Q4 HOTEL TRANSACTIONS

Scarce US transactions in Q4 but 2011 was a better year overall

Market M&A Trends for Q4

• Q4 US hotel transaction volume fell to $1BN from $3BN in Q3 2011 and $4BN in Q2 2011.  But US transaction volume ended 2011 almost doubling that of 2010’s total.
• The number of US hotel transactions in Q4 was significantly lower QoQ
• US Average Price per key in the Upper Upscale segment has dropped steadily since Q2 2011
• The European market, particularly in the UK, was more active than that of the US
• REITs/JVs accounted for the majority of the market activity
• Accor took part in several deals as part of the firm’s Group Asset Management strategy 
• According to Fitch, hotel delinquencies continue to improve as November’s 12.7% rate was below September’s 13.3%

Luxury Segment

• Average Price per Key
  • Q4 2011
    • US average: $224,785 (3 transactions)
    • Elsewhere average: $621,382 (6 transactions)
  • Q3 2011
    • US average: $632,270  (2 transactions)
    • Elsewhere average: $858,612 (2 transactions)
  • Q2 2011
    • US average: $406,250 (4 transactions)
    • Elsewhere average:  $788,461 (3 transactions)

Upper Upscale Segment

• Average Price per Key
  • Q4 2011
    • US average: $207,026 (6 transactions)
    • Elsewhere average: $348,667 (5 transactions)
  • Q3 2011
  • US average: $253,736 (8 transactions)
  • Elsewhere average: $338,661 (4 transactions)
  • Q2 2011
  • US average: $355,382 (13 transactions)
  • Elsewhere average: $250,152 (2 transactions)

Chain Scale

L: Luxury

UU: Upper Upscale

U: Upscale

M: Midscale

E: Economy