1. Government Travel’s Largest Sector: Hospitality Copyright © 2009, The Rubicon Group, Inc. Proprietary & Confidential This report and its contents are proprietary information and may not be disclosed or discussed with any third party, except as permitted by the Publisher, The Rubicon Group, Inc. Neither the contents of the report, actions taken based upon the report nor implications of the report may be shared with anyone outside of the Subscriber’s organization. The contents of the report are based upon data provided to Rubicon by third parties and the report is provided “as is.” Rubicon makes no representation expressed or implied regarding the accuracy or completeness of the contents of the report and the recipient of the report expressly assumes all risk, whether known to the Subscriber, in relying upon the contents of the report.

2. Where does information come from? 2

3. Rubicon Data Sources 3 This presentation is based on reservation data provided by hotel companies participating in Rubicon’s MarketVision® Demand Position product. The scope of the reporting: Four major brands All booking channels (direct, voice, travel agency, brand.com, online travel agency) 14 major US markets 94.5 million annual room nights $15.5 billion in annual room revenue Q1, 2009 – Q2, 2010 As of July 31, 2009

4. Size and Scope of Government Hospitality What do we know? Characteristics of reservations Certain metro areas Our definition of metro area Government transient segment What don’t we know? Behavior of travelers All cities, towns, rural areas CVB definition of metro area Government groups 4

5. What’s Happening with Government Hospitality? How is the hospitality industry doing overall? And how is government doing by comparison? How has government demand for hotels shaped up throughout the year, leading up to now? Is demand shifting? Growing or shrinking? What is the relative share of government hotel business, as compared to overall business? Corporate business? Is government hotel business as affected, more affected, or less affected by the current recession than overall hotel business? What are the current pricing conditions? Has pricing behavior changed? What do the upcoming months look like for government hotel business? 5

6. How is the hospitality industry doing overall? And how is government doing by comparison? 6

7. Performance Trends 7 Jan-July 2009 The above graph shows the variance % versus last year RevPAR, across all markets, for a rolling 365 day future horizon, as of the start of each week since January 1, 2009.

8. Performance Trends 8 Jan-July 2009 The above graph shows the variance % versus last year committed occupancy and ADR, across all markets, for a rolling 365 day future horizon, as of the start of each week since January 1, 2009.

9. How has government demand for hotels shaped up throughout the year, leading up to now? 9

10. Occupancy Outlook 10 Q1, 2009

11. ADR Outlook 11 Q1, 2009

12. Occupancy Outlook 12 Q2, 2009

13. ADR Outlook 13 Q2, 2009

14. Occupancy Outlook 14 Q3, 2009

15. ADR Outlook 15 Q3, 2009

16. Occupancy Outlook 16 YTD Summary

17. ADR Outlook 17 YTD Summary

18. Is demand shifting? Growing or shrinking? 18

19. Demand Shift 19

20. Revenue 20

21. Revenue – Future 21

22. Revenue vs. Room Nights – Future 22

23. What is the relative share of government hotel business, as compared to overall business? Corporate business? How is this shifting? 23

24. Share of Room Nights & Revenue – YTD 24

25. Share of Room Nights & Revenue – Future 25

26. What are the current pricing conditions?Has pricing behavior changed?How does pricing stack up as compared to government per diems? 26

27. 2009 Government Per Diem vs. Actual Pricing – Chicago 27

28. 2009 Government Per Diem vs. Actual Pricing – San Francisco 28

29. 2009 Government Per Diem vs. Actual Pricing – Washington DC 29

30. What do the upcoming months look like for government hotel business? 30

31. Currently, for the month of September, demand is up for both the government and transient sectors at 10.3% and 8.6%, respectively. Government ADR is down by 2.0% while transient ADR is down by 17.4%. 31

32. 12 Month Outlook by Month 32

33. In the current quarter, with 2 recent months and 1 future month, demand is up 19.1% and 6.4% for government and transient, respectively, and ADR is down by 3.8% and 17.9%, respectively. Not including September, Q3-2009 demand is up by 20.5% year over year while ADR is behind by 3.9%. 33

34. Occupancy Outlook 34 Q4, 2009

35. ADR Outlook 35 Q4, 2009

36. For the 3 future quarters, government room nights are up by 2.7% compared to same time last year while ADR is down by 3.0%. Transient excluding government, on the other hand, is down by 12.2% in room night demand versus same time last year with ADR down by 14.4%. 36

37. Conclusions Hotel demand has suffered significant declines in occupancy, ADR and RevPAR through the downturn. The government segment has been spared to some degree, compared to other hotel segments. The outlook for the remainder of the year is cautiously optimistic. 37

38. Thank you! Rubicon Christine DeZarn cdezarn@rubicongroup.com 38