“Should the hospitality market continue to be healthy, and the national economy healthy along with it, we think hospitality sales will improve as 2017 wears on.”

Summary StatisticsLas Vegas Market Q2 2016 Q1 2017 Q2 2017

Room Inventory 141,299 141,516 141,685

Room Occupancy 90.4% 88.4% 90.7%

Average Daily Rate $124.87 $139.30 $125.49

Revenue Per Available Room $112.85 $123.42 $113.82

Market Indicators Relative to prior period Q2 2017 Q3 2017*

Room Inventory

Room Occupancy

Average Daily Rate

Revenue Per Available Room

*Projected

+3.8%

CONVENTIONAttendance

AIRPassengers

-14.4

RevPAR

-2.9%

Apr2017

Revenue Per Available Room (RevPar)

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017

RevPAR

The Hangover

Research & Forecast Report

LAS VEGAS | HOTELQ2 2017

Economic Indicators > Visitor volume remains strong, but might not best last year’s record

> Room inventory growth remains light, with increased development not expected until 2019

> Hospitality sales were light in the first half of 2017

Hospitality real estate sales continued to be light in the first half of 2017 compared to the first half of 2016. You might call this the hospitality hangover, as investors spent $1.6 billion on hospitality product in 2016 and now appear to be in wait-and-see mode in 2017. Visitor volume in the first four months of 2017 was 14.1 million visitors, just a tad shy of the 14.3 million visitors to Las Vegas in the first four months of 2016. Gaming revenue, on the other hand, was stronger in 2017 than 2016, with $3.37 million in the first four months of 2017 compared to $3.22 million in the first four months of 2016. The average daily room rate (ADR) and revenue per available room (RevPAR) were also up year-over-year. Room inventory did not increase in any meaningful way so far in 2017, and it should remain stable for the remainder of the year.

Sales vs.Price Per Unit

Market HealthData Point 2013 2014 2015 2016 2017 YTD*

Visitor Volume (millions) 39.9 41.6 42.3 43.2 14.1

Room Occupancy 84.3% 86.8% 87.7% 89.1% 85.7%

ADR (Monthly Average) $110.64 $116.48 $119.94 $125.90 $135.85

RevPAR (Monthly Average) $93.27 $101.05 $105.21 $112.28 $121.02

Convention Attendance (millions) 5.11 5.17 5.71 6.31 2.61

Passengers McCarran Int’l (millions) 41.8 42.9 45.3 47.4 15.3

Gaming Revenue (Clark County; billions) $10.0 $9.6 $9.6 $9.7 $3.4

Gaming Revenue (“Strip”; billions) $6.5 $6.4 $7.5 $6.4 $2.2

Data from Las Vegas Convention & Visitors Authority

* Data up to April 2017

SalesVolume

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017

Sales Volume

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017

Sales vs. Price Per Unit

Sales (Units) Average Price Per Unit

2 Las Vegas Research & Forecast Report | Q2 2017 | Hospitality | Colliers International

Gaming revenue in the first four months of 2017 posted 4.7 percent year-over-year growth for Clark County as a whole, and 3.5 percent growth on the Las Vegas “Strip” in particular. The Downtown submarket had very strong 19.0 percent gaming revenue growth year-over-year and the Boulder Strip, which mostly plays host to local casino patrons, posted 5.2 percent gaming revenue growth. If these rates of growth continue through 2017, we should see a solid improvement in gaming revenue, the one hospitality factor that has lagged behind the others since the end of the recession.

Room inventory expanded by 169 units in the second quarter of 2017, bringing year-to-date completions to a mild 220 units. Resorts World Las Vegas remained under construction, with completion of the first phase planned for 2019, along with Steve Wynn’s 1,000-room Paradise Park project that will be constructed on the former site of the Desert Inn Golf Course.

