Still a Seller’s Market: How to Find Relief STR tracks the most important hotel industry occupancy data, along with supply/demand growth trends and new hotel development. These factors combined significantly impact your capacity to find availability and attractive rates for your meeting. Additionally, your ability to understand and utilize the fundamentals of supply and demand and the future pipeline of hotel developments, directly improves your leverage in negotiations with hotels and venues in every destination and your ability to manage your expectations and those of your internal stakeholder. Join us for a webinar where STR will share up to date analysis on current trends and market conditions, and we will explore how the right local partners can provide even a more complete destination specific picture before you source your meeting. Join us to explore: • Latest STR data and trends in the U.S. hotel marketplace • How CVB destination sales professionals can help your assess current destination specific conditions • And how to use this knowledge to manage expectations and improve negotiations Moderator: Terri Roberts, Training and Communications Support for DMAI’s empowerMINT.com Panelist: Lindsay Culbreath, CMHS, CHIA, Senior Director of Business Development & Marketing, STR

2. Our Panelist
Lindsay Culbreath, CMHS, CHIA
Senior Director of Business Development & Marketing
STR

3. Latest STR data,
trends and forecast
Accessing destination
specific market
conditions with your
CVB
Managing
expectations and
improving
negotiations
Our webinar roadmap

4. Understanding Market Conditions of the
U.S. Hotel Industry
Lindsay Culbreath
Senior Director, Business Development & Marketing
Lculbreath@str.com
Lindsay_STR
© 2016 STR, Inc. All Rights Reserved.
Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR
(collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR.
No strategic advice or marketing recommendation is intended or implied.

5. © 2016 STR. All Rights Reserved.
In Review
Total U.S. Performance
Group vs. Transient
Pipeline & Forecasts

6. OCC 65.6% ▴1.7% RECORD
Metric No. Status Remarks
ROOM REV $142B ▴7.4% RECORD
OCC ROOMS 1.2B ▴2.9% RECORD
AVAIL ROOMS 1.8B ▴1.1% RECORD
ADR $120 ▴4.4% RECORD
REVPAR $79 ▴6.3% RECORD
U.S. Hotels YE 2015
© 2016 STR. All Rights Reserved.

7. © 2016 STR. All Rights Reserved.
Supply Growth Now Back Over 1%. Demand Growth Slows.
-0.8
-4.7
-7.1
7.7
2.6
-8
-4
0
4
8
1990 1993 1996 1999 2002 2005 2008 2011 2014
Supply % Change
Demand % Change
1.2
2.9
4.0
Total U.S. – Supply & Demand % Change
12 MMA, January 1990 to January 2016

8. © 2016 STR. All Rights Reserved.
2 Million More Rooms Available Per Month
1.1 1.1
1.4
1.5 1.4
1.6
1.7
1.6
1.8
1.9
2.0
2.2
January February March April May June July August September October November December
U.S. Supply Change (millions of room nights)
2015 by Month

9. © 2016 STR. All Rights Reserved.
ADR Growth Steady. Occ Growth Decelerating Rapidly.
-3.4
-6.7
-9.7
1.4
6.8
7.5
4.3
-10
-5
0
5
1990 1993 1996 1999 2002 2005 2008 2011 2014
Occ % Change
ADR % Change
Total U.S. – ADR & Occ % Change
12 MMA, January 1990 to January 2016

10. RevPAR Growth: It’s Going To Be OK (but Not Great)
-25
-20
-15
-10
-5
0
5
10
15
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
RevPAR % Change
January 1990 to January 2016
56 Months 71 Months80 Months 31 Mo

11. Scales RevPAR Composition: ADR Driven
0.4 0.6 0.6
2.1
1.6 1.6
3.7
3.9
4.8
4.3
4.2 3.9
Luxury Upper Upscale Upscale Upper Midscale Midscale Economy
ADR % Change
Occupancy % Change
4.5
5.4
6.4
5.8
5.5
RevPAR % Change by Contribution of Occ / ADR % Change, by Scale
12 MMA January 2016
4.1

12. © 2016 STR. All Rights Reserved.
+9.4%
Anaheim, CA
Top 5 / Bottom 2 – RevPAR Growth Markets
Full Year 2015
Phoenix, AZ
Dallas, TX
Houston, TX
Tampa, FL
Nashville, TN
New York, NY
+12.8%
+10.0%
-3.3%
+11.1%
+13.8%
-1.7%
4 Markets with Double Digit RevPAR Growth

13. Transient ADR Growth Subsides Despite High Occupancies
0%
1%
2%
3%
4%
5%
6%
2012 2013 2014 2015 2016
Demand % Change ADR % Change
5.9%
2.5%
Transient Demand and ADR % Change
12 MMA, January 2012 – January 2016
NOTE: Data is for upper tier hotels only (Luxury & Upper Upscale classes)
5.4%
3.7%

14. Group Demand Growth Slows Rapidly
-2%
-1%
1%
2%
3%
4%
5%
6%
2012 2013 2014 2015 2016
Demand % Change
ADR % Change
3.8%
1.9%
Group Demand and ADR % Change
12 MMA, January 2012 – January 2016
NOTE: Data is for upper tier hotels only (Luxury & Upper Upscale classes)

15. © 2016 STR. All Rights Reserved.
13.5
9.5 9.2 8.5 8.1 8.1 7.4
6.5 6.4 6.2 5.9
5.2 4.7 4.4 4.3 3.7 3.5 2.9
1.3 1.3 0.9
-0.1 -0.3
-5.5 -5.5
Group RevPAR % Change, Top 25 Markets
Full Year 2015
Group RevPAR Declines in 4 Markets

