Hyatt Hotels Final 2 25 10 K

Lester Lie February 25, [email protected] Lodging

Hyatt Hotels Corporation (NYSE: H)

Recommendation: BUYCurrent stock price (2/25/10): $32.50

Target: $56.00

52-week range: $25.75 - $32.75 Shares Outstanding: 173.88 MMMarket Cap. (2/25/10): $5.65 B EV: $5.2 BFloat: 32% Avg. Vol. (3 mo.): 324,000Calculated Beta: 1.64 EBIT Margin: 1.4%; EBITDA Margin:

9.5%Cash per share: $7.63 Current Ratio: 4.02Debt/Assets: 12% EBIT/Interest Expense: 0.9

INVESTMENT THESIS

Hyatt Hotels is undervalued relative to its replacement cost and earnings power value. Comparing the Company’s hotel portfolio with hotel sales transactions from 2008 to 2010, I determined the replacement value of the portfolio was $5.3 billion. Combining the hotel portfolio replacement value with an estimation of the Company’s brand value, the total replacement cost of the firm was estimated at $8.5 billion. Furthermore, the Earnings Power Value (EPV), the value of the franchise was estimated at $1.3 billion. Combining the replacement cost estimate with EPV, Hyatt Hotels was estimated at $9.9 billion or $56.66 per share.

Hyatt Hotels is poised to grow both domestically and internationally. Hyatt Hotels is dwarfed by its competitors in terms of the total number of hotels owned and franchised, the percentage of total hotels franchised, and the number of international hotels it owns and franchises. The Company’s debt to total assets is 12% while the average of its closest competitors’ debt to total assets is 37%. Similarly, Hyatt’s cash ratio is 2.68 while its closest competitors’ cash ratio is 0.15. This liquidity and low leverage enables the Company to actively acquire hotels and hotel portfolios as well as form partnerships with third-party developers in new markets. RISKS

Challenges in determining value of international portfolio and brand equity


Unclear how Hyatt Hotels will grow the hotel portfolio in terms of company-owned and franchise mix

Higher operating leverage than its peers because it owns 53% of its hotels while Starwood and other hotel companies own 35% and 17%, respectively

Family conflict could continue to distract the operation of the business


Company DescriptionHyatt Hotels Corporation (“Hyatt Hotels” or “the Company”) is a global hospitality company that manages, franchises, owns, and develops Hyatt-branded hotels, resorts, residential, and vacation ownership properties around the world. Under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Summerfield Suites, Hyatt Place, and Andaz brands, the Company’s worldwide portfolio consists of 424 Hyatt-branded properties (122,317 rooms and units). For the years ending December 31, 2009 and 2008, Hyatt derived approximately 80% of its revenues from operations in the US. Hyatt Hotels employs 45,000 people; third-party owners and hotel franchisees employ an additional 80,000 people. Hyatt Hotels is headquartered in Chicago and was founded in 1957.

INVESTMENT THESIS

Hyatt Hotels is Undervalued Compared With Replacement Cost and Earnings Power Value.

Reproduction Cost Analysis

Property & EquipmentHyatt Hotels has 37,486 rooms that are owned by the Company. Approximately 84% or 31,362 rooms are located in the US. Hyatt Hotels’s most recent balance sheet understates the value of its Property & Equipment. The reported amount is recorded at historic cost rather than at current market value. For each of the properties Hyatt Hotels has an ownership interest, I reviewed sales transactions on LoopNet.com largely between 2008 and 2010 and estimated the value of the Hyatt property. Based on a review of hundreds of sales transactions, I estimated the value of the domestic hotel portfolio. I tried to use as many transactions from 2008 to 2010 as possible. Properties sold prior to 2008 were discounted based on estimates of property value declines for that region. Cities in the Midwest, Texas, and the Great Plains states do not have significant discounts while those in coastal cities have larger discounts. For ownership interests under 50%, I applied an additional 15% discount to the value of the property. The value of the domestic hospitality portfolio is $3.7 billion. (See Appendix F)


Hyatt Hotels’s international portfolio of company-owned hotels represents 16% of its total company owned rooms. For the years ending December 31, 2009 and 2008, Hyatt Hotels derived approximately 80% of its revenues from operations in the US. These hotels are in many major global cities including London and Paris as well as Bishkek, Kyrgyzstan and Baku, Azerbaijan. Since data for international hospitality transactions is much harder to locate, I valued the hotels based on a multiple of the price per room at the Grand Hyatt New York. First, I determined the standard room rate on April 30, 2010 for all the hotels in the portfolio; then I converted the room rate from local currency to US dollars. Comparing the dollar room rate with that of the Grand Hyatt New York, I applied this “room rate multiple” to the price per room at the Grand Hyatt New York to determine the price per room of a given hotel and then the value of the entire hotel. According to this analysis, the value of the international portfolio is $1.6 billion. (See Table 1)


Hyatt Hotels CorporatonReproduction Cost Analysis

Reproduction ($ in millions) 2009 Adjustment CostAssets:

Cash and cash equivalents 1,327$ 100% 1,327$ Restricted cash 11 100% 11 Receivables, net of allowances 226 80% 181

Inventories(1) 133 85% 113 Prepaids and other assets 184 100% 184 Prepaid income taxes 85 100% 85 Deferred tax assets 23 100% 23

Total Current Assets 1,989$ 1,924$

Investments(2) 223 65% 145 Property and equipment, net 3,605 5,569

US hotels 3,786$ International 1,783$

Notes receivable, net of allowances 385 60% 231 Goodwill 113 0% -

Intangibles, net (3) 284 0% 2,184 Deferred tax assets 74 100% 74

Other assets(4) 482 100% 482 Total assets 7,155$ 10,608$

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:Current maturities of long-term debt 12$ 100% 12$ Accounts payable 196 100% 196 Accrued expenses 183 100% 183 Accrued income taxes 5 100% 5 Accrued compensation and benefits 99 100% 99 Liabilities of discontinued operations - 100% -

Total Current Liabilities 495$ 495$ Long-term debt 840 100% 840 Other long-term liabilities 780 100% 780 Total liabilities 2,115$ 2,115$

Stockholders' equity 5,040$ 8,493$

Total Liabilities & Stockholders' Equity 7,155$ 10,608$

(1) Unsold vacation ownership intervals; food and beverage inventories(2) Unconsolidated hospitality ventures(3) Ignore reported Intangibles; assume it takes 5 years to build the Hyatt brand from scratch(3) Marketable securities held for Gold Passport Fund, deferred compensation plans


Table 1International Portfolio Value Analysis

Room Rate Exchange Room Rate Multiple of Type City Country Rooms Ownership (LC) 4/ 30/ 10 Rate (2/ 25/ 10) (USD) 4/ 30/ 10 NY Rate Price/ Room Value of HotelAndaz London England 267 100% 299 1.5317 458 1.5317 583,625$ 155,800,000$ Park Hyatt Paris France 167 100% 560 1.3489 755 2.5264 962,625 160,800,000 Park Hyatt Toronto Ontario 346 100% 330 0.9447 312 1.0427 397,298 137,500,000 Hyatt Regency Kyoto Japan 189 20% 49,600 0.0112 554 1.8545 706,619 26,720,000 Grand Hyatt Mumbai India 547 50% 11,000 0.0216 237 0.7940 302,539 82,750,000 Park Hyatt Zurich Switzerland 142 100% 480 0.9218 442 1.4798 563,867 80,100,000 Park Hyatt Milan Italy 167 30% 480 1.3489 647 2.1655 825,107 41,340,000 Hyatt Regency Palm Beach Aruba 357 100% 304 1.0167 387,403 138,300,000 Grand Hyatt Sao Paolo Brazil 466 50% 900 0.5466 492 1.6453 626,904 146,050,000 Hyatt Regency Vancouver Canada 644 100% 394 0.9447 372 1.2449 474,350 305,500,000 Hyatt Regency Seoul S. Korea 601 100% 220000 0.0009 189 0.6326 241,031 144,900,000 Hyatt Bali Indonesia 386 10% 140 0.4682 178,409 6,890,000 Grand Hyatt Bali Indonesia 648 10% 190 0.6355 242,127 15,690,000 Park Hyatt Mendoza Argentina 186 50% 735 0.2546 187 0.6259 238,484 22,200,000 Park Hyatt Baku Azerbaijan 159 100% 270 0.8000 216 0.7224 275,260 43,800,000 Hyatt Regency Baku Azerbaijan 182 100% 270 0.8000 216 0.7224 275,260 50,100,000 Hyatt Regency Bishkek Kyrgyz 178 87% 295 0.9866 375,934 58,203,000 Park Hyatt Jeddah Saudi Arabia 142 8% 1100 0.2667 293 0.9810 373,789 4,248,000

Total: 5,774 Total Asset Value of Hotel: 1,620,891,000$

Source: Company reports

Goodwill & IntangiblesGiven the uncertain nature surrounding the value of the Company’s intangibles, I assigned a value of zero to both Goodwill and Intangibles. Nonetheless, I attempted to value the cost a new entrant would need to spend to become a competitor and build the brand. Considering the introduction of the W Hotels in 1998, I estimated that it would take at least 8 years to build a competitor with the same reputation for quality and service as Hyatt Hotels in the US and abroad. Taking the 3 year average of Selling, General, & Administrative or $273 million (Table 2), I estimated this intangible value by multiplying it by 8 years. The Intangible Asset Value was estimated at $2.2 billion.

In addition to taking discounts on Hyatt Hotels’s receivables, inventories, investments, and notes receivable worth $297 million, I determined that the replacement value of the Company was $10.6 billion. Deducting Total Liabilities of $2.1 billon, the equity value of the Company’s assets was $8.5 billion. (Reproduction Cost Analysis above)

Earnings Power ValueIn order to determine what Bruce Greenwald describes as “the franchise value from current competitive advantage,” I determined the Earnings Power Value by first determining the EBIT – after tax adjusted (EBIT-ATA) then using weighted average cost of capital to obtain the value.



