Source Strategies, Inc. MARKET SLOWS MORE LOW GROWTH EXPECTED

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1 Hotel Source Strategies, Inc. BRAND BRAND Report Hotel Industry Performance Results September 2015 Issue 122 2nd Quarter 2015 The Market Page 1 Metros Compared 2nd Quarter P. 11 Year to Date 2015 (vs. YTD 2014) - P. 12 Quarter Brand Performance Higher Priced Brands - P. 13 Mid-to-Low Priced Brands - P. 15 Quarter Brand Performance Higher Priced Brands - P. 17 Mid-to-Low Priced Brands - P. 19 The Top 500 Hotels of 2nd Quarter 2015 ed by P. 21 Services From Source Strategies - P. 36 MARKET SLOWS MORE LOW GROWTH EXPECTED By Bruce H. Walker, President, Source Strategies, Inc. A lodging market slow-down hit in the Second quarter for the first time since 2009/10. This quarter was negatively affected by Oil prices down 50% from a year ago, torrential rains in much of Texas, and a continuation of a weak national economy. While Room revenues in non-oil & Gas areas were up a healthy 6.4%, Oil & Gas areas declined 3.5%. The net average was a 2.5% gain. We expect the next few quarters to continue at lowgrowth rates, especially with the price of oil still eroding. Texas lodging room revenues were $2.6 billion in the Second quarter, up 2.5% over This 2.5% gain was a combination of a 3.5% decline in Oil & Gas areas (39% of Texas rooms), with a 6.4% gain in the balance of the state (61% of rooms). In the First quarter, revenue gains were 8.4%. In 2014, total revenues rose 9.7%, to $9.7 billion. Record rainfalls probably influenced 2015 results. Accurate Tax-based Performance Data from all Texas Hotels, representing 8% of the U.S. market

2 MARKET SLOWS MORE LOW GROWTH EXPECTED REAL GROWTH NEAR ZERO Second quarter room-nights sold increased by only 0.2% state-wide after a 3.9% gain in the First quarter and a 5% gain in Oil & Gas areas (O&G) declined 3.2% while the balance increased 2.4%. Room-nights sold are the most important driver of industry health. ALSO FLAT (Revenue Per Available Room) was flat (-0.3%) based on a 2.6% decrease in occupancy and price increases of 2.3% (ADR). O&G areas suffered a 7% drop versus last year while the balance of the state increased by 4%. OCCUPANCY AT 66.2% Second quarter occupancy was still healthy at 66.2% - although down 1.8 points from last year. Annual occupancy was 65.7% in 2014 and 63.6% in Occupancy in Oil & Gas areas dropped 5 points to 64.6%, versus 67.3% in the non-oil areas of Texas. SUPPLY GROWTH EXCEEDS DEMAND Second quarter room supply grew by 2.8%, the highest since For all of 2014, net supply gained 2.2%. With low demand growth, will probably erode in the near future. % CHANGES VERSUS PREVIOUS YEAR Room Room Rooms % $ $ Year Supply Rev $ Sold Occ Price RPAR st Q nd Q REAL GROWTH WEAK averages of 60%. Net, while there has been a decline in O&G The state gain was just +0.2%. But modest price increases caused state revenues gained 2.5%, well below the typical 10% gains of the past 4 years. While average occupancy dropped 2.6%, it still averaged a healthy 66.2%, about the same as 2013 levels and above the past 20 year averages of 60%. Net, while there has been a decline in O&G areas, other area revenue results remain healthy. Second Quarter 2015 % Total Revenue* % Metropolitan Areas Market Change %Occ $ ADR Dallas-Ft Worth-Arlington 26.7% $651.5 $ % 70.1% $ $72.15 Houston-Baytown-Sugarland 23.6% $624.6 $ % 68.2% $ $78.98 Austin-Round Rock 12.0% $267.1 $ % 78.3% $ $ San Antonio 11.4% $306.1 $ % 64.5% $ $71.06 Non-Metro Areas 8.3% $230.5 $ % 56.2% $82.54 $46.39 Corpus Christi 2.9% $74.8 $ % 58.6% $ $66.03 Midland & Odessa 1.9% $58.8 $ % 64.6% $ $71.91 Balance of Texas 13.3% $346.5 $ % 62.6% $80.69 $50.51 Total State of Texas 100.0% $2,559.8 $2, % 66.2% $ $68.74 * $ millions 2

3 MARKET SLOWS MORE LOW GROWTH EXPECTED AUSTIN & DFW SHOW STRENGTH - Austin revenues grew 18.1% while Dallas-Ft Worth rose 7.5%. Austin revenues overtook San Antonio for the first time ever, based on its 18.1% gain versus a 2.3% San Antonio loss. 2 nd Quarter ROOM ROOM (% Change Vs Year Ago) NIGHTS REVENUES Balance of Texas 2.4% 6.4% Oil & Gas Counties -3.2% -3.5% Overall, fourteen metros showed revenue gains while ten declined. A total of seven metros had gains exceeding 7%. Texas state reached $68.74 in the quarter, down 0.3% from Midland/ Odessa revenues declined 17.2%, but still exceeded state averages by $4.07. OIL & GAS AREAS (100 counties) showed an average 3.5% loss in revenues, well below the 6.4% gain in non-oil & Gas areas (61% of Texas rooms). In oil-dependent areas, Second quarter revenues dropped severely: by 31% in San Angelo, by 25% in Victoria, by 20% in Odessa, by 15% in Midland, and by 8% in Laredo. LUXURY AND UPSCALE STRONGEST GAINERS Highest-priced segments Luxury and Upscale showed the greatest growth against last year. Independents, Budgets and Suite hotels exhibited declines. The lack of clear patterns probably has more to do with whether a hotel was operating in an Oil & Gas area, or in the stronger, non-o&g markets. Brand Segment Performance Second Quarter 2015 ( 000's) $ Room % % % Point Rate $ RPAR Segments Hotels Rooms Chg Revenues Chg Mkt Occup Chg Chg RPAR %Chg Luxury , % 2.7% % % Upscale , % 18.8% % % Suites , % 9.2% % % Mid/Upscales , % 15.7% % % Mini-Suites , % 6.3% % % L.S./Midscales 1, , % 20.9% % % Extended Stay , % 3.2% % % Budget , % 8.2% % % Total Brands 3, ,227, % 84.9% % % Tot. Independ 1, , % 15.1% % % Total Market 4, ,624, % 100% % % All information contained in the Hotel Brand Report is based on opinion, surveys and research from sources considered reliable; no representation is made as to accuracy and no liability of any kind can be accepted. 2015, Source Strategies, Inc. Reproduction or quotation is encouraged with attribution. The Hotel Brand Report, Issue 122 is published by Source Strategies, Inc., 134 Laurel Heights Place, San Antonio, Texas The Hotel Brand Report is published quarterly in March, June, September and December. One year subscription rate is $100. Two years $175. Phone: (210) The Hotel Brand Report is delivered via and can be printed by recipients. International Serial USPS Send address changes to Hotel Brand Report to P.O.Box , San Antonio, Texas , or Amanda@SourceStrategies.org. Visit 3

4 MARKET SLOWS MORE LOW GROWTH EXPECTED New Supply Growth: 30,000/year New hotel openings for the past 5 years appears to be consistent, hovering in the area of 30,000 new units every year. Up to the recession of 2009, a surge in development was prompted by strong hotel performance. Unfortunately, many developers opened their hotels in 2010 in market conditions that were less favorable than anticipated. New building fell off sharply in 2011, with tighter constraints on lending, as well as increasing caution. Last year, supply began to ramp up, but this year s numbers have fallen back, indicating more of a holding pattern than a real acceleration in construction had new 27,694 new hotel rooms in Texas, a far cry from the 61,961 rooms added in CLOSINGS: 20,000/YEAR The pattern of hotel closures closely matches new openings. New hotels historically open and replace older, obsolete properties. In some cases the older hotel may still exist, but becomes very marginal, operating as cheap, short term apartments rather than as a hotel. As would be expected, closures also reached their peak in 2010 when an influx of new supply was compounded by poor market conditions. Older properties were very vulnerable under these conditions and 41,763 units were taken out of service in The four years since 2010 have seen closure numbers vary from about 20,000 to 27,000 units, but in the latest year only about 16,000 units closed. This lower number of closures may indicate that many of the more vulnerable properties have already left the market, leaving competitive properties to fight for market share. Net Supply Growth Net room additions (openings less closings) were 11,570 units; additions peaked in 2010, with an additional 20,198 rooms added. With steady new room additions, and the reduction in closures in the past year, 2015 net room additions have returned to pre-recession levels. The peak increase in 2010 saw a rise in net rooms of almost 90% vs the prior year, despite unusually high closure numbers. Levels of net room-count growth fell off sharply following the recession, but the latest year shows signs of stronger growth in net supply. Net % Change Rooms from Added Prior Year , , % , % , % , % , % , % , % 4

