Themes – What’s Changing

U.S. Cycle

Results by Brand Co/REIT

Did Group Momentum Continue Though 3Q/2H?

OTA’s

Summary

Agenda

CLEVELAND RESEARCH Lodging Industry Insights

HSMAI Revenue Optimization Conference

June 15, 2015

Vince Ciepiel, CFA

Senior Research Analyst

(216) 649-7253

vciepiel@cleveland-research.com

Important Disclosures can be Found in Appendix

Cleveland Research and Stocks Overview

U.S. Cycle

Results by Brand Co/REIT

Group Momentum Continue Though 1Q

OTA’s

Summary

Agenda

CRC Overview

4

Who is Cleveland Research?

An independent research firm headquartered in Cleveland, Ohio. Founded in

2006, Cleveland Research includes:

15 research teams

Across 50 key channels

Publishing research on over 150 companies

We pride ourselves on a disciplined research process that has us regularly and

deeply engaged with the industries and companies we cover.

Our partners find value from getting in front of key themes and trends that lead to

faster and better strategic and financial decisions.

What is happening now?

Why is it happening?

What happens next?

5

Cleveland Research Customers

6

Channel Intelligence

Equity Research

Market Research

Our Research Edge

Regular interaction with hundreds of companies across the

entire channel

Quickly identify inflections with accuracy - not just the “what”

but the “why” and “so what”

Unique relationships and interactions with senior management

teams at the largest public companies

Financial forecasts that can be used for budgeting/strategic

planning purposes

Actionable insights that provide in-depth and timely information

on key markets for your teams to stay ahead of the curve

7

Lodging Stock 101

8

Moving Target Around Moving Target

How much are companies worth?

A. Future Earnings (EPS) = $2.00

B. Multiple = 10x (Growth, Risk, Durability, Conversion to Cash)

C. Yields a $20 stock The market casts its vote on A and B daily

When is a Stock Mispriced (Opportunity to Make Money)?

The market thinks A = $2.00/share

In reality A = $3.00/share

Channel Research is how we determine A

In order to make money in stocks, you must be: Early, Different, and

Right

Stocks are forward looking (it’s all about expectations)

What’s the point?

Allocate capital to the most efficient co that delivers best risk adj returns

9

Keys for Lodging Stocks

Consumer discretionary

Good businesses bid up (SBUX, CMG, HD, COST)

Brands

RevPAR Growth (Comp, Same Store Sales)

Health of business/brand and industry - Cyclical

Room Growth (Sq Ft Growth, Store Growth, Unit Growth)

Long term trajectory/bigger picture earnings opportunity – Secular

REIT’s

RevPAR Growth

Renovations/Capital Deployment

Margin Opportunity

Deal Activity

Interest rate sensitivity

10

Stocks Continued

2nd Derivative

Increasing at a decreasing rate?

Good group in general?

Which stock specifically?

Expectations – pressure emanates from top

Penalty box – can’t catch a break

Which side of the fence – non-consensus or too consensus

11

What investors/analysts trying to figure out?

Valuation Game

Multiple relates to EBITDA growth/durability in next few years

The next considerations would be How much of that comp price vs. volume and is over and above cost inflation in the business/falls to profit.

If the new stores have higher returns/yield some operating leverage pivoting off some fixed overhead cost base

What they do with that ebitda (maintenance capex, growth capex, or pay div/buyback stock) aka how it converts to free

cash

Grade the durability of the cash flow stream in a downturn

How to lever the business (a byproduct of the durability)

What returns on invested capital look like/are they using their own or others balance sheet to drive sq ft growt

Vs. Other Industries Brands – 14x, MSD comp, MSD rooms; REIT – 13x, high 20s margin, MSD comp

RCL – 12x, mid 20s margin, LSD comp, MSD capacity

SBUX – 18x, high 20s ebitda margin, MSD Comp, HSD stores

CMG – 18x, low 20s margin, MSD Comp, LDD stores

COST –13x, LSD margins, MSD Comp, 4% stores

KR – 8x, MSD margin, 4% comp, 1% stores

SHW – 16x, Midteen margin, MSD comp LSD stores

HD – 12x, Midteen margin, MSD Comp, No store growth

12

What I am trying to figure out

Momentum in the business

Higher or lower level of growth vs. last q?

Higher or lower level of growth next q vs. what seeing now?

Business vs. Expectations

Better, worse, or inline with your budget?

Feel better, worse, or same vs. 90 days ago about next q and full yr?

Underperformers and Outperformers

13

TTM Performance Brand’s

14

TTM Performance REIT’s

15

YTD Performance Brand’s

16

YTD Performance REIT’s

17

Theme’s – What are we seeing?

18

1H15 Themes

1Q showed a similar level of yr/yr growth vs. what seen in 4Q – heading into the releases, there

was some concern that the 1Q results would decelerate more meaningfully (STR showed 90bps

deceleration to 7.9% vs. 8.8% in 4Q) as a result of 1.) bad weather, 2.) poor NY results, 3.) earlier

Easter/hurt last wk in March.

2Q outlooks largely positive. Most co’s expecting similar to better yr/yr growth in 2Q vs. what

was seen in 1Q. Group business setting up nicely, and key cities headed in right direction. 3Q

looks good as well, but perhaps less favorable of a set up given the 1.) tougher comps and 2.)

some concerns in a slow in intl arrivals for summer travel in July/Aug

Occupancy gains in general have been better than expected 3-6 months ago. Stronger USD

has yet to meaningfully decrease international arrivals/stays. Where is the extra rate?

2015 outlook still calling for 5-7% growth for the brands (avg growth was 6.7% in 2014, and

4.4% in 2013) and 5-7% for the REITS (avg growth was 8.4% in 2014, and 5.5% in 2013). Of the

20 publicly traded hotel cos, 4 positively revised their full yr outlook by 50bps, while the rest

maintained the RevPAR range set 3 months ago.

Group growth in 1Q was similar to levels seen in 4Q and in line with 2015 pace levels.

OTA – Domestic growth slowing; FX headwinds persist

19

1H15 Themes – What’s Changing

20

6.3%

7.6%

8.7%

7.6%

10.7% 10.5%

6.3%

7.2%

8.4%

6.4%6.9%

10.2%

0%

2%

4%

6%

8%

10%

12%

Brand Co's Full Service REIT's Select Service REIT's

Publicly Traded Hotel Co's RevPAR Growth

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15Source: Company Filings, Cleveland Research

WW RevPAR Growth Trends – Lodging Brands

6.6%6.2%

4.4%5.1% 5.1%

3.0%

8.4%

11.2%

6.6% 6.8%

5.2%

7.4%

5.9%

1.7%

8.2%

9.6%

0%

2%

4%

6%

8%

10%

12%

HLT MAR HOT H IHG WYN LQ CHH

Brand Co's Worldwide RevPAR Growth

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15Source: Company Filings

3.2%

7.7%8.3%

10.3%

6.9%7.4% 7.5%

6.0%

3.8%

5.4%

7.9%

4.0%

10.9%

6.6%

9.5%

7.0%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

HST LHO DRH RHP BEE PEB CHSP SHO

Full Service Lodging REIT's RevPAR Growth

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15Source: Company Filings

2015 Outlook – What we are seeing

Our work suggests that April and May U.S. RevPAR performance looks to have continued the

positive momentum from 1Q; 1Q growth appears to be tracking in line with industry

participants expectations.

Some have noted that 2Q growth levels (through May) are maybe 50-100bps off of 1Q yr/yr

growth levels, but that June looks quite strong.

Most respondents are seeing the full yr track ~100bps better than budgeted levels.

Survey feedback continues to show Transient and Group business on the books for this summer

and into the 2H pacing ahead of last yr with both roomnights and rates positive, supportive

for continued mid-single digit RevPAR growth

Group demand on the books for the next 12-18 months continues to pace positive; operators

feeling more confident in the trajectory of Group from a rate, occupancy, and Food & beverage

perspective

22

NYU Conference Thoughts

Where are we in the cycle? – This question seems to come up on every panel at every

conference. The consensus answer is the 5th-7th inning. We heard this answer 6 mo’s ago, 12 mo’s

ago, and 18 mo’s ago, meaning these mid/late innings are quite long innings.

What’s making headlines? – Big announcement out of the Brand Co’s, was Starwood’s 10 point

plan to refresh the Sheraton brand. Feedback from owners/industry participants suggests that a

brand refresh without a significant capital investment on the part of the owners, is likely to only

modestly move the needle. Barry Sternlicht’s comments on Starwood (on valuation levels, on

management/company focus, on consolidation) were also in focus.

What’s the tone? – This conference felt similar to the other’s we have attended in that the tone

was quite upbeat as most industry participants feel quite good about the propensity for this cycle

to continue for another few years. Financing is readily available/quite competitive for the right

deal in the right markets, but standards are still quite high/good track record required.

What’s the discussion centered around? – The hot topics were the competitive landscape

(Expedia/Priceline/AirBnB), brand proliferation/lifestyle & boutique hotels, the success in the

select serve boom/fate of full service, engaging millennials/loyalty programs, discussions on the

trajectory of hotel values/interest & cap rates, international travel (and expansion for the Brands),

and New York (had a worse than expected 1Q, but is likely the low point of the yr for the city).

23

NYU Key Quotes

“If we lose a couple customers, its strong enough that we can backfill it. Good position to take

chances and raise price. Outlook for group pace on a comp basis to prior yrs has never been

better.”

“Highest occupancy on record…we don’t even know what kind of pricing power we will have

(have never seen this before). Our view is…go do more, if wrong can always pull back. We are

telling our guys to push rates harder, and it sticking in 90% of the cases.”

“Most surprising right now is the amount of capital coming in from China and Mid E. Seeing

major buyers getting money out of China/Asia and coming into the U.S. and paying big prices.

The Chinese investor…while we think in 5-7 yr horizons…they think in 50-100 yr horizons.”

“We believe there is still room to run in cycle—investors understand why we have deployed a

significant amount of equity into the space. Property prices in US have surpassed peak pricing in

almost all asset classes, but lodging is still below”

“Presumption is they have to go back up, I don’t think that is the case. Already seeing negative

rates in Europe….nothing written anywhere that just because you are a borrower that you need to

pay the lender instead of the other way around. I think they can go negative in a material way.

Lower they go the more valuable the cash streams are from the assets we own. Quantitative

easing is just about out of gas so what else can they do? Taking interest rates negative is one of

the options.

24

US Cycle Review

25

Math of the Cycle

Cycle – Should be an elongated upcycle; demand is expected to outpace supply for the next 12-18

months supporting a modest build in occupancy and solid rate growth

Supply - While supply growth is creeping up modestly, “over-building” does not appear to be a

concern/something likely for the foreseeable future. Supply growth is expected to remain below

2% through 2017, below the anticipated demand growth of ~2.5%

Duration - 2015 marks the 6th year of the upcycle with YTD demand growth of 4.5% (in line

with 2014 levels) outpacing supply growth of 0.9% (also in line with 2014 levels). 57 months

into the current upcycle vs. 56 in the prior and 112 from the 90’s cycle.

Occupancy - Levels are at all-time highs north of 65%, ahead of the prior peak of 63.1% in 2007

and 64.9% in 1995. Occupancy build YTD has been higher than anticipated 6-12 months ago.

