1. GREATER BOSTON LODGING OUTLOOK 2003
Develop 2003 forecast and update summary slide.
Rachel J. Roginsky, Principal
Pinnacle Advisory Group

3. U.S. Lodging Market

4. Total United States Key Performance Indicators Percent Change May Year to Date
Update Monthly
Source: Smith Travel Research
Note: Preliminary May 2002

5. New England Lodging Market

6. New England States YTD May 2002 Change in Occupancy, Average Rate and RevPAR
Source: Smith Travel Research

7. Suburban Boston Lodging Market

8. Suburban Boston Occupancy 1996 - 2001
Source: Smith Travel Research

9. Suburban Boston Average Daily Rate 1996- 2001
Source: Smith Travel Research

10. Suburban Boston RevPAR 1996 - 2001
Source: Smith Travel Research

11. Suburban Boston YTD May 2002
2001
2002
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %
Source: Smith Travel Research

12. Suburban Boston Change in Occupancy, Average Rate and RevPAR by Quarter 1Q 2001 - 2Q 2002
Source: Smith Travel Research

13. Suburban Boston 2002 * Limited Boston Related Demand
* Improved Corporate Demand
* Slower Supply Growth
* Limited ADR Growth
* 9/11 Effect (Year over Year Growth)

14. Suburban Boston 2002 Projection
2001
2002
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %

15. Suburban Boston 2003 * Lack of Boston-Related Demand
* Improved Corporate Demand
* Limited Supply Growth
* Minor ADR Growth

16. Suburban Boston 2003 Projection
2002
2003
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %

17. Boston / Cambridge Lodging Market

18. Boston/Cambridge Occupancy 1997 - 2001
Source: Pinnacle Perspective

19. Boston/Cambridge Average Daily Rate 1997-2001
Source: Pinnacle Perspective

20. Boston/Cambridge RevPAR 1997 - 2001
Source: Pinnacle Perspective

21. Boston/Cambridge 2001 Change in RevPAR by Market Area
Source: Pinnacle Perspective

22. Boston/Cambridge YTD June 2002
2001
2002
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %
Source: Pinnacle Perspective

23. Boston/Cambridge YTD June 2002 RevPAR Change By Market Area
Source: Pinnacle Perspective

24. Boston/Cambridge Occupancy by Quarter 1Q 2000 – Q4 2002
Source: Pinnacle Perspective

25. Boston/Cambridge Average Daily Rate by Quarter 1Q 2000 – 2Q 2002
Source: Pinnacle Perspective

26. Boston/Cambridge RevPAR by Quarter 1Q 2000 – 2Q 2002
Source: Pinnacle Perspective

27. Boston/Cambridge Change in Occupancy, Average Rate and RevPAR by Quarter 1Q 2001 - 2Q 2002
Source: Pinnacle Perspective

28. Boston/Cambridge 2002 * Corporate Demand * Leisure Demand
Some signs of improvement
The recovery?
* Leisure Demand
Likely to remain strong
Rate Driven and Regional
* Group Demand
Pace is ahead of ’01 the rest of the year
* New Supply
Minor – Only 1.9 percent

29. Boston Cambridge 2002 Projection
2001
2002
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %

30. Boston/Cambridge 2003 * Corporate Demand * Leisure Demand
Continued Improvement
Negotiated Rates are flat to –10%
* Leisure Demand
Return of International
Increased Rates after 1Q
* Group Demand
Weak 1Q, Moderate Remainder
* New Supply
Major – 5.5%

31. New Supply 2002 - 2003 Nine Zero – 6/02 Hampton Inn Cambridge – 6/02
Ritz Carlton – 11/02
Commonwealth Hotel – 9/02
Kimpton Cambridge – 3/03
Residence Inn C’Town – 3/03
Embassy Suites – 3/03

32. Boston Cambridge 2003 Projection
2002
2003
% Chg
Occupancy % % %
Average Daily Rate $ $ %
RevPAR $ $ %

33. GREATER BOSTON LODGING OUTLOOK 2003
Develop 2003 forecast and update summary slide.
Rachel J. Roginsky, Principal
Matthew R. Arrants, Director
Pinnacle Advisory Group