ahla annual report 2013

ANNUAL REPORT

Alberta Hotel & Lodging Association

2013

our vision is to be the leading voice and resource for Alberta’s tourism and hospitality industry, offering relevant programs and services to a growing membership.

Our purpose is to support our members and strengthen Alberta’s tourism and hospitality industry.

Through our four pillars of Tourism

Marketing, Member Value Programs, Human

Resource Development and Government

Relations we strive to provide programs

and services that enhance the economic

prosperity and social fabric of our industry.

We achieve this by living our 8 Key Values of:

TAbLE Of CONTENTs

2013-2014 Board of Directors .......................................................................................................................................... 2

2013 Year at a Glance ...................................................................................................................................................... 2

Report of the Board Chair and President & CEO ................................................................................................................ 4

Strategic Objectives Objective #1 ............................................................................................................................................................. 8 Objective #2 ............................................................................................................................................................ 14 Objective #3 ............................................................................................................................................................ 18 Objective #4 ............................................................................................................................................................ 24 Objective #5 ............................................................................................................................................................ 30

2013 Financial Statements .............................................................................................................................................. 342013 Auditor’s Report...................................................................................................................................................... 35

2013-14 bOARD Of DIRECTORs

Executive Perry Wilford, ChairGlenmore Inn & Convention Centre,Calgary

Michael Sieger, First Vice Chair, Chair, FinanceHilton Garden Inn West Edmonton

Perry Batke, Vice Chair, Chair, Member Value ProgramsBest Western Denham Inn & Suites, Leduc

Tina Tobin, Vice Chair, Chair, Tourism MarketingAlberta Place Suite

Mike Shymka, Past Chair, Chair, GovernanceTown & Country Motor Hotel, Calgary

Dave Kaiser, CHA, President & CEOAlberta Hotel & Lodging Association

Directors North Mark Hope, Chair, Human Resource DevelopmentCoast Hotels & Resorts

Peter ParmarNova Hotels & Resorts

Tony VerbiskyRamada Inn, Lloydminster

Steven Watters, Chair, Government RelationsSawridge Inn & Conference Centre Fort McMurray

Directors Central Robin CumineRadisson Hotel Edmonton South

Directors South Chris BarrBanff Aspen Lodge

Leanne Shaw-BrotherstonCountry Inn & Suites by Carlson, Calgary

Directors RetiredJoseph ClohessyCalgary Marriott Downtown

Tanya YurkoBellstar Hotels & Resorts, Canmore

2013 AHLA ANNUAL REPORT

2013 YEAR AT A GLANCE u 3

Report of the Board Chair and President & CEO

achieved in spite of the historic flooding

that devastated southern Alberta in June

2013 is testament to the resiliency of our

industry. Many AHLA members in impacted

areas showed their true spirit of hospitality

- often by going above and beyond to

accommodate flood victims and support

the recovery effort.


Alberta’s hotel and lodging industry posted

another strong year of performance in

2013. Revenue per available room (RevPAR)

improved 7.7% to $93.81 based on data

compiled by PKF Consulting. In fact, Alberta

led all provinces and Calgary topped all

Canadian cities in RevPAR for 2013.

That these impressive industry results were

Report of the Board Chair and President & CEO u 5

AHLA DIRECTORS ATTENDANCE 2013 - 2014

The AHLA Board of Directors started the year by re-affirming the strategic priorities developed in 2012.

1. To work on effective solutions to the HR challenge. 2. To increase the engagement of our membership. 3. To ensure that tourism marketing & tourism product development are funded in a sustainable manner and that efforts to market Alberta as a tourist destination are strategically aligned. 4. To provide relevant programs & services for members that also assure the sustainability of the AHLA. 5. To represent our members proactively on issues that matter to the tourism & hospitality industry.

The labour challenge continues to be the most pressing issue facing our members. Our ongoing investment in labour market research is critical to our government advocacy efforts to ensure foreign worker programs work for our industry. Our positive working relationship with the Alberta Immigrant Nominee Program is creating opportunities for temporary foreign workers who want to stay in Canada and work at our members’ properties.

We continue to focus on improving the HR management of our industry through our Employer of Choice program. We are encouraged by the number of AHLA members who find value in this program and have already achieved their certification. Demand for our training workshops for

housekeeping and front desk staff continues to grow. The member feedback we receive on these initiatives is extremely positive – telling us we are on the right track.

Attendance at our annual convention and at regional meetings was very positive in 2013. We appreciate the competing demands on our members’ time and continue to work hard to engage them. Providing timely and relevant information, as well as opportunities for learning and networking, remain high priorities for our association.

In 2013, the AHLA Board spent a great deal of time considering the growth and evolution of voluntary Destination Marketing Funds (DMFs) in Alberta. Our most critical work involved providing information to members on the federal Competition Act and its potential impact on how DMFs are governed and operated.

We continued to work collaboratively with Travel Alberta and Alberta Tourism Parks and Recreation (ATPR) to grow Alberta’s tourism industry. As a key stakeholder, we received invitations to attend several meetings of the Strategic Tourism Marketing Committee, Travel Alberta’s strategic planning retreat, and to provide input to Travel Alberta on new guidelines for their Cooperative Marketing Program.

We also provided input to ATPR on Alberta’s Tourism Framework and were pleased to be acknowledged as a key catalyst organization in the final document. We look forward to playing a

Meeting

Board Meetings 4/4 4/4 4/4 4/4 3/4 4/4 4/4 4/4 3/4 4/4 3/4 4/4New Board Orientation 1 1 1Committee Chair Orientation 1 1 1 1 1Board Retreat 1 1 1 1 1 1 1 1 1 1 1 1DMF Summit 1 1 1 0 1 1 1Governance Committee 1 1Board Conference Calls 2/3 3/3 3/3 2/3 2/2 2/2 0/2 2/2 1/2 2/2 2/2 1/1Finance Cmte Mtg 1/2 1/2 1/2 2/2 2/2 2/2Government Relations Committee 4/4 4/4 3/4 4/4 4/4 4/4Member Communications Committee 3/3 2/3 1/3 3/3 2/3 3/3AB Hospitality Editorial Board 3/4 4/4 0/3 3/4 3/3 2/3Member Value Programs Committee 1/1 2/2 1/2 1/2 2/2 2/2Human Resource Development Committee 2/2 2/2 1/2 2/2 1/2 2/2Tourism Marketing Committee 2/3 3/3 2/3 3/3 2/3 2/3Responsible Gaming Advisory Committee 2/2Provincial Impaired Driving Committee 1/1


PerryWilford

MichaelSieger

PerryBatke

MikeShymka

MarkHope

brand promise of Inspiring Service, Growing Value. They are a major reason why our membership is strong and continues to grow. We truly thank them for their dedicated efforts.

The commitment of our Board to the AHLA’s mission and values remains the foundation for our success. We continue to attract people to serve on our Board who want to build a stronger industry. The courage and integrity they demonstrated in tackling challenging issues this past year is inspiring to both of us. It was an honour to serve with them.

In closing, we thank all of our members for their strong support in 2013.

We look forward to serving you!

leadership role in the areas of workforce development and providing accommodation and campground information to consumers.

The dynamic nature of our industry environment demands that we be flexible and open to change. An example of this occurred in 2013 when we revisited our decision to stop publishing the official accommodation and campground guides for the province. When ATPR approached us about the need for these publications in the province’s Visitor Information Centers, we committed to work with them to publish the guides for 2014.

In 2013 we invested significantly to improve and transition our legacy accommodation and campground programs to digital platforms. As part of this transition, we are excited to lead a pilot project in 2014 for a national approved accommodation endorsed by the Hotel Association of Canada. This past year we worked on the development of this program and are excited about its launch under the Check In Canada brand. We look forward to working with provincial and regional destination marketing organizations across the country to create value for consumers, industry, and governments through Check In Canada.

The talent and experience that resides in our AHLA staff is a huge strength for our association. They are true professionals who work hard every day to deliver on our

Perry WilfordAHLA Board Chair

Meeting

Board Meetings 4/4 4/4 4/4 4/4 3/4 4/4 4/4 4/4 3/4 4/4 3/4 4/4New Board Orientation 1 1 1Committee Chair Orientation 1 1 1 1 1Board Retreat 1 1 1 1 1 1 1 1 1 1 1 1DMF Summit 1 1 1 0 1 1 1Governance Committee 1 1Board Conference Calls 2/3 3/3 3/3 2/3 2/2 2/2 0/2 2/2 1/2 2/2 2/2 1/1Finance Cmte Mtg 1/2 1/2 1/2 2/2 2/2 2/2Government Relations Committee 4/4 4/4 3/4 4/4 4/4 4/4Member Communications Committee 3/3 2/3 1/3 3/3 2/3 3/3AB Hospitality Editorial Board 3/4 4/4 0/3 3/4 3/3 2/3Member Value Programs Committee 1/1 2/2 1/2 1/2 2/2 2/2Human Resource Development Committee 2/2 2/2 1/2 2/2 1/2 2/2Tourism Marketing Committee 2/3 3/3 2/3 3/3 2/3 2/3Responsible Gaming Advisory Committee 2/2Provincial Impaired Driving Committee 1/1

Dave Kaiser, CHAAHLA President & CEO

PeterParmar

TonyVerbisky

StevenWatters

RobinCumine

Tina Tobin

Chris Barr

LeanneShaw-Brotherston

Report of the Board Chair and President & CEO u 7

STRATEGIC OBJECTIVE 1 To Work on Effective Solutions to the HR Challenge.

Well trained, committed employees are

critical to making Alberta’s lodging industry

competitive. Recruiting, training, and

maintaining staff remains our members’

number one priority. In 2013 the AHLA

provided members numerous resources

to help them address their HR challenges.

With greater staffing shortages predicted

in the coming years, the AHLA is taking a

proactive approach to ensure that we help

our members tackle these challenges

head-on.


STRATEGIC OBJECTIVE 1 u 9

2013 PROGREss

Addressing the Labour and Workforce Challenges of TodayStaffing shortages continue to beleaguer our industry. Research conducted by the AHLA and PricewaterhouseCoopers (PwC) confirms that staffing concerns and challenges with the Temporary Foreign Worker (TFW) program are putting the greatest strain on our members.

