1 © 2016 STR. All Rights Reserved. RevPAR Growth: It’s going to be OK (but not great) Total U.S., RevPAR % Change, 1/1990 – 01/ Months 71 Mo. 80 Months 31 Mo

OCC65.6% ▴ 1.7% RECOR D Metric No. Status Remarks ROOM REV$142B ▴ 7.4% RECOR D OCC ROOMS1.2B ▴ 2.9% RECOR D AVAIL ROOMS1.8B ▴ 1.1% RECOR D ADR$120 ▴ 4.4% RECOR D REVPAR$79 ▴ 6.3% RECOR D U.S. Hotels YE 2015 SOURCE: STR

© 2016 STR. All Rights Reserved. Total US - Key Statistics YTD January 2016 % Change Hotels 53 k Room Supply1.8 bn1.2% Room Demand1.2 bn2.6% Occupancy65.5% 1.4% ADR $ % RevPAR$ % Room Revenue$143 bn7.1%

Hotel Transaction Almanac: Transaction volume

5 © 2016 STR. All Rights Reserved. What does this year’s VOTE mean to hotels?

6 © 2016 STR. All Rights Reserved. Would you VOTE for this guy as the next Colonel?

© 2016 STR. All Rights Reserved. US Pipeline: Construction will impact 2016/17 Phase % Change In Construction % Final Planning % Planning % Under Contract % *Total US Pipeline, by Phase, ‘000s Rooms, January 2015 and 2016

© 2016 STR. All Rights Reserved. Brands, brands, brands: Plenty in the pipeline Top 15 Brands – Under Contract Pipeline January 2016

Lodging stocks take a beating … and then some Baird/STR Hotel Stock Index drops 20% during 2015 Index drops another 12.1% in January 2016 Index rises 11.8% in February Closed Monday, March 14 at 3205—down from 3942 one year earlier Is this an indicator of what’s yet to come? HotelStockIndex.com

© 2016 STR. All Rights Reserved. Converging metrics? Feb ’11 7.7% July ’89 5.3% Sept ’ % Aug ’ % Jan ’89 4.6% Mar ’ % Oct ’ % Room Supply/Demand Percent Change 12MMA – 1989 to January 2016