1. Hotel Investment in Asia Pacific Scott Hetherington Executive Vice President - Asia
April 17, 2002

2. Culture

3. Comparison of Transaction Activity

4. Experience

5. Asia Pacific Hotel Transactions
Source: Jones Lang LaSalle Hotels

6. Hotel Investment Cycle – Asia
1 Early Downturn
2 Late Downturn
3 Trough
4 Early Upturn
5 Late Upturn
6 Peak 6 6
Seoul 5 1
Bangkok
Jakarta, Manila
Phuket
Mumbai
Kuala
Lumpur
Auckland,
Gold Coast
Shanghai, Brisbane 2 4
Melbourne, New Delhi
Beijing, Cairns
Bali
Hong Kong 3
Singapore, Sydney
Source: Jones Lang LaSalle Hotels

7. Outlook for 2002 and Beyond - Trading
Hotel occupancy in Asia to stabilize, growth in ADR in Q
Over supply in Shanghai, Mumbai, Beijing, Kuala Lumpur and Melbourne in 4 & 5 star segment.
Over supply in Hong Kong mid market.
Over supply in Auckland due to serviced apartments development
Thai hotel markets to recover.
Chinese tour groups to boost occupancies in Hong Kong, Singapore and Thailand.
Sydney to stabilize in 2002 and grow strongly thereafter due to residential conversions.
Brisbane to continue strongest growth in 2002.
Cairns to benefit from the launch of Australian Airlines in 2002.

8. Outlook for 2002 and Beyond - Investment
Hotel values to stabilize in Asia after falling 10-15% during 2001.
Hotel values in NSW and Queensland to grow by 10%.
Further sales of assets and debt in Indonesia by IBRA and Holdiko.
Japanese investors to become active sellers.
India to present opportunities as portfolios are restructured.
Significant level of capital still wishing to invest in the Asia Pacific region.
Buying opportunities in most countries, but in particular Australia, Japan and Indonesia.