Chicago Regional Hotel Outlook: March Update 2016

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1 Chicago Regional Hotel Outlook: March Update 2016

2 The Gold Room

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6 78% 76% 74% 72% 70% 68% 66% 64% 62% 60% Historic Trends from Occupancy Cycles Through History

7 How occupancy breaks down over the year average % 13.39% 16.44% 15.34% 90% 11.20% 12.05% 12.33% 85% 11.20% 12.60% 10.41% 80% 8.74% 7.95% 8.22% 75% 8.74% 4.11% 6.85% 70% 6.28% 6.30% 6.30% 65% 6.01% 6.85% 5.75% 60% 5.19% 4.11% 4.66% 55% 5.46% 3.84% 7.40% 50% 4.10% 4.11% 4.93% 45% 6.28% 3.56% 4.66% 40% 3.83% 5.48% 3.84% 35% 3.28% 4.38% 3.56% 30% 2.46% 5.48% 3.01% 25% 1.91% 1.10% 1.64% <25% 1.91% 1.64% 1.10% Occupancy by % of Year 40% 45% 50% 55% 60% 35% 30% 25% <25% % Over 100 days of > 90% occ 85% 90% 65% An additional 118 days are over 70% occupied 70% 75% 80%

8 $300 $250 $200 $150 $100 $50 $0 Chicago CBD Market Monthly ADR RevPAR Occ JanMarchMay July Sept Nov JanMarchMay July Sept Nov JanMarchMay July Sept Nov JanMarchMay July Sept Nov JanMarchMay July Sept Nov Jan 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100 Occ Yearly By DAY Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec Average

9 ADR Yearly By DAY $350 $300 $250 $200 $150 $100 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec Average RevPAR Yearly By DAY $350 $300 $250 $200 $150 $100 $50 $0 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec Average

10 Chicago Historic And Projected $250 ADR RevPAR Occupancy 80% $200 75% $150 70% 65% $100 60% $50 55% $0 50%

11 O Hare Market History vs. Airport Traffic Demand vs. % Airport Traffic 3,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000, % 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% Demand % Passengers 78,000,000 76,000,000 74,000,000 72,000,000 70,000,000 68,000,000 66,000,000 64,000,000 62,000,000 60,000,000 58,000,000 Demand Vs. Volume ,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 Passengers Demand

12 80% History and Projections of the Region 75% 70% 65% 60% 55% 50% South SouthWest North NorthWest O'Hare Chicago DuPage

13 Tentative List of Hotel development projects as of January 29, 2016 Ted Mandigo TR Mandigo & Co Managing Director Project Location Rooms Opening Date Recently Completed MPEA Hyatt Expansion McCormick Place 461 Jul 13 Langham IBM Building 361 Jul 13 White Lodging Grand and Illinois Fairfield Inn 180 Sep 13 Hyatt Place 212 Jul 13 Aloft 274 Sep 13 Hyatt Place Hyde Park $29 Million Godfrey Dearborn 221 Mar 14 Re opened/repositioned Hotel Lincoln 184 Sold for $45 Million in 2013 Sutton Place Now Thompson Hotel Amalfi Now Kinzie Hotel Doubletree/Hyatt Conversion Allerton Hotel Becomes a Warwick property Congress Discussion of Conversion to hotel/condominium residential Sax Marriott Autograph Hotel Crowne Plaza Mich. Ave. Now 225 Room Hampton Inn/127 room Homewood Suites AC by Marriott/State and Grand Formerly 217 room 4 Points by Sheraton Hotel rooms 48 Vacation Villas Freehand Hostel 217 room hostel LaQuinta Inn & Suites Conversion of Ramada Inn LSD 114 rooms Tokyo Hotel converted to Freehand Hostel 135 rooms, 80 shared rooms (217 total rooms End of Year ,049

14 2015 Openings SoHo House Hotel Green Street Mar Virgin Atlantic Republic Bank 250 Jan 15 Hyatt Centric The Loop Chase Plaza 257 Apr 15 Loews Hotel Streeterville 400 Mar 15 Hampton CAC Building 144 May 15 CAA Hotel Old CAA building 241 May 15 Hyatt Place 28 N. Franklin CAA Building Michigan Ave Hyatt Centric 100 W. Monroe Hampton Inn CAC Building Sterling Bay 311 Morgan Street Residence Inn 11 S. LaSalle Hyatt Place the Loop End of year , % Cumulative 39,959 Proposed NoBu Hotel Randolph and Peoria Indigo Atlantic Bank Building Ace Hotel West Loop London House Oxford Development LBGT Out Hotel 3343 Halsted Kimpton Hotel LaSalle Street Plans filed 208 S. LaSalle McCormick Place DePaul Arena Coyote Building Wicker Park Hilton Garden Adj. CAC 191 Oct 16 China Town Hotel Archer 101 Feb 16 Conrad Hotel 101 E. Erie St Optima 200 E. Illinois Kim Kuong Chong 2010 S. Archer Wrigleyville Hotel Clark Street VIB (BW) Midway Airport Jupiter Realty 108 N. Jefferson Purple Hotel/Spring Hill Suites Lincolnwood Total 3, % Cumulative 43,377

15 MPEA Marriott Marquis McCormick Place 1,200 Dec 17 Sheraton/Ricketts Wrigley Field 175 Apr 17 Old Post Office Post Office Medical District Ogden/Damen Old town Hotel 1528 N Wells Hilton Garden Inn Cermak Rd Hampton Inn Cermak Rd Home 2Suites Cermak Rd SoHo House New Hotel 850 W. Lake Autograph by Marriott 224 E. Ontario West Loop 590 W. Madison Lincoln Park Hotel Inn on Lincoln Park Wanda Group E. Wacker Dr Millennium Tower End of Residental tower Tishman Realty 237 E Ontario Navy Pier 150/225 Navy Pier MEPA Grupo Posadas/Dream Hotels West Loop Altera Hotels Albion and Sheridan Chatham Hotel 7600 S. State St Evan Hotel 181 N. Clark St Cambria Suites 32 W. Randolph St Holiday Inn Express/Staybridge Suites Wells and Congress Viceroy Hotel 1118 N. State St Wabash Ave Superior and Wabash N. Michigan New Development Total 6,175 Cumulative 49, %

16 Early Plans/Speculative 300 N. Michigan Walgreens 300?? Centerpoint McCormick Place 500?? Motor Row McCormick Place 200?? Pittsfield Building Old Post Office Who Knows? 500 Total 1,750 Dropped Old Crain's Building 759 N. Rush ` Trump Tower Parking Deck