5 MARKET SLOWS MORE LOW GROWTH EXPECTED Oil & Gas Areas (O&G) - In the Second quarter, the top 100 oil and gas production areas (O&G counties) declined significantly, while the balance of the state showed normal growth. In 2014, O&G was about the same as the rest of Texas. In this quarter, declines in the price of oil, and resulting change in O&G production activity, have caused O&G lodging industry declines. It is likely that O&G counties will see some further deterioration in their current levels, due to continued new supply openings and to continuing declines in demand levels. Currently, O&G areas account for 39% of Texas room revenues. % Change* Rooms Rooms Room $ 2nd Quarter 2015 Available Sold Revenues $ % Chg Oil & Gas Counties 3.7% -3.2% -3.5% $ % Non-Oil & Gas Counties 2.3% 2.4% 6.4% $ % Total Texas 2.8% 0.2% 2.5% $ % *versus Second Quarter 2014 Immediately below is the detailed comparison of the oil-related market area compared to the non O&G areas, and the effect of both on total Texas results: 2nd Quarter EST. $ EST. RMS* RNS AMT. EST. $ $ OIL&GAS AREAS HTL 000S 000S 000S %OCC RATE RPAR , , , , % CHANGE 3.7% -3.2% -3.5% -6.6% -0.3% -7.0% NON-OIL AREAS ,649 1,659, ,284 1,560, % CHANGE 2.3% 2.4% 6.4% 0.1% 4.3% 4.0% TOTAL TEXAS ,275 2,624, ,222 2,559, % CHANGE 2.8% 0.2% 2.5% 2.3% 2.3% -0.3% The Largest Metros Austin-Round Rock room-nights-sold gained an impressive 9.1% in the Second quarter, aided by the legislature in session plus a booming local economy. With an 8.2% increase in hotel rates, metro revenues gained a huge 18.1% to $315 million. In the Second quarter, Austin metro hotel receipts passed San Antonio metro for the first time in its history, with Austin becoming the third largest metro in Texas for this period. Second quarter occupancy gained 2.6 points to 78.3%; note that this high occupancy level is very close to maximum capacity in any market. Net room supply rose 5.4% (+1,700 net rooms); this increase is below the 9.1% demand increase, enhancing occupancy gains in the period. In the quarter, Austin s $315 million revenues were 5% above nearby San Antonio (vs. 12% below in 2013, for instance). 5

6 MARKET SLOWS MORE LOW GROWTH EXPECTED For all of 2014, Austin room-nights sold rose 3.6% with occupancy rising 1.3 points to 73.8% in a non-legislative Texas year; room revenues gained 10.4% with the help of a 6.5% increase in prices. Rooms available rose 2.0% (600 rooms added). Ft. Worth-Arlington Metropolitan Division room-nights sold rose 5.3% in the quarter, while rates gained 19%. As a result, revenues rose 7.2% to $216 million, as occupancy gained 2.4 points, to 63.8%. Net room supply increased by only 1.2% (400 rooms). In the year of 2014, Ft. Worth-Arlington room revenues gained 9% on a 3.4% increase in room rates and a 5.4% rise in room-nights sold from 2013; occupancy gained 2.1 points to 63.8%. Net room supply increased by 2.2% (700 net rooms). Dallas Metropolitan Division room-nights sold rose 3.7% in the quarter, while rates improved 4.5%. As a result, revenues rose a sound 7.6% to $484 million, as occupancy gained 1 point, to 72.9%. Net room supply increased by only 2.4% (1,700 rooms). In the year of 2014, Dallas room revenues gained 8.4% on a 3.3% increase in room rates and a 5% rise in room-nights sold from 2013; occupancy gained a strong 2.9 points to 68.5%. Net room supply increased by only 0.4% (300 net rooms). Houston-Baytown-Sugar Land room-nights sold volume eroded 2.6% in the Second quarter, clearly affected by the 50% drop in oil prices versus last year. Revenues slipped by only 1%, to $618 million on a 1.6% price gain. Occupancy dropped 3.7 points to a still healthy 68.2%. Metro room supply rose by 2.7% (2,300 net rooms). In the quarter, Houston s $618 million revenues lost some ground in closing in on the largest metro, Dallas-Ft Worth, at $700 million, In the year of 2014, Houston room revenues gained 10.8% and room-nights sold rose 5.4%; then, occupancy increased 2.1 points to a 68.7% average prices rose 5.1% and supply by 2.1% (1,700 net rooms). San Antonio metro room-nights sold declined by 3.4% in the Second quarter of 2015, far below the 2.4% gains in non-oil & Gas Texas counties. As a market depending on leisure travelers for over two-thirds of its demand, record rains in the quarter probably affected these results. Room revenues eroded by 2.3% versus last year, to $299 million. Occupancy shrunk 3.4 points to 64.5% (after being flat in the year of 2014). Net supply grew 0.7% (300 net rooms), to 46,200 rooms. Third quarter results should show if San Antonio s long-term trend of market share declines continues. In the year of 2014, San Antonio real growth was a 3.7% rise in room-nights sold, well below the rest of the state s 5.2%. Metro room revenues gained 6.4%, due to the room-night sold gain and a 2.7% increase in room rates. Occupancy in 2014 was 64.5%, up 1.8 points. Net rooms available rose 0.9% (400 net rooms). Of particular note, the downtown San Antonio market generated only about 1% growth in 2013 and 2014 (3.231 million room-nights sold in 2014 versus million in 2013). 6

7 MARKET SLOWS MORE LOW GROWTH EXPECTED Second Quarter Occupancy 66.2% - In the Second quarter of 2015, occupancy averaged 66.2%, down from 68% last year but still well above the long term annual state average of 60%. Chain occupancy in the Second quarter was 68.5%, down 1.5 points from a year ago. Chains accounted for 84.9% of market revenues, up slightly from last year. Independents generated 57.8% occupancy, down by 2.5 points. Seventeen of the 27 Texas areas showed decreased occupancy in the Second quarter versus last year. Just seven areas exceeded the state occupancy average, including the three largest. The table below is sorted by Second quarter 2015 occupancy percentage; it clearly shows the negative effect of decreased oil and gas exploration and production activity. In Oil & Gas counties, accounting for 38% of state revenues, occupancy averaged 64.6%, down 4.6 points from the Second quarter of 2014: Metro Area Performances Year of nd Quarter 2015 Occ Rev Occ Pt. $ Rev Metro Area % % Chg % Chg % Chg Austin-Round Rock % % Dallas MD % % El Paso % % Waco % % Lubbock % % Amarillo % % Houston-Baytown-Sugarland % % State Average % % College Station-Bryan % % Midland % % San Antonio % % Wichita Falls % % Ft Worth-Arlington MD % % Odessa % % Beaumont-Pt Arthur % % Longview % % Laredo % % Tyler % % McAllen-Edinburg-Pharr % % Abilene % % Corpus Christi % % Killeen-Temple-Ft Hood % % San Angelo % % Non Metro % % Brownsville-Harlingen % % Victoria % % Texarkana (Tx) % % Sherman-Denison % % 7

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11 METROS COMPARED: 2ND QUARTER 2015 Prepared for the MARKET TEXAS TOURISM, Office of the Governor, Texas Economic Development & Tourism HOTEL/MOTEL PERFORMANCE BY METRO, SECOND QUARTER Nites 1 $ 3 Est. Nites 1 $ 3 Est. 2 % CHANGE Rooms sold Revenue $ % 2 Rooms sold Revenue $ % Nites $ Htls 000 s 000 s 000 s Rate Occ Htls 000 s 000 s 000 s Rate Occ Sold Revs Occ. Metropolitan 3.4 Statistical Areas Abilene , , Amarillo , , Austin-R R , , , , Beaumt-PT , , Browns/Har , , ColSt-Brya , , Corpus Chr , , Dallas MD , , , , Ft W-Arl M , , , , DFW Metro , , , , El Paso , , Hou-Bay-Su , , , , Kil-Tem-Ft , , Laredo , , Longview , , Lubbock , , McAl-Ed-Mi , , Midland , , Odessa , , San Angelo , , San Antoni , , , , Shermn/Den , , Texarka(TX , , Tyler , , Victoria , , Waco , , Wichita Fa , , Non-Metro 1, , , , , , TOTAL TEXAS 4, ,224 2,559, , ,272 2,624, , ,174 2,347, Roomnights sold (from estimated rate and actual rooms revenues.). 2. Occupancy: nights sold divided by nights available (x 100). 3. Taxable and gross rooms revenues are from Texas Comptroller (with 12%+ added on average if gross not reported; covers monthly, government, charity, educational rents). Prepared by Source Strategies, Inc., P.O. Box , San Antonio, Texas (210) FAX (210) Website:sourcestrategies.org 11

