group & Transient Demand % ChangeJan 31, 2008 – September 12th, 2009

-20

-10

0

10

1/31/08

Group ADR

Transient ADR

9/12/09

Total United States28 Day Moving Average Group & Transient ADR % ChangeJan 31, 2008 – September 12th, 2009

125

150

175

200

1/31/08

Group ADR

Transient ADR

9/12/09

Total United States28 Day Moving Average Group & Transient Absolute ADRJan 31, 2008 – September 12th, 2009

Chain ScalePerformance

8.9

4.9

9.1

-1.5

7.2

1.3

-4.9 -5.2

-2.1

-12.8

-4.7

-8.6

-20

-15

-10

-5

0

5

10

15

Luxury UpperUpscale

Upscale Mid w F&B Mid wo F&B Economy

SupplyDemand

Chain ScalesSupply/Demand Percent ChangeAugust 2009 YTD

-11.4

-5.9

-11.1-9.7

-11.5-10.2 -9.8

-12.6

-5.7

-16.8

-9.9

-5.0

-20

-15

-10

-5

0

Luxury UpperUpscale


OccupancyADR

Chain ScalesOccupancy/ADR Percent ChangeAugust 2009 YTD

-16.6

-20.9

-16.0-17.8

-9.4

-14.0

-20.0

-15.5

-19.1

-27.3

-15.1

-11.8

-30

-25

-20

-15

-10

-5

0

Luxury UpperUpscale


RevPARRoom Revenue

Chain ScalesRevPAR/Room Revenue Percent ChangeAugust 2009 YTD

Key Market

Performance

0.5

0.5

1.6

1.7

1.7

2.2

3.2

3.3

3.8

3.9

3.9

4.6

7.0

2.7

-0.3

-3 -1 1 3 5 7 9

Oahu Island, HI

San Francisco/San Mateo, CA

Orlando, FL

Philadelphia, PA-NJ

Atlanta, GA

Boston, MA

Los Angeles-Long Beach, CA

Dallas, TX

Total United States

Minneapolis-St Paul, MN-WI

Chicago, IL

Washington, DC-MD-VA

San Diego, CA

New York, NY

Phoenix, AZ

Key MarketsRoom Supply Percent ChangeAugust 2009 YTD

-10.3

-10.0

-9.4

-9.4

-8.5

-8.0

-7.9

-7.5

-7.4

-6.4

-6.1

-5.5

0.2

-10.7

-11.4

-15 -10 -5 0 5

Atlanta, GA


Dallas, TX

Chicago, IL

Orlando, FL


Phoenix, AZ

San Diego, CA

Boston, MA


Total United States

Oahu Island, HI

Philadelphia, PA-NJ

New York, NY


Key MarketsRoom Demand Percent ChangeAugust 2009 YTD

-12.9

-12.7

-12.7

-12.3

-11.5

-10.3

-9.9

-9.7

-9.5

-7.9

-7.6

-6.1

-3.6

-13.3

-14.4

-20 -15 -10 -5 0 5

Phoenix, AZ

Chicago, IL

Atlanta, GA

Dallas, TX



San Diego, CA

Total United States

Orlando, FL

New York, NY

Boston, MA


Philadelphia, PA-NJ

Oahu Island, HI


Key MarketsOccupancy Percent ChangeAugust 2009 YTD

-15.7

-15.2

-14.7

-13.1

-11.9

-11.2

-10.3

-9.0

-9.0

-7.8

-7.8

-3.6

-13.0

-9.8

-25.1

-30 -20 -10 0

New York, NY


Phoenix, AZ

Chicago, IL

San Diego, CA

Oahu Island, HI

Orlando, FL


Boston, MA

Philadelphia, PA-NJ


Total United States

Dallas, TX

Atlanta, GA


Key MarketsADR Percent ChangeAugust 2009 YTD

-27.4

-26.0

-23.1

-22.4

-22.4

-20.6

-20.2

-19.7

-19.5

-18.7

-18.4

-18.3

-16.6

-7.1

-32.4

-40 -30 -20 -10 0

New York, NY

Phoenix, AZ

Chicago, IL

San Diego, CA



Orlando, FL


Atlanta, GA

Dallas, TX

Boston, MA

Oahu Island, HI

Total United States

Philadelphia, PA-NJ


Key 15 MarketsRevPAR Percent ChangeAugust 2009 YTD

U.S. Lodging Industry Projections

2.9

-1.5

2.7

3.4

(2.00)

