TRENDSIN THE CONFERENCE CENTER INDUSTRY

NORTH AMERICA 2015

A STATISTICAL AND FINANCIAL PROFILE

FACILITIES OPERATIONS PERFORMANCE

A CBRE COMPANY

HOSPITALITYRESEARCH

A CBRE COMPANY

CONSULTINGUSA

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®

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Table of Contents

Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

Residential Conference Centers

Revenue

Rates

Occupancy

Regional Summary

Market Segmentation

Meeting Statistics

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Table of Contents

ii Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

Human Resources

Sales and Marketing

Revenues and Expenses

Non-Residential Conference Centers

SAMPLE

Residential Conference Centers

5 Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

20.8%

12.5%

29.2%

37.5%

Sample By Classification

Executive

Corporate

Resort

College/Univ

PROFILE OF RESPONDENTS

27.3%

50.0%

4.5%

18.2%

Sample By Location

City

Suburban

Rural - Non Resort

Resort

Residential Conference Centers nationwide were surveyed and categorized by Size, Classification, and Location.

Source: PKF Hospitality Research | CBRE Hotels

16.7%

50.0%

33.3%

Sample By Room Count

Less Than 100

100 - 249

250 and above

Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels

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Residential Conference Centers

21 Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

DISTRIBUTION OF OCCUPIED ROOMS BY MARKET SEGMENT

59.6%

18.2%

16.3%

5.9%

All Centers

34.8%

19.8%

35.1%

10.3%

Executive

98.3%

1.7%

Corporate

61.2%

14.8%10.0%

13.9%

College/University

63.7%

23.1%

13.3%

Resort

34.8%

19.8%

35.1%10.3%

Conference

Leisure Transient

Commercial Transient

Other Transient

Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels

SAMPLE

Residential Conference Centers—Revenues and Expenses

42 Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

OPERATING PERFORMANCE BY CLASSIFICATION

PERCENT TOTAL REVENUES

*Data not comparable

Type of Conference Center

Executive Corporate ResortCollege/

University

RevenuesRooms 47.9% 39.4% 41.3% 45.7%Food 29.8% 42.8% 28.8% 38.5%Beverage 5.4% 0.8% 6.0% 3.4%Conference Services 11.6% 14.9% 9.6% 9.7%Transportation 0.5% 0.6% 0.7% 0.0%Telephone 0.0% 0.0% 0.3% 0.0%Recreation 0.0% 0.0% 2.3% 0.0%Minor-Operated Departments 3.3% 0.9% 5.5% 1.3%Other 1.4% 0.6% 5.4% 1.3%

Total Revenues 100.0% 100.0% 100.0% 100.0%

Departmental Expenses (% of Dept Revenue)

RoomsPayroll and Benefits 22.7% 17.4% 18.4% 19.6%Other 5.8% 5.2% 8.8% 8.6%

Total Room Expenses 28.5% 22.6% 27.3% 28.2%

Food & BeverageFood Cost 29.4% 22.0% 21.1% 24.5%Beverage Cost 22.3% 29.7% 20.6% 27.6%

Total Cost of Sales 28.3% 22.1% 21.1% 24.8%Payroll and Benefits 47.7% 27.3% 45.2% 40.4%Other 7.3% 4.3% 6.5% 6.0%

Total Food & Beverage Expenses 83.3% 53.8% 72.8% 71.2%

Conference ServicesPayroll and Benefits 40.1% 27.4% 32.5% 45.1%Conference Service Equipment 7.0% 8.6% 5.2% 2.8%Other 6.9% 5.2% 11.1% 3.9%

Total Conference Services Expenses 54.0% 41.2% 48.9% 51.8%

Total Transportation Expenses 125.6% 89.1% 135.0% 78.5%

Total Telephone Expenses NC* NC* 177.6% NC*

Total Recreation Expenses 0.0% 0.0% 101.0% 0.0%

Total Minor Operating Expenses 16.5% 61.8% 35.2% 67.7%

Total Departmental Expenses 51.3% 40.1% 47.0% 49.2%

Income Before Undistributed Operating Expenses 48.7% 59.9% 53.0% 50.8%

Source: PKF Hospitality Research | CBRE Hotels

SAMPLE

Residential Conference Centers—Revenues and Expenses

43 Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

OPERATING PERFORMANCE BY CLASSIFICATION (CONT’D)

PERCENT TOTAL REVENUES

Type of Conference Center

Executive Corporate ResortCollege/

University

Undistributed Operating Expenses

Administrative and GeneralPayroll and Benefits 8.9% 5.8% 5.7% 6.3%General Insurance (not property) 0.4% 0.2% 0.0% 0.5%Other 4.8% 1.8% 3.7% 3.1%

Total Administrative and General Expenses 14.2% 7.8% 9.4% 9.9%

Marketing ExpensesPayroll and Benefits 6.5% 2.8% 4.0% 3.4%Advertising and promotion 1.3% 0.5% 1.1% 1.0%Franchise fees & other assessments 0.6% 0.0% 0.1% 0.0%Other 1.7% 1.0% 2.0% 1.6%

Total Marketing Expenses 10.0% 4.4% 7.1% 6.0%

Total Energy Expenses 6.0% 6.7% 4.0% 5.1%

Property and MaintenancePayroll and Benefits 4.7% 7.3% 2.6% 2.6%Other 2.9% 2.8% 2.2% 3.5%

Total Property Maintenance 7.7% 10.1% 4.8% 6.1%

Total Undistributed Operating Expenses 37.8% 29.0% 25.3% 27.1%

Income Before Fixed Charges 10.9% 31.0% 27.7% 23.7%

Management Fees, Property Taxes and Insurance

Management FeesBase 2.1% 1.0% 1.9% 2.7%Incentive 0.9% 0.2% 0.1% 0.4%

Property Taxes 0.8% 2.3% 2.7% 0.4%Insurance 1.1% 0.1% 0.9% 0.7%

Total Management Fees, etc. 4.9% 3.6% 5.6% 4.1%

Income Before Other Fixed Charges 6.0% 27.4% 22.1% 19.5%

Source: PKF Hospitality Research | CBRE Hotels SAMPLE

Non-Residential and Ancillary Conference Centers

49 Trends® in the Conference Center Industry HOSPITALITYRESEARCH

A CBRE COMPANY

58.8%

29.4%

11.8%

Ownership

University / Non-Profit

Private Investor

Public Company

41.5%

12.2%

7.3%

17.1%

22.0%

All Centers - Mix of Survey Sample Non-Residential/Ancillary

Executive

Corporate

Resort

College/Univ

70.6%

23.5%

5.9%

Location of Centers in Sample

City

Suburban

Rural - Non Resort

PROFILE OF FACILITIES

OWNERSHIP

17.6%

52.9%

29.4%

Class of Centers in Sample

Corporate

University

Executive

Source: PKF Hospitality Research | CBRE Hotels Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels

Source: PKF Hospitality Research | CBRE Hotels

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