Table 2

EBIT - after tax adjusted 3 Year ($ in millions) 2007 2008 2009 AverageEBIT 385.0$ 364.0$ 48.0$ Tax rate 35% 35% 35%EBIT after tax 250.3$ 236.6$ 31.2$ D&A 214.0 249.0 270.0 CapEx (377.0) (258.0) (216.0) EBIT after tax adjusted (EBIT-ATA) 87.3$ 227.6$ 85.2$ 133.4$

EBIT-ATA as a % of Total Revenues 2.3% 5.9% 2.6% 3.6%

Applying a weighted average cost of capital of 10.2% and adding the Replacement Value determined above, I obtained a Total Value range of $9.4 - $9.9 billion or $53.84 - $56.66 per share. (Table 3)

Table 3

Earnings Power Value & Total Value AnalysisAvg. EBIT-ATA 3 Year Avg.

($ in millions) Current (1) as % Rev. (2) EBIT-ATA (3)

EBIT after tax adjusted 85.20$ 120.21$ 133.4$ WACC 9.8%EPV 868$ 1,224$ 1,358$ Asset Value 8,493 8,493 8,493 Total Value 9,361$ 9,718$ 9,852$ Shares Outstanding 173.88 Price per share 53.84$ 55.89$ 56.66$

(1) Used the EBIT-ATA for the fiscal year ending 2009(2) Determined by multiplying 3 year average of EBIT-ATA margin with 2009 revenues(3) Determined by using the 3 year average of EBIT - ATA

Hyatt Hotels is poised to grow both domestically and internationally

Hyatt Hotels global footprint is much smaller than competitors

Compared to its closest competitors, Hyatt Hotels is dwarfed both in terms of the number of hotels and rooms in its hotel portfolio. As of December 31, 2009, Hyatt Hotels had 424 hotels and 122,317 rooms in its entire hotel portfolio (Table 4). Its average competitor had four times as many rooms and ten times as many hotels. This can be explained by the fact that Hyatt Hotels has


concentrated on the full-service segment of the market. Eighty-two percent of its hotels are full-service and 53% of its revenues are derived from company-owned properties. In terms of business strategy, Starwood Hotel & Resorts is the Company’s closest competitor. Both companies have nearly 300 rooms per hotel which reflects the typical size of a full-service hotel. For instance, the Hyatt Regency Scottsdale has 492 rooms while the Grand Hyatt New York has 1,311 rooms.

Starwood Hotels & Resorts has more than twice the number of hotels and 34% of its revenues are derived from company-owned properties. If Hyatt Hotels were to mimic the footprint and level of franchisees in its portfolio, then the Company could more than double in terms of hotel portfolio size alone.

Currently, 25% of the Company’s hotels are located outside the US and are flagged largely as either Grand Hyatt, Park Hyatt, or Hyatt Regency hotels. This suggests there is significant opportunity to continue growing the full-service brands to international cities and/or develop limited service brands such as Hyatt Place in secondary markets. Hyatt Hotels announced on April 18, 2010 that it was planning to open 15 new hotels in India under the Park Hyatt, Grand Hyatt, Hyatt Regency, and Hyatt brands.

If Hyatt Hotels pursued a strategy similar to Marriott International and InterContinental Hotels Group with portfolios more evenly spread across the luxury, full-service, and limited service segments, then Hyatt could quadruple in size. Given Hyatt Hotels’s focus on the upper-end of each segment it operates in, I believe this scenario is unlikely.

Table 4Mkt Cap Total Total Avg. Rooms Rev. Owned

Company ($MM) Hotels Rooms per Hotel as % Total Rev.Marriott International 9,745$ 3,457 603,009 174 9%Starwood Hotels & Resorts 7,078 992 298,500 301 34%InterContinental Hotels 4,069 4,438 646,679 146 36%Wyndham Worldwide 4,043 7,114 597,674 84 5%Choice Hotels International 1,960 6,021 487,410 81 1%

Mean 5,379$ 4,404 526,654 157 17%Median 4,069 4,438 597,674 146 9%

Hyatt Hotels Corporation 5,651$ 424 122,317 288 53%



Liquidity and Low Debt Enables Hyatt Hotels to Act Quickly

In November 2009, Hyatt Hotels completed an initial public offering. This provided the company with a substantial cash position. Currently, Hyatt Hotels has a cash ratio of 2.68 while the mean for its peers is 0.15 (Table 5). Though the Company’s interest coverage was 0.9, Hyatt Hotels’s cash position of $1.3 billion enables the Company to comfortably pay any shortfall on its interest expense which was $56 million in 2009.

Hyatt Hotels also had a debt to total assets ratio of 12% while most its peers had three times as much leverage. This difference suggests that the Company can still comfortably add debt to its capital structure. Combining the high cash ratio and the low debt level, Hyatt Hotels is in a good financial position to make acquisitions using a combination of cash and debt without weakening its financial position.

Table 5: Liquidity and Solvency Ratios

EBIT/ Current Cash Hotels Int. Exp. Debt/ Assets D/ E Rato RatioMarriott International NM 37% 24% 1.30 0.05 Starwood Hotels & Resorts 0.11 34% 29% 0.74 0.04 InterContinental Hotels NM 39% 22% 0.40 0.04 Wyndham Worldwide 5.21 38% 71% 0.92 0.08 Choice Hotels International 33.55 82% 12% 0.97 0.51

Mean 13.0 46% 32% 0.87 0.15 Median 5.2 38% 24% 0.92 0.05

Hyatt Hotels Corporation 0.9 12% 12% 4.02 2.68


RISKS

Challenges in determining value of international portfolio and brand equity

Unclear how Hyatt Hotels will grow the hotel portfolio in terms of company-owned and franchise mix

Higher operating leverage than its peers because it owns 53% of its hotels while Starwood and other hotel companies own 35% and 17%, respectively

Family conflict could continue to distract the operation of the business


BUSINESS BACKGROUND

Hyatt Hotels Corporation is a global hospitality company that manages, franchises, owns, and develops Hyatt-branded hotels, resorts, residential, and vacation ownership properties around the world. Under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, and Andaz brands, the Company’s worldwide portfolio consists of 424 Hyatt-branded properties (122,317 rooms and units). For the years ending December 31, 2009 and 2008, Hyatt derived approximately 80% of its revenues from operations in the US. As of December 31, 2009, Hyatt’s hotel portfolio breakdown is as follows: 162 managed properties (63,062 rooms) – Hyatt

Hotels operates under management agreements with third-party property owners

109 franchised properties (16,607 rooms) – owned by third parties that have franchise agreements with Hyatt Hotels and are operated by third parties

96 owned properties (including 4 consolidated hospitality ventures) (25,765 rooms) and 6 leased properties (2,851 rooms), all of which Hyatt Hotels manage

26 managed properties owned or leased by unconsolidated hospitality ventures (11,746 rooms)

15 vacation ownership properties (962 units) managed by Hyatt Hotels

10 residential properties (1,324 units) – all managed by Hyatt Hotels and some are owned by Hyatt

On November 10, 2009, the company was listed on the New York Stock Exchange. Nearly 80% of the Company is controlled by the Pritzker family in the form of Class B shares which have 10 times the voting power of Class A shares. Thus, while Class B shares represent 60.3% of outstanding shares, they also represent 80% of the total voting power. Long-standing disagreements within the Pritzker family prompted the initial public offering to provide liquidity to various members.

HistoryIn 1957, Jay Pritzker purchased the Hyatt House motel near the Los Angeles International Airport. Along with his brother, Donald Pritzker, the two built the company to include several modest hotels along the West Coast and Chicago. The Company went public in 1962.

In 1967, Hyatt opened Hyatt Regency Atlanta which featured a 21-story atrium lobby. A year later, the


Company formed Hyatt International Corporation and opened the Hyatt Regency Hong Kong in 1969. Eventually, Hyatt International Corporation became a separate public company. Throughout the 1970s, the Hyatt portfolio of hotels grew. In 1980, the Company introduced the Grand Hyatt and Park Hyatt brands. By 1982, the Pritzker family interests took both companies private.

Family IssuesHyatt Hotels previously was closely held by Pritzker family. Financial tensions among four generations of Pritzkers are rumored to have prompted the initial public offering. Rumors emerged that certain family members believed they were not adequately compensated for their trust fund interests. In 2002, 18 year old Liesel Pritzker filed a $6 billion suit against Robert Pritzker and her 11 older cousins charging that they had misappropriated funds from trusts for her and her brother. The suit was settled in 2005 with the Pritzker fortune distributed among her 11 older cousins. Tensions also appear to have arisen from misgivings regarding how the family’s other business interests were operated. The initial public offering provided a liquidity event for the various Pritzker interests.

Brands

Park Hyatt (Full-service/Luxury): These hotels offer a high level of personalized service to their individual business and leisure travelers. Situated in many of the world’s finest cities, the 26 Park Hyatt hotels offer restaurants from award-winning chefs, may have spa facilities, and are decorated by paintings and sculptures from contemporary artists such as Gerhard Richter and Ed Paschke. The Company describes their competitors as the Four Seasons, Ritz-Carlton, Peninsula, St. Regis, and Mandarin Oriental hotels. As of December 31, 2009, they represented 4% of the Company’s total rooms with 1,122 rooms in North America and 3,779 rooms internationally. Below is a list of the Park Hyatt hotels across the globe (bold-faced cities are 100% fully owned by Hyatt Hotels):


Chicago Shanghai Beaver Creek SeoulBaku,

AzerbaijanBuenos Aires

Melbourne Milan

Paris Istanbul Saigon Washington DC

Zurich Dubai Moscow GoaToronto Canberra Jeddah, Saudi

ArabiaMendoza

Hamburg Tokyo Sydney Beijing


Andaz (Full-service/Upper upscale): Boutique hotels that have approximately 250 rooms. Currently, there are five hotels (Liverpool Street in London, Wall Street and Midtown locations in New York, Downtown San Diego, West Hollywood in Los Angeles) and they make up approximately 1% of the Company’s total rooms. These hotels cater to individual business and leisure travelers as well as offer venues for small meetings. The Company describes their competitors as the W Hotels, Mondrian, The Standard. Currently, there are 34 W Hotels in the US and 18 international locations.

