[PPT] - Main St To Wall St: What's Trending and How Will It Impact Hotels in PowerPoint Presentation

SLIDE 1

Main St To Wall St: What's Trending and How Will It Impact Hotels in 2018

Wall Street Perspective: Initial 3Q Review and 4Q17/2018 Outlook Vince Ciepiel, CFA

Important disclosures may be found in the appendix

SLIDE 2

Cleveland Research Overview Providing a Macro Backdrop Revenue Manager Survey Results Publicly Traded Hotel Co’s Results Summary Appendix

What We Will Cover

SLIDE 3

Who is Cleveland Research?

An independent research firm headquartered in Cleveland, Ohio. Founded in 2006, Cleveland Research includes:  15 research teams  Across 50 key channels  Publishing research on over 150 companies We pride ourselves on a disciplined research process that has us regularly and deeply engaged with the industries and companies we cover. Our partners find value from getting in front of key themes and trends that lead to faster and better strategic and financial decisions.  What is happening now?  Why is it happening?  What happens next?

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SLIDE 4

Big picture

1. GDP Good
Growth for 17 & 18 seeing positive revision
One of the more synchronized years globally in a while
2. Business investment ticking up, Corporate profits and Consumer Confidence strong
3. Supply likely topping out in Urban in 18 and in US in 19
Construction starts slowing (more challenging financing and costs on the rise)
4. Divergence in growth
International growth accelerating: Led by Asia and Europe
5. Domestic RevPAR growth moderating
Industry RevPAR up 2% in 3Q vs. 1H up near 3%
In U.S. underperforming: Top 25 (9 are negative), Urban, Luxury/Upper Up
Rates seem to be the issue (demand/occupancy upside YTD again)

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SLIDE 5

Domestic Revenue Manager Survey Results

5

Feelings, Expectations, & Momentum

SLIDE 6

How does our survey look?

 3Q – Relative to your expectations, did portfolio RevPAR growth come in

a) in line
b) slightly worse
c) slight better

 October/4Q – relative to 60 days ago, how are you feeling on October/4Q RevPAR growth?

a) the same
b) slightly worse
c) slight better

 4Q – How do you expect the level of 4Q RevPAR growth to compare to what you saw in 3Q?

a) the same
b) slightly lower
c) slightly higher

 2017 & 2018 – Relative to 60 days ago, how are you feeling on 2017 & 2018 RevPAR growth?

a) the same
b) a bit worse
c) a bit better

SLIDE 7

5 Things to Remember from our Survey

Where we have been

1. 1Q Beat (Thank Trump and Easter), 2Q Miss (Misplaced Optimism)
Stronger Jan (Women’s March and Inauguration), in line Feb, stronger March on Easter shift
June disappointing, in line May and an April that wasn’t as bad as feared
2. 3Q seems to be in line with a low bar – Story of holiday shift and hurricane benefit
July softest month, Aug feedback better/in line, Sept a bit better than expected
Early read on 3Q results looks in line with lower bar/tempered budgets provided in June

Where we are headed

3. 4Q feels ok – Off to a “decent” start
October seeing Jewish holiday benefit (1H strong) and hurricane benefit linger (FL, TX) line with lower

bar/tempered budgets provided in June

4. Feeling the same on 2017 – Core growth unchanged in 2H vs. a prior hope for accel
17 still tracking towards mid to lower end of budget (in line with 60 days ago)
5. Trend lines into 2018 unchanged (Leisure strong, Group Ok, Corp underwhelming)

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SLIDE 8

3Q Survey Results

56% 78% 81% 17% 33% 41% 22% 25% 17% 13% 33% 39% 47% 38% 19% 6% 6% 50% 28% 12% 41% 0% 25% 50% 75% 100% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Quarterly Growth vs. Plan/Budget

% Slightly Worse % Inline % Slightly Better

Source: Cleveland Research,

37% 29% 34% 47% 42% 25% 16% 29% 41% 0% 25% 50% 75% 100% July August Sept

Growth Tracking Relative to Plan/Budget in 3Q17

% Slightly Worse % Inline % Slightly Better

Source: Cleveland Research

 Slightly better in 3Q vs. slightly worse in 2Q  ~80% of respondents were in line or slightly better than expectations, 20% missed  July weakest, August ok, September better (vs. budget)  ~40% of respondent beat in September

