1. SAN DIEGO RevPar: Past, Present & Future 24 May 2010 Bobby Bowers Smith Travel Research / STR Global

2. bobby@str.com www.strglobal.com 615.824.8664 x3321 Want a copy of the presentation? Have questions about the presentation?

3. Total United States Key Performance Indicators Percent Change April 2010 – Trailing 12 Months & Year-to-Date

4. Total United States Room Supply/Demand Percent Change Twelve Month Moving Average – 1989 to April 2010 2008 Smith Travel Research, Inc. 2.9% -1.7% -1.1% - 4.8% - 6.9%

5. Total United States Occupancy/ADR Percent Change Twelve Month Moving Average – 1989 to April 2010 -3.4% -6.8% -4.5% -7.4% -4.7% 0.1% -9.6%

6. Total United States RevPAR Percent Change Twelve Month Moving Average – 1989 to April 2010 2008 Smith Travel Research, Inc. -10.5% - 11.5% -16.8%

7. Top 25 Markets versus rest of U.S. Key Performance Indicators Percent Change April 2010 YTD

8. Chain Scales

9. STR Chain Scales Selected Brands by Category Luxury – Four Seasons, Ritz Carlton, Fairmont Upper Upscale – Marriott, Hilton, Hyatt, Sheraton Upscale – Cambria, Courtyard, Hilton Garden Inn Midscale with F&B – Ramada, Holiday Inn, Best Western Midscale no F&B – Comfort Inn, Fairfield Inn, H.I. Express Economy – Econolodge, Days Inn, Red Roof

10. Chain Scales Supply/Demand Percent Change April 2010 YTD

11. Chain Scales Occupancy/ADR Percent Change April 2010 YTD

12. San Diego

13. San Diego Key Market Facts 464 hotels / 58k rooms 310 rooms under construction - 0.5% $1.6 billion annual room revenue 41% room revenue - Downtown 41% room revenue – Luxury / Upper Up 2009 ADR fell 20.2% - # 6 among top 25

14. San Diego Key Performance Indicators Percent Change April 2010 – Trailing 12 Months & Year-to-Date

15. San Diego Weekday / Weekend Percent Change April 2010 YTD Weekends = Friday / Saturday

16. San Diego – Luxury, Upper Upscale, Upper Tier Independents Transient / Group - Percent Change April 2010 YTD

17. San Diego Key Indicators - Percent Change May 1 – 15, 2010

18. San Diego Room Supply/Demand Percent Change Twelve Month Moving Average – January 2000 to April 2010 2008 Smith Travel Research, Inc. 2.8% -0.3% -7.8% -8.4%

19. San Diego Occupancy/ADR Percent Change Twelve Month Moving Average – January 2000 to April 2010 -8.2% -3.0% -11.9% -3.7% -11.4%

20. San Diego RevPAR Percent Change Twelve Month Moving Average – January 2000 to April 2010 2008 Smith Travel Research, Inc. -21.2% - 14.6%

21. San Diego RevPAR - Monthly Percent Change January 2008 – April 2010 2009 2008

22. San Diego Occupancy - Monthly Percent Change January 2008 – April 2010 2009 2008

23. San Diego Average Daily Rate - Monthly Percent Change January 2008 – April 2010 2009 2008

24. Key 15 Markets RevPar Percent Change April 2010 YTD Excludes Las Vegas

25. Key 15 Markets Occupancy Percent Change April 2010 YTD Excludes Las Vegas

26. Key 15 Markets ADR Percent Change April 2010 YTD Excludes Las Vegas

27. San Diego Chain Scales - Revenue Share (%) Twelve Months Ending March 2010 Annual San Diego revenue room = $1.6 billion

28. San Diego - Chain Scales Occupancy/ADR Percent Change 2010 April YTD

30. San Diego Sub Markets - Revenue Share (%) Twelve Months Ending April 2010 Annual San Diego revenue room = $1.6 billion

31. San Diego Sub Markets Occupancy/ADR Percent Change April 2010 YTD

32. San Diego Sub Markets Occupancy Percent April 2010 YTD

33. San Diego – Sub Markets Average Daily Rate April 2010 YTD

34. Projections

35. U.S. Economic Outlook Blue Chip Economic Indicators – May 2010 20092010F2011F Real GDP-2.4%+3.2%+3.1% CPI-0.4%+2.0%+1.9% Corporate Profits -3.8% +19.4% +8.1 % Disp Personal Income+0.9%+1.3%+2.6% Unemployment Rate 9.3% 9.6% 8.9%

36. Total United States Active Development Pipeline - Rooms Change From Prior Year April 2010 April 2009 Change % Chg In Construction 77,404 170,242 -92,838 -54.5% “Planned” Pipeline 289,676 363,326 -73,650 -20.3% Planned Pipeline includes projects in Final Planning and Planning phases Source: STR / TWR / Dodge Construction Pipeline

37. Total United States Key Performance Indicators Percent Change Full Year 2009 Actual & 2010 / 2011 Forecast

38. San Diego, CA Market Supply & Demand Outlook 2008-2010F Annual vs. Prior Year

39. San Diego, CA Market Occupancy, ADR, RevPAR Outlook 2008-2010F Annual vs. Prior Year

40. San Diego ADR Percent Change vs. U.S. Inflation

41. Takeaways Value is King – What’s distinctive about your product? Performance trough likely past Supply growth slowing Demand slowly improving Pricing conditions improving Moderate improvement 2010 Meaningful growth anticipated 2011