Hh National Ahla3 Q10

VOLUME IV - ISSUE III SEPTEMBER - NOVEMBER 2010 EDITION PRICE: $595
NATIONAL ECONOMIC SUMMARY NATIONAL HOTEL MARKET SUMMARY
NATIONAL FORECAST SUMMARY
Year Occ ! Occ ADR !"ADR RevPAR !"RevPAR
NATIONAL SNAPSHOT: NEXT FOUR QUARTERS 2005 63.0% 2.9% $91.05 5.6% $57.35 8.6%
2006 63.1% 0.2% $97.95 7.6% $61.85 7.9%
2007 62.8% -0.5% $104.22 6.4% $65.49 5.9%
2008 59.9% -4.6% $107.19 2.9% $64.23 -1.9%
Occupancy 2009 54.6% -8.8% $97.89 -8.7% $53.48 -16.7%
2010F 57.5% 5.2% $97.33 -0.6% $55.93 4.6%
2011F 58.7% 2.1% $100.98 3.8% $59.23 5.9%
2012F 61.0% 4.0% $107.33 6.3% $65.49 10.6%
Average Daily Rate 2013F 62.7% 2.7% $115.77 7.9% $72.54 10.8%
2014F 62.3% -0.6% $122.22 5.6% $76.10 4.9%
Long Run Averages - 1988 to 2009
Revenue Per Available Room Source: Colliers PKF Hospitality Research, Smith Travel Research
** See Appendix for exhibit descriptions
Supply* * Dark blue indicates above long-term average
Demand
Source: Colliers PKF Hospitality Research Source: Colliers PKF Hospitality Research, Smith Travel Research
RevPAR: 2.3%ADR: 2.9%Occupancy: 62.1%
NATIONAL PLUS Edition
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
NumberofStandardDeviations
NATIONAL ECONOMIC SUMMARY NATIONAL HOTEL MARKET SUMMARY
NATIONAL SNAPSHOT: NEXT FOUR QUARTERS
Exhibit 1**: Performance Grade vs. Long Run Average
The arrows show the forecast direction of change over the next 4
quarters vs. the previous 4 quarters. Light blue indicates above the
long run average, and dark blue indicates below.
∆ ∆
www.pkfc.com Next 4 Quarter Forecast
RevPAR Snapshot
-6.8%
6.6%
Last 4 Next 4
VOLUME IV - ISSUE III PRICE: $595SEPTEMBER - NOVEMBER 2010 EDITION
American
Hotel & Lodging
Association
COMPLIMENTARY COPY for NEW and RENEWING AH&LA MEMBERS
Colliers PKF Hospitality Research (PKF-HR) relies on Moody’s
Economy.com for guidance on macroeconomic variable movements.
Their forecasts are translated into future lodging industry performance
through a set of proprietary econometric models. The demand model
relies heavily on the movements of Total Employment and Real
Personal Income, along with ADR, to predict future room sales.
Both employment and income reached their cyclical low point in the
fourth quarter of 2009. The initial quarter of 2010 was the first period
of positive growth for the two economic variables, and while that
growth was modest, hotel demand reacted strongly. The price
elasticity of demand to fundamental economic drivers changes over the
course of a cycle. It is somewhat inelastic during times of normal
economic growth and highly elastic during times of economic decline
and recovery. A high level of price elasticity exists today following a
dramatic decline in ADR and translates into large levels of demand
movement. This pricing environment is expected to persist into 2011,
and then economic fundamentals will likely take over to elevate
demand.
Moody’s Economy.com expects income to reach its historical peak
again by the second quarter of 2011, and employment to fully recover
by the first quarter of 2013. The lag between these two variables can
be attributed to the severity of the loss each experienced during the
downturn. The US lost 6% of its entire employment base (8.3m), while
income only declined 3%, suggesting the jobs eliminated were low
income in nature.
As the outlook for the U.S. economy improves, so does our Hotel
Horizons® lodging forecast. Colliers PKF Hospitality Research (PKF-
HR) is forecasting a 4.6 percent increase in RevPAR for 2010. This
is a significant improvement over the 1.7 percent increase we
forecast back in June of this year.
The primary factor driving the improved forecast is the growth in
lodging demand. According to Smith Travel Research (STR), rooms
sold at U.S. hotels was 7.0 percent greater during the first half of
2010 as compared to the same period in 2009. Supported by our
econometric analysis, we believe demand for hotel rooms was
stimulated by the steep decline in room rates over the past six
quarters. Accordingly, PKF-HR has increased its forecast of lodging
demand growth for the year from 4.7 percent to 7.3 percent.
Despite the strong increase in demand, operators continue to struggle
to raise room rates. STR data shows that the ADR for U.S. hotels
declined 2.0 percent from the first half of 2009. Pricing power will
return to a limited degree during the second half of 2010, room rates
are still forecast to decline by 0.6 percent on an annual basis.
Alas, a quicker recovery in 2010 will lead to a more modest year in
2011. PKF-HR is forecasting RevPAR to increase 5.9 percent next
year. The interesting question we have been pondering is, “How
much will the demand for rooms suffer as room rates rise in 2011?"
Occupancy will increase to 58.2%, better than the previous 4
quarters' rate of 55.8%, but below the long run average of 62.1%
ADR growth expectations are increasing, positive 2.2% vs. the past
4 quarters' rate of negative 5.6%, but are below the long run
average of positive 2.9%
RevPAR growth projections for the next 4 quarters are climbing to
6.6% as compared to the past 4 quarters' rate of negative 6.8%,
and are greater than the long run average of positive 2.3%
Supply growth is less active, 1.4% vs. the past 4 quarters' rate of
2.8%, and under the long run average of 2.0%
Forecast demand growth is climbing, 5.8% vs. the past 4 quarters'
rate of 1.5%, and is greater than the long run average of 1.3%

SEPTEMBER - NOVEMBER 2010 EDITION NATIONAL PLUS
National Economic Summary
*See Appendix for exhibit descriptions *See Appendix for exhibit descriptions
*See Appendix for exhibit descriptions
P. 2 | COLLIERS PKF HOSPITALITY RESEARCH
Below are a select number of variables that drive the Colliers PKF-HR econometric forecasts contained in this report. Income and employment are
important barometers of economic health and are used in every Hotel Horizons® forecast model. The lodging market is part of the larger economy,
and the forces that affect us nationally also affect lodging, but in different magnitudes and time periods (see Exhibits 4 and 5 below). Exhibits 2 - 6
provide an overview of current economic history and forecast, and provide explanation of what to expect in the future, and how that affects the lodging
industry.
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010F
2012F
Real Personal Income
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010F
2012F
Total Payroll Employment
1.2%
2.9%
2.7% 2.7%
1.8%
2.3%
3.6%
3.3%
0.0%
1.0%
2.0%
3.0%
4.0%
Change in Total Employment Change in Consumer Price Index Change in Gross Metro Product Change in Real Personal Income
US 1988 to 2009 US 2010 to 2014
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
2009.1
2009.2
2009.3
2009.4
2010.1
2010.2
2010.3
2010.4
2011.1
2011.2
2011.3
2011.4
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Employment (Left) Demand (Right)
Source: Moody's Economy.com
Source: Moody's Economy.com Source: Moody's Economy.com
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
2009.1
2009.2
2009.3
2009.4
2010.1
2010.2
2010.3
2010.4
2011.1
2011.2
2011.3
2011.4
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Income (Left) RevPAR (Right)
Source: Moody's Economy.com, Colliers PKF-HR, Smith Travel Research Source: Moody's Economy.com, Colliers PKF-HR, Smith Travel Research
See graph below See graph below
HOTEL HORIZONS® SEPTEMBER - NOVEMBER 2010 EDITION NATIONAL PLUS
Exhibit 2*: Income Change Exhibit 3*: Employment Change
Exhibit 4*: Quarterly Income vs. RevPAR Change Exhibit 5*: Quarterly Employment vs. Demand Change
Exhibit 6*: Average Annual Growth Rates

