Q1 HOTEL TRANSACTIONS UPDATE

Big jump on transaction volume in Q1

Market M&A Trends for Q4 and Year 2010

• Q1 US transaction volume soared close to $5BN, more than half of total volume for 2010
• Biggest deal: Ashford Hospitality’s acquisition of 28 Highland Hospitality hotels for $1.28BN in a foreclosure deal
• Consistent with 2010, REITS (existing and newly formed) dominated the M&A market in Q1
• Hotel delinquencies have stabilized. The latest data from Fitch showed hotel delinquencies in February hit 14.3%, a rate similar to Q4 2010

Luxury Segment

• Average Price per Key
  • Q1 2011 Global average: $279,697
    
    • US average: $289,733 (4 transactions)
  • Q4 2010 Global average: $998,687.  In Q4, there were several sales in Europe (London, France, Dubai) that surpassed $1MM in average price per key.
    
    • No US transactions

Upper Upscale Segment

• Average Price per Key 
  • Q1 2011 Global average: $250,532 
    • US average: $261,559 (20 transactions)
  • Q4 2010 Global average: $257,295
    
    • US average: $291,945 (7 transactions)