STR Analytics STR Global

11001 W 120th Ave, Suite 250 Blue Fin Building

Broomfield, CO 80021 110 Southwark Street
USA London SE1 0TA
Phone: +01 (615) 824 8664 Phone: +44 (0) 20 7922 1930

[Link] [Link]
HOST@[Link] TRENDS@[Link]

Complimentary HOST Participant Report

Sample Date CSep 01, 2016
Year End 2015
Tab
Table of Contents 1
Summary 2
Global Participation Report
Definitions

SA 3
4

M
PL
E
 STR Code: Props: 187 Props: 19
Rooms: 225 Rooms: 41,064 Rooms: 3,766
Occupancy: 86.0% Occupancy: 70.6% Occupancy: 68.9%
Subject Property ADR: 134.56 Country ADR: 116.97 Market ADR: 111.54
RevPAR: 110.36 RevPAR: 82.56 RevPAR: 76.85

STR Analytics & STR Global TrevPAR: 145.26 TrevPAR: 121.57 TrevPAR: 119.02
2015 Complimentary HOST Report GOPPAR: 65.25 GOPPAR: 39.93 GOPPAR: 40.15
Owner:
Management:
Currency: European Euro Ratio to Sales1 Amount Per Available Room Amount Per Occupied Room Night

Property Country Market Property Country Market Property Country Market

REVENUE % % %
Rooms 69.5 % 67.7 % 73.1 % 17,675 30,021 19,288 77.45 116.97 92.35
Food 14.0 16.8 15.3 3,561 7,453 4,051 15.60 29.04 19.40
Beverage 9.8 7.4 6.6 2,490 3,264 1,735 10.91 12.72 8.30
Other Food & Beverage 2.8 3.7 2.6 721 1,624 686 3.16 6.33 3.28
Other Operated Departments 3.8 3.3 2.1 962 1,483 565 4.22 5.78 2.71
Rentals & Other Income 0.1 1.2 0.3 16 528 70 0.10 2.10 0.30
TOTAL REVENUE 100.0 % 100.0 % 100.0 % 25,425 44,373 26,394 111.41 172.89 126.37

sa
DEPARTMENTAL EXPENSES
Rooms 32.0 % 30.0 % 29.4 % 6,710 9,015 8,113 24.77 35.12 32.77
Food & Beverage 82.9 79.3 76.6 2,396 9,791 10,117 8.85 38.15 40.86
Other Operated Departments 17.7 47.9 43.3 88 711 969 0.32 2.77 3.91
TOTAL DEPARTMENTAL EXPENSES 37.8 % 44.0 % 44.2 % 9,194 19,516 19,199 33.94 76.04 77.54

DEPARTMENTAL PROFITS
Rooms 62.0 % 64.9 % 65.7 % 8,498 21,694 16,519 36.69 85.52 66.05

m
Food & Beverage 20.5 5.2 1.3 1,723 833 209 7.44 3.28 0.84
Other Operated Departments 94.8 46.4 56.0 1,225 706 688 5.29 2.78 2.75
TOTAL DEPARTMENTAL PROFITS 48.9 % 46.4 % 42.3 % 11,446 23,885 18,241 49.42 94.16 72.93

UNDISTRIBUTED OPERATING EXPENSES

Administrative & General 7.5 % 8.4 % 7.8 % 1,817 3,711 3,408 6.71 14.46 13.76
Marketing (excluding Franchise Fees) 4.5 5.6 5.4 1,090 2,475 2,357 4.02 9.64 9.52
Franchise Fees (royalty and marketing) - 0.3 0.1 0 129 63 0.00 0.50 0.26
Utility Costs 4.1 4.8 4.6 1,009 2,134 1,998 3.72 8.32 8.07

pl
Property Operation & Maintenance 3.8 4.1 4.1 913 1,833 1,762 3.37 7.14 7.12
TOTAL UNDISTRIBUTED OPERATING EXPENSES 19.8 23.2 22.1 4,829 10,283 9,588 17.83 40.06 38.72

GROSS OPERATING PROFIT 42.4 % 32.8 % 33.7 % 10,305 14,574 14,655 38.05 56.78 59.19
Base Management Fees - 1.9 2.0 0 857 869 0.00 3.34 3.51
Incentive Management Fees - 0.5 0.9 0 228 386 0.00 0.89 1.56
INCOME BEFORE FIXED CHARGES 42.4 % 30.4 % 30.8 % 10,305 13,489 13,400 38.05 52.56 54.12

