1. GLOBAL LODGING INDUSTRY OVERVIEW
Randy Smith SMITH TRAVEL RESEARCH

2. Global Occupancy September Year-To-Date
+1.1 %

3. Global ADR September Year-To-Date
+7.8 %

4. U.S. Industry Analysis

5. Total U.S. Monthly Room Supply – Seasonally Adjusted January 1989 to September 2006
4.5 Million
Rooms
3.1 Million
Rooms
CAGR
0.5%
CAGR
3.5%
CAGR – 1.97%

6. Total United States Room Supply Percent Change Jan 2002 – September 2006

7. Total U.S. Monthly Room Demand – Seasonally Adjusted January 1989 to September 2006
2.6%
Peak CAGR – 2.7%
CAGR – 2.03%

8. Total United States Room Demand Percent Change Jan 2002 – September 2006
38 Consecutive Months
of Demand Growth

9. Total United States Room Supply/Demand Percent Change Twelve Month Moving Average – 1989 to September 2006
5.1%
4.0%
4.2%
3.8%
2.0%
0.4%
0.6%

10. Total United States Room Supply/Demand Percent Change Monthly Year-Over-Year 2001 – September 2006

11. Total United States Occupancy Percent Twelve Month Moving Average – 1989 to September 2006
64.9%
Sep 06
63.6%
63.3%
Feb 2001
1995 & 1996
61.9 %
December 1991
58.5%
Aug 02 & May 03

12. Total United States Occupancy Percent Change Jan 2002 – September 2006

13. Total United States Average Daily Rate Twelve Month Moving Average – 1989 to September 2006
$95.64
Sep 06
Peak CAGR – 4.4%
$86.33
June
2001
$54.94
Jan 1989
Long Term CAGR – 3.1%

14. Total United States Room Rate Percent Change Jan 2002 – September 2006

15. Total United States Occupancy/ADR Percent Change Twelve Month Moving Average – 1989 to September 2006
6.7%
Divergence
Divergence
1.6%

16. Total United States Room Demand / ADR Percent Change Twelve Month Moving Average – 1989 to September 2006
6.3%
2.0%

17. Total United States RevPAR Percent Change Twelve Month Moving Average – 1989 to September 2006
Feb %
6.5%
8.4%
Feb 97
-2.6%
Nov 91
-10.6%
Jun 02

18. Total United States Key Performance Indicators Percent Change September YTD

19. Total United States Occupancy Percent 28-Day Moving Average August 5, 2006 – October 21, 2006

20. Total United States ADR 28-Day Moving Average August 5, 2006 – October 21, 2006

21. Total United States RevPAR 28-Day Moving Average August 5, 2006 – October 21, 2006

22. Segment and Market Performance

23. Chain Scales Supply/Demand Percent Change September 2006 YTD

24. Chain Scales Occupancy/ADR Percent Change September 2006 YTD

25. Location Segments Supply/Demand Percent Change September 2006 YTD

26. Location Segments Occupancy/ADR Percent Change September 2006 YTD

27. Key 15 Markets Room Supply Percent Change September 2006 YTD Year over Year

28. Key 15 Markets Room Demand Percent Change September 2006 YTD Year over Year

29. Key 15 Markets Occupancy Percent Change September 2006 YTD Year over Year

30. Key 15 Markets Occupancy Percent September 2006 YTD

31. Key 15 Markets ADR Percent Change September 2006 YTD Year over Year

32. Key 15 Markets RevPAR Percent Change September 2006 YTD Year over Year

33. Top 15 Markets ADR September 2006 YTD

34. Global Markets

35. Asia Pacific Markets Occupancy / ADR Percent Change August 2006 YTD

36. Asia Pacific Markets RevPAR Percent Change in Local Currency August 2006 YTD

37. South America Markets Occupancy / ADR Percent Change August 2006 YTD

38. South America Markets RevPAR Percent Change in Local Currency August 2006 YTD

39. Middle East & Africa Markets Occupancy / ADR Percent Change August 2006 YTD

40. Middle East & Africa Markets RevPAR Percent Change in Local Currency August 2006 YTD

41. Europe Markets Occupancy / ADR Percent Change August 2006 YTD

42. Europe Markets RevPAR Percent Change in Local Currency August 2006 YTD

43. London, England Room Supply/Demand Percent Change Twelve Month Moving Average – 2002 to August 2006
7.0%
1.5%

44. London, England Occupancy, ADR Percent Change Twelve Month Moving Average – 2002 to August 2006
6.7%
5.4%

45. London, England Occupancy Percent Twelve Month Moving Average – 2001 to August 2006

46. London, England Room Supply/Demand Percent Change Monthly Year-Over-Year 2001 – September 2006

47. London, England Occupancy / ADR Percent Change Monthly Year-Over-Year 2001 – September 2006

48. Construction

49. Total United States Active Development Pipeline - Rooms Change From Last Year
Phase
Sept 2006
Sept 2005
Difference
% Change
In Construction
163,434
95,967
67,467
70.3%
Final Planning
58,010
18,226
39,784
218.3%
Planning
312,832
168,687
144,145
85.5%
Active Pipeline
534,276
282,880
251,396
88.3%
Pre-Planning
79,104
56,489
22,615
40.0%
Total
613,380
339,369
274,011
80.7%
Source: STR / TWR / Dodge Construction Pipeline

50. Total United States Active Pipeline First Quarter 2005 to Third Quarter 2006
11.9% of Existing Supply

51. Total United States Active Pipeline by Chain Scale Segment September 2006

52. Total United States Active Pipeline by Chain Scale Segment – Percent of Existing Supply September 2006

53. Projections

54. Total United States Supply/Demand Percent Change 2002 – 2007P

55. Total United States Occupancy Percent Change 2002 – 2007P

56. Total United States Occupancy Percent 2002 – 2007P

57. Total United States Nominal Room Rates 2000 – 2007P
Source: STR

58. Total United States ADR Percent Change 2002 – 2007P

59. Total United States RevPAR Percent Change 2002 – 2006P

60. Issues

61. Lodging Industry Issues
Global Issues
Terrorism
Bird Flu (other outbreaks)
Natural Disasters
Currency Fluctuations
Domestic Unrest
Wars
IMPACT - Varies
Source: STR

62. Lodging Industry Issues
Supply/Demand/Pricing
Supply Growth Remains Benign – Condo Hotels Done
Solid Demand Growth – Degrees of Good, Some Not So Good
Changing Demand – Experience Travel, Baby Boomers
Occupancy Growth Slows – Varies Widely by Market
Aggressive Pricing – Could Double CPI, Control Internet
Higher Industry Profits – Slow Profitability Improvement
IMPACT – Higher Revenues
Source: STR