In response to these concerns, the AHLA continues to seek ways to address labour and workforce challenges. Specific tactics executed in 2013 included:

u Developing an online Job Bank that will offer an effective and dedicated site and create a competitive advantage in the hospitality industry. Further enhancements to the online Job Bank are planned for 2014.

u Advocating for AHLA members to government on the federal Temporary Foreign Worker program, Alberta Immigrant Nominee Program (AINP), and overall access to foreign labour pools. The AHLA was pleased that the Government of Alberta removed the limits on the number of employees that hotels could nominate for Front Desk Associate, Housekeeping Room Attendant and Food & Beverage Server positions through the AINP for 2013.

u Maintaining strategic partnerships and communication with educational institutions as well as industry and government stakeholders. The AHLA will be working with government and post secondary institutions to explore opportunities such as dual credit programs between high schools and colleges, targeting groups underrepresented in Alberta’s workforce, essential workplace skills, and tourism workforce development.

u Increased awareness and offered employee attraction and retention solutions through Western Financial Group Employee Health Benefit Plan, Manulife RRSP Program, and the Alberta Hotel Safety Association.

u Continued promotion of the Memorandum of

Understanding (MOU) signed by the AHLA in 2012 with the Jamaican Ministry of Labour and Social Security. This MOU helps assures our members access to a pool of qualified hospitality workers who are guaranteed by the Jamaican government, and significantly reduces the cost of recruiting employees from that country.

Labour Market and Wage SurveyThe 2013 Labour Market Survey was the first to combine the AHLA’s annual wage and salary survey with overall labour market data. The response from industry was outstanding, with over 30% of AHLA members submitting data. These members represent 47% of the guest rooms and 64% of the employees in Alberta’s accommodation sector.

Key Findings:u Foreign workers remain an important source of labour in hotels and motels around Alberta.u Accommodation is not a minimum wage industry.u Food & beverage servers, front desk agents, and room attendants are the hardest positions to fill.u Among properties that responded, foreign workers’ earnings do not differ significantly from wages earned by Canadians.u 21% of full time employees in the industry are foreign workers.u Women represent 58% of employeesu 27% of employees are age 15-24 u 53% of employees are age 25-44u 66% of employees work full timeu 2% of employees are Aboriginal

The survey results will help the AHLA develop a more permanent solution and create effective human resource strategies to keep Alberta’s accommodation industry healthy and competitive. The Labour Market Survey remains an important advocacy tool, helping the AHLA to clearly and credibly demonstrate the challenges our members are facing.


66%

OF EMPLOYEES WORK FULL TIME

2% of employees are Aboriginal58% of employees are female

27%

OF EMPLOYEES ARE AGE 15-24

53%

OF EMPLOYEES ARE AGE 25-44



Industry Recognition and Development The AHLA is committed to developing the profit in people by educating and raising the standards of human resource practices in the Alberta tourism and hospitality industry. In doing so, we have created a variety of strategies to enhance employee recruitment, retention, and engagement.

u Employer of Choice DesignationThe AHLA’s Employer of Choice (EoC) program measures HR practices and provides a customized report on each participating property’s strengths and identifies areas for improvement. The designation allows properties to distinguish themselves from other properties in Alberta through this recognized designation.

In 2013, the AHLA awarded 87 member properties for their outstanding efforts in achieving the designation.

u ScholarshipsEach year the AHLA awards up to $50,000 in scholarships to applicants enrolled in tourism and hospitality industry related or accredited programs. The focus of the scholarship program is to award students, employees of AHLA member properties and their relatives who have the potential to make a difference in our industry through the professional development they receive. In 2013 the

AHLA awarded $49,983.31 in scholarships to individual applicants directly or through a recognized educational institution in Alberta.

u Industry Training and CertificationThe AHLA offers seminars and workshops to our members, as well as providing occupational certification through emerit. In 2013, the AHLA conducted 30 workshops for over 320 front line Housekeeping and Front Desk staff. In doing so, we helped raise industry standards, the level of individual professionalism and the quality of the guest’s experience.

Planning for the FutureStrategy on Accommodation Industry LabourTo deal with the labour challenges ahead, the AHLA is developing a comprehensive and long term human resource strategy to help keep Alberta’s accommodation industry healthy and competitive.

The labour challenges around front line positions are a critical issue for the industry. To address this, the AHLA is working with the Governments of Alberta, the Government of Canada, as well as other industry organizations and post-secondary institutions to help our industry access the qualified labour it needs to serve local, national, and international visitors.

Key Goals:u Address the structural labour gap facing hotels and motels in Alberta by providing access to a qualified workforce that wants to work in the accommodation industry.u Reduce dependence of Alberta’s accommodation industry on the federal Temporary Foreign Worker Program.u Assure government, industry and employees that all parties will be treated fairly.

“The Employer of Choice

designation not only shows

us how we are performing

internally, but it also tells

our guests, current employees,

and our future employees what

kind of hotel we are. It sets us

apart from other hotels and

provides us with

a level of distinction.”

- Celia Koehler, Acclaim Hotel Calgary

“I learned so many new

techniques for how to

improve at my job.”

- Comment from Housekeeping Edge Training Sessions at the Ramada Hotel, Edmonton

2012 Result 2013 Target 2013 Result

Training Workshops 16 16 30

Employer of Choice Designations 73 70 87

% of guest rooms 17.5% 19.1%

% of employees in industry 7.6% 23.7%

Labour Market Survey Participants 258 300 268

% of guest rooms 51% 47%

% of employees in industry 64% 64%

Scholarship Awards $41,502 $50,000 $49,983

WFG Health Benefits 130 properties 135 properties 131 properties

Program Participants 2212 employees 2300 employees 2266 employees

Manulife RRSP 10 properties 12 properties 12 properties

Program Participants 164 employees 170 employees 153 employees

Performance Measures


With a membership that ranges from four room inns in small towns to full service resorts, the AHLA must ensure that every member has an opportunity to speak and to be heard. And while our members

vary by property size, customer base, community, service and amenities, each and every one matters, and is at the centre of everything we do.

STRATEGIC OBJECTIVE 2 To increase the engagement of our membership.



2013 PROGREss Attracting & Retaining MembersThe AHLA takes a strategic approach to targeting and enrolling new members. This has proven highly effective in driving membership and helping new members to get maximum value for their membership dues.

A Trusted & Reliable Source of InformationOur members trust the AHLA to stay abreast of issues and keep them informed as necessary. A vast amount of information is available to members through our Innsight newsletter, Alberta Hospitality magazine, www.ahla.ca, and monthly Innsider email updates.

Understanding what is relevant to our members helps us focus the information we provide. Our annual member survey provides our board and staff with valuable insights about what matters to our members.

In 2013, our members’ greatest concerns were:

Staff recruitment & retention

Improving occupancy/Average daily rate

Competition

Online Travel Agent (OTA) fees & commissions

Maintenance issues

The information our members provide is critical to shaping what programs and services the AHLA offers and how we deliver them, and is used by our board and staff.

Providing networking and educational opportunities Although a vast amount of information is available to members online and in print through the AHLA, nothing can replace the opportunity to meet face to face. These opportunities invariably give us food for thought and help us to see through our members’ eyes. We believe members come away with a better appreciation of the issues, and how the AHLA can help them.

Annual Convention & Trade ShowThe AHLA’s 93rd Annual Convention & Trade Show was held April 14-16 at the Fairmont Chateau Lake Louise, with almost 25% of our membership in attendance. In addition to networking and professional development opportunities, the convention included the Housekeeping Awards Gala, Gold Key Awards, and Employer of Choice Award presentations.

Regional MeetingsAHLA board members and staff visited 11 communities from Fort McMurray to Medicine Hat to talk with members about the issues that face our industry. These meetings focused largely on what the AHLA could do to address the ongoing shortage of people to work on the front lines of our members’ hotels. We were pleased to receive strong support from members for a permanent foreign worker solution, an online job bank through the AHLA, and an industry led alternative to traditional online travel agencies (OTAs).

Our members’ loyalty is never

taken for granted. The AHLA’s

95.6% member retention

reflects our members’ beliefs

that our industry is stronger

when we work together. We

recognize that every member

has a choice, and that we must

continually find new ways

to provide value through

our programs, services and

government relations efforts.



Members 871 878 884

Member Retention 96.5% 95.0% 95.6%

Industry penetration of guest rooms 96.1% 95.3%

Member participation in board elections 18.5% 16.6%

Member survey participation 20.7% 20% 15.8%

Member properties represented at convention 20.5% 20% 24.2%

Member satisfaction with convention 3.53 3.0 3.29

Member satisfaction with publications 3.24 3.0 2.95

Visits to www.ahla.ca 25,209 38,000 52,833


STRATEGIC OBJECTIVE 3 To Ensure that Tourism Marketing & Tourism Product Development are Funded in a Sustainable Manner and that Efforts to Market Alberta as a Tourist Destination are Strategically Aligned.

Alberta’s Tourism Levy is expected to

generate $85 million in 2013 - 2014.

As collectors and beneficiaries of the

Tourism Levy, AHLA members feel a

strong sense of stewardship towards

these funds. The provincial government

has acknowledged the importance of

the tourism industry as a contributor to

Alberta’s economy, and has maintained

its support for the Tourism Levy.


2013 PROGREss

Ensure the Accountability of Tourism Levy Dollars Allocated to Tourism Product DevelopmentThe Redford government’s 2013 budget changed the agreed upon allocation of the Tourism Levy from 80% to Travel Alberta and 20% to Alberta Tourism, Parks and Recreation (ATPR) to 70% to Travel Alberta and 30% to ATPR. As well, expenses that previously appeared in the Parks Division budget were moved to the Tourism Division budget. The AHLA will monitor future allocations to ensure that there is accountability for funds collected through the Tourism Levy.

The AHLA has developed an effective working relationship with Alberta Tourism, Parks and Recreation. This relationship has resulted in:

u ATPR’s Research & Investment Branch engaging PKF Consulting to provide the Alberta Accommodation Outlook at the AHLA’s 2013 convention. This information was also published in the Summer 2013 issue of Alberta Hospitality.

u The AHLA being asked to provide input on Alberta’s Tourism Framework, which was introduced by the Minister in October 2013. Two key areas of the Framework where the AHLA will be involved are:

1. Access to a motivated, educated/trained, skilled and professional tourism labour force.

2. Well-coordinated, convenient, relevant and innovative multichannel visitor information services engage and encourage visitors through every stage of their travel journey.

u Alberta’s Tourism Framework recognizing the AHLA as a catalyst organization in our province’s tourism industry.u Senior representatives of ATPR attending a meeting of

the AHLA’s Board of Directors to provide an update on the department’s activities and to discuss the change in allocation from 80/20 to 70/30. These representatives also attended the AHLA’s 2013 convention.

u ATPR’s support for a project that measured the impact and importance of the Housekeeping Awards to consumers and industry. This project will be the basis for future enhancements to the Housekeeping Awards program and brand.

u The continued publication of Alberta’s Official Accommodation Guide and Official Campground Guide for 2014.

