1. JP Ford, CHB, ISHC, Principal, Global Director of Business Development
2020 Forecast
JP Ford, CHB, ISHC, Principal, Global Director of Business Development
DONE

2. The State of the US Construction Pipeline Fast Facts
The latest US Construction Pipeline Trend Report from Lodging Econometrics (LE), states that the total US Construction Pipeline ended Q with 5,653 Projects/693,207 Rooms, up 6% by projects and 9% by rooms Year-Over-Year (YOY).
There are 1,727 projects/233,600 rooms currently Under Construction, up 133 projects or 8%, YOY
Projects Scheduled to Start Construction in the Next 12 Months, at 2,552 projects/295,989 rooms, are up 11% by projects and rooms, YOY
Projects in Early Planning at 1,374 projects/ 163,618 rooms are down 4% by projects, but up 3% by rooms, YOY
There are 3,422 new hotels with over 389, new rooms forecasted to open in the US between
Done. 2

3. US Lodging Real Estate Cycle
Current Quarter: Q219 with 5,653 Projects/693,207 Rooms
Last Cycle Peak: Q208 with 5,883 Projects/785,547 Rooms
Last Cycle Bottom: Q112 with 2,720 Projects/331,129 Rooms
Earnings
Development
Lending
Transactions
Peak New Hotel Openings
Wall St. Activity
New Project Announcements
Peak Operating Performance
Done.
Early Transaction Recovery
Main Street Debt Availability
Conversions/Renovations
Early Operating Recovery X 11 12 13 14 15 16 17 18 19 20 21 3

4. US Construction Pipeline By Projects and Rooms
693
669
624
635
599
546
461
383
Rooms (000s)
Done.
Projects 3,020 3, , , , , , ,653 4

5. US Construction Pipeline By Project Stage Year-Over-Year
Q2 2019
Q2 2018
% Variance
Projects
Rooms
Under Construction
1,727
233,600
1,594
208,509 8%
12%
Starts Next 12 Months
2,552
295,989
2,291
266,878
11%
Early Planning
1,374
163,618
1,427
159,114
-4% 3%
Total Pipeline
5,653
693,207
5,312
634,501 6% 9%
Done. 5

6. US Construction Pipeline
By Chain Scale with Unbranded Totals Displayed
Q2 2019
Projects
Rooms
Luxury 78
20,764
Upper Upscale
305
64,851
Upscale
1,486
191,460
Upper Midscale
2,162
215,819
Midscale
852
68,311
Economy
119
12,307
Unbranded
626
107,431
Casino 25
12,264
Total
5,653
693,207
Done.
% by rooms 6

7. US Construction Pipeline
By Chain Scale with Unbranded Included
Q2 2019
Projects
Rooms
Luxury
158
37,304
Upper Upscale
382
78,287
Upscale
1,692
231,938
Upper Midscale
2,318
236,024
Midscale
938
81,656
Economy
140
15,734
Casino 25
12,264
Total
5,653
693,207
Done.
% by rooms 7

8. US Construction Pipeline
By Branded and Unbranded Project Stage*
Q2 2019
Q2 2018
% Variance
Projects
Rooms
Under Construction
Branded
1,557
199,963
1,441
181,311 8%
10%
Unbranded
170
33,637
153
27,198
11%
24%
Starts Next
12 Months
2,391
264,900
2,136
239,795
12%
161
31,089
155
27,083 4%
15%
Early
Planning
1,054
108,649
1,197
118,687
-12%
-8%
320
54,969
230
40,427
39%
36%
*Casino numbers included in unbranded 8

