ULI Florida Summit Presentation

What’s Happening in Hospitality? The New Brands, The New Breed

2019 ULI Florida Summit The Gaylord Palms - Kissimmee, Florida What’s Happening in Hospitality? The New Brands, The New Breed

Moderator: Lou Plasencia Chief Executive Officer The Plasencia Group Tampa, Florida

Scott Berman Josh Taube US Hospitality & Leisure Practice Executive Vice President Leader PricewaterhouseCoopers Strategic Property Partners Miami, Florida Tampa, Florida

Barry Bloom, PhD Jim Tinson President & Chief Operating Officer Chief Executive Officer, Partner Xenia Hotels & Resorts Hart Howerton Architects Orlando, Florida New York, Florida

2 2 Defining the New Style of Lodging Offerings

The Legacy Brands The “Non-Brands”

Hard Brand Boutique Hotel Lifestyle Hotel Soft Brand Collection

■ Nationally franchised ■ Independent or part of ■ Nationally franchised ■ Affiliated with a major smaller national or national franchise Prescriptive brand ■ Prescriptive brand international brand ■ distribution system standards standards ■ Typically under 250 guest ■ Fewer brand standards Design-centric ■ Homogenized design rooms ■ ■ Signature hotels, ■ Designed for travelers ■ Designed for corporate ■ Design-centric individually named and interested in boutique and/or leisure traveler branded ■ Usually less than 10,000 lodging ■ Usually about 18,000 to square feet of meeting ■ Unique in design Offer a lounge and 20,000 square feet of space ■ meeting space typically light food on ■ Generally offer at least ■ Restaurant and lounge on site one restaurant and ■ Segments range from site or near unique local lounge Generally upper- select service to full dining and entertainment ■ midscale to luxury Generally upper-midscale service to luxury, and options ■ from suburban to urban to luxury to airport to resort ■ Generally upscale to luxury

3 3 The Brands and “Non-Brands”

The Legacy Brands The “Non-Brands”

Hard Brand Boutique Hotel Lifestyle Hotel Soft Brand Collection

■ Crowne Plaza ■ 21C Museum Hotels ■ AC by Marriott ■ Aiden by Best Western ■ DoubleTree ■ Ace ■ Aloft by Marriott ■ Ascend by Choice ■ Grand Hyatt ■ CitizenM ■ Andaz by Hyatt ■ Autograph by Marriott ■ Hilton ■ Dream Hotels ■ Cambria by Choice ■ Curio by Hilton ■ Hyatt Regency ■ Delano by SBE ■ Canopy by Hilton ■ Destination by Hyatt ■ InterContinental ■ Graduate Hotels ■ Centric by Hyatt ■ Dolce by Wyndham ■ Loews ■ SLS Hotels ■ Edition by Marriott ■ Joie de Vivre by Hyatt ■ Marriott ■ Mondrian by SBE ■ GLO by Best Western ■ Luxury Collection by ■ Park Hyatt ■ NYLO Hotels ■ Indigo by IHG Marriott ■ Renaissance ■ Room Mate ■ Kimpton by IHG ■ Registry Collection by ■ Ritz-Carlton ■ Sixty Hotels ■ Le Meridien by Marriott Wyndham ■ Sheraton ■ Valencia ■ Motto by Hilton ■ Sadie by Best Western ■ Waldorf=Astoria ■ Viceroy ■ Moxy by Marriott ■ Tapestry by Hilton ■ Westin ■ Virgin ■ Red by Radisson ■ Tribute Portfolio by ■ Wyndham ■ Thompson by Hyatt Marriott ■ TRYP by Wyndham ■ Trademark by Wyndham ■ Vib by Best Western ■ Unbound by Hyatt ■ Voco by IHG ■ W by Marriott

4 4 Hotel Occupancy Performance - Hard, Boutique and Soft

Source: The Highland Group

5 5 Hotel Total Revenues – 2018 – Lifestyle, Soft and Boutique

Total Revenue $8.0

$7.5 $7.5

$7.0 $6.8

$6.5 $6.2

$6.0 Dollars (billions)

$5.5

$5.0 Lifestyle Hotels Soft Brand Collections Independent Boutique

Sources: STR and The Highland Group

6 6 2018 Supply / Demand Change – Comparison

US Upscale

US Upper Upscale

Soft Brand Collections

Lifestyle Boutique

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22%

Demand Supply

Sources: STR and The Boutique Hotel Report 2019

7 7 2018 Revenue per Available Room – Comparison

US Upscale

US Upper Upscale

Soft Brand Collections

Lifestyle Boutique

$100 $120 $140 $160 $180 $200

Sources: STR and The Boutique Hotel Report 2019

8 8 Typical Design Elements

■Experiential environment (library, billiards, fitness, etc.) ■Neighborhood influence ■Less clubby, less intimidating ■More fun room, less ballroom ■Living room experience where no one is a stranger ■Eat and drink to the beat ■Pop-up places and events; unique and customized experiences ■Brand reliability and service, without the brand presence ■Cutting edge tech; mobile room key

Sources: Building Design & Construction Magazine, The Plasencia Group

9 9 Hart Howerton Architects

10 10 Hart Howerton Architects

11 11 Xenia Hotels & Resorts

Hotel Commonwealth Boston, MA

Royal Palms Resort & Spa, Hyatt Unbound Collection Phoenix, AZ

Grand Bohemian Hotel, Autograph Collection Hyatt Andaz Napa Charleston, SC Napa, CA

12 12 Strategic Property Partners

The Tampa EDITION Tampa, FL

Water Street Tampa Tampa, FL

JW Marriott Tampa, FL Marriott Tampa Water Street Tampa, FL

13 13 Strategic Property Partners