LODGING INDUSTRY OVERVIEW

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LODGING INDUSTRY OVERVIEW
Randy SmithCEO
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The World
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Global Regions Asia Pacific/AmericasMarket
Performance (US Dollars)August 2009 Year-to-Date
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Global Regions Europe/Mid East/AfricaMarket
Performance (US Dollars)August 2009 Year-to-Date
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World US / Eurozone / BRIC Demand Percent
Change 12 Month Moving AverageJuly 2009 YTD
-6.0
-8.0
-10.3
US / EU in Lockstep BRIC Falls Hard
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World US / Eurozone / BRIC ADR Percent Change
(US/BRIC / EU)12 Month Moving AverageJuly
2009 YTD
-5.1
--5.5
-12.5
Proj. Inflation Rate 2009US 0.7, Eurozone
0.5 India 6.0 China -0.5, Brazil 5,
Russia 12
Beijing Olympics Helped
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World US / EU / BRIC ADR Percent Change
(US/BRIC / EU)July 2009 YTD
Olympics 8/08 56
-9.1
-13.0
Global Deterioration 10/08
-24.3
Stabilization?
Are We Done Yet?
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Europe
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Eurozone vs. Non EurozoneDemand Percent Change
12 Month Moving AverageJuly 2009 YTD
-5.8
-8.0
Eurozone Demand Fell Earlier / More Sharply
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Eurozone vs. Non EurozoneADR Percent Change 12
Month Moving AverageJuly 2009 YTD
-13.0
-18.6
Proj. Inflation Rate 2009Eurozone 0.5
Non-Eurozone 2.3
ADR Deterioration More Pronounced In Non-Eurozone
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Europe Germany / UK / France

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Europe Germany / UK / FranceDemand Percent
Change 12 Month Moving AverageJuly 2009 YTD
-3.0
--3.8
-6.5
France excl. Accor
Same Inflection Point Same Direction
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Europe Germany / UK / FranceADR Percent
Change (D/F , UK ) 12 Month Moving
AverageJuly 2009 YTD
-2.7
-3.8
-4.6
France excl. Accor
Proj. Inflation Rate 2009D 0.3 UK 1.9 F
0.3
Rates Declined only in 2009
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EuropeMarket Performance (Local Currency)August
2009 Year-to-Date
Note No,I Do Not Expect You To Read This!
(particularly Don)
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EuropeMarket Performance (US Dollars)August
2009 Year-to-Date
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Europe - Pipeline
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Middle East
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Saudi Arabia vs UAE vs QatarDemand Percent
Change 12 Month Moving AverageJuly 2009 YTD
2.3
1.0
-0.9
Qatar Used To Hold Up Better
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Saudi Arabia (SAR) vs UAE (AED) vs Qatar
(QAR)ADR Percent Change 12 Month Moving
AverageJuly 2009 YTD
12.0
10.6
-7.8
Proj. Inflation Rate 2009Saudi Arabia 5.1
Strong ADR Growth - But is UAE The Future?
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Middle East Pipeline
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Middle East / AfricaMarket Performance (Local
Currency)August 2009 Year-to-Date
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Middle East / AfricaMarket Performance (US
Dollars)August 2009 Year-to-Date
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Americas/Asia Pacific Markets
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AmericasMarket Performance (Local
Currency)August 2009 Year-to-Date
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AmericasMarket Performance (US Dollars)August
2009 Year-to-Date
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Asia / PacificMarket Performance (Local
Currency)August 2009 Year-to-Date
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Asia / PacificMarket Performance (US
Dollars)August 2009 Year-to-Date
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Census and Sample Data
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United States
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Total US - Room Supply Demand Percent
ChangeTwelve Month Moving Average 1989 to
August 2009
3.1
-1.1
- 6.6
- 4.8
2008 Smith Travel Research, Inc.
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Total United StatesRoom Supply/Demand Percent
ChangeMonthly Year-Over-Year 2001 August 2009
3.2
-6.9
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Total United StatesRoom Supply Percent
ChangeJan 2003 August 2009
3.2
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Total United StatesRoom Demand Percent
ChangeJan 2003 August 2009
-6.9
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Total United StatesMonthly Room Demand (In
Millions) Seasonally AdjustedJanuary 2001
to Aug 2009
78.6
2009 Smith Travel Research, Inc.
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Total US Occupancy ADR Percent ChangeTwelve
Month Moving Average 1989 to August 2009
0.1
-4.7
-6.3
-3.4
-6.8
-9.4
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Total United StatesOccupancy / ADR Percent
ChangeMonthly Year-Over-Year 2001 August 2009
Occ -9.9
-ADR -10.1
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Total United StatesOccupancy Percent ChangeJan
2003 August 2009
-9.9
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Total United StatesMonthly ADR Seasonally
Adjusted January 2001 to Aug 2009
106.69
95.86
2009 Smith Travel Research, Inc.
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Total United StatesRoom Rate Percent ChangeJan
2003 August 2009
-10.1
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Total US - RevPAR Percent ChangeTwelve Month
Moving Average 1989 to August 2009
-10.5
-15.1
2008 Smith Travel Research, Inc.
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Total United StatesRevPAR Percent ChangeJan
2003 August 2009
-19.0
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Total US - Key Performance Indicators Percent
ChangeFull Year 2008 / August YTD
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Total United StatesWeekday / Weekend Percent
ChangeSeptember 12th 2009 YTD
Weekends Friday / Saturday
2009 Smith Travel Research, Inc.
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Total United States28 Day Moving Average -
Occupancy ADR ChangeJan 1, 2009 Sept 26,
2009
1/3/09
9/26/09
2009 Smith Travel Research, Inc.
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Group vs. Transient Performance
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Group - Occupancy / ADR PerformanceWeekday /
WeekendAugust 2009 YTD
2009 Smith Travel Research, Inc.
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Transient - Occupancy / ADR PerformanceWeekday /
WeekendAugust 2009 YTD
2009 Smith Travel Research, Inc.
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Total United States28 Day Moving Average Group
Transient Demand ChangeJan 31, 2008
September 12th, 2009
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Total United States28 Day Moving Average Group
Transient ADR ChangeJan 31, 2008 September
12th, 2009
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Total United States28 Day Moving Average Group
Transient Absolute ADRJan 31, 2008 September
12th, 2009
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Chain Scale Performance
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Chain ScalesSupply/Demand Percent ChangeAugust
2009 YTD
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Chain ScalesOccupancy/ADR Percent ChangeAugust
2009 YTD
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Chain ScalesRevPAR/Room Revenue Percent
ChangeAugust 2009 YTD
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Key Market Performance
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Key MarketsRoom Supply Percent ChangeAugust
2009 YTD
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Key MarketsRoom Demand Percent ChangeAugust
2009 YTD
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Key MarketsOccupancy Percent ChangeAugust 2009
YTD
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Key MarketsADR Percent ChangeAugust 2009 YTD
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Key 15 MarketsRevPAR Percent ChangeAugust 2009
YTD
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U.S. Lodging Industry Projections
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Global GDP Forecast
The Future Looks Bright(er)
Source E-Forecasting
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Total United StatesActive Development Pipeline -
RoomsChange From Last Year
Source STR / TWR / Dodge Construction Pipeline
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Total United StatesRooms In Construction by
Scale In Thousands August 2009
Source STR / TWR / Dodge Construction Pipeline
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Top 10 Brands in the Active PipelineAugust 2009