12 METROS COMPARED: YEAR TO DATE 2015 (VS. YTD 2014) Prepared for the MARKET TEXAS TOURISM, Office of the Governor, Texas Economic Development & Tourism Metropolitan Statistical Areas HOTEL/MOTEL PERFORMANCE BY METRO, SECOND QUARTER Nites 1 $ 3 Est. Nites 1 $ 3 Est. 2 % CHANGE Rooms sold Revenue $ % 2 Rooms sold Revenue $ % Nites $ Htls 000 s 000 s 000 s Rate Occ Htls 000 s 000 s 000 s Rate Occ Sold Revs Occ. eas Abilene , , Amarillo , , Austin-R Ro , , , , Beaumt-PT A , , Browns/Harl , , ColSt-Bryan , , Corpus Chri , , , , Dallas MD , , , , Ft W-Arl MD , , , , Total DFW ,968 1,260, ,635 1,382, El Paso ,073 80, ,118 86, Hou-Bay-Sug ,669 1,181, ,592 1,205, Kil-Tem-FtH , , Laredo , , Longview , , Lubbock , , McAl-Ed-Mi , , Midland , , Odessa , , San Angelo , , San Antonio , , , , Shermn/Deni , , Texarka(TX) , , Tyler , , Victoria , , Waco , , Wichita Fal , , Non-Metro , , , , , Total Texas 4, ,128 4,857, , ,118 5,114, YTD 4, ,255 4,469, Prepared by Source Strategies, Inc., P.O. Box , San Antonio, Texas (210) FAX (210) Web: 12

13 HIGH-PRICED BRAND PERFORMANCE RESULTS Second Quarter 2015 [^=Change from same quarter of prior year (absolute value unless marked percentage)] Brands/ Hotels 1 $ Room 2 Rooms-M Revenues(000's) % Revenues 3 % Rmnts Sold 4 Segments ^ ^ ^ ^ Four Seasons ,678 24, % Gaylord ,423 20, % Ritz Carlton ,355 5, % W ,558 11, % Za Za ,726 8, % Luxury Segment ,740 70, % Hilton , , % Hyatt ,532 84, % Inter-Continental ,665 7, % Marriott , , % Omni ,826 64, % Renaissance ,146 21, % Sonesta ,653 4, % Westin ,466 46, % Upscale Segment , , % Embassy ,629 56, % Homewood ,299 48, % Hyatt House/Summerfield ,772 9, % Residence Inn ,000 65, % Staybridge ,488 26, % Other Suites ,834 34, % Suites Segment , , % Four Points ,038 6, % Aloft ,651 10, % Courtyard ,958 92, % Crowne Plaza ,795 22, % Doubletree ,496 46, % Hilton Garden ,597 63, % Holiday Inn ,174 57, % Hyatt Place ,753 31, % Radisson ,557 8, % Sheraton ,788 42, % Wyndahm ,934 20, % Other Mid/Upscale ,398 9, % Mid/Upscales , , % Mid-and L P Segments Mini-Suites , , % L.S./Midscales , , % Low Price Extended Stay ,446 84, % Budget Segment , , % Total Chains ,158,911 2,227, % Independents $100+ ADR , , % $60-$ ,637 58, % Under $ ,661 98, % Total Independents , , % Total Market ,559,833 2,624, % All Texas Hotels and Motels with rooms-only revenues exceeding $80,000 per year. 2. Gross Room Revenue (000's) includes non-tax revenues (approx. 11% of total). 3. % Gross Room Revenues. 4. %Roomnights Sold: derived from room revenues, roomnights and estimated ADR. 13

14 HIGH-PRICED BRAND PERFORMANCE RESULTS Second Quarter 2015 [^=Change from same quarter of prior year (absolute value unless marked percentage)] Brands/ % Occupancy 5 Est. $ ADR $ 6 Index 7 Segments ^ %^ ^ ^ Four Seasons % Gaylord % Ritz Carlton % W % Za Za % Luxury Segment % Hilton % Hyatt % Inter-Continental % Marriott % Omni % Renaissance % Sonesta % Westin % Upscale Segment % Embassy % Homewood % Hyatt House/Summerfield % Residence Inn % Staybridge % Other Suites % Suites Segment % Four Points % Aloft % Courtyard % Crowne Plaza % Doubletree % Hilton Garden % Holiday Inn % Hyatt Place % Radisson % Sheraton % Wyndham % Other Mid/Upscale % Mid/Upscales % Mid-and-L P Segments Mini-Suites % L.S./Midscales % Low Price Extended Stay % Budget Segment % Total Chains % Independents $100+ ADR % $60-$ % Under $ % Total Independents % Total Market % Roomnights sold divided by roomnights available (times 100). Roomnights sold equals room revenues divided by estimated average daily rate (ADR). 6. Room revenue, per available rom per day (equals occupancy % times ADR). 7. Market average equals

15 MID/LOW-PRICED BRAND PERFORMANCE RESULTS Second Quarter 2015 [^=Change from same quarter of prior year (absolute value unless marked percentage)] Brands/ Hotels 1 $ Room 2 Rooms-M Revenues(000's) % Revenues 3 % Rmnts Sold 4 Segments ^ ^ ^ ^ High-Priced Segments Luxury Segment ,740 70, % Upscale Segment , , % Suites Segment , , % Mid/Upscales , , % Candlewood ,354 34, % Comfort Suites ,899 44, % Hawthorn ,441 10, % Home2 Suites ,078 7, % SpringHill ,294 36, % Townplace ,936 24, % Other Mini-Suites ,874 6, % Mini-Suites , , % Best Western ,021 72, % Country Inn & Suites ,634 9, % Comfort Inn ,687 24, % Drury Inn ,420 20, % Fairfield Inn ,831 37, % Hampton Inn , , % Holiday Express , , % La Quinta , , % Sleep Inn ,594 10, % Wingate ,914 7, % L.S./Midscales , , % Budget Stes America ,952 11, % Ext Stay America ,724 26, % Intown ,929 10, % Mainstay ,745 1, % Studio ,798 11, % Value Place ,424 12, % Other LP Ext St ,874 9, % Low Price Extended Stay ,446 84, % Baymont ,885 11, % Best Value ,671 14, % Days Inn ,511 27, % Econo Lodge ,754 7, % How. Johnson ,952 3, % Microtel ,242 8, % Motel ,166 41, % Quality Inn ,017 22, % Ramada Inn ,297 8, % Red Roof Inn ,085 13, % Rodeway ,464 3, % Super ,897 31, % Travelodge ,271 4, % Other Budgets ,906 15, % Budget Segment , , % Total Chains ,158,911 2,227, % Total Independents , , % Total Market ,559,833 2,624, % All Texas Hotels and Motels with rooms-only revenues exceeding $80,000 per year. 2. Gross Room Revenue (000's) includes non-tax revenues (approx. 11% of total). 3. % Gross Room Revenues. 4. %Roomnights Sold: derived from room revenues, roomnights and estimated ADR. 15