SELECTED FIXED CHARGES

e
Rent 26.6 % 15.3 % 15.0 % 12,613 6,078 11,809 43.93 25.34 41.85
Property Taxes 2.5 1.0 1.2 1,191 412 926 4.15 1.72 3.28
Insurance - 0.1 0.3 0 51 219 0.00 0.21 0.78
EBITDA / NET OPERATING INCOME (5.3) % 8.5 % 22.8 % (2,521) 3,399 17,885 (9.12) 12.34 58.69

Reserve For Capital Replacement - 2.8 2.8 0 472 459 0.00 5.11 5.01

3
SUPPLEMENTAL PAYROLL ANALYSIS
Rooms 11.9 % 7.7 % 7.2 % 21,377 21,147 23,506 66.27 76.51 82.47
Food and Beverage 36.2 23.1 23.0 24,671 42,754 47,856 76.48 154.90 167.88
Other Operated Departments 13.1 32.1 32.1 3,673 9,613 12,147 11.39 34.82 42.66
Administrative & General 7.8 4.1 3.9 21,524 20,527 22,687 66.72 74.27 79.59
Marketing 2.1 1.5 1.3 5,793 7,297 7,912 17.96 26.41 27.77
Property Operations & Maintenance 1.9 1.4 1.3 5,303 6,815 7,543 16.44 24.66 26.46
TOTAL PAYROLL & RELATED EXPENSES 29.9 % 21.4 % 20.6 % 82,342 107,227 120,503 255.26 387.96 422.77

SUPPLEMENTAL FOOD & BEVERAGE INFORMATION 3

Cost of Food Sales 35.1 % 28.8 % 29.4 % 681 2,145 2,387 2.51 8.36 9.64
Cost of Beverage Sales 19.4 16.0 16.3 184 525 609 0.68 2.04 2.46
Total Cost of F&B Sales 29.9 % 21.6 % 22.7 % 865 2,668 2,996 3.19 10.40 12.10

Food & Beverage Payroll 49.0 % 47.8 % 46.2 % 1,417 5,911 6,101 5.23 23.02 24.64

Food & Beverage Other Expenses 4.0 % 9.9 % 7.7 % 115 1,225 1,020 0.42 4.77 4.12

1
Ratio to Sales for departmental expenses and profits are based on their respective departmental revenues. All other expense ratios are based on total revenue.
2
EBITDA does not include Depreciation and Amortization, Interest, nor Income Taxes
3
Payroll and Costs of Sales are included in expenses. Amounts shown here are for additional detail only. Not all participants provide detailed data on payroll and F&B costs; therefore, the following supplemental analyses
provide the ratios for only these hotels in the samples that reported detailed information. Consequently, the amounts may not tie to the departmental figures provided.

Please note for summary tab:

Totals may not add due to rounding
Ratio to sales based on Total Revenue, except Departmental Expenses
Per Available Room based on total total number of hotel rooms
Per Occupied Room Night based on total number of occupied rooms

Source: STR Analytics, a STR, Inc. company - The information contained in this report is based upon independent surveys and research from sources considered reliable but no representation is made as to its completeness or accuracy. This information is in no way to be constructed as a recommendation by STR Analytics of any
industry standard and is intended solely for the internal purposes of your company and should not be published in any manner unless authorized by STR Analytics. Copyright 2014 STR Analytics, a STR, Inc. company.
Help/Definitions
Following please find defintions for the terms used in this report.

Revenues
Rooms Revenue - Revenues derived from the rental of sleeping rooms at the hotel, net of any rebates and discounts.
Rooms - Other - Revenue from no shows, service charges, and late checkout fees. Does not include resort fees, which is included in Rentals and Other Income.
Food Revenue - Revenues derived from the sale of food, including coffee, milk, tea, and soft drinks.
Beverage Revenue - Revenues derived from the sale of beverages, including beer, wine and liquors. Also includes banquet beverage revenues.
Other Food and Beverage Revenue - Revenues derived from other sources such as meeting room rentals, cover or service charges, or revenues derived from the sale of goods or services made in connection with banquets, such as equipment rental, music,
decorations and souvenirs. Also includes banquet service charges.
Other Operated Departments Revenue - Revenues generated from telecommunications, garage and parking, golf and tennis, health club, swimming pool, barber/beauty shop, gift shop, newsstand, etc., when operated by the hotel. Excludes casinos.
(Departments must have a payroll expense associated with them)
Rentals and Other Income - Income from rentals of space for business purposes, including concessions in any of the departments mentioned under other operated departments. Also includes income generated from sources not included elsewhere such as
cancellation fees and resort fees, but excludes investment income.