SLIDE 9

4Q Outlook Survey

17% 19% 25% 38% 38% 38% 46% 42% 38% 0% 25% 50% 75% 100% Oct Outlook 4Q Outlook 2017 Outlook

Feeling on Budget Today vs. 45 days ago

% Slightly Worse % Inline % Slightly Better

Source: Cleveland Research

 Most feeling the same or better on October and 4Q RevPAR growth  Group trends in October padding 1H on easy compares; hurricane supporting some lift

SLIDE 10

2017 & 2018 View – More of the same

 Feeling same or better about 2017 today vs. end of 2Q survey where revenue managers were feeling worse  Most still expect to hit the midpoint of their 2017 budget (1-3%), but optimism faded after a worse 2Q than expected as some realism set in with tempered outlooks  2018 initial view points to 1-2.5% growth – hard to point to catalysts for an acceleration in growth

26% 72% 63% 6% 9% 46% 25% 68% 22% 31% 83% 82% 38% 38% 5% 6% 6% 11% 9% 15% 38% 0% 25% 50% 75% 100% 16 from 1Q 16 from 2Q 16 from 3Q 16 from 4Q 17 from 1Q 17 from 2Q 17 from 3Q

Feeling on Full Yr Budget Today vs. 60 days ago

% Slightly Worse % Inline % Slightly Better

Source: Cleveland Research,

SLIDE 11

Publicly Traded Company RevPAR Performance

11

SLIDE 12

3Q17 Results to-date and Updated Guidance

12

Ticker Company 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2014 2015 2016 2Q17 3Q17 4Q17 Loding Brand Co's HLT Hilton Worldwide Holdings Inc 6.6% 5.2% 5.8% 3.7% 2.1% 2.9% 1.3% 0.9% 2.5% 0.5%

0.1%

7.3% 5.4% 1.8% 1-2% 0-1% 1-3% 1-3% 1-3% 1-2% 1-2% MAR Marriott International, Inc. Class A 6.8% 5.3% 4.5% 3.8% 2.6% 2.9% 2.2% 0.8% 3.1% 0.9% 0.6% 6.6% 5.0% 1.8% 0-2% 0.0% 0.5-2.5% 1-3% 1-2% H Hyatt Hotels Corporation Class A 7.4% 5.6% 5.4% 3.9% 2.2% 2.3% 2.5% 2.0% 4.8% 1.4% 0.5% 6.7% 5.5% 1.9% 0-2% 0-2% 1-3% IHG InterContinental Hotels Group PLC Spons 5.9% 4.4% 4.8% 2.4% 1.5% 2.5% 1.3% 1.3% 1.9%

0.4%

0.4% 6.1% 4.4% 1.8%

WYN

Wyndham Worldwide Corporation 1.7% 0.0% 3.3% 0.0%

1.6%
0.6%

1.9% 2.9% 1.7% 2.8% 2.3% 4.4% 0.0% 0.0%

0-2%
LQ

La Quinta Holdings, Inc. 8.2% 4.0% 2.1%

0.3%
2.5%

0.2% 0.8% 1.8% 2.8% 1.9% 2.0% 8.0% 3.5% 0.0%

CHH

Choice Hotels International, Inc. 9.6% 6.7% 5.8% 4.3% 1.2% 4.3% 4.5% 5.0% 3.8% 2.0% 1.8% 8.5% 3.7% 3.9% 2-3% 1-2% 3-4% 3-4% 2-3% Average 6.4% 4.4% 4.6% 2.6% 0.8% 2.0% 2.1% 2.1% 2.9% 1.3% 1.1% 6.7% 3.7% 1.6% 1.7% 0.7% 2.0% 1.8% 2.1% 1.9% 1.5% Lodging REIT's Full Service: HST Host Hotels & Resorts, Inc. 3.8% 4.8% 2.8% 3.2% 3.6% 2.0% 3.8% 2.1% 3.8% 1.8%

