Guest Services, Inc. and Subsidiaries SUSTAINABILITY 2016 REPORT

Guest Services, Inc. and Subsidiaries SUSTAINABILITY 2016 REPORT

2016 Sustainability Report 3 Guest Services sustainability program, ourplanet, is designed to encourage employees to think about their actions as affecting their whole environment, both at work, and outside of work. The ourplanet program focuses on the three Rs of environmental sustainability: Reducing consumption when possible Reusing items if possible Recycling or composting items that cannot be reused or saved through reducing use. SM Most at-work initiatives focus on how employees actions affect their customers, or their company. The ourplanet program goes further by increasing employee awareness that their actions at work, whether in conserving energy, reducing food waste and other resource use, or recycling, can affect every aspect of their lives, and their families lives. We invite you to read below about the 2016 ourplanet program successes at our more than 127 locations.

4 2016 Initiatives REDUCE OUR IMPACT ON THE ENVIRONMENT Charging Stations Two electric car charging stations were installed at Guest Services DoubleTree Suites by Hilton in 2016. These enabled any electric vehicle to recharge during the owner s stay at the DoubleTree. Guest Services expects to add car charging stations at the Bear Mountain Inn in the near future. Compressed Gas Vehicles DoubleTree Suites by Hilton Naples Guest Services produce division, Lancaster Foods, began using trucks powered by compressed natural gas (CNG) in 2013. In 2014, two more CNG vehicles were added to Lancaster s fleet. In 2015, Guest Services operations at Mt. Rainier National Park acquired five propane gas powered vehicles. These are used to shuttle employees and supplies from the Company s warehouse outside the Park to Paradise Lodge, the National Park Inn, and Sunrise Lodge, which Guest Services operates inside the Park. CNG and propane-powered vehicles cut carbon monoxide emissions by more than 90 percent compared with conventionally-powered trucks. Nitrogen oxide emissions and hydrocarbon emissions are reduced by more than 50 percent; these vehicles produce fewer carcinogenic pollutants, and almost no particulate matter.

LED Lighting Lancaster Foods has installed almost 500 LED lights throughout its 240,000 square foot refrigerated warehouse, at a cost of more than $286,000. These energy-efficient lights will reduce Lancaster Foods electric consumption by approximately 2.1 million kilowatt hours each year a reduction of about 70 percent over conventional lighting. 5 AWARD FOR CONSERVING ENERGY THE A.C.E. PROGRAM Guest Services has a goal of reducing energy consumption by 2 percent every year. The Award for Conserving Energy (A.C.E.) is given quarterly to those Guest Services units that have reduced energy consumption at least 2 percent below the same quarter of the prior year. The unit with the greatest reduction of consumption for an entire year receives the annual A.C.E. Award, which includes a cash bonus for every employee in the unit. This award program began tracking energy consumption statistics in 2008. The annual A.C.E. award winner for 2016 was the Thomas Jefferson Memorial Food Kiosk, which had a 26.2 percent decrease in electrical consumption below the prior year. This decrease was primarily achieved by replacing conventional lighting with LED lighting in the Kiosk. THOMAS JEFFERSON MEMORIAL FOOD KIOSK Columbia Island - Food 2015 Winner Thomas Jefferson Memorial Food Kiosk Non-Carbon Dioxide Electricity Sources Guest Services seeks to purchase electricity for its heavy electricity-consuming units from non-carbon dioxide buying sources. Guest Services buys over 21 percent of its electricity from either renewable or nuclear energy sources, substantially reducing the amount of carbon dioxide released into the atmosphere compared to conventional electricity-generating sources. for The Largest Annual Decrease in Electricity Consumption for The Largest Annual Decrease in Electricity Consumption

6 ELECTRONIC RECORDS PAPER-SAVING SYSTEMS Guest Services initiatives over the past five years have lowered paper consumption by more than 750,000 sheets a year. Paperless Check-Out The DoubleTree Suites by Hilton in Naples, Florida uses a paperless checkout system, which saves an additional 14,000 sheets a year. Produce Distribution At our Lancaster Foods division, most documents are on their shared computer drive, thereby reducing printing by approximately 7,500 sheets annually. More electronic systems over paperless ones Checklists The District Manager checklist is in electronic format, saving more than 7,000 sheets of paper a year. Job Applications Guest Services saves more than 6,200 sheets of paper annually by eliminating paper job applications in favor of electronic applications. Sustainability Report All Guest Services units submit their annual sustainability results, i.e., recycling and resource reduction amounts, on an electronic form, which automatically tallies the results from all units. Record Keeping At the Rock Creek Horse Center, health records for the horses, and for lessons, are now being kept electronically.