Rate - Rate is anticipated to grow just above 5% in 2015, which is in line with the levels

anticipated 6-12 months ago and just ahead of 2014 growth of 4.6%. As of 2014, rates were 11%

ahead of prior peak (00’s cycle saw 23% peak to peak ADR growth, 90’s cycle saw 45% peak to

peak ADR growth) and in line with the prior peak on an inflation adjusted basis (00’s cycle saw

inflation adjusted ADR 2% ahead of prior peak, 90’s cycle reached 11% ahead of prior peak).

26

U.S. Cycle – S&D

Demand growth outpaces supply

Occupancy Rises => Raise Price

Early innings driven by occupancy

Later innings driven by rate

27

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

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Supply & Demand Growth Estimates

Supply DemandSource: CRC Estimates, STR, Industry Sources

-20%

-15%

-10%

-5%

0%

5%

10%1

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7E

Occupancy and ADR Contribution to RevPAR Growth Estimates

OCC ADRSource: CRC Estimates, STR, Industry Sources

U.S. Pipeline

Pipeline Picking Up

Supply trending up towards 2%

Large Brand Co’s Represent

~2/3rds of pipeline

28

Yr/Yr Q/Q % of

1Q14 2Q14 3Q14 4Q14 1Q15 Growth Growth Existing

Under Construction

Rooms ('000s) 114 126 134 136 141 24% 5% 2.9%

Hotels 885 970 1,062 1,086 1,117

Starts Next 12 Months

Rooms ('000s) 161 161 165 160 190 18% 15% 3.9%

Hotels 1,327 1,354 1,375 1,351 1,599

Early Planning

Rooms ('000s) 131 134 145 164 158 20% 9% 3.2%

Hotels 1,014 987 1,079 1,208 1,169

Total Pipeline

Rooms ('000s) 406 421 444 461 488 20% 10% 10.0%

Hotels 3,226 3,311 3,516 3,645 3,885

Source: Lodging Econometrics

U.S. Pipeline

1.6%

1.0%

0.4% -0.1%0.2%

1.2%

2.4%

2.8%

1.7%

0.5% 0.5%

0.8%0.9%

1.3%1.6%

1.9%

(20)

0

20

40

60

80

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120

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Supply Growth (Net) and % Growth on Exisitng Supply'000 Rooms

Source: Lodging Econometrics, CRC Estimates

Occupancy ahead; ADR about in line

We’re there!

29

U.S. Cycle – Occupancy is there

Tends to peak at the mid 60% level

Occupancy at all time highs

2014 just ahead of prior peak

2016 trajectory in line with mid 90’s

peak

30

40%

45%

50%

55%

60%

65%

70%

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U.S. Lodging Industry Occupancy

Source: CRC Estimates, STR, Industry Sources

-0.4%-0.2%

1.3%2.7%

90

95

100

105

0 1 2 3 4 5 6 7 8 9 10

Peak to Peak Occupancy

'90 to '00 '00 to '07 '07 to '17E

Yrs in

Cycle

Indexed to

Prior Peak

Source: STR,

CRC Estimates

U.S. Cycle – Time for Some ADR

We are all trusting you to push price

2014 inline on inflation adjusted basis

Lower when adjusted for mix

31

$50

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$120

$130

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U.S. Lodging Industry ADR

Source: CRC Estimates, STR, Industry Sources

11%

2%

-1%

11%

85

90

95

100

105

110

115

0 1 2 3 4 5 6 7 8 9 10

Peak to Peak Inflation Adj. ADR Growth

'90 to '00 '00 to '07 '07 to '17E

Yrs in

Cycle

Indexed to

Prior Peak

Source: STR,

Cleveland Research

Yrs in

Cycle

Current Cycle vs. Prior

RevPar 13% ahead of 2007 levels

Typically 7 year up-cycles

2015 marks 6th year

Overbuild, demand shock, or both

32

45%

22%

13%

34%

75

100

125

150

0 1 2 3 4 5 6 7 8 9 10

Peak to Peak RevPAR Growth

'90 to '00 '00 to '07 '07 to '17E

Yrs in

Cycle

Indexed to

Prior Peak

Source: STR,

CRC Estimates

Assumes RevPAR

Growth 2015 - 2017

$30

$40

$50

$60

$70

$80

$90

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U.S. Lodging Industry RevPAR

Source: CRC Estimates, STR, Industry Sources

U.S. Cycle – RevPAR Inflation Adj

RevPar in line with 2007 levels

when adj for inflation

Growth through 2017 puts up 16%

vs. 10% in 90’s and 2% in 00’s

33

$30

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Inflation Adjusted RevPAR

Source: CRC Estimates, STR, Industry Sources

10%2%

1%

16%

75

100

0 1 2 3 4 5 6 7 8 9 10

Peak to Peak Inflation Adj. RevPAR Growth

'90 to '00 '00 to '07 '07 to '17E

Yrs in

Cycle

Indexed to

Prior Peak

Source: STR,

CRC Estimates

U.S. Summary

34

5.6%

1.6%

3.9%

0.8%

2.2%

8.4%

3.6%

4.6%

0.9%

4.5%

6.8%

1.5%

5.2%

1.3%

2.8%

5.5%

0.5%

5.0%

1.6%2.1%

5.1%

0.1%

5.0%

1.9% 2.0%

-2%

0%

2%

4%

6%

8%

RevPAR Growth Occupancy Growth ADR Growth Supply Growth Demand Growth

Total U.S. Performance Estimates

Source:CRC Estimates, STR, PKF, PWC

13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17

1Q Results Summary

35

1H15 Brand and REIT Key Themes

36

Brand Co’s RevPAR Growth Strength in both N. Am and Intl

Transient Leisure Remains Strong; Improving Mix

Corporate Continues to Improve, Group Momentum persists

Midscale/Economy continued momentum from turn in 2014

U.S. a bright spot, Asia Improving, Europe Improving, Afr/Mid E. easy comps

Occupancy the positive surprise this year

For Most Brands/REITS, Occupancy now above prior peak

Rate showing progress but needs to accelerate

1Q right on track

Brands – 6.4% in 1Q inline with the 6.3% in 4Q ; 2015 guide is 6.3% (2014 was up 6.7%)

REITS – 8.1% in 1Q inline with 7.7% in 4Q ; 2015 guide is up 6.3% (vs. 2014 up 8.4%)

2015 Full Year RevPAR Growth Outlooks calling for 5-7% N. Am and 4-6% Intl

1Q15 Results and 2014 Guidance

37

Market

Ticker Company Cap ($B) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013 2014 4Q14 1Q15 2Q15

Loding Brand Co's

HLT Hilton Worldwide Holdings, Inc. $29.2 5.4% 5.4% 5.1% 4.7% 6.6% 6.7% 8.4% 6.6% 6.6% 5.3% 7.3% 6-7% 5-7% 5-7% 5-7% 5-7%

MAR Marriott International, Inc. Class A $22.2 4.6% 4.7% 4.8% 4.3% 6.2% 5.8% 8.1% 6.2% 6.8% 4.6% 6.6% 5-7% 5-7% 5-7% 5-7% 5-7%

HOT Starwood Hotels & Resorts Worldwide, Inc. $14.6 5.0% 4.4% 4.7% 4.3% 6.3% 5.3% 7.4% 4.4% 5.2% 4.9% 5.8% 3-5% 4-6% 5-7% 5-7% 5-7%

H Hyatt Hotels Corporation Class A $8.5 3.2% 4.6% 5.6% 5.9% 7.7% 6.1% 8.0% 5.1% 7.4% 4.9% 6.7% --- --- --- --- ---

IHG InterContinental Hotels Group PLC Sponsored ADR$10.2 3.3% 4.1% 3.4% 4.4% 6.0% 5.8% 7.0% 5.1% 5.9% 3.8% 6.1% --- --- --- --- ---

WYN Wyndham Worldwide Corporation $10.4 4.0% 2.1% 3.4% 3.8% 4.0% 5.6% 4.6% 3.0% 1.7% 3.4% 4.4% --- --- --- 5-7% 5-7%

LQ La Quinta Holdings, Inc. $3.2 6.7% 7.7% 8.9% 8.4% 8.2% 5.5% 8.0% --- --- --- --- 5.5-7% 6-7%

CHH Choice Hotels International, Inc. $3.3 4.6% 3.5% 3.0% 1.3% 5.6% 7.6% 8.4% 11.2% 9.6% 3.0% 8.5% 9% 11.0% 6.5-8% 6.5-8%

Average 4.3% 4.1% 4.3% 4.1% 6.1% 6.3% 7.6% 6.3% 6.4% 4.4% 6.7% 6.4% 7.0% 6.0% 6.3% 6.3%

Lodging REIT's

Full Service:

HST Host Hotels & Resorts, Inc. $15.4 5.1% 6.1% 5.5% 6.6% 6.8% 5.1% 7.9% 3.2% 3.8% 5.8% 5.7% --- --- --- 5.0% 5.0%

LHO LaSalle Hotel Properties $4.2 5.1% 6.7% 5.1% 5.2% 4.0% 10.3% 11.5% 7.7% 5.4% 5.6% 8.8% 7-9% 4-5% 4.5-5.5% 4.5-6.5% 4.5-6.5%

DRH DiamondRock Hospitality Company $2.7 5.6% 6.7% 5.0% 3.3% 8.4% 11.9% 18.6% 8.3% 7.9% 5.3% 11.6% --- --- --- 6-7% 6-7%

RHP Ryman Hospitality Properties, Inc. $2.9 -1.2% -3.9% -2.7% 0.0% 6.5% 3.6% 10.2% 10.3% 4.0% -2.0% 7.5% --- --- --- 4-6% 4-6%

BEE Strategic Hotels & Resorts, Inc. $3.4 5.0% 9.9% 10.8% 9.7% 6.3% 7.2% 7.0% 6.9% 10.9% 8.8% 7.4% --- --- --- 4-6% 4.5-6.5%

PEB Pebblebrook Hotel Trust $3.0 8.5% 6.0% 6.2% 5.2% 8.5% 9.2% 11.4% 7.4% 6.6% 6.4% 9.2% 7-8% 1-3% 4-6% 6.5-7.5% 6.5-7.5%

CHSP Chesapeake Lodging Trust $1.9 5.5% 7.7% 4.2% 4.8% 12.0% 7.0% 11.4% 7.5% 9.5% 5.1% 9.5% 5.5-7% 3-4% 5.5-7.5% 7.5-9.5% 6.5-8.5%

SHO Sunstone Hotel Investors, Inc. $3.3 2.1% 2.6% 7.6% 3.5% 8.6% 6.2% 7.7% 6.0% 7.0% 4.5% 6.8% 5.5-7% 5-6.5% 6-7% 5-7% 5-7%

Average 4.5% 5.2% 5.2% 4.8% 7.6% 7.6% 10.7% 7.2% 6.9% 4.9% 8.3% 7.0% 3.9% 5.8% 6.1% 6.0%

Select Service:

HPT Hospitality Properties Trust $4.6 7.2% 7.1% 8.1% 7.9% 10.1% 8.4% 11.8% 10.4% 10.1% 7.7% 10.2% --- --- --- --- ---

RLJ RLJ Lodging Trust $4.0 10.6% 8.7% 5.4% 3.9% 6.0% 6.6% 9.6% 6.0% 10.7% 7.2% 7.2% --- --- --- 5-6.5% 5-6.5%

INN Summit Hotel Properties, Inc., $1.2 6.9% 7.5% 11.4% 11.3% 10.4% 8.8% 5.7% 5-7% 9-11% 5.5-7.5% 6-8%