To represent our members’ interests, the AHLA:

u Met twice with the Minister of Alberta Tourism, Parks and Recreation to inform him about the issues that impact our members, including labour, the Tourism Levy and Destination Marketing Fees.

u Met regularly with the Assistant Deputy Minister of the Tourism Division to discuss Alberta’s tourism funding model, provide an update on DMFs, AHLA approved accommodation/ campground programs including changes to the Housekeeping Awards, discuss STMC Report and draft Tourism Framework. u Met with the Wildrose tourism critic to inform the Official

Opposition about the importance of Alberta’s Tourism Levy and discuss the effectiveness of Travel Alberta as a provincial marketing organization.

u Worked with front line ATPR staff to provide up to date information to travelers, Visitor Information Centres and government on hotels, motels and campgrounds that were affected by the floods in southern Alberta.

u Participated in two meetings of the Strategic Tourism Marketing Council, providing information and industry perspectives on Destination Marketing Fees, the Tourism Levy, Alberta’s Tourism Framework and Travel Alberta’s 2014–15 Business Plan & Budget.

u Is working with ATPR’s Destination Competitiveness team to ensure that travelers have access to information about hotels, motels and campgrounds through web, mobile and printed publications.

Ensure the Accountability of Tourism Levy Dollars Allocated to Travel AlbertaAs collectors of the Tourism Levy, AHLA members expect a high level of accountability from Travel Alberta. Travel Alberta’s mission is to grow tourism revenues with compelling invitations to visit Alberta. Their approach has been to maximize marketing investment, hunt for cost efficiencies, be accountable to industry, and run their business like a business. The AHLA and our members strongly support this approach.


$85

MILLIONAlberta’s Tourism framework recognizes the ahlaas a catalyst organization in our province’s tourism industry.


IN 2013–2014 ALBERTA’S TOURISM LEVY IS EXPECTED TO GENERATE

In 2013, the AHLA represented our members’ interests by:

u Discussing areas of common interest such as Alberta’s tourism funding model, the federal Competition Act and support for the Canadian Tourism Commission.u Providing input on changes to Travel Alberta’s cooperative marketing funding model.u Providing input on Travel Alberta’s 2014–2017 Strategic Planu Inviting Travel Alberta’s CEO and Chief Marketing Officer to attend a meeting of the AHLA’s Board of Directors to provide an update on Travel Alberta’s activities and discuss CheckInCanada.com. u Working with Travel Alberta on the Alberta pilot of Check In Canada, a national approved accommodation directory that will reduce the cost of Online Travel Agencies (OTAs) to both industry and government.

Travel Alberta continues to play an important role in the Housekeeping Awards program by recognizing hotels for achieving the highest standards of cleanliness, maintenance and state of repair required to receive the Housekeeping Award at the AHLA’s annual convention.

Provide Information and Resources on the Implementation, Administration & Governance of Destination Marketing Fees (DMFs) in AlbertaSince 2010, the AHLA has worked to develop an industry driven solution for the implementation, governance & administration of DMFs that complements the existing tourism marketing model and mitigates the risks.

Currently, 14 destination marketing programs operate in Alberta. Of these 11 are community based, and three are privately operated.

u Handled inquiries from guests and hotels about the application and administration of DMFs.u Provided information to individual DMF Collectors about the potential impacts of the federal Competition Act and the review of Alberta’s Municipal Government Act. u Conducted a two day board governance and strategic planning session for Edmonton Destination Marketing Hotels.

DMF Collector SummitIn June, the AHLA brought together DMF Collectors from around Alberta to share matters of importance to their organizations and AHLA members. The AHLA’s second DMF summit included presentations from:

u The federal Competition Bureau’s Assistant Deputy Commissioner and Competition Law Officeru Travel Alberta regarding to the cooperative funding modelu Alberta Tourism, Parks and Recreation on Alberta’s Tourism Frameworku Osler LLP

Every DMF Collector in the province was represented at this summit. With the support of all participants, the AHLA engaged the legal firm Osler LLP to provide their views on what hotels, DMF Collectors and industry associations should and should not do to ensure they comply with the federal Competition Act.

Trustee for DMF Collectors:As trustee for six DMFs, the AHLA collects and distributes DMF funds as directed by each DMF Collector. This work is performed on a fee for service basis. u Calgaryu Canmoreu Edmontonu Jasperu Lethbridgeu Medicine Hat

Our role as trustee helps us:

u Understand the issues and challenges facing DMFs collectors, u Support alignment of tourism marketing activities, and u Help DMFs comply with CRA legislation as well as generally accepted accounting practices.




Member Satisfaction with Other Stakeholders

Travel Alberta 3.21 - 3.27

Alberta Tourism, Parks & Recreation 3.15 - 2.97

Travel Alberta views AHLA as a valued stakeholder 3.90 3.0 3.83

TPR views AHLA as valued stakeholder 3.67 3.0 3.75

Satisfaction with AHLA Government Relations Initiatives:

Influencing tourism policy - 3.0 3.02

Travel Alberta 3.25 3.0 3.22

Ensuring sustainable funding for tourism - 3.0 2.90

Destination Marketing Fees 3.09 3.0 2.99

DMFs that have adopted the

Voluntary Code of Conduct for DMF Collectors 4 7 4

DMF Collector Satisfaction with AHLA Trustee Service 3.44 3.0 3.78


STRATEGIC OBJECTIVE 4 To Provide Relevant Programs & Services for Members that Also Assure the Sustainability of the AHLA.

Each year the AHLA refines our programs

and services to equip members with

the tools they need to do business. We

continually review and refine our offerings

to a constantly changing industry, and

position member properties to succeed for

the future.


2013 PROGREss

Mitigating the High Cost of Online Travel Agencies In 2012 Online Travel Agencies (OTAs) removed an estimated $39.8 million from Alberta’s hotel industry. The AHLA is helping combat this problem through Check In Canada – the industry’s answer to the OTAs.

The AHLA has provided information tools that traveling consumers have used to select accommodations in Alberta for over 20 years. In the past, this has been done by conducting annual unannounced inspections and then distributing the information gathered through:

u Alberta’s Official Accommodation Guideu Alberta’s Official Campground Guideu Listings on www.TravelAlberta.comu Star Rating Programs

The Digital Evolution of Alberta’s Trusted Official GuidesIn 2013, the AHLA moved firmly into the digital realm and continued work that began in 2012 for dynamic websites for both the Approved Campground Guide and the Approved Accommodation Guide. The websites are aligned with the purpose of our traditional printed guides: to deliver accurate information to consumers and help them choose accommodations that meet their needs. Recognizing the importance of and demand for consumer generated content, the AHLA also partnered with TrustYou, an online reputation management company to deliver accurate information and sentiments for each property in the province in real time. Both websites are now live and fully functioning, however the AHLA continues to monitor and refine both sites based on internal testing and user feedback. In 2013 the groundwork was laid to boost the online presence of both websites. This will remain a priority for 2014.

The Approved Accommodation website, www.checkincanada.com, will be used as a pilot for a Canada-wide accommodations booking solution. Checkincanada.com will give consumers the best of both worlds by offering a similar experience to online travel agencies (OTAs) while allowing them to book directly with the hotel. As a result, travelers receive the following benefits not offered by OTAs:

u Reservation security. Booking through Check In Canada means the guest is the hotel’s customer, not the OTA’s.

u Opportunity to earn loyalty points with the hotel.u Quality assurance with the inclusion of optional third party ratings from the Star Quality program.u TrustScoreTM ratings that provide an all-encompassing scorecard for each property based on reviews from all across the web.

The website will also be used to promote and leverage other programs such as Star Quality and Green Key.

Official Accommodation and Campground Guides Remain in PrintIn 2011 the AHLA’s Board of Directors decided to phase out production of the Official Accommodation and Campground Guides in light of the declining use of print media by consumers and advertisers, and the growing trend towards electronic media. In 2012, Alberta Tourism, Parks & Recreation (ATPR) expressed concern about eliminating the printed guides and approached the AHLA about finding a way to continue printing the guides, particularly the Campground Guide.

The AHLA agreed to print both the Official Accommodation Guide and Official Campground Guide once again for 2014 due to strong demand from our industry and government partners.

Approved Accommodation Programu For the first time since 1983, only hotels that applied for the Housekeeping Award were inspected as part of the Approved Accommodation Program inspections.u Conducted verifications for the Hospitality Insurance Program offered by Western Financial Group and the AHLA.

Check In CanadaIn 2013 significant traction was made towards preparing Check In Canada to be consumer ready. Notable developments include: u Development of the Check In Canada business plan. u Creation of the Check In Canada brand.u Creation of www.checkincanada.com website.u MOU with JackRabbit Systems to provide Direct Booking technology.u Partnership with TrustYou for consumer generated content aggregated reviews.u Endorsement by the Hotel Association of Canada.u Integration of Star Quality ratings into the program and filters on the site.


Preparing for the futureIn 2014, the AHLA will continue its transition to the digital world by building on checkincanada.com and albertacampgroundguide.ca. Plans for full social media strategies and several blogs are underway. The AHLA will continue adding new technology to our current offerings.


Inspections

Approved Accommodation Program 286

New Property Inspections 14

Hospitality Insurance Program (HIP) 313

Star Quality 3

Star Quality Participation 191

Star Quality Industry Penetration 21.9%

Accommodation Guide Distribution 120,000

Campground Guide Distribution 185,000

www.albertacampgroundguide.ca Unique Visitors 141,530

www.albertacampgroundguide.ca Total Visits 251,657

Delivering Competitive Programs and Services The AHLA’s Member Value Programs have been specifically developed for the hotel and lodging industry by people who understand the industry. We work hard to provide members with the best value for the products and services they need.

By combining the purchasing power of our membership, everybody benefits – paying less while receiving more value.

Carbon OffsetsEcoStayTM helps members generate revenue for conservation projects at their property, while helping them become carbon neutral. In 2013, 18 members generated $157,333 in revenue to fund on-site and community initiatives to conserve energy and lower emissions. Thanks to members and their guests, over 2.9 million hotel night stays have been offset to date, removing a total of over 82,346 tonnes of carbon emissions from our global atmosphere, or the equivalent of 329 million km of vehicle travel.

Carbon offsets purchased under the EcoStayTM program come from projects located within Alberta that are registered on the CSA Standards GHG CleanProjects Registry.


TrustYouIn response to the growing need for members manage their online reputation, in late 2013 the AHLA partnered with TrustYou. Since 2008, TrustYou has set the standard for online reputation management with solutions for businesses to analyze reviews, tweets and posts across the social web from over 250 review sites (including Twitter, Facebook, TripAdvisor, Expedia, and Hotels.com).

Members will receive a number of benefits with the Online Reputation Management (ORM) program, including:

u Data for their property and five competitors;u A breakdown of their property’s performance in a number of categories;u Free guest satisfaction survey;u Reputation monitoring: daily email alerts, identifing positive and negative trending topics, translating reviews, tracking trends and feedback from Twitter, Facebook, etc., identifing guests who check-in via their social networks.

The information TrustYou provides is crucial to improve customer satisfaction, increase sales, drive marketing efforts and perfect customer service.

