Rachel J. Roginsky, ISHC Daniel C. Hanrahan II, MAI, CRE Gregory T. Bohan 76 Canal Street, Boston, MA ~ 617/ South State Street, Newtown, PA ~ 215/ Norfolk Street, Pompano Beach, FL. ~ 954/

National Trends – Occupancy and ADR

Top and Bottom 5 Markets – Percent RevPAR Change 2003 Top 5 Bottom 5

Historical Trends Occupancy ADR RevPAR Historical Trends by Area Historical Trends Occupancy ADR RevPAR Historical Trends by Area Boston / Cambridge

Boston / Cambridge Occupancy 1990 – 2003

Boston / Cambridge ADR 1990 – 2003

Boston / Cambridge RevPAR 1990 – 2003

Boston/Cambridge 2003 by Area -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% Back Bay DowntownOther Cambridge Occupancy Avg Rate RevPAR

Commercial Demand Leisure Demand Group Demand New Supply Projections Commercial Demand Leisure Demand Group Demand New Supply Projections Boston / Cambridge Outlook 2004

Improving Economy Growth in High Tech Industries Financial Services  Improving Stock Market  Consolidation Pharmaceutical and Biotech Improving Economy Growth in High Tech Industries Financial Services  Improving Stock Market  Consolidation Pharmaceutical and Biotech Commercial Demand

Improving Economy Weak Dollar More Stable Geopolitical Situation New Low-Cost Air Carriers Improving Economy Weak Dollar More Stable Geopolitical Situation New Low-Cost Air Carriers Leisure Demand

Strong Citywide Demand  18 vs 15 in 2003 Strong Short Term Pick-up  Added 2 Large Groups (1,500+ on Peak) Group Definites at the “Big 6” are 14% above last year Strong Citywide Demand  18 vs 15 in 2003 Strong Short Term Pick-up  Added 2 Large Groups (1,500+ on Peak) Group Definites at the “Big 6” are 14% above last year Group Demand

Courtyard at 88 Exeter – Back Bay – 81 Rooms - April Hotel Onyx – N. Station – 112 Rooms – May Jurys Doyle – Back Bay – 220 Rooms – June Clarion – N. Station – 88 Rooms – June Hampton Inn and Suites – Crosstown – 175 Rooms – June Courtyard at 88 Exeter – Back Bay – 81 Rooms - April Hotel Onyx – N. Station – 112 Rooms – May Jurys Doyle – Back Bay – 220 Rooms – June Clarion – N. Station – 88 Rooms – June Hampton Inn and Suites – Crosstown – 175 Rooms – June Boston/Cambridge New Supply 2004

New Supply HotelsRooms , & Beyond 134,953

PAG Projections Change Occupancy70.3%72.3%2.8% Average Rate $152.71$ % RevPAR$107.36$ %

1.6 million square feet Third largest in the Mid Atlantic and Northeast Grand Opening June 24, 2004 Westin Headquarters Hotel Open June 2006 Boston Convention and Exhibition Center

Closure of the Hynes  Could be sold July 1, 2006 Room Blocks  BCEC Groups will be required to use Back Bay Hotels Marketing Leadership Facility Location The Future Of the Boston Convention Market

Boston is no longer a “Backwater” Completion of the Big Dig is already having a positive effect World-Class Convention Center Excellent Transportation Infrastructure $14.6 Billion on Big Dig $1.2 Billion on Logan Modernization The Changing Face of Boston

Nationally: the floodgates are wide open Boston: the gates are still closed Capital Markets

76 Canal Street Boston, MA ~ 617/ South State Street, Newtown, PA ~ 215/ Norfolk Street, Pompano Beach, FL ~ 954/ PINNACLE ADVISORY GROUP