National Hotel Summary
Exhibit 7*: Compound Average Annual ADR Change 2005 to 2009 Exhibit 8*: Compound Average Annual RevPAR Change 2005
Exhibit 9*: Compound Average Annual ADR Change 2010 to 2014 Forecast Exhibit 10*: Compound Average Annual RevPAR Change 201
*See Appendix for exhibit descriptions
The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2005 to 2014. Used as a relative
benchmark, each market segment is plotted against a common index value of 2005 = 100. This method provides clear insight of how each market
segment performed and is expected to perform in relation to others in the specified period. The charts on the right compare near-term historical
compound annual growth rates (CAGR) to the CAGRs for the forecast period.
0.6%
3.2%
1.8%
1.2%
0.3%
-0.3%
-1.0% 0.0% 1.0% 2.0% 3.0% 4.0%
Economy
Midscale w/o F&B
Midscale W/ F&B
Upscale
Upper Upscale
Luxury
-3.3%
-0.9%
-2.8%
-2.2%
-2.3%
-3.5%
-4.0% -3.0% -2.0% -1.0% 0.0%
Economy
Midscale w/o F&B
Midscale W/ F&B
Upscale
Upper Upscale
Luxury
2.3%
6.6%
2.1%
5.3%
5.0%
7.8%
0.0% 3.0% 6.0% 9.0%
Economy
Midscale w/o F&B
Midscale W/ F&B
Upscale
Upper Upscale
Luxury
1.7%
8.5%
1.0%
7.0%
7.4%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Economy
Midscale w/o F&B
Midscale W/ F&B
Upscale
Upper Upscale
Luxury
1.3%
8.4%
-2.1%
6.2%
2.0%
3.7%
-2.8%
0.7%
-6.5%
1.7%
0.1%
2.0%1.8%
5.2%
-2.1%
4.6%
3.3%
2.2%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Economy Midscale w/o F&B Midscale W/ F&B Upscale Upper Upscale Luxury
Historical Demand Change 1988-2009
Historical Demand Change 2005-2009
Forecast Demand Change 2010-2014
Source: Colliers PKF Hospitality Research, Smith Travel Research
Exhibit 9*: Compound Average Annual ADR Change
2010 to 2014 Forecast
Exhibit 8*: Compound Average Annual RevPAR Change
2005 to 2009
Exhibit 10*: Compound Average Annual RevPAR Change
2010 to 2014 Forecast
Exhibit 7*: Compound Average Annual ADR Change
2005 to 2009
Exhibit 11*: Historical vs. Forecast Compound Average Annual Demand Change

National Hotel Summary
The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2005 to 2014. Used as a relative
benchmark, each market segment is plotted against a common index value of 2005 = 100. This method provides clear insight of how each market
segment performed and is expected to perform in relation to others in the specified period.
80
90
100
110
120
130
140
150
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Luxury
Upper Upscale Upscale
Midscale W/ F&B
80
90
100
110
120
130
140
150
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Midscale w/o F&B
Economy
90
100
110
120
130
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Luxury
Midscale W/ F&B
90
100
110
120
130
140
150
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Midscale w/o F&B
Economy
80
85
90
95
100
105
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Midscale w/o F&B Economy
80
85
90
95
100
105
110
2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
All Luxury
Midscale W/ F&B
Exhibit 14*: Lower-Priced Average Daily Rate (ADR)
Exhibit 12*: Lower-Priced Hotel Occupancy Exhibit 13*: Upper-Priced Hotel Occupancy
Exhibit 15*: Upper-Priced Average Daily Rate (ADR)
Exhibit 16*: Lower-Priced RevPAR Exhibit 17*: Upper-Priced RevPAR

National Forecast - All Hotels
Year Period Occ !"Occ ADR !"ADR RevPAR !"RevPAR !"Supply !"Demand
2005 Annual 63.0% 2.9% $91.05 5.6% $57.35 8.6% -0.1% 2.8%
2006 Annual 63.1% 0.2% $97.95 7.6% $61.85 7.9% 0.2% 0.5%
2007 Annual 62.8% -0.5% $104.22 6.4% $65.49 5.9% 1.3% 0.8%
2008 1 57.2% -3.3% $108.78 5.2% $62.24 1.7% 2.0% -1.4%
2008 2 64.3% -3.2% $108.15 4.4% $69.51 1.0% 2.3% -1.0%
2008 3 65.5% -4.0% $107.55 3.1% $70.40 -1.0% 2.6% -1.5%
2008 4 52.7% -8.3% $103.92 -1.6% $54.74 -9.8% 3.0% -5.6%
2008 Annual 59.9% -4.6% $107.19 2.9% $64.23 -1.9% 2.5% -2.3%
2009 1 50.8% -11.3% $100.64 -7.5% $51.10 -17.9% 3.1% -8.5%
2009 2 57.2% -11.1% $97.89 -9.5% $55.96 -19.5% 3.0% -8.4%
2009 3 60.2% -8.0% $97.13 -9.7% $58.48 -16.9% 3.1% -5.2%
2009 4 50.3% -4.5% $96.09 -7.5% $48.34 -11.7% 3.0% -1.6%
2009 Annual 54.6% -8.8% $97.89 -8.7% $53.48 -16.7% 3.0% -6.0%
2010 1 52.0% 2.3% $96.34 -4.3% $50.05 -2.0% 2.7% 5.1%
2010 2 60.7% 6.2% $97.87 0.0% $59.44 6.2% 2.3% 8.7%
2010F 3 64.2% 6.7% $98.00 0.9% $62.94 7.6% 1.8% 8.6%
2010F 4 52.8% 5.0% $96.83 0.8% $51.15 5.8% 1.4% 6.4%
2010F Annual 57.5% 5.2% $97.33 -0.6% $55.93 4.6% 2.0% 7.3%
2011F 1 53.6% 3.1% $100.51 4.3% $53.84 7.6% 1.7% 4.8%
2011F 2 62.3% 2.5% $100.65 2.8% $62.67 5.4% 0.7% 3.3%
2011F 3 64.9% 1.0% $101.82 3.9% $66.05 4.9% 0.5% 1.5%
2011F 4 53.9% 2.1% $100.80 4.1% $54.36 6.3% 1.6% 3.7%
2011F Annual 58.7% 2.1% $100.98 3.8% $59.23 5.9% 1.1% 3.2%
2012F Annual 61.0% 4.0% $107.33 6.3% $65.49 10.6% 0.8% 4.9%
2013F Annual 62.7% 2.7% $115.77 7.9% $72.54 10.8% 1.2% 3.9%
2014F Annual 62.3% -0.6% $122.22 5.6% $76.10 4.9% 2.3% 1.7%
National Financial Benchmarks* - All Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
Food and Beverage Revenue
Total Departmental Costs
Total Departmental Income
Undistributed Operating Expenses
Gross Operating Profit
Management Fees, Property Taxes, and Insurance
Net Operating Income**
*Data from 2010 "Trends® in the Hotel Industry" report Source: Colliers PKF Hospitality Research
**Before deductions for capital reserves, rent, interest, income taxes, depreciation, and amortization.
92
2010 Estimate2009 Actual
92
2008 Actual
92
59.9% 57.5%
$97.33$107.19 $97.89
54.6%
77.0%
20.1%
$64.25
19.5%
$53.48
2009 Actual
Percent of Total Revenue
2008 Actual 2010 Estimate
$55.93
41.3%
19.4%
77.8%
25.2%
33.5%
17.5%
7.9%
21.6%
58.7%
8.4%
21.3%
12.9% 13.4%
8.2%
37.1%
57.2%
42.8%
58.4%
35.6%
77.6%
41.6%
For a more comparable and detailed financial comparison, we recommend a Colliers PKF Benchmarker report. Please contact Claude Vargo at
(404) 842-1150, ext. 237 for more information.
National Financial Benchmarks* - All Hotels

