1. Source: 2011 Smith Travel Research, Inc. Hotel InduSTRy Overview Vail R. Brown Vice President, Global Sales & Marketing

2. Source: 2011 Smith Travel Research, Inc. Agenda: 18 May 2011  U.S. Hotel Performance  Indiana Hotel Performance  Indiana Markets & Beyond  Outlook

3. Source: 2011 Smith Travel Research, Inc. U.S. Hotel Performance 2011 – So far, so … blah

4. Source: 2011 Smith Travel Research, Inc. Total U.S.: Key Statistics 1 st Quarter 2011 % Change Hotels 52k Room Supply432 mm 1.0% Room Demand237 mm 6.7% Occupancy54.9% 5.7% A.D.R. $99 3.1% RevPAR$55 9.0% Room Revenue$23.6 bn10.0% ADR Finally Contributing to RevPAR Growth

5. Source: 2011 Smith Travel Research, Inc. Demand Leads ADR….Swings Get More Extreme -6.9% -4.7% -0.9% -4.6% -0.2% -8.7% 1.6% Total U.S.: ADR & Demand % Change Twelve Month Moving Average : Jan. 1989 – March 2011

6. Source: 2011 Smith Travel Research, Inc. 41 Months 30 Months Total U.S.: Actual ADR Twelve Month Moving Average: Jan. 2000 – March 2011 Absolute ADR Will Not Recover for At Least 2 Years -$3.70 -$10.60

7. Source: 2011 Smith Travel Research, Inc. Hopeful ADR growth will continue to drive RevPAR growth Total U.S. Low Growth Forecast High Growth Supply1.00.70.4 Demand2.12.53.0 Occupancy1.11.82.6 ADR3.74.24.8 RevPAR4.86.17.4 2011 Total U.S. Outlook

8. Source: 2011 Smith Travel Research, Inc. Indiana Overview

9. Source: 2011 Smith Travel Research, Inc. Indiana: Key Statistics 1 st Quarter 2011 %Change Hotels961 Rooms85,285 STR Sample76.2% Occupancy46.5% 4.6% ADR$76.42 3.4% RevPAR$35.54 8.2% Room Revenue $271.4M 9.9% State’s RevPAR driven by OCC & ADR…good thing.

10. Source: 2011 Smith Travel Research, Inc. Indiana: Supply & Demand % Change Twelve Month Moving Average: Jan. 2001 – March 2011 Historically: Builds Into Downturns…

11. Source: 2011 Smith Travel Research, Inc. Indiana: Active Development Pipeline March 2011 PhasePropertiesRooms In Construction10895 Final Planning121,196 Planning312,936 Active Pipeline535,027 Pre-Planning151,389 Total686,416 IF All Active Pipeline Opens…over 5.5% Room Supply Increase!

12. Source: 2011 Smith Travel Research, Inc. Indiana: OCC & ADR % Change Twelve Month Moving Average: Jan. 2001 – March 2011 OCC Growth is Back…ADR Growth much Slower!?

13. Source: 2011 Smith Travel Research, Inc. 31 Months Indiana: Actual ADR ($) Twelve Month Moving Average: Jan. 2001 – March 2011 ADR discounts not as extreme as U.S…BUT still takes time! -$4.81

14. Source: 2011 Smith Travel Research, Inc. Indiana Segments Customer Segmentation: o Transient – Third party, rack rate, government rate, etc. o Group – Rooms booked in blocks of 10 or more. Combine Chain Class: Aggregate of branded hotels & independents. o Luxury/Upper Upscale/Upscale o UpperMidscale/Midscale/Economy

15. Source: 2011 Smith Travel Research, Inc. Transient Demand back since 1Q 2010…ADR Growth? Indiana: Transient Room Demand & ADR % Change By Month: Jan. 2004 – March 2011

16. Source: 2011 Smith Travel Research, Inc. Group Demand & ADR Growth pretty in-sync…A good thing. Indiana: Group Room Demand & ADR % Change By Month: Jan. 2004 – March 2011

17. Source: 2011 Smith Travel Research, Inc. 2011 STR Chain Segments Selected Brands from each segment Luxury – Four Seasons, Ritz Carlton, Fairmont, InterContinental Upper Upscale – Hyatt, Embassy Suites, Hilton, Marriott Upscale – Hyatt Place, Hilton Garden Inn, Courtyard, Hotel Indigo Upper Midscale – Best Western PLUS/Premier, Hampton Inn, Fairfield Inn Midscale – Best Western, Country Inn & Suites, La Quinta Inn, Sleep Inn Economy – America’s Best Inn, Econolodge, Red Roof, Days Inn

18. Source: 2011 Smith Travel Research, Inc. Appears to be a Top Down Recovery… Indiana: Combine Chain Class Demand % Change by Month through March 2011

19. Source: 2011 Smith Travel Research, Inc. ADR Data is “Less Bad”…need consistent growth. Indiana: Combine Chain Class ADR % Change by Month through March 2011

20. Source: 2011 Smith Travel Research, Inc. Indiana Markets & Beyond….

21. Source: 2011 Smith Travel Research, Inc. Indy new room supply leader… Indiana Markets: Room Supply % Change 12 Month Moving Average Jan. 2002 – March 2011

22. Source: 2011 Smith Travel Research, Inc. Good News: Strong room demand across the board! Indiana Markets: Room Demand % Change 12 Month Moving Average Jan. 2002 – March 2011

23. Source: 2011 Smith Travel Research, Inc. Indiana Markets & Sub-Markets: Occupancy & % Change 1 st Quarter 2011 0.9% 8.7% 2.3% 2.5% 3.3% Indy highest OCC % but Gary MSA largest OCC Growth

24. Source: 2011 Smith Travel Research, Inc. Indiana Markets & Sub-Markets: Actual ADR & % Change 1 st Quarter 2011 3.6% 3.4% 4.2% 7.0% 2.1% 2.8% Strong ADR Growth for Evansville-Henderson MSA

25. Source: 2011 Smith Travel Research, Inc. 2012 Outlook …What May Be

26. Source: 2011 Smith Travel Research, Inc. Total U.S.: Supply/Demand % Change 2005 – 2012P Minimal Supply Growth in 2012

27. Source: 2011 Smith Travel Research, Inc. Total U.S. & Chain Scale: 2012 Outlook Occupancy (% chg) ADR (% chg) RevPAR (%chg) Luxury -0.811.510.7 Upper Upscale 2.28.410.6 Upscale 1.97.39.2 Upper Midscale 2.56.99.4 Midscale 1.25.97.1 Economy 2.04.96.9 Independent 1.66.58.1 Total U.S. 1.76.8 8.5 2012: Hit RevPAR peaks of 2006 (hopefully!)

28. Source: 2011 Smith Travel Research, Inc. Occupancy hitting 60%+ Remains Elusive Total U.S.: Annual Occupancy % 2005 – 2012P

29. Source: 2011 Smith Travel Research, Inc. What If since 2000 ADR had increased by CPI each year? Note: 2011 & 2012 CPI forecast from Blue Chip Economic Indicators Total U.S.: Annual ADR 2000 – 2012P

30. Source: 2011 Smith Travel Research, Inc. Takeaways New Hotel Supply Muted in ‘11 & ‘12 Demand Rebounds (Strongly) ADR Growth Started Strong…Keep It Up!? Indiana Transient Rate Growth Needed

31. Source: 2011 Smith Travel Research, Inc. Thank you! vail@str.com For a copy of this presentation go to www.hotelnewsnow.com