 Supply Growth – Very Slow  Demand Growth – Healthy – Despite Everything  ADR – Will Drive Revpar Recovery  Steady As She Goes

Employment A Continued Drag

Peaked at $222 – March % Increase

Direct Cost  Rooms – 75% Lost Profit Figure  F&B – Highest Direct Cost Center  Other – Smallest Profitability

Commodity Pricing

53% Increase

20% Increase

50% Increase

82% Increase

Peaked at $302

106% Increase

43% Increase

F&B Revue Per Occupied Group Rom (RPOGR)

$20,000 F&B 200 Room Nights $100 POGR $20,000 Food & Beverage Spend 200 Total Room Nights

Your Expected F&B Contribution Per Group Room Night $100 Hotels Expected F&B Contribution Per Group Room Night $150 You have less leverage with rate and concessions

Your Expected F&B Contribution Per Group Room Night $200 Hotels Expected F&B Contribution Per Group Room Night $150 You have a ton of leverage with rate and concessions

Circuits $25k - $30K Signal $25k - $35K

25% to 35%

50% to 80%

80% to 100%

Comp Policy Impact on Average Rate Staff Rooms Impact on Average Rate Gratuities Staff Impact Meeting Rooms 24 Hour Holds

 Labor is the #1 Cost in a Hotel/Resort  Separate locations for Reception/Dinner  Outdoor Spaces run more labor typically  Turning rooms (Labor Intensive)  Good Information (Manifest/Arrival Times)  Turndown Service (VIP only)  Smaller Groups using Restaurant for Meals  Roll-in Buffets