16 MID/LOW-PRICED BRAND PERFORMANCE RESULTS Second Quarter 2015 [^=Change from same quarter of prior year (absolute value unless marked percentage)] Brands/ % Occupancy 5 Est. $ ADR $ 6 Index 7 Segments ^ %^ ^ ^ High-Priced Segments Luxury Segment % Upscale Segment % Suites Segment % Mid/Upscales % Candlewood % Comfort Suites % Hawthorn % Home2 Suites % SpringHill % Townplace % Other Mini-Suites % Mini-Suites % Best Western % Country Inn & Suites % Comfort Inn % Drury Inn % Fairfield Inn % Hampton Inn % Holiday Express % La Quinta Inn % Sleep Inn % Wingate % L.S./Midscales % Budget Stes America % Ext Stay America % Intown % Mainstay % Studio % Value Place % Other LP Ext St % Low Price Extended Stay % Baymont % Best Value % Days Inn % Econo Lodge % How. Johnson % Microtel % Motel % Quality Inn % Ramada Inn % Red Roof Inn % Rodeway % Super % Travelodge % Other Budgets % Budget Segment % Total Chains % Total Independents % Total Market % Roomnights sold divided by roomnights available (times 100). Roomnights sold equals room revenues divided by estimated average daily rate (ADR). 6. Room revenue, per available rom per day (equals occupancy % times ADR). 7. Market average equals

17 HIGH-PRICED BRAND PERFORMANCE RESULTS Year Ending June 30, 2015 [^=Change from prior year (absolute value unless marked percentage)] Brands/ Hotels 1 $ Room 2 Rooms- M Revenues(000's) % Revenues 3 % Rmnts Sold 4 Segments ^ ^ ^ ^ Four Seasons ,674 88, % Gaylord ,951 84, % Ritz Carlton ,338 20, % W ,307 44, % Za Za ,844 33, % Luxury Segment , , % Hilton , , % Hyatt , , % Inter-Continental ,438 28, % Marriott , , % Omni , , % Renaissance ,499 79, % Sonesta ,090 17, % Westin , , % Upscale Segment ,724,365 1,822, % Embassy , , % Homewood , , % Hyatt House/Summerfield ,054 35, % Residence Inn , , % Staybridge , , % Other Suites , , % Suites Segment , , % Points ,054 25, % Aloft ,181 40, % Courtyard , , % Crowne Plaza ,274 86, % Doubletree , , % Hilton Garden , , % Holiday Inn , , % Hyatt Place , , % Indigo ,541 21, % NYLO ,312 14, % Radisson ,738 33, % Sheraton , , % Wyndham ,168 85, % Mid/Upscales ,428,791 1,551, % Mid-and-L P Segments Mini-Suites , , % L.S./Midscales ,950,885 2,090, % Low Price Extended Stay , , % Budget Segment , , % Total Chains 3, ,806,260 8,426, % Independents $100+ ADR , , % $60-$ , , % Under $ , , % Total Independents 1, ,382,766 1,484, % Total Market 4, ,189,026 9,911, % All Texas Hotels and Motels with rooms-only revenues exceeding $80,000 per year. 2. Gross Room Revenue (000's) includes non-tax revenues (approx. 11% of total). 3. % Gross Room Revenues. 4. %Roomnights Sold: derived from room revenues, roomnights and estimated ADR. 17

18 HIGH-PRICED BRAND PERFORMANCE RESULTS Year Ending June 30, 2015 [^=Change from prior year (absolute value unless marked percentage)] Brands/ % Occupancy 5 Est. $ ADR $ 6 Index 7 Segments ^ %^ ^ ^ Four Seasons % Gaylord % Ritz Carlton % W % Za Za % Luxury Segment % Hilton % Hyatt % Inter-Continental % Marriott % Omni % Renaissance % Sonesta % Westin % Upscale Segment % Embassy % Homewood % Hyatt House/Summerfield % Residence Inn % Staybridge % Other Suites % Suites Segment % Points % Aloft % Courtyard % Crowne Plaza % Doubletree % Hilton Garden % Holiday Inn % Hyatt Place % Indigo % NYLO % Radisson % Sheraton % Wyndham % Mid/Upscales % Mid-and-L P Segments Mini-Suites % L.S./Midscales % Low Price Extended Stay % Budget Segment % Total Chains % Independents $100+ ADR % $60-$ % Under $ % Total Independents % Total Market % Roomnights sold divided by roomnights available (times 100). Roomnights sold equals room revenues divided by estimated average daily rate (ADR). 6. Room revenue, per available rom per day (equals occupancy % times ADR). 7. Market average equals

19 MID/LOW-PRICED BRAND PERFORMANCE RESULTS Year Ending June 30, 2015 [^=Change from prior year (absolute value unless marked percentage)] Brands/ Hotels 1 $ Room 2 Rooms- M Revenues(000's) % Revenues 3 % Rmnts Sold 4 Segments ^ ^ ^ ^ High-Priced Segments Luxury Segment , , % Upscale Segment ,724,365 1,822, % Suites Segment , , % Mid/Upscales ,428,791 1,551, % Candlewood , , % Comfort Suites , , % Hawthorn ,136 35, % Home2 Suites ,562 22, % SpringHill , , % Townplace ,196 92, % Other Mini-Suites ,220 23, % Mini-Suites , , % Best Western , , % Country Inn & Suites ,758 33, % Comfort Inn ,299 92, % Drury Inn ,967 77, % Fairfield Inn , , % Hampton Inn , , % Holiday Express , , % La Quinta , , % Sleep Inn ,270 43, % Wingate ,700 28, % L.S./Midscales ,950,885 2,090, % Budget Stes America ,274 45, % Ext Stay America ,747 82, % Intown ,845 42, % Mainstay ,477 6, % Studio ,735 43, % Other LP Ext St , , % Low Price Extended Stay , , % Baymont ,334 44, % Best Value ,463 58, % Days Inn , , % Econo Lodge ,261 28, % How. Johnson ,954 14, % Microtel ,186 36, % Motel , , % Quality Inn ,128 88, % Ramada Inn ,846 30, % Red Roof Inn ,712 43, % Rodeway ,992 14, % Super , , % Travelodge ,267 19, % Other Budgets ,245 61, % Budget Segment , , % Total Chains 3, ,806,260 8,426, % Total Independents 1, ,382,766 1,484, % Total Market 4, ,189,026 9,911, % All Texas Hotels and Motels with rooms-only revenues exceeding $80,000 per year. 2. Gross Room Revenue (000's) includes non-tax revenues (approx. 11% of total). 3. % Gross Room Revenues. 4. %Roomnights Sold: derived from room revenues, roomnights and estimated ADR. **Value Place is located in Other LP Ext St 19

20 MID/LOW-PRICED BRAND PERFORMANCE RESULTS Year Ending June 30, 2015 [^=Change from prior year (absolute value unless marked percentage)] Brands/ % Occupancy 5 Est. $ ADR $ 6 Index 7 Segments ^ %^ ^ ^ High-Priced Segments Luxury Segment % Upscale Segment % Suites Segment % Mid/Upscales % Candlewood % Comfort Suites % Hawthorn % Home2 Suites % SpringHill % Townplace % Other Mini-Suites % Mini-Suites % Best Western % Country Inn & Suites % Comfort Inn % Drury Inn % Fairfield Inn % Hampton Inn % Holiday Express % La Quinta % Sleep Inn % Wingate % L.S./Midscales % Budget Stes America % Ext Stay America % Intown % Mainstay % Studio % Other LP Ext St % Low Price Extended Stay % Baymont % Best Value % Days Inn % Econo Lodge % How. Johnson % Microtel % Motel % Quality Inn % Ramada Inn % Red Roof Inn % Rodeway % Super % Travelodge % Other Budgets % Budget Segment % Total Chains % Total Independents % Total Market % Roomnights sold divided by roomnights available (times 100). Roomnights sold equals room revenues divided by estimated average daily rate (ADR). 6. Room revenue, per available rom per day (equals occupancy % times ADR). 7. Market average equals 100. **Value Place is located in Other LP Ext St 20

