Paris, September 6th 2011 US Hotel Groups Strong at Home

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MKG Hospitality Paris - Londres - Berlin - Nicosie www.mkg-hospitality.comSeptembre 2011

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COMMUNIQUÉ DE PRESSEPRESS RELEASE

US Hotel Groups Strong at HomeUS based hotel groups and brands continue to dominate at home. However, as the local market is the most mature hotel mare, future development growth is being explored abroad, with Europe and Asia the priority.

Paris, September 6th 2011

The US hotel industry continues to be dominated by locally based groups, completely made-up of household and locally developed brands.

According to latest research conducted by industry experts MKG Hospitality, Hilton Hotels remains the number one group in the US with over 486,000 rooms. Making up the top three national groups is Marriott International with over 480,000 rooms and Wyndham Hotel Group with over 455,000. The number one hotel brand in the US is yet again Hampton Inn with almost 171,000 rooms, followed by Best Western with over 165,000 and then Comfort Inns & Comfort Suites with over 160,000.

“The US hotel industry is very much controlled by locally based companies. Indeed, the corporate chain hotel struc-ture was born and perfected in the US, so it is logical that local names have such a strong presence in their own market,” states Director of Development, MKG Hospitality, Vanguelis Panayotis. “However, the US hotel market is fast approaching saturation. Thus, groups are seeking expansion in international markets, exporting their products and concepts.”

In fact, almost two thirds of room stock among the top 12 hotel groups is found right here in the US. Of the top 20 hotel brands, almost three quarters of stock is based here in the US – many brands having little or no presence outside the country. The only exceptions are purely due to acquisitions (and again of US manufactured brands), with InterConti-nental Hotels Group taking over Holiday Inn and Express by Holiday Inn and Accor purchasing Motel 6 (Redd Roof being sold in 2007). After this, you have to go way down the list to find another foreign brand, namely Canadian based Fairmont Raffles and Four Seasons Hotels & Resorts in 25th and 26th position, respectively.

Looking at pipeline growth, US brands are now very much focused abroad. Europe is a prime choice due to being the second most mature hotel market after the US, as well as having ideological and cultural simi-larities therefore better suited to product concepts. Meanwhile, Asia and the Middle East are also hot development markets. There are however many challenges to overcome for US hotel groups seeking expansion to other worldwide markets. For starters, adapting their structure to fit local laws and regu-

Hotel groups Ranking in the USA - August 2011

Rank Group Hotels Rooms1 Hilton Hotels 3 225 486 2962 Marriott International 2 993 480 5063 Wyndham Hotel Group 5 898 455 2594 Choice 4 993 393 5355 IHG 3 119 388 2556 Best Western 2 011 165 1807 Starwood Hotels and Resorts 459 146 7608 Accor 1 081 109 0259 Hyatt Hotels Corp. 334 92 974

10 La Quinta 809 84 94511 Carlson Hospitality Worldwide / Rezidor 594 67 80112 Vantage Hospitality Group 962 59 05613 Harra'S Entertainement 36 42 73614 MGM Mirage 15 40 63515 Red Roof 345 36 57016 Walt Disney Attractions 26 28 00017 Drury Inns Inc. 122 16 93018 America's Best Franchising 220 16 38619 Hospitality International 274 13 24120 Longhouse Hospitality 164 13 20521 AmericInn Motels & Suites 218 11 99022 Kimpton Hotels 56 11 07823 Omni Hotels 40 10 07424 Red Lion Hotels Corporation 45 8 60225 Fairmont Raffles 18 8 56326 Four Seasons Hotels & Resorts 31 8 39627 Millennium & Copthorne Hotels plc 19 7 57728 Loews Hotels 16 7 50829 Aston Hotels And Resorts 26 7 08430 Budget Host International 150 7 00031 Boomerang Hotels 79 6 38132 Shilo Inns 42 4 72133 Dolce International 18 3 48234 Mandarin Oriental Hotel Group 7 1 51735 Viceroy Hotel Group 10 1 35636 Sonesta International Hotels Corp. 3 1 08837 Sol Melia 3 1 06338 Barcelo Hotels 7 1 00039 Warwick Hotels 4 84740 Rosewood Hotels & Resorts 7 82241 Hong Kong and Shanghai Hotels Ltd 3 77142 Coast Hotels & Resorts 22 70443 Quilan Collection 3 62044 The Indian Hotels Company 3 57245 JAL 1 53246 Jumeirah Hotels 1 50947 Adam's Mark Hotels & Resorts 1 48648 Langham Hotels 1 38049 Groupe du Louvre 2 35950 NH Hoteles 1 24251 Orient Express 3 18952 Starhotels SPA 1 17953 Room Mate Hotels 1 13954 Ghm 1 13155 The Marmara Hotels & Residences 1 10956 Vincci Hoteles 1 10057 Aman Resort 2 74

Source: MKG Hospitality Database

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n American supply (number of rooms)n Rest of the world (number of rooms)

Breakdown of American marketshare in the world

MKG Hospitality Paris - Londres - Berlin - Nicosie www.mkg-hospitality.comSeptembre 2011

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METHODOLOGYAbout MKG Group Established in 1985, MKG Group has built a solid reputation for business expertise and substantial know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing valuable analytical and decision-making skills necessary for success.Methodology & Innovation

With a team of over 60 experienced consultants, as well as advanced research and analytical tools and applications, MKG Hospitality provides a unique savoir-faire in Market Research, Consulting, Financial Feasibility Studies and Valuations. mkg-hospitality.com