Grand Hyatt (Full-service/Upper upscale): These hotels cater to global business and leisure travelers in major cities and resort destinations. Grand Hyatt hotels may contain technology centers, spa and fitness centers, and business meeting facilities. As of December 31, 2009, these hotels represented 18% of the Company’s total hotel rooms and units. The Company describes their competitors in this category as Mandarin Oriental, Shangri-La, InterContinental, and Fairmont Hotels.

Hyatt Regency and Hyatt (Full-service/Upper upscale): Hyatt Regency hotels cater to conventions, business travelers, and resort vacationers. Hotel sizes can vary from as few as 200 rooms to over 2,000 rooms. These hotels are often located in urban, suburban, airport, convention, and resort destinations. “Hyatt” branded properties typically have between 150 and 300 rooms and are located in secondary markets. Hyatt Regency and Hyatt hotels represent the Company’s core business. As of December 31, 2009, they represented 58% of Hyatt Hotels Corporation’s total rooms. The Company regards Marriott, Sheraton, Hilton, Renaissance, and Westin hotels as their main competition.

Hyatt Place (Select Service/Upscale): Located in urban, airport, and suburban areas, Hyatt Place hotels are a


new concept in the Hyatt portfolio that target business travelers. They represent 15% of the rooms in the Hyatt portfolio. Each of these facilities feature The Gallery, a coffee and wine bar and a guest kitchen that operates 24/7. The kitchen offers freshly prepared appetizers, soups, salads, sandwiches and breakfast, lunch and dinner entrees including waffles, grilled chicken quesadillas, buffalo chicken wraps, and 8” pizzas. Breakfast is complimentary. These hotels typically have between 125 and 200 rooms and are located. Courtyard by Marriott and Hilton Garden Inn are considered competitors.

Hyatt Summerfield Suites (Select Service/Extended Stay): These 125 to 200 room, all-suite properties aim to provide individual and business travelers a condominium-type experience. Each suite is configured as either a one or two bedroom and offers a fully equipped kitchen, 32” flat panel HDTVs, and free access to high speed Internet access. Properties may include a pool, barbeque grill, fitness center and business center. Monday through Thursday there is a complimentary Evening Social that provides residents a chance to mingle with other guests and hotel associates. Hyatt Summerfield Suites represent 3% of the Hyatt Hotels portfolio.

Table 6: Major Shareholders

Holder % Outstanding

Goldman Sachs Group

28.86%

FMR LLC 11.60%Lord Abbett & Company

9.05%

BAMCO Inc. 8.20%AXA 6.70%Pershing Square C.M. 6.31%Oppenheimer Funds Inc.

5.66%

Source: Yahoo! Finance

INDUSTRY BACKGROUNDHyatt Hotels participates in a very competitive landscape that is segmented by class and the level of service. In addition to independent hotel and motel operators, several large corporations and real estate investment trusts operate hospitality companies including:

Table 7


Mkt Cap Total Total LTM 2009 Avg. Rooms Company ($MM) Hotels Rooms Rev. ($MM) Rev Growth per HotelMarriott International 9,745$ 3,457 603,009 10,908$ -15% 174Starwood Hotels & Resorts 7,078 992 298,500 4,712 -18% 301InterContinental Hotels 4,069 4,438 646,679 1,538 -19% 146Wyndham Worldwide 4,043 7,114 597,674 3,750 -12% 84Choice Hotels International 1,960 6,021 487,410 564 -12% 81

Mean 5,379$ 4,404 526,654 4,294$ -15% 157Median 4,069 4,438 597,674 3,750 -15% 146

Hyatt Hotels Corporation 5,651$ 424 122,317 3,332$ -13% 288



Table 8: US Market Size and Chain ScaleAvg.Hotel

Chain Scale Brand Examples Rooms % of Total Room SizeLuxury Four Seasons, Ritz Carlton 107,372 2.2% 304Upper Upscale Marriott, Hilton, sheraton 600,711 12.4% 367Upscale Hilton Garden Inn, Courtyard Cambria Suites 507,481 10.5% 146Midscale w/ F&B Quality, Clarion, Holiday Inn, Best Western, Ramada 510,066 10.6% 112Sub-Total Full Service 1,725,630 35.7% 173Midscale w/ o F&B Comfort, La Quinta, Baymont Inn, Hampton Inn 824,018 17.1% 87Economy Econo Lodge, Days Inn, Super 8, Red Roof Inn 765,527 15.8% 76Sub-Total Limited Service 1,589,545 32.9% 81Independents 1,515,573 31.4% 67Total All Hotels 4,830,748 100.0% 93

Source: Smith Travel Research (December 2009)

RevenueHospitality companies generate revenues from a combination of the income generated by the hotels they own, income earned from managing properties owned by third parties, and franchise income from properties owned and managed by third-parties.

Owned and leased hotels permit the owner to enjoy all the benefits of increased profitability and all the downside risk of declining profitability. They are an unlevered bet on the hospitality industry. In these hotels, the owner is responsible for the costs and capital expenditures associated with operating them. The cost structure of a typical hotel is more fixed than variable, so as demand and room rates increase over time, the pace of increase in operating profits typically is higher than the pace of increase of revenues.

Management and franchise agreements allow hospitality companies to generate higher overall returns on invested capital because the capital investment under a typical management or franchise agreement is not significant. Third-party owners usually provide the capital necessary to build and maintain the hotels. They also pay a base amount calculated from the revenues of the hotel and an incentive fee that is a percentage of hotel profits – usually no more than 20% of profits. The actual percentage is determined by the terms of the management agreement. Thus, the franchisor does not share in all the benefits of increases in property profits during periods of higher demand and room rates. Third-party owners also pay an initial application fee and ongoing royalty fees based on a percentage of the gross room revenues.


State of IndustryIn 2009, the hospitality industry suffered significant year over year declines in occupancy (480 bps) and the average daily room rate (8.8%) which both contributed to a 16.7% decline in revenue per available room (RevPAR).


Table 9: Hospitality RevPAR and Profits 1997 – 2009

48%

52%

56%

60%

64%

68%

1997 2000 2003 2006 2009

Occ

upan

cy

$60

$70

$80

$90

$100

$110

Avg

. Dai

ly R

ate

Occupancy ADR

Source: Smith Travel Research (December 2009)

Comparable Companies Analysis

ProfitabilityHyatt had a negative net margin in 2009, an EBIT Margin of 1.4% and an EBITDA margin of 9.5%. The mean net margin for other hotel companies was 10.2%, 8.4%, and 12.7%, respectively; the mean net margin for hotel REITs was 0.2%, 0.2%, and 15.6%.

ValuationHyatt was trading at 2.15 times 2009 revenues, 1.42 times reported book value, and EV/EBITDA was 21.1. The mean P/S, P/BV, and EV/EBITDA for other hotel companies were 2.42, 13.37, and 43.5, respectively. For Hospitality REITs, the mean P/S was 2.49, the mean P/BV was 1.43, and the median EV/EBITDA was 20 times.

Table 10: Valuation Multiples

$40

$45

$50

$55

$60

$65

$70

1997 2000 2003 2006 2009

$10

$15

$20

$25

$30

$ B

RevPAR Profits ($B)


Mkt Cap EV/ Company ($MM) EV P/ S P/ BV EBITDAMarriott International 9,745$ 12,896$ 0.9 9.1 390.8 Starwood Hotels & Resorts 7,078 9,946 1.5 3.8 29.7 InterContinental Hotels 4,069 7,410 1.1 1.5 9.6 Wyndham Worldwide 4,043 2,169 3.5 NM 13.9 Choice Hotels International 1,960 5,151 2.6 27.3 52.0 Mean 5,379$ 7,515$ 1.9 Median 4,069 7,410 1.5

Hyatt Hotels Corporation 5,651$ 5,176$ 1.7 1.1 16.3



Table 11: Profitability RatiosRevPAR RevPAR EBIT EBITDA Net

Hotels 2009 2008 Margin Margin Margin ROA ROEMarriott International 97$ 120$ -0.1% 1.6% NM NM NMStarwood Hotels & Resorts 129 172 0.6% 7.1% 1.5% 0.8% 0.7%InterContinental Hotels NA NA -0.7% 6.4% 13.8% 7.4% 4.3%Wyndham Worldwide 54 64 15.8% 20.6% 7.8% 3.1% 5.9%Choice Hotels International 35 41 26.2% 27.7% 17.4% 28.9% 4.2%

Mean 78.65$ 99.31$ 8.4% 12.7% 10.2% 10.1% 3.8%Median 75.29 92.18 0.6% 7.1% 10.8% 5.2% 4.2%

Hyatt Hotels Corporation 100.87$ 123.89$ 1.4% 9.5% NM NM NM



Appendix ACompetitors

Marriott International Inc. (603,009 rooms, LTM Revenues: $11.0 billion) Luxury Brands: The Ritz-Carlton, Bulgari Hotels & Resorts Full-Service Brands: Marriott Hotels & Resorts, JW Marriott, Renaissance

Hotels Limited Service Brands: Courtyard By Marriott, Fairfield Inn & Suites by

Marriott, Springhill Suites by Marriott, Residence Inn by Marriott, TownePlace Suites by Martiott, Marriott ExecuStay

Starwood Hotels & Resorts Worldwide Inc. (298,500 rooms, LTM Revenues: $4.7 billion)

Luxury Brands: St. Regis, Luxury Collection Full-Service Brands: W Hotels, Sheraton, Le Meridien, Aloft Limited Service: Four Points

Wyndham Worldwide Corporation (593,300 rooms, LTM Revenues: $3.8 billion) Full-service: Wyndham Hotels and Resorts, Wingate by Wyndham, Ramada

Inn, Baymont Inn & Suites, Howard Johnson (International) Limited Service: Days Inn, Super 8, Microtel Inns & Suites, Howard Johnson

(North America), Travelodge, Knights Inn, Hawthorne Suites

InterContinental Hotels Group plc (646,679 rooms, LTM Revenues: $1.5 billion) Full-Service Brands: InterContinental, Crowne Plaza, Holiday Inn, Hotel

Indigo Limited Service Brands: Holiday Inn Express, Staybridge Suites,

Candelwood Suites

Choice Hotels International Inc. (487,410 rooms, LTM Revenues: $564 million) Full-Service Brands: Ascend Collection, Clarion Limited Service Brands: Cambria Suites, Comfort Inn, Comfort Suites, Sleep

