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©2016STR,Inc.AllRightsReserved.Anyreprint,useorrepublicationofallorapartofthispresentationwithoutthepriorwrittenapprovalofSTR,Inc.orSTRGlobal,Ltd.tradingasSTR(collectively“STR”)isstrictlyprohibited.AnysuchreproductionshallspecificallycreditSTRasthesource.ThispresentationisbasedondatacollectedbySTR.Nostrategicadviceormarketingrecommendationisintendedorimplied.

STRForecastingLuncheonpresentedinpartnership

OklahomaHotelIndustryPerformanceJanD.FreitagSeniorVicePresident

jan@str.com@jan_freitag

2©2016STR.AllRightsReserved.

• TotalUSReview

• StateofOklahoma

• Tulsa,OK

• OklahomaCity,OK

Agenda

3©2016STR.AllRightsReserved.

www.hotelnewsnow.comDataDashboard>ViewAllDataPresentations

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TotalU.S.Review

5©2016STR.AllRightsReserved.

July2016YTD:Occ %ChangeTurnedNegative.NowWhat?

%Change

• RoomSupply 1.5%• RoomDemand 1.4%• Occupancy 66.4% -0.1%• A.D.R. $124 3.2%• RevPAR $82 3.0%• RoomRevenue 4.6%

July 2016 YTD, Total US Results

6© 2016 STR. All Rights Reserved.

RevPARGrowth:SlowingDownAfter6Yrs.OfGrowth

-25

-20

-15

-10

-5

0

5

10

15

1990 2000 2010

Total U.S., RevPAR % Change, 1/1990 – 07/2016

56 Months 77 Mo.80 Months 31 Mo

7©2016STR.AllRightsReserved.

WeAreNotBuildingBallroomsAnymore!

7.8

19.1

59.455.5

6.41.0

22.0

Luxury UpperUpscale

Upscale UpperMidscale

Midscale Economy Unaffiliated

*US Pipeline, Rooms Under Construction , ‘000s Rooms, by Scale, July 2016

67%

8©2016STR.AllRightsReserved.

TotalUnitedStatesKeyPerformanceIndicatorOutlook(%Changevs.PriorYear)2016- 2017

Outlook

2016Forecast

2017Forecast

Supply 1.6% 2.0%

Demand 1.6% 1.6%

Occupancy 0.0% -0.3%

ADR 3.2% 3.1%

RevPAR 3.2% 2.8%

9©2016STR.AllRightsReserved.

Oklahoma

10© 2016 STR. All Rights Reserved.

WeakerOilPrice=RoomDemandGrowthSlows

$30

$40

$50

$60

$70

$80

$90

$100

2014 2015 2016

*Monthly Oil price Future / Barrel 1/2014 – 07/2016http://www.investing.com/commodities/crude-oil

11©2016STR.AllRightsReserved.

Oklahoma:WhereDoWeGoFromHere?

2.9

-3.5

-4

0

4

8

2012 2014 2016

Supply % Change

Demand % Change

State of Oklahoma Supply & Demand % Change, 12 MMA 1/2012 – 07/2016

12©2016STR.AllRightsReserved.

Oklahoma:….AndNowADRIsDecliningAsWell

-7.1

-1.7

-10

-5

0

5

10

2012 2014 2016

Occ % Change

ADR % Change

State of Oklahoma, Monthly Occ & ADR % Change, 1/2012 – 07/2016

13©2016STR.AllRightsReserved.

OklahomaYTD:ToughYear

%Change

• RoomSupply 2.5%• RoomDemand -3.7%• Occupancy 55.7% -6.0%• A.D.R. $80 -0.6%• RevPAR $44 -6.6%

Oklahoma, July 2016 YTD

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OKSubmarketsYTD:ASeaofRed

Submarket Supply%Change RevPAR%Change

OklahomaEastArea 3.7 -8.6

OklahomaWestArea 2.5 -18.3

Norman/Moore 0.9 -5.0

OklahomaCityAirport -1.9 -3.5

OklahomaCityCBD 2.8 2.0

OklahomaCityNorth/West 3.0 -6.7

OklahomaCitySoutheast 0.3 -0.1

TulsaCBD/Airport 4.6 -3.5

TulsaSouth/BrokenArrow 2.7 -2.8

Oklahoma Submarkets, Supply & RevPAR % Change, July 2016 YTD

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Tulsa,OK

17©2016STR.AllRightsReserved.

TULSA MARKET

400301 - Tulsa Downtown/ Airport

400302 - Tulsa South/ Broken Arrow

18© 2016 STR. All Rights Reserved.

