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SPOTLIGHT TURKEY:

HOTEL PERFORMANCE TRENDS &

PIPELINE

Elizabeth Winkle

Managing Director, STR Global

CATHIC 9th June 2014

CATHIC ©2014 STR Global www.strglobal.com

Performance Improving Globally

April 2014 YTD, % Chg in USD, Europe in Euro

+6.4% +6.9%

-4.8%

-4.9%

+4.4%€

-2.8%

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Europe RevPAR € Change

+4.4% Apr 14 YTD

+1.5% YE 13

+4.2% YE 12

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Rate Showing Signs of Life

April 2014 YTD, Occ, ADR % Chg in local currency

-8%

-4%

0%

4%

8%

12%

16%

Occupancy ADR

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Still Room for Further Growth

40 €

60 €

80 €

100 €

120 €

140 €

160 €

180 €

200 €

40%

45%

50%

55%

60%

65%

70%

75%

Occupancy ADR

April 2014 YTD, Occ, ADR in Euro

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Ankara, Istanbul lead rate growth

April 2014 YTD, Occ, ADR% Chg in local currency

-10%

-5%

0%

5%

10%

15%

20%

25%

Occupancy ADR

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Ankara, Istanbul are comparing well

0 €

25 €

50 €

75 €

100 €

125 €

150 €

175 €

200 €

225 €

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

Occupancy ADR

April 2014 YTD, Occ, ADR in Euro

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Turkey RevPAR in TRY

+7.7% Apr 14 YTD

+3.9% YE 13

+1.3% YE 12

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Strong ADR growth, Occ Declines

TRY 150

TRY 170

TRY 190

TRY 210

TRY 230

TRY 250

TRY 270

TRY 290

50%

55%

60%

65%

Total 2012 Total 2013 Apr YTD 2014

OCC ADR RevPAR

Turkey Occ, ADR and RevPAR in TRY

+0.7%

+0.6% -2.7% -6.8%

+6.7% +15.6%

+1.3% +3.9%

+7.7%

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Ankara, Istanbul driving performance

45%

50%

55%

60%

65%

TRY 0

TRY 50

TRY 100

TRY 150

TRY 200

TRY 250

TRY 300

TRY 350

TRY 400

Turkey Ankara Istanbul Turkey Regional Turkish Riviera

ADR RevPAR OCC

Occ, ADR and RevPAR, in TRY

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Supply Growth strong across top tier

6.1

19.5

4.8

-11.3

6.0

0.8 0.7

16.2

9.7

-5.0

-2.8

4.6

-15

-10

-5

0

5

10

15

20

Luxury Class Upper Upscale Class Upscale Class

Supply % Chg Demand %Chg Revenue %Chg RevPAR % Chg

Istanbul Supply & Demand % Change, 12 Months Ended April 2014

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New Supply Impacting Occupancy, ADR unaffected

TRY 200

TRY 300

TRY 400

TRY 500

TRY 600

TRY 700

TRY 800

50%

55%

60%

65%

70%

Luxury Class Upper Upscale Class Upscale Class

OCC ADR

Istanbul 12 Months Ended April 2014, in TRY

+13.5%

-16.4% -11.3% -3.8%

+9.6%

+8.8%

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Pipeline

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More Supply to Come

Under Contract, as of May 2014, share by #rooms

53% Ankara

4%

Istanbul

8%

35%

Turkish Riviera

Turkey Regional

+11,700 total rooms

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Upscale Hotels are leading pipeline share of total

Under Contract, as of May 2014, share by #rooms

10%

23%

42%

19%

2% 4%

Luxury Chains

Upper Upscale Chains

Upscale Chains

Upper Midscale Chains

Midscale Chains

Unaffiliated

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STR Global

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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

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This presentation is based on information compiled by

STR Global Ltd. No strategic or marketing

recommendations or advice are intended or implied.

CATHIC 2014

Elizabeth Winkle