21 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ 1 9 TRAVAASA EXPERIENTIAL AUSTIN $ $ HYATT MARKET ST HOTEL HYATT THE WOODLA W HOTEL W AUSTIN FOUR SEASONS HOTEL AUSTIN FOURS AUSTIN THE DRISKILL HOTEL AUSTIN RITZ-CARLTON DALLAS RITZ DALLAS HOTEL GRANDUCA GRAND HOUSTON ROUGH CREEK LODGE(EST) IREDELL ZA ZA DALLAS ZA ZA DALLAS ST REGIS HOUSTON HOUSTON LAKE AUSTIN SPA AUSTIN FOUR SEASONS HOTEL FOURS HOUSTON MANSION OF TURTLE CREEK DALLAS HOTEL ELLA AUSTIN INTER-CONTINENTAL STEPHEN F INT-C AUSTIN FOUR SEASONS RESORT & CLUB FOURS IRVING OMNI HOTEL AT FIC OMNI AUSTIN GRAND HYATT DFW HYATT GRAPEVINE THE SAN LUIS HOTEL GALVESTON HYATT REGENCY RESORT HYATT LOST PINES THE JOULE A LUXURY COLLECTION DALLAS THE SAN JOSE HOTEL AUSTIN MOKARA HOTEL FMR WATERMARK SAN ANTONI W DALLAS-VICTORY HOTEL W DALLAS JW MARRIOTT HILL COUNTRY MARRT SAN ANTONI JW MARRIOTT HOTEL MARRT AUSTIN HILTON CONVENTION CENTER HILTO AUSTIN HAMPTON INN & SUITES HAMPT AUSTIN MARRIOTT WATERWAY HOTEL MARRT THE WOODLA HYATT PLACE DOWNTOWN HYATP AUSTIN HOTEL ZA ZA ZA ZA HOUSTON HOUSTONIAN HOTEL HOUSTON LE MERIDIEN DALLAS ROSEWOOD CRESCENT COURT DALLAS DOUBLETREE GUEST SUITES DBLST AUSTIN ASHTON HOTEL FORT WORTH COURTYARD BY MARRIOTT DOWNT COURT AUSTIN WESTIN HOTEL AT THE BALL PARK WESTN HOUSTON HILTON GARDEN INN HILTG THE WOODLA

22 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ RESIDENCE INN DOWNTOWN RESID AUSTIN KIMPTON HOTEL LUMEN DALLAS AT&T EXEC CONFERENCE CTR AUSTIN HILTON HOTEL SOUTHLAKE HILTO SOUTHLAKE THE WESTIN MEMORIAL WESTN HOUSTON RESIDENCE INN SIX PINES RESID THE WOODLA HOTEL ICON HOUSTON EMBASSY SUITES OF AUSTIN EMBAS AUSTIN JW MARRIOTT DOWNTOWN MARRT HOUSTON EMBASSY SUITES FMR CLARI EMBAS FORT WORTH THE GALVESTONIAN GALVESTON THE GAGE HOTEL MARATHON THE LANCASTER HOTEL HOUSTON BEST WESTERN SWISS CHALET BWEST PECOS WESTIN HOTEL AT DOMAIN WESTN AUSTIN HILTON GARDEN HILTG AUSTIN SHERATON FMR MARRIOTT SHERA AUSTIN HOTEL SORELLA HOUSTON HIGHLAND CURIO HILTO DALLAS HYATT REGENCY HILL COUNTRY HYATT SAN ANTONI NEAL'S LODGES CONCAN HYATT PLACE HOTEL HYATP SHENANDOAH EMBASSY SUITES RIVERWALK EMBAS SAN ANTONI HYATT REGENCY AUSTIN HYATT AUSTIN BOARDWALK INN KEMAH THE WYNDHAM HOTEL GALVEZ WYNDH GALVESTON DOUBLETREE HOTEL DOUBL AUSTIN GAYLORD TEXAS RESORT & CONF GAYLO GRAPEVINE HAMPTON INN & SUITES DNT HAMPT AUSTIN EMBASSY SUITES GALLERIA EMBAS HOUSTON OMNI RIVERWAY HOUSTON OMNI HOUSTON RESIDENCE INN WOODLANDS RESID THE WOODLA OMNI FORT WORTH HOTEL OMNI FORT WORTH OMNI DALLAS HOTEL OMNI DALLAS MARRIOTT LEGACY MARRT PLANO EMBASSY SUITE OUTDOOR WORLD EMBAS GRAPEVINE EMBASSY SUITES EMBAS LUBBOCK WOODLANDS EXEC CENTER THE WOODLA

23 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ RESIDENCE INN GALLERIA RESID HOUSTON WESTIN OAKS HOUSTON WESTN HOUSTON THE WESTIN GALLERIA WESTN HOUSTON HILTON AMERICAS CONVENTION HILTO HOUSTON HILTON GARDEN INN HILTG GRAPEVINE EMBASSY SUITES HOUSTON EMBAS HOUSTON HILTON POST OAK HILTO HOUSTON HOMEWOOD SUITES SAGE RD HOMEW HOUSTON ALOFT DOMAINS ALOFT AUSTIN JW MARRIOTT 785 MARRT HOUSTON HOTEL CONTESSA X.STE SAN ANTONI WESTIN HOTEL GALLERIA WESTN DALLAS MARRIOTT MED CTR MARRT HOUSTON THE TREMONT HOUSE WYNDHAM WYNDH GALVESTON HOTEL DEREK HOUSTON FRIO COUNTRY RESORT CONCAN STOCKYARDS HOTEL FORT WORTH WARWICK MELROSE HOTEL DALLAS EMBASSY SUITES ENERGY PLACE EMBAS HOUSTON HOMEWOOD SUITES NW HOMEW AUSTIN OMNI LA MANSION DEL RIO OMNI SAN ANTONI HAMPTON INN & SUITES HAMPT HOUSTON COURTYARD WOODLANDS COURT THE WOODLA YOGI BEAR JELLYSTONE PARK WALLER HILTON PARK CITIES HILTO DALLAS HOMEWOOD SUITES -DOWNTOWN HOMEW DALLAS EMBASSY SUITES AUSTIN EMBAS AUSTIN ESCAPES! TO THE GULF GALVESTON HOLIDAY EXPRESS HOTEL HIEXP PECOS MARRIOTT CITY CTR MARRT DALLAS GALVESTON ISLAND HILTON HILTO GALVESTON THE FAIRMONT DALLAS HOTEL DALLAS HOMEWOOD SUITES WILLOWBROOK HOMEW HOUSTON RESIDENCE INN-AUSTIN NORTH RESID AUSTIN COURTYARD BY MARRIOTT COURT GALVESTON HAMPTON INN HAMPT PECOS MARRIOTT AUSTIN SOUTH MARRT AUSTIN HYATT PLACE STOCKYARDS HYATP FORT WORTH

24 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ MARRIOTT TOWN SQUARE MARRT SUGAR LAND HOMEWOOD SUITES HOMEW MIDLAND RENAISSANCE WORTHINGTON RENAS FORT WORTH HOMEWOOD SUITES WESTCHASE HOMEW HOUSTON THE WESTIN RIVERWALK WESTN SAN ANTONI GRAND HYATT CONVENTION CTR HYATT SAN ANTONI LONE STAR COURT AUSTIN COURTYARD BY MARRIOTT COURT AUSTIN RENAISSANCE AUSTIN HOTEL RENAS AUSTIN HOLIDAY EXPRESS HOTEL HIEXP AUSTIN COURTYARD MED CENTER COURT HOUSTON DOUBLETREE HOTEL ALLEN CENTER DOUBL HOUSTON HILTON PALACIO DEL RIO HILTO SAN ANTONI HOLIDAY INN ON THE BEACH HOLID GALVESTON HOTEL VALENCIA RIVERWALK SAN ANTONI HOMEWOOD SUITES HOMEW ROUND ROCK RADISSON HOTEL & SUITES RADIS AUSTIN MARRIOTT RIVERWALK MARRT SAN ANTONI HOMEWOOD SUITES HOMEW SAN ANTONI RESIDENCE INN BY MARRIOTT RESID AUSTIN ALOFT HOUSTON GALLERIA ALOFT HOUSTON HILTON GARDEN GALLERIA HILTG HOUSTON RESIDENCE INN AUSTIN SOUTH RESID AUSTIN HAMPTON INN & SUITES HAMPT LAKEWAY HILTON CONVENTION CENTER HILTO FORT WORTH LA QUINTA INN & SUITES LAQUN PECOS HOMEWOOD SUITES HOMEW GRAPEVINE HYATT REGENCY RIVERWALK HYATT SAN ANTONI HILTON AUSTIN AIRPORT HILTO AUSTIN EILAN HOTEL RESORT & SPA SAN ANTONI RESIDENCE INN RESID HOUSTON COURTYARD- AUSTIN SOUTH COURT AUSTIN THE HARBOR HOUSE GALVESTON HAMPTON INN HAMPT AUSTIN HAMPTON INN & SUITES HAMPT FREDERICKS SHERATON SUITES HOUSTON X.STE HOUSTON RESIDENCE INN RESID FORT WORTH WYNDHAM MED CTR WYNDH HOUSTON

