Prime (Canada) 3.00%

Prime (U.S.) 3.25%

5 Yr Gov. Bond 1.46%

10 Yr Gov. Bond 2.11%

LIBOR 3-month 0.23%

S&P/TSX Composite 15,188

2014 GDP Forecast 2.4%

As of August 6, 2014Sources: Bloomberg, Bank of Canada, TMX, Confrence Board of Canada

TRANSACTION REPORTCanadian hotel transaction volume in Q2 2014 is reported at approximately $170 million, although this excludes the sale of the Fairmont Empress in Victoria, BC as pricing is confi dential. With this signifi cant sale excluded, year-to-date (“YTD”) transaction volume has reached approximately $374 million, less than half the volume reported at the same time last year. Further, approximately 20 fewer deals were completed during this time in 2014 versus 2013.

Other notable trends include:

• National per room pricing was reported at $67,000, well below $92,000 as reported in the fi rst half of 2013. Eleven trades were reported at over $100,000 per room versus 16 at this time last year.

• Only one hotel has sold for over $50 million, compared to four above this threshold at this time last year.

• Transaction volume in the fi rst six months of 2014 was highest in Central Canada, with 51% of the national total, or $189 million in volume split equally

Number of Trades: 45

Transaction Volume: $374M

Price Per Room: $67,000

YTD TRANSACTION ACTIVITY between Ontario and Quebec. Only one hotel sold in Eastern Canada, accounting for 1% of total volume, with the balance (48%) transacting in Western Canada.

• The majority of hotels sold were in tertiary markets although these accounted for just over a third of total volume and contributed to a fall in per room pricing. At this time last year, transactions were more evenly distributed between tertiary and primary markets, with the latter generally commanding a pricing premium.

• Private Investors dominated, representing approximately 43% of total transaction volume, although Real Estate Companies/Developers were not far behind at 34%.

• The number of court-ordered and lender driven sales is somewhat higher with four in the fi rst half of 2014 versus only one YTD Q2 2013.

A full list of YTD Q2 2014 transactions is included as an Appendix.

$374MTOTAL VOLUME

CANADIANHOTEL INVESTMENT TRENDS

BROKERAGE:Bill Stone 416.815.2371Deborah Borotsik 416.815.2347Mark Sparrow 604.662.5192Luke Scheer 416.815.2313Greg Kwong 403.750.0514

VALUATION & ADVISORY:Brian Flood 416.874.7272Cindy Schoenauer 778.372.3935Kimberly Dickey 416.815.2348Karina Toome 416.847.3243

CENTRAL 51%

WES

T 4

8%

CONTACT INFORMATION

Q2.2014

2010 2011 2012

CANADIAN QUARTERLY HOTEL TRANSACTION VOLUME

$100

$200

$300

$400

MIL

LIO

NS

($)

Q1 Q1Q2 Q2 Q2Q3 Q3 Q3Q4 Q4 Q4

2013

Q1 Q2

Source: CBRE Hotels Canada

INTEREST RATES & FINANCIAL INDICATORS

$500

$600

$700

$800

Q3

EAST 1%

Q4 Q1

2014

Q2

Q2 CAP RATE TRENDS

Interest rates are back below where they were a year ago, and up only slightly from the lows seen in early 2013, prompting a ‘mild reset’ in the psyche of investors.

Concern over higher interest rates has temporarily retreated and investors are refocusing on operating fundamentals, especially in sectors with increasing supply.

Hotel cap rates remain unchanged from the previous quarter.

Calgary’s robust economy has meant that both retail and multi residential cap rates have been compressed due to the stability of cash fl ows and future rental rate growth.

HOTEL PERFORMANCE

Year-to-date (“YTD”) Q2 2014 Smith Travel Research (“STR”) results indicate national hotel occupancy is 61.7%, up from 60.0% for the same period in 2013. Room demand grew by 3.3% with supply growth of just 0.3%. ADR for YTD June 2014 is up 2.9%, pushing RevPAR up 5.9%.

