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Statistically Speaking: The Past, The Present, and the Future

Jan D. Freitag

Senior Vice President

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www.hotelnewsnow.com Click on “Hotel Data Presentations”

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Supply / Demand Imbalance Drove Last 12 Months

% Change

• Room Supply* 1.8 bn 0.4%

• Room Demand* 1.06 bn 4.6%

• Occupancy 60.3% 4.2%

• A.D.R. $102 3.8%

• RevPAR $61 8.2%

• Room Revenue* $109 bn 8.7%

12 Months Ending February 2012, Total US Results * All Time High

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3.1

2.6

3.9

2.9

4.1

3.7

4.0

3.5

4.1 4.0

4.4

3.5

3.9 4.0

3.5 3.6

* Total US, ADR $ % Change, by Month, 1/11 – 2/12, by Week 3/3 – 3/10

ADRs Are Growing (But Will Comps Get More Difficult?)

3/3 3/10 2/12 1/11 4/11 7/11

Weekly data 10/11 1/12

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ADRs Are Growing Across All Channels

112

127

134

85

93

118

59

99

112

127

133

84

95

122

59

98

115

129

137

87

102

123

65

102

Brand.com CRS/Voice GDS Prop Direct/Other

OTA - Merchant

OTA - Retail OTA- Opaque STAR Total

2009 2010 2011

*ADR by Channel for Chain Affiliated Hotels YE 2009 - 2011

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Strong Demand Growth, Supply Not An Issue

1.1 1.5

1.8 1.9

0.8

0.2

6.2

4.5

5.9

6.7

4.6

3.5

Luxury Upper Upscale Upscale Upper Midscale Midscale Economy

Supply

Demand

*Supply / Demand % Change, by Scale, 12 Months Ending 2/12 Upper Mid / Midscale: Same Store Basis to Account for Best Western Reclassification

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Entering 2nd Stage Of Recovery Where ADR % > OCC %

5.1

2.9

4.0

4.7

3.7

3.3

5.2

3.6 4.0

3.0

2.2

2.9

Luxury Upper Upscale Upscale Upper Midscale Midscale Economy

Occupancy

ADR

*OCC / ADR % Change, by Scale, 12 Months Ending 2/12 Upper Mid / Midscale: Same Store Basis to Account for Best Western Reclassification

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Total United States Forecast 2012 / 2013 Key Performance Indicator % Change

2012 Forecast

2013 Forecast

Supply 0.8% 1.4%

Demand 1.3% 2.0%

Occupancy 0.5% 0.5%

ADR 3.8% 4.4%

RevPAR 4.3% 4.9%