National Forecast - Luxury Hotels
2005 Annual 70.1% 4.1% $246.08 6.9% $172.60 11.3% -0.4% 3.7%
2006 Annual 71.5% 1.9% $269.60 9.6% $192.73 11.7% 4.5% 6.6%
2007 Annual 71.4% -0.2% $290.62 7.8% $207.43 7.6% 3.8% 3.6%
2008 1 68.0% -3.8% $303.64 3.9% $206.40 0.0% 4.2% 0.2%
2008 2 72.0% -2.5% $290.50 1.2% $209.22 -1.4% 4.4% 1.8%
2008 3 69.6% -4.6% $278.65 0.5% $193.81 -4.1% 4.7% -0.1%
2008 4 59.7% -12.2% $289.96 -5.6% $173.17 -17.1% 5.9% -7.0%
2008 Annual 67.3% -5.8% $290.53 0.0% $195.41 -5.8% 4.8% -1.2%
2009 1 57.1% -16.1% $264.55 -12.9% $150.97 -26.9% 9.1% -8.5%
2009 2 62.7% -13.0% $236.94 -18.4% $148.54 -29.0% 9.1% -5.1%
2009 3 65.3% -6.2% $225.21 -19.2% $146.99 -24.2% 8.8% 2.1%
2009 4 60.5% 1.3% $250.10 -13.7% $151.24 -12.7% 7.8% 9.1%
2009 Annual 61.4% -8.7% $243.37 -16.2% $149.43 -23.5% 8.7% -0.8%
2010 1 63.1% 10.6% $247.06 -6.6% $155.95 3.3% 5.1% 16.2%
2010 2 69.1% 10.2% $242.12 2.2% $167.27 12.6% 1.8% 12.1%
2010F 3 70.8% 8.5% $237.69 5.5% $168.32 14.5% 1.6% 10.2%
2010F 4 63.6% 5.2% $262.78 5.1% $167.18 10.5% 1.0% 6.2%
2010F Annual 66.6% 8.5% $247.07 1.5% $164.67 10.2% 2.3% 11.1%
2011F 1 67.0% 6.2% $262.97 6.4% $176.21 13.0% 0.7% 6.9%
2011F 2 71.6% 3.6% $256.48 5.9% $183.56 9.7% 1.1% 4.7%
2011F 3 73.5% 3.8% $253.57 6.7% $186.42 10.8% 1.3% 5.2%
2011F 4 65.1% 2.3% $279.65 6.4% $181.98 8.9% 1.2% 3.5%
2011F Annual 69.3% 4.0% $262.75 6.3% $182.04 10.5% 1.1% 5.1%
2012F Annual 70.5% 1.8% $287.35 9.4% $202.57 11.3% 0.7% 2.5%
2013F Annual 71.2% 0.9% $313.18 9.0% $222.84 10.0% 0.3% 1.2%
2014F Annual 71.0% -0.2% $333.96 6.6% $237.14 6.4% 0.5% 0.3%
National Financial Benchmarks* - Luxury Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
18.6% 9.1% 14.5%
26.0% 17.4% 22.1%
7.3% 8.3% 7.6%
50.6% 46.6% 48.2%
24.7% 29.2% 26.1%
33.0% 35.7% 34.6%
49.4% 53.4% 51.8%
2008 Actual 2009 Actual 2010 Estimate
56.8% 53.3% 54.7%
$195.41 $149.43 $164.67
61.4% 66.6%
$290.53 $243.37 $247.07
304 304 304
67.3%
National Financial Benchmarks* - Luxury Hotels

National Forecast - Upper Upscale Hotels
2005 Annual 70.8% 2.6% $140.17 6.8% $99.17 9.5% 1.4% 3.9%
2006 Annual 71.0% 0.4% $149.67 6.8% $106.27 7.2% 0.9% 1.3%
2007 Annual 71.0% 0.0% $158.07 5.6% $112.26 5.6% 1.6% 1.6%
2008 1 67.6% -2.5% $164.08 3.6% $110.88 0.9% 3.2% 0.6%
2008 2 73.9% -1.3% $163.97 3.1% $121.10 1.8% 4.1% 2.7%
2008 3 71.6% -2.5% $156.02 2.0% $111.69 -0.6% 4.0% 1.3%
2008 4 61.1% -8.1% $157.28 -3.1% $96.13 -10.9% 4.1% -4.3%
2008 Annual 68.5% -3.5% $160.40 1.5% $109.90 -2.1% 3.8% 0.2%
2009 1 59.5% -11.9% $150.47 -8.3% $89.58 -19.2% 5.9% -6.7%
2009 2 66.5% -9.9% $142.84 -12.9% $95.03 -21.5% 4.5% -5.9%
2009 3 67.7% -5.5% $134.63 -13.7% $91.08 -18.5% 4.4% -1.3%
2009 4 61.1% -0.1% $141.10 -10.3% $86.19 -10.3% 4.5% 4.4%
2009 Annual 63.7% -7.0% $142.00 -11.5% $90.46 -17.7% 4.8% -2.6%
2010 1 63.7% 7.0% $139.42 -7.3% $88.78 -0.9% 2.5% 9.7%
2010 2 72.0% 8.2% $142.47 -0.3% $102.53 7.9% 2.1% 10.5%
2010F 3 71.7% 5.9% $136.11 1.1% $97.53 7.1% 1.8% 7.8%
2010F 4 64.1% 4.9% $141.63 0.4% $90.77 5.3% 1.3% 6.3%
2010F Annual 67.8% 6.5% $139.88 -1.5% $94.90 4.9% 1.9% 8.6%
2011F 1 66.2% 4.0% $146.81 5.3% $97.23 9.5% 1.0% 5.1%
2011F 2 72.5% 0.8% $146.03 2.5% $105.94 3.3% 1.1% 1.9%
2011F 3 72.6% 1.3% $142.10 4.4% $103.15 5.8% 0.9% 2.3%
2011F 4 66.0% 3.0% $149.99 5.9% $99.01 9.1% 0.7% 3.7%
2011F Annual 69.3% 2.2% $146.13 4.5% $101.33 6.8% 0.9% 3.2%
2012F Annual 71.5% 3.1% $154.70 5.9% $110.57 9.1% 0.6% 3.7%
2013F Annual 73.3% 2.6% $164.55 6.4% $120.62 9.1% 0.8% 3.4%
2014F Annual 74.3% 1.4% $169.89 3.2% $126.27 4.7% 1.5% 2.9%
National Financial Benchmarks* - Upper Upscale Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
29.5% 23.2% 26.5%
37.0% 31.3% 34.3%
7.5% 8.1% 7.7%
62.6% 60.5% 61.2%
25.6% 29.2% 26.9%
28.5% 30.2% 29.6%
37.4% 39.5% 38.8%
64.7% 62.7% 63.3%
$109.20 $90.46 $94.90
63.7% 67.8%
$160.40 $142.00 $139.88
367 367 367
68.5%
National Financial Benchmarks* - Upper Upscale Hotels

National Forecast - Upscale Hotels
2005 Annual 70.0% 2.4% $102.56 7.5% $71.80 10.1% 1.5% 3.9%
2006 Annual 69.9% -0.2% $111.23 8.5% $77.75 8.3% 1.7% 1.6%
2007 Annual 69.0% -1.3% $118.17 6.2% $81.56 4.9% 3.9% 2.6%
2008 1 64.7% -2.9% $122.41 3.8% $79.21 0.8% 5.6% 2.5%
2008 2 71.8% -1.7% $121.26 2.5% $87.11 0.8% 5.8% 4.0%
2008 3 70.4% -2.8% $119.44 1.5% $84.08 -1.3% 6.2% 3.3%
2008 4 59.4% -7.2% $115.70 -2.7% $68.74 -9.7% 6.5% -1.2%
2008 Annual 66.5% -3.6% $119.77 1.3% $79.69 -2.3% 6.0% 2.2%
2009 1 57.3% -11.4% $112.84 -7.8% $64.71 -18.3% 7.9% -4.4%
2009 2 63.9% -11.1% $108.17 -10.8% $69.12 -20.7% 9.4% -2.7%
2009 3 65.2% -7.3% $105.49 -11.7% $68.83 -18.1% 10.3% 2.2%
2009 4 57.5% -3.2% $103.99 -10.1% $59.82 -13.0% 10.2% 6.7%
2009 Annual 61.0% -8.3% $107.48 -10.3% $65.57 -17.7% 9.5% 0.4%
2010 1 60.8% 6.1% $104.49 -7.4% $63.58 -1.7% 8.8% 15.4%
2010 2 69.2% 8.4% $106.75 -1.3% $73.90 6.9% 7.4% 16.4%
2010F 3 68.5% 5.0% $107.69 2.1% $73.77 7.2% 4.2% 9.4%
2010F 4 59.8% 3.9% $105.48 1.4% $63.05 5.4% 3.8% 7.8%
2010F Annual 64.6% 5.9% $106.17 -1.2% $68.57 4.6% 6.0% 12.2%
2011F 1 61.5% 1.1% $108.74 4.1% $66.90 5.2% 3.0% 4.1%
2011F 2 70.2% 1.4% $109.01 2.1% $76.53 3.6% 2.2% 3.6%
2011F 3 69.5% 1.5% $110.29 2.4% $76.65 3.9% 2.6% 4.1%
2011F 4 60.7% 1.5% $108.47 2.8% $65.80 4.4% 2.7% 4.3%
2011F Annual 65.5% 1.4% $109.16 2.8% $71.45 4.2% 2.6% 4.0%
2012F Annual 67.4% 3.0% $117.70 7.8% $79.36 11.1% 2.1% 5.2%
2013F Annual 68.3% 1.4% $127.11 8.0% $86.88 9.5% 2.2% 3.6%
2014F Annual 68.9% 0.9% $130.58 2.7% $90.01 3.6% 4.6% 5.4%
National Financial Benchmarks* - Upscale Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
31.7% 26.7% 28.4%
41.1% 36.8% 38.2%
9.4% 10.1% 9.8%
69.8% 69.0% 68.8%
28.7% 32.2% 30.6%
9.2% 9.5% 9.5%
30.2% 31.0% 31.2%
88.5% 88.1% 88.1%
$79.69 $65.57 $68.57
64.6%
$119.77 $107.48 $106.17
146 146 146
66.5% 61.0%
National Financial Benchmarks* - Upscale Hotels

