17. 17
-2%
-1%
0%
1%
2%
3%
4%
Jan 12 Jul 12 Jan 13 Jul 13
Demand
ADR
*Group Demand and ADR % Change, 12 MMA, 1/2012 – 1/2014
Is “No Group Demand Growth” The New Normal?
18. 18
Transient Occupancy Share Increases
43%
57%
2005
Group
Transient
36%
64%
2013
Group
Transient
*Transient and Group Occupancy as Share of Total OCC, 2005 and 2013
19. 19
Transient ADR Premium Not As Strong As In Last Upturn
$10
$15
$20
$25
1 year 2 years 3 years
Starting 2005
Starting 2011
*Transient ADR Premium over Group ADR, 12 MMA, 1/05-12/07 & 1/11-1/14
21. 21
January 2014 RevPAR: Best / Worst Performing Markets
Market
RevPAR %
Change Market
RevPAR %
Change
Florida Keys 23.7 Omaha, NE -5.3
San Francisco/San Mateo, CA 19.3 Central New Jersey -5.4
Philadelphia, PA-NJ 17.9 North Dakota -5.8
Denver, CO 16.5 Mississippi -6.0
Myrtle Beach, SC 16 North Carolina East -8.1
Wyoming 15.9 Pennsylvania Area -8.6
West Palm Beach
Boca Raton, FL 15.8 California North Central -9
California Central Coast 15.7 Washington, DC-MD-VA -23
Los Angeles-Long Beach, CA 15.2 Long Island -29.4
San Jose-Santa Cruz, CA 15.1 New Jersey Shore -32.6
22. 22
January 2014 ADR: Best / Worst Performing Markets
Market
ADR %
Change Market
ADR %
Change
Florida Keys 13.0 Chicago, IL -1.7
San Francisco/San Mateo, CA 11.9 Chattanooga, TN-GA -1.8
San Jose-Santa Cruz, CA 11.3 Kansas City, MO-KS -1.8
West Palm Beach-Boca Raton, FL 10.7 Jackson, MS -1.9
Los Angeles-Long Beach, CA 9.7 North Dakota -2.3
Oakland, CA 9.3 Baltimore, MD -3.3
Oahu Island, HI 8.6 New Jersey Shore -4.7
Maui Island, HI 8.6 Long Island -5.6
Bergen-Passaic, NJ 7.7 California North Central -5.9
Greenville-Spartanburg, SC 7.5 Washington, DC-MD-VA -17.6
27. 27
$50
$60
$70
$80
$90
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Indiana: Actual ADR ($)
Twelve Month Moving January 2001 thru January 2014
ADR Has Surpassed 2008 Peaks
$87
Sept. 08
$82.00
28. 28
1.6
-1.5
43.9
0.1
2.6
Indiana North Indiana South Indianapolis
Occupancy ADR RevPAR
1.9
1.9
-1.4
Indiana Markets - Occ / ADR / RevPAR % Change
Twelve Month Moving Average January 2014
Growth in Most Indiana Markets
29. 29
55.2 54.9
61.8
$81.85 $81.00
$90.32
$45.19 $44.46
$55.83
Indiana North Indiana South Indianapolis
Occupancy ADR RevPAR
Indiana Markets - Occ / ADR / RevPAR
Twelve Month Moving Average January 2014
Strongest Performance in Indianapolis
30. 30
63.8
61.8
55.2
55.0
53.8
49.7
Gary MSA
Indianapolis, IN Market
Indiana North Market
Evansville-Henderson MSA
Indiana South Market
Fort Wayne MSA
-3.5%
Indiana Markets & Sub-Markets: Occupancy & % Change
Twelve Month Moving Average January 2014
4%
1.6%
-0.2%
-1.9%
0.7%
Gary Highest OCC % but Indianapolis Strongest OCC Growth
31. 31
$90.32
$81.85
$80.21
$78.59
$77.84
$72.67
Indianapolis, IN Market
Indiana North Market
Gary MSA
Evansville-Henderson MSA
Indiana South Market
Fort Wayne MSA
Indiana Markets & Sub-Markets: Actual ADR & % Change
Twelve Month Moving Average Ending January 2014
-1.4%
2.3%
1.5%
4%
4.4%
1.9%
Strongest Rate Growth in Indiana South & Evansville
34. 34
Indiana: Monthly Transient Room Demand (sold)
January 2007 Through December 2013
400
500
600
700
800
900
1,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 2011 2012 2013
Dec. 2013.
