NAW AEC Summer Association Executives Council Meeting Dana Point, California

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1 NAW AEC Summer Association Executives Council Meeting Dana Point, California Market Trends

2 Current Conditions Consolidation Unprecedented consolidation is creating mega-brands 2017 ASSOCIATED LUXURY HOTELS

3 Current Conditions Consolidation Sales staff-to-hotel ratios are unmanageable. Brand sales teams simply cannot know their own properties anymore. 30 Brands in 100+ countries with 5,700 hotels 19 Brands in 95 countries, with 4,100 hotels 12 Brands in 100 territories and countries with 5,000 hotels 2017 ASSOCIATED LUXURY HOTELS

4 Current Conditions Consolidation Our model works best for both the Meeting Professional and the Member hotels. 1 brand in 61 countries with over 250 hotels Global Sales Ratio 4: ASSOCIATED LUXURY HOTELS

5 Market Trends: Buyer Insight Loews Atlanta Hotel ATLANTA, GEORGIA

6 Market Update Sources Market Update Focus on Upper Upscale & Luxury Hotels Market Specifically Buyer & Seller Trends Smith Travel Research (STR) ALHI Survey Results PKF Hospitality Research Market Trends Moody s Economic Analytics

7 Trailing Market Trends 2016 Buyers Trends & Demand Results Number of Programs Booked vs. Last Year Same Number Programs vs. This Time Last Year 42% 51% More Programs vs. This Time Last Year Less Programs vs. This Time Last Year 7%

8 Trailing Market Trends 2016 Buyers Trends & Demand Results Did BQT. / F&B Spend Increase? (Per Group R/N Comparison) 15% >10% 67% 1-5% 18% 6-10% 66% Yes 34% Same

9 Future Market Trends 2017 Buyers Trends & Demand Indicators Number of Expected Programs to be Booked in 2017 vs Will Increase # of Meetings 50% Same # of Meetings 45% 5% Will Expect Less INCREASED SAME LESS TIMING: 65% Will be Held the Same as % Will Book Earlier 7% Will Have a Short Time Frame to Book

10 Future Market Trends 2017 Buyers Trends & Demand Indicators 2017 Outlook on Booking Environment 7% Buyer s Market Seller s Market 80% 13% Neutral Market

11 Future Market Trends 2017 Buyers Trends & Demand Indicators 2017 Outlook on Incentive Travel Programs More in % Less in % 76% Same as 2016

12 Market Trends: Hoteliers Representative of Upper Upscale & Luxury M.I.C.E. Market ISLAND HOTEL NEWPORT BEACH NEWPORT BEACH, CALIFORNIA

13 Trailing Market Trends 2016 Hoteliers Trends & Performance 2016 Hotels YE Performance Update Occupancy ADR $ 100% 75% 81% Same or Greater to LY 94% Same or Greater to LY 50% 25% (23% Same) 0% Most % ( 5% Same)

Future Market Trends 2017 + 2018 Hoteliers

14 Future Market Trends Hoteliers Trends 2017: Pre-sold Group Business vs. STLY 2018: Pre-sold Group Business vs. STLY for % 16% 69% 84% Same or More R/N Less R/N Same or More R/N Less R/N Source: Associated Luxury Hotels International Survey, October 2016

Say: Buyers Say: 8% Buyers 28% Sellers 7% Buyer s

15 Future Market Trends Hoteliers Market Indicators Hoteliers Perspective on Market Conditions Sellers Say: Buyers Say: 8% Buyers 28% Sellers 7% Buyer s Market 13% Neutral Market 64% Neutral 80% Seller s Market

16 Market Trends: Industry Data The Cloister at Sea Island SEA ISLAND, GEORGIA

17 Future Market Trends National Market: Short Term Hotels Snapshot on 2017 Occupancy UP 3.5% Above Long Running Average of 70% ADR UP 4.0% vs. Past 4 Quarters RevPar Same vs. Past 4 Quarters Supply UP 3.2% vs. 2.2% LY; Under 2.08% Long Running Average Demand UP at 2.4% ; to Long Term Average

18 Market Trends : Industry Data U.S. Supply Change - Luxury Hotels Long Run Average 4. Source:CBRE Hotels America s Research - Hotel Horizons Custom Forecast March - May 2017 Edition.