National Forecast - Midscale W/ F&B Hotels
2005 Annual 58.8% 3.4% $77.69 5.2% $45.66 8.7% -3.0% 0.2%
2006 Annual 59.2% 0.7% $82.09 5.7% $48.59 6.4% -3.0% -2.3%
2007 Annual 58.5% -1.1% $85.89 4.6% $50.28 3.5% -2.5% -3.6%
2008 1 51.5% -4.8% $85.58 4.5% $44.05 -0.5% -2.5% -7.3%
2008 2 59.8% -4.7% $89.55 3.9% $53.52 -0.9% -2.5% -7.0%
2008 3 61.8% -5.2% $93.05 3.5% $57.47 -1.9% -1.1% -6.3%
2008 4 47.1% -9.8% $84.70 -0.1% $39.85 -9.8% -1.0% -10.7%
2008 Annual 55.0% -6.0% $88.58 3.1% $48.76 -3.0% -1.8% -7.7%
2009 1 45.1% -12.3% $81.76 -4.5% $36.91 -16.2% -1.6% -13.7%
2009 2 52.2% -12.6% $84.21 -6.0% $43.98 -17.8% -1.5% -13.9%
2009 3 55.5% -10.2% $86.72 -6.8% $48.09 -16.3% -1.3% -11.3%
2009 4 43.0% -8.6% $79.41 -6.2% $34.14 -14.3% -0.2% -8.8%
2009 Annual 49.0% -11.0% $83.31 -6.0% $40.79 -16.3% -1.1% -12.1%
2010 1 44.3% -1.8% $78.45 -4.1% $34.77 -5.8% 0.1% -1.7%
2010 2 54.2% 3.9% $83.10 -1.3% $45.08 2.5% 0.3% 4.2%
2010F 3 58.4% 5.4% $87.31 0.7% $51.02 6.1% -0.2% 5.1%
2010F 4 44.1% 2.5% $80.68 1.6% $35.57 4.2% 0.7% 3.2%
2010F Annual 50.3% 2.7% $82.77 -0.6% $41.61 2.0% 0.2% 2.9%
2011F 1 43.6% -1.5% $80.35 2.4% $35.06 0.9% 0.4% -1.2%
2011F 2 53.5% -1.4% $85.24 2.6% $45.61 1.2% 0.2% -1.1%
2011F 3 57.3% -1.9% $89.27 2.2% $51.19 0.3% 0.3% -1.6%
2011F 4 44.0% -0.1% $82.75 2.6% $36.45 2.5% -1.0% -1.1%
2011F Annual 49.7% -1.2% $84.79 2.4% $42.10 1.2% 0.0% -1.3%
2012F Annual 49.3% -0.7% $87.32 3.0% $43.06 2.3% -1.2% -1.9%
2013F Annual 48.7% -1.3% $89.28 2.2% $43.47 1.0% -1.3% -2.5%
2014F Annual 48.0% -1.4% $90.11 0.9% $43.24 -0.5% -1.2% -2.6%
National Financial Benchmarks* - Midscale W/ F&B Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
15.9% 7.7% 8.5%
25.2% 18.0% 18.7%
9.3% 10.3% 10.2%
57.9% 56.2% 56.0%
32.7% 38.2% 37.3%
19.9% 20.7% 20.7%
42.1% 43.8% 44.0%
76.3% 75.3% 75.2%
$48.76 $40.79 $41.61
49.0% 50.3%
$88.58 $83.31 $82.77
112 112 112
55.0%
National Financial Benchmarks* - Midscale W/ F&B Hotels

National Forecast - Midscale w/o F&B Hotels
2005 Annual 65.4% 3.8% $75.33 7.5% $49.28 11.5% 0.9% 4.7%
2006 Annual 66.0% 0.9% $81.38 8.0% $53.71 9.0% 3.0% 3.9%
2007 Annual 65.0% -1.5% $87.41 7.4% $56.83 5.8% 4.1% 2.5%
2008 1 59.0% -3.5% $89.06 5.2% $52.52 1.5% 4.9% 1.2%
2008 2 66.9% -3.4% $91.15 4.1% $61.02 0.6% 5.2% 1.7%
2008 3 67.1% -4.7% $93.21 3.6% $62.55 -1.3% 5.9% 0.9%
2008 4 53.9% -9.1% $87.73 0.9% $47.27 -8.3% 6.3% -3.4%
2008 Annual 61.7% -5.1% $90.46 3.5% $55.80 -1.8% 5.6% 0.2%
2009 1 52.2% -11.5% $86.21 -3.2% $45.01 -14.3% 6.7% -5.5%
2009 2 59.0% -11.8% $86.36 -5.3% $50.97 -16.5% 7.2% -5.5%
2009 3 60.6% -9.7% $86.98 -6.7% $52.74 -15.7% 7.5% -2.9%
2009 4 50.3% -6.7% $82.01 -6.5% $41.22 -12.8% 6.7% -0.5%
2009 Annual 55.5% -10.0% $85.49 -5.5% $47.47 -14.9% 7.0% -3.7%
2010 1 52.2% 0.0% $82.23 -4.6% $42.92 -4.6% 5.9% 5.8%
2010 2 62.2% 5.4% $85.24 -1.3% $53.04 4.1% 4.7% 10.4%
2010F 3 64.7% 6.7% $88.39 1.6% $57.19 8.4% 3.6% 10.6%
2010F 4 51.9% 3.3% $82.85 1.0% $43.02 4.4% 3.2% 6.6%
2010F Annual 57.8% 4.0% $84.91 -0.7% $49.05 3.3% 4.3% 8.5%
2011F 1 53.0% 1.6% $86.13 4.7% $45.67 6.4% 2.9% 4.6%
2011F 2 63.2% 1.5% $88.62 4.0% $55.99 5.6% 2.9% 4.5%
2011F 3 64.9% 0.3% $92.48 4.6% $60.03 5.0% 2.7% 3.0%
2011F 4 52.9% 1.8% $87.18 5.2% $46.08 7.1% 2.5% 4.3%
2011F Annual 58.5% 1.3% $88.81 4.6% $51.95 5.9% 2.7% 4.0%
2012F Annual 61.1% 4.5% $95.37 7.4% $58.29 12.2% 2.3% 6.9%
2013F Annual 62.6% 2.4% $103.34 8.4% $64.66 10.9% 3.3% 5.7%
2014F Annual 62.2% -0.7% $109.46 5.9% $68.05 5.2% 4.8% 4.1%
National Financial Benchmarks* - Midscale w/o F&B Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
29.4% 22.9% 24.2%
37.9% 32.2% 33.3%
8.5% 9.3% 9.1%
70.7% 69.8% 69.6%
32.8% 37.6% 36.3%
0.0% 0.0% 0.0%
29.3% 30.2% 30.4%
98.3% 98.3% 98.2%
$55.80 $47.47 $49.05
55.5% 57.8%
$90.46 $85.49 $84.91
87 87 87
61.7%
National Financial Benchmarks* - Midscale w/o F&B Hotels

