This document discusses the impact of mega-events like the Olympics and World Expos on hotel performance. It analyzes data on occupancy, average daily rate, and revenue per available room for past host cities. Mega-events typically lead to increased room rates during the event period but lower occupancy after, with mixed effects on overall revenue. The document also examines current hotel industry trends in the Middle East and Africa region, including rising supply and opportunities for expansion into new African markets with little existing branded accommodation.

2. Impact of mega-events on hotel performance
Elizabeth Winkle, Managing Director
STR Global

3. Dubai Currently Ranks Amongst Highest ADR Cities
ADR and %Chg in USD, YE 2013
-1.3% -0.5%
+4.8%
-12.5%
+3.4%
-4.3%
-3.2%
-1.7%
-1.1%
+6.5%
+3.0%
+4.0%
0
50
100
150
200
250
300
350
Beijing Shanghai Los Angeles Tokyo Milan Sydney Greater
London
Hong Kong Singapore Dubai New York Paris

4. 0
2
4
6
8
10
12
14
16
18
20
2006 2007 2008 2009 2010 2011 2012 2013 2014
Supply % Chg Demand % Chg
Dubai Peak Supply Growth
12 MMA YE 2006 – Jun 2015, % change

5. Dubai Occ/ADR % Change
12 month moving average YE 2005 to February 2014, in USD
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Occ % Chg ADR % Chg

6. 100
110
120
130
140
150
160
170
180
190
200
-7 years -6 years -5 years -4 years -3 years -2 years -1 year Expo Year
Shanghai Milan Dubai Forecast Dubai Scenario
Build up to Expo
Index of supply growth

7. Occupancy peaks at Expo start, ADR peaks at closing
YOY Occ, ADR % Jan’09 -Mar ’14 (Shanghai excluding Econ Class)
¥500
¥550
¥600
¥650
¥700
¥750
¥800
¥850
¥900
¥950
¥1,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
JanYR-1
MarYR-1
MayYR-1
JulYR-1
SepYR-1
NovYR-1
Jan
Mar
May
Jul
Sep
Nov
JanYR+1
MarYR+1
MayYR+1
JulYR+1
SepYR+1
NovYR+1
JanYR+2
MarYR+2
MayYR+2
JulYR+2
SeptYR+2
NovYR+2
JanYR+3
MarYR+3
MayYR+3
JulYR+3
SeptYR+3
NovYR+3
JanYR+4
MarYR+4
Occ ADR

8. Often More Displacement than Demand
Total Demand and % Changes, YE of each Olympic city
+0.8%
-1.3%
+9.6%
-5.9% +2.6%
0
5
10
15
20
25
30
35
40
Atlanta Sydney Athens Beijing Greater London
Millions

9. Occupancy Below 90%
Occupancy by month during Olympic Year
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Atlanta '96 Sydney '00 Athens '04 Beijing '08 London '12

10. Concentrated Rate Growth During Olympics
ADR % Chg, in local currency, YOY during Olympic year
-25%
25%
75%
125%
175%
225%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Atlanta '96 Sydney '00 Athens '04 Beijing '08 London'12

11. ADR Gains, Occupancy Declines
Occ and ADR % Chg, local currency
-20 -10 0 10 20 30 40
Atlanta '96
Sydney '00
Athens '04
Beijing '08
London '12
OCC
ADR

12. Mixed RevPAR Results, Athens benefitted from games timing and limited supply
YE of each Olympic each year, RevPAR and % Chg in USD
+8.1%
-5.4%
+51.5%
+6.0%
+1.4%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Atlanta Sydney Athens Beijing London

13. 0.5%
5.4%
December 2013
December 2013
Actual Performance
Actual Performance
Olympic Legacy
London becomes the first city to achieve post-Olympic RevPAR growth in YR +1
LONDON
REGIONAL UK

14. Rising Tides
Q1 2014 RevPAR % change

15. Global picture Supply & Demand
0
1
2
3
4
5
6
7
8
9
10
North America Central- South America Europe Middle East Africa Asia Australia & Oceania
Supply Demand
Supply & Demand % Change, March 2014 YTD

16. Spotlight Middle East & Africa
Market performance – Occ %, ADR $ and RevPAR $, March 2014 YTD
Northern Africa
Occ 44.4% -8.3%
ADR $ 80 -4.0%
RevPAR $ 36 -11.9%
Southern Africa
Occ 61.4% -0.3%
ADR $ 133 -2.5%
RevPAR $ 82 -2.7%
Middle East
Occ 75.1% +3.3%
ADR $ 220 +2.2%
RevPAR $ 165 +5.6%

17. MEA Classes Occ and ADR
$0
$50
$100
$150
$200
$250
$300
$350
$400
0%
10%
20%
30%
40%
50%
60%
70%
80%
Luxury Upper Upscale Upscale Upper Midscale Midscale & Economy
Occ 13 Occ 14 ADR 13 ADR 14+1.2
+2.5-0.4
+0.0
March 2013 & 2014 YTD, in USD
+6.5
+2.0 +0.7 +0.2 +1.7 +2.6

18. MEA Markets Occ, ADR % Chg
March 2014 YTD, in local currency
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Abu Dhabi Amman Beirut Cairo Cape
Town
Doha Dubai Jeddah Lagos Manama Muscat Nairobi Riyadh Sandton
and Surrd.
Occupancy ADR

19. MEA Markets Occ, ADR
$0
$50
$100
$150
$200
$250
$300
30%
40%
50%
60%
70%
80%
90%
100%
Cairo Beirut Nairobi Lagos Manama Amman Sandton
and
Surrd.
Riyadh Jeddah Abu
Dhabi
Doha Cape
Town
Muscat Dubai
Occupancy ADR
March 2014 YTD, in USD

20. Accelerating Pipeline
Pipeline % increase # of rooms
+7%
+16%
+3%
+40%
+15%
+8%

21. Accelerating Pipeline
Global Pipeline
# of Rooms
Under Contract:
+1.16 million
In Construction +513k
Final Planning +270k
Planning +380k
MEA +137k
Saudi Arabia +34.9k
UAE +34.7k
Qatar +9.0k
Morocco +6.6k
Oman +5.0K
Upper Upscale Chains +47.8k
Luxury Chains +26.9k
Upscale Chains +25.0k
Upper Midscale +9.8k
Midscale +5.7k
Economy +1.1k

22. Opportunities in Africa No Branded Supply (Red)
Angola
Burundi
Central African Republic
Comoros
Democratic Republic of Congo
Eritrea
Liberia
Mauritania
Niger
Republic of Congo
Sierra Leone
Somalia
South Sudan
One African Brand (Blue)
Burkina Faso (1 hotel)
Guinea Bissau (1 hotel)
Lesotho (2 hotels)
Malawi (1 hotel)
Rwanda (2 hotels)
Swaziland (3 hotels)Source: STR Global
March 2014

23. THANK YOU