Industry Update
Press Release30 April 2013

ASFONA 2013 Associate Board Members Meeting Addresses Growth in the North American Hotel Market

STR research reveals improved market conditions in North America, with mixed growth in other world markets

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ASFONA

The North American hotel market is gaining traction, as it has completed the 3rd straight year of REVPAR growth, according to research presented at the 2013 ASFONA (Association of Starwood Franchisees & Owners – North America) Associate Board Members meeting, which was held at The St. Regis Monarch Beach in Dana Point, California in March. The gathering was also attended by several members of Starwood's senior corporate management team, together with a number of Starwood-branded hotel owners, franchisees and hotel management company executives, as well as ASFONA associate members representing some of the most highly respected suppliers to the hotel industry.

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Bobby Bowers, senior vice president of Smith Travel Research (STR), opened the meeting with an overview of lodging industry performance, including positive changes in REVPAR, ADR and occupancy rates, with a specific focus on the last three years of the five-year span since the economic downturn of 2008. The research showed improved industry REVPAR growth in North America, which experienced a 6.5% gain in 2012, compared to markets such as Europe, Central and South America, which all showed various decreases in REVPAR. Other positive indicators in the North American market in 2012 included a 4.2% gain in U.S. ADR to $106.10. Overall U.S. occupancy was up 2.5% to 61.4% market-wide. Within North American markets, the research revealed that the U.S. was hit harder than Canada in the downturn, but is experiencing a slightly more robust recovery. Additional finding showed that demand is growing faster than supply, particularly in the upper midscale to luxury hotel brands.

ASFONA's Owner Board Members confirmed these industry findings, reporting that owners, franchisees and hotel management companies with Starwood brands in North America continued to experience impressive REVPAR and occupancy growth during 2012.

"Due to the strength and support of Starwood Hotels & Resorts, properties within their diverse brand portfolio have consistently experienced superior results, and will continue to benefit from being a part of one of the world's leading hotel organizations," said John Shingler, ASFONA president.

Additional presentations by senior Starwood executives at the 2013 meeting included a review of technological advancements within the Starwood brand portfolio by Mark McBeth, vice president of information technology. McBeth shed light on recent changes in technology and pointed out the speed of advancements, stressing that it has only been five years since Apple introduced the original iPhone. Following that, Starwood's chief global supply chain officer, Tad Wampfler, provided the group with insight into the strategy associated with managing the organization's global procurement operation.

"By fostering strong relationships between Starwood Hotels & Resorts, the ASFONA Owners Board of Directors and our Associate Members, we continue to provide our members with valuable industry insight that can help them optimize their success in this rapidly changing market," stated Shingler.

For more information on ASFONA, please visit www.asfona.com.

About ASFONA

Association of Starwood Franchisees & Owners – North America
The mandate of ASFONA is to provide an effective line of communication between Starwood and its franchisees, owners and hotel management companies doing business in North America. The association provides Starwood the opportunity to seek the council and opinion of the franchise and ownership community on policy and standard operating procedures that can influence the owners’ businesses and the cost of doing business.

ASFONA’s Board of Directors is charged with providing the leadership required to build strong working relationships between Starwood and its franchisees and owners. For more information, please visit .

Contact
Andrea Roland (for ASFONA)
Plan A Public Relations & Marketing, Inc.
Phone: 407.905.0608
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