Inn, Quality Inn, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn



Appendix B:

Hyatt Hotels- Historical and Projected Income Statement($ in millions, except per share data)

2007 2008 2009 2010 2011 2012 2013Revenues

Owned and leased hotels 2,039$ 2,139$ 1,782$ 1,900$ 2,025$ 2,157$ 2,255$ Management and franchise fees 315 290 223 238 253 270 282 Other fees 103 83 49 52 56 59 62 Other revenues from managed properties 1,281 1,325 1,278 1,362 1,452 1,547 1,617

Total Revenues 3,738$ 3,837$ 3,332$ 3,552$ 3,786$ 4,034$ 4,216$ Cost of Owned and Leased Hotels 1,524 1,583 1,462 1,491 1,551 1,612 1,643 Gross profit 2,214$ 2,254$ 1,870$ 2,061$ 2,235$ 2,422$ 2,573$

Gross profit margin (%) 59.2% 58.7% 56.1% 58.0% 59.0% 60.0% 61.0%

Operating Expenses:Depreciation and amortization 214$ 249$ 270$ 241$ 256$ 273$ 286$ Other direct costs 42 26 13 26 28 29 31 SG&A 292 290 261 275 293 312 326 Other costs from managed properties 1,281 1,325 1,278 1,362 1,452 1,547 1,617

Total Operating Expenses 1,829$ 1,890$ 1,822$ 1,904$ 2,029$ 2,162$ 2,259$ Operating income (EBIT) 385$ 364$ 48$ 158$ 206$ 260$ 314$

Operating margin (%) 10.3% 9.5% 1.4% 4.4% 5.4% 6.4% 7.4%

Net (losses) gains and interest income from mktble sec. 15 (36) 29 - - - - Equity earnings from unconsol. hospitality ventures 11 14 (13) - - - - Interest expense (43) (75) (56) (43) (43) (43) (43) Gains on sales of real estate 22 - - - - - - Asset impairments (61) (86) (15) - - - - Other income, net 145 23 (48) - - - - Pretax income 474$ 204$ (55)$ 115$ 163$ 216$ 270$ Income taxes (208) (90) 10 (40) (57) (76) (95)

43.9% 44.1% 18.2% 35.0% 35.0% 35.0% 35.0%

Income from continuing operations 266$ 114$ (45)$ 74$ 106$ 141$ 176$ Discontinued operations

Income from disc. operations, net of tax 3 1 (1) - - - - Gain (loss) on sale of disc. operations, net of tax 2 55 - - - - -

Cumulative effect of change in accounting principle - - - - - - - Net income 271$ 170$ (46)$ 74$ 106$ 141$ 176$ Net (income) attributable to noncontrolling interests (1) (2) 3 - - - - Net income attributable to Hyatt Hotels Corp 270$ 168$ (43)$ 74$ 106$ 141$ 176$ Net Margin (%) 7.2% 4.4% NM 2.1% 2.8% 3.5% 4.2%

Depreciation & Amortization 214 249 270 241 256 273 286 EBITDA 599$ 613$ 318$ 398$ 462$ 533$ 599$

EBITDA Margin (%) 16.0% 16.0% 9.5% 11.2% 12.2% 13.2% 14.2%

Income Statement Assumptions and Drivers:

RevenuesADR 173$ 178$ 154$ 162$ 170$ 178$ 184$

y-o-y change (%) 2.9% -13.5% 5.0% 5.0% 5.0% 3.0%

Occupancy 67.70% 69.60% 65.50% 66.50% 67.50% 68.50% 69.50%RevPAR 117$ 124$ 101$ 108$ 115$ 122$ 128$

y-o-y change (%) 5.8% -18.6% 6.6% 6.6% 6.6% 4.5%

Owned & Lease Hotels as % of Revenues 40.8% 41.3% 43.9% 42.0% 41.0% 40.0% 39.0%

Operating Expenses as a % of RevenuesDepreciation & amortization 5.7% 6.5% 8.1% 6.8% 6.8% 6.8% 6.8%Other direct costs 1.1% 0.7% 0.4% 0.7% 0.7% 0.7% 0.7%SG&A 7.8% 7.6% 7.8% 7.7% 7.7% 7.7% 7.7%

Capex/ D&A 1.76 1.04 0.80 1.00 1.00 1.00 1.00

Tax Rate 35% 35% 35% 35% 35% 35% 35%


Appendix C:

Hyatt Hotels- Historical and Projected Balance Sheet($ in millions, except per share data)

2007 2008 2009 2010 2011 2012 2013Assets:Current Assets:

Cash and cash equivalents 416 428 1,327 1,366 1,607 1,513 1,667 Restricted cash 13 37 11 - - - - Receivables, net of allowances 318 281 226 253 278 305 328 Inventories 150 170 133 139 148 157 164 Prepaids and other assets 101 141 292 313 314 315 308 Assets of discontinued operations 67 - - - - - -

Total Current Assets 1,065$ 1,057$ 1,989$ 2,070$ 2,347$ 2,290$ 2,467$ Property and equipment, net 3,518 3,495 3,605 3,605 3,605 3,605 3,605 Other LT Assets 1,665 1,567 1,561 1,566 1,663 1,813 1,868

Total assets 6,248$ 6,119$ 7,155$ 7,241$ 7,615$ 7,708$ 7,940$

Liabilities: Current Liabilities:

Current maturities of long-term debt 26 38 12 12 132 3 3 Accounts payable 303 318 196 245 306 318 324 Accrued expenses 360 297 287 308 328 349 365 Liabilities of discontinued operations 8 - - - - - -

Total Current Liabilities 697 653 495 565 766 670 692 Long-term debt 1,288 1,209 840 828 846 843 840 Other long-term liabilities 794 665 780 734 782 833 871

Total liabilities 2,779$ 2,527$ 2,115$ 2,127$ 2,394$ 2,347$ 2,403$

Stockholders' equity:Paid in Capital 3,326 2,243 3,733 3,733 3,733 3,733 3,733 Retained Earnings/ Accumulated Deficit 143 1,349 1,307 1,381 1,488 1,628 1,804

Stockholders' equity 3,469$ 3,592$ 5,040$ 5,114$ 5,221$ 5,361$ 5,537$

Total liabilities and stockholders' equity 6,248$ 6,119$ 7,155$ 7,241$ 7,615$ 7,708$ 7,940$

Balance check - - - - - - -

a. Asset Drivers

Accounts Receivables (DSOs) 7.8 6.7 6.2 6.5 6.7 6.9 7.1Inventory (DSIs) 9.0 9.8 8.3 8.5 8.7 8.9 9.1 Prepaids and Other as a % of Revenues 2.7% 3.7% 8.8% 8.8% 8.3% 7.8% 7.3%Other LT assets as a % of Revenues 45% 41% 47% 44% 44% 45% 44%

b. Liability Drivers

Accounts Payable (DPOs) 18.1 18.3 12.2 15.0 18.0 18.0 18.0 Accrued Expenses as a % of Revenue 9.6% 7.7% 8.6% 8.66% 8.66% 8.66% 8.66%Other LT Liabilities as % of Revenue 21.2% 17.3% 23.4% 20.66% 20.66% 20.66% 20.66%

c. Schedule of Property and Equipment

Net Property and Equipment, beginning 3,495 3,605 3,605 3,605 3,605 + Capex 216 241 256 273 286 + extra ordinary Capex 164 - Depreciation (270) (241) (256) (273) (286) - Sale of PP&E, net -

Net Property and Equipment, ending 3,605 3,605 3,605 3,605 3,605 -

d. Changes in Noncash Working Capital

Noncash Working Capital (48) (24) 167 140 (26) 107 107 Change in Noncash Working Capital 24 191 (27) (166) 132 1

e. Long-Term Debt

Long-Term Debt, beginning 1,209 840 828 846 843 Repayment of Long-Term Debt (12) (12) (132) (3) (3) Additional repayment of LT Debt (855) - - - - Issuance of new Long-Term Debt 498 - 150 - - Long-Term Debt, ending 840 828 846 843 840

Cost of debt 5.14% 5.14% 5.14% 5.14%


Appendix D:

Hyatt Hotels- Historical and Projected Statement of Cash Flows2007 2008 2009 2010 2011 2012 2013

Cash Flows from Operating ActivitiesNet income 271$ 170$ (46)$ 74$ 106$ 141$ 176$

Gain on sale of discontinued operations (2) (55) - - - - - (Income) loss from discontinued operations (3) (1) 1 - - - -

Income (loss) from continuing operations 266$ 114$ (45)$ 74$ 106$ 141$ 176$ Adjustments to reconcile net income to net cash provided by operating activities

Depreciation & Amortization 214 249 270 241 256 273 286 Deferred income taxes (100) 6 73 - - - - Asset impairments - 86 15 - - - - Provisions for hotel loans 61 - 9 - - - - Equity (earnings) losses from unconsolidated hospitality ventures1 (5) 28 - - - - Income from cost method investments (87) (64) (22) - - - - Gain on sale of real estate (22) - - - - - - Foreign currency (gains) losses (17) 23 (5) - - - - Net realized losses from marketable securities - 14 - - - - - Net unrealized (gains) losses from other marketable securities (12) 23 (10) - - - - Other 11 20 47 - - - - Increase (decrease) in cash attributable to changes in assets and liabilities

Receivables, net (19) 4 57 (27) (25) (27) (23) Inventories 14 (21) (10) (6) (9) (9) (7) Prepaid income taxes - (15) (67) (21) (2) (0) 7 Accounts payable (19) (10) (19) 49 61 12 6 Accrued compensation and benefits 71 (137) (45) 21 20 21 16

Net cash provided by operating activities of continuing operations362$ 287$ 276$ 331$ 408$ 411$ 460$

Cash Flows from Investing ActivitiesContributions to investments and purchases of marketable securities(32) (87) (132) Distributions from investments 116 209 24 Proceeds from sale of investments and marketable securities - 8 - Proceeds from notes receivable 19 19 14 Issuance of notes receivable (23) (281) (7) Acquisitions, net of cash acquired (240) (28) (109) (5) (97) (150) (55) Capital expenditures (377) (258) (216) (241) (256) (273) (286) Contract acquisition costs (5) (8) (10) Proceeds from sales of real estate 98 - - Decrease in restricted cash-investing 48 3 9 11 0 0 0