Use of Recycled Paper Guest Services uses 30 percent recycled content paper whenever possible. In 2016, more than 3.56 million sheets of this recycled paper were used, reducing the demand for the resources used in producing virgin paper. Thirty percent recycled paper saves 7 trees per ton of paper compared to virgin paper; it also consumes ten percent less energy and ten percent less water to produce than virgin paper. Guest Services continues to increase its use of 100 percent recycled disposable napkins and bathroom paper towels. These purchases save more than 50 percent of the energy used in producing virgin paper products. Packaging is also reduced, in 2016 saving the equivalent of 762 trees, and 4.1 tons of plastic. 7 Produce Distribution Packaging Guest Services produce distribution division, Lancaster Foods, uses reusable plastic containers for moving leafy vegetables. The switch from cardboard cases saves 11,000 cardboard cases a week, eliminating the need for more than 2,000 tons of cardboard cases a year. Sustainability Progress Report The DoubleTree Suites hotel tracks energy and water consumption to test the efficiency of its sustainability programs. This program at the DoubleTree reduces gas and electric consumption by almost 11 percent, and reduces water consumption by almost 38 percent over the prior years. PURCHASING Purchasing environmentally-friendly products reduces demands on the environment. For each category of purchasing (for example: uniforms, cleaning supplies, equipment or food products), Guest Services has a Managed Order Guide (MOG), which functions as a catalog for the operating units. By company policy, units are encouraged to purchase those items that are identified in the MOGs as environmentally-friendly. The MOGs are continually updated to maximize the number of environmentally-

8 friendly items available, and those items are highlighted for easy reference. 66 percent of Guest Services units currently participate in this environmentally-friendly purchasing program. One example of how the MOG enhances sustainable practices is the EcoSmart program. Guest Services participates in a paper and disposable product reduction EcoSmart program utilizing Georgia- Pacific products. The EcoSmart program has reduced total waste, carbon dioxide production, and fossil fuel emissions by 59.5% below the amounts generated by using conventional paper and disposable products. Another example is the MOG for cleaning supplies, which promotes the use of Ecolab s Apex cleaning system and products in all units. The Apex products use non-caustic chemicals, and 90 percent less packaging material than conventional dishwashing products. Guest Services use of the Apex system and products produced the following reductions in 2016 (versus use of conventional dishwashing products): 19,056 pounds less plastic waste in cleaning product packaging; 539 fewer gallons of water consumed; 7,122 fewer therms of natural gas consumed; 112 tons less carbon dioxide emitted. HOTEL AMENITIES Guest Services lodging operations at Mount Rainier National Park have switched from guest amenities manufactured overseas to ones made in Washington State, reducing fuel consumption in transportation. This product, manufactured by a Native American-owned company, is made with all-natural ingredients. One hundred percent of amenities at this location, over 200 cases, were locally sourced in 2016.

Top: Stock room and Guest Room at Mount Rainier; Bottom: Mount Rainier Paradise Inn 9

10 CULINARY DEVELOPMENT DEPARTMENT Sustainable Food and Cooking Under the direction of our executive chefs, Guest Services is reducing the environmental impact of the company s food service operations. In 2016, we: Continued implementing our Sustainable Seafood program. We use the Marine Stewardship Council s guidelines to offer our guests quality sustainable seafood. Through agreements with ProFish, we not only have access to sustainable seafood, but are able to support their Local Abundance education efforts, as well as their GreenFish Projects that help with the Carbon FishPrint System. In 2016, we served more than 35 tons of sustainable seafood to our guests. Implemented our Dolphin Safe canned-tuna program where we utilize only Albacore and Tongol tuna that are harvested in a dolphin-safe manner. More than 19 tons of packaged sustainable tuna were served by the company in 2016. Purchased and prepared more than 485 tons of locally-raised poultry for our customers. Used only trans-fat free cooking oil, more than 157 tons in 2016, of which almost 45 percent is recycled after use. Expanded our Go Local program with emphasis on seasonal local produce. Through Pro Act, we now have seasonal access to farms throughout Virginia, New Jersey, Pennsylvania, Maryland and Florida. Sold more than 90,000 gallons of growth-hormone-free dairy products. Continued to expand our local pork program, with 49 percent of pork products purchased locally. Served coffee from the Rainforest Alliance, which assures that coffee is grown and harvested in a manner that is friendly to the ecosystem. Served only cage-free eggs, with over 214 tons used in 2016. Continued to train our cooks and kitchen staff to turn on ranges, ovens, and other equipment only on an as needed basis to reduce energy usage.

