B1: TERTIARY TIME A FOCUS ON SECONDARY & TERTIARY MARKETS MODERATOR - BRIAN STANFORD, PKF CONSULTING SPEAKERS AKBAR MANJI, FIRST CANADIAN MANAGEMENT CORP. PARESH RAJA, BROCK HOTELS JEFF HYSLOP, POMEROY LODGING

PANEL OUTLINE Hotel Industry PROFILE WHAT Defines a Secondary or Tertiary market Market considerations Branding and product preferences Operating challenges Financing & INVESTMENT CONSIDERATIONS Questions & discussions

Hotel Industry PROFILE

National Overview Canada Population (2011) 33,476,688 Room Inventory* 347,503 Occupancy 64.8% ADR $132.75 *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

Toronto, Montreal, Vancouver >20,000 Rooms Toronto, Montreal, Vancouver Population (2011) 11,883,430 Room Inventory* 94,083 Occupancy 70.8% ADR $143.22 These three markets account for 35% of the population and 25% of hotel inventory *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

Edmonton, Calgary, Niagara Falls, Quebec City 10,000-20,000 Rooms Edmonton, Calgary, Niagara Falls, Quebec City Population (2011) 3,391,842 Room Inventory* 56,000 Occupancy 65.9% ADR $148.01 Edmonton Calgary Quebec City Niagara Falls These four markets account for 10% of the population and 15% of hotel inventory *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

Whistler, Victoria, Winnipeg, Ottawa, Halifax 5,000-10,000 Rooms Whistler, Victoria, Winnipeg, Ottawa, Halifax Population (2011) 2,710,877 Room Inventory* 33,607 Occupancy 65.1% ADR $146.22 Whistler Halifax Winnipeg Victoria Ottawa These five markets account for 8% of the population and 9% of hotel inventory *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

1,000-5,000 Rooms Secondary Markets Population (2011) 4,789,005 Room Inventory* 76,624 Occupancy 61.6% ADR $130.04 These 39 markets account for 14% of the population and 20% of hotel inventory *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

500-1,000 Rooms Tertiary Markets Population (2011) 2,198,884 Room Inventory* 17,698 Occupancy 55.3% ADR $109.92 These 24 markets account for 7% of the population and 5% of hotel inventory *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com

Overall Markets % of Population % of Rooms Inventory* Total Rooms Inventory Occupancy ADR >5,000 Rooms 54% 53% 183,690 68.3% $145.15 1,000-5,000 Rooms 14% 22% 76,624 61.6% $130.04 500-1,000 Rooms 7% 5% 17,698 55.3% $109.92 <500 Rooms 25% 20% 69,491 61.8% $104.68 National 100% 347,503 64.8% $132.75 *Excludes resort properties Source: PKF Consulting Inc. with reproduction and use of information subject to PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com