(1.00)

0.00

1.00

2.00

3.00

4.00

2008 2009 2010 2011

Global GDP Forecast

The Future Looks Bright(er)Source: E-Forecasting

Total United StatesActive Development Pipeline - RoomsChange From Last Year

Source: STR / TWR / Dodge Construction Pipeline

PhaseAugust 2009

August 2008 Difference % Change

In Construction 130,471 195,947 -65,476 -33.4%

Final Planning 70,811 110,553 -39,742 -35.9%

Planning 274,239 353,290 -79,051 -22.4%

Active Pipeline 475,521 659,790 -184,269 -27.9%

Pre-Planning 114,986 144,517 -29,531 -20.4%

Total 590,507 804,307 -213,800 -26.6%

Total United StatesRooms In Construction by Scale – In Thousands August 2009

5.712.8

34.7

43

95

20.3

0

10

20

30

40

50

60

Luxury Upper Upscale Upscale Mid w F&B Mid w/o F&B Economy Unaffiliated


Top 10 Brands in the Active PipelineAugust 2009Brand Rooms -------------------------------------------------------------------------------------------Hampton Inn* 33,028Holiday Inn Express 32,460 Holiday Inn 20,782 Courtyard 16,830Hilton Garden Inn 15,816Candlewood Suites 14,889Residence Inn 13,218 Fairfield Inn 13,160SpringHill Suites 13,143 Staybridge Suites 11,185

* Includes Inns and Inns & Suites


Markets with Most Rooms In-ConstructionAugust 2009

Market # Rooms % Existing Supply

New York 11,921 13.2

Las Vegas 7,011 4.4

Houston 4,681 6.9

Washington, DC 4,064 4.0

Orlando 3,563 3.1

Phoenix 3,288 5.6

Atlanta 3,204 3.4


0.21.3 1.31.9

3.01.8

1.3

2.6

-1.8

-5.5

0.51.0

-8

-4

0

4

8

2006 2007 2008 2009P 2010P 20 Yr Average

Supply % Chg

Demand % Chg

Total United StatesSupply/Demand Percent Change2003 – 2010P

-10

-5

0

5

10

2003 2004 2005 2006 2007 2008 JASOND

Total United StatesRoom Demand Percent ChangeJan 2003 – June 2009 / July – December Forecast