Bottled Water Guest Services installed three hydration stations at Mt. Rainier National Park. Over 31,000 bottles were filled at these stations in 2016, reducing disposable bottle usage. The DoubleTree Suites by Hilton in Naples, Florida, which is owned and operated by Guest Services, began a program of using refillable glass bottles for both still and sparkling water for meetings held at the hotel, instead of providing disposable plastic bottles. This program annually eliminates almost 1,000 plastic bottles from the waste stream. 11 REUSE TO AVOID GENERATING WASTE Lodging the Clean the World Program Much of the illness in poorer areas of the world results from lack of basic sanitation articles, like soap for hand-washing. Clean the World is a national organization that accepts donations of used guestroom amenities (primarily soap and shampoo), and after sanitizing the products, sends them to people around the world who are unable to afford these basic personal hygiene items. Guest Services lodging facilities joined this program in June 2010. In 2016, our operations donated more than 3,200 bottles and soap bars to clean the world. Furniture Guest Services lodging operations donate used furniture to local homeless shelters. In 2016, over 3.5 tons of furniture was donated in this program. Linens and Blankets Guest Services lodging operations donate gently used linens to local homeless shelters. Over 1,200 sheets, blankets, and towels were donated in 2016, as well as dozens of mattresses.

12 RECYCLING TO PRESERVE RESOURCES Composting Guest Services food service operations at Mount Rainier began separating food waste for composting in 2010. The food waste is taken off-site and turned into soil-enhancing material that is sold to area farms. Other Guest Services units have begun their own composting efforts, both on-site and off-site. More than 18.9 tons of food waste was composted by Guest Services in 2016, creating approximately 11 tons of nutrient-rich soil. Recycling Guest Services began Company-wide recycling in 2009 with the assistance of our waste removal vendor. Companywide, across the various divisions and units, almost 86 tons of waste was sent for recycling in 2016. Conventional Recycling Many of Guest Services operations have long-standing programs of recycling paper, glass, cardboard, plastic and aluminum. In 2016, more than 60 tons of paper, more than 9.3 tons of metal, and 25 tons of glass and plastic were collected and sent for recycling. Total conventional recycling companywide equaled 73.9 tons. Corrugated Cardboard Lancaster Foods recycled corrugated cardboard packaging at the rate of 10,000 boxes a week, more than 200 tons of cardboard a year.

Recycling to Animal Feed Lancaster Foods out-of-date produce is converted to animal feed. In 2016, more than 6,000 tons of produce was recycled in this manner. 13 Cooking Oil Guest Services recycled almost 63.8 tons of cooking oil in 2016. The recycled cooking oil is processed and converted to either biodiesel or animal feed, depending on market demand at the time of processing. Horse Manure Recycling Guest Services operates the Rock Creek Park Horse Center, which houses approximately 60 horses throughout the year. The manure generated by these horses is used to enrich the soil at athletic fields. In 2016, Guest Services sent more than 3,465 cubic yards of manure and wood shavings for soil enhancement. The Horse Center also uses sand mixed with ground up recycled sneakers to replace the footing in its indoor horse-riding ring. Manure Shed at Rock Creek Park Horse Center Electronic Equipment Guest Services operates more than 130 units, all with computers, cash registers, and many with other types of electronic equipment, all of which is gradually replaced. Our environmental policy 302 requires that all such waste be recycled at the end of its useful life. We utilize an organization called Turtle Wings for this effort. More than 55 pieces of electronic equipment were recycled in 2016, including copy machines, computers, servers, and fax machines.

