1. Trends in the International
Hospitality Industry
Russell Kett
Managing Director – HVS London
‐ 1 ‐

2. AGENDA
Economic Highlights
Tourism Trends
Performance Data
Investment Trends
Hotel Values
‐ 2 ‐

3. ECONOMIC HIGHLIGHTS
‐ 3 ‐

4. Real GDP Growth Forecast
by Region
Middle East and Northern Africa
Latin America and Caribbean
Europe and Central Asia
East Asia and Pacific
US
Japan
Euro Area
2011F
OECD Countries
2010
‐8% ‐6% ‐4% ‐2% 0% 2% 4% 6% 8% 10%
2009
Source: World Bank ‐ 4 ‐

5. Contribution of Travel & Tourism
‐ World ‐
T & T contributes 10‐year
2010 Trend
to... (%) trend
(%)
Gross Domestic
9.1 9.6
Product
Employment 8.8 9.7
Visitor Exports (5.8) 4.7
Investment 4.5 4.6
Source: WTTC ‐ 5 ‐

6. TOURISM TRENDS
‐ 6 ‐

7. International Arrivals (millions)
600
500
400
Europe
300 Asia and the Pacific
Americas
Africa
200
Middle East
100
0
1990 1995 2000 2005 2008 2009 2010
Source: UNWTO ‐ 7 ‐

8. Change in International Arrivals 09/10 (%)
16%
14%
12%
10%
8%
6%
4%
2%
0%
Middle East Asia and the Africa Americas Europe
Pacific
Source: UNWTO ‐ 8 ‐

9. Top Ten Tourism Destinations (millions)
90
80
France
70 US
China
60
Spain
50 Italy
UK
40
Turkey
30 Germany
Malaysia
20
Mexico
10
0
2006 2007 2008 2009 2010
Source: UNWTO ‐ 9 ‐

10. International Arrivals Breakdown (2010)
Europe Asia and the Pacific
Oceania South Asia
6% 5%
Northern
Europe
12%
Southern/
Medit Europe
36%
Western South‐East North‐East
Europe Asia Asia
Central/ 32% 34% 55%
Eastern
Europe
20%
Americas Africa
South
Central America
America
16%
5%
North Africa
38%
Caribbean
13% Subsaharan
North Africa
America 62%
66%
Source: WTO ‐ 10 ‐

11. International Arrivals by Region of Origin
(millions)
600
500
400
Europe
Asia and the Pacific
300
Americas
Africa
200 Middle East
100
0
1990 1995 2000 2005 2008 2009 2010
Source: WTO ‐ 11 ‐

12. International Tourism Receipts
(US$ billion)
500
450
400
350
300 Europe
250 Asia and the Pacific
Americas
200
Africa
150
Middle East
100
50
0
2006 2007 2008 2009 2010
Source: UNWTO ‐ 12 ‐

13. International Tourism Expenditure
(US$ billion)
100
90
80
Germany
70 United States
China
60
United Kingdom
50 France
40 Canada
Japan
30
Italy
20 Russian Federation
Australia
10
0
2006 2007 2008 2009 2010
Source: UNWTO ‐ 13 ‐

14. Global Supply & Demand
Source: STR Global ‐ 14 ‐

15. PERFORMANCE DATA
‐ 15 ‐

16. Occupancy ADR ($)
75% 170
160
70% 150
140
65% Europe
130
Asia Pacific
120
60% Middle East/Africa
110
Americas
55% 100
90
50% 80
2007 2008 2009 2010 2007 2008 2009 2010
RevPAR Variance
Americas
Middle East/Africa
09/10
08/09
Asia Pacific
07/08
Europe
‐30% ‐20% ‐10% 0% 10% 20% 30%
Source: STR Global ‐ 16 ‐

17. RevPAR Growth 09/10
12.0%
10.0%
8.0%
Americas
Δ Occupancy
Asia Pacific
6.0%
4.0%
Middle East/Africa
2.0%
Europe
0.0%
‐2.0%
‐4% ‐2% 0% 2% 4% 6% 8% 10% 12% 14%
Δ ADR
‐ 17 ‐

18. Year‐to‐July Occupancy
66%
64%
62%
60%
58%
Jul‐10
56% Jul‐11
54%
52%
50%
Europe Asia Pacific Middle East/ Americas
Africa
Source: STR Global ‐ 18 ‐

19. Year‐to‐July ADR ($)
140
120
100
80
60 Jul‐10
Jul‐11
40
20
0
Europe Asia Pacific Middle East/ Americas
Africa
Source: STR Global ‐ 19 ‐

20. Year‐to‐July RevPAR Variance
Americas
Middle East/Africa
10/11
Asia Pacific
Europe
‐15% ‐10% ‐5% 0% 5% 10%
Source: STR Global ‐ 20 ‐

21. INVESTMENT TRENDS
‐ 21 ‐

22. Hotel Investments 2010
Source: Jones Lang LaSalle Hotels ‐ 22 ‐

23. Global Hotel Transactions Volumes
1998 – 2011F
Source: Jones Lang LaSalle Hotels ‐ 23 ‐

24. Investors’ Profiles (2010)
Source: Jones Lang LaSalle Hotels ‐ 24 ‐

25. Pipeline – July 2011
(Number of Rooms)
39% of Asia/
Middle East/Africa Pacific
125,268 growth is in
China
London has Asia/Pacific 306,537
the greatest Europe 130,260
number of
rooms under
construction
in Europe
Central/South Caribbean/Mexico
America 27,457 18,709
Source: STR Global ‐ 25 ‐

26. HOTEL VALUES
‐ 26 ‐

27. Hotel Values per Room (US$)
Top 15 Markets – 2010
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Source: HVS ‐ 27 ‐

28. Value per Room – Europe
400,000
Average Value per Room (US$)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Source: HVS ‐ 28 ‐

29. Value per Room – Asia
600,000
Hotel Values per Room (US$)
500,000
400,000
300,000
200,000
100,000
‐
Source: HVS ‐ 29 ‐

30. Value per Room – USA
160,000
Average Value per Room (US$)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Source: HVS ‐ 30 ‐

31. Thank you...
Russell Kett
HVS – London Office
rkett@hvs.com
@russellkett
September 2011 ‐ 31 ‐
www.hvs.com