1. 1 © 2016 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied. U.S. Hotel Industry Performance Jan D. Freitag Senior Vice President jan@str.com @jan_freitag

2. 2 © 2016 STR. All Rights Reserved. Total US Review Scale Review AirBnB Pipeline 2016 / 2017 Forecast Agenda

3. 3 © 2016 STR. All Rights Reserved. www.hotelnewsnow.com Click on “Presentations”

4. 4 © 2016 STR. All Rights Reserved. Total U.S. Review

5. 5 2008 Remember???

6. 6 What Wall Street Expects: 2016 What STR Expects:

7. 7 Audience Poll: Do you think your property’s 2016 RevPAR growth (compared to 2015) will be: 1) negative 2) 0% to +2.5% 3) +2.6% to +5% 4)Higher than +5%

8. 8 © 2016 STR. All Rights Reserved. US RevPAR Growth Off To A Slow Start Total U.S., RevPAR % Change, by week, 01/02/16 – 03/05/16

9. 9 © 2016 STR. All Rights Reserved. http://www.hotelnewsnow.com/Stock/BairdSTRHotelStockIndex Baird STR Stock Index: Freefall Stopped?

10. 10 © 2016 STR. All Rights Reserved. RevPAR Growth: It’s Going To Be OK (but Not Great) Total U.S., RevPAR % Change, 1/1990 – 01/2016 56 Months 71 Mo. 80 Months 31 Mo

11. 11 © 2016 STR. All Rights Reserved. Chain Scale Review - 12 Months Ending January -

12. 12 © 2016 STR. All Rights Reserved. Scales RevPAR Composition: ADR Driven *RevPAR % Change by Contribution of OCC / ADR % Change, by Scale, 12 MMA January 2016

13. 13 © 2016 STR. All Rights Reserved. Scales: Upper End Hotels Are Very Busy *OCC %, by Scale, 12 MMA Jan 2016

14. 14 © 2016 STR. All Rights Reserved. Airbnb

15. 15 © 2016 STR. All Rights Reserved. http://www.hotelnewsnow.com/Article/17590/STR-Airbnbs-impact-minor-on-Manhattan-hotels

16. 16 © 2016 STR. All Rights Reserved. Manhattan: Compression Nights Have Not Drastically Changed Since 2012 *Manhattan, Compression Nights (Occupancy >95%) Count, by year 2006 - 2015

17. 17 © 2016 STR. All Rights Reserved. Manhattan: Compression Night ADR Premium Has Not Really Changed Since 2011 *Manhattan, Compression Nights (Occupancy > 95%) ADR Premium over Non-compression nights

18. 18 © 2016 STR. All Rights Reserved. Pipeline

19. 19 © 2016 STR. All Rights Reserved. US Pipeline: Construction Today Will Impact 2016 / 2017 Phase20152014% Change In Construction14912717% Final Planning18815225% Planning158160-1% Under Contract46943913% *Total US Pipeline, by Phase, ‘000s Rooms, January 2015 and 2016

20. 20 © 2016 STR. All Rights Reserved. Limited Service Construction Has Been Strong For 2 Years *US Pipeline, Rooms Under Construction, ‘000s Rooms, by Scale, January 2016 68%

21. 21 © 2016 STR. All Rights Reserved. 2016 / 2017 Forecast

22. 22 © 2016 STR. All Rights Reserved. Notable Calendar Shifts Impacting Lodging Performance Data in 2016: Easter: From April to March Jewish Holidays: From September to October April and December will have two more Weekend days (Net +) May will have two fewer Weekend days (Net -) Leap Day February 29 th (No Impact On Results) See: http://www.str.com/Media/Default/Documents/STR_leap_year_methodology.pdf

23. 23 © 2016 STR. All Rights Reserved. Total United States Key Performance Indicator Outlook (% Change vs. Prior Year) 2016 - 2017 2016 Forecast 2017 Forecast Supply 1.7%1.9% Demand 2.3%2.1% Occupancy 0.6%0.2% ADR 4.4%4.3% RevPAR 5.0%4.5%

24. 24 Questions? Presentation is available for download. To view this presentation, click “STR Data Presentations” from the drop-down menu on www.HotelNewsNow.com. © 2016 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.