National Forecast - Economy Hotels
2005 Annual 57.4% 3.3% $49.65 4.2% $28.48 7.6% 0.1% 3.4%
2006 Annual 57.1% -0.4% $52.34 5.4% $29.90 5.0% -0.6% -1.0%
2007 Annual 56.8% -0.6% $53.84 2.9% $30.56 2.2% 2.1% 1.4%
2008 1 50.4% -4.2% $52.45 2.4% $26.41 -1.9% 2.1% -2.1%
2008 2 57.7% -4.2% $55.09 2.0% $31.81 -2.3% 1.9% -2.4%
2008 3 59.9% -4.6% $57.49 0.9% $34.42 -3.8% 1.7% -3.0%
2008 4 47.8% -7.1% $51.97 -0.9% $24.82 -7.9% 1.5% -5.7%
2008 Annual 53.9% -5.0% $54.45 1.1% $29.37 -3.9% 1.8% -3.3%
2009 1 45.6% -9.5% $50.26 -4.2% $22.90 -13.3% 1.4% -8.2%
2009 2 51.3% -11.2% $51.79 -6.0% $26.55 -16.5% 1.2% -10.1%
2009 3 54.4% -9.2% $53.22 -7.4% $28.95 -15.9% 1.0% -8.3%
2009 4 44.7% -6.4% $47.31 -9.0% $21.16 -14.7% 1.0% -5.4%
2009 Annual 49.0% -9.2% $50.81 -6.7% $24.89 -15.2% 1.1% -8.1%
2010 1 45.6% 0.0% $46.48 -7.5% $21.18 -7.5% 0.9% 0.9%
2010 2 53.9% 5.0% $49.65 -4.1% $26.74 0.7% 0.8% 5.9%
2010F 3 58.0% 6.7% $52.37 -1.6% $30.39 5.0% 0.4% 7.1%
2010F 4 47.5% 6.3% $47.31 0.0% $22.49 6.3% 0.4% 6.7%
2010F Annual 51.2% 4.6% $49.17 -3.2% $25.20 1.2% 0.6% 5.3%
2011F 1 46.1% 1.2% $47.84 2.9% $22.06 4.2% 0.6% 1.8%
2011F 2 54.1% 0.4% $50.94 2.6% $27.54 3.0% 1.0% 1.4%
2011F 3 58.6% 1.1% $53.94 3.0% $31.63 4.1% 1.4% 2.5%
2011F 4 48.0% 0.9% $48.72 3.0% $23.37 3.9% 1.7% 2.6%
2011F Annual 51.7% 0.9% $50.59 2.9% $26.16 3.8% 1.2% 2.1%
2012F Annual 51.6% -0.3% $52.18 3.1% $26.90 2.9% 2.1% 1.8%
2013F Annual 51.2% -0.6% $53.49 2.5% $27.41 1.9% 2.8% 2.2%
2014F Annual 49.9% -2.6% $53.96 0.9% $26.94 -1.7% 3.7% 1.0%
National Financial Benchmarks* - Economy Hotels
Average Room Count
Average Occupancy
Average Daily Rate
Average RevPAR
Financial Line Item
Rooms Revenue
27.5% 15.5% 15.7%
37.4% 26.7% 26.8%
9.8% 11.2% 11.1%
70.3% 67.4% 66.6%
32.9% 40.7% 39.9%
0.0% 0.0% 0.0%
29.7% 32.6% 33.4%
99.0% 98.9% 98.8%
$29.37 $24.89 $25.20
49.0% 51.2%
$54.45 $50.81 $49.17
76 76 76
53.9%
National Financial Benchmarks* - Economy Hotels

National Forecasts by Location Classification
Urban Hotels Hotels located in densely populated areas, as in large metropolitan areas.
2005 Annual 68.0% 4.0% $125.74 7.3% $85.50 11.6% -1.0% 3.0%
2006 Annual 68.3% 0.4% $138.18 9.9% $94.35 10.3% -0.9% -0.5%
2007 Annual 68.4% 0.1% $149.69 8.3% $102.33 8.5% 1.0% 1.2%
2008 Annual 66.4% -2.9% $154.87 3.5% $102.83 0.5% 2.0% -0.9%
2009 1 56.1% -11.2% $133.82 -8.5% $75.08 -18.8% 2.8% -8.7%
2009 2 64.8% -9.4% $136.76 -14.6% $88.55 -22.6% 2.7% -6.9%
2009 3 67.1% -5.8% $130.97 -14.7% $87.84 -19.7% 3.0% -3.0%
2009 4 59.5% -0.5% $143.87 -9.5% $85.59 -10.0% 2.9% 2.3%
2009 Annual 61.9% -6.8% $136.25 -12.0% $84.29 -18.0% 2.8% -4.2%
2010 1 59.4% 5.9% $127.68 -4.6% $75.87 1.0% 2.2% 8.3%
2010 2 69.9% 7.9% $141.61 3.6% $98.98 11.8% 2.2% 10.3%
2010F 3 70.8% 5.5% $134.34 2.6% $95.06 8.2% 1.8% 7.4%
2010F 4 61.1% 2.6% $145.66 1.2% $88.95 3.9% 1.4% 4.1%
2010F Annual 65.3% 5.5% $137.44 0.9% $89.74 6.5% 1.9% 7.5%
2011F 1 59.9% 0.8% $133.92 4.9% $80.17 5.7% 1.2% 1.9%
2011F 2 70.6% 0.9% $146.78 3.6% $103.56 4.6% 1.0% 1.9%
2011F 3 70.9% 0.1% $139.13 3.6% $98.58 3.7% 0.6% 0.8%
2011F 4 62.1% 1.7% $150.30 3.2% $93.30 4.9% 1.0% 2.7%
2011F Annual 65.8% 0.8% $142.65 3.8% $93.92 4.7% 0.9% 1.8%
2012F Annual 68.7% 4.4% $149.53 4.8% $102.74 9.4% 0.7% 5.1%
2013F Annual 70.2% 2.1% $162.06 8.4% $113.70 10.7% 0.5% 2.6%
2014F Annual 69.6% -0.8% $171.24 5.7% $119.14 4.8% 1.4% 0.5%
Suburban Hotels Hotels located in the suburbs of metropolitan markets.
2005 Annual 63.8% 3.8% $79.18 5.6% $50.51 9.6% 0.7% 4.5%
2006 Annual 63.8% 0.0% $85.39 7.8% $54.45 7.8% 0.9% 0.8%
2007 Annual 63.0% -1.2% $90.49 6.0% $57.03 4.7% 1.5% 0.4%
2008 Annual 59.8% -5.1% $92.84 2.6% $55.53 -2.6% 3.0% -2.2%
2009 1 50.6% -12.1% $87.74 -6.2% $44.41 -17.5% 3.6% -8.9%
2009 2 56.2% -13.0% $85.73 -8.8% $48.18 -20.7% 3.6% -9.8%
2009 3 58.3% -9.7% $84.52 -9.9% $49.27 -18.6% 3.6% -6.4%
2009 4 50.1% -4.8% $81.23 -9.2% $40.70 -13.6% 3.6% -1.4%
2009 Annual 53.8% -10.0% $84.80 -8.7% $45.63 -17.8% 3.6% -6.8%
2010 1 52.3% 3.4% $82.35 -6.1% $43.09 -3.0% 3.4% 6.9%
2010 2 60.5% 7.7% $84.08 -1.9% $50.90 5.6% 3.0% 11.0%
2010F 3 62.5% 7.3% $85.03 0.6% $53.19 8.0% 2.8% 10.3%
2010F 4 53.2% 6.2% $82.05 1.0% $43.67 7.3% 1.6% 7.9%
2010F Annual 57.2% 6.3% $83.48 -1.6% $47.73 4.6% 2.7% 9.1%
2011F 1 54.1% 3.3% $86.52 5.1% $46.79 8.6% 1.5% 4.9%
2011F 2 61.7% 2.0% $87.96 4.6% $54.29 6.7% 1.1% 3.0%
2011F 3 63.1% 1.0% $89.17 4.9% $56.30 5.9% 0.5% 1.5%
2011F 4 54.2% 1.9% $86.18 5.0% $46.75 7.0% 1.6% 3.6%
2011F Annual 58.3% 2.0% $87.54 4.9% $51.03 6.9% 1.2% 3.2%
2012F Annual 60.7% 4.2% $93.12 6.4% $56.54 10.8% 0.9% 5.1%
2013F Annual 62.8% 3.4% $100.35 7.8% $63.00 11.4% 1.3% 4.8%
2014F Annual 62.7% -0.1% $106.11 5.7% $66.52 5.6% 2.9% 2.7%
Location segments are hotel classifications driven by physical location. Chain management has provided STR with location classifications for a
significant number of hotels. Location segments include Urban, Suburban, Airport, Interstate, Resort, and Small Metro/Small Town.

