1. AHLA in 2014: Engaging for Impact Hospitality Asset Managers Association September 17, 2014

2. A Stronger, More Focused AHLA New staff, new logo, new office, new membership model, new focus Representation from all segments to speak with one voice for the entire industry Growing presence in Washington, DC and across the country Deliver value to the bottom line of all industry participants

3. Expanding Membership January 2014September 2014 8,663 properties19,559 properties 1.37 million rooms2.48 million rooms Industry Totals: 52,887properties; 4,926,543 guestrooms

4. Workforce Issues Technology and Distribution Travel & Tourism “Enterprise” Issues Political Involvement Advocacy: Areas of Focus

5. Workforce: Building Our Case National Survey of Hotel Wages & Benefits – AHLA & WageWatch 98% of hotels state that at least some of their department heads began in minimum wage positions. Nearly 40% of hotels pay 100% of their workforce above the minimum wage. Over 80% of minimum wage workers in industry are eligible for promotion within 1 year; virtually 100% eligible in less than 2 years. More than 85% of respondents provide health insurance for non- exempt employees.

6. Workforce: Telling Our Positive Industry Story

7. Workforce: Focused on Wage Initiatives Federal - $10.10 proposal Seattle - $15.00 enacted San Diego – $11.50 passed; referendum pending to repeal Los Angeles - $15.37 proposal for hotels only Campaign Trail – Support for modest state increases from conservative Republican Senate candidates Tom Cotton (AR) and Dan Sullivan (AK)

8. Workforce: Immigration Reform Comprehensive reform passed in Senate 68-32. Stalled in the House. In early September, the President delayed executive orders until after the midterm elections. Executive orders are expected to focus on the 11 million undocumented immigrants, deferring deportation proceedings on some, and providing access to more guest worker visas. White House meeting with business groups, but mainly focused on high tech industry.

9. NLRB Division of Advice ruled – McDonald’s USA and McDonald’s franchisee are joint employers Cases will be appealed; potential for significant impact on lodging industry should this ruling be adopted more broadly Coalition efforts underway 40 Hour for Full Time Employee Under ACA Working with coalition – “More Time for Full Time” Potential for movement if Senate flips Workforce: Other Issues NLRB decision re: Joint Employer

10. Technology & Distribution $13.6 B $9.5 B $9.8 B $538 B $17.4 B $66.4 B $385 B $163 B $10 B $15.2 B

11. Short Term Online Rentals: The Issues Protecting Consumers - 1) Smoke detectors, sprinkler systems and fire extinguishers; 2) Effective door locks that prevent intruders or prior guests from gaining entry; 3) Regular health and safety inspections by state or local agencies. Safeguarding Communities – 1) Limiting short-term rentals in multi-unit buildings; 2) Requiring short-term rental providers to carry insurance; 3) Providing notice to the surrounding community when a new short-term rental property is registered. Companies Competing on a Level Playing Field - 1) Collecting and remitting local occupancy and sales taxes; 2) Obtaining proof of proper licensing of properties listed on websites; 3) Displaying applicable laws on websites.

12. Short Term Online Rentals: The Debates Jackson Hole NYC

13. Short Term Online Rentals: The Coalition

14. Short Term Online Rentals: The Advocate Toolkit

15. Short Term Online Rentals: The Website

16. Online Consumer Deception: A New Focus for AHLA Shine the light on deceptive practices by OTCs and others; negative impact on consumers and your businesses Meeting with the FTC and outreach to Congress Collaborative effort with the Consumer Innovation Forum

17. Travel/Tourism & Enterprise Issues Terrorism Risk Insurance (TRIA): Seeking program reauthorization (expires 12/31/14) Passed Senate 93-4; stalled in the House Jobs Originated Through Launching Travel (JOLT) Act: In Senate-passed immigration bill; House bill has 165+ bipartisan cosponsors With no immigration bill likely in 2014, standalone strategy Travel Promotion Act (Brand USA): House passed reauthorization bill on huge bipartisan vote (347- 57) Senate passage very possible this year

18. HotelPAC Voluntary, bi-partisan PAC formed to help elect federal candidates who support the lodging industry Strengthen industry’s political voice Educate and mobilize members to become more politically active Support candidates who promote legislation and policies that create a favorable business environment

19. 2014 Federal Political Outlook Can Republicans take the Senate? 6 seats needed Can Democrats take the House? 17 seats needed

20. 2008 Pendulum 7 Democratic Seats in States Won by Romney - AK, AR, LA, MT, NC, SD, WV 3 of these are open seats – MT, SD, WV 4 have Democratic incumbents – AK, AR, LA, NC

21. US House Outlook Current Makeup: 233 GOP, 199 Dem 218 Needed for Majority Democrats Need 17 Seats for Takeover Currently approximately 38 competitive seats.