Home & Auto InsuranceSince 2009, Johnson Inc. has offered home and auto insurance solutions to the hotel industry. The program is designed exclusively for members at no cost to their business. Members can use the program as part of their employee benefit package, offering savings on insurance premiums through competitive stable rates, enhanced coverage, secure 24/7 on-line access and toll-free direct line access to a personal service supervisor.

In 2013, 113 quotes were requested resulting in 54 new policies being written, a 47.8% consent ratio. As of December 31, over 70 employees benefitted from the program.

Power ProgramThe ENMAX Energy Corporation / AHLA Power Program provides members with the opportunity to lock in their rates* for electricity at wholesale prices. As of December 31, 2013, over half of our members were on the program.

Participating members also had the opportunity to take advantage of extending their contracts and lock in their electricity rates* for 2016 and 2017. 61% of participating members opted to extend their contracts.

You can choose any retailer listed at www.ucahelps.alberta.ca or by calling 310-4822 (toll-free). Electricity delivery to your home or business isn’t affected by your choice of retailer.*Some conditions, admin, other fees and taxes beyond the electricity rate also apply.

Property TaxesAltus Group has extensive experience in assessing and appealing property taxes for the hotel industry in Canada. AHLA members that utilize this program benefit by receiving:

u $0 upfront costs for Altus Group’s servicesu Services provided on a contingency basis, at a fee of 40% of any savings generatedu Representation by property tax professionals who have a strong understanding of both the tax system and our industry

In 2013, 10 members went through the appeals process with Altus Group and as a result saved over $85,000 on their property taxes.

InsuranceRisk management and loss prevention services continue to play a significant role in helping members to reduce claims. In 2013, Western Group Insurance Solutions loss prevention analysts visited 492 properties assisting members with their policies and procedures respecting risk management and loss prevention.

2013 policy negotiations were impacted not only by the floods in southern Alberta but also by many other severe weather related occurrences throughout Canada, causing major water, sewer back-up and fire losses. The Protected Self Insurance structure of the Hospitality Insurance Program (HIP) helped to control insurance costs for participating members. Members participating in the HIP Beverage Pool received a renewal increase on August 1, 2013 of approximately 4%. Members participating in the HIP Lodging Pool received a renewal increase of approximately 15% on December 1, 2013. This is the sixth policy year of the Hospitality Insurance Program.

Office SuppliesSince 2010, AHLA members have saved on office and guest room supplies through Staples Advantage, Canada. Members receive:

u Discounts on catalog pricingu Next day deliveryu Ease of use ordering solutions through www.eway.ca


EcoStay Carbon Offsets 2%

Electrical Energy 54%

Employee Benefits 15%

Employee RRSPs 1%

Home & Auto Insurance N/A

Mat Services 4%

Natural Gas 19%

Office Supplies 9%

Property Taxes 1%

Self Insurance – Lodging Division 30%

Self Insurance – Beverage Division 6%



Average Programs per member 1.83 1.24 1.24

% of members participating in one or more programs 85.9% 73.5% 73.8%

*Above results are based on Member participation only. Targets were altered from 2012 due to the reclassification of Campground Members to Associate Members and the

discontinuation of two programs, AGLC Liquor Bond and Globalive Telecomunications.

*The home and auto insurance program is an employee benefits program and is tracked by number of employees, not by member penetration.


program penetration

STRATEGIC OBJECTIVE 5 To Represent our Members Proactively on Issues that Matter to the Tourism & Hospitality Industry.

Through the AHLA, our members

are recognized by industry partners

and government alike as important

stakeholders in Alberta’s economy.

The AHLA remains committed to ensuring

that decision makers understand issues

that affect tourism and hospitality, and

strives to protect our members’ interests

when decisions are made.


2013 PROGREss

Representing the interests of AHLA members

The AHLA undertook its first ever government relations issues survey in 2013. The survey results confirmed our members’ recognition that a sustainable model of funding for tourism is critical to the health of our industry. In order of importance, the five most important issues identified by members were:

1. Allocation of Tourism Levy to tourism marketing & product development2. Tourism marketing through Travel Alberta3. Creation of a Permanent Foreign Worker Solution4. Employment Standards5. Tourism product development

The AHLA’s work on tourism issues is outlined under Strategic Objective 3.

Labour & ImmigrationGiven the state of Alberta’s economy, our industry’s focus is on finding, training and retaining the very best people regardless of gender, race or background. Hiring Canadians first only makes logistical, financial & cultural sense, but the structural labour gap that exists makes hiring foreign workers a necessity for many hotels and motels. The rate of progress on this issue is impacted by the fact that the labour and immigration file crosses both provincial and federal levels of government.

The AHLA believes that Alberta’s accommodation industry is facing a structural labour gap that can only be closed if there are more people, from Canada or abroad, who are willing and able to work in hotels and motels around our province. The AHLA is working closely with the Hotel Association of Canada to develop the business case for a permanent solution to the Foreign Worker program for the hotel & lodging industry.

In May of 2013, the federal government implemented a number of changes to the Temporary Foreign Worker Program (TFWP) in response to highly publicized abuses of the program. Although many of these changes are targeted at higher-skilled occupations, the AHLA expects that our members will feel the impacts for lower-skilled occupations. One of the most onerous changes is the expectation that employers who rely on TFWs have a firm plan in place to transition to a Canadian workforce. The AHLA believes this is not realistic for our industry.

Alberta Members of Parliament understand the difficulty employers in our province have in finding the people they need; however in regions of the country with higher unemployment there is little political appetite to support the Temporary Foreign Worker program. As an industry, we need to tell the public about the benefits that foreign workers bring to the places where they work and communities where they live.


17% Very Effective

38% Effective

20% Fairly Effective

3% Not Effective

22% Do not know / Unsure

Overall, how would you

rate the effectiveness

of AHLA’s Government

Relations Pillar?Government

Relations

17%

38%

20%

3%

22%

The Alberta government recognizes the shortage of workers that our members face, and has made genuine efforts through the Alberta Immigrant Nominee Program (AINP) to help employers retain foreign workers who want to continue working in hotels and motels around the province. In 2013, the AHLA:u Supported the provincial government’s efforts to address the accommodation industry’s need for foreign workers, which included: • Lifting the limits on applications from the hotel and lodging industry through the AINP for six months. • Increasing the ratio of provincial nominee certificates allocated to NOC codes C & D, which include positions critical to our industry. • Changes to the allocation limit per property for the 2013 calendar year for Front Desk Clerks/Agents, Food and Beverage Servers, and Room Attendants. • Streamlined experience and language requirements. • Creation of the Alberta Work Experience (AWE) category, which, for a three month window frame, allowed eligible foreign workers to apply to nominate themselves for permanent residency.u Met with the Honourable Thomas Lukaszuk, Minister of Enterprise and Advanced Education (EAE). The Minister recognized the challenges that AHLA members are facing and the economic growth that Alberta’s tourism industry can create if it has access to the labour it needs. The Minister expressed interest in ways to professionalize the industry, including postsecondary credits and certifications. u Arranged for EAE staff to meet with hotel human resource managers, to discuss issues, concerns and highlights from the front lines of the hotel business. EAE also attended regional meetings to inform members about changes to the AINP.

Liquor & Gamingu Participated in AGLC’s Class E Licencee policy review, suggesting that: • Licencees should have access to a diverse range of products including new offerings, • The regulatory framework should encourage innovation and reward those businesses that operate in Alberta, and • Products made locally benefit Alberta’s tourism industry and our provincial economy. The AHLA believes that changes that promote responsible expansion of manufacturing of adult beverages in Alberta are beneficial to the provincial economy.u Responded to AGLC’s review of mandatory third party liability

insurance for all Class A Minors Prohibited licenced premises. The AHLA is in favour of requiring all Class A liquor primary licencees to carry third party liability insurance. This would help promote the responsible service of alcohol and proper security at licensed premises. This would not be an added cost for reputable licencees, since most already carry adequate insurance coverage as a condition of lender financing and to protect their investment in their properties.

u Informed AGLC’s Board of Directors about the AHLA’s longstanding role in the liquor and gaming industry.u Attended AGLC’s Stakeholder Advisory Committee meeting

and CEO Roundtables to discuss liquor and gaming issues as well as opportunities for innovation and growth. These sessions provide insight into AGLC’s strategic directions and encourage productive dialogue on issues.

u Attended meetings of the Provincial Impaired Driving Committee to monitor and provide input on impaired driving prevention and enforcement initiatives. u Director Perry Batke participated in the Responsible Gambling Advisory Committee’s strategic planning workshop. u Sponsored the First International Conference on the Prevention of FASD held in Edmonton.


2013 2012 Travel Alberta 3.22 3.25

Influencing tourism policy 3.02 2.93

Destination Marketing Fees 2.99 3.09

Tourism Levy administration 2.94 3.21

VLT policy 2.91 3.21

Minimum wage policy 2.91 3.20

Ensuring sustainable funding for tourism 2.90 3.09

Liquor policy 2.89 3.09

Taxation 2.82 3.06

Foreign Worker Policy (TFW, AINP) 2.74 3.01

Music tariffs 2.40 2.44

Member Satisfaction with Government Relations Initiatives *all scores are out of 4

FINANCIAL STATEMENTS


FINANCIAL STATEMENTS u 35

Page 1PricewaterhouseCoopers LLPTD Tower, 10088 102 Avenue NW, Suite 1501, Edmonton, Alberta, Canada T5J 3N5T: +1 780 441 6700, F: +1 780 441 6776

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

March 24, 2014

Independent Auditor’s Report

To the Members of

Alberta Hotel and Lodging Association

We have audited the accompanying financial statements of Alberta Hotel and Lodging Association GeneralAdministration Fund, which comprise the balance sheet as at December 31, 2013 and the statements ofsurplus, revenues and expenses and cash flows for the year then ended, and the related notes, whichcomprise a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with Canadian generally accepted auditing standards. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Page 1PricewaterhouseCoopers LLPTD Tower, 10088 102 Avenue NW, Suite 1501, Edmonton, Alberta, Canada T5J 3N5T: +1 780 441 6700, F: +1 780 441 6776

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

March 24, 2014

Independent Auditor’s Report

To the Members of

Alberta Hotel and Lodging Association

We have audited the accompanying financial statements of Alberta Hotel and Lodging Association GeneralAdministration Fund, which comprise the balance sheet as at December 31, 2013 and the statements ofsurplus, revenues and expenses and cash flows for the year then ended, and the related notes, whichcomprise a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with Canadian generally accepted auditing standards. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Page 2

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position ofAlberta Hotel and Lodging Association General Administration Fund as at December 31, 2013 and theresults of its operations and its cash flows for the year then ended in accordance with Canadian accountingstandards for not-for-profit organizations.

