2011 survey summary updated 10 2011

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2011 IAHI Membership SurveyKey Findings & Results

August 2011

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2011 IAHI Membership Survey Objectives

Gain better understanding of IAHI member perspectives on:

1. Satisfaction With IAHI Performance

2. Priorities for IAHI Owner Support

3. Current Economic Environment and Hotel Performance

4. Key IAHI Strategic Issues

5. Member IAHI Involvement

© IAHI Owners’ Association 2011 Member Survey

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Membership Survey Methodology

• Survey targeted entire IAHI membership• IAHI sent out online survey link in late May• Deadline for responses was late May, extended to early June• Response was highest ever:

• Response provided 4% margin of error at 95% confidence level• Individual questions analyzed separately, partial surveys included in

analysis

2008 2010 2011

Respondents 283 578 612

Completed 241 473 496

Completed % 85% 82% 81%

Non-US % 13% 29% 31%


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3091 Total Member Hotels

69%73%

13%

17% 7%3% 6%4%

2%1%

Members Respondents

Distribution Of Members and Respondents By RegionDistribution Of Members and Respondents By RegionDistribution Of Members and Respondents By RegionDistribution Of Members and Respondents By Region

Respondents representative of IAHI membership

477 Members*

Canada

Mexico

EMEA

United States

•Number of members responding to this question.Other - Q1: “What is your region?” * Total open hotels: 4380; Total Member hotels: 3091

Asia Pacific 0%

Australasia

Latin America 1%

Australasia

Canada

Mexico

EMEA

United States

1% Asia Pacific 2% Latin America


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Distribution Of Respondents By IHG BrandDistribution Of Respondents By IHG BrandDistribution Of Respondents By IHG BrandDistribution Of Respondents By IHG Brand

All Brands were well represented

3091 Total Member Hotels 477 Members*

0%

* Number of members responding to this question.


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82% of respondents were Owners

Role With IHG HotelsRole With IHG HotelsRole With IHG HotelsRole With IHG Hotels

Owner Only

Owner, Manage Hotels and Provide Third Party Services

Owner and Serve as GM

GM or Other Manager (Not Owner)

Third Party Management Co. (Not Owner)

Owner and Use Third Party Services

Other - Q3: “Please select which of the following best describes your role”


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65% of respondents are involved as Members only

Respondents by Involvement with IAHI Respondents by Involvement with IAHI Respondents by Involvement with IAHI Respondents by Involvement with IAHI

Involvement - Q1: “How do you currently participate in the IAHI?”

Member OnlyAmbassador Involvement (U.S. Only)

Committee Involvement

Country Committee Involvement (EMEA Only)

Officer Involvement Global Board Involvement


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2011 IAHI Member Survey Key Findings Summary

Economic Environment

Member hotels are performing much better and Owners are optimistic, thinking that financial performance will return to pre-recession levels in next 1-2 years.

Member Satisfaction

Members are much more satisfied with IAHI support, increasing from 64% to 79% Top 2 box, possibly partly due to the improvement of hotel performance. In particular, Owners are more satisfied with support of owner financial performance and guest experience.

Owner Support

Owners are now more focused on growth than on debt service. Two-thirds of Owners satisfied with results of Holiday Inn relaunch.

Owner Involvement with IAHI & IHG

Members are excited about 2011 Celebrate Service and employing Green Practices.

Many IAHI members want to increase their level of IAHI involvement, with particular interest in serving on an IAHI Committee.


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Key Findings – Economic Environment

Member hotels are performing much better than 2010 and Owners are optimistic, thinking that financial performance will return to pre-recession levels in next one to two years.

IAHI Members are doing much better than a year ago; half of Owners have made successful recovery or are well on the way

Many Members think return to pre-recession financial performance is still one to two years away


10© IAHI Owners’ Association 2011 Member Survey

Q: How is your business doing in the current economic environment?

*Based on Top 2 Satisfaction Ratings

Up 104% from 24% to

49%*2011

2010

IAHI Members are doing much better than a year ago; Half of Owners have made successful recovery or well on way

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Q: How long do you think it will take to hit pre-recession financial performance?

2011

2010


Many Members think return to pre-recession financial performance is still 1-2 years away

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Key Findings – Member Satisfaction

IAHI Internal Use Only - Proprietary and Confidential

Members are much more satisfied with IAHI support, increasing from 64% to 79% Top 2 box, possibly partly due to the improvement of hotel performance. In particular, Owners are more satisfied with support of owner financial performance and guest experience.

Overall IAHI member satisfaction increased from 64% (Top 2 Box) in 2010 to 79% in 2011

IAHI Members much more satisfied with IAHI support of owner financial performance and guest experience

Two-thirds of IAHI Members are very satisfied or satisfied with IAHI advocacy to IHG and to industry

Two-thirds of IAHI members feel their voice is heard by IAHI leadership

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Q: How satisfied are you with the overall performance of the IAHI?

Very Satisfied

Satisfied

Somewhat Satisfied

Dissatisfied

Not Very Satisfied

N/A

64% Top 2 Box

79% Top 2 Box


Overall IAHI member satisfaction increased from 64% (Top 2 Box) in 2010 to 79% in 2011

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Q: How satisfied are you with IAHI’s advocacy on your behalf with respect to IHG?