According to STR, lead markets for occupancy growth were Windsor (19.4%), Toronto North/East (11.2%), and Ontario Central and Mississauga (10.5%), while

the strongest ADR increases were reported in Vancouver North Area and Banff (6.4%), and Vancouver Downtown (6.0%). For RevPAR, Windsor led all markets with growth of 21.5%, almost entirely attributable to signifi cant recovery in occupancy.

MARKET SPOTLIGHT - VANCOUVER, BC

According to STR, the Vancouver lodging market is divided into fi ve submarkets; Downtown, Vancouver North, Vancouver Airport, Vancouver South/Surrey, and Abbotsford/Chilliwack. Vancouver has reported the strongest RevPAR growth of all major metropolitan areas for YTD June 2014, at 12.9%. The Downtown Vancouver submarket has seen healthy progress in 2014 due to city-wide events that pushed occupancy rates up, specifi cally in the months of March and April, contributing to double-digit growth in RevPAR performance. There were more city-wide events held in Vancouver this past spring than in 2013, including the new annual TED Conferences event, the NHL Heritage Classic and the North American Urban Land Institute Spring Meeting, which was held outside of the United States for the fi rst time. Vancouver will also host the

102nd Grey Cup in November. The start of the tourist season which began in May is showing strength in both occupancy and ADR, refl ecting increases of approximately 8.0-9.0% in RevPAR for each of May and June 2014, over 2013 results. With continued strength in cruise ship passenger volume, a good convention year, and sustained economic growth, the overall outlook for 2014 is bright.

Since 2010, 13 hotel properties have closed in Greater Vancouver, mostly for conversion to seniors’ or social housing. In terms of new supply, the 75-room boutique Hotel Blu opened downtown on May 30th and the luxury Trump and Marriott-branded hotels are slated to enter the market in the short to medium term. The 169-room Element Hotel in Burnaby is anticipated to open in January 2015.

To the end of Q2 2014, one property in downtown Vancouver has transacted. The Best Western Sands Hotel sold in May 2014 for $30.3 million and at a yield of 2.8%. An alternative use is anticipated.

~ 2 ~

Vancouver Calgary Edmonton WinnipegLondon-Windsor

Kitchener-Waterloo

Toronto Ottawa Montreal Halifax

Downtown Full-Service 6.50-7.50 7.00-8.00 7.25-8.25 8.00-9.00 9.00-10.00 9.00-9.50 6.75-7.75 7.50-8.50 7.75-8.75 8.75-9.75

Suburban Limited-Service 7.50-8.50 8.00-9.00 9.25-9.75 9.50-10.50 9.00-10.50 9.00-9.50 8.00-9.00 8.75-9.25 9.50-10.50 9.50-10.50

Focused Service 7.00-8.00 7.50-8.50 8.25-9.25 8.00-9.00 8.50-9.50 8.00-9.00 8.00-8.50 8.00-9.00 8.25-9.00 8.25-9.50

Downtown Offi ce (AA) 4.50-5.00 5.00-5.50 5.25-5.75 N/A N/A N/A 4.75-5.25 5.00-5.75 5.00-5.50 N/A

Suburban Offi ce (A) 5.75-6.25 5.75-6.25 6.25-6.75 6.75-7.25 7.50-8.00 6.50-7.00 6.00-6.75 6.25-7.00 6.50-7.50 7.00-7.50

Industrial (A) 5.50-6.00 5.50-6.00 5.50-6.00 6.50-7.00 8.25-8.75 6.50-7.50 5.75-6.25 6.00-6.25 6.25-7.00 6.50-7.00

Retail (Regional) 5.00-5.50 5.00-5.50 5.00-5.50 5.75-6.25 6.25-6.75 5.50-6.00 4.50-5.50 5.00-6.00 5.50-6.25 5.50-6.00

Apartment High Rise (A) 3.50-4.00 4.00-4.50 4.50-5.00 N/A 5.00-5.50 4.75-5.25 3.50-4.25 4.25-4.75 4.75-5.25 5.25-5.75

Source: CBRE Limited

Note: decline from previous quarter; increase from previous quarter.; no arrow refl ects no change from previous quarter.

