The document summarizes hotel performance data in Central and Eastern Europe from STR, a hotel data analytics company. It finds that occupancy and average daily rates increased in 2017 across Europe and Central and Eastern European capital cities. Specifically in Sofia, occupancy was down slightly in 2018 but average daily rates increased significantly, leading to an overall rise in revenue per available room of 13.8%. The presentation provides additional data on performance trends in other Eastern European markets.

1. © 2018 STR. All Rights Reserved.
Hotel & Tourism Investment Forum
Sofia, June 2018
Hotel Performance in Central & Eastern Europe
What numbers tell us?
Jakub Klimczak
Business Development Manager
jklimczak@str.com
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.

2. © 2018 STR. All Rights Reserved.
STR, collecting data since 1985

3. © 2018 STR. All Rights Reserved.
Europe – 2017 final results

4. © 2018 STR. All Rights Reserved.
Europe – regional RevPAR performance
EUR, CC, Full Year 2017
+4.7%
+2.2%
+10.8%
+9.5%

5. © 2018 STR. All Rights Reserved.
65.5%
67.3%
69.5%
73.6%
74.0%
77.5%
78.8%
80.1%
€76 €75
€64
€78
€81
€84
€75
€88
Occupancy ADR
CEE Capital Cities – Occupancy & ADR
EUR, Full Year 2017

6. © 2018 STR. All Rights Reserved.
4
9 9
11
15 15
18
23
0%
5%
10%
15%
20%
25%
Occupancy ADR RevPAR
CEE Capital Cities – Occupancy, ADR, RevPAR % Change
LC, Full Year 2017

7. © 2018 STR. All Rights Reserved.
2018 performance update

8. © 2018 STR. All Rights Reserved.
Middle East
Southern Africa
Northern Africa
+19.5%
Global RevPAR % Change
USD, Europe in EUR, Constant Currency, April 2018 YTD
Europe
Asia
+3.6%
+1.2%
+4.5%
+28.1%
+5.6%
-6.3%
+5.3%
Australia & Oceania
+4.5%
North America
Central America
South America

9. © 2018 STR. All Rights Reserved.
Europe

10. © 2018 STR. All Rights Reserved.
Europe continues to experience positive growth
Europe – Main KPIs
EUR, CC, April 2018 YTD
66.7%
Occupancy
+1.9%
102.56
ADR
+2.6%
68.38
RevPAR
+4.5%

11. © 2018 STR. All Rights Reserved.
0%
5%
10%
2012 2013 2014 2015 2016 2017 2018 YTD
Supply % change Demand % change RevPAR % change
Muted supply growth lifts occupancy (and RevPAR)
Europe – Supply, Demand, RevPAR % Change
EUR, CC, Full Year 2012 – 2017, April 2018 YTD

12. © 2018 STR. All Rights Reserved.
Europe – regional RevPAR performance
EUR, CC, April 2018 YTD
+1.5%
+5.3%
+7.0%
+6.8%

13. © 2018 STR. All Rights Reserved.
Performance in Eastern Europe

14. © 2018 STR. All Rights Reserved.
Eastern Europe – Main KPIs, CC, April 2018 YTD
Occupancy ADR RevPAR
+3.2% +3.7% +7.0%
59.0% 71.5 42.2
EUR, Constant Currency

15. © 2016 STR. All Rights Reserved.
Eastern Europe – RevPAR % Change, Local Currency, April 2018 YTD
Warsaw1
Kiev8
Riga10
Budapest 11
Sofia14
Prague0
Bucharest8
Bratislava8
Vilnius5
-3
6
Belgrade
Moscow

16. © 2018 STR. All Rights Reserved.
53.5%
58.2%
59.0%
60.8%
65.3%
67.2%
68.0%
70.5%
€80
€89
€78
€66
€77
€79
€75 €74
Belgrade Sofia Ljubljana Bratislava Bucharest Prague Budapest Warsaw
Occupancy ADR
Selected CEE Markets – Occupancy & ADR
EUR, April 2018 YTD

17. © 2018 STR. All Rights Reserved.
-3
0
1
8 8
10 11
14
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Belgrade Prague Warsaw Bratislava Bucharest Budapest Ljubljana Sofia
Occupancy ADR RevPAR
Selected CEE Markets – Occupancy, ADR, RevPAR % Change
LC, April 2018 YTD

18. © 2018 STR. All Rights Reserved.
Market performance in Sofia

19. © 2018 STR. All Rights Reserved.
58.4%
Occupancy
175.2
ADR
102.2
RevPAR
-6.4% +21.5% +13.8%
Sofia – Main KPIs, April 2018 YTD
Strong increase in ADR, local currency

20. © 2018 STR. All Rights Reserved.
20%
40%
60%
80%
100%
January February March April May June July August September October November December
2018 2016 2017
Sofia – Monthly Occupancy
January 2016 – April 2018

21. © 2018 STR. All Rights Reserved.
RON 0
RON 25
RON 50
RON 75
RON 100
RON 125
RON 150
RON 175
RON 200
January February March April May June July August September October November December
2018 2016 2017
Bucharest – Monthly ADR
Local currency, January 2016 – April 2018

22. Day of Week Analysis Actuals – Sofia
April 2018 YTD
0.0
50.0
100.0
150.0
200.0
250.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
BGN
Occupancy%
ADR (BGN) RevPAR (BGN) Occupancy

23. Day of Week Analysis % Chg – Sofia
April 2018 YTD
4.2%
12.9%
17.7%
20.2% 18.9%
8.5%
1.5%
13.8%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
%Change
Occupancy ADR RevPAR

24. © 2018 STR. All Rights Reserved.
Thank you!
Jakub Klimczak
jklimczak@str.com
www.strglobal.com
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.