16. © 2016 STR. All Rights Reserved.
Meeting Requirements
Considerations Rated “Very Important” in Site Selection
Meeting planners are more demanding than ever in site selection
50% 60% 70% 80% 90% 100%
Clean/attractive city
Attractive conference hotels
# of hotel rooms available
Convenient airline service
Easy for delegates to get to
Food and lodging costs
Travel costs to destination
Good value for the money
2015
2013
COSTS
CONVENIENCE
CLEAN/
ATTRACTIVE

17. © 2016 STR. All Rights Reserved.
What Impact do Events Have on your Destination?
Source: STR Compression Analysis

18. © 2016 STR. All Rights Reserved.
Phase February 2016 February 2015 Difference % Change
In Construction 150,406 128,874 21,532 16.7
Final Planning 185,607 152,216 29,391 18.8
Planning 161,396 150,428 10,968 7.3
Under Contract
Pipeline
497,409 435,518 61,891 14.2
U.S. Pipeline, by Phase (Rooms)
February 2016 vs 2015
Construction Today Will Impact 2016 / 2017

19. © 2016 STR. All Rights Reserved.
7.7
12.9
50.9 50.3
5.7
1.5
20.5
Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Unaffiliated
U.S. Pipeline – Rooms Under Construction, ‘000s Rooms, by Scale
January 2016
68%
Limited Service Construction Has Been Strong For 2 Years

20. © 2016 STR. All Rights Reserved.
Construction In Top 26 Markets: 20 With 2%+ Of Supply
U.S. Pipeline – Top 26 Markets, U/C Rooms as % of Existing Supply
January 2016
Market Rooms U/C % Of Existing
New York, NY 14,544 12.30%
Miami/Hialeah, FL 3,896 7.50%
Houston, TX 5,553 6.90%
Seattle, WA 2,872 6.70%
Denver, CO 2,756 6.30%
Minneapolis/St Paul, MN-WI 2,487 6.30%
Nashville, TN 2,163 5.60%
Philadelphia, PA-NJ 2,443 5.30%
Dallas, TX 4,278 5.30%
Los Angeles/Long Beach, CA 4,630 4.70%
Anaheim/Santa Ana, CA 2,478 4.40%
Boston, MA 1,980 3.80%
San Diego, CA 1,951 3.20%
Washington, DC-MD-VA 3,339 3.10%
Chicago, IL 3,302 3.00%
Detroit, MI 1,264 3.00%
Tampa/St Petersburg, FL 1,343 3.00%
Phoenix, AZ 1,536 2.50%
Las Vegas, NV 3,905 2.30%
Orlando, FL 2,454 2.00%

21. © 2016 STR. All Rights Reserved.
Total U.S. – Key Performance Indicator Outlook (% Change vs. Prior Year)
2016 - 2017
Outlook
2016
Forecast
2017
Forecast
Supply 1.7% 1.9%
Demand 2.3% 2.1%
Occupancy 0.6% 0.2%
ADR 4.4% 4.3%
RevPAR 5.0% 4.5%
Robust RevPAR Growth Still Ahead

22. © 2016 STR. All Rights Reserved.
Take-Aways
Record levels of supply & more on the way
Growth rates are slowing
Cautiously optimistic
Stay informed!

23. © 2016 STR. All Rights Reserved.
Establish Your Research Foundation
1
• Contact STR’s Business Development Team:
industrypartners@str.com or +1 (615) 824 8664 ext 3504
2
• Determine questions you’re trying to answer
• Rate negotiations
• New supply in the market
3
• We’ll help match STR’s products to meet your needs
• Trends, Market Pipeline, Forecasts, etc.

24. Thank You!
© 2016 STR, Inc. All Rights Reserved.
Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR
(collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR.
No strategic advice or marketing recommendation is intended or implied.
Lindsay Culbreath
Senior Director, Business Development & Marketing
Lculbreath@str.com
Lindsay_STR
www.linkedin.com/in/LindsayCulbreath

25. 7 Types of Consultative Advice
to Seek From Your CVB
1) Perspective
2) Expertise and Specialized Knowledge
3) Best Practices and Proven Methodology
4) Strategic Mindset
5) Analytical Horsepower and Data Mining
6) Advocacy
7) Cost Savings and Extension of Staff

26. ANALYTICAL HORSEPOWER &
DATA MINING
“In today’s market environment meeting planners must understand the economi
of supply and demand in any market where they are trying to book a meeting. I
YE 2015 city wide occupancies in the top 25 markets in the U.S. ranged from a lo
of 57% to a high of over 85%. The local destination marketing organization can
the best source for planner who wants to understand the general seasonality
and/or day of the week demand trends in any market. Knowing when there are
large patterns of availability – or not - for hotel rooms, can help the planner bet
manage and negotiate their terms and costs associated with a meeting.”
Robert A. Gilbert, CHME, CHBA
President & CEO
Hospitality Sales & Marketing Association International

27. Most Desirable
Arrival and
Departure
Patterns
Major
Local
Events
Cancellations and
Special Offers
Seasonality: Peak,
Shoulder and Need
Transient
Demand
City-
wides

28. www.empowerMINT.com
• Review at-a-glance destination
profiles
• Get destination news
• Find your Destination Expert
• Search and compare
• Submit a Quick Request or RFP
to multiple destinations

29. Keep in Touch
Email
contactus@empowermint.com
Podcast
Meeting Planning Madness
blog.empowermint.com/podcast
Blog
blog.empowermint.com
Web
www.empowermint.com
LinkedIn
DMAI’s Network for CVBs
and Meeting Professionals