Gung Ho! Spring/Summer, 2011 _____________________________________________________________________________________________

Annual Leadership Summit Inspires Hope, Leads to Excellence "First say to yourself what you would be; and then do what you have to do." Greek philosopher Epictetus’s words are as true now as they were 2000 years ago. Especially for The Generation Companies. This is an organization that specializes in vision (who we will be) and then provides a strong foundation in the form of Core Values (the how-tos) to bring the vision to life. Vision met how-tos at last winter’s annual Leadership Summit and Team Recognition Banquet. Generation gathered GMs and DOSs for insights and brainstorming on a number of topics including Stop the Bus, Performance Management, Revenue Road Maps and Sales-Building Strategies. More than 40 team members attended the four-day event, held for the first time at a Generation property, the Homewood Suites in Wilmington, NC. “This is the first time we’ve brought in all of our Directors of Sales and Assistant Managers/ Sales & Operations (AMSOs),” said Ron Jacobsen, Generation Vice-President of Operations. “Usually, it’s just the GMs until the awards evening so this was a larger group with bigger impact. There was a different energy and enthusiasm that was very beneficial. Kudos to the Homewood team for doing an outstanding job accommodating everyone.” Choice Break-Out Session The Choice break-outs featured GM Richard Nkomo, formerly with SES in Sterling VA and Michelle Massey, Area Director of Sales for Candlewood, Newport News and SES, Hampton VA. Richard outlined Yield Management best practices, including managing inventory online to

boost revenue. Michelle discussed sales best practices on the sales process, including how to mine for sales leads, places to look for sales for the extended stay market, and dealing directly with decision-makers. IHG Break-Out Session The IHG break-outs featured Carolyn Rand, VP of IHG with updates on the Staybridge and Candlewood brands. Carolyn shared upcoming brand initiatives, brand performance and prototypes as well as the May roll-out of the PERFORM Pricing Initiative. All Generation IHG Hotels will be using the PERFORM system in the coming months to enhance their revenue management. Stop the Bus In the Stop the Bus leadership session, Trey Baker presented the results of the DiSC profile GMs and Directors of Sales completed. The group examined their various management styles and characteristics and, more importantly, explored how to work with others–in good times and stressful times. An important part of the Stop the Bus conversation was the review of the performance evaluation forms. Participants were able to provide invaluable feedback on the process, updating and improving forms. The more user-friendly and up-to-date online evaluation roll-out is in July. “We got great feedback that we are able to incorporate directly into the new system,” said Regional Operations Manager Rick Stroud. “I like that we’re willing to look at processes and refresh them based on feedback from managers.” Performance Management Operations Vice-President Ron Jacobsen and the GMs took a look at Performance Management and the 4 Disciplines of Execution: # 1 Focus on Wildly Important Goals (WIGs). # 2 Act on the Lead Measure (action steps). # 3 Keep a Compelling Score Card. # 4 Create a Cadence of Accountability. Introduced more than a year ago, Generation manages key team activities according to The 4 Disciplines of Execution: Huddle conference calls are held weekly with each general manager to follow up on, strategize for and maintain accountability with the actions steps that will move the individual businesses forward. Revenue Road Maps The Revenue Road Maps session centered on how to achieve budgeted revenue in 2011. The team created road maps to achieve their budgeted revenue, including an action plan to better meet budget goals. The event included a day of sales-building activities such as an introduction to the sales management software ACT! and a primer on the new uses of social media to manage the property’s reputation (TripAdvisor and similar sites). While a summit is a meeting in the business and political arena, in the world of geography, a summit is a peak, the mountaintop, the pinnacle. For Generation in 2011, both definitions apply. “We are well past the worst of the great recession and are excited about the momentum we’re seeing,” commented Generation Vice-President Ron Jacobsen. “The wind is at our back and we’re seeing good growth in Revpar (revenue per available room). Our GMs have been through a lot since 2008 and we are grateful that most have hung on with us and are enjoying the rebounding of our business.” Rick Stroud, Regional Operations Manager, agreed. “Things are going well. We’re seeing slow and steady improvement–interesting momentum–in a positive direction. Every hotel member does their best, but our hotels struggled because of circumstances out of our control. That’s