Tulsa:WeakerOilPrice=RoomDemandGrowthSlows

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

$30

$40

$50

$60

$70

$80

$90

$100

2014 2015 2016

CrudeOilFuturesPrice/Barrel(LHS)

Demand%Change(RHS)

*Monthly Oil price Future / Barrel vs. Tulsa, OK Room Demand % Change 1/2014 – 07/2016http://www.investing.com/commodities/crude-oil

19©2016STR.AllRightsReserved.

TulsaYTD:SharpOcc Drop,ButStillSmall ADRIncreases

%Change

• RoomSupply 3.5%• RoomDemand -1.1%• Occupancy 58.3% -4.5%• A.D.R. $80 1.5%• RevPAR $47 -3.0%

Tulsa, OK; July 2016 YTD

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TulsaWeekday/WeekendOcc:SellingOver6of10RoomsOnWeekends

50.6

54.3 54.2

57.8

53.3

59.2 59.7

53.4

66.3 65.4

72.2

66.468.5

64.1

January February March April May June July

Weekday Weekend

*Tulsa, OK; WD/WE, OCC %, by Month 2016

21© 2016 STR. All Rights Reserved.

TulsaWeekday/WeekendADR:NoDifference?

$80$78

$80$84

$81 $81$78$78 $79

$81

$84

$81 $80

$76

January February March April May June

Weekday Weekend

*Tulsa, OK; WD/WE, ADR $, by Month 2016

22© 2016 STR. All Rights Reserved.

TulsaPipeline:MoreCompetitorsInTheNextTwoYears!

InConstructionFinal

Planning PlanningUpscale 323 320 135UpperMidscale 125 716 356Midscale 160 258 97Independent 670 132 140Total 1,278 1,426 728

Tulsa, OK Pipeline Report, August 2016

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Tulsa,OKKeyPerformanceIndicatorOutlook(%Changevs.PriorYear)2016- 2017

Outlook

2016Forecast

2017Forecast

Occupancy -4.7% -2.1%

ADR 1.6% 1.1%

RevPAR -3.2% -1.0%

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OklahomaCity,OK

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26© 2016 STR. All Rights Reserved.

OklahomaCity:WeakOilPrice=RoomDemandNowNegative

-15.0

-10.0

-5.0

0.0

5.0

10.0

$30

$40

$50

$60

$70

$80

$90

$100

2014 2015 2016

CrudeOilFuturesPrice/Barrel(LHS)

Demand%Change(RHS)

*Monthly Oil price Future / Barrel vs. OKC Room Demand % Change 1/2014 – 07/2016http://www.investing.com/commodities/crude-oil

27©2016STR.AllRightsReserved.

OklahomaCityYTD:WhatWillHappenToADR?

%Change

• RoomSupply 1.0%• RoomDemand -2.3%• Occupancy 61.7% -3.3%• A.D.R. $84 0.2%• RevPAR $52 -3.1%

Oklahoma City, July 2016 YTD

28© 2016 STR. All Rights Reserved.

OKCWeekday/WeekendOcc:HealthyOccupancyOnTheWeekends

51.0

55.1

62.560.6 59.5

63.761.2

52.2

66.0

72.769.7

73.675.3

69.2

January February March April May June July

Weekday Weekend

*OKC; WD/WE, OCC %, by Month 2016

29© 2016 STR. All Rights Reserved.

OKCWeekday/WeekendADR:AlmostNoDifference?

$81 $82$85 $85 $86 $84 $83

$77$82

$85 $85$88

$86$83

January February March April May June

Weekday Weekend

*OKC; WD/WE, ADR $, by Month 2016

30© 2016 STR. All Rights Reserved.

StrongOKCPipelineWillImpactResultsGoingForward

InConstruction FinalPlanning Planning

UpperUpscale 150 204Upscale 1,064 616 144

UpperMidscale 839 988 443

Midscale 86 385 647

Economy 40Total 2,029 2,139 1,438

Oklahoma City, OK Pipeline Report, August 2016

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OklahomaCity,OKKeyPerformanceIndicatorOutlook(%Changevs.PriorYear)2016- 2017

Outlook

2016Forecast

2017Forecast

Occupancy -3.2% -2.1%

ADR 0.1% 1.2%

RevPAR -3.1% -0.9%

32

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©2016STR,Inc.AllRightsReserved.Anyreprint,useorrepublicationofallorapartofthispresentationwithoutthepriorwrittenapprovalofSTR,Inc.orSTRGlobal,Ltd.tradingasSTR(collectively“STR”)isstrictlyprohibited.AnysuchreproductionshallspecificallycreditSTRasthesource.ThispresentationisbasedondatacollectedbySTR.Nostrategicadviceormarketingrecommendationisintendedorimplied.