25 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ HOMEWOOD WOODLANDS HOMEW SHENANDOAH MARRIOTT HORSESHOE BAY RESORT MARRT HORSESHOE RESIDENCE INN NW RESID AUSTIN NYLO HOTEL SOUTH SIDE NYLO DALLAS HYATT PLACE HYATP SAN ANTONI HAMPTON INN & SUITES HAMPT GRAPEVINE HILTON WESTCHASE & TOWER HILTO HOUSTON DRURY INN & SUITES RIVER DRURY SAN ANTONI HOMEWOOD SUITES SOUTH HOMEW AUSTIN HAMPTON INN HAMPT FORT STOCK MARRIOTT WEST LOOP MARRT HOUSTON WESTIN STONEBRIAR RESORT WESTN FRISCO COURTYARD BY MARRIOTT COURT HOUSTON RESIDENCE INN MED CTR RESID HOUSTON HAMPTON INN HAMPT HOUSTON HYATT PLACE ARBORETUM FM HYATP AUSTIN COMFORT SUITES COMFS PECOS HAMPTON INN FMR AMARILLO HAMPT AMARILLO EMBASSY SUITE LOVE FIELD EMBAS DALLAS HILTON GARDEN INN HILTG MIDLAND HOMEWOOD SUITES HOMEW LUBBOCK STAYBRIDGE AUSTIN NW STAYB AUSTIN RESIDENCE INN RESID ARLINGTON OMNI SOUTHPARK OMNI AUSTIN OMNI BAYFRONT FMR MARRIOTT OMNI CORPUS CHR BEST WESTERN OASIS INN BWEST CANADIAN GALVESTON BEACH HOTEL GALVESTON HAMPTON INN AUSTIN NORTH HAMPT AUSTIN PEARL HOTEL FMR SHERATON SOUTH PADR HOTEL INDIGO BAYLOR INDIG WACO COURTYARD DOWNTOWN COURT LUBBOCK EMBASSY SUITES I35 NORTH EMBAS AUSTIN MARRIOTT RIVERCENTER MARRT SAN ANTONI HOMEWOOD SUITES HOMEW FORT WORTH BEST WESTERN OCEAN VILLA BWEST PORT ARANS HAMPTON INN & SUITES BUS HAMPT HOUSTON DOUBLETREE GUEST SUITES DBLST HOUSTON HOMEWOOD SUITES - FRISCO HOMEW FRISCO

26 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ HILTON GARDEN INN HILTG AUSTIN HILTON GARDEN INN HILTG FORT WORTH THE AUSTIN MOTEL AUSTIN EMBASSY SUITES HOTEL 95 EMBAS CORPUS CHR EMBASSY SUITES EMBAS FRISCO HOMEWOOD SUITES DFW HOMEW IRVING HOLIDAY EXPRESS DOWNTOWN HIEXP HOUSTON BEST WESTERN PALACE INN BWEST BIG SPRING HILTON COLLEGE STATION HILTO COLLEGE ST COURTYARD BY MARRIOTT COURT AUSTIN HOLIDAY EXPRESS LOOP 250 HIEXP MIDLAND ELEMENT HOUSTON VINTAGE ELEMT HOUSTON RESIDENCE INN WEST UNIVE RESID HOUSTON HILTON GARDEN INN-AUSTIN HILTG AUSTIN JESSE JONES ROTARY HOUSE HOUSTON HAMPTON INN & SUITES HAMPT LUBBOCK HOLIDAY EXPRESS HIEXP AUSTIN LA QUINTA INN & SUITES LAQUN SOUTH PADR HAMPTON INN AUSTIN SOUTH HAMPT AUSTIN HOMEWOOD SUITES HOMEW ARLINGTON HILTON GARDEN INN ARLINGTON HILTG ARLINGTON RESIDENCE INN RESID GRAPEVINE SPRINGHILL SUITES BY MARRIOTT SPRNG BAYTOWN HYATT PLACE I35 N HYATP AUSTIN DOUBLETREE HOTEL DOUBL HOUSTON EMBASSY SUITES SAN MARCOS EMBAS SAN MARCOS MOODY GARDENS HOTEL GALVESTON HILTON GARDEN INN HOTEL HILTG HOUSTON HILTON HOUSTON PLAZA HILTO HOUSTON HOLIDAY EXPRESS HIEXP FORT WORTH MARRIOTT HOTEL DFW AIRPORT MARRT IRVING HYATT HOUSE SUITES HYATH DALLAS FAIRFIELD INN BY MARRIOTT FAIRF SPRING MARRIOTT LAS COLINAS MARRT IRVING OMNI MANDALAY HOTEL OMNI IRVING LA QUINTA INN CAPITAL LAQUN AUSTIN HOLIDAY EXPRESS HIEXP AMARILLO COURTYARD COMPAQ COURT HOUSTON

27 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ COURTYARD WEST UNIVERSITY COURT HOUSTON SHERATON CROWN HOTEL SHERA HOUSTON HAMPTON INN & SUITES HAMPT CLUTE HILTON BELLA HARBOR HILTO ROCKWALL BEST WESTERN BWEST MONAHANS HOLIDAY EXPRESS HIEXP PORT ARANS SOUTHERN INN & SUITES KERMIT KERMIT HAMPTON INN HAMPT PORTLAND HYATT REGENCY DNTN HYATT DALLAS RESIDENCE INN RESID KATY COURTYARD DOWNTOWN COURT HOUSTON RESIDENCE INN RESID MIDLAND HOLIDAY INN GULF BEACH RESORT HOLID CORPUS CHR THE MAGNOLIA HOTEL X.STE HOUSTON BWEST SWISS INN OF PECOS BWEST PECOS CHAIN-O-LAKES LOG CABINS CLEVELAND COURTYARD RIVERWALK COURT SAN ANTONI EMBASSY SUITES EMBAS IRVING DOUBLETREE HOTEL DOWNTOWN DOUBL EL PASO SPRINGHILL SUITES BY MARRIOTT SPRNG AUSTIN SPRINGHILL SUITES SPRNG DALLAS DOUBLETREE BY HILTON DOUBL HOUSTON HYATT REGENCY HOUSTON HYATT HOUSTON HYATT PLACE CREED BEND HYATP SUGAR LAND HOMEWOOD SUITES HOMEW WICHITA FA GREAT WOLF: GRAPEVINE HOLIDAY EXPRESS HIEXP PORTLAND RESIDENCE WESTCHASE RESID HOUSTON RESIDENCE INN BY MARRIOTT RESID COLLEGE ST HOLIDAY INN EXPRESS HIEXP MIDLAND HAMPTON INN & SUITES HAMPT BIG SPRING SHERATON CONVENTION CTR SHERA ARLINGTON DOUBLETREE PLAZA DOUBL MIDLAND HILTON GARDEN INN HILTG AMARILLO RESIDENCE INN - SUGARLAN RESID STAFFORD HAMPTON INN & SUITES 50 HAMPT AUSTIN HOLIDAY EXPRESS HIEXP AMARILLO HOMEWOOD SUITES HOMEW HOUSTON

28 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ ALOFT DALLAS DOWNTOWN ALOFT DALLAS SPRINGHILL SUITES BY MARRIOTT SPRNG HOUSTON HAMPTON INN WILLOWBROOK HAMPT HOUSTON HOLIDAY INN AIRPOART HOLID AUSTIN DRURY PLAZA RIVERWALK DRURY SAN ANTONI HOMEWOOD SUITES-PLANO HOMEW PLANO HOMEWOOD SUITES HOMEW STAFFORD COURTYARD BY MARRIOTT COURT GRAPEVINE HILTON DFW HOTEL & EXEC HILTO GRAPEVINE HILTON GARDEN INN HILTG TYLER MARRIOTT HOTEL GREENSPOINT MARRT HOUSTON RESIDENCE INN WILLOWBROOK RESID HOUSTON INDIGO HOTEL HOUSTON INDIG HOUSTON HOLIDAY EXPRESS SUNSET V HIEXP AUSTIN HYATT REGENCY DFW HYATT GRAPEVINE COURTYARD BY MARRIOTT COURT AMARILLO HAMPTON INN & SUITES HAMPT AUSTIN HAMPTON INN HAMPT ROCKPORT HOLIDAY EXPRESS HIEXP HUNTSVILLE HOLIDAY EXPRESS & SUITES HIEXP LAKEWAY HILTON GARDEN INN DFW HILTG IRVING HAMPTON INN & SUITES HAMPT BUDA HAMPTON INN ROUND ROCK HAMPT ROUND ROCK HOMEWOOD SUITES BY HILTON HOMEW WACO SPRINGHILL SUITES SPRNG GRAPEVINE SOLANA MARRIOTT MARRT WESTLAKE BASIN STATION - BIG BEND BIG BEND N CASULO HOTEL AUSTIN COURTYARD LEGACY PARK COURT PLANO HOLIDAY EXPRESS & SUITES HIEXP AMARILLO BEST WESTERN DOWNTOWN BWEST HOUSTON CROWNE PLAZA FMR WHITEHALL CROWN HOUSTON OMNI BARTON CREEK (ESTIMATED) OMNI AUSTIN FAIRFIELD INN SOUTH FAIRF AUSTIN THE MAGNOLIA HOTEL DALLAS LA COPA INN RESORT SOUTH PADR RESIDENCE INN - WEST RESID HOUSTON HAMPTON INN HAMPT SAN ANGELO