Average 8.9% 7.9% 6.8% 6.2% 7.9% 8.8% 10.9% 8.9% 9.9% 6.9% 8.7% 6.0% 5.8% 5.8%

Small Caps

FCH FelCor Lodging Trust Incorporated $1.6 6.7% 6.3% 7.1% 7.7% 7.0% 9.2% 9.8% 9.3% 13.1% 7.1% 8.9% --- --- --- 8-9% 8.5-9.5%

CLDT Chatham Lodging Trust $1.1 4.2% 2.7% 3.5% 4.9% 7.8% 8.0% 10.5% 6.5% 7.9% 4.8% 5.5-7.5% 4-6% 5-7% 5.5-7%

Average 5.5% 4.5% 5.3% 6.3% 7.4% 8.6% 10.2% 7.9% 10.5% 6.0% 8.9% 6.5% 8.5% 8.5%

Source: Company Filings

2015 from 4Q 2015 from 1Q

Lodging Brands and REITS 2014 Guidance

RevPAR GuidanceQuarterly RevPAR Growth Annual Growth

1Q15 Update Brand Co’s – 6.4% in 1Q inline with 6.3% in 4Q ; 2015 guide is 6.3% (vs. 2014 up 6.7%)

Hilton (700k) – 6.6% in 1Q inline with 6.6% in 4Q ; Maintaining full yr at 5-7%

Marriott (700k) – 6.8% in 1Q up from 6.2% in 4Q ; Maintaining full yr at 5-7%

Starwood (350k) –5.2% in 1Q up from 4.4% in 4Q ; Maintaining full yr at 5-7%

Hyatt (150k) – 7.4% in 1Q up from 5.1% in 4Q ; No Guide

IHG (150k) – 5.9% in 1Q up from 5.1% in 4Q ; No Guide

Wyndham (150k) – 1.7% in 1Q down from 3.0% in 4Q ; No Guide

Choice (150k) – 9.6% in 1Q down from 11.2% in 4Q ; Maintaining at 6.5-8%

REIT’s – 8.1% in 1Q inline with 7.7% in 4Q ; 2015 guide is up 6.3% (vs. 2014 up 8.4%)

Host (66k) – 3.8% in 1Q up from 3.2% in 4Q ; Maintaining full yr at 5%

LaSalle (12k) – 5.4% in 1Q down from 7.7% in 4Q ; Maintaining full yr at 4.5-6.5%

DiamondRock (12k) - 7.9% in 1Q inline from 8.3% in 4Q ; Maintaining full yr at 6-7%

Ryman (8k) – 4.0% in 1Q down from 10.3% in 4Q ; Maintaining full yr at 4.5-6.5%

Strategic (8k) – 10.9% in 1Q up with 6.9% in 4Q ; Up midpoint by 50bps to 4.5-6.5% from 4-6%

Pebblebrook (6k) – 6.6% in 1Q down from 7.4% in 4Q ; Maintaining full yr at 6.5-7.5%

Chesapeake (6k) – 9.5% in 1Q up from 7.5% in 4Q ; Maintaining full yr at 6.5-8.5%

Sunstone(13k) – 7.0% in 1Q up from 6.0% in 4Q ; Maintaining full yr at 5-7%

Hospitality Prop. Trust (44k) – 10.1% in 1Q inline with 10.4% in 4Q;

RLJ(21k) – 10.7% in 1Q up from 6.0% in 4Q ; Maintaining full yr at 6-8%

Summit (11k) – 8.8% in 24.1% inline from 10.4% in 4Q ; Up midpoint by 50bps to 5-7% from 5.5-7%

FelCor (18k) –13.1% in 1Q up from 9.3% in 4Q ; Up range 50bps to 8-9% from 8.5-9.5%

Chatham (3k) – 7.9% in 1Q up from 6.5% in 4Q ; Up midpoint 50bps to 5-7% from 5.5-7%

38

Big Picture Brand

All saw similar yr/yr growth in domestic RevPAR

International showed sequential acceleration

39

6.7%5.8%

5.3%

8.4% 8.1%7.4%

6.6%6.2%

4.4%

6.6% 6.8%

5.2%

0%

2%

4%

6%

8%

10%

HLT MAR HOT

Systemwide Quarterly RevPar by Brand

2Q14 3Q14 4Q14 1Q15Source: Company Filings

4.3%4.8%

4.1%

7.2%

5.6% 5.4%5.8%

4.6%

2.7%

6.9% 6.7%

3.3%

0%

2%

4%

6%

8%

10%

HLT MAR HOT

International Quarterly RevPar by Brand

2Q14 3Q14 4Q14 1Q15Source: Company Filings

7.3%

6.0% 6.3%

8.8% 8.7%9.1%

6.8% 6.7%5.8%

6.5%6.9% 6.8%

0%

2%

4%

6%

8%

10%

HLT MAR HOT

Domestic Quarterly RevPar by Brand

2Q14 3Q14 4Q14 1Q15Source: Company Filings

2015 Outlook by Brand: 5-7%

Good growth expected to continue

U.S. – likely grows 5-7%; Group pace and transient momentum strong

Intl – likely grows 4-6%; Mixed by geography

HLT looking for 5-7%

N. Am strength to persist; Group pacing up mid to high singles

MAR looking for 5-7%

N. Am leads growth; Group pacing up 4%, same level at this time last year.

HOT looking for 5-7%

Expects N. America at the higher end and international at the lower end. Group pacing up mid singles

H does not guide but noted that Group is pacing up 8% (in line with last call)

40

Hilton – Consistent US Strength

Keys to the Story

Continue to drive RevPAR and Units 6+

Margin in Owned – U.S. driven Story

Stock – Blackstone, S&P, De-leverage, Dividend

Value Creation Opportunities – Spin Owned or Timeshare

1Q Systemwide RevPAR up 6.6% (was 6.6% in 4Q) on US growth fairly consistent at up

6.5% (6.8% in 4Q) and International showing a modest step up 6.9% ( 5.8% in 4Q)

41

6.6% 5.5% 5.4%

10.1%

6.6%

-2%

0%

2%

4%

6%

8%

10%

12%

Americas Europe Mid E./Afr Asia Pac Worldwide

HLT 1Q15 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

6.8% 6.9% 6.7%

2.9%

6.6%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

Americas Europe Mid E./Afr Asia Pac Worldwide

HLT 4Q14 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

HLT – N. Am Stepping Up

42

4.7%

6.7% 7.4%

8.7%

6.8% 6.6%

5.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Americas RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.7%

6.6% 6.7%

8.4%

6.6% 6.6%

5.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Total RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.6%

6.5%

4.4%

6.6% 6.9%

5.5%

3.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(3.2%)(0.6%)

(3.4%)

15.5%

6.7% 5.4% 6.4%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Mid E./Afr RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

8.6% 8.7%

4.8%

3.4% 2.9%

10.1%

7.0%

-1%

1%

3%

5%

7%

9%

11%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Hilton Themes

U.S. Strong, USD no meaningful impact yet, Lower fuel prices could benefit

Looking at the U.S. specifically, HLT noted that growth remained solid at up 6.5% (6.8% in 4Q)

as they effectively offset about 100bps of weather related headwinds in the quarter (50bps in Jan,

300bps in Feb). They remain confident in the trajectory of their brands in the backdrop of

favorable industry fundamentals of demand continuing to outpace muted supply growth. In terms

of the stronger USD impacting international arrivals/guest stays, HLT noted that a.) it only

represents about 5% of their room nights and b.) International business was actually up 0.5%

yr/yr in 1Q. This is similar to MAR’s commentary on the subject. Europe (specifically Germany

and France) was down slightly but China was still up yr/yr. Looking into the summer months,

they expect more of the same (Europe a bit softer, China continue to grow). They also highlighted

that lower fuel prices should translate to incremental travel of domestic guests this summer,

which is a potential offset. Management noted that travel to Europe at their hotels is up from U.S.,

the Middle East, and China as leisure guests are taking advantage of the weaker Euro.

HLT saw Group RevPAR growth of 6.8% outpace Transient growth of 6.3% in 1Q, and the

company is expecting consistent levels of growth out of both buckets of demand throughout 2015.

HLT noted that prospective group business was up significantly in the quarter and that 2Q looked

strong/was showing solid growth. HLT is still seeing the full yr Group pace up mid singles (in

line with level mentioned on prior call). Food & Beverage spend is benefiting from the

improvement in Group and HLT saw mid-single digit revenue growth across its owned and

managed portfolio.

43

Marriott – Long the U.S. and Asset Light

Keys to the Story

Continue to drive RevPAR and Units 6+

Stock – Keep it simple, Buyback machine

Aggressive with tuck-ins and new brand launches

1Q Systemwide RevPAR up 6.8% (was 6.2% in 4Q) on US growth fairly consistent at up

6.9% (6.7% in 4Q) and International showing a modest step up 6.7% ( 4.6% in 4Q)

44

6.7% 7.7%

2.7%

14.9%

2.9%

6.2%

-5%

0%

5%

10%

15%

20%

N. America Carib &

L. Amerca

Europe Mid E./Afr Asia Pac Worldwide

MAR 4Q14 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

6.9% 5.7%

7.0%

9.3%

6.2% 6.8%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

N. America Carib &

L. Amerca

Europe Mid E./Afr Asia Pac Worldwide

MAR 1Q15 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

Marriott Key Themes

Both N. American and Intl Stepping Up

1Q N. American RevPAR growth came in up 6.9% (was up 6.7% in 4Q). Limited service continues to

outperform at up 8% in the quarter. In terms of specific markets, MAR called out San Fran, Boston, Dallas, San

Diego, and Tampa as posting double digit growth. 3Q International RevPAR growth came in ahead of

ours/management’s expectations at up 6.7% (CRC 4.5%, guidance +3% to +5%, was up 4.6% in 3Q) showing a

nice acceleration in growth (all regions showing mid single digit growth or better for the first time in a while).

Carib & L. America continued to show strong growth up 5.7% (up 7.7% last Q). Asia Pacific took a nice step up

to 6.2% (up 2.9% last Q), and Africa/Mid E. remained elevated at 9.3% (14.9% last Q – easy comps from

Egypt). Europe came in ahead of expectations at up 7.0% (up 2.7% last Q).

Group RevPAR up 5% in 1Q15 (was up 6% in 4Q14) and pacing up 4% for 2015 (noted 5%

on prior call); saw 10% revenue growth for Group bookings made in the quarter for the

next 12 months; 3Q15 faces tough yr/yr Group comparison

MAR saw good Group RevPAR growth in the quarter at up 5%, similar to the level seen in 4Q and in line with

the guided full yr pace target. Management noted that the remainder of 2015 is tracking up 4% as the company

faces a difficult Group comparison in 3Q15 (September of 2014 was especially strong for Group). MAR noted

that small groups continued to show strength in the quarter.

45

MAR – N. Am/Asia Pac Strong

46

4.8% 5.2% 5.2%

4.7%

6.3% 6.0%

8.7%

6.7% 6.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR N. America RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

3.3%

2.5%

3.8% 3.8%

6.4%

5.6%

4.9%

2.9%

6.2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

11.2%

5.7%

(11.3%)(10.7%)

0.4% 4.9%

15.0% 14.9%

9.3%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Mid E./Afr RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(1.8%)

1.2%

2.2%

3.3% 3.6%

1.6%

3.2% 2.7%

7.0%

-4%

-2%

0%

2%

4%

6%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.6% 4.7% 4.8% 4.3%

6.2% 5.8%

8.1%

6.2% 6.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Total RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.1%

4.4%

7.5% 7.1%

9.9% 10.6% 10.9%

7.7%

5.7%

0%

2%

4%

6%

8%

10%

12%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Carib. & L. Am RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Starwood – It’s complicated

Keys to the Story

RevPAR guidance is 5-7% range – is the upper half achievable?