MKG Hospitality is a global leader in tourism, hotel and catering consulting, with the largest database, representing all segments from budget to upscale hotels. MKG’s market monitoring database, HotelCompSet, contains a sample of over 200 brands and 11,000 corporate chain hotels, representing more than one million rooms. HotelCompSet provides daily, monthly and yearly monitoring of hotel indicators and analyses of its sample. hotelcompset.com

Together with other specialised brands, MKG Qualiting, OlaKala, Worldwide Hospitality Awards, Global Lodging Forum, as well as industry publications HTR Magazine and Hospitality ON http://hospitality-on.com, MKG Group supports investors, hoteliers and key tourism players improve performance, boost productivity and achieve results. www.mkg-group.com

For further information, please contact:

MKG Hospitality Database Department Vanguelis Panayotis MKG Hospitality Tel: +44 (0)20 7624 4030 Tel: +33 1 56 56 87 87 Fax: +44 (0)20 7624 4030 Fax: +33 1 56 56 87 88 [email protected] [email protected]

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lations, as well as consistency with real estate values, hence investment strategies. Then there is existing competition from domestic players that are well represented, especially in Europe.

“The key to success will be how quickly they can reach a critical network size even somewhat similar to what they have in the US. This is especially true for economy and budget brands where such factors are crucial in order to make business sense,” adds Panayotis.

Corporate Hotel Chains Ranking in the USA - August 2011

Rank Brand Group Hotels Rooms1 Hampton Inn Hilton Hotels 1 758 170 9592 Best Western Best Western 2 011 165 1803 Comfort Inns & Comfort Suites Choice 2 058 160 4154 Holiday Inn Express IHG 1 724 146 3125 Marriott Hotels Resorts and Suites Marriott International 357 143 3496 Days Inn of America, Inc. Wyndham Hotel Group 1 668 129 5307 Holiday Inn IHG 674 120 4948 Super 8 Motels Wyndham Hotel Group 1 863 112 0279 Courtyard Marriott International 795 111 634

10 Motel 6 Accor 1 072 105 91011 Hilton Hilton Hotels 259 105 37512 Quality Inns, Hotels, Suites & resorts Choice 1 012 89 18513 La Quinta Inns La Quinta 809 84 94514 Residence Inn Marriott International 595 71 57115 Hyatt Hotels (Inc. Park Hatt, Regency, Grand Hyatt) Hyatt Hotels Corp. 135 67 13816 Sheraton Hotels & Resorts Starwood Hotels and Resorts 176 66 02517 Hilton Garden Inns Hilton Hotels 476 64 48518 Ramada Worldwide Wyndham Hotel Group 530 62 44219 Fairfield Inn and Suites Marriott International 648 58 51020 America Best Value Inn Vantage Hospitality Group 943 56 56721 Doubletree Hotels Hilton Hotels 213 54 46422 Econo Lodge Choice 784 48 72823 Embassy Suites Hilton Hotels 200 48 62524 Crowne Plaza Hotels & Resorts IHG 163 46 54925 Harrah'S Harra'S Entertainement 36 42 73626 Westin Hotels & Resorts Starwood Hotels and Resorts 92 41 13227 MGM Mirage MGM Mirage 15 40 63528 Country Inns & Suites by Carlson Carlson Hospitality Worldwide / Rezidor 462 36 83929 Red Roof Red Roof 345 36 57030 Homewood Suites Hilton Hotels 295 32 48431 SpringHill Suites Marriott International 273 31 96132 Radisson Hotels Worldwide Carlson Hospitality Worldwide / Rezidor 124 29 39533 Sleep Inn Choice 398 28 95734 Candlewood IHG 296 28 93435 Clarion Inns, Hotels, Suites & Resorts Choice 192 28 71136 Howard Johnson International, Inc. Wyndham Hotel Group 335 28 45537 Renaissance Hotels and Resorts Marriott International 78 28 28838 Walt Disney Attractions Walt Disney Attractions 26 28 00039 Travelodge Wyndham Hotel Group 345 23 94340 Microtel Inns Wyndham Hotel Group 301 21 36141 Rodeway Inn Choice 387 21 26142 Hyatt Place Hyatt Hotels Corp. 161 20 43443 Baymont Inn Wyndham Hotel Group 244 20 42044 Staybridge Suites IHG 178 19 44145 TownePlace Suite Marriott International 192 19 32046 Knights Franchise Systems, Inc. Wyndham Hotel Group 312 18 90147 Drury Inns Inc. Drury Inns Inc. 122 16 93048 Wyndham Worldwide Wyndham Hotel Group 62 16 20349 Wingate Inns International, Inc. Wyndham Hotel Group 161 14 63450 Four points Starwood Hotels and Resorts 81 13 26551 AmericInn AmericInn Motels & Suites 218 11 99052 Ritz Carlton Marriott International 39 11 58753 Kimpton Hotels Kimpton Hotels 56 11 07854 Divers ICH IHG 25 10 51355 Omni Hotels Omni Hotels 40 10 07456 InterContinental IHG 23 9 47357 America's Best Inns Suites Hotels America's Best Franchising 106 8 92558 Red Lion Hotels Red Lion Hotels Corporation 45 8 60259 Four Seasons Hotels & Resorts Four Seasons Hotels & Resorts 31 8 39660 The W Hotels Starwood Hotels and Resorts 26 8 28161 Fairmont Hotels& Resorts Fairmont Raffles 17 7 90262 Suburban Extended Stay Choice 64 7 68563 Millennium & Copthorne Millennium & Copthorne Hotels plc 19 7 57764 Loews Hotels Loews Hotels 16 7 508

Ranking of hotel brands in the USA

Breakdown of American marketshare in the world (chains only)

n American supply (number of rooms)n Rest of the world (number of rooms)