Chartered Accountants

AchesonNova Inn

AirdrieBest Western Regency InnComfort Inn & Suites Holiday Inn Express Hotel & Suites Ramada Hotel & SuitesSuper 8

AlixAlix Hotel

AnzacSurmont Lodge

AthabascaAthabasca Hillside MotelAthabasca Lodge Motel

Days Inn Grand Union HotelNew Western Athabasca InnSuper 8 Athabasca Open Camp Ltd.

BanffArrow MotelBanff Aspen LodgeBanff Caribou Lodge & SpaBanff InnBanff International HostelBanff International HotelBanff Park Lodge Resort Hotel & Conference CentreBanff Ptarmigan InnBanff Rocky Mountain ResortBanff Voyager InnBest Western PLUS Siding 29 Lodge

Bow View LodgeBrewster’s Mountain LodgeBrewster’s Shadow Lake LodgeBuffalo Mountain LodgeBumper’s InnCastle Mountain ChaletsCharlton’s Cedar CourtDelta Banff Royal Canadian LodgeDouglas Fir Resort & ChaletsDriftwood InnFairmont Banff SpringsHidden Ridge ResortHigh Country InnHomestead InnInns of BanffIrwin’s Mountain InnJohnston Canyon ResortKing Edward HotelMount Royal Hotel

Mountain Home Bed & BreakfastRed Carpet InnRundle ManorRundlestone LodgeSpruce Grove InnThe Banff CentreThe Fox Hotel & SuitesThe Juniper Hotel & BistroThe Rimrock Resort HotelTunnel Mountain Resort

BarrheadBarrhead Neighbourhood InnRed Baron InnSunset Cove MotelThe Barrhead Inn & Suites

BashawBashaw Commercial Hotel


Alberta Hotel and Lodging AssociationGeneral Administration Fund

Statement of SurplusFor the year ended December 31, 2013

Page 4

2013$

2012$

Balance – Beginning of year 3,958,266 3,739,722

Excess of revenue over expenses for the year 16,249 218,544

Balance – End of year 3,974,515 3,958,266

BassanoImperial Hunter HotelPrairie Schooner Motel (2000)R&R Inn Bassano

BeaverlodgeBeaver InnBeaverlodge HotelBeaverlodge Motor Inn

BeisekerMotel 9 LTD

BellevueBedside Manor Bed & Breakfast

BentleyBentley Hotel

Big ValleyBig Valley Inn

Black DiamondBlack Diamond Hotel

BlackfaldsMicrotel Inn & Suites

BlairmoreHistoric Cosmopolitan HotelThe Kanata Blairmore

BlufftonDeer Creek Lodge

BonnyvilleBest Western Inn & SuitesBonnyville Neighbourhood Inn

Centre Suite InnsHoliday Inn Express Southview MotelWestern Budget

Bow IslandSilver Sage Motel

BoyleBoyle HotelBoyle Motor InnTwilight Country Motel

BretonBreton Hotel

BrooksBrooks HotelHeritage Inn & Suites

Heritage Inn Hotel & Convention CentreLakeview Inns & Suites Newell HotelPlains MotelRamada Super 8 Tel Star Motor InnTravelodge

BruceBruce Hotel

BruderheimBruderheim Hotel

BusbyBusby Hotel

Alberta Hotel and Lodging AssociationGeneral and Administration Fund

Statement of Revenue and ExpensesFor the year ended December 31, 2013

Page 5

2013$

2012$

Tourism Marketing (schedule 1)1. Revenue 434,061 1,056,0712. Expenses 428,501 649,144

Excess of revenue over expenses 5,560 406,927

Member Value Programs (schedule 1)3. Revenue 689,999 629,3714. Expenses 144,207 172,083


Human Resource Development (schedule 1)5. Revenue 232,246 318,8496. Expenses 261,001 280,887

Excess of expenses over revenue (28,755) 37,962

Membership Communications (schedule 1)7. Revenue 1,078,675 990,2708. Expenses 541,540 547,474


Government and Industry Relations (schedule 1)9. Revenue 24,665 -10. Expenses 188,836 187,053

Excess of expenses over revenue (164,171) (187,053)

Scholarship (schedule 1)11. Revenue - -12. Expenses 52,257 41,503

Excess of expenses over revenue (52,257) (41,503)

13. Other income (note 15) 305,372 238,625

14. General expenses (schedule 1) (1,132,427) (1,136,498)


Total revenue 2,459,646 2,994,561Total expenses (1,616,342) (1,878,144)Other income (note 15) 305,372 238,625General expenses (schedule 1) (1,132,427) (1,136,498)


CalgaryAcclaim Hotel Calgary AirportAloft Calgary UniversityAmbassador Motor InnBest Western Airport InnBest Western PLUS Calgary Centre InnBest Western PLUS Port O’Call HotelBest Western PLUS Suites DowntownBest Western PREMIER Freeport Inn & SuitesBest Western Village Park InnCalgary Marriott Downtown HotelCanadas Best Value Inn (Royal Wayne)Carriage House InnCentro MotelClarion Hotel & Conference CentreCoast Plaza Hotel & Conference CentreComfort Inn & Suites Calgary AirportComfort Inn & Suites Calgary University

Comfort Inn & Suites SouthCountry Inn & Suites By CarlsonCourtyard by Marriott Calgary AirportDays Inn Calgary AirportDays Inn Calgary NorthwestDays Inn Calgary SouthDeerfoot Inn & CasinoDelta Bow ValleyDelta Calgary AirportDelta Calgary SouthEcono Lodge Inn & Suites UniversityEconoLodge Motel VillageEconoLodge SouthExecSuite Inc.Executive Royal Hotel Executive Suites by RosemanFairmont PalliserFour Points by Sheraton Calgary AirportFour Points by Sheraton Calgary West

Glenmore Inn & Convention CentreGreenwood Inn & Suites Hampton Inn & Suites Calgary AirportHampton Inn & Suites Calgary UniversityHampton Inn by HiltonHilton Garden Inn Calgary AirportHoliday Inn Calgary AirportHoliday Inn y MacLeod Trail SouthHoliday Inn Express Hotel & Suites Airport CalgaryHoliday Inn Express Hotel & Suites Calgary DowntownHoliday Inn Express Hotel & Suites Calgary SouthHotel ArtsHotel BlackfootHotel ElanHyatt Regency International Hotel Suites

Kensington Riverside InnLakeview Signature Inn Nuvo Hotel SuitesOlympia LodgeRadisson Hotel & Conference Centre Calgary Airport EastRamada Hotel DowntownRed Carpet InnRegency SuitesResidence Inn by Marriott Calgary AirportRoadking Inns Sandman Hotel & Suites Calgary SouthSandman Hotel & Suites Calgary WestSandman Hotel Calgary AirportSandman Hotel Calgary City CentreService Plus Inns & Suites CalgarySheraton Cavalier HotelSheraton Suites Calgary Eau ClaireStaybridge Suites Calgary Airport



Statement of Cash FlowsFor the year ended December 31, 2013

Page 6

2013$

2012$

Cash provided by (used in)

Operating activities1. Excess of revenue over expenses for the year 16,249 218,544

Items not affecting cash2. Amortization of property and equipment, intangible and other

assets 185,330 194,8943. Loss on disposal of equipment - 1824. (Gain) loss on investments (19,622) 1,230

181,957 414,850

5. Net change in non-cash working capital items (note 17) (112,237) (155,157)

6. Net change in receivable from/payable to the Alberta Hotel SafetyAssociation (106) 31

69,614 259,724

Investing activities7. (Increase) decrease in trading investments (21,013) 344,1828. Purchase of property and equipment (7,676) (24,690)9. Development costs of intangible assets (189,626) (43,042)10. Deposits received 32,595 -

(185,720) 276,450

Financing activities11. Payment of long-term debt (133,344) (344,456)

(Decrease) increase in cash and cash equivalents (249,450) 191,718

Cash and cash equivalents – Beginning of year 432,406 240,688

Cash and cash equivalents – End of year 182,956 432,406

Supplementary informationInterest received 27,169 32,854

Interest paid 55,606 61,984

Super 8 ShawnessySuper 8 Village The Pointe InnThe Westin Town & Country Motor HotelTraveller’s InnTravelodge Calgary UniversityTravelodge Hotel Calgary International AirportTravelodge Hotel Calgary Macleod TrailWingate By Wyndham

CamroseAlice HotelBEST WESTERN PLUS Resort CasinoCamrest MotelCamrose MotelHotel MaradaNorsemen Inn

R&R Inn & SuitesRamada Stardust MotelSuper 8 Travellers Inn Windsor Hotel

CanmoreAkai MotelBanff Gate Mountain ResortBest Western PLUS Pocaterra InnBlackstone Mountain LodgeBow Valley MotelCanadian Rockies ChaletsCanmore CrossingCanmore Rocky Mountain InnCreekside Country InnEconoLodge Canmore Mountain LodgeFalcon Crest Lodge

Fire Mountain LodgeGrande Rockies ResortHoliday Inn Mystic Springs Chalets & Hot PoolsQuality Resort Chateau Radisson Hotel & Conference Center Ramada Inn & SuitesRocky Mountain Ski LodgeRundle Mountain LodgeSilver Creek LodgeSolara Resort & SpaStoneRidge Mountain ResortThe Drake InnThe Georgetown InnThe Lady Macdonald Country InnThe Lodges at CanmoreWindtower Lodge & Suites

CardstonCardston Flamingo MotelSouth Country Inn

CarolineCaroline Gateway MotelCaroline HotelCaroline Motel

CarstairsGolden West Motor Inn

CastorGrey Goose Motel

ChauvinChauvin Hotel


Notes to Financial StatementsDecember 31, 2013

Page 7

1 General information

The Alberta Hotel and Lodging Association (the Association) is registered as a not-for-profit organization under

the Societies’ Act of Alberta and is exempt from income taxes under Section 149 of the Income Tax Act. These

financial statements include the balance sheet, statement of surplus, statement of revenue and expenses and

cash flows for the Association’s General Administration Fund.

The Association is a voluntary association, established in 1919, that serves Alberta’s tourism and hospitality

industry. With more than 875 member properties across Alberta, the Association represents hotels, motels,

campgrounds, inns, resorts, bed & breakfasts and lodges.

The Association has some common directors with the Alberta Hotel Safety Association (AHSA). The AHSA is

registered as a not-for-profit organization under the Societies’ Act of Alberta and is exempt from income taxes

under Section 149 of the Income Tax Act. The AHSA was established in 1999, to assist hotels in the

implementation of health and safety programs. The purpose is to reduce injuries and claims by increasing

awareness and responsibility of health and safety within the industry.