0.6%

5.7% 3.8% 2.5%

0-2%

0-2% 1-1.75% LHO LaSalle Hotel Properties 5.4% 4.1%

2.4%

0.9% 2.1% 1.7% 4.3% 2.5% 1.4%

1.6%
3.6%

8.8% 2.6% 2.5%

DRH

DiamondRock Hospitality Company 7.9% 6.0% 2.2% 3.1%

2.1%

0.8% 0.8%

0.3%

1.9% 2.0% 2.1% 11.6% 4.7%

0.2%
1-1%
1-1%

1-2% RHP Ryman Hospitality Properties, Inc. 4.0% 3.1%

1.8%

9.1%

0.4%

5.9% 8.9%

2.1%

7.6%

0.7%
2.0%

7.5% 3.7% 2.9% 0-1% (3)-(1)% 0-3% 0-3% 1-3% PEB Pebblebrook Hotel Trust 3.6% 3.8% 4.0% 1.7% 8.0% 2.5%

0.1%

0.0%

2.9%
2.4%
3.1%

1.5% 3.3% 2.4% (3.5)-(1.5)% (4.5)-(2.5)%

0.5-1.5%
1-1%
1-1%

(2)-(1)% (2)-(1)% CHSP Chesapeake Lodging Trust 9.5% 7.0% 7.2% 3.8% 10.1% 2.2%

0.7%
0.6%
2.5%
3.7%
2.5%

9.5% 5.7% 2.3% (6.0)-(4.0)% (4.5)-(2.5)% (3.5)-(1.5)% (3.5)-(1.5)% (3.5)-(1.5)% SHO Sunstone Hotel Investors, Inc. 7.0% 7.1% 3.9% 4.1% 1.5% 1.3% 2.2% 0.4% 5.5% 2.5% 2.0% 6.8% 5.9% 1.3% 0.75-2.75%

0.5-1.5%

0.5-2.5% 0.5-3.5% 1.5-3.5% 1.5-3.5% 2.25-3.25% Average 6.5% 4.8% 2.4% 3.7% 3.3% 2.3% 1.7% 0.3% 2.1%

0.3%
1.1%

7.4% 4.2% 2.0%

1.9%
2.2%

#DIV/0! 0.3% 0.4% 0.6% 0.6% Select Service: HPT Hospitality Properties Trust 10.1% 10.7% 7.8% 6.2% 4.4% 4.9% 3.8% 0.6% 1.0%

0.3%

10.2% 8.7% 3.6%

RLJ

RLJ Lodging Trust 10.7% 5.0% 2.9% 2.5% 2.1% 1.9% 0.0%

0.3%
0.6%
3.4%

7.2% 3.9% 1.1%

1-1%
1-1%

(2)-(1)% INN Summit Hotel Properties, Inc., 8.8% 7.6% 4.9% 5.7% 3.8% 6.5% 1.6% 1.0% 0.2%

3.5%

0.6% 10.9% 7.3% 3.3% (1)-0%

2-0%

0-2% 0.5-2.5% 0.5-2.5%

1-0%

(0.75)-(0.25)% Average 9.9% 7.8% 5.2% 4.8% 3.4% 4.4% 1.8% 0.4% 0.2%

2.4%

0.6% 9.4% 6.6% 2.7%

0.5%
1.0%

2.0% 0.8% 0.8%

1.0%

#DIV/0! Small Caps FCH FelCor Lodging Trust Incorporated 13.1% 7.3% 7.0% 5.4% 4.7% 2.6%

0.7%
2.0%
1.3%
1.0%

8.9% 8.1% 0.9%

0.5-2.5%

0.5-2.5% CLDT Chatham Lodging Trust 7.9% 6.4% 5.3% 4.7% 2.6% 0.6%

2.1%
0.8%

1.2%

0.5%

1.0% 8.0% 5.6% 0.0%

1.5-0%
1-1%
1-1%
1-1%
1-1%
1-1%

0.3-0.8% Average 10.5% 6.9% 6.2% 5.1% 3.7% 1.6%

1.4%
1.4%
0.1%
0.8%

1.0% 8.4% 6.9% 0.5%

2.5%

0.8% 0.8% 0.0% 0.6%

Source: Company Filings

17 from 4Q

Lodging Brands and REITS RevPAR Guidance

Annual Growth 17 from 1Q 17 from 2Q 17 from 3Q Domestic Quarterly RevPAR Growth Quarterly Guide Annual Guide

