Economic Indicator Study of Hospitality Purchasers Prepared for: The International Society of Hospitality Purchasers www.ishp.org May 15, 2009 5

PROPERTY SEGMENTS % Values 6

HOTEL PROJECTS IN THE USA/INTERNATIONAL % Values 7

CURRENT HOTEL PROJECTS % Values 8

FREIGHT COSTS & DESTINATIONS % Values 9

PRODUCT ORIGINS % Values 10

GREEN PROJECTS % Values 11

OVERALL VENDOR LEAD TIMES % Values 12

INCREASE IN LEAD TIMES – CATEGORY SPECIFIC % Values 13

VENDOR DEPOSITS % Values 14

PROJECT SCHEDULES % Values 15

CURRENT BUDGETS YEAR-TO-YEAR % Values 16

PRODUCT REPLACEMENT CYCLES % Values 17

BUSINESS GROWTH – CHANGE IN NUMBER OF PROJECTS Past 12 Months Next 12 % Values Up Same Down Up Same Down Up Same Down Up Same Down 18

SUMMARY Over 43% of the work is in the now mid-scale segments, with a sharp drop in upper upscale. Mostly located in the Northeast and Southeast. A growing ‘Green’ involvement in the project. Sharply declining product lead time costs & budgets. A growing trend toward Asian sourcing makes up almost 2/3 of all volume. And 3/4 of the ISHP members think business will be down in 2010. www.ishp.org 19