National Forecast by Location Classification (cont'd)
Airport Hotels
Hotels in close proximity of an airport that primarily serve demand from airport traffic. Distance may vary.
2005 Annual 68.7% 3.1% $84.74 7.9% $58.19 11.3% 0.0% 3.1%
2006 Annual 69.2% 0.7% $92.84 9.6% $64.20 10.3% 0.3% 1.0%
2007 Annual 69.2% 0.0% $98.94 6.6% $68.46 6.6% 1.3% 1.4%
2008 Annual 66.0% -4.7% $101.13 2.2% $66.70 -2.6% 2.3% -2.4%
2009 1 58.6% -11.6% $96.98 -6.9% $56.85 -17.7% 3.1% -8.8%
2009 2 61.9% -11.7% $90.85 -11.5% $56.27 -21.9% 3.2% -9.0%
2009 3 62.2% -8.7% $87.25 -12.7% $54.27 -20.4% 3.2% -5.9%
2009 4 56.5% -4.6% $86.33 -11.3% $48.82 -15.4% 3.1% -1.6%
2009 Annual 59.8% -9.3% $90.31 -10.7% $54.03 -19.0% 3.1% -6.5%
2010 1 61.4% 4.8% $89.25 -8.0% $54.83 -3.6% 2.7% 7.6%
2010 2 66.4% 7.2% $88.72 -2.3% $58.93 4.7% 2.3% 9.7%
2010F 3 66.5% 6.9% $87.82 0.6% $58.38 7.6% 2.1% 9.1%
2010F 4 58.8% 3.9% $86.79 0.5% $50.99 4.5% 1.4% 5.3%
2010F Annual 63.3% 5.8% $88.16 -2.4% $55.78 3.2% 2.1% 8.0%
2011F 1 63.4% 3.2% $91.38 2.4% $57.95 5.7% 1.4% 4.6%
2011F 2 67.8% 2.1% $89.79 1.2% $60.91 3.4% 1.2% 3.4%
2011F 3 67.2% 1.0% $89.69 2.1% $60.24 3.2% 0.9% 1.9%
2011F 4 60.8% 3.4% $89.49 3.1% $54.38 6.6% 1.5% 5.0%
2011F Annual 64.8% 2.4% $90.08 2.2% $58.36 4.6% 1.2% 3.7%
2012F Annual 67.3% 3.9% $95.99 6.6% $64.64 10.8% 0.7% 4.7%
2013F Annual 69.0% 2.4% $103.38 7.7% $71.30 10.3% 0.8% 3.2%
2014F Annual 68.3% -0.9% $108.12 4.6% $73.90 3.7% 2.3% 1.3%
Interstate Hotels
Hotels near major highways whose primary source of business is through passerby travel. Excludes suburban.
2005 Annual 56.8% 1.7% $60.01 3.9% $34.08 5.7% 1.0% 2.7%
2006 Annual 57.7% 1.7% $63.43 5.7% $36.63 7.5% 1.0% 2.7%
2007 Annual 57.7% -0.1% $66.98 5.6% $38.63 5.5% 1.7% 1.5%
2008 Annual 54.7% -5.2% $70.09 4.6% $38.31 -0.8% 3.0% -2.4%
2009 1 45.2% -9.1% $66.83 0.4% $30.18 -8.8% 3.7% -5.8%
2009 2 53.1% -10.2% $69.65 -1.1% $36.95 -11.1% 3.6% -7.0%
2009 3 56.1% -8.7% $71.98 -2.4% $40.37 -10.9% 3.4% -5.6%
2009 4 44.3% -8.5% $67.24 -2.0% $29.79 -10.3% 3.2% -5.6%
2009 Annual 49.7% -9.1% $69.14 -1.4% $34.34 -10.4% 3.5% -6.0%
2010 1 43.8% -3.1% $66.60 -0.4% $29.15 -3.4% 3.1% -0.1%
2010 2 54.8% 3.4% $69.76 0.2% $38.25 3.5% 2.6% 6.1%
2010F 3 59.6% 6.3% $72.62 0.9% $43.30 7.2% 2.3% 8.7%
2010F 4 45.7% 3.2% $67.73 0.7% $30.98 4.0% 1.5% 4.7%
2010F Annual 51.0% 2.7% $69.47 0.5% $35.44 3.2% 2.4% 5.1%
2011F 1 44.7% 2.0% $67.79 1.8% $30.28 3.9% 1.2% 3.3%
2011F 2 55.7% 1.6% $70.82 1.5% $39.47 3.2% 0.8% 2.4%
2011F 3 60.2% 0.9% $74.22 2.2% $44.67 3.2% 0.4% 1.4%
2011F 4 46.3% 1.3% $69.99 3.3% $32.44 4.7% 1.3% 2.6%
2011F Annual 51.7% 1.4% $70.97 2.2% $36.71 3.6% 0.9% 2.3%
2012F Annual 53.8% 3.9% $75.42 6.3% $40.55 10.5% 0.8% 4.8%
2013F Annual 54.7% 1.7% $81.77 8.4% $44.72 10.3% 1.2% 2.9%
2014F Annual 54.8% 0.3% $86.90 6.3% $47.65 6.6% 2.6% 2.9%

National Forecast by Location Classification (cont'd)
Resort Hotels
Hotels located in resort areas where the primary source of business is from leisure destination travel.
2005 Annual 66.3% 1.0% $126.50 6.0% $83.87 7.1% -2.4% -1.4%
2006 Annual 65.9% -0.6% $136.41 7.8% $89.90 7.2% -1.6% -2.2%
2007 Annual 65.5% -0.5% $144.38 5.8% $94.63 5.3% 0.1% -0.4%
2008 Annual 61.6% -6.1% $146.82 1.7% $90.38 -4.5% 1.2% -5.0%
2009 1 55.4% -13.0% $147.35 -11.8% $81.66 -23.3% 1.7% -11.5%
2009 2 59.4% -9.2% $127.10 -12.1% $75.45 -20.2% 1.6% -7.7%
2009 3 61.4% -5.0% $123.33 -11.7% $75.75 -16.1% 1.5% -3.5%
2009 4 51.7% -1.7% $121.56 -9.4% $62.81 -10.9% 1.8% 0.1%
2009 Annual 57.0% -7.4% $129.68 -11.7% $73.89 -18.2% 1.7% -5.9%
2010 1 57.1% 3.1% $140.62 -4.6% $80.31 -1.7% 1.5% 4.6%
2010 2 61.9% 4.4% $125.96 -0.9% $78.04 3.4% 0.8% 5.2%
2010F 3 66.2% 7.8% $123.48 0.1% $81.79 8.0% 0.6% 8.4%
2010F 4 55.7% 7.8% $122.40 0.7% $68.17 8.5% 0.3% 8.1%
2010F Annual 60.3% 5.8% $127.91 -1.4% $77.08 4.3% 0.8% 6.6%
2011F 1 61.6% 7.8% $146.61 4.3% $90.29 12.4% 0.8% 8.7%
2011F 2 66.8% 7.9% $130.17 3.3% $86.98 11.5% 0.3% 8.2%
2011F 3 68.3% 3.1% $130.76 5.9% $89.25 9.1% 0.3% 3.3%
2011F 4 57.7% 3.7% $129.95 6.2% $75.03 10.1% 1.4% 5.1%
2011F Annual 63.6% 5.5% $134.24 4.9% $85.37 10.8% 0.7% 6.2%
2012F Annual 65.9% 3.6% $145.89 8.7% $96.14 12.6% 0.7% 4.3%
2013F Annual 67.8% 2.9% $157.33 7.8% $106.70 11.0% 1.2% 4.1%
2014F Annual 66.6% -1.8% $166.97 6.1% $111.18 4.2% 1.8% -0.1%
Small Metro/Town Hotels
2005 Annual 56.5% 2.2% $71.44 3.7% $40.37 6.0% 0.4% 2.6%
2006 Annual 56.9% 0.6% $75.18 5.2% $42.75 5.9% 0.7% 1.4%
2007 Annual 56.9% 0.0% $79.37 5.6% $45.15 5.6% 1.5% 1.5%
2008 Annual 54.7% -3.9% $82.48 3.9% $45.09 -0.1% 2.5% -1.5%
2009 1 44.0% -8.9% $75.43 -1.3% $33.20 -10.1% 2.9% -6.3%
2009 2 52.2% -10.3% $80.12 -1.7% $41.79 -11.9% 2.8% -7.8%
2009 3 59.1% -8.2% $88.12 -3.3% $52.05 -11.2% 2.8% -5.6%
2009 4 43.5% -7.8% $75.67 -2.4% $32.95 -10.0% 2.6% -5.4%
2009 Annual 49.8% -8.8% $80.60 -2.3% $40.16 -10.9% 2.8% -6.3%
2010 1 43.0% -2.3% $74.62 -1.1% $32.09 -3.3% 2.4% 0.1%
2010 2 54.3% 4.2% $79.92 -0.2% $43.42 3.9% 1.9% 6.1%
2010F 3 62.7% 6.1% $88.65 0.6% $55.54 6.7% 0.5% 6.6%
2010F 4 45.4% 4.3% $76.12 0.6% $34.58 5.0% 1.7% 6.1%
2010F Annual 51.5% 3.3% $80.72 0.1% $41.56 3.5% 1.6% 5.0%
2011F 1 44.0% 2.2% $76.69 2.8% $33.71 5.1% 3.5% 5.8%
2011F 2 55.3% 1.9% $80.90 1.2% $44.78 3.1% 0.2% 2.0%
2011F 3 62.9% 0.4% $90.22 1.8% $56.77 2.2% 0.2% 0.6%
2011F 4 46.3% 2.0% $78.10 2.6% $36.18 4.6% 2.4% 4.4%
2011F Annual 52.2% 1.3% $82.22 1.9% $42.90 3.2% 1.5% 2.9%
2012F Annual 54.1% 3.8% $86.89 5.7% $47.04 9.7% 1.0% 4.8%
2013F Annual 55.5% 2.5% $93.70 7.8% $51.97 10.5% 1.7% 4.2%
2014F Annual 55.1% -0.7% $98.91 5.6% $54.47 4.8% 2.3% 1.6%