tough when you know folks are working hard. Now, results are matching efforts. What helped us more than anything is having a history with our employees. So many have been with us for so long and when they saw that we waited till the last minute to make cuts, freeze bonuses and reduce pay, they felt better. They trust us and know we did what we had to, when we had to. A long-standing work relationship, this partnership, makes it easier to weather difficult times together. People rode out the storm with us and saw things coming back–pay, bonuses, hiring. We did what we said we would and that creates trust.”

We’re Growing! Generation Breaks Ground on New Brand This spring, Generation broke ground on Home2 Suites by Hilton in North Charleston, SC. Slated to open in late 2011 or early 2012, Home2 Suites is an upper mid-tier, 122-room, extended stay hotel with a “hip and humble” approach to extended-stay travel. Designed to feel like a home away from home for budget-conscious business and leisure travelers, it’s the first brand Hilton Worldwide has launched in 20 years. “We’re delighted that Generation is breaking ground on a Home2 Suites in North Charleston,” said Bill Duncan, global head of the brand. “They are one of our award-winning partners in the extended-stay community.” “With Generation and Hilton Worldwide’s considerable investment in our community, these leaders in hotels are proving North Charleston’s market is still in need of extended-stay accommodations to meet the demands of our businesses and visitors,” said North Charleston Mayor Keith Summey. Jeff Castleberry, director of acquisitions and development for The Generation Companies, agreed the new property works for the area. “We think Home2 Suites will be a great fit for the Charleston market’s diverse demand for business, tourism and military accommodations,” said Castleberry. “The new brand has something to offer everyone, from the 30 double queen rooms that are perfect for families visiting the military bases, to a stylish yet comfortable design that appeals to guests attending events at the Performing Arts Center. The Home2 Suites style and its modern amenities will make any traveler feel at home.”

Generation Delivers News Via YouTube Channel Generation’s communications strategy goes beyond e-newsletters, advertising, emails, conference calls and face-to-face meetings. The company also uses social media such as YouTube to engage team members and guests. The goal? To communicate to team members the latest information about the company and our practices in a personal and engaging way. Established in 2009, Generation’s YouTube offerings range from short videos on The 4 Disciplines to guest satisfaction and sales leads contests, best practices and company news such as the awards banquet slide show. To see Generation on YouTube, visit: http://www.youtube.com/user/GenerationCo Can I Quote You On That? “Generation is the first company that I honestly feel shares my core values. It is a company with integrity.” – Sherry Matthews, Director of Sales, Staybridge Suites, Memphis, TN

Congratulations Award-winners! Property of the Year: Candlewood Suites, Rocky Mount, NC. Maintenance Engineer of the Year: Kelvin Lee, Candlewood Suites, Raleigh, NC. General Manager of the Year:Richard Nkomo, Suburban Extended Stay, Sterling/Hampton, VA. Gung Ho Operations Award: McKenzie Nixon, Homewood Suites, Wilmington, NC. Gung Ho Sales Award: Rita Cuppett, Candlewood Suites, Herndon, VA. Guest Service Representative of the Year: Gregg Carney, Candlewood Suites, Rocky Mount, NC Rookie of the Year: Rick Young, Suburban Extended Stay, Jacksonville, NC. Sales Person of the Year: Sherry Matthews, Staybridge Suites, Memphis, TN. Most Improved Property: Candlewood Suites, Fairfax, VA. Housekeeper of the Year/Choice: Sandra Figueroa, Suburban Extended Stay, Sterling, VA. Housekeeper of the Year/IHG: Melissa Brantley, Candlewood Suites, Hopewell, VA. Assistant General Manager of the Year: Umair Rao, Suburban Extended Stay, Sterling, VA

Celebrate Our People & Our Properties: Congratulations Rewarding Greatness Award-winners!