Southern Nevada experienced a non-gaming construction boom in 2016, with such additions as Topgolf International’s four-story golf entertainment complex at the MGM Grand, a 415,085 square foot IKEA store along the I-215 Beltway, new retail fronting the Treasure Island, the Rock N Rio festival, and the 20,000 seat MGM Resorts T-Mobile International Arena behind New York-New York and Monte Carlo which will host Las Vegas’ NHL hockey franchise the Golden Knights. The Oakland Raiders are officially becoming the Las Vegas Raiders in 2020, which will necessitate the construction of a new stadium. The site, adjacent to the I-15, has been selected, though construction on the site has not yet started. 2017 should see a $75 million renovation of Caesars Palace’s original Roman Tower, a $47 million renovation of the Thomas & Mack Center and a $130 million expansion of their convention space. The Las Vegas Convention Center is also planning a major expansion to keep Southern Nevada at the forefront of convention destinations in the United States. In all, we expect approximately $1.2 billion to be spent on hospitality development in 2017 and 2018 in Southern Nevada, and an additional $11.3 billion of development in 2019 and beyond.

3

Hospitality Sales*

Year Volume Units Sold Price Per Unit

2017 YTD $69.5 MM 2,143 $32,000

2016 $1,182 MM 4,415 $268,000

2015 $466 MM 5,445 $86,000

2014 $2,001 MM 7,614 $263,000

2013 $61 MM 1,335 $46,000

2012 $160 MM 3,120 $51,000

2011 $3,005 MM 7,507 $400,000

2010 $858 MM 8,883 $97,000

* Only includes properties with 100 or more units, arm’s-length sales

3 Las Vegas Research & Forecast Report | Q2 2017 | Hospitality | Colliers International

Hospitality sales were light in the first half of 2017 in terms of sales volume and price per unit, following a very robust year for hospitality sales in 2016. A total of 2,143 rooms sold in the first half of 2017, with total sales volume of $69.5 million and an average sales price of $32,424 per room. In June, the forthcoming sale of the Stratosphere and both Arizona Charlie’s locations to Golden Entertainment was announced. The deal was reported to involve $781 million in cash and 4 million shares of Golden Entertainment stock to Whitehall Street Real Estate Partners 2007. Golden Entertainment already owns and operates casinos in Pahrump, NV.

While sales volume in 2017 may not equal that recorded in 2016, the overall sales picture remained strong at mid-year. Visitor volume may have leveled off this year compared to last, but gaming revenue continued to grow and there is every indication that overall hospitality revenue will continue to increase through 2017.

NORTHLAS VEGASNORTHWEST

WESTCENTRAL

SOUTHWEST

SOUTHLAS VEGAS

EASTLAS VEGAS

HENDERSON

AIRPORT

SUMMERLINDOWNTOWN

THE“STRIP”

RESORTCORRIDOR

15

215

215

95

95

Significant Hotel Sale Activity

Westin-Las Vegas CasuarinaResort Corridor - $66,530,000

826 Units - $81,000/Unit

January 2016

Casino Hotel - Resort Corridor

Palms Casino ResortResort Corridor - $315,500,000

711 Units - $440,000/Unit

October 2016

Casino Hotel - Resort Corridor

Aliante Hotel and CasinoCasino Hotel - $380,000,000

202 Units - $1,881,000/Unit

September 2016

Casino Hotel - North Vegas

Tropicana Las VegasCasino Hotel - $360,000,000

1,497 Units - $240,000/Unit

December 2015

Casino Hotel - Strip

The Orleans HotelResort Corridor - $42,986,000

1,885 Units - $23,000/Unit

February 2017

Casino Hotel - West Vegas

4 Las Vegas Research & Forecast Report | Q2 2017 | Hospitality | Colliers International

Sale Activity Continued

Property Name Sale Date Units Price Price/Unit Submarket Property Type

Westin-Lake Las Vegas Dec 2015 493 $25,000,000 $51,000 Henderson Full Service

Element Hotel Apr 2016 123 $17,100,000 $139,000 Summerlin Full Service

Serene Vegas Jan 2017 150 $15,500,000 $103,000 Resort Corridor Full Service

Holiday Inn Express Mar 2017 108 $11,000,000 $102,000 West Vegas Limited Service

Extended Stay America Dec 2016 123 $4,550,000 $37,000 East Vegas Limited Service

Market Comparisons - Las Vegas

Hospitality Market

TYPE TOTAL INVENTORY (UNITS)