Net cash used in investing activities (396)$ (423)$ (427)$ (234)$ (354)$ (424)$ (340)$

Cash Flows from Financing ActivitiesProceeds from issuance of long-term debt 601 - 498 - 150 - - Proceeds from revolver 785 175 675 - - - - Payments on revolver (785) (145) (705) - - - - Proceeds from (repurchase of) senior subordinated notes - - (600) - - - - Repayments of long-term debt (337) (13) (257) (12) (12) (132) (3) Other debt payments (13) (11) (24) (46) 48 51 38 Decrease (increase) in restricted cash - financing - (17) 19 - - - - Distributions to noncontrolling interests (1) (2) (1) - - - - Purchase of noncontrolling interests - (7) - - - - - Costs related to issuance of debt, stock and amendment of revolver(23) - (18) - - - - Settlement of interest rate swap agreements - - (13) - - - - Issuance of convertible preferred stock 500 - - - - - - Issuance of common stock, net of related costs of $4 MM - - 1,355 - - - - Issuance of Class A common stock in IPO, net of underwriter fees of $7MM and other issuance costs of $8 MM- - 127 - - - - Purchase of treasury stock (1,101) - - - - - - Net cash provided by (used in) financing activities of continuing operations(374)$ (20)$ 1,056$ (58)$ 186$ (81)$ 35$

Cash provided by discontinued operationsNet cash provided by operating activities in discontinued operations24 4 - - - - - Net cash provided by investing activities of discontinued operations7 139 - - - - -

Net cash provided by discontinued operations 31$ 143$ -$ -$ -$ -$ -$

Effect of exchange rate changes on cash (14)$ 25$ (6)$ -$ -$ -$ -$

Net increase (decrease) in cash and cash equivalents (391)$ 12$ 899$ 39$ 241$ (94)$ 154$ Cash - beginning of the year 807 416 428 1,327 1,366 1,607 1,513 Cash - ending of the year 416$ 428$ 1,327$ 1,366$ 1,607$ 1,513$ 1,667$


Appendix E:

Hyatt Hotels Corporation - EBITDA Exit Multiple MethodDiscounted Cash Flow Analysis - EBITDA Multiple Method

Value Date February 25, 2010Current Shares Outstanding 173.9

2009 2010 2011 2012 2013Total Revenues 3,332$ 3,552$ 3,786$ 4,034$ 4,216$

growth (%) -13.2% 6.6% 6.6% 6.6% 4.5%

EBITDA 318 398 462 533 599 margin(%) 9.5% 11.2% 12.2% 13.2% 14.2%

Less: Taxes 10 (40) (57) (76) (95) Tax-effected EBITDA 308 438 520 609 694 Less: Capital Expenditures (216) (241) (256) (273) (286) Less: Changes in Noncash Working Capital 191 (27) (166) 132 1 Free Cash Flow 283.0 170.6 97.6 467.8 409.1

-39.7% -39.7% -42.8% 379.4% -12.5%

End Date 365 730 1095 1460Valuation Date 56 56 56 56Discount Period 0.85 1.85 2.85 3.85PV of FCF @

8% 283$ 160$ 85$ 376$ 304$ 9% 283$ 159$ 83$ 366$ 294$ 10% 283$ 157$ 82$ 357$ 284$ 11% 283$ 156$ 80$ 348$ 274$ 12% 283$ 155$ 79$ 339$ 265$

EBITDA EXIT MULTIPLE METHOD

A + B = C

Discounted PV of Terminal Value as a Firm ValueCash Flows Multiple of TV EBITDA

Discount Rate 2010-2013 12.0x 14.0x 16.0x 18.0x 20.0x 12.0x 14.0x 16.0x 18.0x 20.0x8.0% $924 $5,347 $6,238 $7,129 $8,021 $8,912 $6,272 $7,163 $8,054 $8,945 $9,8369.0% $901 $5,161 $6,021 $6,881 $7,741 $8,601 $6,062 $6,922 $7,783 $8,643 $9,50310.0% $879 $4,983 $5,813 $6,644 $7,474 $8,305 $5,862 $6,692 $7,523 $8,353 $9,18411.0% $858 $4,812 $5,614 $6,416 $7,218 $8,020 $5,670 $6,472 $7,274 $8,076 $8,87812.0% $837 $4,649 $5,424 $6,199 $6,974 $7,748 $5,487 $6,261 $7,036 $7,811 $8,586

- D = E F

Total Equity Value Implied Share PriceDiscount Rate Net Debt 12.0x 14.0x 16.0x 18.0x 20.0x 12.0x 14.0x 16.0x 18.0x 20.0x

8.0% -$475 $6,747 $7,638 $8,529 $9,420 $10,311 38.80$ 43.93$ 49.05$ 54.18$ 59.30$ 9.0% -$475 $6,537 $7,397 $8,258 $9,118 $9,978 37.60$ 42.54$ 47.49$ 52.44$ 57.38$ 10.0% -$475 $6,337 $7,167 $7,998 $8,828 $9,659 36.44$ 41.22$ 46.00$ 50.77$ 55.55$ 11.0% -$475 $6,145 $6,947 $7,749 $8,551 $9,353 35.34$ 39.95$ 44.57$ 49.18$ 53.79$ 12.0% -$475 $5,962 $6,736 $7,511 $8,286 $9,061 34.29$ 38.74$ 43.20$ 47.65$ 52.11$


Appendix F:Estimate of US Hotel Portfolio Value

Total Asset Value: 3,723,000,000$

Prem/ Properties City State Disc. Price Rooms Price/ Room Ownership

1 Hyatt Place Birmingham AL 100% 14,700,000$ 126 116,583$ 100%Jun-09 Marriott Courtyard Troy AL 100% 8,696,456$ 90 96,627$ Jun-09 Hilton Garden Inn Dothan AL 100% 11,600,836$ 104 111,547$ Apr-08 Residence Inn by MarriottDothan AL 100% 9,669,000$ 84 115,107$ Jan-07 Homewood Suites Birmingham AL 90% 15,100,000$ 95 158,947$

2 Hyatt Regency Scottsdale AZ 120% 72,700,000$ 492 147,820$ 100%3 Hyatt Place Phoenix AZ 100% 8,800,000$ 127 69,308$ 100%4 Hyatt Place Scottsdale AZ 100% 8,800,000$ 127 69,308$ 100%5 Hyatt Place Gilbert AZ 35% 3,100,000$ 127 24,258$ 50%

Mar-10 Highland at Biltmore Phoenix AZ 100% 14,782,000$ 120 123,183$ Dec-09 La Quinta Inn & Suites Phoenix AZ 100% 4,480,000$ 66 67,879$ Aug-09 The Views Inn Sedona AZ 100% 2,675,000$ 40 66,875$ Jul-09 Prescott Inn & Conference CenterPrescott AZ 100% 6,000,000$ 82 73,171$

6 Grand Hyatt San Francisco CA 100% 117,900,000$ 685 172,047$ 100%7 Hyatt San Francisco CA 110% 56,900,000$ 313 165,158$ 100%

Mar-10 Four Seasons San FranciscoSan Francisco CA 100% 35,000,000$ 277 126,354$ Jan-10 Tuscan Inn At Fisherman's WharfSan Francisco CA 100% 36,500,000$ 221 165,158$ Jul-09 W San Francisco San Francisco CA 100% 87,966,667$ 404 217,739$

8 Hyatt Place Fremont CA 70% 14,600,000$ 151 137,956$ 100%9 Hyatt Regency Santa Clara CA 70% 84,800,000$ 501 241,667$ 100%

Dec-07 Homewood Suites San Jose CA 100% 21,862,000$ 140 156,157$ Jul-07 Hilton Garden Inn Cupertino CA 100% 38,500,000$ 165 233,333$

May-07 Cypress Hotel Cupertino CA 100% 56,000,000$ 224 250,000$ Apr-07 Embassy Suites Santa Clara CA 100% 34,200,000$ 257 133,074$ Apr-06 Marriott Santa Clara CA 100% 94,600,000$ 759 124,638$

10 Hyatt Regency Monterey CA 100% 94,500,000$ 550 171,850$ 100%Jan-10 Pacific Grove Inn Pacific Grove CA 120% 2,850,000$ 16 178,125$ Jul-09 Carmel Valley Ranch Carmel CA 100% 20,000,000$ 144 138,889$

May-08 Monterey Surf Inn/ Best Value Surf InnMonterey CA 120% 3,300,000$ 28 117,857$ Mar-07 Hotel Pacific Monterey CA 70% 29,000,000$ 105 276,190$

11 Hyatt Place Rancho Cordova CA 100% 7,500,000$ 127 58,737$ 100%Dec-08 Best Western Expo Inn Sacramento CA 100% 6,000,000$ 127 47,244$ Sep-08 Holiday Inn Northeast Sacramento CA 100% 19,000,000$ 230 82,609$ Jul-08 Host Airport Hotel Sacramento CA 33% 15,000,000$ 89 168,539$ Jul-08 Budget Inn Sacramento CA 100% 4,750,000$ 96 49,479$

12 Hyatt Regency Long Beach CA 65% 49,400,000$ 528 143,843$ 100%Nov-07 Best Western Long Beach CA 100% 12,675,050$ 100 126,751$ May-07 Residence Inn Long Beach CA 100% 45,400,000$ 216 210,185$ Dec-06 Holiday Inn Hotel & Conference CtrLong Beach CA 100% 21,000,000$ 222 94,595$

13 Hyatt Regency Huntington Beach CA 35% 21,000,000$ 517 290,776$ 40%Mar-08 By the Sea Inn Laguna Beach CA 100% 8,100,000$ 36 225,000$ Jan-08 Eiler's Inn Laguna Beach CA 100% 3,915,000$ 14 279,643$ Oct-07 Marriott Laguna Cliffs Dana Point CA 70% 197,500,000$ 376 525,266$

