4. Hospitality forecast 2012-14 is a time of significant hotel renovation, with more than 400,000 new or renovated room openings in the U.S. in this current period. That accounts for about 25% of all hotel rooms in the U.S. Renovation investment has been trending upward for 12 quarters Hotel industry’s economy is strongest in the commercial sector New project announcements are on a steady pace to outnumber openings soon Source: Lodging Econometrics

5. Hotel projects and total rooms in pipeline in 2013 Under Construction In PlanningTotal Pipeline ProjectsRoomsProjectsRoomsProjectsRooms Americas1,005141.5k2,665341.3k3,670482.8k EMEA726156.4k52692.9k1,252249.3k Asia Pacific 1,715398.6k641160.8k2,356559.4k Global3,446696.7k3,832549.9k7,2781291.6k Source: Lodging Econometrics

6. The top 5 markets in the Americas for pipeline of hotel projects in 2013 Number of Projects Number of rooms New York13323,756 Washington DC8914,765 Los Angeles438,432 Rio de Janeiro, Brazil276,813 Belo Horizonte, Brazil305,607 Source: Lodging Econometrics

7. New hotel room openings AmericasGlobal 201264k260k 201378k274k 2014105k317k 2015209k678k Source: Lodging Econometrics

8. United States: New hotels and room openings HotelsRooms 201134637,193 201241044,471 201350155,308 201460268,088 Source: Lodging Econometrics

9. 8 trends in hospitality design With insight from designers: Michael Suomi of Stonehill & Taylor Patricia Rotondo of VOA Associates Angela Denney of FRCH Design Worldwide

10. Hospitality trend 1. An emphasis on eco-friendliness and celebrating local craftsmanship

12. Hospitality trend 2. Less pattern, more texture, and pops of color

13. Hospitality trend 3. Seamless technology

14. Hospitality trend 4. A customized experience

15. Hospitality trend 5. Rarefied luxury

16. Hospitality trend 6. Designer-driven branding

17. Hospitality trend 7. Multi-use spaces

18. Hospitality trend 8. Bottom-line driven materials

21. Thank you! John Czarnecki jczarnecki@contractdesign.com