Up 16% from 56% in 2010*



2/3 of IAHI Members are very satisfied or satisfied with IAHI advocacy to IHG

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Q: How satisfied are you with IAHI’s advocacy on your behalf at the industry level?

Up 15% from 59% in 2010*



2/3 of IAHI Members are very satisfied or satisfied with IAHI advocacy to industry

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Q: How satisfied are you that your voice is heard to your IAHI leadership?

Very Satisfied

Satisfied

Somewhat Satisfied

Dissatisfied

Not Very Satisfied

N/A

New question for 2011 survey

67% Top 2 Box


2/3 of IAHI Members feel their voice is heard by IAHI leadership

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70%66% 64%

55%53% 52%

45% 43%

28% 28%

20%17%

Owneradvocacy to

IHG

Brandcommitteestandardsoversight

Long-termstrategic inputto IHG brands

IAHIComplimentary

Room NightP rogram

Oversight ofSystem Funds

P riority ClubRewards Elite

P latinumStatus Upgrade

Networking withyour peers and

IHG brandleaders at IAHI

events

IAHIeducationalprogramsoffered at

affordable rates

Website,www.iahi.org

Emails Monthly e-newsletters

OwnerMagazine

Q: Please rate the importance of the following existing or potential IAHI offerings.

Ratings based on these categories: Very important, Important, Somewhat Important, Not Important”.Graph displays only “Very Important” ratings.


Most important IAHI Member offerings relate to IHG interaction followed by networking, education, and communications

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Key Findings – Owner Support


Owners are now more focused on growth than on debt service.Two-thirds of Owners are satisfied with results of the Holiday Inn relaunch.

Top Owner challenges remain occupancy, room rates, and cash flow. However, compared to 2010, owners more focused on growth and than on servicing debt and refinancing

67% of IAHI Holiday Inn & Holiday Inn Express Owners are very satisfied or satisfied with Holiday Inn relaunch

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80%76%

70% 68% 66%58% 55% 54%

42% 41%37%

Drivingoccupancy

Managingaverage room

rates

Generatingenough cash

flow to servicedebt andperformcapital

improvmenets

Finding,developing

and retainingstrong

employees

Reducing costs Maintaining afully engaged

service culture

Developinggroup business

Increasingcosts related

to taxes,utilities,

payroll taxesor benefits

Finding newgrowth

opportunitiesto expand

hotel portfolio

Dealing withissues relatedto current debt

obligations

Concernsabout

upcomingrefinancing

needs

Q: Please rate each of the following challenges you face today.

Ratings based on these categories: Very important, Important, Somewhat Important, Not Important”.Graph displays only “Very Important” ratings.

Up more than 10% since 2010

Down more than 10% since 2010


Top challenges remain occupancy, room rates and cash flow. Compared to 2010, Owners more focused on growth than on servicing debt and refinancing

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Q: How satisfied are you with the results of the Holiday Inn relaunch?

Of Holiday Inn owners, 3% responded they have not completed re-launch.


67% of Holiday Inn & HI Express Owners are very satisfied or satisfied with Holiday Inn relaunch

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Key Findings –Involvement with IHG and IAHI


Many IAHI members want to increase their level of IAHI involvement. 37% would like to increase their level of IAHI involvement. Of those, 78% would like to serve on a committee and 27% would like to be

appointed to a Board position.

IAHI Members are very interested in participating in Green Engage 2.0, IHG’s program to reduce energy costs and create sustainable hotel practices.

64% plan to enroll in Green Engage 2.0 versus 39% who used Green Engage v1.0 87% are interested in employing green practices

Members were excited about 2011 Celebrate Service, a program fostered by IAHI in partnership with IHG to recognize the contributions of those who deliver guest service in their hotels.

Over 2/3 of Members participated in Celebrate Service, and of those who did, 75% were very satisfied or satisfied.

IAHI Members planning to participate in Celebrate Service rose from 50% in 2010 to 65% in 2011.

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Q: Did you participate in the Celebrate Service Program in 2010? How satisfied were you?

No

Yes

Satisfied

Very Satisfied

Somewhat Satisfied

N/ADissatisfied

Not Very Satisfied


Over 2/3 of Members participated in Celebrate Service. Of those who did, 75% were very satisfied or satisfied

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Q: Do you plan to participate in the Celebrate Service program in 2011?2011

2010


IAHI Members planning to participate in Celebrate Service went up from 50% in 2010 to 65% in 2011

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Q: Please answer the following questions with respect to the Green Engage program.

Graph reflects “Yes” answers.

High number of members plan to begin participating

in Green Engage 2.0


IAHI Members are very interested in participating in Green Engage 2.0 (64% versus 39% in v1.0) and in employing green practices (87%)

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Q: How much would you like to be involved with the IAHI?Q: In what ways would you like to be involved with the IAHI?

Desired Level of IAHI InvolvementDesired Level of IAHI InvolvementDesired Level of IAHI InvolvementDesired Level of IAHI Involvement

Like Current Level

Ways Wish to Be More InvolvedWays Wish to Be More InvolvedWays Wish to Be More InvolvedWays Wish to Be More Involved

Get More Involved

(same as 2010)

Be Less Involved


Up from 64% in 2010

Many Members would like to increase their level of IAHI involvement. Of those, 78% would like to be on a committee.

Business

2011 survey summary updated 10 2011