Beloved football coaching icon Vince Lombardi said "The spirit, the will to win, and the will to excel are the things that endure. These qualities are so much more important than the events that occur." Neither slowly- rebounding economy or leaner and meaner operations can prevent a great organization from honoring great people. More than 50 people turned out for the Generation Rewarding Greatness awards banquet during the Leadership Summit in February. It was a night of celebrating the best and the brightest. “The hotel business is highly demanding,” Generation President Mark Daley pointed out. “Our teams get refueled when we recognize them for achieving greatness. The annual winners of our awards categories have been nominated by fellow team members, endorsed by their GMs and verified by our corporate team, and so, are worthy of the high honor they receive. While we do this in a grand way once a year at our Annual Awards Dinner, it’s also important that our managers continue the habit of recognizing great performance every day with their own hotel teams.” Business guru Stephen Covey said, “You have to water the flowers you want to grow.” With these awards, Generation proves there’s no sweeter nourishment than appreciation. Housekeeper of the Year Award-Choice Sandra Figueroa Suburban Extended Stay, Sterling, VA

Housekeeper of the Year/IHG

Melissa Brantley Candlewood Suites, Hopewell, VA

Maintenance Engineer of the Year Kelvin Lee, Candlewood Suites, Raleigh, NC

“I like a challenge and continue to challenge myself and also because I feel as I have gained a lot of respect from my fellow workmates and generations companies and I will always give the respect back. Generation is a growing company. They’re always trying to improve themselves as a company and always trying to do their best to give the funds necessary to improve the hotels.” Gung Ho Operations Award McKenzie Nixon Homewood Suites, Wilmington, NC

“The people that I work with everyday are the reason why I love my job so much. The best part of working the front desk is that you touch every aspect of the hotel; I'm in constant communication with every department of our property–upper management, Sales, Housekeeping, Food and Beverage and Maintenance. Everyone takes so much pride in their role at our property and realizes that we all are working together towards a common goal, which is to give our guests the best hotel experience at their home away from home. I enjoy going to work and giving a 110% to the achievement of our property because I know the people to my left and right have the same belief in service that I do.”

Gung Ho Sales Award

Rita Cuppett Candlewood Suites, Herndon, VA

“I love my job because it feels like it is a true extension of me. I can be myself without compromise. I can be a Christian woman, a wife for my husband and a mommy to my children – and still be the Director of Sales at the Candlewood Suites in Herndon. The company I work for shares my love of God and I truly believe that it is what we ultimately work and strive towards – to Glorify God. I also love my property and the team I work with. I would not be a complete DOS and a successful member of our team if it was not for each and every person at the hotel. They make my job easy and enjoyable. I also truly have the most wonderful mentor and leader in my GM, Peter Hutchins. I appreciate the recognition and feedback so much. Generation is a company that you can shoot roots with and grow with.” Guest Service Representative of the Year

Gregg Carney Candlewood Suites, Rocky Mt, NC

Rookie of the Year Rick Young

Suburban Extended Stay, Jacksonville, NC

”I love that every day is a surprise, that you have no clue what’s in store for you. It’s never monotonous. The people you’ll meet and the situations that arise are the great unknown, but, to me, it’s what makes it fun! I believe one should have fun, enjoy what you do, otherwise it will feel like ‘work’. I love being with my team every day! I enjoy Generation because of the great people for starters. They truly care about you as a person and your well-being. They have given me a great opportunity, allowing me to a chance to succeed. They give me the opportunity to provide for my family while doing something I truly love and have a passion for.” Assistant General Manager of the Year Umair Rao, Suburban Extended Stay, Sterling, VA

Most Improved Property Candlewood Suites, Fairfax, VA

Sales Person of the Year

Sherry Matthews, Staybridge Suites, Memphis, TN

“It sounds cliche, but it’s the people–from The Generation Companies corporate to my GM, my coworkers to the account clients, and, of course, the guests. Every day is an opportunity to bless and be blessed. There is always something new to learn and someone to be of service to. I am reminded daily of the value of working together to make a difference. It’s a fun way to earn a living. Generation is the first company that I honestly feel shares my core values. It is a company with integrity. While an employee for only two years, I continue to be impressed with the good talent and great people who practice daily what they say they are all about. It inspires me to be a good steward of all that has been entrusted to me.”