HO

TEL

OTH

ER C

OM

MER

CIA

L RE

AL E

STAT

E

Q2 2014 CAP RATE SURVEY

CANADIAN HOTEL INVESTMENT TRENDS Q2.2014

CANADIAN HOTEL INVESTMENT TRENDS Q2.2014

TORONTO145 King St. West, Suite 600Toronto, ON M5H 1J8

CALGARY530 8th Ave. SW, Suite 500Calgary, AB T2P 3S8

VANCOUVER1111 West Georgia St., Suite 600Vancouver, BC V6E 4M3

~ 3 ~

The Radisson Plaza Hotel Saskatchewan is located in downtown Regina, overlooking Victoria Park. The historic Hotel Saskatchewan was part of the chain of hotels constructed and owned by the Canadian Pacifi c Railway in key cities and resort destination across Canada, including the iconic Château Frontenac in Quebec City, the Chateau Lake Louise and Royal York Hotel in Toronto.

The Hotel features 224 guest rooms, a restaurant, lounge, tea room, 13,900 sq. ft. of meeting space, indoor whirlpool, steam room, exercise facilities, business centre, member’s club, leased barbershop, leased salon/spa and leased bakery.

The Hotel was purchased by Temple Hotels Inc. in April 2014 for $32,800,000 or $146,400 per room. Temple has announced plans for a $6 million capital program to be completed over three years. This is Temple’s second acquisition of 2014, following an active 2013 with six acquisitions for a total consideration of approximately $176 million.

TRANSACTION HIGHLIGHT: Radisson Plaza Hotel SaskatchewanRegina, SK

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TRANSACTION HIGHLIGHT

Address: 2125 Victoria Ave, Regina, SK

Guest Rooms: 224

Year Opened: 1927

F&B:Cortlandt Dining RoomVictoria Tea RoomMonarch Lounge

Meeting Space: 13,900 sq. ft.