SLIDE 13

First Glance at 3Q results

 HLT domestic down -0.1% in 3Q (vs. guide of 0-1%, 2Q up 0.5%); full year maintained at 1-3%, 4Q guided 1-3%  IHG domestic up 0.4% in 3Q (2Q down 0.4%); no quarterly/full year outlook  WYN domestic up 2.3% in 3Q (2Q up 2.8%); no quarterly/full year outlook  LHO down 3.6% in 3Q (2Q down 1.6%) ; no quarterly/full year outlook  PEB down 3.1% in 3Q (vs. guide of (4.5)-(2.5%), 2Q at -2.4%); full year maintained at (2)-(1)%, 4Q guided (-0.5)-1.5%  DRH up 2.1% in 3Q (2Q up 2%); full year maintained at 1-2%  SHO up 2.0% in 3Q (guide of -0.5–1.5%, 2Q up 2.5%); full year outlook raised 25bps at the midpoint to 2.25-3.25%; 4Q guided -0.5 - 2.5%  INN up 0.6% in 3Q (guide of -2.0-0%, 2Q down -3.5%); full year maintained at the midpoint but narrowed to (0.75)– (0.25%) (prior -1.0 - 0%), 4Q guided up 0-2%  CLDT up 1.0% in 3Q, beat mid of guide by 100bps (guide -1–1%, 2Q down -0.5%); full year outlook raised 55bps at the midpoint to 0.3%-0.8%, 4Q guided -1-1%

SLIDE 14

5 Things To Remember From Publicly Traded Group Results

1. 1Q Review – Beat and accel
2% in 1Q, up 100bps Q/Q and 100bps better than guide
2. 2Q Results – Miss and step down
0% in 2Q, down 200bps Q/Q and 50bps worse than guidance
3. 3Q results looks generally in line
Guided flat to slightly down vs. 2Q and vs. STLY
4. 4Q Outlook – Still expect a pick-up 150bps
Using the 3Q guide and the mid of the full year 17, the average hotel co is guiding a 150bps

pick up in 4Q to 1% following the expected down 0.5% in 3Q. May prove to be aggressive

5. 2017 & 2018 Outlook – More of the same
Maintaining/narrowing 17 (which was reduced to slightly positive on 2Q releases)
The avg hotel co now expects 0.5% for 2017 (which was closer to 1% as of the 2Q releases)

SLIDE 15

Quarterly RevPAR growth – Brand’s & REIT’s

15

1.3%

0.3%
1.5%

1.0%

1.3%
2%

0% 2% 4% Brand Co's Full Service REIT's Select Service REIT's

Hotel Co's Quarterly RevPAR Growth

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Source: Company Filings

 3Q likely down slightly yr/yr, (Q/Q decel of ~50bps). This follows a 2Q which was flat yr/yr (Q/Q decel of 200bps)

Brands likely moderate 30bps to 1% following a much larger decel in 2Q
Full Service likely moderate 100bps to down 1.3% following a similar decel in 2Q

 What does this chart look like 1 year from now?

SLIDE 16

Quarterly RevPAR growth – Brands

0.5% 0.9% 1.4%

0.4%

2.8% 1.9% 2.0%

0.1%

0.6% 0.5% 0.4% 2.3% 2.0% 1.8%

1%

0% 1% 2% 3% 4% 5% 6% HLT MAR H IHG WYN LQ CHH

Brand Co's Worldwide RevPAR Growth

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Source: Company Filings

 Brands likely moderate 30-50bps Q/Q following a 150bps moderation seen in 2

HLT domestic RevPAR stepped down 60bps to slightly negative
WYN stepped down 50bps to up 2.3%
IHG stepped up 80bps to up 0.4%
MAR, H, LQ and CHH consensus points to better strength in lower tiers (Mid/Econ, Hurricane)