14 Hyatt Regency Denver CO 100% 22,700,000$ 451 50,298$ 100%15 Hyatt Place Lone Tree CO 100% 6,400,000$ 127 50,298$ 100%16 Hyatt Place Aurora CO 100% 6,300,000$ 126 50,298$ 100%17 Hyatt Place Englewood CO 100% 6,300,000$ 126 50,298$ 100%18 Hyatt Summerfield Suites Englewood CO 100% 6,800,000$ 135 50,298$ 100%



Mar-10 Denver Intl Hotel & SuitesDenver CO 100% 4,500,000$ 87 51,724$ Oct-09 Radisson Denver North - Graystone CastleDenver CO 100% 4,925,000$ 133 37,030$ Jul-09 Sleep Inn North Denver CO 100% 4,200,000$ 100 42,000$

May-08 Holiday Inn Express Englewood CO 100% 6,410,000$ 91 70,440$

19 Hyatt Regency Greenwich CT 120% 15,200,000$ 373 34,033$ 100%20 Hyatt Place Mystic CT 100% 2,700,000$ 79 34,033$ 100%

Sep-09 Enfield CT 100% 6,500,000$ 174 37,356$ Mar-09 East Hartford CT 100% 2,800,000$ 105 26,667$ Nov-08 YMCA Hotel Stamford CT 100% 4,650,000$ 132 35,227$ Mar-08 Wellesley Inn Danbury CT 100% 5,500,000$ 181 30,387$ Mar-07 Holiday Inn Stamford CT 70% 22,000,000$ 380 57,895$

21 Park Hyatt Washington DC 100% 76,000,000$ 216 351,917$ 100%Mar-10 Sofitel Washington DC 100% 95,000,000$ 237 400,844$ Jan-10 District Hotel Washington DC 200% 7,449,500$ 58 128,440$ Feb-08 Former Wyndham City CenterWashington DC 100% 141,300,000$ 355 398,028$

22 Hyatt Regency Miami FL 85% 70,465,000$ 612 135,505$ 100%23 Hyatt Summerfield Suites Miami FL 75% 15,825,000$ 156 135,505$ 100%

Feb-10 1671 Washington Ave Miami Beach FL 6,600,000$ 47 140,426$ Dec-09 Beach Plaza Hotels & VillasMiami Beach FL 12,250,000$ 77 159,091$ Nov-09 Habana Libre Hotel Miami Beach FL 9,000,000$ 78 115,385$ Aug-09 Doubletree Hotel Miami FL 12,750,000$ 196 65,051$ Sep-08 Courtyard by Marriott Miami FL 15,000,000$ 118 127,119$

24 Hyatt Key West FL 100% 18,800,000$ 118 159,353$ 100%Aug-08 The Artist House GuesthouseKey West FL 2,130,000$ 7 304,286$ Oct-07 Sheraton Suites Key West FL 65% 39,000,000$ 180 216,667$ Oct-07 The Inn at Key West Key West FL 65% 34,000,000$ 105 323,810$ May-07 Atlantic Shores Resort Key West FL 65% 14,040,000$ 72 195,000$

25 Grand Hyatt Tampa FL 90% 34,920,000$ 445 87,232$ 100%26 Hyatt Place Tampa FL 100% 2,800,000$ 126 22,238$ 100%

Apr-10 Embassy Suites Tampa FL 77,000,000$ 360 213,889$ Apr-09 Howard Johnson Tampa FL 3,080,422$ 188 16,385$ Dec-08 Tampa FL 2,500,000$ 89 28,090$ May-08 Tampa FL 7,500,000$ 83 90,361$ Apr-08 Sheraton Suites Tampa AirportTampa FL 24,000,000$ 259 92,664$ Oct-07 Doubletree Tampa FL 40,000,000$ 489 81,800$

27 Hyatt Regency Bonita Springs FL 120% 91,080,000$ 454 167,136$ 100%28 Hyatt Place Estero FL 85% 6,800,000$ 108 74,250$ 50%

Oct-07 Courtyard by Marriott Naples FL 60% 17,910,000$ 98 182,755$ Jul-07 Bonita Beach Plantation ResortBonita Springs FL 60% 2,750,000$ 19 144,737$

Dec-06 Mini Resort -1202 Bonita Springs FL 60% 5,150,000$ 49 105,102$ Oct-06 Stoneys Courtyard Inn Naples FL 60% 6,750,000$ 76 88,816$ Jun-06 Vanderbilt Inn Naples FL 75% 71,667,000$ 147 487,531$ Aug-05 Inn at Pelican Bay Naples FL 80% 13,300,000$ 100 133,000$

29 Hyatt Place Lakeland FL 100% 9,100,000$ 127 71,833$ 100%Jun-08 Hampton Inn & Suites Plant City FL 8,000,000$ 117 68,376$ Aug-06 Lakeland FL 6,850,000$ 106 64,623$ Jun-05 Residence Inn Lakeland FL 65% 9,900,000$ 78 126,923$

30 Hyatt Place Orlando FL 100% 11,500,000$ 128 89,481$ 100%Jan-10 Renaissance Orlando AirportOrlando FL 27,842,000$ 298 93,430$ Oct-08 Orlando FL 6,975,000$ 98 71,173$ Jan-08 Hawthorne Suites Orlando FL 75% 19,900,000$ 134 148,507$ Jan-07 Hawthorne Suites Orlando FL 60% 18,300,000$ 134 136,567$



31 Hyatt Place Orlando FL 100% 20,000,000$ 149 134,543$ 100%32 Hyatt Place Orlando FL 100% 20,300,000$ 151 134,543$ 100%

Jul-09 Fairfield Inn & Suites Orlando at SeaWorldOrlando FL 25,800,000$ 200 129,000$ Jul-09 Springhill Suites Orlando at SeaWorldOrlando FL 29,000,000$ 200 145,000$

Sep-08 Hampton Inn & Suites Orlando FL 14,000,000$ 108 129,630$

33 Hyatt Regency Orlando FL 110% 85,140,000$ 750 103,209$ 0Feb-08 Hampton Inn Orlando FL 14,100,000$ 147 95,918$ Apr-07 Springhill Suites Orlando Lake Buena VistaOrlando FL 40,300,000$ 400 100,750$ Apr-07 Courtyard Orlando Lake Buena VistaOrlando FL 39,800,000$ 312 127,564$ Feb-06 Nickelodeon Resorts Orlando FL 60% 120,000,000$ 777 154,440$ Oct-05 Embassy Suites Orlando FL 70% 56,150,000$ 333 168,619$ Jun-05 Residence Inn Orlando FL 70% 42,161,500$ 350 120,461$

34 Hyatt Regency Atlanta GA 171,200,000$ 1260 135,892$ 100%Jan-10 Eon at Lindbergh Atlanta GA 43,000,000$ 352 122,159$ Sep-09 Lindbergh Vista Atlanta GA 51,962,500$ 314 165,486$ Sep-09 Mariposa Loft Atlanta GA 28,750,000$ 253 113,636$ Jul-08 Metropointe Lofts Atlanta GA 75,800,000$ 368 205,978$ Jul-07 Holiday Inn Downtwon AtlantaAtlanta GA 30,083,333$ 260 115,705$

Apr-07 Hilton Atlanta GA 70% 180,000,000$ 1224 147,059$ Sep-06 Ritz Carlton Atlanta Atlanta GA 70% 79,500,000$ 444 179,054$

35 Hyatt Place Alpharetta GA 100% 7,800,000$ 127 61,414$ 100%Oct-08 Webb Bridge Crossing Alpharetta GA 10,960,000$ 164 66,829$ Jun-07 Amerisuites Alpharetta GA 70% 8,001,600$ 102 78,447$ Aug-06 Homewood Suites by HiltonAlpharetta GA 70% 10,000,000$ 112 89,286$ May-06 Fairfield Suites Alpharetta GA 5,708,000$ 88 64,864$

36 Hyatt Place Norcross GA 85% 7,225,000$ 126 67,377$ 100%Aug-05 Hilton Atlanta Northeast Norcross GA 19,500,000$ 272 71,691$ Jan-04 Atlanta Marriott NorcrossNorcross GA 14,000,000$ 222 63,063$

37 Hyatt Place Atlanta GA 100% 16,000,000$ 150 106,821$ 100%Apr-07 Residence Inn Atlanta GA 80% 17,524,000$ 128 136,906$ May-06 Westin Atlanta Perimeter CenterAtlanta GA 75% 61,500,000$ 369 166,667$ Jun-04 Atlanta Marriott Perimeter CenterAtlanta GA 125% 27,500,000$ 400 68,750$

38 Hyatt Regency Honolulu HI 85% 36,805,000$ 1229 352,641$ 10%Oct-09 Queen Kapiolani Honolulu HI 108,200,300$ 315 343,493$ Mar-07 Hyatt Regency Honolulu HI 445,000,000$ 1230 361,789$ Jul-07 Park Shore Waikiki Honolulu HI 56,550,000$ 226 250,221$

39 Hyatt Place Boise ID 100% 15,300,000$ 127 120,269$ 100%Mar-10 Hampton Inn Boise ID 22,370,000$ 186 120,269$ Sep-07 Red Lion Park Center/ Springhill SuitesBoise ID 21,000,000$ 238 88,235$ Jul-05 Red Lion Park Center/ Springhill SuitesBoise ID 15,960,000$ 236 67,627$

40 Hyatt Deerfield IL 75% 23,400,000$ 301 103,558$ 100%Aug-07 Holiday Inn Express Hotel & SuitesRiverwods IL 10,200,000$ 115 88,696$ Feb-06 Chicago Marriott Suites Deerfield IL 26,516,000$ 248 106,919$ Jul-06 Springhill Suites Chicago Lincolnshire IL 19,100,000$ 166 115,060$

41 Hyatt Place Itasca IL 75% 9,000,000$ 126 95,174$ 100%42 Hyatt Rosemont IL 75% 14,700,000$ 206 95,174$ 100%43 Hyatt Regency Rosemont IL 75% 168,375,000$ 1096 204,842$ 100%

Dec-07 Crowne Plaza Des Plaines IL 39,000,000$ 503 77,535$ Jul-07 Doubletree Hotel Des Plaines IL 64,400,000$ 369 174,526$

