CHINA HOTEL MARKET OUTLOOKTopics To Cover Key Market Assessment China Hotel Market Sentiment Surveyy The Big Picture For China In 2010 Key Market OutlookSource: STR Global, Horwath HTLKEY MARKET ASSESSMENTKey Market Occupancy TrendsChange in Occupancy from December 2007 to Feb 2010BeijingShanghaiGuangzhouShenzhenShhHangzhou-17.2-11.7+2.6-6.464-11.1-11 1SanyaTianjinChengduDalianD liChongqing-8.3-11.8-2.4-5.88-7.2-7 2Note: Percentage Point ChangeSource: STR Global, Horwath HTLKey Market RND Growth TrendsChange in Room Night Demand Volume from December 2007 to Feb 2010BeijingShanghaiGuangzhouShenzhenShhHangzhou-1%-4%34%20%15%SanyaTianjinChengduDalianD liChongqing20%11%25%22%37%Source: STR Global, Horwath HTLKey Market AssessmentAll Charts & Data Presented As A Rolling 12-Month AverageSource: STR Global, Horwath HTLKey Market AssessmentAll Charts & Data Presented As A Rolling 12-Month AverageSource: STR Global, Horwath HTLBeijing Supply & Demand TrendsHotels52Rooms23,097Source: STR Global, Horwath HTLBEIJING Room Night Demand VolumeSource: STR Global, Horwath HTLBEIJING Room Night Demand Volume12,010 April 200812% Decline10,584 May 2009Source: STR Global, Horwath HTLBEIJING Room Night Demand Volume11% GrowthSource: STR Global, Horwath HTLBEIJING Supply & Demand TrendsSupply Growth 33%RNA from 17,364 to 23,097Demand Growth -1%RND from 11,845 to 11,776Source: STR Global, Horwath HTLBEIJING Supply & Demand TrendsSupply Growth 33%RNA from 17,364 to 23,097Demand Growth -1%RND from 11,845 to 11,776Supply & Demand GapGrown from 5,519 to 11,3215 519 11 321Occupancy from68.2% 51.0%68 2% to 51 0%Source: STR Global, Horwath HTLBEIJING ADR TrendRMB 1,104 Dec 2008RMB 820 Feb 201026% DeclineSource: STR Global, Horwath HTLBEIJING RevPAR TrendRMB 709 April 2008pRMB 406 Nov 200943% DeclineSource: STR Global, Horwath HTLBEIJING 2010 OutlookPositives Improving global economicenvironment Recent strong demandggrowth Relatively limited newsupply International demandshould return in biggernumbersSource: STR Global, Horwath HTLNegatives Room rates still in adownward trend International corporatedemand likely to remainprice sensitive Although limited supply new entrants will dampenoccupancy growth and keeproom rates competitiveSHANGHAI Supply & Demand TrendsHotels59Rooms24,700Source: STR Global, Horwath HTLSHANGHAI Room Night Demand VolumeSource: STR Global, Horwath HTLSHANGHAI Room Night Demand Volume13,679 Jan 200813% Decline11,860 June 2009Source: STR Global, Horwath HTLSHANGHAI Room Night Demand Volume10% GrowthSource: STR Global, Horwath HTLSHANGHAI Supply & Demand TrendsSupply Growth 17%RNA from 21,046 to 24,700,Demand Growth -4%RND from 13,574 to 13,031Source: STR Global, Horwath HTLSHANGHAI Supply & Demand TrendsSupply Growth 17%RNA from 21,046 to 24,700,Demand Growth -4%RND from 13,574 to 13,031Supply & Demand GapGrown from 7,472 to 11,6697 472 11 669Occupancy from64.5% 52.8%64 5% to 52 8%Source: STR Global, Horwath HTLSHANGHAI ADR TrendRMB 1,122 Aug 2008,gRMB 851 Feb 201024% DeclineSource: STR Global, Horwath HTLSHANGHAI RevPAR TrendRMB 708 Jan 2008RMB 439 Nov 200938% DeclineSource: STR Global, Horwath HTLSHANGHAI 2010 OutlookPositives Shanghai Expo is creatingexcitement in the marketmarket.All tiers looking to benefit Improvement in globaleconomic environment Economic and financialcentre, development ofcommercial sub centres,transportation infrastructureimprovementsNegatives Supply will continue to growand impact the market Still heavily reliant oninternational dittil demanddsources, particularly at thetop tier level Rate weakness continues gov tgovt trying to stop pricegouging Post Expo concernsSource: STR Global, Horwath HTLGUANGZHOU Supply & Demand TrendsHotels15Rooms5,490Source: STR Global, Horwath HTLGUANGZHOU Room Night Demand VolumeSource: STR Global, Horwath HTLGUANGZHOU Room Night Demand Volume34% GrowthSource: STR Global, Horwath HTLGUANGZHOU Supply & Demand TrendsSupply Growth 28%RNA from 4,287 to 5,490Demand Growth 34%RND from 2,252 to 3,017Source: STR Global, Horwath HTLGUANGZHOU Supply & Demand TrendsSupply Growth 28%RNA from 4,287 to 5,490Demand Growth 34%RND from 2,252 to 3,017Supply & Demand GapGrown from 2,035 to 2,4732 035 2 473Occupancy from52.5% 55.1%52 5% to 55 1%Source: STR Global, Horwath HTLGUANGZHOU ADR TrendRMB 804 Dec 2008RMB 731 Jan 20109% DeclineSource: STR Global, Horwath HTLGUANGZHOU RevP