The Association has a common director with the Canadian Hotel and Lodging Association Inc. (CHLA). The

CHLA is registered as a not-for-profit organization under the Canada Corporations’ Act – Part II and is exempt

from income taxes under Section 149 of the Income Tax Act. The CHLA was established in 2009, to fund,

facilitate, promote and carry out activities and programs for the advancement of the hospitality industry in

Canada.

2 Summary of significant accounting policies

a) Government assistance

Government assistance received toward current expenses is recognized in revenue in the current period.

Government assistance received relating to expenses of future accounting periods is deferred and

amortized to income as related expenses are incurred.

b) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, and other short-term

highly liquid investments with original maturities of three months or less.

c) Inventory

Inventory is valued at the lower of cost and current replacement cost. Cost is determined on a first in, first

out basis.

ClairmontRamada Inn & Travel CentreRedwood Inn & Suites

ClaresholmBluebird MotelClaresholm InnLazy J MotelThriftlodge Sportsman Inn

CochraneBow River InnDays Inn & Suites Ramada Super 8

Cold LakeBest Western InnDockside Inn

El Lobo MotelLakeland InnLakeshore InnRamada Inn & Suites

ColemanBCMInns Stop Inn Motel

ConklinKaren’s Katering Ltd.

ConsortSunrise Motel

CoronationBunkhouse RV ParkFrontier Hotel

CremonaCremona Hotel

CrossfieldCountry Inn

DalemeadNorth Bow Lodge

DappCommercial Hotel

DayslandDaysland HotelDayslander Motel 2010

Dead Man’s FlatsKiska Inn

Copperstone Resort HotelBig Horn Motel

DeboltDebolt Hotel

DelburneDelburne Hotel

DerwentDerwent Hotel

DevonDevon HotelKey West Inn

DidsburyDidsbury Motel




Page 8

d) Other assets

Other assets consist of lease inducements related to tenant improvements and direct costs associated with

the lease agreement. These costs are amortized on a straight-line basis over five years, which is the term of

the lease.

e) Property and equipment

The Association records its property and equipment at cost. Amortization is provided on a straight-line

basis over the estimated useful lives of the assets as follows:

Building 40 yearsOffice furniture and fixtures 10 yearsComputers 3 yearsPhotocopiers 5 yearsTelephone system and postage meter 5 yearsOther office equipment 4 years

f) Intangible assets

All of the Association’s intangible assets have limited useful lives and primarily include capitalized

computer software.

Development costs that are directly associated with identifiable and unique software controlled by the

Association are recorded as intangible assets if inflow of incremental economic benefits exceeding costs is

probable. Capitalized costs include staff costs of the software development team, costs incurred on

contracts with third party developers and an appropriate portion of relevant overheads. All other costs

associated with computer software, e.g. its maintenance, are expensed when incurred. Intangible assets are

amortized using the straight-line method over their useful lives.

Capitalized internal software development costs, software costs and website costs are amortized on a

straight-line basis over 3 years.

g) Impairment of long-lived assets

The Association will assess the carrying value of limited life intangible assets and property and equipment

for impairment when events or changes in circumstances indicate the carrying amount may not be

recoverable. An impairment loss is recorded in income when it is determined that the carrying amount of

the assets is not recoverable and therefore exceeds the fair value.

Drayton ValleyAspen Motor InnBCMInnsCoach Motel Drayton Valley HotelFoxwood Inn & SuitesHoliday Inn Express & SuitesLakeview Inns & Suites Matador MotelRamada Service Plus Inns & SuitesSuper 8 Drayton ValleyWest Country InnWestwind Motor Inn

DrumhellerBadlands MotelCanalta Jurassic

EconoLodge Inn & SuitesHoo-Doo MotelRamada Hotel & SuitesSuper 8 Travelodge

DuchessDuchess Hotel

EdmontonAladdin MotelAlberta Place Suite HotelAlgonquin Motor LodgeArgyll Plaza HotelAurora MotelBest Western Cedar Park InnBest Western PLUS City Centre InnBest Western PLUS South Edmonton Inn & Suites

Best Western PLUS Westwood Inn By The MallCampus Tower Suite HotelCanterra Suites HotelCentury Casino & HotelChateau Lacombe HotelChateau Louis Hotel & Conference CentreChateau MotelChateau Nova Hotel and SuitesChateau Nova YellowheadCoast Edmonton HouseCoast Plaza HotelColiseum InnComfort Inn & Suites DowntownComfort Inn West EdmontonCommercial Hotel / Blues on WhyteContinental Inn & SuitesCourtyard by MarriottCourtyard by Marriott Edmonton West

Days Inn & Suites West EdmontonDays Inn Downtown EdmontonDays Inn Edmonton SouthDelta Edmonton Centre Suite HotelDelta Edmonton South Hotel & Conference CentreDerrick MotelDover HotelDrake HotelEastglen InnEconoLodge Edmonton SouthEdmonton Hotel and Convention CentreEdmonton Marriott at River Cree ResortExecutive Royal Inn West EdmontonFairmont Hotel MacdonaldFantasyland Hotel at West Edmonton MallFour Points by Sheraton Edmonton SouthGateway MotelGrand Hotel



Page 9

h) Revenue recognition

The Association recognizes revenue using the deferral method, which results in the following:

Sales are recognized in the accounting period in which the services are rendered, by reference to stage

of completion of the specific transaction assessed on the basis of the actual service provided as a

proportion of the total services to be provided.

Rental revenue from leases is recognized on a straight-line basis over the lease term.

Revenue from guide and internet advertising is recognized when the information for publication is

available for distribution.

Net investment and other income are recognized in the period in which it was earned.

Advances received for services to be rendered by the Association are deferred and recognized in the

Statement of Revenue and Expenses in the period in which the service is provided.

i) Financial instruments

Trading investments which include investments in equity securities that are quoted in an active market

and debentures are recorded at fair value on the balance sheet with changes in fair value recorded in

income.

The Association records cash and cash equivalents, accounts receivable, accounts payable and accrued

liabilities and long-term debt at amortized cost. Amortization is recorded on a straight-line basis.

Financial assets are tested for impairment at the end of each reporting period when there are indications

that the assets may be impaired.

j) Use of estimates

The preparation of financial statements in accordance with Canadian accounting standards for not-for-

profit organizations requires management to make estimates and assumptions that affect reported

amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. Actual

results could differ from those estimates.

Hampton Inn & Suites by Hilton Edmonton WestHampton Inn by Hilton Edmonton SouthHilton Garden Inn West EdmontonHoliday Inn & Suites West EdmontonHoliday Inn Conference Centre Edmonton SouthHoliday Inn Express and Suites Edmonton NorthHoliday Inn Express Edmonton DowntownHoliday Inn Express Hotel & Suites Edmonton SouthHoliday Inn Express Hotel & Suites West EdmontonHotel SelkirkHoward Johnson Hotel West EdmontonJasper Avenue Inn & SuitesJasper Place HotelJockey Motel

Lodge Motor InnMatrix HotelMayfield Inn & SuitesMetterra Hotel on WhyteQuality Inn West HarvestRadisson Hotel Edmonton SouthRamada Edmonton SouthRamada Hotel & Conference CentreRest E-Z InnRoadrunner MotelRosslyn Inn & SuitesRoyal Western MotelSandman Hotel West EdmontonSandman Signature Hotel & Suites Edmonton SouthSands Hotel & Conference CentreSawridge Inn Edmonton SouthSouthbend MotelStrathcona Hotel

Super 8 Edmonton SouthSuper 8 Motel Edmonton WestThe Oliver TowerThe Sutton Place Hotel EdmontonThe Westin Travelodge Edmonton EastTravelodge Edmonton SouthTravelodge Edmonton WestUnion Bank InnVarscona Hotel on WhyteWest Edmonton Mall InnWest Edmonton Motor InnWhitemud Inn Edmonton SouthWingate By WyndhamYellowhead Motor Inn

EdsonBest Western High Road InnBlack Gold Inn

Comfort Inn & SuitesEconoLodgeEdson HotelGuest House Inn & SuitesHoliday Inn Express Hotel & Suites Howard Johnson North Ridge InnLakeview Inns & Suites Lakeview Inns & Suites Nova InnPark “A” MotelRamada InnSundowner InnSuper 8 The Cedars MotelTotem Motel

Elk PointElk Point Motel and RV Park




Page 10

3 Cash and cash equivalents

2013$

2012$

Cash on hand 300 300Bank balances payable on demand (weighted average annual

interest rate of 0.75%; 2012 – 0. 75%) 153,018 411,191Cash balances with investment broker 29,638 20,915

182,956 432,406

4 Trading investments

2013$

2012$

Canadian Federal Government bonds 340,478 272,023Canadian Provincial Government bonds - 24,450Corporate bonds – Canadian issuers 301,623 363,816Corporate stock – Canadian companies 187,687 156,725Corporate stock – US companies 59,136 35,898Corporate stock – Foreign companies 40,123 35,500

929,047 888,412

None of the trading instruments are pledged as collateral.

5 Accounts receivable and prepaid expenses

2013$

2012$

Utility Partnership receivables - 108,776Trade receivables and goods and services tax 431,391 445,349Allowance for doubtful accounts (889) (889)Prepaid expenses 22,408 13,188

452,910 566,424

ElkwaterElkwater Lake Lodge & Resort

EntwistlePembina River Inn Ltd.

EvansburgRustic Ridge Ranch and Lodge

FairviewDunvegan Inn & SuitesHillview InnNew Grand Hotel

FalherFalher HotelThe Honeycomb Inn

ForestburgBattle River Inn & SuitesForestburgForestburg Motor InnMany Horses Saloon/Forestburg Hotel

Fort AssiniboineLinda’s Motor Inn

Fort MacleodCentury 2 MotelD.J. MotelFort MotelRed Coat Inn MotelSunset Motel

Fort Mc MurrayNoralta Lodge LynzAce Inn

BCMInns Fort McMurrayBCMInns Rusty’sChateau Nova Clearwater Residence Hotel TimberleaClearwater Suite HotelFranklin Suite HotelMcMurray InnMerit Hotel & SuitesNomad InnNoralta Lodge BighornNoralta Lodge FirebagNoralta Lodge Fort McMurrayNoralta Lodge Ft. McMurray FM2Noralta Lodge WolverinePlatinum HotelsPodollan Inns & Rez-idencePodollan Inns Quality Hotel & Conference Centre Radisson Hotel & Suites

Ridgewood InnSawridge Inn & Conference Centre Stonebridge Super 8 The Bridgeport InnVantage Inn & Suites

Fort SaskatchewanHampton Inn by Hilton Lakeview Inns & Suites Park Avenue InnStars Inn & SuitesSuper 8 The Kanata

Fort VermilionCountry Gardens Bed and BreakfastSheridan Lawrence Inn



Page 11

6 Other assets

2013 2012

Cost$

Accumulatedamortization

$Net

$Net

$

Tenant improvements 50,000 31,250 18,750 28,125Leasing costs 15,158 9,474 5,684 8,526

65,158 40,724 24,434 36,651

In 2013, amortization of $12,217 (2012 – $12,216) was expensed.

