Park Inn Business Development

Guest Value Proposition

Relevant Products and Services for Price PointSpotlessly CleanBest Sleep in TownUncomplicated, Hassle -free, Easy to Usep yPlayful StyleCompetent and Unpretentious Service

ddi l t lifMeeting

your needs

…adding color to life

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Competitive Setp

Park Inn

Ramada

Best Western

ClarionSpirited

Four Points

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Hotel Portfolio

Data as of 2/20104

Park Inn

A new generation mid-scale hotel brand with design that adds color to lifegWell-established in Europe with growth plans for the Americas and AsiaOur goal is to attain consistent qualityOur goal is to attain consistent quality through fresh design and operational standardsBacked by the financial strengthand business building resourcesof Carlson Hotels

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Guestroom Prototype

Park Inn Park Inn Splash Guestroom PrototypeGuestroom Window Wall Red Splash

Guestroom Prototype

Park Inn Park Inn Splash Guestroom PrototypeGuestroom Accent Wall Red Splash

Park Inn

Park Inn Zurich AirportSwitzerland

Park Inn Linz, Austria

Park Inn Berlin AlexanderplatzGermany

Park Inn London Heathrow, UK

Germany Park Inn Manchester Victoria,UK

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Fees*

Initial License Fee The greater of USD 35,000 or USD 350 per guest roomUSD 350 per guest room

Royalty Fee 4.5 percent of Gross Room Revenue

Marketing Fee 2 percent of Gross Room Revenue

Reservation Fee 1.25 percent of Gross Room Revenue

Product Improvement Plan: USD 2 500Product Improvement Plan: USD 2,500

* Park Inn® 2009 Franchise Disclosure Document Items 5 and 6

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look to bookSM

Carlson’s unique travel consultant incentiveProgram that provides instantaneous onlineProgram that provides instantaneous, online, real-time point awards for bookings

As of July 31, 2009 look to book has 60,000 travel consultants from countries around the worldCarlson Hotels has held the patent on the uniqueCarlson Hotels has held the patent on the unique program technology since 1995

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goldpoints plus

Carlson’s global guest loyalty programS ll fi C l b dSpans all five Carlson brandsGuests earn points with every stayGuests can redeem points for free hotel nights, airlineGuests can redeem points for free hotel nights, airline miles, pre-paid cards, Express Awards and moreRecognize best guests with elite bonuses and room upgradesupgrades

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Distribution

Curtis-C Reservation SystemReal time global connectivity within a state of theReal-time global connectivity within a state-of-the-art system as noted in the Smithsonian Institute

Enhancementsto brand websites

User-friend search capabilitiescapabilitiesRSS feed capabilitiesEnhanced mapsAbility to compare hotels

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Curtis-C Worldwide Reservation System

Global460 000 GDS SystemsHospitality Call

CentersGlobal Internet

460,000 Travel Agents

GDS SystemsWorldwide

Centers(Servicing

55 Countries)

Hotel PMS CURTIS-C Customer DatabaseDatabase

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Hotel Systems

Harmony Plus = Opera and Carlson Hotels web applicationsCarlson Hotels web applicationsOpera PMS or Opera Express

Premise-based or Centrally Hosted OperaHosted Opera

Results for your hotel:maximize revenuegather demographic data to effectively target marketing effortsdeliver improved customer servicerecogni e o r most al edrecognize your most valued customers

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Hotel Systems

OPERA is a product by MICROS Systems, Inc.Leading provider of enterprise applications for theLeading provider of enterprise applications for the hospitality and specialty retail industries worldwideMany global brands rely on MICROS products and services to power their business330,000 installations globally

13 000 OPERA installations (March 2009)13,000 OPERA installations (March 2009)

Opera Cost: USD 46,500 – USD 91,500 (Premise –Based)Based on 200 room hotel, all new hardware & varies depending on quantity of interfaces selectedPark Inn also offers Opera Express with select functionality, and a Centrally Hosted Opera / Lease option

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Hotel Operations

Building trusted relationships with our owners, general managers and customers

Operations is the voice of the fieldPromote a strong brand culture

Brand training (e.g. operations orientation, brand orientation, C l L i N t k)Carlson Learning Network)

Ensures consistent delivery of quality product and servicesStandards manualsOpening hotel process (construction plan standards review siteOpening hotel process (construction plan standards review, site visits, opening authorization and training)Quality assurance (BP 360) – action plans, business coaching, room inspections, etc.Property improvement plans/renovation development and complianceRegion based staff

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Revenue Optimization

Driving more efficient pricing, inventoryd h l t t t iand channel management strategies

• Demand outlook– Weekly future demand forecasts

• ROPES– Revenue optimization performance y

for 90-day period– Easily identify need periods– Information to help manage rates,

inventory and expectations

p penhancement services

– Individualized revenueoptimization support

– Proven resultsinventory, and expectations– Individual hotel and brand level uses

– Proven results

Strategic Demand Outlook31-60 Days Forecast

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Revenue Optimization

Stay Night Automated Pricing (SNAP)Automated, daily price optimization tool using demand, available inventory, and competitors’ rates to help determine optimal rate for each stay night in 120-day windowH l ti i i i ll d d i T diti lHelps optimize price in all demand scenarios. Traditional revenue management systems most helpful in high demandDeveloped with ease of use in mind; interfaced with Curtis-C

ti treservation systemHotel determines level of interaction with SNAPDedicated support group proactively working with hotelsUnder Development: anticipated availability Q1 2010

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Franchise Service Overview

Franchise Service OfferingsReservations Technologically advanced systems

Operations Efficiency and performance

Revenue Optimization driving RevPAR IndexRevenue Optimization driving RevPAR Index

Marketing Beneficial global programs

Loyalty Program Repeat stays and increased revenue

Financial Stewardship and fact-based decision making

Employee Engagement driving performance

IT Support and full integrationIT Support and full integration

CHW A global hospitality company

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ddi l t lif…adding color to life

Contacts – The Americas

RESPONSIBILITY CONTACT TELEPHONE EMAILE ti Vi P id t d COO St M k 763 212 8007 k@ lExecutive Vice President and COO Steve Mogck 763.212.8007 smogck@carlson.comVice President, Operations Scott Meyer 763.212.1321 smeyer@carlson.comEVP, Business Development and Investments Bob Kleinschmidt 763.212.8700 rkleinschmidt@carlson.comExecutive Vice President, Business Development Nancy Johnson 763.212.1326 njohnson@carlson.comVi P id t F ll S i D l t Mik C ll 512 443 1020 ll@ lVice President, Full Service Development Mike Cowell 512.443.1020 mcowell@carlson.comVice President, Full Service Development Michael Hutchins 480.250.7244 mhutchins@carlson.comVice President, Full Service Development Roland Mouly 305.377.9115 rmouly@carlson.comVice President, Full Service Development Ruth Ormsby 714.369.2680 rormsby@carlson.comVi P id t F ll d S l t S i D l t Ed H llid 803 328 9047 h llid @ lVice President, Full and Select Service Development Ed Holliday 803.328.9047 cholliday@carlson.comDirector, Select Service Development Bill Bradford 972.596.9493 billbradford@carlson.comDirector, Select Service Development Steve Casey 760.346.0315 scasey@carlson.comDirector, Select Service Development Mike Gallagher 610.847.8489 mgallagher@carlson.comDirector, Select Service Development B.H. Horn 770.392.0006 bhorn@carlson.comDirector, Select Service Development Dave Mastio 630.587.5813 dmastio@carlson.com

701 Carlson Parkway, MS8254Minnetonka, MN 55305

2/2010