SLIDE 17

Quarterly RevPAR growth – Full Service REITs

 Full Service REITs likely moderate 100bps Q/Q again in 3Q to down a 1%+

DRH stepped up 10bps Q/Q to up 2.1% following up 2% in 2Q
LHO stepped down 200bps Q/Q to down ~3.6% following down 1.6% in 2Q
PEB stepped down 70bps Q/Q to down ~3.1% following down ~2.4% in 2Q
SHO stepped down 50bps Q/Q to up 2.0% following 2Q up 2.5%
HST, RHP, CHSP consensus shows a larger moderation

1.8%

1.6%

2.0%

0.7%
2.4%
3.7%

2.5%

0.6%
3.6%

2.1%

2.0%
3.1%
2.5%

2.0%

5%
3%
1%

1% 3% 5% 7% 9% HST LHO DRH RHP PEB CHSP SHO

Full Service Lodging REIT's RevPAR Growth

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Source: Company Filings

SLIDE 18

Annual RevPAR growth

6.7% 8.3% 8.9% 3.7% 4.2% 6.8% 1.6% 2.0% 1.6% 2.0% 0.3%

0.6%
2%

0% 2% 4% 6% 8% 10% Brand Co's Full Service REIT's Select Service REIT's

Hotel Co's Annual RevPAR Growth

2014 2015 2016 2017G

Source: Company Filings, Cleveland

1.8% 2.0% 1.6% 1.8% 0.3% 0.8% 2.1% 0.4% 0.8% 2.0% 0.3%

0.6%
1%

0% 1% 2% Brand Co's Full Service REIT's Select Service REIT's

Hotel Co's Annual RevPAR Guide

16 from 3Q 17 from 4Q 17 from 1Q 17 from 2Q

Source: Company Filings, Cleveland

 Following negative revisions in 2Q, the 3Q releases likely show not much change in 17 outlook  2017 outlooks generally call modest deceleration vs. 2016 (slight step up from the Brands on Intl, step down for REITs)  2018 outlooks call for similar growth

SLIDE 19

Specific Hotel Co’s in Focus

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SLIDE 20

Co’s in Focus

HLT – More realism setting in

 3Q down 60bps Q/Q to (0.1)% a miss vs. guidance; 4Q expected to step up 150-200bps Q/Q

3Q a miss vs. prior view for 3Q to be “positive” and “clearly positive” when cleansed for holidays
Hurricanes were 40bps tailwind which helped offset 70bps headwind from holiday
October (40% of the quarter) looking “slightly ahead of expectations
2018 guided up 1-3% (vs. 2017 domestic which looks on track for~1.2% and 2016 of 1.8%) – why accel?
“Economic indicators point to a macro environment slightly better than this year, with growth in U.S. GDP and

nonresidential fixed investment forecasted to increase year over year. In the roughly 30% of our business where we have decent sightlines, we see 2018 Group position ahead of this year and we expect corporate negotiated rate increases between 2% and 3%.”

LHO – Plenty to be unexcited about

 3Q down 200bps Q/Q to (3.6)%; no annual or quarterly guidance, but commentary points to 4Q pacing down 2%

Group pacing up 6% for 4Q and 1.5% for 2018 (ex SF – included is up 8%)
4Q pace implies 2017 down 0.5% following 2016 up 2.5%
STR YTD up 2.5% (supply up 1.8%, demand up 2.5%), but urban and upper upscale are only up 1% (supply up 3%P
“We suspect the single biggest driver of this divergence in operating performance is supply growth.

SLIDE 21

Co’s in Focus

PEB – Disruption in SF, difficult convention compares, Jewish holidays...maintain FY outlook

 PEB 3Q down 60bps Q/Q to (3.1%) vs. guide (4.5)-(2.5%),; guiding 4Q up 450bps Q/Q at mid guide (-0.5)-1.5%

2017 at (2)-(1)% vs. the 2.4% in 2016. The updated 4Q guide of 0.5% is shy of prior implied which was up closer to 2%
portfolio decreased 2.3% in July, 1.6% in August, and 5.5% in September.
Group Revenue down 3% for 2018 (room nights down 8%, rate up near 6%)
Industry demand was better than supply growth in Q3, primarily due to a better than expected September, which was likely a

result of the benefits in Houston and Texas following the hurricane. In fact, Houston’s robust growth following Hurricane Harvey added over 60 basis points to the industry’s 3.3% demand growth for September.

