Region 5: RAB Meeting National Co-op Program 3/25/03 Region 5: RAB Meeting National Co-op Program 3/25/03

u Region 5 Budget Overview F Marketing Plans F Creative and Production Process F Co-op Advertising Team Travel Policy u Finance F Results of Naples Meeting F Member Contributions F National Co-op Marketing Allocation F Reporting Agenda

Region 5 Budget Overview u Media Allocation for 2003 F $124,204 u Production Allocation for 2003 F $20,457

Region 5 Media Plan 2003

Budget u National Co-op Allocation F Determined on a rooms pro rata basis by state for both marketing and production Y $1.7 MM split among all regions (midscale and economy) for marketing expenses Y $300,000 split among all regions (midscale and economy) for production expenses u Regional/State Split of National Allocation F Determined by RAB Chair/ELFA Director u Property Contributions F Set by individual co-ops

Marketing Plans u All co-ops must forward a detailed marketing plan to CHI (12/15) F RAB Chair/ELFA Director approve all plans prior to submission to CHI u Marketing plan to reflect that all funds are committed or spent within the calendar year u Each co-op is responsible for forwarding updated marketing plans throughout the year u Media can be purchased by Arnold Worldwide or by field F Contracts and IO’s to be signed by RAB/ELFA Director

Creative & Production Process u All advertising must be in campaign and must be produced and approved by CHI Co-op Team u All work is started with a work request form (WRF) F To ensure the appropriate properties are included, an updated property list needs to accompany all WRFs u Production Budget ($300,000) is managed by CHI Co- op Team F All jobs subject to a competitive bid process

WRF Submitted Creative Development Field Review Revisions Field Approval Build mechanicals & ship to pub Total Time: 3-7 weeks Creative Development Process

Travel Policy u Co-op Advertising Travel F RAB Chair/ELFA Director to approve all travel of CHI Advertising and Marketing staff to attend meetings Y The following travel will be covered out of the National Marketing Fund Y 2 Regional or State Meetings per region and/or state – 2 people Y Fall Association Meetings – 2 people Y Annual Convention Y Additional state or regional trips that are above and beyond what is listed above, will be taken out of the allocated production funds

u Results of February 20 th & 21 st Meeting in Naples F Completed the 2002 Reconciliation of Co-op Fund Collections and Expenditures for Regions 1-7 Midscale and the Combined Regions 8-13 Y All 2002 and prior year funds held by CHI for Regions 1-7 Midscale and Regions 8-13 have been remitted to the IOC Y CHI remitted to the IOC the st quarter media allocation despite the fact that not all of the media plans have been approved Y Further media allocations will be withheld from a region/state if media plans are not received and approved before the next scheduled payment date Finance

u Results of February 20 th & 21 st Meeting in Naples (cont.) F Finalized 2003 Financial Guidelines Y All media invoices must be approved by the Regional Chair/ELFA Director and should be forwarded to the IOC for payment. CHI will no longer remit payments to vendors for Co-op media expenses Y Agreed that the IOC would hire a bookkeeper to handle the additional transaction volume. Y CHI, Regional Advisory Boards and IOC Treasurer will provide oversight to ensure funds are spent and accounted for properly Finance

u Member Contributions F Region 5 will continue to collect their own member contributions. Finance

u National Co-op Marketing Allocation F CHI will remit the Co-op Allocation to the IOC on a quarterly basis by the 15 th of January, April, July and October. Y Payments will be made timely provided that expenditures are being made in accordance with the marketing plan submitted by each Region Y CHI will take into consideration region’s seasonality as each co-op manages to budget and expends funds collected

u National Co-op Marketing Allocation (cont.) F In the rare event that a region’s annual expenses fall short of member contributions and the CHI allocation, the remaining money will be split according to one of the following scenarios: 1. If CHI and a Co-op each put in equal amounts, the remaining funds will be split 50/50 2. If one party put in more than the other, the money will be allocated on a proportional basis of the unexpended fund balance 3. If a Co-op’s property collection exceeds the CHI allocation and the matched allocation was entirely spent, all property contributions in excess of the Co-op budget roll over into the specific Co-op’s account Finance

u Reporting F On a monthly basis, the IOC Consultant will provide a Regional Summary Detail Report to each Region and CHI. This report will contain the following information by Region/State: Y Allocation Paid by CHI to IOC Y Member Contributions Received Y Detail of Expenses Paid Y Current Balance of Funds Available F Regional Chairs are responsible for ensuring amounts on this report properly reflect their region’s activity

Questions