9. US Forecast New Hotel Openings By Rooms
Growth Rate:
2.5%
Growth Rate:
2.4% }
Growth Rate:
2.2%
119,727
Done. 9

10. US Forecast New Hotel Openings By Chain Scale
2019
2020
2021
* = growth rate %
by rooms
Projects
Rooms *
Luxury 15
4,037
2.8 14
2,930
2.0
3,834
2.5
Upper Upscale 58
10,141
1.6 61
11,423
1.8 64
13,239
Upscale
279
35,728
4.5
308
39,690
4.7
339
41,312
Upper Midscale
448
45,677
4.2
507
49,165
4.3
489
48,254
4.1
Midscale
121
10,367
2.4
152
12,150
207
16,113
3.6
Economy 36
3,281
0.4 41
0.5 20
2,396
0.3
Unbranded 92
9,129
0.7 76
9,486
0.8 69
10,314
Casino 6
1,367
0.6 2
650 4
4,331
Total
1,055
119,727
2.2
1,161
129,531
1,206
139,793
Done. 10

11. US Construction Pipeline Selected Markets by Rooms
Q2 2019
Q2 2018
Projects
Rooms
Pipeline rooms as a % of 2Q19 Census
Pipeline rooms
as a % of 2Q18 Census
New York, NY
166
28,231
23.2
169
29,365
25.2
Los Angeles, CA
158
25,428
24.3
121
18,037
17.5
Orlando, FL
100
20,190
15.1 77
15,581
11.8
Dallas, TX
162
19,972
21.7
156
18,908
21.3
Atlanta, GA
130
17,280
16.8
101
12,869
12.7
Done. 11

12. US Construction Pipeline Selected Markets by Rooms (cont.)
Q2 2019
Q2 2018
Projects
Rooms
Pipeline rooms as a % of 2Q19 Census
Pipeline rooms
as a % of 2Q18 Census
Nashville, TN
121
16,576
35.7
123
16,392
38.2
Houston, TX
146
14,998
17.0
150
16,321
19.3
Austin, TX
104
13,241
32.7 95
11,574
29.3
Washington, DC 76
11,470
9.9 70
11,591
10.2
Miami, FL 61
11,230
19.7 69
12,238
22.0
Done. 12

13. US Development Pipeline
Top US Parent Companies New Construction Plus Conversions by Rooms
Q2 2019
Q2 2018
Projects
Rooms
Average # Rooms per Project
Marriott International
1,550
207,101
134
1,437
191,427
133
Hilton Worldwide
1,445
164,815
114
1,397
158,255
113
InterContinental Hotel Group
1,014
103,248
102
992
101,917
103
Best Western Hotels
296
26,329 89
280
24,807
Hyatt Hotels
120
19,411
162 77
15,666
203
Done. 13

14. US Construction Pipeline Top Markets by Census Room Count
Q2 2019
Total Pipeline
% of Total Pipeline
Projects
Rooms
By Rooms
Top 1-25 Markets
2,016
303,862
44%
Top Markets
1,039
128,444
18%
Other Markets
2,598
260,901
38%
5,653
693,207
100% 14

15. Starts Next 12 & Early Planning
Global Construction Pipeline by Region Q vs. Q2 2018
United States
Other Americas
EMEA AP
Construction
Under
Projects
Rooms
Q2 2019
1,727
233,600
413
67,346
1,279
257,962
3,146
633,490
Q2 2018
1,594
208,509
445
73,959
1,167
245,698
2,782
604,851
YOY Variance 8%
12%
-7%
-9%
10% 5%
13%
Starts Next 12 & Early Planning
3,926
459,607
570
91,833
1,352
230,959
1,638
353,126
3,718
425,992
545
85,172
1,098
193,402
1,490
320,839 6%
23%
19%
Total
Pipeline
5,653
693,207
983
159,179
2,631
488,921
4,784
986,616
5,312
634,501
990
159,131
2,265
439,100
4,272
925,690 9%
<-1%
<1%
16%
11% 7%
Done. 15

16. Asia Pacific Construction Pipeline
Top Five Countries YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
China
2,991
592,884
2,523
556,645
19% 7%
Indonesia
378
63,196
394
66,759
-4%
-5%
Vietnam
136
57,050
125
39,604 9%
44%
Japan
226
47,294
206
41,146
10%
15%
Malaysia
138
37,760
140
37,332
-1% 1% 16

