US LODGING INDUSTRY OVERVIEW

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US LODGING INDUSTRY OVERVIEW
Mark V. LomannoPresidentSMITH TRAVEL RESEARCH
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Total United StatesRoom Supply/Demand Percent
ChangeTwelve Month Moving Average 1989 to
March 2008
5.1
4.0
4.2
1.6
1.1
0.6
- 4.8
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Total United StatesOccupancy/ADR Percent
ChangeTwelve Month Moving Average 1989 to
March 2008
7.6
6.8
5.5
-0.6
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Total United StatesRoom Rate Percent ChangeJan
2003 March 2008
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Total United StatesRevPAR Percent ChangeTwelve
Month Moving Average 1989 to March 2008
June 06 9.3
Feb 01 6.5
4.9
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Total United StatesQuarterly RevPar Percent
Change
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U.S. IndustryWeekday/Weekend Occupancy
ChangeNovember 2007 February 2008
Weekdays Sunday - Thursday
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Total U.S.Occupancy and ADR Percent ChangeYTD
through 4/19
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Pennsylvania - Key StatisticsDecember 2007 YTD

• Change
• Hotels 1,368 1.5
• Room Supply 128k 1.7
• Room Demand 79k 2.7
• Occupancy 62.1 1.0
• A.D.R. 100.46 6.1
• RevPAR 62.39 7.1
• Room Revenue 2.9B 9.0

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Pennsylvania - Key StatisticsQ1 2008

• Change
• Daily Room Supply 129.3k 2.1
• Daily Room Demand 66.6k 0.0
• Occupancy 51.5 - 2.0
• A.D.R. 97.79 4.7
• RevPAR 50.38 2.5
• Room Revenue 586mm 4.7

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PennsylvaniaKey Performance Indicators Percent
ChangeYTD March
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Occupancy Percent Pennsylvania MarketsYTD March
2008
43.9
49.3
52.6
51.5
52.6
59.2
39.4
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Occupancy Percent Change Pennsylvania MarketsYTD
March 2008
-0.3
0.4
-0.3
-0.5
1.5
-6.2
4.9
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ADR () Pennsylvania MarketsYTD March 2008
73.74
98.42
81.23
81.83
95.27
119.54
76.91
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ADR Percent Change Pennsylvania MarketsYTD March
2008
5.9
-3.1
6.0
4.7
3.4
7.1
5.7
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RevPAR Percent Change Pennsylvania MarketsYTD
March 2008
5.6
-2.7
5.7
4.1
4.9
0.5
10.8
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Chain Scales
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STR Chain ScalesSelected chains from each segment

• Luxury Four Seasons, Ritz Carlton, Fairmont
• Upper Upscale Embassy, Hilton, Marriott,
  Sheraton
• Upscale Residence Inn, Hilton Garden Inn,
  Courtyard
• Mid with FB Quality Inn, Holiday Inn, Ramada
• Mid no FB Comfort Inn, Hampton Inn, HI Express
• Economy Econolodge, Red Roof, Days Inn

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STR - U.S. Chain ScalesLTM February 2008 Room
Revenue Share

Total Room Revenue 108 Billion
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Selected Chain Scales 12 Month Moving Average -
Demand Index (Jan 2000 100) January 2000
August 2001
Then Visible Drop in Demand in UU Scale
Top-Down Recession
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Selected Chain Scales12 Month Moving Average -
ADR Index (Jan 2000 100) January 2000 August
2001
Then Visible Drop in ADR in Higher End Scales
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Selected Chain Scales 12 Month Moving Average
Demand Index (Jan 2006 100) January 2006
February 2008
Now No Slowing In Demand For Upper End Bottom
Up Recession?
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Selected Chain Scales 12 Month Moving Average -
ADR Index (Jan 2006 100) January 2006
February 2008
Now No Slowing in Rate Growth
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U.S. Market Performance
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Top 25 Markets vs. All Other Markets12 Month
Moving Average Demand Index (Jan 2000 100)
January 2000 August 2001
Then Visible Drop in Demand in Top 25 Markets
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Top 25 Markets vs. All Other Markets12 Month
Moving Average - ADR Index (Jan 2000 100)
January 2000 August 2001
Then Visible Drop in ADR in Top 25 Markets
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Top 25 Markets vs. All Other Markets 12 Month
Moving Average - Demand Index (Jan 2006 100)
January 2006 February 2008
Now Demand for Top 25 Markets basically Flat
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Top 25 Markets vs. All Other Markets 12 Month
Moving Average - ADR Index (Jan 2006 100)
January 2006 February 2008
Now ADR Currently Strong Across The Board
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Exchange Rate Impact on 2007 ADR Change
America Is On Sale!
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U.S. Pipeline
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Total United StatesActive Development Pipeline -
RoomsChange From Prior Year
Feb 2008 Feb 2007 Change
Chg In Construction 198,244
171,413 26,831 15.7 Active
Pipeline 648,882 541,723
107,159 19.8
Source STR / TWR / Dodge Construction Pipeline
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Average Lengths Under Construction (Months)For
Hotels Opening That Year
Slight Increase in Construction Time Over Last 2
Years
Source STR / TWR / Dodge Construction Pipeline
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Total United StatesAnnual Rooms Closed and 3
Year Moving Average1990 2007
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Projections
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U.S. Economic OutlookBlue Chip Economic
Indicators April 2008

• 2007 2008F 2009F
• Real GDP 2.2 1.4 2.2
• CPI 2.9 3.5 2.4
• Corporate Profits 2.7
  -2.7 5.2
• Disp Personal Income 3.1 2.1 2.1
• Unemployment Rate 4.6 5.3 5.6

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Total U.S.Supply/Demand Percent Change2002
2008P
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Total U.S.Occupancy Percent Change2002 2008P
20 Year Average -0.1
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Total USOccupancy Percent2002 2008P
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Total U.S.ADR Percent Change2002 2008P
20 Year Average 3.5
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Total U.S.RevPAR Percent Change2002 2008P
20 Year Average 3.4
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2008 Lodging Industry Takeaways

• Accelerating Supply Growth Pipeline Attrition?
• Slowing Economy Slower Demand Growth
• Top Markets may outperform
• Weak Dollar U.S. Bargain
• Leisure feels greater impact than business?
• Revenue Management Discipline?

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