National Horizon Profile
Year When Nominal RevPAR Returns to Previous Peak - Market Comparison
3 Albuquerque 5 Detroit 4 Nashville 5 Sacramento
4 Anaheim 4 Fort Lauderdale 4 New Orleans 3 Saint Louis
4 Atlanta 5 Fort Worth 4 New York 4 Salt Lake City
4 Austin 4 Hartford 5 Newark 5 San Antonio
3 Baltimore 5 Houston 4 Oahu 4 San Diego
4 Boston 4 Indianapolis 5 Oakland 5 San Francisco
4 Charlotte 4 Jacksonville 5 Orlando 4 Seattle
5 Chicago 3 Kansas City 4 Philadelphia 4 Tampa
3 Cincinnati 4 Long Island 5 Phoenix 5 Tucson
3 Cleveland 3 Los Angeles 3 Pittsburgh 3 Washington DC
3 Columbus 3 Memphis 4 Portland 5 West Palm Beach
4 Dallas 5 Miami 5 Raleigh-Durham
4 Denver 4 Minneapolis 5 Richmond
2012 2013 2014
Source: Colliers PKF Hospitality Research
This page showcases the Colliers PKF Hospitality Research Hotel Horizons® forecasting universe. The map below displays the year in which nominal
RevPAR levels are forecast to once again achieve their previous peak: 11 markets in 2012, 23 markets in 2013, and 16 markets in 2014 or later.
Quarterly Hotel Horizons® reports are available for the nation and all the markets shown below.

Fairmont Embassy Suites Courtyard by Marriott Best Western Comfort Inn Days Inn
Four Seasons Hilton Crowne Plaza Doubletree Club Fairfield Inn EconoLodge
Loews Hyatt Hyatt Place Holiday Inn Hampton Inn Microtel
Ritz Carlton Marriott Radisson Quality La Quinta Red Roof
W Hotels Westin Residence Inn Red Lion TownPlace Suites Super 8
Wikipedia defines ‘forecasting’ as:
1. The variables included in the models follow from economic theory.
2. The relationships between economic variables are estimated with advanced statistical methods.
3. The forecasts developed with econometric models are more objective than forecasts purely based on judgmental approaches
Econometric forecasting represents one of the most sophisticated approaches to gaining insights about future economic activity. Unlike some
forecasting methods used in business practice, the models that underlie econometric forecasts rely on historical relationships, similar to statistical
correlations, between economic variables. The data for measuring these variables come from actual market transactions involving individuals and
firms interacting in the economy. Moreover, these economic variables allowed to enter econometric models have conceptual linkages to economic
theory.
UPPER PRICED LOWER PRICED
The financial benchmarks come from the 2010 edition (2009 data) of Trends ® in the Hotel Industry . Trends ® is Colliers PKF Consulting’s annual
analysis of hotel financial statements from thousands of properties located across the nation. These data provide mean performance measurements
for hotels that are similar in size, location, and ADR for an average upper priced or lower priced property located in the market. For a more in-depth
report with a custom comparable set designed for your individual property, see our Colliers PKF-HR Benchmarker service.
Consistent with this definition, Colliers PKF Hospitality Research prepares forecasts of the hotel markets in the U.S. based on generally accepted
econometric procedures and sound judgment regarding fundamental relationships between the economic and behavioral market indicators and hotel
financial performance, relationships that PKF has tracked for over 70 years.
HOTEL HORIZONS® FORECAST APPENDIX
Exhibit Definitions
Financial Benchmarks
Forecasting Method
The Econometric Component
Positive Features of an Econometric Model
Market Segments - Representative Brands
"the process of estimation in unknown situations. Prediction is a similar, but more general term, and usually refers to estimation of time series, cross-
sectional or longitudinal data. In more recent years, forecasting has evolved into the practice of demand planning in every day business forecasting
for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces both statistical
forecasting and consensus process...(emphasis added)"
Occupancy levels, ADR change and RevPAR change are plotted on a fixed "grade" scale. Measured as current value minus the
mean, divided by the series' standard deviation. Grades: A: Very strong, greater than one standard deviation above long run
average. B: Strong, within one standard deviation above long run average C: Somewhat weak, within one standard deviation
below long run average. D: Weak, below one standard deviation of the long run average.
Year over year change in Income, Employment, RevPAR and Demand, displayed as annual (Exhibits 2 and 3) and quarterly
(Exhibits 4 and 5).
Index based change charts with base year 2005 = 100. These exhibits illustrate the magnitude of change.
Compound average annual RevPAR, Demand and Supply change for Upper Priced, Lower Priced, and combined (All) hotels
withing the MSA.
Real RevPAR change (inflation adjusted, CPI) of the current period minus the historical mean of Real RevPAR change, divided by
the historical standard deviation of Real RevPAR change.
Exhibits 2 - 5
Exhibit 1
Exhibits 7 - 9
Exhibits 10 - 12
Exhibit 13