General Manager of the Year Richard Nkomo Suburban Extended Stay, Sterling/Hampton, VA

Property of the Year Candlewood Suites, Rocky Mount, NC

CSC Employee of the Year Micki Evans, Property Support Training Manager

“I love my job because I feel blessed to have a job that I really, really enjoy! I also love the family environment that Generation Companies instills in all who work for them.”

Congratulations award-winners for your Great efforts!

Success Story:

Staybridge Suites, Memphis Honored for Excellence The Staybridge Suites, Memphis recently received four awards at the prestigious Metropolitan Memphis Hotel & Lodging Association annual awards luncheon. L.B. Julio was selected as the Food & Beverage Employee of the Year for a Limited Service Property, Maria Ramirez was honored as Room Keeper of the Year for a Limited Service Property, Jonathan Mulroy won Manager of the Year for a Limited Service Property and Bob Cox was designated General Manager of the Year for a Limited Service Property. The awards recognize outstanding quality of work, excellent interactions with guests and “above and beyond” moments relating to guests, coworkers and the community. Nominations for these honors are made by peers and supervisors, people who know the outstanding qualities of potential award-winners. That makes all the difference in the world, says Staybridge GM Bob Cox. “To be a winning property, the team has to have heart and a passion for what they do,” Cox points out. “They need to perform each task as if their whole being is dependent upon the outcome. They need to have the ability to laugh and cry with our guests, treating them as if they are part of our extended family while maintaining a professional relationship.” Cox explains that when one person wins, the whole team wins. “The team as a whole feels that they have ownership of it as well. What one team member does reflects on the whole team, and when one property walks away with four awards, it is a huge accomplishment that couldn’t have happened without the support and pride of the whole team. I think our team takes this as a calling and not just a job and they do their work with vigor. They come in to work daily and no matter how hard the day is, you never see them without a smile and a greeting for anyone they see.” Advice From the Pros: Winning at Business *Attitude is everything. When you are faced with a challenging situation most times you have no control over anything but your attitude. If you can learn to spin a negative situation into a positive one by maintaining a positive “can do attitude”, then you dictate the nature of the experience with peers and guests. I also believe that one’s attitude is contagious. People feed on the energy that you put into the atmosphere so always try to put positivity in your work environment through your attitude. – McKenzie Nixon, Homewood Suites, Wilmington, NC *I rely on the Core Values, especially Respect, Integrity, Urgency and Fun. This is a winning combination: Respect one another, maintain our Integrity, act with a sense of Urgency and always keep work Fun. We can’t go wrong. Our core values help us run a successful business. –Micki Evans, Property Support Training Manager

*Always take pride in what you do and do not just act like it’s a job just to get a paycheck and also treat the hotel like its your own home. –Kelvin Lee, Candlewood Suites, Raleigh, NC *Assemble the best team you can who take pride in their opportunity to provide a great service to their community and fellow employees. –Rick Young, Suburban Extended Stay, Jacksonville, NC *Strive for excellence in all things. Treat others the way you want to be treated in every situation. It always results in a job well-done. –Sherry Matthews, Staybridge Suites, Memphis, TN *Make every action count, no matter how small – it will lead to great things. Make every second of every day count: time is precious. Always remember that our guests are our bread and butter; treat them like kings and they will become members of your hotel family. Respect your co-workers and appreciate people around you. A support network is worth gold; together, we can accomplish much more than when we try on our own. Remember, synergy produces a combined effect greater than the sum of the separate effects. –Rita Cuppett, Candlewood Suites, Herndon, VA