Stock – Keep promises on unit growth and asset sales, Are you for sale?

Brand health – Sheraton refresh, lack of select serve, how will Tribute fair?

1Q Systemwide RevPAR up 5.2% (was 4.4% in 4Q) on strong domestic growth at up 6.8%

(5.8% in 4Q) and International still soft at up 3.2%(2.7% in 4Q)

47

6.8%

4.7%

0.4%

5.7% 5.1%

0.8%

5.2%

-6%

-4%

-2%

0%

2%

4%

6%

8%

N. Am L. Am G. China ROA Eur AME WW

HOT 1Q15 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

5.8%

2.8%

4.1%

1.2%

4.0%

(0.3%)

4.4%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

N. Am L. Am G. China ROA Eur AME WW

HOT 4Q14 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

Starwood Key Themes

N. Am impressive and Intl still struggling

1Q N. America RevPAR growth came in at an impressive 6.8% yr/yr, ahead of the 5.8% in 4Q,

again led by rate growth. In terms of specific regions, RevPAR continues to be led by the West up

double digits ( was up 9% in 4Q) and South up 8% (was up 8% in 4Q). HOT continued to see

softer performance in the North region as New York and weather muted performance to the 4.6%

level. HOT noted that Group growth was up 6% in 1Q and is pacing up mid singles for the year as

a whole (a step ahead of the low singles called out on the prior call). Production in the quarter for

the quarter and in the quarter for all future periods was solid at up double digits. On the

international front, HOT showed similar growth at up 3.2% in 1Q (was up 2.7% in 4Q). Europe

was up 5.1% (up 4.0% in 4Q), L. America up 4.7% (up 2.8% in 4Q), Africa/Mid E down 0.8%

(was up -0.3% in 4Q), China up 0.4% (was up 4.1% in 4Q), and Rest of Asia remained soft at up

5.7% (was 1.2% in 4Q).

Sheraton Refresh

Adam Aaron - It took Sheraton some time to get into its current state, so it’s going to take the

Sheraton brand some time to improve, but improve we think that it will. And we think it’ll improve

two ways. One, for people who have Sheraton hotels today entrusted to us, we think we will be

delivering better top-line revenue and better bottom-line profitability for our owners. We also

think it will give more encouragement to the hotel developer community generally that Sheraton

is a brand that is a good place to entrust their hotel asset.

48

Starwood Growth by Region

49

5.0%

4.4% 4.7%

5.3%

6.3%

5.3%

7.4%

4.4%

5.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Total RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.2%

5.2% 5.8% 6.1%

7.1%

6.3%

9.1%

5.8%

6.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT N. America RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

0.3% 0.7% 1.0%

2.3% 2.9%

4.8%

6.1%

2.8%

4.7%

-4%

-2%

0%

2%

4%

6%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT L. America RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(1.3%)

2.5% 1.9%

3.9%

2.5%

1.9%

6.1%

4.0%

5.1%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

7.3% 7.5%

0.6%

2.0% 2.1%

(0.9%)

4.7%

(0.3%)0.8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Africa/Mid. E RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.4% 0.9%

1.6% 3.5%

11.9%

11.1%

8.7%

4.1%

0.4%

-10%

-5%

0%

5%

10%

15%

20%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Greater China RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Hyatt – If I had a billion dollars…

Keys to the Story

6% RevPAR and 7-8% Units – Company does not guide

Stock – $1B to deploy: ROIC or wealth preservation/brand building

Confusing – Acquisitions/Dispositions

1Q Systemwide RevPAR up 7.4% (was 5.1% in 4Q)

50

8.3%

10.1%

1.4%

5.8%

7.4%

-2%

0%

2%

4%

6%

8%

10%

12%

Am. Full

Service

Am. Select

Service

EAME/SWA Asia Pac Worldwide

H 1Q15 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

5.8% 7.3%

2.6% 3.1%

5.1%

-2%

0%

2%

4%

6%

8%

10%

Am. Full

Service

Am. Select

Service

EAME/SWA Asia Pac Worldwide

H 4Q14 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

Hyatt Growth by Region

51

3.2%

4.6%

5.6% 5.9%

7.7%

6.1%

8.0%

5.1%

7.4%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H Total RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

2.8%

5.6%

7.7% 7.3%

8.6%

6.3%

8.8%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

H Americas Full Serv. RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.4% 6.0%

4.5% 4.0%

7.0%

8.4%

9.7%

7.3%

10.1%

-2%

0%

2%

4%

6%

8%

10%

12%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H Americas Limited Serv. RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.2% 6.1%

2.4%

5.0% 5.3%

3.9%

7.8%

2.6%

1.4%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H EAME/SWA RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(0.4%) (0.7%)

2.1%

4.2%

7.3%

5.1%

4.1%

3.1%

5.8%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Hyatt Key Themes

Worldwide RevPAR accelerated on Americas strength and improvement in Asia Pac

Am Full service RevPAR growth moderated to 8.3% (5.8% in 4Q) and Select service moderated

to up 10.1% (7.3% in 4Q). International RevPAR showed improvement with Asia Pac coming in

up 5.8% (3.1% in 4Q) and Europe/Africa/Mid E./SW Asia was softer at 1.4% (2.6% 4Q).

Group reaccelerated to up 10% in 1Q; still pacing up 7-8% for 2015

H’s Group RevPAR growth has continues to bounce around in 2015 after a lumpy 2014 (which H

as attributed to the Easter shift which impacted 2Q14 and a less favorable convention/Holiday

calendar in 4Q14/very favorable 3Q14). Group was up 10% in 1Q of which 6% was rate.

Production in the quarter for the quarter was up 15% yr/yr, and H saw strength in both association

and corporate driven group business. H again called out 2015 pacing up over 7% (in line with the

8% mentioned on the prior call. Management noted that 3Q15 is pacing a bit softer (while 2Q and

4Q look strong) due to tough Holiday compares. Early reads on 2016 Group business sounded

positive as well.

52

Stocks

53

$50

$55

$60

$65

$70

$75

$80

$85

$90

MAR Stock Price - Trailing 12 Months

MARSource: Factset

$19

$21

$23

$25

$27

$29

$31

$33

HLT Stock Price - Trailing 12 Months

HLTSource: Factset

$60

$65

$70

$75

$80

$85

$90

HOT Stock Price - Trailing 12 Months

HOTSource: Factset

$50

$52

$54

$56

$58

$60

$62

$64

$66

H Stock Price - Trailing 12 Months

HSource: Factset

Intercontinental – 4Q remains MSD

Themes from the Call

Seeing positive signs for summer travel/expects benefit from fuel

Buy vs. build – talked through Kimpton and other opportunites

1Q Systemwide RevPAR up 5.9% (was 5.1% in 4Q)

54

6.6% 6.2% 5.8% 6.2%

2.4%

5.9%

-4%

-2%

0%

2%

4%

6%

8%

US Americas Europe AMEA China Total

IHG 1Q15 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

7.5% 7.0%

4.2%

3.1%

(2.0%)

5.1%

-4%

-2%

0%

2%

4%

6%

8%

10%

US Americas Europe AMEA China Total

IHG 4Q14 RevPAR By Geography

Rate Occupancy RevPARSource:

Company Filings

Intercontinental – US Strong; Intl stepping up

55

3.3%

4.1%

3.4%

4.4%

6.0% 5.7%

7.0%

5.1%

5.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG Total RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.0% 5.0%

3.6% 3.0%

6.4% 6.7%

8.7%

7.5%

6.6%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG US RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.5% 4.9%

3.8% 4.0%

6.6% 6.7%

8.4%

7.0% 6.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG Americas RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(2.1%)

1.9% 1.4%

4.9%

6.1%

4.1%

6.1%

4.2%

5.8%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.6%

6.8%

5.5%

6.4%

3.8% 3.6%

4.4%

3.1%

6.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG AMEA RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

2.2%

(1.5%)

0.7%

2.4%

3.9% 4.6%

0.8%

(2.0%)

2.4%

-4%

-2%

0%

2%

4%

6%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG China RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Wyndham – Dom still strong; Intl a bit softer

Domestic stable and intl moderates

Domestic RevPAR growth strong at 8-9%

Intl RevPAR soft on Wyndham in China (would have been close to flat in constant dollars)

56

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Wyndham RevPAR Worldwide Growth

RevPAR Worldwide Growth RevPAR NA Growth RevPAR Intl GrowthSource: Company Filings

Group

57

Group Key Themes

1Q15 up MSD (4Q14 up MSD, 3Q14 up HSD, 2Q14 up L-MSD and1Q14 up M-HSD)

3Q15 faces difficult comps (3Q14 growth especially high on favorable holiday calendar/city wide

line up); “Normal” September this yr vs. “Incredible” September last yr

2015 pace up MSD – different strategies on mix (trade off of transient vs. group)

Seen numerous instances of transient rooms down slightly but rates up M-HSD and Group room

and rate up MSD

Group business booked/production in 1Q for future periods up nicely in terms of rooms and rate

Favorable Mix Remains: Corporate Strong, F&B spend improving

Managing Group Business by Night

Higher number of small meetings

58

Group

7%8%

7%

5%

2% 2%

9%10%

9%8%

6%

1%

7%

5%

10%

0%

2%

4%

6%

8%

10%

12%

HLT MAR H

Yr/Yr Group RevPAR Growth by Brand

1Q14 2Q14 3Q14 4Q14 1Q15Source: Company Filings

59

7%

7%

5%5% 5%

7%

0%

2%

4%

6%

8%

HLT MAR H

Simple Avg. of Annual Group RevPAR

2014 2015ESource: Company Filings

Group Down Relative to Prior Peak

60

Group From 1Q15

Brand Co’s

Hilton (685k) – Up 7% in 1Q inline with 8% in 4Q, 2015 still pacing up MSD

Marriott (680k) – Up 6% in 1Q inline with 6% in 4Q, 2015 still pacing up 4%

Starwood (350k) – Up 6% in 1Q up from the LSD in 4Q; 2015 packing up MSD (up from LSD last call)

Hyatt (150k) – Up 10% in 1Q up from 1% in 4Q; Still pacing up HSD for 2015

Lodging REIT’s

Host (65k) – Group up 4% in 1Q up from the flat in 4Q; 2015 pacing up 3.5% (noted modestly on prior call);

called out 2Q pacing up more than 7%

LaSalle (12k) – Group up 6-7% inline with up 8% in 4Q; 2015 pacing up 5.4% (noted LSD on last call)

Diamond Rock (11k) – Group up 6.6% in 1Q up from the 4.7% in 4Q; 2015 Group rev still pacing up mid

singles (mentioned 4% on last call with roomnights down and rates up); 2Q flat, 3Q negative and 4Q positive

Ryman (8k) – RevPAR up 4% (guidance for flat) down from the 10.3% in 4Q; maintaining 2015 outlook up 4-

6%; 75% of business from Group. 2016 Group revenue pacing up high singles (mentioned up 5% on prior call)