19 Market Trends : Industry Trends for Luxury Hotels Luxury Hotels Future Forecast Long Run Average F 2017F 2018F 2019F 2020F Supply 4.4% 1.1% 0.5% 2.2% 3.2% 3.7% 4.1% 4.1% Demand 4.9% 2.0% 1.2% 1.8% 2.4% 3.4% 2.8% 4.7% Occupancy 70.0% 74.9% 75.3% 74.9% 74.3% 74.1% 73.2% 73.6% ADR 3.9% 5.3% 4.7% 1.9% 3.3% 3.5% 2.9% 2.9% RevPAR 4.6% 6.2% 5.5% 1.5% 2.5% 3.2% 1.7% 3.4% Record Source:CBRE Hotels America s Research - Hotel Horizons Custom Forecast March - May 2017 Edition.

20 Navigating The Market Château Élan BRASELTON (ATLANTA), GEORGIA

21 Navigate Market Conditions with GSO M.I.C.E. Inventory Compression Remains Strong Likely continue through 2020 Demand for M&I Continues to Grow More programs from corporate & association Growing at a compounded pace to supply Booking Programs Earlier Consider marketing conditions/forecasts Laws of supply & demand Tailor RFP s accentuating business value / priorities Communicate Flexibility with RFP Prioritize meeting space requirements Consider alternate ALHI locations for Luxury on Sale value Prioritize concessions wish list requirements

22 ALHI News Streamsong Resort STREAMSONG, FLORIDA

ALHI Glance Reliable GSO for over 30 years: Corporate & Association MICE Specialist Exclusive "Invite-Only Portfolio Worldwide: 250+ Hotels & Resorts Plus, Alliance Members for M&I 148 18 106 in the

23 ALHI Glance Reliable GSO for over 30 years: Corporate & Association MICE Specialist Exclusive "Invite-Only Portfolio Worldwide: 250+ Hotels & Resorts Plus, Alliance Members for M&I in the U.S. Caribbean, Bahamas Bermuda & Mexico Hotels throughout EMEA & APAC Luxury Cruise Ships Destination DMC s Worldwide GSO dues funded & authorized by Member: Contractually providing cost-free, best value GSO sales service LA Cantera Resort & Spa SAN ANTONIO, TEXAS

24 ALHI s Passion to Serve Global Sales Organization since 1986 with over 70 Sales Professionals in 21 offices A commitment to dedicated sales for our prestigious Members and our valued customers Experienced and knowledgeable guidance for site-specific solutions Save time and money with personalized onecall access and sales support 2017 ASSOCIATED LUXURY HOTELS

ALHI News Worldhotels 24 independent luxury-level meeting &

Destinations include Maldives, Buenos Aires, London, Dublin,

ALHI s GLA now offers over 100 Meeting & Incentive properties

Royal Garden Hotel London, England Duin & Kruidberg Country

25 ALHI News Worldhotels 24 independent luxury-level meeting & incentive focused hotels and resorts outside of North America Destinations include Maldives, Buenos Aires, London, Dublin, Rome, Hong Kong and more! ALHI s GLA now offers over 100 Meeting & Incentive properties in Europe, Asia, the Middle East, Africa and South America Royal Garden Hotel London, England Duin & Kruidberg Country Estate Santpoort, Netherlands Harbour Grand Kowloon Hong Kong, China Grand Hotel de la Minerve Rome, Italy

26 ALHI News Our Members Over 250 Options Including: Newest Member Destinations The Resort Collection Seattle, WA Atlanta, GA Atlantic City, NJ Destin, FL Memphis, TN Farmington, PA Orlando, FL Cape Neddick, ME Washington, DC

27 ALHI News Our Members Over 250 Options Including: Newest Member Destinations The Resort Collection Scottsdale, AZ Carlsbad, CA Fish Camp, CA Amelia Island, FL Louisville, KY San Juan, PR Dublin, Ireland London, England Birmingham, England

28 ALHI News Our Members Over 250 Options Including: Newest Member Destinations The Resort Collection Alexandria, Scotland Havana, Cuba Kuala Lumpur, Malaysia

29 Thank You

2019 By the Numbers: Market Analytics

2019 By the Numbers: Market Analytics JP Ford, CHB, ISHC, Senior Vice President, Global Director of Business Development 2 The State of the US Construction Pipeline Fast Facts The latest US Construction