TOTAL SALES (UNITS)

TOTAL SALESVOLUME

AVERAGE SALES PRICE PER UNIT

COMPLETIONS CURRENT QUARTER (UNITS)

COMPLETIONS YTD (UNITS)

CURRENT DEVELOPMENT (UNITS)

DOWNTOWN

CAS 7,428 - $0 n/a - - - FS - - $0 n/a - - - LS 204 - $0 n/a - - - Total 7,632 - $0 n/a - - -

LAS VEGAS “STRIP”

CAS 80,185 - $0 n/a 19 19 4,500 FS 5,450 - $0 n/a - - - LS 2,224 - $0 n/a - - -

Total 87,859 - $0 n/a 19 19 4,500

RESORT CORRIDOR

CAS 11,436 - $0 n/a - - - FS 4,004 - $0 n/a - - - LS 5,939 - $0 n/a - - - Total 21,379 - $0 n/a - - -

AIRPORT

CAS 11,436 - $0 n/a - - - FS 4,004 - $0 n/a - - - LS 5,939 - $0 n/a - - - Total 21,379 - $0 n/a - - -

EAST LAS VEGAS SUBMARKET

CAS 1,703 - $0 n/a - - - FS - - $0 n/a - - - LS 3,058 - $0 n/a - - - Total 4,761 - $0 n/a - - -

HENDERSON SUBMARKET

CAS 2,035 - $0 n/a - - - FS 732 - $0 n/a - 51 - LS 1,465 - $0 n/a - - 100 Total 4,232 - $0 n/a - 51 100

NORTH LAS VEGAS SUBMARKET

CAS 2,035 - $0 n/a - - - FS 732 - $0 n/a - 51 - LS 1,465 - $0 n/a - - 100 Total 4,232 - $0 n/a - 51 100

SOUTH LAS VEGAS SUBMARKET

CAS 2,463 - $0 n/a - - - FS - - $0 n/a - - 211 LS 1,404 - $0 n/a - - 160 Total 3,867 - $0 n/a - - 371

SUMMERLIN SUBMARKET

CAS 1,770 - $0 n/a - - - FS 123 - $0 n/a - - - LS 515 - $0 n/a - - - Total 2,408 - $0 n/a - - - WEST CENTRAL SUBMARKETCAS 3,425 - $0 n/a - - - FS 118 - $0 n/a - - - LS 2,728 108 $11,000,000 $101,852 - - 574 Total 6,271 108 $11,000,000 $101,852 - - 574 MARKET TOTALCAS 111,432 - $0 n/a 169 169 4,500 FS 10,427 - $0 n/a - 51 211 LS 19,826 108 $11,000,000 $101,852 - - 959 Total 141,685 108 $11,000,000 $101,852 169 220 5,670

QUARTERLY COMPARISON AND TOTALS

Q2-17 141,685 108 $11,000,000 $101,852 169 220 5,670 Q1-17 141,516 2,035 $58,485,872 $28,740 51 51 5,670 Q4-16 141,465 913 $692,500,000 $758,488 42 166 5,521 Q3-16 141,423 - $0 n/a 124 124 6,137 Q2-16 141,299 334 $23,600,000 $70,659 0 0 4,167 Q1-16 141,299 3,168 $465,543,841 $146,952 0 0 4,925 Q4-15 141,299 - $0 n/a 0 2,376 3,634 Q3-15 141,299 958 $151,000,000 $157,620 -410 2,376 3,634

5 Las Vegas Research & Forecast Report | Q2 2017 | Hospitality | Colliers International

Copyright © 2017 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

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MARKET CONTACT:Mike MixerExecutive Managing Director | Las Vegas+1 702 735 5700mike.mixer@colliers.com

John StaterResearch & GIS Manager | Las Vegas+1 702 836 3781john.stater@colliers.com