Strategic (8k) – 1Q Group roomnights up 7% down from the 15% in 4Q, with rates up 6%; 2015 rooms up 3%

and rates up 3% (in line with comments on last call)

Pebblebrook (6k) – 1Q Group up 10.8% inline with the 11.5% in 4Q; 2015 revenue pace up 4% (in line with

comments on last call, renovations impacting)

Sunstone(13k) – 2015 Group pacing up 4% (in line with the 5% on prior call)

61

Group From 4Q14

Brand Co’s

Hilton (685k) – Up 8% in 4Q inline with 9% in 3Q, 2015 pacing up M-HSD

Marriott (680k) – Up 6% in 4Q down from 10% in 3Q; 2015 pacing up 4%

Starwood (350k) – Up low singles down from low doubles in 3Q; 2015 packing up LSD

Hyatt (150k) – Up 1% in 4Q down from 9% in 3Q; Still pacing up HSD for 2015

Lodging REIT’s

Host (65k) – Group Flat in 4Q in line with guidance for it to moderate (was up 10.5% in 3Q, 2% in 2Q, and

11% in 1Q); 2015 up “modestly” and 1H looks quite strong (last call noted 2015 pacing up 4%)

LaSalle (12k) – Group up 8% in 4Q inline with 9% in 3Q; 2015 pacing up 5.4% (noted LSD on last call)

Diamond Rock (11k) – Group up 4.7% in 4Q down from 26% in 3Q, 2015 Group rev pacing up 4%

(roomnights down and rates up – looking to fill with higher priced transient/alluded to this on last call)

Ryman (8k) – RevPAR up 10.3% inline with 10.2% in 3Q; Expect 2015 up 4-6%; Group rooms up slightly

Strategic (8k) – 4Q Group roomnights up 7% down from 15% in 3Q with rates up 6%; 2015 rooms up 3% and

rates up 3% (in line with comments on last call)

Pebblebrook (6k) – 4Q Group up 12%; 2015 group pace up 3% (in line with comments on last call, renovations

impacting)

Sunstone(13k) – Group pace for 2015 up 5.3% (ahead of the 1.5% on the last call; 2014 finished up 7%)

62

Group From 3Q14

Brand Co’s

Hilton (685k) – Up 9% in 3Q up from 5% in 2Q and the 7.4% in 1Q, 2015 pacing up M-HSD

Marriott (680k) – Up 10% in 3Q up from 2% in 2Q: 4Q still pacing flat; 2015 pacing up 4%

Starwood (350k) – 3Q up Low double digits up from MSD in 2Q; 4Q and 2015 packing up LSD

Hyatt (150k) – Up 9% in 3Q up from 2% in 2Q and 9% in 1Q; Still pacing up HSD for 2015

Lodging REIT’s

Host (65k) – Group up 10.5% in 3Q (up 2% in 2Q and 11% in 1Q); 4Q growth to moderate, 2015 pacing up 4%

LaSalle (12k) – Group up 9% in 3Q and pacing up 9% for 4Q and LSD for 2015

Diamond Rock (11k) – Group up 26% yr/yr in 3Q, bookings up 24% yr/yr, 4Q pace up 4%; 2015 looks good

Ryman (8k) – Group up 10.2% (ahead of 3.6% last Q); 4Q looks healthy; 2015 pacing ahead

Strategic (8k) – Roomnights up 15%; 4Q up 10%; 2015 group rooms up slightly at 3% higher rates

Pebblebrook (6k) –3Q Group solid; 4Q Group rev pacing up 12%; 2015 group pace up 4%

Sunstone(13k) – Group production up 15% putting YTD up 8%; 2014 pacing up 5.5% and 2015 up 1.5%

Felcor : Group pace up 8.5%

63

Group From 2Q14

Brand Co’s

Hilton (685k) – Up 5% in 2Q down from 7.4% in 1Q, 3Q and 4Q both pacing up HSD

Marriott (680k) – Up 2% in 2Q down from 8% in 1Q; Pacing Up 5% (inline with 5% as of May and 4% in

Feb); 3Q looking up HSD and 4Q closer to flat

Starwood (350k) – Still pacing up Mid-single digits; Seeing corporate group business strong

Hyatt (150k) – Up 2% in 2Q down from 9% in 1Q and 6% in 4Q; Production up 11% yr/yr; Pacing up LSD for

2H14 and up HSD for 2015

Lodging REIT’s

Host (65k) – Up 2% in 2Q down from up 11% in 1Q; pace 6% for 2014 up from 5.5% as of May, production up

14% yr/yr

LaSalle (12k) – Pacing up 7% (up from 4% in May and 2% in Feb)

Ryman (8k) – 2015 Group ADR tracking up MSD and 2016 ADR up HSD

Strategic (8k) – Group rooms flat in 2Q (20% 2yrs stacked) down from up 6% in 1Q; Pacing up 9% for 2014

Pebblebrook (6k) – Solid 2Q after an up 4% in 1Q; Pacing up 11.8% for 2H 2014 vs. 8% for 2014 as of May

Chesapeake (6k) – Still pacing up 15% for 2014 inline with the 15% as of May and ahead 12% as of Feb

Sunstone(13k) –Group Pacing up 6.5% up from the 5% in May and 5% in March

Felcor : Group pace up 7% for 2014 up from the 5% as of 1Q call; Group rooms up 8% YTD

64

Group From 1Q14

Brand Co’s

Hilton (685k) – Up in 7.4% in 1Q, Outpacing Transient Growth, Banquet up 12%

Marriott (680k) – Up 8% in 1Q; Pacing Up 5% (up from the 4% in Feb); 2Q/3Q looking up 6-8%, 4Q flat

Starwood (350k) – Pacing up Mid-single digits; Seeing corporate group business strong

Hyatt (150k) – Up 9% in 1Q (up 6% in 4Q); Production up 13% yr/yr; Pacing up 7% (up from 5% last Q)

Lodging REIT’s

Host (65k) – Up 11% in 1Q (up 6% in 4Q); April production up 10% yr/yr; Pacing up 5.5%

LaSalle (12k) – Pacing up 4% (up from 2% in Feb)

Ryman (8k) – April production up 100%; ADR on booked group rooms up 6%

Strategic (8k) – Group rooms flat in 2Q (20% 2yrs stacked) vs. up 6% in 1Q; Pacing up 9% for 2014

Pebblebrook (6k) – Up 4% in 1Q; Pacing up 8% for 2014

Chesapeake (6k) – Pacing up 15% (up from 13% last Q)

Sunstone(13k) – Group up 5% in 1Q; Group Pacing up 6.5% (up from 5% in March and negative 6-9 Mos ago)

65

Group Trends – Hilton

Hilton: Up 7% in 1Q inline with 8% in 4Q, 2015 still pacing up MSD

System-wide group room revenue rose 6.8% in the first quarter, supported by strong demand, especially from

small groups and company meetings. Performance was modestly ahead of system-wide transient growth of

6.3%, which benefited from strong U.S. corporate-negotiated and rack-rated business, increasing by 9% and

nearly 10%, respectively.

In group, we’re seeing strong growth at the top end of the demand funnel, with prospective group business up

significantly in the quarter year-over-year. We expect group business strength will continue, particularly in

the seasonally stronger second quarter, which is also showing solid growth. Group position continues to

track up in the mid-single digits for the full year.

I think this year we think they’re going to both (Transient and Group) be in the 6% to 7% range, and one

might be a little higher or lower depending on the quarter, because as we all know group sort of cycles

differently in the quarters depending on the big groups and the big hotels. But we feel like it’s going to – they’re

both going to be in that range, which is why I sort of say, I’ve never felt – I’ve never seen it feel better when

you’ve got sort of all the cylinders hitting at the same time.

It’s hard not to feel exceptionally good about what’s going on in the sense that transient business is good and

continues to stay good, if not get a little bit better. Group is rebounding exactly the way that we would think

with the ancillary spend coming along with it, the patterns looking forward, feel very good and supply is still

at historically low levels and everything that you see going into the next two or three years suggest it’s going to

be significantly below 30-year averages. So I’m going to just say we feel really good about, where we are in the

cycle.

66

Group Trends – Hyatt

Hyatt: Up 10% in 1Q up from 1% in 4Q; Still pacing up HSD for 2015

On the group side, group rooms’ revenue at comparable U.S. full service hotels was up a strong 10% in the quarter with average

daily rates up approximately 6%. This is the 18th quarter in a row that we’ve seen rate growth for our group business. And this

quarter’s rate growth is the strongest, since the second quarter of 2007. Group revenue from corporate and association

customers was healthy in the quarter. The revenue from associations benefited from strong growth in room nights, while revenue

from corporate customers benefited from strong rate growth.

Group revenue that was booked in the quarter, for the quarter increased over 15% versus last year. We saw a strong association

demand in New Orleans, San Francisco and Chicago and strong corporate demand in San Diego, Phoenix and Maui.

Our group revenue pace remains strong for 2015 up over 7%, and approximately 85% of our group business is on the books for

2015, which is in line with our expectations. Looking ahead in 2015, group pace is relatively stronger in the second quarter and

fourth quarter with the third quarter being impacted by the timing of holidays. We expect this momentum in group business to

continue through 2015 and beyond, and we are encouraged by the results we saw in the quarter.

67

9%10%

6%7%

8%7%

9%8%

6%

8%7% 7%

6%

9%

6%

1%

3%

-6%

5%

7% 6%

9%

2%

9%

1%

10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Hyatt Group vs. Transient Revenue Growth

Transient Rev Growth Group Rev GrowthSource: Company Filings

Group Trends – Marriott

Marriott: Up 6% in 1Q inline with 6% in 4Q, 2015 still pacing up 4%

Group RevPAR at our full-service hotels in North America rose more than 5%, including 4% from higher room

rates. Demand from smaller groups was particularly strong.

Our full-service hotel group booking pace for the remainder of 2015 is up roughly 4%. You probably recall that the

third quarter of 2014 benefited from shifting holidays and very strong group business. In 2015, group business in

the third quarter will face these tough comparisons.

Well, I think they are getting aggressive on group price growth. We didn’t hang this out there in our prepared

remarks, but if you look at the bookings we did in the first quarter of 2015, for the next 12 months, pricing – room

rates were up 6% and room nights were up 3%, so, 9.5% of revenue growth for the bookings in the quarter for

the next 12 months.

And when you look at the next 12 months – so essentially two years out, 13 to 24 months out – you’ve got about the

same, 5.5% rate growth and 3.5% room night growth. And so, in fact, we are seeing that dynamic very much in

play,

68

Group Trends – Starwood

Starwood: Up 6% in 1Q up from the LSD in 4Q; 2015 packing up MSD (up from LSD last

call)

Group demand in North America has been good with group revenue in the quarter up over 6% at our owned

and managed hotels. Corporate group was very strong, up nearly 10% versus last year. That was helped by

revenue production in the quarter, for the quarter, up double-digits.

Looking ahead, group revenue production into all years was also up double-digits. That increase in

production on top of the previously strong group bookings has moved our group revenue on the books for 2015

up mid-single-digits versus last year. That’s an increase from the lower-single-digit pace we had in the fourth

quarter of 2014. Transient performance in the quarter was up 4%, driven mostly by increases in rate.