And leisure travel remained healthy in the quarter. Transient outperformed group overall for the industry in the third quarter

and has outperformed for the whole year so far.

SLIDE 22

Appendix

Disclosures: I, Vince Ciepiel, certify that the views expressed in the research report(s) accurately reflect our personal views about the subject security(s). Further, we certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the research report(s). The analysts responsible for the preparation of this report have no ownership stake in this company. Cleveland Research Company provides no investment banking services of any type on this or any company. Proprietary research and Information contained herein which forms the basis for findings or opinions expressed by Cleveland Research Company may be used by Cleveland Research for other purposes in the course of compensated consulting and other services rendered to third parties. The information transmitted is intended only for the person or entity to which it is addressed. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any compute. Member FINRA/SIPC. 22

SLIDE 23

Questions

23

SLIDE 24

North America

24

10.1% 7.2% 7.2% 6.4% 6.8% 6.9% 4.6% 3.2% 3.9% 1.8%

2%

0% 2% 4% 6% 8% 10% 12% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

H Americas Limited Serv. RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

6.5% 5.0% 5.1% 3.8% 1.8% 2.9% 1.5% 0.8% 2.5% 0.5%

2%
1%

0% 1% 2% 3% 4% 5% 6% 7% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

HLT U.S. RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

6.9% 5.4% 4.2% 4.0% 2.4% 3.2% 2.4% 1.1% 3.1% 0.9%

1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

MAR N. America RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

8.3% 7.3% 5.3% 5.4% 2.2% 3.4% 3.8% 1.9% 5.1% 1.6%

2%

0% 2% 4% 6% 8% 10% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

H Americas Full Serv. RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

SLIDE 25

Asia Pac

25

6.2% 5.7% 4.9% 4.7% 7.4% 5.7% 5.2% 0.7% 4.9% 6.8%

1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

MAR Asia Pac RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

10.1% 9.4% 10.2% 6.7% 7.1% 3.6% 0.6% 1.5% 5.5% 6.9%

1%

1% 3% 5% 7% 9% 11% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

HLT Asia Pac RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

5.8% 2.2% 3.1% 2.1% 1.9% 1.4% 1.8% 3.6% 5.2% 7.2%

4%
2%

0% 2% 4% 6% 8% 10% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

H Asia Pac RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

SLIDE 26

Europe

26

5.5% 4.6% 8.8% 5.0% 2.9% 1.3% (0.7%) 2.2% 8.4% 6.5%

4%
2%

0% 2% 4% 6% 8% 10% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

HLT Europe RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

1.4% (0.2%) 6.2% (4.0%) (5.9%) (9.9%) (7.8%) (3.4%) 3.1% 5.1%

12%
10%
8%
6%
4%
2%

0% 2% 4% 6% 8% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

H EAME/SWA RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

7.0% 4.1% 9.3% 4.1% 2.7% 3.4% 0.7% 1.7% 7.0% 7.0%

2%

0% 2% 4% 6% 8% 10% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

MAR Europe RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

SLIDE 27

Africa/Mid East

27

5.4% 2.5% 9.1% (8.8%) (4.7%) 8.1% (2.6%) (5.7%)(2.1%) 9.6%

15%
10%
5%

0% 5% 10% 15% 20% 25% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

HLT Mid E./Afr RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

9.3% 0.8% 3.9% (6.4%) (2.3%) (5.9%) 4.5% (1.1%) (0.3%) 2.4%

8%
6%
4%
2%

0% 2% 4% 6% 8% 10% 12% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

MAR Mid E./Afr RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings

1.4% (0.2%) 6.2% (4.0%) (5.9%) (9.9%) (7.8%) (3.4%) 3.1% 5.1%

12%
10%
8%
6%
4%
2%

0% 2% 4% 6% 8% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

H EAME/SWA RevPAR Growth

Rate Occupancy RevPAR

Source: Company Filings