• Brand Rooms
  
• --------------------------------------------------
  -----------------------------------------
• Hampton Inn 33,028
• Holiday Inn Express 32,460
  
• Holiday Inn 20,782
  
• Courtyard 16,830
• Hilton Garden Inn 15,816
• Candlewood Suites 14,889
• Residence Inn 13,218
  
• Fairfield Inn 13,160
• SpringHill Suites 13,143
• Staybridge Suites 11,185
• Includes Inns and Inns Suites

Source STR / TWR / Dodge Construction Pipeline
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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

Source STR / TWR / Dodge Construction Pipeline
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Total United StatesSupply/Demand Percent
Change2003 2010P
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Total United StatesRoom Demand Percent
ChangeJan 2003 June 2009 / July December
Forecast
2009 Smith Travel Research, Inc.
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Total United StatesOccupancy Percent Change2003
2010P
20 Year Average -0.6
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Total United StatesOccupancy Percent2003
2010P
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Total United StatesADR Percent Change2003
2010P
20 Year Average 3.5
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Total US Room Rates Actual vs. Inflation
Adjusted 2000 2010E
If year 2000 ADR had increased by CPI each year
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Total United StatesRevPAR Percent Change2003
2010P
20 Year Average 2.9
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Total United StatesKey Performance Indicators
Percent ChangeFull Year 2009 2010 Forecast
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STR Chain Scale Forecast
2009 2010 Segment 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 FB -12.5 /
-15.5 -3.0 / -6.0 Midscale without
FB -10.5 / -13.5 1.0 /
-2.0 Economy -13.0 / -16.0
Flat / -3.0
Forecast produced August 2009
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Total US Industry Consecutive Quarterly
DeclinesKey Indicators
2008 Smith Travel Research, Inc.
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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

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Presentations
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Total United StatesSupply, Demand Occupancy
ForecastQ3 2009 Q4 2010
2008 Smith Travel Research, Inc.
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Total United StatesADR, RevPar and Room Revenue
ForecastQ3 2009 Q4 2010
2008 Smith Travel Research, Inc.
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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

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Total United States28 Day Moving Average Group
Transient Revenue ChangeJan 31, 2008
September 12th, 2009
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Europe Scandinavia / Baltics

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Europe Scandinavia / BalticsDemand Percent
Change 12 Month Moving AverageJune 2009 YTD
Sharp Demand Decline In The Baltics
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Europe Scandinavia / BalticsADR Percent Change
() 12 Month Moving AverageJune 2009 YTD
Baltics No ADR Growth in 18 months