Other Amenities:Fitness CentreSpaBusiness Centre

Sale Date: April 2014

Purchase Price: $32,800,000

Price Per Room: $146,400

Cap Rate: 11.6%

TRANSACTION HIGHLIGHT

Property Name City Province Rms Purchase Price Price/Rm Cap Rate

JAN

UAR

Y

Microtel Inn & Suites by Wyndham Blackfalds/Red Deer

Blackfalds AB 63 $8,325,000 $132,100 N/A

Coquitlam Sleepy Lodge Coquitlam BC 17 $2,730,000 $160,600 N/A

Comfort Inn Dartmouth Dartmouth NS 80 $3,475,000 $43,400 N/A

Nova Court1 Yellowknife NWT 106 $21,680,000 $204,500 5.4

Holiday Inn and Conference Centre2 Brampton ON 145 $11,800,000 $81,400 N/A

Seven & Seven Motel Brampton ON 29 $2,750,000 $94,800 N/A

Motel 6 Huntsville ON 85 $3,296,000 $38,800 10.4

Super 8 Toronto North Vaughan ON 85 $4,800,000 $56,500 N/A

Holiday Inn Montreal Midtown3 Montreal QC 488 $65,000,000 $133,200 6.9

FEBR

UAR

Y

Bow River Inn Cochrane AB 44 $4,550,000 $103,400 N/A

Super 8 Cochrane Cochrane AB 48 $5,400,000 $112,500 N/A

Quality Inn Maple Ridge Maple Ridge BC 61 $3,200,000 $52,500 N/A

Howard Johnson Inn Vernon BC 29 $1,725,000 $59,500 N/A

Travelodge Chatham Chatham ON 103 $1,875,000 $18,200 4.7

Travelodge London South London ON 126 $2,600,000 $20,600 N/A

The Parlour Inn Stratford ON 28 $5,725,000 $204,000 N/A

Comfort Inn Levis Levis QC 98 $4,100,000 $41,800 5.3

MAR

CH

Motel Adam Gatineau QC 125 $3,550,000 $28,400 N/A

Best Western Plus Chelsea Inn Coquitlam BC 61 $5,000,000 $82,000 2.6

Super 8 West Kelowna* Kelowna BC 81 $3,000,000 $37,000 0.9

Travelodge Parksville Parksville BC 84 $3,230,000 $38,500 N/A

Comfort Inn Huntsville Huntsville ON 71 $2,500,000 $35,200 5.3

Delta Toronto Airport West Mississauga ON 297 Confi dential

Comfort Inn Oshawa Oshawa ON 79 $4,250,000 $53,800 9.7

Loews Hotel Le Concorde4 Quebec City QC 406 Confi dential

Hotel des Seigneurs5† Saint Hyacinthe QC 290 Confi dential

APRI

L

The Ambassador Hotel Kingston ON 246 $9,800,000 $39,800 N/A

Quality Hotel & Conference Centre* Niagara Falls ON 145 $6,730,000 $46,400 N/A

Quality Hotel & Conference Centre Oshawa ON 194 $4,680,000 $24,100 N/A

Holiday Inn Express Kamloops Kamloops BC 80 $8,900,000 $111,300 7.6

Radisson Plaza Hotel Saskatchewan Regina SK 224 $32,800,000 $146,400 11.6

MAY

Comfort Inn Beauport QC 80 $4,400,000 $55,000 N/A

Poets Cove Resort & Spa6 Pender Island BC 22 Confi dential

Holiday Inn & Suites Surrey* Surrey BC 76 $11,692,800 $153,900 N/A

Best Western Plus Sands Hotel7 Vancouver BC 120 $30,345,000 N/A 2.8

Talisman Ski Resort8* Kimberley ON 88 $1,800,000 $20,500 N/A

Super 8 Kingston9 Kingston ON 51 $1,500,000 $29,400 N/A

Z Plaza Hotel Victoriaville QC 14 $1,340,000 $95,700 N/A

TRANSACTION REPORT Q2.2014

The following pages provide a summary of YTD Q2 2014 Canadian hotel and resort transactions over $1 million.

~ 4 ~

~ 5 ~

* Receivership/lender driven sale.

Notes:(1) Temple intends to redevelop 8,300 square feet of unfi nished space on the fi rst fl oor into nine additional hotel rooms and a 750 sq. ft. breakfast room. The estimated total cost of the new construction and refurbishment is $4.8 million. Cap rate based on based on the 2015 forecasted net income, and total investment in the property of $26.48 million, including new construction and refurbishment.

(2) Hotel was vacant at time of sale and will convert to retirement uses.

(3) Hotel to convert to student residence.

(4) Hotel closed in February 2014, was closed at the time of sale. Hotel will be converted to a seniors’ residence.

(5) Hotel was closed at the time of sale. Purchased for redevelopment.

(6) Fractional resort. Purchaser acquired 19.25 of 22 fractional units, marina, all F&B and amenities.

(7) Will be converted to alternate use.

(8) Resort was shut down in 2011. Purchaser will complete full renovation and open as a hotel, spa and golf course. Ski runs will close permanently.

(9) Property will be converted to 51-55 unit rental apartment building.

This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verifi ed by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affi liated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.

Property Name City Province Rms Purchase Price Price/Rm Cap Rate

JUN

E

Tunnel Mountain Resort Banff AB 95 $14,250,000 $150,000 N/A

Radisson Canmore Hotel & Suites Canmore AB 164 Confi dential

Days Inn Whitecourt Whitecourt AB 79 $7,900,000 $100,000 11.0

Hotel Eldorado Kelowna BC 53 Confi dential

Fairmont Empress Victoria BC 477 N/A N/A N/A

Comfort Inn North York North York ON 144 $5,800,000 $40,300 7.0

Best Western Macies Ottawa ON 123 $12,250,000 $99,600 8.5

Comfort Inn St. Catharines St. Catharines ON 100 $4,100,000 $41,000 7.6

TRANSACTION REPORT Q2.2014