17. Asia Pacific Construction Pipeline
Select Cities YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
Guangzhou, China
140
27,945
108
26,022
30% 7%
Chengdu, China
115
24,328 88
20,051
31%
21%
Shanghai, China
125
23,361
121
24,759 3%
-6%
Hangzhou, China 80
17,185 79
17,904 1%
-3%
Jakarta, Indonesia
16,112
101
19,325
-13%
-17%
Done. 17

18. Europe Construction Pipeline
Top Five Countries YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
Germany
320
57,689
247
47,155
30%
22%
United Kingdom
280
40,970
36,487
13%
12%
France
184
22,140
130
15,198
42%
46%
Poland 85
13,317 80
12,221 6% 9%
Spain 76
12,020 75
11,338 1%
Done. 18

19. Europe Construction Pipeline
Select Cities YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
London,
United Kingdom 78
13,632 80
13,722
-3%
<-1%
Dusseldorf, Germany 52
10,178 35
7,606
49%
34%
Paris, France 54
7,946 41
5,877
32%
35%
Hamburg, Germany 32
6,581 24
5,280
33%
25%
Munich, Germany 30
5,780 25
5,543
20% 4%
Done. 19

20. Latin America Construction Pipeline
Top Five Countries YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
Mexico
203
36,188
181
33,071
12% 9%
Brazil
156
25,991
212
34,559
-26%
-25%
Dominican Republic 35
11,053 26
9,452
35%
17%
Cuba
7,933
8,643 -
-8%
Colombia 46
7,267 63
9,623
-27%
-24%
Done. 20

21. Latin America Construction Pipeline
Select Cities YOY by Rooms
Q219
Q218
% Variance
Projects
Rooms
Cancun, Mexico 19
8,947
8,173 - 9%
Mexico City, Mexico 28
4,849 16
2,893
75%
68%
Lima, Peru 31
4,782 33
5,399
-6%
-11%
Cartagena, Colombia
2,954 17
2,968
<-1%
Sao Paulo, Brazil
2,704
3,564
-24%
Done. 21

22. US Transactions with a Reported Selling Price
Average Selling Price Per Room (000s)
Done
2014
2015
2016
2017
2018
YTD 19
>200 Rooms
175
178
138
146
156 41
<200 Rooms
929
1,110
935
802
619
222
Total Transactions
1,104
1,288
1,073
948
775
263 22

23. US Lodging Real Estate: Total Investment by Dollars*
As Buyers
As Sellers
2017
2018
2019 YTD
Privately Held Companies
Equity Funds
4,133
6,233
1,808
4,412
7,287
1,761
Hotel Companies
4,119
9,214
1,740
5,186
6,135
2,624
Individual Owners
3,267
2,652
1,257
2,777
3,576
611
Publicly Traded Companies
REITs
4,451
2,507
1,244
2,107
3,419
1,594
160
1,214
487
1,534
1,153
212
Other Entities
All Other Entities
718
347
352
832
597 87
Total Dollar Volume
16,848
22,167
6,889
Add conversions notes
* $ in millions 23

24. New Brand Announcements Since January 2015*24

25. Takeaways
Pipeline growth slowed from the 1st quarter of 2019 to the 2nd quarter. The 3rd and 4th quarters will tell us if we are headed to a new plateau or if we are in a topping out formation…stay tuned
Many new hotels are expected to open in 2020 and 2021 based on what is under construction now and what is scheduled to start in the next 12 months
Dual-branded developments are the solution to capturing multiple guest profiles
Large stock market swings, trade tariffs, interest rates, and a new election cycle provide a sense of uneasiness
Sales transactions for year-end 2019 are likely to fall far short of 2018 totals
If you are an owner, it is still a great time to sell and take your profits given the sales cycle and looming interest rate hikes 25

26. Thank You JP Ford CHB, ISHC, Principal,
Director of Global Business Development
Office:
Mobile:
DONE