672,954
rooms sold
Thousands
Transient Rooms Sold in August 2013 Out Pacing Prior Years
35. 35
Indiana: Monthly Transient ADR
January 2007 Through December 2013
$70
$80
$90
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 2011 2012 2013
Dec.2012
$77.60
Transient ADR Surpasses 2007 Peaks (Mostly)
36. 36
Indiana: Monthly Group Room Demand (sold)
January 2007 Through December 2013
200
300
400
500
600
700
800
900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 2011 2012 2013
Dec. 2012
285,396
Thousands
April 2013 Group Rooms Sold Out Paced Prior Years
37. 37
Oklahoma: Monthly Group ADR
January 2007 Through December 2013
$65
$75
$85
$95
$105
$115
$125
$135
$145
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 2011 2012 2013
Dec. 2013 $82.76
$136.80
Super Bowl XLVI Had Large Effect on Group ADRs
55. 55
Indianapolis Pipeline
Project Name Room Count Open Date
Holiday Inn
122 February 2015
Suburban Extended Stay 119
December 2014
Courtyard by Marriott 92
May 2014
Hampton Inn 100
March 2014
Sleep Inn 91
May 2014
57. 57
US Pipeline: Construction Accelerates
Phase 2014 2013 % Change
In Construction 96 72 34%
Final Planning 137 96 42%
Planning 123 137 -10%
Active Pipeline 357 307 16%
*Total US Pipeline, by Phase, ‘000s Rooms, January 2014 and 2013
58. 58
Under Construction Rooms Mostly In Middle Segments
4.6
8.0
35.7
28.9
5.1
1.2
13.3
Luxury Upper
Upscale
Upscale Upper
Midscale
Midscale Economy Unaffiliated
*US Pipeline, Rooms Under Construction , ‘000s Rooms, by Scale, January 2014
67%
59. 59
Construction In Top 26 Markets: 12 With 2%+ Of Supply
*US Pipeline, Top 26 Markets, U/C Rooms as % of Existing Supply, January 2014
Market Rooms UC % Of Existing
Las Vegas, NV 169,480 0.0%
Oahu Island, HI 29,337 0.0%
Norfolk-Virginia Beach, VA 38,537 168 0.4%
Minneapolis-St Paul, MN-WI 38,450 190 0.5%
San Francisco/San Mateo, CA 51,167 312 0.6%
Phoenix, AZ 62,061 438 0.7%
Detroit, MI 41,980 384 0.9%
Atlanta, GA 93,713 899 1.0%
Tampa-St Petersburg, FL 44,297 471 1.1%
San Diego, CA 59,162 734 1.2%
St Louis, MO-IL 38,007 538 1.4%
Chicago, IL 109,180 1,671 1.5%
Dallas, TX 78,384 1,299 1.7%
Philadelphia, PA-NJ 45,524 778 1.7%
Orlando, FL 118,462 2,358 2.0%
Boston, MA 51,086 1,043 2.0%
New Orleans, LA 37,470 866 2.3%
Anaheim-Santa Ana, CA 54,186 1,287 2.4%
Los Angeles-Long Beach, CA 97,702 2,323 2.4%
Washington, DC-MD-VA 105,663 2,965 2.8%
Nashville, TN 37,620 1,127 3.0%
Houston, TX 75,109 2,361 3.1%
Miami-Hialeah, FL 48,817 1,706 3.5%
Seattle, WA 40,734 1,914 4.7%
Denver, CO 41,496 2,193 5.3%
New York, NY 109,852 12,201 11.1%