Nov-06 The Westin O'Hare Des Plaines IL 125,000,000$ 525 238,095$ Oct-05 The Westin O'Hare Des Plaines IL 106,000,000$ 525 201,905$ Sep-06 Mirage Four Points Schiller Park IL 27,333,333$ 295 92,655$ Jun-04 Renaissance Suites O'HareChicago IL 41,750,000$ 362 115,331$



44 Hyatt Place Hoffman Estates IL 100% 8,700,000$ 126 68,677$ 100%Aug-09 Schaumberg IL 10,250,000$ 143 71,678$ Oct-05 Hoffman Estates IL 12,150,000$ 185 65,676$

45 Hyatt Place Lombard IL 100% 16,500,000$ 151 109,018$ 100%Jan-08 Oak Brook IL 19,000,000$ 160 118,750$ Feb-07 Courtyard by Marriott Elmhurst IL 13,900,000$ 140 99,286$

46 Hyatt Lisle IL 85% 9,945,000$ 316 74,184$ 50%May-06 Naperville IL 31,233,333$ 426 73,318$ Dec-04 Wyndham Lisle Lisle IL 18,162,000$ 242 75,050$

47 Park Hyatt Chicago IL 69,400,000$ 198 350,513$ 100%Sep-08 Hotel Monaco Chicago IL 80,000,000$ 192 416,667$ Jan-08 Former Lenox Suites HotelChicago IL 123,400,000$ 297 415,488$ Sep-06 Conrad Hilton Chicago IL 117,500,000$ 311 377,814$ Mar-06 Chicago Marriott DowntownChicago IL 306,000,000$ 1192 256,711$ Mar-06 The Westin Michigan AveChicago IL 214,700,000$ 751 285,885$

48 Hyatt Regency Indianapolis IN 90% 44,400,000$ 497 89,424$ 100%May-09 Adams Mark Indianapolis IN 8,000,000$ 406 19,704$ Apr-08 Microtel Inn & Suites Indianapolis IN 1,506,250$ 76 19,819$ Feb-08 Fairfield Inn South Indianapolis IN 4,682,227$ 62 75,520$ Feb-08 Courtyard South by MarriottIndianapolis IN 8,576,207$ 83 103,328$

49 Hyatt Place Florence KY 100% 3,500,000$ 127 27,840$ 100%Apr-07 Florence KY 3,900,000$ 121 32,231$ May-06 Florence KY 3,400,000$ 145 23,448$

50 Hyatt Place Louisville KY 100% 4,700,000$ 121 38,809$ 100%51 Hyatt Regency Louisville KY 85% 26,350,000$ 393 78,968$ 50%

Nov-09 Park Inn Louisville East Louisville KY 13,300,000$ 254 52,362$ May-09 Hotel Louisville Louisville KY 10,000,000$ 287 34,843$ Nov-06 Brown Hotel Louisville KY 60% 40,500,000$ 293 138,225$ Oct-06 Marriott Courtyard Louisville KY 60% 17,500,000$ 140 125,000$ Oct-06 Suburban Extended Stay Louisville KY 4,700,000$ 143 32,867$ Jul-04 Clarion/ Doubletree Louisville KY 6,400,000$ 182 35,165$

52 Hyatt Summerfield Suites Waltham MA 100% 10,400,000$ 135 76,809$ 100%Nov-09 Doubletree Guest Suites Waltham MA 100% 20,200,000$ 275 73,455$ Jan-07 Hilton Garden Inn Waltham MA 65% 16,578,000$ 148 112,014$ Apr-05 Hyatt Summerfield Suites Waltham MA 80% 14,202,700$ 135 105,205$

53 Hyatt Regency Baltimore MD 100% 104,500,000$ 488 214,052$ 100%Jan-06 Harbor Court Hotel Baltimore MD 65% 78,000,000$ 195 400,000$ Sep-05 Hampton Inn Inner HarborBaltimore MD 120% 16,250,000$ 116 140,086$

54 Hyatt Place Owings Mills MD 100% 9,400,000$ 123 76,331$ 100%May-07 Radisson Crossing Keys Baltimore MD 65% 17,000,000$ 148 114,865$ Feb-07 Inn at the Colonnade Baltimore MD 65% 15,000,000$ 125 120,000$

55 Hyatt Place Auburn Hills MI 80% 11,040,000$ 127 108,806$ 100%56 Hyatt Place Livonia MI 80% 11,040,000$ 127 108,806$ 100%

Sep-06 Detroit Marriott Livonia Livonia MI 25,000,000$ 227 110,132$ Jun-06 Residence Inn Marriott Pontiac MI 14,200,000$ 114 124,561$ Jun-06 Auburn Hills Marriott Pontiac MI 36,800,000$ 290 126,897$ Jun-06 Coutyard Detroit Pontiac MI 10,100,000$ 110 91,818$ Jan-06 Courtyard Marriott Grand Rapids MI 20,299,450$ 224 90,623$



57 Hyatt Regency Minneapolis MN 120% 70,920,000$ 533 110,903$ 100%58 Hyatt Place Eden Prairie MN 100% 9,900,000$ 126 78,196$ 100%

Jun-07 Holiday Inn Select Minneapolis MN 75% 37,500,000$ 430 87,209$ May-07 Crowne Plaza Northstar HotelMinneapolis MN 75% 62,150,000$ 223 278,700$ May-06 Residence Inn Minneapolis MN 75% 22,703,368$ 200 113,517$ Mar-06 Hilton Minneapolis Minneapolis MN 75% 92,000,000$ 821 112,058$

59 Hyatt Regency Kansas City MO 120% 84,960,000$ 733 96,521$ 0Mar-10 Hampton Inn Suites St Louis MO 23,000,000$ 190 121,053$ Feb-09 Renaissance St Louis Grand and Suites HotelSt Louis MO 98,000,000$ 1083 90,489$ Feb-08 Adams Mark St Louis MO 71,000,000$ 910 78,022$

60 Hyatt Place Charlotte NC 100% 9,500,000$ 127 74,778$ 100%Jul-07 Charlotte NC 14,100,000$ 173 81,503$

May-07 Charlotte NC 13,562,500$ 181 74,931$ Dec-06 Charlotte NC 10,266,667$ 144 71,296$ Oct-05 Charlotte NC 21,200,000$ 297 71,380$

61 Hyatt Place Greensboro NC 100% 14,200,000$ 124 114,499$ 100%Nov-07 Doubletree Hotel GreensboroGreensboro NC 22,500,000$ 175 128,571$ Nov-07 Hampton Inn Greensboro AirportGreensboro NC 15,510,000$ 127 122,126$ May-06 Hampton Inn Greensboro AirportGreensboro NC 11,600,000$ 125 92,800$

62 Hyatt Place Raleigh NC 100% 15,800,000$ 127 124,643$ 100%Aug-07 Fairfield Inn Raleigh NC 80% 19,700,000$ 125 157,600$ Feb-07 Marriott Hotel Raleigh NC 80% 72,428,571$ 375 193,143$ Sep-06 Sheraton Raleigh Hotel Raleigh NC 80% 42,000,000$ 360 116,667$

63 Hyatt Place Fair Lawn NJ 100% 13,300,000$ 143 92,781$ 100%64 Hyatt Place Secaucus NJ 100% 14,800,000$ 159 92,781$ 100%

Sep-07 Red Roof Inn MeadowlandsSecaucus NJ 70% 20,400,000$ 170 120,000$ Jun-07 Courtyard by Marriott Secaucus NJ 65% 27,350,000$ 168 162,798$ Sep-05 East Rutherford NJ 70% 54,000,000$ 427 126,464$

65 Hyatt Summerfield Suites Parsippany NJ 100% 14,300,000$ 135 106,146$ 100%66 Hyatt Summerfield Suites Morristown NJ 100% 14,000,000$ 132 106,146$ 100%

Apr-06 Staybridge Suites Morristown NJ 65% 21,000,000$ 150 140,000$ Jan-06 Summerfield Suites Morristown NJ 70% 21,500,000$ 133 161,654$ Apr-05 Westin Governor Morris Morristown NJ 70% 35,100,000$ 215 163,256$

67 Hyatt Place Princeton NJ 100% 7,600,000$ 122 62,241$ 100%68 Hyatt Regency Princeton NJ 100% 41,712,000$ 347 136,480$ 88%

May-06 Radisson Princeton NJ 15,000,000$ 241 62,241$ Nov-05 Westin/ Prineceton at Forrestal VillagePrinceton NJ 75% 53,500,000$ 294 181,973$

69 Hyatt Place Albuquerque NM 100% 9,800,000$ 127 77,212$ 100%Oct-07 Holiday Inn Express Albuquerque NM 5,703,040$ 104 54,837$ Sep-07 Quality Suites Albuquerque NM 4,875,000$ 72 67,708$ May-07 Hampton Inn & Suites Albuquerque NM 9,600,000$ 88 109,091$

70 Hyatt Regency Incline Village NV 200% 52,600,000$ 422 62,248$ 100%Aug-07 Travelodge Casino South Lake Tahoe CA 8,400,000$ 116 72,414$ Jan-07 Blue Lake Inn South Lake Tahoe CA 4,200,000$ 68 61,765$ Jul-05 Travelodge Casino South Lake Tahoe CA 6,150,000$ 117 52,564$

71 Hyatt Regency Jersey City NJ 85% 106,590,000$ 350 358,395$ 50%72 Grand Hyatt New York NY 120% 599,400,000$ 1311 381,031$ 100%

Feb-10 Holiday Inn Express Times SquareNew York NY 120% 55,975,000$ 210 266,548$ Feb-10 Hampton Inn Times SquareNew York NY 120% 55,080,000$ 184 299,348$ Mar-09 Hilton Garden Inn New York NY 123,055,500$ 298 412,938$ Feb-09 Four Points by Sheraton New York NY 99,857,143$ 244 409,251$ Jan-09 Marriott Marquis New York NY 134,900,000$ 334 403,892$



73 Hyatt Regency Buffalo NY 100% 17,100,000$ 396 43,098$ 14%Jan-09 Adam's Mark Hotels & ResortsBuffalo NY 9,200,000$ 486 18,930$ Feb-08 Adam's Mark Hotels & ResortsBuffalo NY 18,630,000$ 486 38,333$ Feb-08 Holiday Inn Express Buffalo NY 5,600,000$ 117 47,863$

