Presentation TitleSubtitle

Date and Location

Middle East Hotel Performance Trends

Philip WoollerArea Director – Middle East & Africa

Monday 8th October 2012

Europe €YE 09 YE 10 YE11 YTD12

-16.7% +9.7% +5.5% +5.3%

Asia Pacific $YE 09 YE 10 YE 11 YTD12

-20.0% +17.5% +8.8% +3.3%

North America $YE 09 YE 10 YE11 YTD12

-17.0% +6.0% +8.0%+6.8%

RevPAR % change

Middle East & Africa $

YE 09 YE 10 YE11 YTD12

Middle East -19.4% -6.3% +2.9% +8.9%

N. Africa -11.9% +11.7% -36.3% +10.5%

S. Africa -13.4%+12.7% -0.6% - 3.6%

RevPAR growth slowing down...

0% 1% 2% 3% 4% 5% 6% 7%0%

5%

10%

15%

20%

25%

YTD Aug’12, YOY % change, supply, demand, RevPAR $ (Europe in (€)

Europe (€)

Middle East

Asia Pacific

SUPPLY

DEMAND

North AmericaSouthern Africa

Northern Africa

Continued growth

YTD August 2012, YOY % chg, Occ and ADR (local currency)

Bahrain Egypt Jordan Kuwait Lebanon Oman Qatar KSA UAE

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

6.50%

22.20%19.00%

-4.20%

10.80%

16.54%

-11.00%

6.60%3.20%

0.30%

-6.20%

3.70%1.00%

-2.30%

-6.39%

-2.20%

5.20% 5.50%

Occ ADR

MEA – Key Countries

MEA Key Markets 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

$ 0

$ 50

$ 100

$ 150

$ 200

$ 250

$ 300

42% 44%

68%

56% 57% 53%

81%

56%

76%

58%

Occupancy ADR USDJan-Aug 2012

Pipeline

AlgeriaBahrain

EgyptJordanKuwait

LebanonMorocco

OmanQatar

KSASyria

TunisiaUAE

0 20000 40000 60000 80000 100000 120000 140000 160000 180000

ExistingPipeline

# daily rooms in thousands, Aug 2012 pipeline

MEA – Revenue RatioRevenue ratios 2011, MEA

ME incl. Egypt

Europe London KSA UAE Abu Dhabi

Amman Beirut Doha Dubai0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

55%63%

72%64%

54% 50%57% 59%

42%

56%

36%31%

24%29%

38% 43%36% 30%

46%

37%

9% 6% 4% 6% 8% 8% 7% 11% 13% 8%

Room % F&B % Other Operating Department %

MEA – Revenue RatioRevenue ratios 2011, MEA

Kuwait Makkah Manama Medina Muscat Riyadh SSH Taba Jeddah0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

51%

78%

52%61%

53% 57% 53% 49%61%

39%

18%

29%

28% 39% 35%37%

37%

34%

10%3%

20%11% 8% 8% 11% 14%

6%

Room % F&B % Other Operating Department %

MEA – Revenue ShareRooms Revenue %, F&B revenue % of total revenue, GOP%, MEA 2011

ME in

cl. E...

Europe

London

KSA UAE

Abu Dhabi

AmmanBeiru

tCair

oDoha

Dubai0%

10%

20%

30%

40%

50%

60%

70%

80%

Room % F&B % GOP %

MEA – Revenue Share

Kuwait Makkah Manama Medina Muscat Riyadh SSH Taba Jeddah0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Room % F&B % GOP %

Rooms Revenue %, F&B revenue % of total revenue, GOP%, MEA 2011

Muscat All Muscat Midscale

Muscat Upper

Midscale

Muscat Upscale

Muscat Luxury

Salalah-10

-5

0

5

10

15

20

Occupancy ADR RevPAR

Muscat by Class

Year to date 2012 v Year to date Jan 2011 , %chg, Occ and ADR (Omani Riyals)

Muscat Midscale

Muscat Upper Midscale

Muscat Upscale

Muscat Luxury Salalah0

20

40

60

80

100

120

Occupancy ADR RevPAR

Muscat by Class

Year to date 2012 Occupancy Rate and RevPAR (Omani Riyals)

Jan 10

Mar

10

May

10Ju

l 10

Sep 10

Nov 10

Jan 11

Mar

11

May

11Ju

l 11

Sep 11

Nov 11

Jan 12

Mar

12

May

12Ju

l 12

20%

30%

40%

50%

60%

70%

OMR 50

OMR 60

OMR 70

OMR 80

OMR 90

OMR 100

OMR 110

OMR 120

Occ ADR

Seasonality of OmanJan 10 – Aug 12, ADR OMR, Occ

Total Oman, rolling-12 ADR OMR, Jan 08 – Aug 12

Jan 08

Apr 08Ju

l 08Oct

08Jan

09

Apr 09Ju

l 09Oct

09Jan

10

Apr 10Ju

l 10Oct

10Jan

11

Apr 11Ju

l 11Oct

11Jan

12

Apr 12Ju

l 12

45%

50%

55%

60%

65%

70%

OMR 40

OMR 50

OMR 60

OMR 70

OMR 80

OMR 90

OMR 100

Occ ADR

Oman long-term view

Day of week analysis OmanLast three years day of week Occ, ADR OMR

Sun Mon Tue Wed Thu Fri Sat42%

44%

46%

48%

50%

52%

54%

56%

58%

OMR 79

OMR 80

OMR 81

OMR 82

OMR 83

OMR 84

OMR 85

OMR 86

OMR 87Occ ADR OMR

Oman – Regional Oman – Muscat

2% 3% 4% 5% 6% 7%9%

11%

13%

15%

17%

19%

21%

23%

25%

YTD Aug 12, YOY % change, supply, demand, RevPAR OMR

Regional Oman

SUPPLY

DEMAND Oman

Muscat

Middle East

P&L 2011 Oman

Total Revenue

- Departmental Costs

-Undistributed operating Expenses

= GOP

P&L Revenue and Cost in USD, per available room, per occupied room

Per Available Room

Per Occupied Room

Total Revenue 96,438 410.50

- Total Rooms Costs 7,618 32.40

- Total F&B Costs 23,355 99.40

- Total Other Opertion Dept Costs 2,098 8.90

- Total Undistributed Operating expenses 20,889 88.90

= GOP 42,478 180.80

Supply and Pipeline

Luxury Upper Upscale

Upscale Upper Midscale

Midscale Economy Inde-pendent

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Existing In Construction Final Planning Planning

Current Room Supply and Pipeline, # rooms

STR Global, Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited.

This presentation is based on information compiled by STR Global Ltd. No strategic or marketing recommendations or advice are intended or implied.

Contact details

Philip Wooller+ 971 (0)557 701202

pwooller@strglobal.com

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