Departmental Expenses
Payroll and Related Expenses (broken out by department) – Includes salaries and wages of departmental personnel and management including overtime, severance, incentive, holiday, sick, vacation and bonus pay. Also included are employee benefits,
payroll taxes and allocations for workers’ compensation insurance.
Rooms Departmental Expenses - Rooms departmental expenses include labor costs such as salaries and wages for front desk, housekeeping, reservations, bell staff, and laundry, plus employee benefits. Other operating expenses in the rooms department
include linen, cleaning supplies, guest supplies, uniforms, central or franchise reservation fees, equipment leases, travel agent commissions and continental breakfast cost.
Cost of Sales - Departmental purchases required to deliver the services for that department especially food and beverage. Also, in the telecommunications department, the amounts billed by the telephone companies for local and long distance calls made by
guests.

Food Expense - Food departmental expenses include the cost of goods, labor and related benefits, and other operating expenses. Labor costs include departmental management, cooks and kitchen personnel, service staff (server, host/hostess, bus person,
etc), banquet staff. Other operating expenses include china, silverware, linens, restaurant and kitchen supplies, menus and printing, and special promotions. (Does not include continental breakfast costs. This is a Rooms Expense.)
Beverage Expense - Beverage departmental expenses include the cost of goods sold, labor and related benefits, and other operating expenses. Labor costs include departmental management, lounge service staff, banquet bartender, bartenders and mini-bar
staff. Other operating expenses include china, silverware, linens, and special promotions.
Other Departmental - Other departmental expenses would comprise those expenses (labor and other) which offset the revenue generated by other operated departments such as telecommunications, garage, athletic facilities, and gift shop, as well as rental
activity.

Undistributed Operating Expenses

Administrative and General (A&G) Expense - Included in this category are the payroll and related expenses for the general manager, human resources and training, security, clerical staff, controller, and accounting staff. Other A&G expenses include office
supplies, computer services, accounting and legal fees, cash overages and shortages, bad debt expenses, travel insurance, credit card commissions, transportation (non-guest) and travel and entertainment.
Marketing Expense - Marketing expense includes payroll and related expenses for the sales and marketing staff, direct sales expenses, advertising and promotion, travel expenses for the sales staff, and civic and community projects. This expense excludes
all franchise fees (royalty fees, advertising assessment, and loyalty program fees).
Franchise Fee - Includes royalty fees, advertising assessments, and loyalty program fees charged by franchise companies. Reservation system fees are included in the Rooms department expenses.
Utility Costs - Utility expenses typically include electricity, fuel (oil, gas, and coal), purchased steam, and water. Includes central plant and energy management systems. (Does not include waste removal, which is included in Property Operation and
Maintenance Expenses).
Property Operations and Maintenance - This category includes payroll and related expenses for maintenance personnel, cost of maintenance supplies, cost of repairs and maintenance of the building, furniture and equipment, the grounds, and the removal
of waste.
Management Fees - Fees charged by management organizations for management services or supervision. Includes both base and incentive fees.

Fixed Charges
Rent - Includes charges for lease of land and/or building and capital leases for rental of data processing equipment,
telephone equipment and other major items.
Property Taxes - Typically include taxes on real estate, business and occupation, personal property, utilities, and other municipal taxes.
Insurance - Cost of insuring the hotel building and contents against fire, weather, sprinkler leakage, boiler explosion, plate glass breakage, or other perils. Includes all insurance except workers’ compensation.
Other Fixed Charges - Includes any other expenses that relate to the ownership of the hotel and gains or losses from any sale of assets.
Reserve for Capital Replacement - Amount set aside for replacement of furniture, fixtures, and equipment (as may be required by loan, franchise or management agreement).

Other Terms
Number of Rooms in Hotel - Rooms in the hotel.
Number of Room Nights Available - Number of Rooms in hotel times number of days (365) reporting.
Number of Occupied Room Nights - Rooms occupied by hotel guests on a paid basis.

For a more detailed discussion of the accepted structure of hotel financial statements please refer to the 11th revised edition of the Uniform System of Accounts for the Lodging Industry.

For further questions, please contact:

North America - STR Analytics - HOST@[Link]
Outside of North America - STR Global - TRENDS@[Link]