Hotel Industry

Slide 2: Topics • Industry Performance • Key Growth Areas • Pricing Strategy • Outlook for 2009

Slide 3: 2007 A strong year for global hotel industry • Global demand drivers are robust B est global economy in 40 years Inflation is in check Unemployment is at multi-decade lows Corporate profits moderating but still growing • Supply growth is increasing, but remains modest • Occupancy stable at levels enabling continued rate gains

Slide 4: Industry Performance : Summary • S ound global fundamentals are driving demand • S upply has started to grow, but remains at modest levels • S upply and Demand forecasted to intersect in late 2008 • Demand growth in most markets is unprecedented • High occupancies supporting continued rate growth • Rate growth is beginning to slow down in many markets • 2008 looks positive for the industry, but growth will continue to decline

Slide 5: Key Growth Areas China India  A ll major brands  A ll major brands represented represented  88,000 rooms added by  45,000 rooms added by 2009 2009 North America  Lodging S upply Growth: 1.1% to 3.5% from 2006 to 2009 United Kingdom Middle East

Slide 6: Growth by Segment Balanced Growth Globally L uxury/ Upscale to M idscale to B udget Number of Hotels Indexes to limited service Number of Rooms Indexes to Upscale (larger room inventory) Urban growth S uburban growth outpaces CB D development

Slide 7: Current Pricing Strategies Corporate Transient Demand Pricing S trategies  Preference for Corporate Transient  Rate Yield  Drives Less Flexibility  Internet Drives Transparent Pricing  Connectivity: L ess A llocations  Real time availability and pricing

Slide 8: Outlook for 2009 • S upply B egins to M eet Demand • Rate growth begins to decline • Occupancy growth declines • Pressure on profit margins • Pressure for improved hotel performance • S ome hotels preparing to adjusting overheads

Slide 9: A Ravi V ishnu Presentation