7 Property and equipment

2013 2012

Cost$


$Net

$Net

$

Land 927,021 - 927,021 927,021Building 3,126,794 319,182 2,807,612 2,885,782Office furniture and

fixtures 207,217 98,560 108,657 129,379Computers 122,606 113,822 8,784 10,531Photocopiers 40,045 29,976 10,069 18,078Telephone system and

postage meter 27,134 27,134 - 5,427Other office equipment 25,955 25,452 503 -

4,476,772 614,126 3,862,646 3,976,218


Fox CreekAlaskan MotelComfort Inn & SuitesDevonian Hotel & SuitesFox Creek InnFoxwood Inn & SuitesSuper 8Timber Ridge Inn & Suites

GibbonsGibbons Hotel

Grande CacheAcorn MotelBest Western Grande Mountain Get-Aways & HotelBig Horn Motor InnGrande Cache HotelGrande Mountain Lodge

Misty Mountain Inn & Suites

Grande PrairieBest Western Hotel & SuitesCanadian Motor InnCSI Inns BrooksideDays Inn Holiday Inn & Suites Convention CentreHoliday Inn Express Igloo InnMotel 6 Paradise Inn & Conference Centre Grande Prairie AirportPodollan Inn & SpaPodollan Rez-idencePomeroy Hotel & Conference CentrePomeroy Inn & SuitesSandman Hotel Service Plus Inns & Suites

Silver Crest LodgeStanford Hotels & Resort Stonebridge Hotel Super 8 The Lodge Motor InnWestern Budget Motel (2)

GranumLongbranch Inn

GrimshawDee-Jay MotelGrimshaw HotelMile Zero Motor Inn

HannaCanada Grey Motor InnSuper 8 West View Motel & Restaurant

HardistyR&R Inn and Suites

Harvie HeightsBanff Boundary Lodge

High LevelBest Western PLUS MirageDays Inn EconoLodge Inn & SuitesExecutive House Suites Hotel & Conference CentreFlamingo InnFour Winds HotelOur Place MotelQuality Inn & SuitesSuper 8




Page 12

8 Intangible assets

2013 2012

Cost$


$Net

$Net

$

Website 464,002 283,609 180,393 34,963Software development

costs 217,719 217,332 387 4,704Software costs 41,839 39,179 2,660 6,012

723,560 540,120 183,440 45,679


9 CHLA loan receivable

Included in the loan to the CHLA is $22,500 that was provided as a funding advance. As well, the Association

has entered into an arrangement with CHLA to provide funds for their operating expenses. Total amount

funded in 2011 was $158,132. The receivable is unsecured, non-interest bearing and will be repaid once the

CHLA is fully operational.

10 Accounts payable and accrued liabilities

2013$

2012$

Trade payables and accrued liabilities 175,906 406,205

Government remittances consist of amounts (such as goods and receivable taxes and payroll withholding taxes)

required to be paid to government authorities and are recognized when the amounts become due. In respect of

government remittances, $14,131 (2012 – $14,755) is included within accounts payable and accrued liabilities.

High PrairieDays Inn Family Inn MotelKey InnNorthern Lites Motor InnPeavine Inn & SuitesRaven Motor Inn

High RiverHeritage Inn Hotel & Convention CentreHigh River Motor HotelRamada Super 8

Hines CreekHines Creek Hotel

HintonAthabasca Valley Inn & SuitesBCMInns and RV ParkBest Western White Wolf InnBig Horn MotelCrestwood HotelDays Inn EconoLodge Inn & Suites Holiday Inn Express Hotel & SuitesHoliday Inn Lakeview Inn & Suites Nova Inn Nova Lodge Old Entrance Bed & Breakfast CabinsOverlander Mountain LodgePines MotelSuper 8 Timberland HotelTwin Pine Inn & Suites

HytheHythe Motor Inn

InnisfailBest Western Bluebird MotelInnisfail Hotel Super 8R&R Inn and Suites

InuvikNova Inn

IrmaIrma Hotel

JasperAlpine VillageAmethyst Lodge

Astoria HotelAthabasca HotelBear Hill LodgeBecker’s ChaletsBest Western Jasper Inn & SuitesChateau JasperFairmont Jasper Park LodgeFilia InnJasper House BungalowsLobstick LodgeMaligne LodgeMarmot LodgeMiette Hot Springs BungalowsMount Robson InnPark Place InnPatricia Lake BungalowsPine BungalowsPocahontas Cabins



Page 13

11 Utility Partnership deposits

2013$

2012$

Utility Partnership deposits 53,207 53,207Interest accrued on Utility Partnership deposits 6,041 6,041

59,248 59,248

The Utility Partnership deposits were interest-bearing starting from the second year, provided the member’s

account has been in good standing, are demand in nature and repayable four months after the Association’s

member leaves the Utility Partnership program. The interest rates payable on these deposits are equal to the

rates earned by the Association on its cash deposit bank accounts. No interest was accrued in 2013 (2012 – $nil)

as the Utility Partnership program with EPCOR concluded as at December 31, 2010 and member deposits were

returned in 2011.

12 Deferred revenue

2013$

2012$

Celebration Homes lease deposit 6,532 6,532Tradeshow 2014 21,750 25,125Membership dues 2014 833 -Guide advertising 2014 12,249 -Human resource certifications - 9,300Energy efficiency levy 330,910 330,910

Total unearned revenues 372,274 371,867

Lease deposit related to first and last month’s rent held as security deposit. Deferred revenue from energy

efficiency levy relates to revenue collected during the 2006 – 2010 Utility Partnership program with EPCOR

and is retained for specific use in providing environmental stewardship benefits to members.

Pyramid Lake ResortSawridge Inn & Conference CentreSunwapta Falls Rocky Mountain LodgeTekarra LodgeTonquin InnWhistler’s Inn

KananaskisDelta Lodge

Keg RiverMillenium Cabins

KillamKillam Krossing HotelWagon Wheel Motel

La CreteLa Crete Motel

Lac La BicheAlmac Motor HotelBCMInns Canalta La Biche InnParkland Motel IParkland Motel IIRamada

LacombeCountry Club InnGreenway InnLacombe Motor Inn

LacoreyLakeland Country Inn

Lake LouiseBaker Creek Mountain Resort

Fairmont Chateau Lake LouiseLake Louise InnMountaineer LodgeParadise Lodge and BungalowsPost HotelSimpson’s Num-Ti-Jah LodgeThe Crossing

LamontArchie’s MotelHeartland HotelLamont Hotel

LeducAirport MotelBEST WESTERN PLUS Denham Inn & SuitesDays Inn Edmonton AirportExecutive Express Hotel

Executive Royal Inn Hotel & Conference CentreHilton Garden InnRamada Edmonton International AirportSuper 8 Edmonton International AirportTravelodge Edmonton International AirportWaldorf Hotel

LeslievilleLeslieville Hotel

LethbridgeAlec Arms HotelCanadas Best Value Inn Chinook MotelComfort InnDays Inn EconoLodge and Suites




Page 14

13 Long-term debt

2013$

2012$

Non-revolving term loan, bearing interest at prime plus 1.25%,repayable in monthly principal payments of $11,112 plusinterest. Final balance of principal and accrued interest thenoutstanding due December 31, 2014 1,236,202 1,369,546

Less: Current portion 1,236,202 133,344

- 1,236,202

Principal repayments required in the next year are $1,236,202.

The non-revolving term loan is collateralized by a general security agreement providing a charge over all

present and future property of the Association; replacement cost fire insurance coverage; $2,000,000 collateral

mortgage with first charge over land and building; a real property report; and an assignment of all leases and

rents.

At December 31, 2013, the Association accrued $1,307 (2012 – $1,447) in interest on long-term debt. As at

December 31, 2013, the bank’s prime rate was 3.00% (2012 – 3.00%).

The Association intends to start negotiations with the bank to renew the repayment terms of the loan.

14 Contingency

Guarantees

Guarantees are irrevocable assurances that the Association will make payments in the event that another party

cannot meet its obligations. As at December 31, 2013, guarantee amounting to $nil (2012 – $65,000) was

outstanding on behalf of its members.

Hampton Inn & Suites by Hilton Holiday Inn Express Hotel & SuitesHoliday Inn Howard Johnson Express InnLethbridge HotelLethbridge Lodge Hotel & Conference CentrePremier Inn & SuitesQuality Inn & Suites Ramada Sandman HotelSuper 8 The Coast Hotel & Conference CentreTravelodge

LloydminsterDays Hotel & Suites Econo LodgeExecutive Royal Hotel

Holiday Inn & SuitesIvanhoe MotelRAMADA INN Royal HotelTropical Inn Hotel and Conference Centre

LodgepoleLodgepole Pine Inn

LongviewBlue Sky Motel

LougheedMotel Highway

ManningAurora HotelGrimm’s MotelHillcrest Motel

Manning Motor Inn

MarwayneMarwayne Hotel

MayerthorpeHaven Inn

McLennanLakeside Motor InnMclennan Hotel

Medicine HatBest Western PLUS Sun CountryComfort Inn & SuitesCorona HotelDays Inn Executive on the RidgeHoliday Inn Express & Suites

Imperial InnMotel 6 Pals MotelRamada LimitedSuper 8 Travelodge Hotel

Milk RiverSandstone Motel

MilletPipestone Motel Millet Campground

MorleyStoney Nakoda Resort & Casino

NampaBig Country Inn



Page 15

15 Other income (expenses)

2013$

2012$

Trustee fees 95,000 42,500Rent revenue 156,795 155,031Development subcontractor income - 3,000Interest income 27,169 32,854Gain (loss) from trading investments 19,622 (1,230)Dividends 6,786 6,652Loss on disposal of equipment - (182)

305,372 238,625

16 Trust accounts

As provided for under the Trust and Governance Agreements the Association has with various destination

marketing funds, the Association receives and disburses funds in trust. These trust funds are accounted for

separately and, accordingly, are not reflected in these financial statements. As at December 31, 2013, the

Partnership held trust funds on deposit in the amount of $11,296,461 (2012 – $4,178,432).

