PKF CONSULTING AND CBRE HOTELS’ OUTLOOK

For the Canadian Lodging Sector 2015/2016

September 15, 2015

On pace to exceed original forecasts

FIFA / PanAM games impacts

Month of June was record setting across the country

Prospects for overall travel growth in 2016

TRANSITION FROM RESOURCE MARKET

Economic and Travel Outlooks

Source: Statistics Canada, Conference Board of Canada, Canadian Outlook Summer 2015, Scotiabank Group – Global Forecast Update 2015; CIBC World Markets – Monthly FX Outlook, 2015; RBC – Economic and Financial Market Outlook – 2015

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

National Economic Outlook - 2015/16

$1.58 $1.54

$1.59 $1.63 $1.66

$1.70 $1.74 $1.77 $1.80

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

1.45

1.55

1.65

1.75

1.85

1.95

2008 2009 2010 2011 2012 2013 2014 2015f 2016p

% C

hange

Real GDP % Change

2.4% 1.4% 2.2%

Overnight Travel 2014

Actual 2015

Forecast 2016

Project ion

Business t ravel dom est ic 2.5% 0.3% 2.7%

Pleasure t ravel dom est ic 2.4% 2.7% 2.2%

Tot al dom est ic t ravel 2.0% 2.1% 2.1%

U.S. Travel 1.1% 7.5% 3.2%

Overseas t ravel 9.3% 5.0% 4.1%

Tot al overn ight t ravel 2.2% 2.7% 2.3% Nat ional accom m odat ion dem and grow t h 3.2% 1.0% 2.4%

National Travel Outlook 2015/16

Source: Canadian Tourism Research Institute, Conference Board of Canada, Fall 2015 Forecast

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

Western Canada Central Canada Atlantic Canada

1.7% 1.9%

1.6%

2015f 2016f 2017f

3.0%

1.9%

2.6%

2015f 2016f 2017f

2.4% 2.2%

2.7%

2015f 2016f 2017f

Source: Canadian Tourism Research Institute, Conference Board of Canada, Preliminary Fall 2015 Forecast

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

Regional Travel Outlooks - % Growth

National Market & Financial Outlooks

2015/2016

National Hotel Investment

• Volume

• Price per room

• 2015 YE Forecast

Buyer Profile

Private Investors

Public/ REITS

Foreign Capital

National Supply & Demand Outlook

2014 Actual 64% 2015 Forecast 64% 2016 Projection 65%

Supply & Demand Growth National Occupancy

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

0.6%

1.5% 1.3%

3.2%

1.0%

2.4%

2014 2015F 2016P 2014 2015F 2016P

Supply Demand

$10.8 $11.6

$12.5

2014 2015F 2016P

Adjusted Net Operating Income

/Available Room ($000's)

National ADR, RevPar & Bottom Line Outlook

National ADR Growth National RevPar Growth

2014 Actual 3.7% 2015 Forecast 3.9% 2016 Projection 3.5%

2014 Actual 6.3% 2015 Forecast 3.4% 2016 Projection 4.7%

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

13.5% 6.9%

8.1%

Atlantic Canada Hotel Investment

Atlantic Canada Supply & Demand Outlook

2014 Actual 58% 2015 Forecast 58% 2016 Projection 59%

Supply & Demand Growth Occupancy

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

2.3%

1.2%

0.6%

2.1%

0.0%

2.0%

2014 2015F 2016P 2014 2015F 2016P

Supply Demand

Atlantic Canada ADR, RevPar & Bottom Line Outlook

Atlantic Canada ADR Growth Atlantic Canada RevPar Growth

2014 Actual 3.1% 2015 Forecast 3.0% 2016 Projection 3.0%

2014 Actual 2.9% 2015 Forecast 1.8% 2016 Projection 4.4%

$7.1 $7.5

$8.1

2014 2015F 2016P

Adjusted Net Operating Income

/Available Room ($000's)