-8.4

0.4

-0.6-0.2

-4.2

-10

-5

0

5

2006 2007 2008 2009P 2010P

Total United StatesOccupancy Percent Change2003 – 2010P

20 Year Average: -0.6%

Total United StatesOccupancy Percent2003 – 2010P

63.3 63.1

60.4

55.4 55.1

50

60

70

2006 2007 2008 2009P 2010P

2.5

-9.7

7.5

-3.4

6.1

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

2006 2007 2008 2009P 2010P

Total United StatesADR Percent Change2003 – 2010P

20 Year Average: 3.5%

86.41 91.16 104.08 106.72 96.43 93.1684.0785.30 98.0082.9682.82

$87.73$89.11

$91.15

$93.57

$96.74

$99.86

$105.90$107.81$106.65

$85.30

$102.71

80

90

100

110

Nominal ADRYr 2000, Grown by CPI

If year 2000 ADR had increased by CPI each year…

Total US Room RatesActual vs. Inflation Adjusted2000 – 2010E

7.8

-4.0

-17.1

5.7

-1.8

8.57.9

0.5

-20

-15

-10

-5

0

5

10

2003 2004 2005 2006 2007 2008 2009P 2010P

Total United StatesRevPAR Percent Change2003 – 2010P

20 Year Average: 2.9%

-0.6

-9.7

-5.5

-8.4

-17.1

3.01.8

-3.4

1.3

-4.0

-20

-15

-10

-5

0

5

10

Supply Demand Occ ADR RevPAR

2009 F 2010 F

Total United StatesKey Performance Indicators Percent ChangeFull Year 2009 2010 Forecast

STR Chain Scale Forecast

2009 2010Segment RevPar Chg RevPar Chg

Luxury -25.0 / -28.0 -7.0 / -10.0

Upper Upscale -18.0 / -21.0 -1.0 / -4.0

Upscale -16.0 / -19.0 -5.0 / -8.0

Midscale with F&B -12.5 / -15.5 -3.0 / -6.0

Midscale without F&B -10.5 / -13.5 +1.0 / -2.0

Economy -13.0 / -16.0 Flat / -3.0

Forecast produced August 2009

Total US Industry Consecutive Quarterly DeclinesKey Indicators


1990/1991

2001/2002

Current(Q2-09)

Estimate 2008/10

Demand 3 5 6 9

Occupancy 7 6 7 11

ADR 0 5 3 9

RevPAR 5 5 4 9

Room Revenue 2 5 4 7

Takeaways

• Decline is global

• Supply growth still an issue

• Demand declines may be near bottom

• ADR weakness continues

• “Less Worse” 2H 2009

• Moderate improvement 2010

• Meaningful growth anticipated 2011

For a copy of this presentation, please go to:

www.HotelNewsNow.com

Click on “Industry Presentations”

3

-4.5

-7.3

2

0.2

-1.8

1.7

2.6

0.91.3

3

1.7

-0.8

-3.4

2.72.4

-3.3

-1.0

-10

-5

0

5

Supply Demand Occupancy

Total United StatesSupply, Demand & Occupancy ForecastQ3 2009 – Q4 2010


-11

-17.5

-15

-4.4

-6.1

-4.2

-2.2-1.3

0.4

-1.5

0.2

1.5

-13.0

-10.6-9.9

-5.6-6.5

-8.7

-20

-15

-10

-5

0

5

ADR RevPar Revenue

Total United StatesADR, RevPar and Room Revenue ForecastQ3 2009 – Q4 2010


U.S. Economic OutlookBlue Chip Economic Indicators – July 2009

2008 2009F 2010F

Real GDP +1.1% -2.6% +2.0%

CPI +4.0% -0.6% +1.8%

Corporate Profits -8.5% -12.4% +6.7%

Disp Personal Income +1.1% +2.3% +1.6%

Unemployment Rate 5.8% 9.3% 9.9%

-35

-25

-15

-5

5

15

25

35

1/31/08

Group Revenue

Transient Revenue

8/15/09

Total United States28 Day Moving Average Group & Transient Revenue % ChangeJan 31, 2008 – September 12th, 2009

Europe – Scandinavia / Baltics

Country Rooms

(‘000s)

Supply Growth (YTD 7/09)

Scandinavia 104 +1.6%

Baltics 10 +5.9%

-8

-6

-4

-2

0

2

4

6


Scandinavia

Baltics

Europe – Scandinavia / BalticsDemand Percent Change – 12 Month Moving AverageJune 2009 YTD

Sharp Demand Decline In The Baltics

-15

-10

-5

0

5

10


Scandinavia

Baltics

Europe – Scandinavia / BalticsADR Percent Change (€) – 12 Month Moving AverageJune 2009 YTD

Baltics: No ADR Growth in 18 months

LODGING INDUSTRY OVERVIEW

Documents

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ytdus eu

lockstep bric

ytdeurozone demand