29 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ HOLIDAY EXPRESS HIEXP CONROE RESIDENCE INN - ROUND ROCK RESID ROUND ROCK HAMPTON INN & SUITES HAMPT TOMBALL COMFORT SUITES COMFS SPRING HYATT HOUSE HYATH DALLAS RESIDENCE INN RESID RICHARDSON ISLA GRAND RESORT SOUTH PADR HOLIDAY EXPRESS HIEXP KENEDY STAYBRIDGE SUITES STAYB WEBSTER HILTON GARDEN INN HILTG HOUSTON FLYING L" GUEST RANCH L" BANDERA LA QUINTA INNS AND SUITE LAQUN AUSTIN MARRIOTT SUITES MARKET CENTER X.STE DALLAS HOLIDAY EXPRESS I&S HIEXP COLLEGE ST COURTYARD BY MARRIOTT COURT SAN ANTONI COURTYARD BY MARRIOTT COURT NEW BRAUNF HOLIDAY EXPRESS HOTEL HIEXP GRAPEVINE WYNDHAM GARDEN WOODWARD WYNDH AUSTIN HILTON GARDEN INN FRISCO HILTG FRISCO HYATT PLACE FMR AMERISUITES HYATP COLLEGE ST COURTYARD BLACKSTONE COURT FORT WORTH HILTON ANATOLE HOTEL HILTO DALLAS COURTYARD BY MARRIOTT COURT MIDLAND HILTON GARDEN INN HILTG CORPUS CHR COURTYARD BY MARRIOTT COURT IRVING COURTYARD BY MARRIOTT COURT FORT WORTH HAMPTON INN HAMPT BROWNWOOD HYATT HOUSE FMR SUMMERFIELD HYATH HOUSTON HOLIDAY EXPRESS HIEXP KATY COURTYARD BY MARRIOTT COURT ARLINGTON HOLIDAY EXPRESS MED CTR HIEXP HOUSTON STERLING REALTORS GALVESTON HOLIDAY EXPRESS GARTH RD HIEXP BAYTOWN EXTENDED STAY AMERICA EXTSA AUSTIN HOLIDAY INN RIVERWALK HOLID SAN ANTONI LA QUINTA INNS & SUITES LAQUN MARBLE FAL HOLIDAY EXPRESS & SUITES HIEXP CLUTE OVERTON HOTEL & CONF CEN LUBBOCK

30 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ HAMPTON INN & SUITES HAMPT EL PASO COURTYARD AUSTIN NORTH P COURT AUSTIN HOLIDAY EXPRESS HIEXP GALVESTON HILTON NASSAU BAY HILTO NASSAU BAY RESIDENCE INN CLEARLAKE RESID NASSAU BAY HOMEWOOD SUITES HOMEW CORPUS CHR HOMEWOOD SUITES CLEARLAKE HOMEW NASSAU BAY RENAISSANCE DALLAS HOTEL RENAS DALLAS COURTYARD BY MARRIOTT COURT KINGWOOD RESIDENCE INN RESID ARLINGTON HOLIDAY EXPRESS HIEXP BIG SPRING SPRINGHILL SUITES MARRIOTT SPRNG AUSTIN RESIDENCE INN BY MARRIOTT RESID SAN ANTONI FAIRFIELD INN & SUITES FAIRF AMARILLO HAMPTON INN HAMPT ODESSA HAMPTON INN MARBLE FALLS HAMPT MARBLE FAL HOLIDAY EXPRESS HIEXP ROCKPORT HOLIDAY EXPRESS & SUITES HIEXP AUSTIN COURTYARD BY MARRIOTT COURT SAN ANTONI HILTON HOTEL ARLINGTON HILTO ARLINGTON HOLIDAY EXPRESS & SUITES HIEXP FREDERICKS HILTON GARDEN INN HILTG SOUTH PADR STAYBRIDGE SUITES STAYB HOUSTON BEST WESTERN PLUS BWEST LAKE JACKS COURTYARD BY MARRIOTT COURT LUBBOCK FOUR POINTS FMR RADISSON 4 PTS HOUSTON LAKEWAY INN RESORT & CONFER LAKEWAY HAMPTON INN & SUITES HAMPT SAN MARCOS EMBASSY SUITES EMBAS DALLAS HOME 2 SUITES HOME2 AUSTIN STAYBRIDGE SUITES STAYB CORPUS CHR HOME 2 SUITES HOME2 KATY HOMEWOOD SUITES HOMEW BEAUMONT HOLIDAY EXPRESS FMR HAWTHOR HIEXP HUMBLE TOWNEPLACE SUITES TOWNP SHENANDOAH HOMEWOOD SUITES BY HILTON HOMEW HOUSTON TOWNPLACE SUITES FMR MAINST TOWNP CLUTE FAIRFIELD INN & SUITES FAIRF AUSTIN

31 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ EMBASSY SUITES HOTEL MARKET EMBAS DALLAS HAMPTON INN AND SUITES HAMPT KATY HILTON HOTEL GREENSPOINT HILTO HOUSTON SPRINGHILL SUITES SPRNG MIDLAND SPRINGHILL SUITES SPRNG AUSTIN RESIDENCE INN SPID RESID CORPUS CHR HILTON GARDEN INN HILTG SUGAR LAND HILTON GARDEN INN BUSH APT HILTG HOUSTON HOLIDAY EXPRESS FMR BWES HIEXP THE WOODLA HAMPTON INN GALLERIA HAMPT HOUSTON HAMPTON INN HAMPT HUMBLE ELEMENT HOTEL ELEMT IRVING HOMEWOOD SUITES HOMEW ALLEN DRURY INN AND SUITES DRURY AMARILLO HILTON GARDEN INN EL PASO HILTG EL PASO MARRIOTT LA FRONTERA MARRT ROUND ROCK ISLAND HOUSE COUNCIL CORPUS CHR CANDLEWOOD SUITES CANDL LAKE JACKS HOME2 SUITES HOME2 MIDLAND HAMPTON INN AND SUITES HAMPT PASADENA RESIDENCE INN - SANTA ROSA RESID SAN ANTONI COMFORT SUITES COMFS MIDLAND HOLIDAY INN CHANNELVIEW HOLID CHANNELVIE HILTON GARDEN INN HILTG NEW BRAUNF HAWTHORN SUITES FMR BAHI HAWTH CORPUS CHR EMBASSY SUITES EMBAS LAREDO COMFORT SUITES COMFS FORT STOCK HOLIDAY EXPRESS HIEXP ANDREWS DOUBLETREE FMR WYNDHAM DOUBL DALLAS HOLIDAY EXPRESS HOTEL HIEXP ODESSA RESIDENCE INN BUSH AIRPORT RESID HOUSTON HILTON GARDEN INN - RICHARDSON HILTG RICHARDSON HAMPTON INN I-35 NORTH HAMPT AUSTIN SPRINGHILL SUITES - WOOD SPRNG THE WOODLA HILTON GARDEN INN GATEWAY HILTG EL PASO HAMPTON INN AND SUITES HAMPT MISSOURI C THE WESTIN DFW FMR HARVEY WESTN IRVING HOMEWOOD SUITES MKT CTR HOMEW DALLAS