69

Host

RevPAR up 3.8% in 1Q similar to the 3.2% in 4Q; maintaining 2015 outlook at up 4.5-5.5%

Growth in the quarter hindered by renovations – was up 5.5% at hotels not under construction

Group was up 4% (ahead of the flat in 4Q14, was up 10.5% in 3Q14, 2% in 2Q14, and 11% in 1Q14); 2015

now pacing up 3.5% yr/yr (said 2015 was pacing up modestly on prior call) and 2Q is pacing up more than 7%

Group bookings made in 1Q were up 10.5% yr/yr

Management expects RevPAR growth to improve throughout 2015 and thinks 4Q of this year is setting up as

particularly strong

Did not see big impact of intl arrivals slowing at hotels in 1Q; 2Q summer travel could be impacted; saw travel

to European hotels up 6-8% in 1Q which is supporting European RevPAR growth

Positives: SF, Boston, Phoenix, San Diego, Florida, LA, Atlanta

Negatives:

New York – Super Bowl, new supply, winter storms, light citywide; did NOT see any impact from stonger US dollar impacting

arrvals but summer travel could be impacted, think 1Q is weakest of the year/should perform better/expect positive RevPAR

(vs. 1Q NY down yr/yr)

D.C. – renovations/new supply hindered, expect to improve in 2Q and over next few years as Group pace looks solid

Houston – energy layoff should continue to negatively impact through 2015

70

Host - Group Trends

Group up 4% in 1Q (ahead of the flat in 4Q); 2015 pacing up 3.5% (noted modestly on prior call); called

out 2Q pacing up more than 7%

On the group side, demand increased by 1%, driven by an 8.5% increase in our association segment.

Corporate business was flat to last year, which means we booked over 15,000 rooms to offset the loss of the

Super Bowl group we had in 2014 in the New York City. Group rate was up 3% leading to group revenue

increase of 4%, perhaps providing better insight into the strength of our group business, demand in revenues

increased more than 2% and 5.5% respectively over last year, when we look at the hotels unaffected by

renovation in either 2014 or 2015.

Overall, we expect group demand to remain solid through the remainder of the year. Continuing our experience

in Q4 of last year, bookings in the first quarter for the year increased by more than 10.5%, and the average

rate was 8% higher than last year. Due to the strong bookings in the first quarter, demand in the second

quarter is now up more than 3%, with rate up more than 3.5% resulting in revenue growth of more than 7%.

Overall for the year, our group rate is up more than 2.5% with group revenue up nearly 3.5%, which represents

a significant increase from where we started the year. Construction activity will continue to affect operating

results with meaningfully higher year-over-year spending in Q2, although the impact in Q2 should not be as

severe as what we experienced in Q1.

71

LaSalle - Group Trends

RevPAR up 5.4% (guide 4.5-5.5%) down from 7.7% in 4Q; maintaining 2015 up 4.5-6.5%

Group up 6-7% vs. the up 8% in 4Q; 2015 pacing up 5.4% (noted LSD on last call)

No meaningful impact for stronger USD/international stays

Transient Rev on books for balance of yr up 3.7% and Group 4% (both about 100bps occ, 300bps rates)

Key Quotes

Group rooms occupied decreased by 1%, but the group rate improved by 7.9%, which reflects our operator

strategically being more selective with groups over compressed dates and targeting higher average rates. Our

group transient mix was 20.5% group and 71.5% transient during the first quarter.

International visitation has been a hot topic since the beginning of the year. As a reminder, the percentage of

international business in our portfolio generally ranges from mid to high single-digits. During the first quarter

there was not a material difference in international demand in our portfolio compared to the first quarter of

2014. In fact, during the quarter, international rooms sold in New York City actually increased over 500 rooms

versus the first quarter of 2014.

Well, more of these soft brands that are out there that create competition that provide good pricing structures

for the ownership, the better off owners are with more options. For us, we have a number of brands that we

use. We’re not anti-brand by any means. We’re just capitalists and so to the extent that there are soft brands that

are priced at a level that becomes compelling for us to pay the soft brand and delivers enough to offset the cost

of that then that’s what we have to look into.

72

Group Trends – DiamondRock

DiamondRock RevPAR up 7.9% (guided 6-7%) in 1Q in line with the 8.3% in 4Q;

maintaining 2015 outlook at up 6-7%; seeing good momentum going into 2Q

Group up 6.6% in 1Q (was up 4.7% in 4Q); 2015 Group rev still pacing up mid singles (mentioned 4% on last

call with roomnights down and rates up); 2Q flat, 3Q negative and 4Q positive on Group Revs

Key Quotes

Our group business also performed well during the quarter. Group revenues grew 6.6%, driven by a 3.3%

increase in rate and a 3.2% increase in group room nights. Recent positive trends in short-term group booking

activity continued this quarter, with our portfolio benefiting from an approximately 60% growth in in-the-

quarter for-the-quarter bookings compared to the prior year.

Additionally, the group segment contributed to a 7.9% increase in quarterly banquet and catering revenues,

which contributed to the 119 basis points of food and beverage margin expansion.

73

Group Trends – Ryman

Ryman: up 4% (guidance for flat) vs. the 10.3% in 4Q; maintaining 2015 outlook up 4-6%

75% of business from Group – 2016 Group revenue pacing up high singles (mentioned up 5% on prior call;

Key Quotes

For the rest of this year, our goals for our sales team will be to book about the same amount of room nights as

the excellent year we had last year, but with improving rates. So 2016 is shaping up to be a very good year and

the leads our teams are working for 2016 and beyond reflects more leads than prior year with improving rate.

So as you’re looking at 2016, for instance, I would tell you that we see our corporate room nights increasing

about 100,000 based on what’s on the books right now. And so, that encourages us that the outside-the-room

spend will continue to grow and we’ll see some expansion there because of the type of mix that we’re bringing

in-house.

And as we look towards 2016, our group room revenue on the books is pacing high single-digit increase over

the same time last year for 2015. And some of you will remember that as of December 31, which we reported to

you in late February, this number was up 5%.

Our funnel was strong at the end of the fourth quarter. It’s strong at the end of the first quarter. It’s just

timing of the way these things get booked. We’re expecting to book approximately there or thereabout the same

amount of room nights this year that we booked last year which was a tremendous year for our company.

The thing that’s encouraging is the rate side of it that we started to see improving third quarter last year, is

continuing to move in the direction we all want and that’s really good. Getting a 6% growth in the rate, group

rate that we booked in the first quarter is very, very healthy.

As we’re heading into Q2, it is a tough comp, because we had the best second quarter in the history of the

company this time last year, but again, we’re very bullish on the year and feel like we can come in with a very

solid year of production.

74

Group Trends – Strategic

Strategic: RPAR up 6.9% in 4Q (was up 7% in 3Q) puts full yr 2014 up 7.4%; guiding 2015 up 4-6%

1Q Group roomnights up 6% (was up 15% last Q) with rates up 8.5%; 2015 rooms up 3% and rates up 3% (in

line with comments on last call)

Key Quotes

Average daily rates for the quarter increased over 7% primarily driven by a very strong 8.5% increase in group

rates.

On top of the more than 7% overall rate growth, total occupied room nights for the quarter increased 5%

compared to the first quarter of last year which included 6% increase in occupied group room nights and a 3%

increase in transient room nights.

Group room nights for 2015 are down slightly compared to the same time last year, largely because the St.

Francis, our largest group hotel is down approximately 12% for the year, and concentrated entirely in the last

two quarters of the year. Excluding The Westin St. Francis and the to be sold Hyatt Regency La Jolla, group

room nights on the books are up about 1% in 2015 and the rate is about 4% higher on those rooms. Our early

read on 2016 is also very encouraging, as room nights currently on the books are up nearly 13% compared to

where we were in future bookings at the same time last year. And, although, it’s still a little early to get too

excited about the percentages when talking about 2016, we are clearly headed in the right direction.

75

Group Trends –Pebblebrook

Pebblebrook : 1Q came in up 3.6% (6.6% when adjusted for renovations), which was at the high end of

their 1-3% growth guidance. Guiding 2Q up 4-6% (also hindered by renovations) and maintaining full yr

2015 growth outlook of 6.5-7.5%.

Guide implies a step up in the 2H (high singles in 3Q/4Q), once renovation activity rolls off (9.2% growth in 2014).

Key Quotes

We don’t see a reason at this point why ADR growth isn’t going to continue to accelerate to the upside. We think – as an

industry, we think that industry occupancies are going to continue to go up. There’s more compression nights. There’s

more ADR pricing power. There’s more remixing of business. There is less discounting. And that will continue to drive

ADR growth higher. And it certainly wouldn’t surprise us that even if this year is a modest decline in RevPAR growth

from last year, we did think ADR growth is going to be higher this year than last year. And we won’t be surprised to see

RevPAR growth accelerate up again in the following year, particularly as convention calendars look to be a little better

next year than they do this year.

But when you look at some of the other data they’ve put out, it looks like in the first two months of the year that that

travel inbound non-resident overseas, meaning leaving Canada and Mexico out, it is running around 4% to 5%. And

that seems consistent with what we’ve been seeing in New York and other gateway markets in the U.S. And it’s

consistent with our overall forecast for moderation in the industry demand levels from 4.5% down to 2.5% to 3% for

our range and our forecast for overall industry RevPAR to moderate from last year’s level. So, what’s happening is what

we thought would happen. It doesn’t seem to be any different.

Group revenues increased 10.8% with ADR up 7.9%, which is encouraging and is a continuation of the positive trends

we saw in 2014, but we do not expect this growth rate to sustain itself for the balance of 2015.

If we look at our pace without these three properties, total revenue on the books, group and transient, is up 4.1% for

the remaining three quarters of the year. As a result, we’re not concerned about our overall pace numbers for the

remainder of the year.

76

Group Trends – Sunstone

Sunstone: RevPAR up 7% (guide 5-6.5%) vs. the 6% in 4Q; maintaining 2015 up 5-7%

2015 Group pacing up 4% (in line with the 5% on prior call)

Key Quotes

For full-year 2015, our current group pace for all 30 hotels has decreased to 4% positive. Our pace growth is

now coming 100% from rate, representing a clear opportunity for the remainder of the year…a few hotels

have applied a strategy shift, taking less group and waiting for transient business to take advantage of higher

transient rates.

While room revenue growth was strong, food and beverage and other income were really the stars of the

quarter. During the first quarter, food and beverage revenues increased 6.7%, driven by 10.6% increase in

banquet revenues and a 14.1% increase in audio-visual sales per occupied group room. Food and beverage

revenues continued to strengthen, as groups add more events to their programs, as well as up-scaling of

functions in quality and size.

Occupancy continues to increase as evidenced by our first quarter occupancy exceeding the first quarter prior

peak occupancy by 460 basis points. As a result, several of our larger hotels are now limiting group room

nights and shifting group patterns to lower occupancy weekend nights due to the strength of midweek

transient demand.

Our full year 2015 occupancy is expected to increase 50 basis points to 100 basis points. With a fairly benign

supply forecast for most of our markets, we believe it is more likely than not that occupancy will continue to

grow in 2016. Should this be the case, there is a strong argument to be made that pricing pressure will continue

to intensify through at least next year. These trends bode well for the remainder of 2015 and beyond.

For the first quarter, our 30-hotel comparable portfolio group room night production for all current and future

years declined slightly from the peak year last year by 6.3%. However, Q1 bookings remain the second highest

first quarter in the last eight years. We continue to see strong group trends throughout our portfolio into 2016.