74 Hyatt Place Mason OH 100% 6,000,000$ 127 47,248$ 100%Jun-09 Comfort Suites Cincinnati OH 3,250,000$ 72 45,139$ Aug-07 Best Western Cincinnati WestCincinnati OH 4,900,000$ 81 60,494$ Jun-07 Comfort Suites Cincinnati OH 2,600,000$ 72 36,111$ Apr-07 Ramada-Plaza Cincinnati OH 6,000,000$ 255 23,529$

75 Hyatt Place Independence OH 100% 3,200,000$ 127 24,895$ 100%76 Hyatt Regency Cleveland OH 85% 10,795,000$ 293 86,849$ 50%

May-07 Holiday Inn Select Cleveland OH 11,685,750$ 378 30,915$ Dec-05 Marriott-Downtown Key CenterCleveland OH 35,000,000$ 403 86,849$ Dec-05 Cleveland OH 5,133,333$ 268 19,154$ Apr-05 Comfort Inn Downtown Cleveland OH 3,200,000$ 130 24,615$

77 Hyatt Regency Columbus OH 100% 13,056,000$ 631 86,141$ 24%Mar-09 Holiday Inn Columbus OH 20,000,000$ 243 82,305$ Sep-07 Courtyard by Marriott Columbus OH 16,991,700$ 149 114,038$ Sep-07 Hyatt on Capitol Sq Columbus OH 30,000,000$ 400 75,000$ Apr-07 Westin Columbus Columbus OH 14,441,400$ 186 77,642$ May-06 Westin Columbus Columbus OH 15,200,000$ 186 81,720$

78 Hyatt Place Oklahoma City OK 100% 3,800,000$ 126 30,549$ 100%Dec-09 Ramada Inn - Airport SouthOklahoma City OK 3,550,000$ 110 32,273$ Jun-09 Oklahoma City OK 2,750,000$ 80 34,375$ Sep-08 Colcord Oklahoma City OK 19,530,000$ 108 180,833$ Jul-08 Oklahoma City OK 1,450,000$ 58 25,000$

79 Hyatt Place Pittsburgh PA 100% 5,500,000$ 127 43,603$ 100%80 Hyatt Place Cranberry Township PA 100% 5,500,000$ 127 43,603$ 100%

Jun-07 Holiday Inn Pittsburgh PA 4,592,967$ 201 22,851$ Oct-06 Hampton Inn Pittsburgh/ GreentreePittsburgh PA 8,997,000$ 132 68,159$ May-06 Hilton Pittsburgh Pittsburgh PA 28,000,000$ 713 39,271$ Apr-06 Pittsburgh PA 6,000,000$ 146 41,096$ Mar-05 Wyndham Pittsburgh PA 9,234,513$ 198 46,639$

81 Park Hyatt Philadelphia PA 100% 19,300,000$ 172 224,298$ 50%Apr-07 Marriott Courtyard DowntownPhiladelphia PA 85% 101,000,000$ 498 202,811$ Nov-05 Westin Philadelphia Philadelphia PA 90% 89,000,000$ 290 306,897$

82 Hyatt Regency Greenville SC 130% 47,600,000$ 328 111,538$ 100%Feb-08 Residence Inn Greenville SC 8,700,000$ 78 111,538$ May-07 Crowne Plaza Greenville SC 10,150,000$ 205 49,512$ Jan-07 Residence Inn Greenville SC 7,350,000$ 78 94,231$

83 Hyatt Place Irmo SC 100% 14,700,000$ 127 116,130$ 100%Sep-07 Hilton Garden Inn Columbia SC 21,200,000$ 143 148,252$ Sep-07 Hampton Inn Columbia SC 9,325,000$ 111 84,009$

84 Hyatt Place Memphis TN 80% 9,400,000$ 126 93,040$ 100%Jun-07 Embassy Suites Memphis TN 18,900,000$ 220 85,909$

May-07 Homewood Suites Memphis TN 11,100,000$ 140 79,286$ May-07 Hilton Hotel Memphis TN 45,000,000$ 395 113,924$

85 Hyatt Place Brentwood TN 100% 5,000,000$ 124 40,637$ 100%86 Hyatt Place Nashville TN 100% 5,000,000$ 123 40,637$ 100%

Sep-07 Club Hotel Inn Nashville TN 4,350,000$ 134 32,463$ Feb-07 Holiday Inn Express Nashville TN 10,800,000$ 202 53,465$ Dec-06 Baymont Inn & Suites Nashville TN 5,200,000$ 110 47,273$



Jan-06 La Quinta Inn & Suites Nashville TN 5,568,350$ 140 39,774$ Apr-06 Ramada Nashville TN 3,625,000$ 120 30,208$

87 Hyatt Regency San Antonio TX 110% 106,000,000$ 632 152,455$ 100%Aug-06 Hotel Indigo San Antonio TX 24,000,000$ 149 161,074$ May-04 Homewood Suites RiverwalkSan Antonio TX 21,000,000$ 146 143,836$

88 Hyatt Place Arlington TX 100% 16,200,000$ 127 127,590.54$ 100%Oct-06 Hilton Arlington Arlington TX 36,300,000$ 308 117,857.14$ Oct-08 Hilton Garden Inn Duncanville TX 19,500,000$ 142 137,323.94$

89 Hyatt Place Plano TX 100% 19,800,000$ 127 156,148 100%Oct-08 Hilton Garden Inn Lewisville TX 28,000,000$ 165 169,697 Jun-08 Hilton Dallas Lincoln CentreDallas TX 72,250,000$ 500 144,500 Apr-07 Courtyard Dallas Plano TX 23,600,000$ 153 154,248

90 Hyatt Place Fort Worth TX 100% 15,300,000$ 127 120,558.29$ 100%91 Hyatt Place Hurst TX 100% 15,300,000$ 127 120,558.29$ 100%

Aug-06 Courtyard by Marriott Fort Worth TX 25,940,000$ 203 127,783.25$ May-05 Residence Inn Fort Worth TX 17,000,000$ 150 113,333.33$

92 Hyatt Regency DFW Airport TX 85% 42,780,000$ 811 134,878.80$ 46%Dec-05 Hilton DFW Grapevine TX 65,375,000$ 395 165,506.33$ Oct-04 Westin Ft Worth Irving TX 59,318,000$ 506 117,229.25$ May-04 DFW Marriott Irving TX 59,000,000$ 484 121,900.83$

93 Hyatt Place San Antonio TX 100% 14,700,000$ 126 117,015.79$ 100%94 Grand Hyatt San Antonio TX 120% 42,264,000$ 1003 117,015.79$ 30%

Sep-07 TownePlace Suites San Antonio TX 13,838,000$ 123 112,504.07$ Sep-07 San Antonio TX 11,925,000$ 106 112,500.00$ Aug-06 Hotel Indigo San Antonio TX 24,000,000$ 149 161,074$ Jun-06 Fairfield Suites San Antonio TX 12,700,000$ 120 105,833$ Jul-05 Sheraton Gunter Hotel San Antonio TX 30,000,000$ 322 93,168$

95 Hyatt Regency San Antonio TX 85% 13,831,200$ 500 203,454$ 16%96 Hyatt Regency Lost Pines TX 85% 6,793,200$ 491 203,454$ 8%

Feb-08 Marriott Hotel & Golf ClubFort Worth TX 100% 48,250,000$ 286 168,706$ Aug-07 Hilton San Antonio Country Hotel & SpaSan Antonio TX 100% 34,500,000$ 227 151,982.38$ Aug-06 Four Seasons Resort Irving TX 50% 230,000,000$ 397 579,345.09$

97 Hyatt Place Richmond VA 100% 14,400,000$ 127 113,169.64$ 100%Apr-07 Embassy Suites Hotel Richmond VA 65% 39,000,000$ 224 174,107$

98 Hyatt Regency Arlington VA 35% 35,420,000$ 686 147,489$ 50%Jun-07 Hilton Arlington VA 65% 98,000,000$ 386 253,886$ Jul-06 Marriott Arlington VA 65% 107,000,000$ 697 153,515$

Apr-04 Ritz Carlton Arlington VA 70% 92,889,000$ 366 253,795$

99 Grand Hyatt Seattle WA 100% 131,200,000$ 425 308,703$ 50%100 Hyatt Seattle WA 120% 64,560,000$ 346 155,362$ 50%

Aug-07 Hotel Vintage Park Seattle WA 65% 22,386,789$ 125 179,094$ Apr-07 Seattle Marriott WaterfrontSeattle WA 65% 163,850,000$ 345 474,928$ Nov-06 Springhill Suites Seattle DowntownSeattle WA 65% 50,179,200$ 234 214,441$ Sep-06 Residence Inn by Marriott SuitesSeattle WA 65% 56,173,000$ 234 240,056$ Jun-06 Hotel 1000 Seattle Seattle WA 70% 38,000,000$ 109 348,624$ Jan-06 Homewood Suites Seattle Seattle WA 70% 33,345,000$ 193 172,772$

101 Hyatt Regency Bellevue WA 120% 91,680,000$ 733 104,176$ 2%May-06 Sheraton Bellevue Bellevue WA 65% 29,000,000$ 179 162,011$ Jun-05 Bellvue Hilton Bellevue WA 75% 48,500,000$ 353 137,394$


New Hotels Prem/ Properties City State Disc. Price Rooms Price/ Room Ownership

2/ 3/ 2010 Hyatt Place Roseville CA 60% 16,800,000$ 151 185,639.31$ Jul-07 Larkspur Landing RooseveltRoseville CA 60% 19,125,000$ 90 212,500.00$

Nov-05 Hilton Garden Inn Roseville CA 60% 20,800,000$ 131 158,778.63$

2/ 1/ 2010 Hyatt Regency Clearwater FL 125% 58,250,000$ 250 186,217.01$ Oct-05 BW Sea Wake Beach ResortClearwater FL 100% 25,000,000$ 110 227,272.73$ Jun-05 Clearwater FL 100% 31,500,000$ 217 145,161.29$

Documents

Hyatt Hotels Final 2 25 10 K