32 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ EL CONSTANTE CONDOMINIUM CORPUS CHR WACO HILTON HILTO WACO HAMPTON INN & SUITES HAMPT CORPUS CHR HAMPTON INN & SUITES HAMPT EL PASO BEST WESTERN PLUS NORTH BWEST ODESSA RESIDENCE INN RESID ADDISON HILTON GARDEN INN HILTG BRYAN LAJITAS RESORT AND SPA LAJITAS LA QUINTA INN & SUITES LAQUN MIDLAND TOWNPLACE INN COMPAQ TOWNP HOUSTON HAMPTON INN & SUITES I20 HAMPT ARLINGTON CANDLEWOOD SUITES CANDL FORT STOCK RESIDENCE INN RESID ODESSA HAMPTON INN & SUITES HAMPT WACO HAMPTON INN HAMPT FRISCO STAYBRIDGE SUITES NORTH STAYB AUSTIN HILTON RESORT FMR RADISSON HILTO SAN ANTONI STAYBRIDGE LAS COLINAS STAYB IRVING HOLIDAY INN FMR RADIS/HILTON HOLID AUSTIN ALOFT LAS COLINAS ALOFT IRVING BEST WESTERN SUITES BWEST MIDLAND HOLIDAY EXPRESS HIEXP EL PASO HOLIDAY INN / SPORTING NEWS HOLID HOUSTON COURTYARD BY MARRIOTT COURT EL PASO MARRIOTT DFW SOUTH MARRT FORT WORTH BEST WESTERN PLAZA MED C BWEST HOUSTON ROYAL SONESTA FMR INTERCONTI SONES HOUSTON HAMPTON INN & SUITES HAMPT MIDLAND HOLIDAY INN AND SUITES HOLID HOUSTON DOUBLETREE HOTEL AUSTIN DOUBL AUSTIN HOLIDAY EXPRESS HIEXP CEDAR PARK COURTYARD NASSAU BAY COURT NASSAU BAY OMNI COLONNADE I-10W OMNI SAN ANTONI HOLIDAY EXPRESS FM 620 HIEXP AUSTIN HILTON GARDEN INN HILTG KATY TOWNPLACE SUITES FMR MAINST TOWNP HOUSTON HOLIDAY INN EXPRESS & SUITES HIEXP LUBBOCK COURTYARD BY MARRIOTT COURT CORPUS CHR

33 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ HOLIDAY EXPRESS HOTEL HIEXP SAN ANGELO MARRIOTT WESTCHASE MARRT HOUSTON HAMPTON INN HAMPT KERRVILLE BEST WESTERN FMR CLARION BWEST AUSTIN SLEEP INN & SUITES SLEEP DRIPPING S RESIDENCE INN LAS COLINAS RESID IRVING MARRIOTT EL PASO MARRT EL PASO SPRINGHILL SUITES SPRNG HOUSTON HOLIDAY INN TOWN LAKE HOLID AUSTIN DOUBLETREE EMILY MORGAN DOUBL SAN ANTONI FAIRFIELD INN FAIRF MIDLAND ALOFT PLANO ALOFT PLANO LE MERIDIEN FMR PRAVA/HILTON X.STE DALLAS MARRIOTT GOLF RESORT MARRT FORT WORTH FAIRFIELD INN & SUITES FAIRF AUSTIN HAMPTON INN AND SUITES HAMPT ABILENE SHERATON WEST SHERA HOUSTON BEST WESTERN PLUS BWEST PORTLAND BEST WESTERN SEAWALL INN BWEST GALVESTON TOWNPLACE SUITES TOWNP HOUSTON HAMPTON INN HAMPT CORPUS CHR LA QUINTA INN & SUITES LAQUN FREDERICKS HAMPTON INN HAMPT PEARSALL HOMEWOOD SUITES HOMEW EL PASO HOMEWOOD SUITES BY HILTON HOMEW COLLEGE ST HOMEWOOD SUITES HOMEW ODESSA HILTON GARDEN INN PEARLAND HILTG PEARLAND HAMPTON INN HAMPT LUBBOCK RESIDENCE INN GATEWAY WEST RESID EL PASO MARRIOTT HOTEL ENERGY CENTER MARRT HOUSTON THE LIGHT HOUSE INN ROCKPORT HYATT HOUSE SUITES HYATH ADDISON COURTYARD LAS COLINAS COURT IRVING HOME2 SUITES HOME2 FRISCO RESIDENCE INN DFW AIRPOR RESID IRVING SPRINGHILL SUITES BROOKHOLLOW SPRNG HOUSTON HOMEWOOD GREENVILLE HOMEW DALLAS HOLIDAY INN WESTCHASE HOLID HOUSTON

34 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ COURTYARD MARRIOTT LUFKIN COURT LUFKIN TOWNE PLACE SUITES TOWNP FORT WORTH SPRINGHILL SUITES SPRNG KATY HAMPTON INN HAMPT SEABROOK RENAISSANCE RICHARDSON RENAS RICHARDSON FAIRFIELD INN AND SUITES FAIRF AUSTIN HILTON GARDEN INN HILTG ODESSA TOWNEPLACE SUITES MIDLAND TOWNP MIDLAND HILTON HOTEL GRANITE PKW HILTO PLANO HOME2 SUITES BY HILTON HOME2 AUSTIN HAMPTON INN & SUITES HAMPT CONROE COURTYARD BY MARRIOTT COURT PEARLAND RESIDENCE INN AT CASCADE RESID THE COLONY EMBASSY SUITES HOTEL 95 EMBAS SAN ANTONI RESIDENCE INN 1604 EAST RESID SAN ANTONI RESIDENCE INN RESID PLANO ALOFT CENTRAL PARK MALL ALOFT SAN ANTONI HAMPTON INN HAMPT HOUSTON HAMPTON INN HAMPT KENEDY COURTYARD - WESTOVER HILLS COURT SAN ANTONI NYLO LOFT HOTEL NYLO IRVING OMNI PARKWEST FMR DBLTREE OMNI FARMERS BR HOMEWOOD SUITES BY HILTON HOMEW MCALLEN HOLIDAY EXPRESS HIEXP BROWNWOOD HAMPTON INN & SUITES HAMPT DE SOTO HILTON GARDEN INN HILTG FORT WORTH MARRIOTT BUSH AIRPORT MARRT HOUSTON INN ON BARONS CREEK FREDERICKS CANDLEWOOD SUITES CANDL THE WOODLA HAMPTON INN & SUITES HAMPT LONGVIEW HAMPTON INN HAMPT VAN HORN MARRIOTT PLAZA HOTEL MARRT SAN ANTONI COMFORT INN COMFO INGLESIDE HOMEWOOD SUITES SAN ANTONIO HOMEW SAN ANTONI CANDLEWOOD SUITES CANDL MIDLAND HOLIDAY EXPRESS & SUITES HIEXP CORPUS CHR HILTON GARDEN INN HILTG ABILENE HOLIDAY EXPRESS HOTEL HIEXP BUDA

35 THE TOP 500 HOTELS OF 2ND QUARTER RANKED BY This Last Hotel Name Brand City Zip Code Rooms Previous $ Current $ CANDLEWOOD SUITES CANDL ODESSA HAMPTON INN & SUITES HAMPT SAN ANTONI HILTON GARDEN INN ALLIAN HILTG FORT WORTH HOLIDAY EXPRESS & SUITES HIEXP WOLFFORTH RESIDENCE INN ALAMO RESID SAN ANTONI

36 Source Strategies, Inc. Endorsed by the Texas Hotel & Lodging Association SERVICES AVAILABLE FROM SOURCE STRATEGIES Feasibility Studies. Bankers trust Source s hotel feasibility studies (more than 100 generated by Source Strategies annually). Source is the recognized expert on hotel branding and its studies of proposed hotels are fast, accurate and inexpensive. Hotel Performance Factbook. Place every Texas hotel s revenue and occupancy numbers on your desk, hotel-by-hotel, and compared to last year. Sub-totals are calculated for every zip-code, city and metro. Factbooks are available with both 3-month/quarterly and 12-month data, and are mailed. Hotel Brand Report Newsletter. The ONLY source that tracks how each major brand is performing, as well as product and price segments. Learn which brands are winning! It also covers the latest performance of all the Texas metros. Published electronically every quarter. Data Service for Appraisers Source Strategies provides comprehensive histories of Metro areas, market sectors and subject properties for revenue line development. Data available from 1980 to present. See a sample on our website. Legal Services Comprehensive lodging research and Expert Witness Testimony Specialists on the effects of each hotel brand to income and value. Excellent projections. The ability to determine Business Value of your brand and hotel. We have the records of what happens to revenue when brands change.and so the intangible value of each brand. Over time, this developing product could revolutionize real estate valuation. See the Appraisal Journal of the Appraisal Institute: New Option in Hotel Appraisal: Quantifying the Revenue Enhancement Value of Hotel Brands. Summer Call or check out our website: SourceStrategies.Org 36