77

OTA’s

78

The OTA’s – Some things are changing

79

12%

54%

44%

15% 16% 15%

5%

33%

27%

12%

14%13%

7%

30%

25%

12%

29%

19%

4%

40%

33%

10%

34%

19%

9%

43%

36%

7%

30%

16%

12%

44%

38%

7%

23%

13%

17%

42%

37%

13%

18%

15%

27%

41%

39%

19%

24%

21%19%

37%

34%35%

21%

29%

21%

36%

34%35%

21%

29%

10%

32%

28%

35%

22%

29%

3%

19%

17%

29%

18%

24%

2%

14%12%

20%17%

19%

0%

10%

20%

30%

40%

50%

60%

Priceline Domestic Priceline International Priceline Gross Expedia Domestic Expedia International Expedia Gross

OTA Bookings Growth

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15Source: Company Filings, Factset, Street

Big Picture: Total Travel Mkt is big and Growing, Online is taking Share

Online bookings account for 50% of US ($300B), 40% in Europe ($300B), 25% in APAC ($300B) and

18% in LATAM ($70B)

Online will grow….a lot. PCLN/EXPE grow with that at 20-30% annually

Priceline: 90% hotel, 75% international

Expedia: 75% hotels, and 40% international

OTA’s TTM Performance

80

Bookings Growth

81

0%

20%

40%

60%

80%

100%

120%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Priceline Bookings Growth

Gross Bookings Growth Domestic Growth Intl Growth

Source: Company Filings

0%

5%

10%

15%

20%

25%

30%

35%

40%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Expedia Bookings Growth

Gross Bookings Growth Domestic Growth Intl GrowthSource: Company Filings

Expedia: Global bookings remained strong at up 30% (Domestic 35% and Intl 25%); domestic

outperformance supported by Travelocity

Priceline: Global bookings continue to moderate on FX headwinds and slowing domestic growth;

bookings were up 12% yr/yr (guided 2-9%) in USD and up 26% yr/yr (guided 14-21%) adjusted

for FX, consisting of domestic up 2% (guided 0-5%) and international up 14% in USD (guide 3-

10%) and up 29% yr/yr adjusted for FX (guided 17-24%). 2Q guided at more of the same

Gross Bookings: Domestic vs. International

82

$0

$2

$4

$6

$8

$10

$12

$14

$16

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Th

ou

san

ds

Priceline Gross Bookings

Priceline Domestic Bookings Priceline Intl BookingsSource: Company Filings

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Expedia Gross Bookings

Expedia Domestic Bookings Expedia Intl BookingsSource: Company Filings

Priceline: Large intl business – more concern on FX risk

Expedia: 3x business domestically as Priceline but posting higher growth rates

Room Nights – Up 30% Yr/Yr

83

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

70

80

90

100

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Priceline Room Nights

Priceline Room Nights Priceline Room Night GrowthSource: Company Filings

M RoomsYr/Yr

Growth

0%

5%

10%

15%

20%

25%

30%

35%

0

10

20

30

40

50

60

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Expedia Room Nights

Expedia Room Nights Expedia Room Night GrowthSource: Company Filings

M RoomsYr/Yr

Growth

Priceline: Room nights up 27% in 3Q in line with the 29% yr/yr in 2Q

Expedia: Room nights were up 32% yr/yr in 1Q (consisting of Domestic up 23%, Intl up 41%) ahead of

the 28% yr/yr in 4Q (consisting of Domestic up 25%, Intl up 30%)

Priceline Key Comments

Domestic business remains soft – Opaque shrinking

Priceline.com’s domestic growth continued to be hampered by the shrinking opaque business. Priceline.com’s

retail business remains healthy, including acceleration in retail hotels, and a new management team there is

poised to rejuvenate and maximize the potential of The Priceline.com brand.

(Q) Hey. You mentioned Priceline brand domestically is facing some headwinds right now especially in the

opaque business which makes sense, but you have you some new management of that brand to try to revitalize

growth. But can you talk more specifically about how the Booking.com brand is doing in the U.S., and how the

initiative to grow that brand domestically is maybe comparing to your expectations at this point?

(A) So, we don’t release specific numbers but generally speaking, if you dig around and you ask the average of

U.S. hotel, they would generally say we’re the fastest growing of the players. We’re growing off of a smaller

base. We’re trying all sorts of things in the U.S. For us, it’s a big growth market because we’re just – we’re

starting, we under index in the U.S. And it seems like it takes time but the market is also sticking with the

American customer base. So, we’re excited. It’s a super high priority on my list.

PCLN doesn’t think Delta will happen in hotels

And U.S. Air in particular, U.S. Airways is a totally different market. It’s probably one of the least friendly to

OTAs. There’s like no money in it. And even if you’re not making money, they don’t want to give you the data. I

actually don’t think that’s good for the consumer because the great thing about OTAs, they brought

accountability to product. If you look at what Uber’s done to cars, or what we’ve done to hotels, the product

keeps getting better and better and better because it’s fully accountable to the consumers that use it. Even if the

consumer will never use the product again, they have a chance to express their opinion. And then the people

who provide the service then react to that opinion. So you know we’re not affected by the latest move from Delta

because we have long-term arrangements. But it would be good to see more openness in the sharing of data on

the airline side.

84

Expedia Key Comments

2.5 yrs into a new journey

And we have been on a journey over the course the last, call it, two-and-a-half years, starting with the

introduction of the Expedia Traveler Preference program, which was, again, us introducing agency hotel really

alongside merchant hotel to give consumers the choice. Where we’ve been? I would say just restructuring the

way that we do business with our hotels from a spot where we used to be high price for everyone because we

are mighty Expedia, and if you want to do business with us, you got to pay to the new model, which is, hey,

we just charge the market standard rate. We’re not a price leader. We’re not undercutting. We’re just the

market standard rate. And come on, on and try it in a really frictionless way. And if you like what you see,

we’ll give you lots of opportunities to spend more with us to get more, similar to the Google way, spend more to

get more. We are, again, we’re two-and-a-half years into that. I would say that in most major markets around

the world that model has been implemented. There’s still some work to do through the back part of this year.

And then I think we’re probably 18 months to 24 months before we’re looking at, call it, clean comps on that

activity.

85

Trip Advisor

Click rates on instant book similar; not disclosing conversion

So, the click-through rate what we’ve always been pleased to report and can reiterate is that when we put a

button up there on either the phone or desktop, tablet devices, that says book on TripAdvisor, consumers are

fine with that. They click at roughly the same rate as if we are putting any other brand. So, our interpretation

of that is perfectly happy to leverage the trust that they have in TripAdvisor to start down that booking

funnel. We don’t disclose the actual conversion rate or we’re not ready to disclose the actual conversion rate of

those leads but you can imagine as it’s been rolled out on the phone in so many places and being out there that

it’s working well for us and the rollout continues as you’ve seen in my remarks into other countries on the

phone. On desktop, we haven’t rolled it out fully but we continue to work through both the downstream

conversion. We continue to work optimizing the funnel. And just to make sure that the user’s experience is as

good as it can be, as good as it should be whether the filament partner is a supplier direct hotel, hotel chain, or

through an OTA.

Still figuring things out with the brands – not so much education as it is negotiation

So, the education curve for the big chains, I think kind of the under – most of them understand what we’ve –

what we’re doing here. I’d say there’s general buy-in and an understanding as to why we’re doing it and how

we can help them. There is an ongoing negotiation in terms of how and under what terms do they want to

participate. So stay tuned is the message. I don’t think more education is necessarily the answer as opposed to

closing more on the negotiation side.

86

Wrapping it up

1. Stable growth vs. acceleration/deceleration

2. 2Q and 2H sound on track

3. Watch the Group set-up for 2H

4. Please raise your prices

5. Please raise your prices

87

Appendix

Disclosures

Buy: The stock’s return is expected to exceed the market due to superior fundamentals and positive catalysts.

Underperform: The stock’s total return is expected to underperform the market due to weak fundamentals and a

lack of catalysts.

Neutral: The stock is expected to be in line with the market due to full valuation and/or a lack of catalysts.

Valuation and Risk: Price targets are established under various valuation methods including P/E, P/S, EV/EBITDA

on financial estimates based on forward earnings. Price targets are not established for every stock. The price

target’s effectiveness may be affected by various outside factors. Risk assessments can be found in the most recent

research on these stocks.

Other Disclosures: I, Vince Ciepiel, certify that the views expressed in the research report(s) accurately reflect our

personal views about the subject security(s). Further, we certify that no part of our compensation was, is, or will be

directly or indirectly related to the specific recommendations or views contained in the research report(s). The

analysts responsible for the preparation of this report have no ownership stake in this company. Cleveland Research

Company provides no investment banking services of any type on this or any company. Proprietary research and

Information contained herein which forms the basis for findings or opinions expressed by Cleveland Research

Company may be used by Cleveland Research for other purposes in the course of compensated consulting and other

services rendered to third parties.

The information transmitted is intended only for the person or entity to which it is addressed. Any review,

retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons

or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and

delete the material from any compute. Member FINRA/SIPC.

88

Questions

89

North America: Avg 7%, 200bps Step Up

90

2.8%

5.6%

7.7% 7.3%

8.6%

6.3%

8.8%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

H Americas Full Serv. RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.4% 6.0%

4.5% 4.0%

7.0%

8.4%

9.7%

7.3%

10.1%

-2%

0%

2%

4%

6%

8%

10%

12%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H Americas Limited Serv. RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.7%

6.7% 7.4%

8.7%

6.8% 6.6%

5.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Americas RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.8% 5.2% 5.2%

4.7%

6.3% 6.0%

8.7%

6.7% 6.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR N. America RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.2%

5.2% 5.8% 6.1%

7.1%

6.3%

9.1%

5.8%

6.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT N. America RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.0% 5.0%

3.6% 3.0%

6.4% 6.7%

8.7%

7.5%

6.6%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG US RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Asia Pac: Yr/Yr growth moderating

91

3.3%

2.5%

3.8% 3.8%

6.4%

5.6%

4.9%

2.9%

6.2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

8.6% 8.7%

4.8%

3.4% 2.9%

10.1%

7.0%

-1%

1%

3%

5%

7%

9%

11%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.4% 0.9%

1.6% 3.5%

11.9%

11.1%

8.7%

4.1%

0.4%

-10%

-5%

0%

5%

10%

15%

20%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Greater China RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(0.4%) (0.7%)

2.1%

4.2%

7.3%

5.1%

4.1%

3.1%

5.8%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H Asia Pac RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

2.2%

(1.5%)

0.7%

2.4%

3.9% 4.6%

0.8%

(2.0%)

2.4%

-4%

-2%

0%

2%

4%

6%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG China RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Europe Mixed – Pretty decent quarter

92

(1.8%)

1.2%

2.2%

3.3% 3.6%

1.6%

3.2% 2.7%

7.0%

-4%

-2%

0%

2%

4%

6%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

4.6%

6.5%

4.4%

6.6% 6.9%

5.5%

3.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(1.3%)

2.5% 1.9%

3.9%

2.5%

1.9%

6.1%

4.0%

5.1%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.2% 6.1%

2.4%

5.0% 5.3%

3.9%

7.8%

2.6%

1.4%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H EAME/SWA RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

(2.1%)

1.9% 1.4%

4.9%

6.1%

4.1%

6.1%

4.2%

5.8%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG Europe RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Africa/Mid E.– Easy Egypt Comps

93

(3.2%)(0.6%)