1.
2.
3.
1. The Supply Change is added to the previous period number of rooms available to produce a rooms available level in future periods.
2. Number of rooms sold is divided by number of rooms available to obtain occupancy percent in each future period.
Finally, a committee of hotel experts from Colliers PKF Hospitality Research performs a thorough review of each model prediction. In the spirit
of forecasting described above in the Wikipedia definition, this committee modifies predictions from the model when there is compelling
evidence that factors have come into play in a market which the model could not possibly foresee. In the extreme case, a Katrina-style event
causes the Committee’s forecast to differ noticeable from the model prediction In most instances, however, the committee either defers to the
model prediction or makes modest adjustments.
Economic Data from July 2010 Hotel Data from June 2010
P.11 | COLLIERS PKF HOSPITALITY RESEARCH
Gaining insight to the future of complicated economic environments requires the introduction of multidimensional forecasting models. Thus,
several equations often need to be identified and estimated to model complex economic conditions, as in the national economy. Multi-equation
models have considerable appeal for economic forecasting because they explicitly recognize the interdependence of relationships commonly
encountered in business and economics. The best examples of this type of model are demand and supply models, in which prices of goods are
set by the interaction of buyers and sellers in the market. Thus, price appears as a variable in both the demand and supply equations.
The Hotel Horizons ® econometric forecasting models, because they represent an entire sector of the national and MSA economies, fall into
the category of multi-equation, demand and supply models. These models have a general structure as defined below, but vary in their form for
particular market applications:
Demand (the number of rooms occupied - accommodated demand) is the dependent variable in this equation, and equals either
Gross Domestic (Metropolitan) Product, Real Personal Income, or Total Employment, which serve as the main independent
variable, along with the lagged changes in any of these variables and the lagged demand from the prior year (different numbers of
lags are used for independent variables based upon statistical significance).
Supply Change (change in the number of rooms available) is the dependent variable, equals ADR and Occupancy, which serve as
the main independent variables along with the change in supply from the prior period (different numbers of lags are used for
independent variables based upon statistical significance).
ADR (Real) is the dependent variable, equals Occupancy, which is the main independent variable along with ADR from the prior
period (different numbers of lags are used for independent variables based upon statistical significance). ADR is represented as
nominal in the preceding report.
These equations are estimated with ordinary least squares in a non-simultaneous fashion using data from Smith Travel Research and Moody's
Economy.com. dating back to the late 1980s. The parameters (coefficients on each variable) then are used to forecast demand, supply change,
and ADR by multiplying the parameters with Moody's Economy.com forecast of the economic variables and relevant previously estimated
values (lagged variables). Two additional calculations are made with these results as follows:
The econometric model predicts future room supply in small increments (e.g., 100 rooms per quarter). In reality, rooms enter the market in
large blocks (e.g., 1000 rooms) as new hotels are placed in service. When it becomes apparent that a new hotel (s) will be placed in service
within the next 18 months, the modeled supply change will be manually adjusted to account for the opening of the new hotel (s). The reverse
also is true when it become apparent that a hotel (s) will be taken out of service (e.g., demolished or converted to an alternative use).
HOTEL HORIZONS® FORECAST APPENDIX
The Judgmental Component
The Equations

2010 2011
1st Qtr 2nd Qtr 3rd Qtr F 4th Qtr F Year End 1st Qtr F 2nd Qtr F 3rd Qtr F 4th Qtr F Year End
This Report 0.0% -0.2% 1.2% 1.7% 0.6% 1.7% 2.4% 3.1% 4.0% 2.8%
Last Report -0.6% -0.1% 0.9% 1.8% 0.5% 2.5% 3.2% 3.5% 4.0% 3.3%
This Report -2.3% -0.6% 0.3% 0.9% -0.4% 1.2% 1.1% 1.5% 1.9% 1.4%
Last Report -2.4% -1.5% -0.6% 0.1% -1.1% 0.9% 1.8% 2.5% 3.0% 2.1%
This Report 2.7% 2.3% 1.8% 1.4% 2.0% 1.7% 0.7% 0.5% 1.6% 1.1%
Last Report 2.9% 1.2% 0.3% 0.6% 1.2% 0.3% 0.3% 0.3% 0.5% 0.3%
This Report 5.1% 8.7% 8.6% 6.4% 7.3% 4.8% 3.3% 1.5% 3.7% 3.2%
Last Report 5.3% 5.8% 4.3% 3.2% 4.7% 3.5% 2.9% 3.1% 4.2% 3.4%
This Report 2.3% 6.2% 6.7% 5.0% 5.2% 3.1% 2.5% 1.0% 2.1% 2.1%
Last Report 2.3% 4.6% 4.0% 2.6% 3.4% 3.3% 2.6% 2.8% 3.7% 3.1%
This Report -4.3% 0.0% 0.9% 0.8% -0.6% 4.3% 2.8% 3.9% 4.1% 3.8%
Last Report -4.3% -1.1% -1.5% 0.5% -1.6% 3.1% 4.5% 4.7% 5.9% 4.6%
This Report -2.0% 6.2% 7.6% 5.8% 4.6% 7.6% 5.4% 4.9% 6.3% 5.9%
Last Report -2.1% 3.4% 2.4% 3.1% 1.7% 6.5% 7.2% 7.7% 9.8% 7.8%
* Economic data (history and forecast) are from Moody's Economy.com
** Hotel performance data: History supplied by Smith Travel Research; Forecast developed by Colliers PKF Hospitality Research
In January of 2010 Smith Travel Research, our source for historical lodging data, changed their policy regarding the handling of available
room counts. Accordingly, some historical hotel performance data may differ from that presented in previous editions of Hotel Horizons®.
What Has Changed Since The Last Report?
2010 and 2011 Year End Forecast Change in RevPAR
2010 Change in Occupancy** 2011 Change in Occupancy**
2010 Change in ADR** 2011 Change in ADR**
2010 Change in RevPAR** 2011 Change in RevPAR**
Forecasts are valuable tools for developing expectations of key variables. Changes to forecasts occur for two primary reasons. The first is
adjustments to historical series made by the data provider, causing future periods to vary due to changes in their base. The second is that
economic expectations tend to shift as more information becomes available, thus moving the hotel variables according to their underlying
relationships. We are constantly re-evaluating the performance of Hotel Horizons® forecasts, and presented below is a view on how the
world has changed since the June - August 2010 issue, presented in same period, prior year change format. All data under "This Report" are
actual as of 2nd Quarter 2010. Data marked as "Last Report" are actual as of 1st Quarter 2010, with 2nd Quarter 2010 being the first
forecast period for that report. As noted on earlier pages, all of the hotel variables below are modeled using data from Moody's Economy.com.
It is important to note that all historical data are subject to revision.
2010 Change in Real Personal Income* 2011 Change in Real Personal Income*
2010 Change in Total Payroll Employment* 2011 Change in Total Payroll Employment*
2010 Change in Supply** 2011 Change in Supply**
2010 Change in Demand** 2011 Change in Demand**
4.6%
5.9%
1.7%
7.8%
2010 2011
This Report Last Report

Hotel Horizons® myShare!
Hotel Horizons® myShare! is an informed way to estimate the future performance of any submarket, competitive set, or subject property
based on the behavior of the overall market.! Seventy five to eighty percent of all occupancy and rate movements experienced by a property,
or group of properties, can be explained through movements in the larger market.! The remaining twenty to twenty-five percent is endemic to
the property or submarket itself, and those individuals who deal with the day to day operations of these properties are best suited to
understand and account for these differences.
myShare! utilizes historical penetration rates of the submarket, competitive set, and subject property to the larger market to produce informed
micro-forecasts. myShare! gives the user the tools necessary to understand the historic movements of their subset, and apply that
knowledge to future periods in time. myShare! is being introduced on a complimentary basis in time for budget season, and is included with
every Hotel Horizons single market report, including this one. Check your original download or email hotelhorizonssupport@pkfc.com.
View the video tutorial online at:
www.pkfmyshare.com
HOTEL HORIZONS® NATIONAL PLUS
The Penetration Rate

ADR Average Daily Rate - rooms revenue divided by paid rooms occupied.
Occupancy Paid rooms occupied divided by available rooms.
RevPAR Revenue per Available Room - rooms revenue divided by available rooms.
Supply Average daily room nights available per quarter, represented as a change over previous year, same quarter except
where noted annually.
Demand (Accommodated Demand) Average daily room nights occupied per quarter, represented as a change over previous year,
same quarter except where noted annually.
LRA Long Run Average - Annual average from 1988 to 2009
Penetration Market area (or sub-market area) measurement as a percent of national (or market area) measurement.
Standard Deviation The plotting of a normal data series and how far each individual data point lies from the mean: 68.2% of the series will fall
within 1 standard deviation, 95.4% of all data points will fall within 2 standard deviations, and 99.7%
falling within 3 standard deviations of the mean.
For more reports visit our website at
www.hotelhorizons.com
HOTEL HORIZONS® NATIONAL PLUS
Hotel Horizons ®
is compiled and produced by Colliers PKF Hospitality Research, the research affiliate of Colliers PKF Consulting USA. Readers are advised that
neither Colliers PKF Consulting USA nor Colliers PKF Hospitality Research represent the data herein to be definitive, neither should the contents be construed as a
recommendation on policies or actions. Quotation, reproduction, and distribution are prohibited without the written permission of Colliers PKF Hospitality Research.
Please address inquiries to Hotel Horizons ®
, 3475 Lenox Road, Suite 720, Atlanta GA 30326. Phone: (866) 842 8754
Glossary of Terms
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Dallas / Houston
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