17 Net change in non-cash working capital items

2013$

2012$

Decrease in accounts receivable and prepaid expenses 113,514 814,156Decrease in inventory 4,141 1,447Decrease in accounts payable and accrued liabilities (230,299) (531,583)Decrease in Utility Partnership deposits - (443,451)Increase in deferred revenue 407 4,274

(112,237) (155,157)

NantonAuditorium HotelRanchland Inn

NiskuAirways Country InnFour Points by Sheraton Edmonton International AirportHoliday Inn Express Edmonton International AirportNisku Inn & Conference Centre Edmonton AirportNisku Place Motel at AirportQuality Inn Airport

NordeggAurum LodgeNordegg Lodge

North KananaskisNakoda Lakeside Lodge

OkotoksLakeview Inns & Suites Country Inn

OldsBest Western Circle Five MotelOlds HotelPomeroy Inn & Suites at Olds CollegeRamada Siesta MotelThe Sportsman’s Inn Motel

OnowayOnoway Hotel

OyenAntelope InnCanalta Oyen

PatriciaPatricia Hotel

Peace RiverBCMInns McNamara HotelNova Inn Peace Valley Inns Hotel & Conference CenterSawridge Inn & Conference CentreSuper 8 Western Budget Motel

Pincher CreekFoothills Motel

Heritage Inn Hotel & Convention CentreKing Edward HotelParkway Motel & European LogesRamada Stardust MotelSuper 8

PlamondonChez Nous MotelPelican Hotel

PonokaCanalta Leland HotelPonoka Stampeder Inn

PriddisAzuridge




Page 16

18 Related party transactions

Office rent of $66,675 (2012 – $66,675) was received during the year from the Alberta Hotel Safety Association.

These transactions are in the normal course of operations and have been measured at the exchange amount,

which is the amount of consideration agreed upon by the parties.

19 Financial instruments

a) Credit risk

The Association’s exposure to credit risk is indicated by the carrying value of its trading investments,

accounts receivable, receivable from the Alberta Hotel Safety Association and receivable from the

Canadian Hotel and Lodging Association. The Association has policies in place to ensure that sales of

services are made to members with an appropriate credit history. The Association maintains a provision

for potential credit losses and any such losses to date have been within management’s expectations.

b) Interest rate risk

The Association is exposed to interest rate risk arising from fluctuations in interest rates on its cash and

trading investments, as described in notes 3 and 4 and long-term debt as described in note 13.

c) Fair values

The carrying value of cash and cash equivalents, accounts receivable, receivable from the Alberta Hotel

Safety Association, receivable from the Canadian Hotel and Lodging Association, accounts payable and

accrued liabilities, Utility Partnership deposits and payable to the Alberta Hotel Safety Association

approximates their fair values due to the relatively short-term maturities of these instruments. The fair

value of long-term debt is not materially different from its carrying amount based on the floating rate

available to the Association.

ProvostCadogan Red Lion HotelCanalta ProvostDeerhead InnGreenhead MotelProvost Motor InnR&R Inn & Suites

Rainbow LakeNoralta Motor InnRainbow Centre HotelRainbow Inn

Red DeerAladdin Motor InnBest Western PLUS Inn & SuitesBlack Knight InnComfort Inn & Suites Days Inn

Holiday Inn & Suites Red Deer SouthHoliday Inn Express iHotel 67 StreetMotel 6 Quality Inn North HillRamada Inn & Suites Lodge Hotel & Conference CentreTravellers InnSandman Hotel Sheraton HotelSuper 8 City CentreSuper 8 TownePlace Suites by MarriottTravelodge

Red Deer CountyEconoLodge Inn and Suites Howard Johnson Inn

Red EarthNoralta Lodge Red Earth CreekRed Earth CreekRed Earth Inn

RedcliffRedcliff Hylton

RedwaterRed Rest Motel

RimbeyBest Western Rimstone Ridge HotelGrand HotelParkland MotelMotor InnSuper 8

Rocky Mountain HouseAlpine MotelBest Western House Inn & SuitesCanalta Rocky Mountain HouseChinook InnGrandview Stage ResortRocky Inn ExpressTamarack Motor InnTay River Motel & RVThe House MotelVoyageur MotelWalking Eagle Inn & Lodge

Round HillRound Hill Hotel

RycroftCrossroads MotelRycroft Hotel


Schedule of Revenue and ExpensesFor the year ended December 31, 2013

Page 17

Schedule 1

2013$

2012$

Tourism Marketing

Revenue1. Accommodation Directory and Campground Directory 216,273 784,1442. Star Quality Rating Program – Green Key and Other 217,788 271,927

434,061 1,056,071

Expenses1. Accommodation Directory and Campground Directory 164,302 368,6052. Star Quality Rating Program – Green Key and Other 264,199 280,539

428,501 649,144


2013$

2012$

Member Value Programs

Revenue1. Electrical Energy and Natural Gas Program 445,334 401,6942. Self Insurance Program 202,516 187,6493. Other Revenues 42,149 40,028

689,999 629,371

Expenses1. Electrical Energy and Natural Gas Program 67,199 107,5372. Self Insurance Program 5,779 1,8123. Other Expenses 71,229 62,734

144,207 172,083


St. Michaels Inn

Seebe DistrictRafter Six Ranch Resort

SexsmithSexsmith Hotel

Sherwood ParkBEST WESTERN PLUS Coast Edmonton East HotelFranklin’s InnHoliday Inn Express & SuitesMainStay Suites Ramada Super 8

Slave LakeBig Lake Inn

Highway Motor InnHoliday Inn Express & SuitesLakeside Motor InnLakeview Inns & Suites Slave LakeNorthwest InnRiverside InnSlave Lake Inn & Conference CentreSuper 8

Smoky LakeSmoky Lake InnSuper 8

Spirit RiverSpirit River Hotel

Spruce GroveGrove Motor InnTravelodge Inn & Suites

Spruce ViewSpruce View Motel

St AlbertBEST WESTERN PLUS Horizon MotelSleep Inn MotelSt. Albert Inn & Suites

St PaulThe King’s Motel & RestaurantWoodland Motor Inn

Galaxy Motel & RestaurantSt. Paul LodgeSuper 8

StandardStandard Hotel/Neighbourhood Grill & Bar

StettlerCanalta StettlerHeartland LodgePlains Motor InnRamada Super 8

Stony PlainBest Western Sunrise Inn & SuitesMotel 6Ramada Inn & SuitesTravelodge Hotel

StrathmoreBest Western Days Inn & Suites Howard Johnson HotelLeroy’s Motor InnStrathmore Travelodge


Alberta Hotel and Lodging AssociationSchedule of Revenue and Expenses …continuedFor the year ended December 31, 2013

Page 18

Schedule 1

2013$

2012$

Human Resource Development

Revenue1. Consulting Services and Seminars 34,382 29,4042. Certifications and Training Products 117,023 202,3493. Grants & Funding and Other Revenues - 24,6504. Health Plan 80,841 62,446

232,246 318,849

Expenses1. Consulting Services and Seminars 9,303 19,4522. Certifications and Training Products 142,186 138,8053. Employer of Choice 46,744 58,8344. Grants & Funding 27,961 22,5735. Health Plan 1,159 1,4976. HR Indirect Expenditures 33,648 39,726

261,001 280,887

Excess of expenses over revenue (28,755) 37,962

2013$

2012$

Membership Communications

Revenue1. Member Events: Annual Convention & Trade Show and Regional

Meetings 355,593 342,5912. Membership Publications 5,205 1,4753. Membership Services 717,877 646,204

1,078,675 990,270

Expenses1. Member Events – Annual Convention & Trade Show and Regional

Meetings 354,145 343,3532. Membership Publications 40,240 41,5963. Membership Services 147,155 162,525

541,540 547,474


Super 8

SundreBest Western PLUS Mountain View Inn & SuitesChinook Country InnParkwood Motor InnSun Plaza MotelSundre Hotel

Swan HillsDerrick Motor InnHillcrest MotelWelcome Inn

Sylvan LakeComfort Inn & Suites

TaberHeritage Inn Hotel & Convention CentrePalace HotelSuper 8 Taber MotelTaber Motor Inn

ThorhildCorona Hotel

ThorsbyThorsby Hotel & Bar

Three HillsBest Western Diamond InnLamplighter InnRest-Easy MotelSuper 8 Three Hills Inn & Bar

TilleyTilley Hotel

TorringtonTorrington Hotel

TrochuD & D Yale Hotel

Turner ValleyDiamond Willow Artisan RetreatTurner Valley Lodge

Two HillsJunction Inn

ValleyviewHi Valley Motor InnHorizon Inn & Steakhouse

Western Valley Inn

VauxhallCorona Hotel

VegrevilleWest-View Motel

VermilionBrunswick Motor InnSuper 8

VikingCaledonia Motor Inn

WabamunShoreside Inn & SuitesWabamun Hotel

Alberta Hotel and Lodging AssociationSchedule of Revenue and Expenses …continuedFor the year ended December 31, 2013

Page 19

Schedule 1

2013$

2012$

Government and Industry Relations

Revenue 24,665 -

Expenses1. Gaming & Liquor 13,454 9,5492. Hotel Association of Canada (HAC) 40,728 35,9023. Provincial Government Lobbying 4,021 8,8644. Government Relations – General 130,633 132,738

188,836 187,053

(164,171) (187,053)

2013$

2012$

Scholarship

Expenses1. Scholarships Awards 49,983 34,6252. General 2,274 6,878

52,257 41,503

2013$

2012$

General expenses

Total Board of Directors Expenses 98,376 120,049Total Computer/IT and Telecommunications Expenses 69,615 73,309Total Facility and Office Expenses 155,720 138,971Total Overhead Office Payroll 481,079 484,536Total Marketing and Professional Fees 89,661 71,566Total Other Expenses 237,976 248,067

1,132,427 1,136,498

WabascaLuxury First HotelNoralta Lodge

WainwrightBest Western Inn & SuitesBio-Vista MotelDay’s MotelPlains West Motor InnR&R Inn and SuitesRamada Springs Motor InnThe Park Hotel

Wandering RiverWandering River Motel

WarnerWarner Hotel

Waterton ParkAspen Village InnBayshore Inn Resort & SpaBear Mountain MotelCrandell Mountain LodgePrince of Wales HotelThe Kilmorey LodgeWaterton Glacier SuitesWaterton Lakes Resort

WayneRosedeer Hotel / Last Chance Saloon

WesteroseVillage Creek Country Inn

WestlockBest Western Ramada

Westlock HotelWestlock Inn & Conference Center

WetaskiwinAlberta Inn & SuitesBest Western Wayside InnPrairie Breeze Inn RV & CampingSuper 8

WhitecourtAlaska Highway Motel & RV ParkDays Inn & SuitesGreen Gables InnLakeview Inns & Suites Quality Inn Renford InnRoyal Oak InnSuper 8The Kanata

The Ritz Cafe & Motor InnWhitecourt Inn & Suites

WildwoodWildwood Hotel

WorsleyGateway Inn

YoungstownWindmill MotelYoungstown Hotel

Zama CityNoralta Inn West

2707 Ellwood Drive Edmonton, AB T6X 0P7

ahla annual report 2013

Documents

vice chair

board chair

past chair

albertas tourism

hospitality industry

strategic objectives

relevant programs

pillars of tourism marketing