(3.4%)

15.5%

6.7% 5.4% 6.4%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2013

HLT Mid E./Afr RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

11.2%

5.7%

(11.3%)(10.7%)

0.4% 4.9%

15.0% 14.9%

9.3%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

MAR Mid E./Afr RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

7.3% 7.5%

0.6%

2.0% 2.1%

(0.9%)

4.7%

(0.3%)0.8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

HOT Africa/Mid. E RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

5.6%

6.8%

5.5%

6.4%

3.8% 3.6%

4.4%

3.1%

6.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

IHG AMEA RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

6.2% 6.1%

2.4%

5.0% 5.3%

3.9%

7.8%

2.6%

1.4%

-4%

-2%

0%

2%

4%

6%

8%

10%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

H EAME/SWA RevPAR Growth

Rate Occupancy RevPARSource:

Company Filings

Brand Co’s Pipeline

94

40%

60%

HLT

Domestic International

52%

48%

MAR

Domestic International

13%

87%

HOT

Domestic International

23%

77%

H

Domestic International

40%

60%

WYN

Domestic International

79%

21%

CHH

Domestic International

29%

71%

IHG

Domestic International

MAR RevPAR by Geography

95

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr 3Q14 4Q14 Comments as of 4Q14 Call 1Q15 Comments as of 1Q15 Call

Worldwide 4.6% 4.7% 4.8% 4.3% 6.2% 5.8% 8.1% 6.2% 6.8% 5-7% 5-7% Growth led by N. America 5-7%

North

America4.8% 5.2% 5.2% 4.7% 6.3% 6.0% 8.7% 6.7% 6.9% 5-7% 5-7%

Good Group pace; Transient Leisure and Corporate

strong5-7%

Continue to see solid growth in both Transient and

Group; Limited service leading growth

Total

International4.1% 2.8% 3.4% 3.2% 5.7% 4.8% 5.6% 4.6% 6.7% 4-6% 4-6%

Afr/Mid East lead growth; Conservative in Europe; 1Q

expected to grow 3-5%4-6%

Taking up Europe outlook; maintaining view on other

geographies

Carib &

L. America6.1% 4.4% 7.5% 7.1% 9.9% 10.6% 10.9% 7.7% 5.7% 4-6% 4-6%

Stronger Leisure and Group demand in Carib and

Mexico; Brazil weak and tough compare on World Cup4-6%

Mexico and Carib resorts strong; tough World Cup

compare

Europe (1.8%) 1.2% 2.2% 3.3% 3.6% 1.6% 3.2% 2.7% 7.0% 1-3% 1-3%Strong holiday in Germany/Austria; weak in Russia,

Expect London benefit from Group business4-6%

One of the biggest surprises in the quarter; Germany,

London, Amsterdam strong; expect MSD growth

Africa &

Mid. East11.2% 5.7% (11.3%) (10.7%) 0.4% 4.9% 15.0% 14.9% 9.3% 5-9% 7-9% Strong in Egypt, Africa Protea 7-9%

Improving political environment in Egypt; timing of

Ramadan should drive modest growth in 2Q/outsized

growth in 3Q

Asia Pac 3.3% 2.5% 3.8% 3.8% 6.4% 5.6% 4.9% 2.9% 6.2% 4-6% 4-6%

US tourism to Japan is strong; Strong Shaghai

offsetting weak Hong Kong in 4Q; HK improve in

2015

4-6%Japan, India, Shanghi and Thailand showing good

growth; Hong Kong still soft

Source: Company Filings

Marriott RevPAR Growth Geographical Review

2015 Guidance As of:

Hilton RevPAR by Geography

96

4Q13 4Q14

Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Comments from 4Q14 Call Yr/Yr Comments from 1Q15 Call

Worldwide 4.7% 6.6% 6.7% 8.4% 6.6% 6.6% 5-7% Feel great about fundamentals; U.S. should lead growth 5-7% Overall fundamentals of the cycle remain strong

Americas 4.7% 6.7% 7.4% 8.7% 6.8% 6.6%

Supply growth muted and good job/economic growth in

U.S. drives growth; Strength in Mex offsets weaker

Brazil

MSD

In U.S. expect mid to high single digit growth; expect

Americas outside U.S. up MSD on positive momentum in Mex

offsetting softer Arg & Brazil

Asia Pac 8.6% 8.7% 4.8% 3.4% 2.9% 10.1%

Japan remain strong (tempered by consumption tax) and

China steady; India and Indonesia improvement

continue; Thailand drag

MSD

Maintain MSD outlook. Robust demand in Japan, recovery in

Thailand and good momentumin Shanghai & Beijing. HK and

Singapore remain weak.

Europe 4.6% 6.5% 4.4% 6.6% 6.9% 5.5%Positive mometum in W and S Europe continue; France

remain soft, Russia/Uk/Eastern Europe uncertainMSD

Maintain MSD outlook. Positive Germany and S. Eur. France

and E. Eur remain soft.

Africa &

Mid. East(3.2%) (0.6%) (3.4%) 15.5% 6.7% 5.4%

Recovering nicely, strength in Egypt continue/beginning

of a recovery; Saudi also strong; other areas mixedMSD

Improvements in Egpyt look sustatinable. Russia an overhang

on Arabian Peninsula.

Source: Company Filings

Hilton RevPAR Growth Geographical Review

2015 Guide As of:1Q14 2Q14 3Q14 1Q15

Starwood RevPAR by Geography

1Q14 2Q14 3Q14 4Q14 1Q15

Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Comments from 4Q14 Call Yr/Yr Comments from 1Q15 Call

Worldwide 4.9% 6.3% 5.3% 7.4% 4.4% 5.2% 5-7%Seeing positive signs out there. All are stronger than we thought going

into the 4th quarter. Modest improvement in trendlines.5-7%

North

America6% 7.1% 6.3% 9.1% 5.8% 6.8% Upping our 2015 RevPAR expetations relative to Oct call.

Expect to continue to remain strong with expansion of rate and

occupancy

Latin

America1% 2.9% 4.8% 6.1% 2.8% 4.7% Brazil could restart economic growth. Argentia still struggle.

Strenght in Mexic offsets weaker Brazil/Argentia; expect similar trends

as what was seen in 1Q

Greater

China2% 11.9% 11.1% 8.7% 4.1% 0.4% N. China weak, but Shanghai strong.

Hong Kong and Macau hurting results; RevPAR in mainland China

should improve modestly in 2Q

Rest of

Asia7% 5.6% 2.9% 0.3% 1.2% 5.7%

Geopolicital drags - likely mixed in 2015. Thailand maybe a little better.

Seeing a little better ROA.Australia, Japan, India, and Thailand strong; should continue

Europe 2% 2.5% 1.9% 6.1% 4.0% 5.1%Still unclear, most forecasts call for modest growth. Not factoring in a

robust recovery in Europe. Seeing a little better Europe.

Seeing encouraging trends/weaker Euro spurring travel; expect slightly

softer growth against tougher comps throughout the year

Africa &

Mid. East5% 2.1% (0.9%) 4.7% (0.3%) 0.8% Geopolicital drags - likely mixed in 2015. Seeing a little better.

Softer growth reflects continued challenges in Africa; should remain

soft in 2Q

Source: Company Filings

Starwood Recent RevPAR Growth (Constant $) Geographical Review

2013 2015 Guide

97

Hyatt RevPAR by Geography

98

1Q13 2Q13 3Q13 3Q14 4Q14 1Q15

Rooms Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr Yr/Yr

Owned & Leased 20,542 4.4% 7.1% 5.8% 5.9% 6.3% 4.0% 7.3% 3.4% 6.5%

U.S. 19,883

Intl 3,969

Select Service U.S. 659 6.8% 7.6% 4.4% 3.9% 1.1% 5.2% 9.5%

Managed & Franchised 151,105 3.2% 4.6% 5.6% 5.9% 7.7% 6.1% 8.0% 5.1% 7.4%

Full 71,693 2.8% 5.6% 7.7% 7.3% 8.6% 6.3% 8.8% 5.8% 8.3%

Select 36,568 6.4% 6.0% 4.5% 4.0% 7.0% 8.4% 9.7% 7.3% 10.1%

Asia Pac 24,942 (0.4%) (0.7%) 2.1% 4.2% 7.3% 5.1% 4.1% 3.1% 5.8%

Eur/Afr/Mid E.

SW Asia17,758 6.2% 6.1% 2.4% 5.0% 5.3% 3.9% 7.8% 2.6% 1.4%

Source: Company Filings

2Q14

3.9%6.3%Full Service 3.9% 7.1% 7.0%

Dec-14

Hyatt RevPAR Growth Geographical Review

4Q13 1Q14

Americas

6.9% 6.1%

Lux/Upscale Focused

Brand Co’s by Geography

99

Hilton: Fastest Growing, Largest N. Am

Marriott: Big N. Am, Good Growth Dom&Intl

Starwood: Upper Tier, Good Growth Dom&Intl

Hyatt: Smaller, N.Am focused, Good Dom Growth

Midscale/Econ Focused

Intercontinental: Mid Tier, Lower Dom, Higher Intl

Wyndham: Low Tier, Dom Flat, Highest Intl Growth

Choice: Low Tier, Lower Growth Dom&Intl

0

100

200

300

400

500

600

700

800

HLT MAR HOT H IHG WYN CHH

Tho

usa

nd

s

Room Mix by Chain Scale

Extended Stay Timeshare/Other Economy Midscale Upscale Upper Upscale Luxury

Source: Company Filings

0

100

200

300

400

500

600

700

800

HLT MAR HOT H IHG WYN CHH

Tho

usa

nd

s

Room Mix by Geography

N. America L. America Asia Pac Eur/Mid E./Afr

Source: Company Filings

Growth Domestic vs. International

3.8%4.5%

5.1%

2.1%

4.9%

14.5%

1.3%

0%

5%

10%

15%

HLT MAR HOT H IHG WYN CHH

International Room Growth CAGR: 2007 to 2013

Source: Company Filings

100

5.5%

3.4%3.0%

5.4%

1.7%

0.2%

2.1%

0%

1%

2%

3%

4%

5%

6%

HLT MAR HOT H IHG WYN CHH

N.Am Room Growth CAGR: 2007 to 2013

Source: Company Filings

5.6%

3.6%4.0%

3.6%

2.7%

3.3%

1.9%

0%

1%

2%

3%

4%

5%

6%

HLT MAR HOT H IHG WYN CHH

Room Growth CAGR: 2007 to 2013

Source: Company Filings

Brand Co’s Room Additions by Geography

101

0

50

100

150

200

HLT MAR HOT H IHG WYN CHH

Tho

usa

nd

s

Brand Co's Room Additions since 2007: Domestic. vs. International

Domestic InternationalSource: Company Filings

Hampton Inn

Garden Inn

Doubletree

Hilton in

Asia/MEA

Marriott

Courtyard

Courtyard

Fairfield

SpringhillResidence Aloft, W,

Westin,

Four Points

Sheraton, Westin

Four Points

Luxury Collection

Crowne Plaza

Inn Express

Candlewood

Staybridge

Inn Express

Super 8

Ramada

Days Inn

Hyatt

Place

Suites

Grand

Regency Quality Inn

Ascend

RodewayComfort

Hilton and Marriott – Upscale/Upper Midscale

Domestic Room Additions International Room Additions

Wyndham/IHG – Midscale/Economy

Starwood – Lux/Upper Upscale