1. Rachel J. Roginsky, ISHC Daniel C. Hanrahan II, MAI, CRE Gregory T. Bohan 76 Canal Street, Boston, MA 02114 ~ 617/722-9916 238 South State Street, Newtown, PA 18940 ~ 215/579-1804 3418 Norfolk Street, Pompano Beach, FL. ~ 954/786-2019 www.pinnacle-advisory.com

2. National Trends – Occupancy and ADR

3. Top and Bottom 5 Markets – Percent RevPAR Change 2003 Top 5 Bottom 5

4. Historical Trends Occupancy ADR RevPAR Historical Trends by Area Historical Trends Occupancy ADR RevPAR Historical Trends by Area Boston / Cambridge

5. Boston / Cambridge Occupancy 1990 – 2003

6. Boston / Cambridge ADR 1990 – 2003

7. Boston / Cambridge RevPAR 1990 – 2003

8. Boston/Cambridge 2003 by Area -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% Back Bay DowntownOther Cambridge Occupancy Avg Rate RevPAR

9. Commercial Demand Leisure Demand Group Demand New Supply Projections Commercial Demand Leisure Demand Group Demand New Supply Projections Boston / Cambridge Outlook 2004

10. Improving Economy Growth in High Tech Industries Financial Services  Improving Stock Market  Consolidation Pharmaceutical and Biotech Improving Economy Growth in High Tech Industries Financial Services  Improving Stock Market  Consolidation Pharmaceutical and Biotech Commercial Demand

11. Improving Economy Weak Dollar More Stable Geopolitical Situation New Low-Cost Air Carriers Improving Economy Weak Dollar More Stable Geopolitical Situation New Low-Cost Air Carriers Leisure Demand

12. Strong Citywide Demand  18 vs 15 in 2003 Strong Short Term Pick-up  Added 2 Large Groups (1,500+ on Peak) Group Definites at the “Big 6” are 14% above last year Strong Citywide Demand  18 vs 15 in 2003 Strong Short Term Pick-up  Added 2 Large Groups (1,500+ on Peak) Group Definites at the “Big 6” are 14% above last year Group Demand

13. Courtyard at 88 Exeter – Back Bay – 81 Rooms - April Hotel Onyx – N. Station – 112 Rooms – May Jurys Doyle – Back Bay – 220 Rooms – June Clarion – N. Station – 88 Rooms – June Hampton Inn and Suites – Crosstown – 175 Rooms – June Courtyard at 88 Exeter – Back Bay – 81 Rooms - April Hotel Onyx – N. Station – 112 Rooms – May Jurys Doyle – Back Bay – 220 Rooms – June Clarion – N. Station – 88 Rooms – June Hampton Inn and Suites – Crosstown – 175 Rooms – June Boston/Cambridge New Supply 2004

14. New Supply 2005-2007 HotelsRooms 2005 1164 2006 51,841 2007 & Beyond 134,953

15. PAG Projections 2004 20032004Change Occupancy70.3%72.3%2.8% Average Rate $152.71$155.762.0% RevPAR$107.36$112.614.9%

16. 1.6 million square feet Third largest in the Mid Atlantic and Northeast Grand Opening June 24, 2004 Westin Headquarters Hotel Open June 2006 Boston Convention and Exhibition Center

17. Closure of the Hynes  Could be sold July 1, 2006 Room Blocks  BCEC Groups will be required to use Back Bay Hotels Marketing Leadership Facility Location The Future Of the Boston Convention Market

18. Boston is no longer a “Backwater” Completion of the Big Dig is already having a positive effect World-Class Convention Center Excellent Transportation Infrastructure $14.6 Billion on Big Dig $1.2 Billion on Logan Modernization The Changing Face of Boston

19. Nationally: the floodgates are wide open Boston: the gates are still closed Capital Markets

20. 76 Canal Street Boston, MA 02114 ~ 617/722-9916 238 South State Street, Newtown, PA 18940 ~ 215/579-1804 3418 Norfolk Street, Pompano Beach, FL 33062 ~ 954/786-2019 www.pinnacle-advisory.com PINNACLE ADVISORY GROUP