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

0.1% 5.4%

8.1%

SOME GROWTH EXPECTED IN 2015 & 2016

Western Canada Hotel Investment

Western Canada Supply & Demand Outlook

2014 Actual 65% 2015 Forecast 64% 2016 Projection 64%

Supply & Demand Growth Occupancy

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

1.6% 2.1% 2.0%

3.4%

0.0%

3.0%

2014 2015F 2016P 2014 2015F 2016P

Supply Demand

Western Canada ADR, RevPar & Bottom Line Outlook

Western Canada ADR Growth Western Canada RevPar Growth

2014 Actual 4.0% 2015 Forecast 3.0% 2016 Projection 3.0%

2014 Actual 5.7% 2015 Forecast 0.9% 2016 Projection 4.1%

$14.5 $14.5

$15.4

2014 2015F 2016P

Adjusted Net Operating Income

/Available Room ($000's)

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

11.3% -0.2%

6.0%

OVERALL NUMBERS COULDN’T BE MORE MISLEADING

Central Canada Hotel Investment

Central Canada Supply & Demand Outlook

2014 Actual 64% 2015 Forecast 65% 2016 Projection 66%

Supply & Demand Growth Occupancy

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

-0.5%

0.9% 0.7%

2.5% 2.0% 2.0%

2014 2015F 2016P 2014 2015F 2016P

Supply Demand

Central Canada ADR, RevPar & Bottom Line Outlook

Central Canada ADR Growth Central Canada RevPar Growth

2014 Actual 3.2% 2015 Forecast 5.0% 2016 Projection 4.0%

2014 Actual 6.4% 2015 Forecast 6.1% 2016 Projection 5.3%

$8.6 $10.1 $11.1

2014 2015F 2016P

Adjusted Net Operating Income

/Available Room ($000's)

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

18.1% 16.7% 10.8%

CITY WIDE OCCUPANCY IN TORONTO, MONTREAL AND OTTAWA ALL OVER 70%

Major Market Outlooks

> 5% RevPar Growth

4 - 5% RevPar Growth

< 1% RevPar Growth

2016 RevPAR Ranking Vancouver $126 Ottawa $116 Montreal $114 Toronto $107 St. John’s $107 Quebec City $105 Calgary $104 Saskatoon $99 Niagara Falls $97 Halifax $87 Edmonton $83 Winnipeg $81 Regina $73

-12.0%

-8.0%

-4.0%

0.0%

4.0%

8.0%

Van

couv

er

Toro

nto

Hal

ifax

Nia

gara

Fal

ls

Otta

wa

Mon

treal

Que

bec

City

Win

nipe

g

St.

John

’s

Sas

kato

on

Cal

gary

Edm

onto

n

Reg

ina

Major Market* Outlooks RevPar Projection - 2016

* ‘Major Markets’ refer to Greater Metro Areas

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

National Financial Outlook Beyond 2015

National Financial Outlook – Beyond 2015

NOTE: Adjusted Net Operating Income is defined as income after property taxes, insurance, management fees, franchise fees, and capital reserves; but before rent, interest, income taxes, depreciation and amortization.

Source: PKF Consulting Inc., a CBRE Company with reproduction and use of information subject to Disclaimer and Restrictions as detailed at www.pkfcanada.com

$12.

1

$8.9

$10.

1 $14.

1

$10.

5 $14.

7

$14.

5 $18.

9

$7.5

$8.4

$7.5

$10.

5

2000 2008 2015 2020

Adju

sted

Net

Ope

ratin

g In

com

e Pe

r Ava

ilabl

e R

oom

($

000'

s)

Central Canada Western Canada Atlantic

(26%)

40%

12% 14%

(1%)

(11%)

40%

30%

40%

Bill Stone Greg Kwong Brian Flood Deborah Borotsik Marc-Aurele Mailloux-Gagnon Cindy Schoenauer Karina Toome Vanessa Boland

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