14 Lamptracker System In late 2011, Guest Services began utilizing Waste Management s Lamptracker system for tracking the recycling of fluorescent lights, batteries, and disposable items containing potentially hazardous wastes. In 2016, 30 of Guest Services units participated in this program, recycling 291 pounds of batteries, light bulbs, and fluorescent light ballasts. Guest Services also has developed a companywide program to recycle printer ink cartridges. Guest Services recycled 305 pounds of printer cartridges in 2016. Changing and recycling the printer cartridges on an office printer.

Top Left: Guest Services Clean-A-Park Day; Top Right: Lancaster Foods Salad Production Bottom Left: DoubleTree Suites by Hilton Hotel Naples; Bottom Right: Refillable Glass Bottles at DoubleTree Suites 15

16 Other Environmental Initiatives On-Site Gardens Guest Services encourages our units to develop unit-located herb and vegetable gardens. These range from potted herbs at smaller units in office buildings, to large vegetable plots in suburban and rural units. Going local provides our customers with fresher and more nutritious foods, encourages employees to grow produce at home, and connects everyone with their environment. This initiative has spread to more than a dozen units. Apiary Guest Services Bear Mountain operations (lodging and food service), in cooperation with a local beekeeper, kept six beehives at the unit, housing approximately 360,000 bees Apiary at Bear Mountain Inn Clean-a-Park Beginning in 2009, Guest Services employees volunteered on Earth Day to clean trash from various National Parks in Washington, DC. The program quickly spread to other Guest Services divisions. In 2016, Guest Services employees worked to clean parks at Jones Point Park, Alexandria, Virginia, and in Collier County, Florida. In Collier County, the Doubletree Suites has joined the adopt a shore program, which designates a beach the Hotel staff will clean four times each year. The combined efforts of these collections removed sixty-eight 40-gallon bags of trash from public parks. Adopt a Shore Program

Organic Produce Guest Services Lancaster Foods subsidiary is one of the largest distributors of organic produce to supermarkets in the mid- Atlantic region. More than $16,750,000 of organic produce was sold and distributed in 2016. 17 Clean Marinas The four marinas Guest Services operates are certified as Clean Marinas for following the best environmental practices in vessel maintenance and storage of chemicals. Training The Guest Services environmental management system video and related materials are being shown to all current and newlyhired employees: 329 employees received this training in 2016. Since 2011, employees performance reviews have a separate category where every employee is rated as to the degree to which they support environmental sustainability in Guest Services operations. Lancaster Foods Historic Newton Boathouse Workplace Giving Guest Services voluntary program for employees to donate to charity includes Earth Share, an umbrella organization which supports varied environmental initiatives, as one of the designated recipients of this charitable effort.

18 2016 Awards and Certifications National Park ISO Certifications Guest Services operations at Mount Rainier maintained the International Standard s Organization (ISO) 14001 certification and the ISO 18001 certification in 2016. These certifications recognize recipients as adhering to practices and record-keeping to continually improve the sustainability of operations. Mount Rainier was the first Guest Services facility to be ISO 14001 and OHSAS 18001 certified, and serves as a model for other Guest Services operations. The parks of the National Capital Region have joined Mount Rainier in meeting these international standards for sustainable operations. DoubleTree Hotel ISO Certification In 2016, the DoubleTree Suites achieved a Three-Palm rating with the Florida Green Lodging Program. This Guest Services hotel is also ISO 14001 certified as adhering to practices and record-keeping that continually improve the sustainability of its operations. In addition, this hotel was recognized by tripadvisor as a Green Leader.

19 Echo Bluff State Park, Missouri Summary Guest Services continued to broaden the scope of its sustainability efforts in 2016. As you have read in this report, Guest Services reduced consumption of materials and energy in numerous ways throughout the company. In addition, the Company instituted programs to reuse and recycle materials where possible, helping the environment as well as benefiting local charitable organizations and their clients. We were recognized for our sustainability efforts at several locations. We expect 2017 to witness continued progress toward the goal of fully-sustainable operations.

Inside Cover (Left to Right): Echo Bluff State Park (Eminence, MO), Key Bridge Boathouse (Washington, D.C.) The 2016 Sustainability Report was printed on 100% post-consumer recycled paper. 3055 Prosperity Avenue Fairfax, Virginia 22031 703.849.9300 GuestServices.com info@guestservices.com