2020 Operation Budget Presentation

2020 Operation Budget Presentation

2020 OPERATING BUDGET PRESENTATION

04 07

PIP HOTEL RENOVATION STATUS

2019 CLOSEOUT Charleston ES La Vista CYD Montgomery ES Omaha ES

DESIGN 2018 CONSTRUCTION 2019 Cary/Raleigh ES

Oklahoma City CYD Springfield RI N Charleston RI

Little Rock ES Madison MH Tucson MH Waikiki MH

11

DESIGN 2019 CONSTRUCTION 2020

Albuquerque MH Cedar Rapids MH Charlotte Hilton Columbia ES Coral Springs MH Houston MH

Normal MH Oklahoma City MH Portland ES Sioux Falls SH Tampa ES

14

DESIGN 2020 CONSTRUCTION 2021

Greensboro ES Kansas City E Lincoln E N Charleston E Rogers E St Charles ES Huntsville ES

Albuquerque ES Glendale RH Buckhead M Columbus Airport MH Des Moines ES Franklin ES Frisco ES

2015 – 2024 | RENOVATION RECAP | PERIOD BASED

16

30%

27%

14

14

25%

24%

12

11

11

21%

20%

10

10

9

16%

8

15%

14%

8

15%

14%

13%

13%

13%

6

11%

6

10%

10%

10%

10%

9%

10%

9%

8%

8%

8%

4

6%

3

6%

5%

5%

2

4%

2

3%

3%

3%

3%

1

3%

2%

0

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

% of Keys

% of REV

% of EBITDA

# of Hotels

2015 – 2024 | RENOVATION RECAP | AGGREGATE

80

120%

75

70

67

100%

100%

100%

61

60

91%

90%

85%

80%

51

82%

50

69%

68%

40

60%

37

100%

30

90%

48%

26

83%

40%

42%

69%

33%

20

15

29%

45%

20%

21%

20%

10

30%

6

20%

11%

3

9%

11%

1

7%

2%

3%

3%

6%

6%

0

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

% of Keys

% of REV

% of EBITDA # of Hotels

US HOTEL INDUSTRY AT A GLANCE | SEPTEMBER 2019

SUMMARY: LUXURY & UPPER UPSCALE CLASSES | SEPTEMBER 2019

DIVIDED THE PORTFOLIO INTO 4 SUBGROUPS

AH60 HOTELS UNAFFECTED BY RENOVATIONS IN 2019 OR 2020

AH11 EXITING RENOVATIONS IN 2019

AH8 UNDER RENOVATION IN 2020

AH3 WHR HOTELS NOT IN ENTERPRISE ROLL UP BELOW

2020 YOY %/$ Change

Rm Rev %

Rm Rev $

F&B %

F&B $

Total Rev %

Total Rev $

Occ

ADR

RevPAR

AH81 2.6% 1.8% AH60 1.1% 1.4%

4.4% 4.7% 31,244,289 0.8% 2,264,797 2.5% 2.8% 14,325,662 2.1% 4,824,988

3.5% 34,838,846 2.6% 20,005,296 33.6% 31,890,937

AH11 (2019 Renovations) 24.3% 6.3% 32.1% 32.5% 22,695,843 36.7% 8,240,619

AH8 (2020 Renovations) -11.4% 3.2% -8.6% -8.4% (5,629,772)

-22.6% -5,640,234 -12.2% (11,600,724)

Dept. Prof. %

Dept. Prof. $

Dept. Flow

GOP %

GOP $

GOP Flow

PFE %

PFE $

PFE Flow

AH81 5.1% 32,959,458 94.6% 7.3% 25,322,258 72.7% 7.3% 21,545,144 AH60 3.3% 17,003,920 85.0% 4.3% 11,937,972 59.7% 3.7% 8,766,130 AH11 (2019 Renovations) 43.0% 26,701,050 83.7% 79.2% 22,409,397 70.3% 99.2% 22,059,336

61.8% 43.8% 69.2% 28.6%

AH8 (2020 Renovations) -14.3% (9,230,976)

20.4% -23.2% (8,083,382)

30.3% -28.3% (8,279,011)

(Additionally, there are 2 hotels that are non-comparable for a reason other than renovations: OKC Renaissance due to the convention center closing in Q1 2020 and The Q due to the brand change in 2019)

INDUSTRY EXPERT FORYEAR PROJECTIONS AS OF

SUPPLY

DEMAND

OCC

ADR

REVPAR

STR

2020

AUG 2019

1.9%

1.6%

-0.3%

1.4%

1.1%

CBRE (PKF)

2020

AUG 2019

2.1%

1.3%

-0.8%

2.0%

1.2%

PWC

2020

AUG 2019

1.9%

1.9%

0.0%

1.0%

1.0%

MAJOR EVENTS | 2019 & 2020 The portfolio loses 2 large special events from 2019 worth $1.0M in Total Revenue, and picks up 2 new special events in 2020, worth $1.1M. In addition to the special event changes, we expect to recover the lost business due to the government shutdown in Q1 2019. In total, the net effect of these 5 events is worth just over $1.0M in Total Revenue for 2020 or 2.9% of the budgeted Total Revenue increase for the AH81.

E V E N T

L O C AT I ON

DAT E

N OT E S

Loss of Super Bowl

Atlanta

Feb 2019

worth $550K total revenue

Loss of US Open

Monterey

Jun 2019

worth $450K total revenue

worth $560k in total revenue between the two Des Moines hotels

Gain of Single Caucus

Des Moines

Jan – Feb 2020

Gain of Republican National Convention

Charlotte

Aug 2020

$550K total revenue

$950k in lost business in 2019, expect to recoup 100% of that in 2020

Government Shutdown

n/a

Q1 2019