AgendaAgenda

Who Are Our Guests?Who Are Our Guests? What Do Our Guests Need?What Do Our Guests Need? How Well Are We Meeting Those Needs? How Well Are We Meeting Those Needs?

(Report Card)(Report Card) Brand Strategy And Tactics – How Can We Brand Strategy And Tactics – How Can We

Become The Best At Meeting Those Needs?Become The Best At Meeting Those Needs? Q&Q& AA Inn Of The Year Award RecognitionInn Of The Year Award Recognition

Guest Characteristics Guest Characteristics

Stay BehaviorStay Behavior

– 38% business38% business

– Travel more frequentlyTravel more frequently

PsychographicPsychographic

– Seek qualitySeek quality

Source: US Census Bureau, NFO Tracking Study

Common ValuesCommon Values Sensible People Sensible People SpontaneousSpontaneous Comfortable in Their Comfortable in Their

Own SkinOwn Skin Value Home and FamilyValue Home and Family Smart SpendersSmart Spenders Motivated to TravelMotivated to Travel

GROUNDED VOYAGERSGROUNDED VOYAGERS

Guest NeedsGuest Needs

PhysicalPhysical

– More amenities improve satisfactionMore amenities improve satisfaction

– Everything worksEverything works EmotionalEmotional

– Provide a Provide a good valuegood value

– Staff makes me feel comfortableStaff makes me feel comfortable

Sources: NFO, Landis

40

42

44

46

48

50

52

Spring '01 2003

Sleep Inn

How Well Are We Meeting the Needs?How Well Are We Meeting the Needs?

Brand Awareness Brand Awareness

Sleep Inn Reservations DeliverySleep Inn Reservations Delivery

CRS Gross Room Revenue

$0

$20,000,000

$40,000,000

1999 2000 2001 2002 2003

CH.Com Oth Internet Voice

Reservations Delivery GrowingReservations Delivery Growing

$50

$52

$54

$56

$58

$60

$62

$64

$66

'99 '00 '01 '02 '03

CRS Hotel Direct

CRS Rooms Sell At A Rate Premium CRS Rooms Sell At A Rate Premium

Sleep Inn Reservations DeliverySleep Inn Reservations Delivery

Sleep Inn LoyaltySleep Inn Loyalty

Revenue From Choice Privileges And Airline Revenue From Choice Privileges And Airline Frequency Partners Continues To GrowFrequency Partners Continues To Grow

14.214.220032003

11.411.420022002

10.110.120012001

% of Sleep Inn Revenue

RevPar Index Is ImprovingRevPar Index Is Improving

93949596979899

100101102

2000 2001 2002 2003

OCC ADR Yield (RevPar)

Sleep Inn PerformanceSleep Inn Performance

How Well Are We Meeting the Needs?How Well Are We Meeting the Needs?

Value for the MoneyValue for the Money

61

62

63

64

65

66

67

68

Sleep Baymont Fairfield Holiday LaQuinta

Guest Tracking Study, 1999-2003, high value for the money ratings (% 8-10 on 10-point scale) netted across all 5 years

How Well Are We Meeting the Needs?How Well Are We Meeting the Needs?

Sleep Inn PerformanceSleep Inn Performance

SupplySupply

– Average age of propertyAverage age of property

SupplySupply

– Average age of propertyAverage age of property

20.8 Years20.8 YearsLa Quinta InnsLa Quinta Inns

9.0 Years9.0 YearsFairfield InnFairfield Inn

9.9 Years9.9 YearsBaymontBaymont

7.9 Years7.9 YearsHoliday Inn ExpressHoliday Inn Express

5.6 Years5.6 YearsSleep InnSleep Inn

How Well Are We Meeting the Needs?How Well Are We Meeting the Needs?

Brand VisionBrand VisionContinue To Provide Best Continue To Provide Best Guest Satisfaction In The Guest Satisfaction In The

SegmentSegment

Brand Strategy and TacticsBrand Strategy and Tactics Continue to build on industry leading guest Continue to build on industry leading guest

satisfaction by delivering an unexpected experience satisfaction by delivering an unexpected experience at an exceptional price CONSISTENTLYat an exceptional price CONSISTENTLY

– QAQA

– FSDFSD

– Improve or remove (non-compliant hotels)Improve or remove (non-compliant hotels)

– Refurbishment packageRefurbishment package

– Services and amenitiesServices and amenities Occupy more consumer “mind share” by increasing Occupy more consumer “mind share” by increasing

distribution of the branddistribution of the brand

– Increase developer ROIIncrease developer ROI

– Focused sales teamFocused sales team

Enhance Quality, Consistency and Guest SatisfactionEnhance Quality, Consistency and Guest Satisfaction

QAQA

– Guest Satisfaction SystemGuest Satisfaction System

– Stronger Guest Focus by FSDsStronger Guest Focus by FSDs

– Unannounced QAUnannounced QA

– New Form and ScoringNew Form and Scoring

Enhance Quality, Consistency and Guest SatisfactionEnhance Quality, Consistency and Guest Satisfaction

FSD focus on guest satisfactionFSD focus on guest satisfaction

Improve or RemoveImprove or Remove

– Tighter Corrective Action PlansTighter Corrective Action Plans

– RenewalsRenewals

– RelicensingsRelicensings

Enhance Quality, Consistency and Guest SatisfactionEnhance Quality, Consistency and Guest Satisfaction

Turn-key refurbishment packageTurn-key refurbishment package

– Enhance consistency of newer Sleep Inn Enhance consistency of newer Sleep Inn “look and feel”“look and feel”

– Target refurbishment dollars where highest Target refurbishment dollars where highest guest impact and highest return on guest impact and highest return on investmentinvestment

– Simplify sourcing, ordering, installationSimplify sourcing, ordering, installation

Enhance Quality, Consistency and Guest SatisfactionEnhance Quality, Consistency and Guest Satisfaction

Sleep Inn, Inn & Suites PrototypeSleep Inn, Inn & Suites Prototype

Cost Efficient Physical Structure With 88% Of Square Footage Being Revenue Producing

Value Engineered Interior Architectural Detailing With Simplified Interior Design

Optimized Furniture Layout

Fits On 1.4 To 2.1 Acres

Cost Efficient Physical Structure With 88% Of Square Footage Being Revenue Producing

Value Engineered Interior Architectural Detailing With Simplified Interior Design

Optimized Furniture Layout

Fits On 1.4 To 2.1 Acres

Sleep Inn Outperforms Its Competitive Set By Delivering Superior Revpar Performance With An Economical

Development Cost

Sleep Inn Outperforms Its Competitive Set By Delivering Superior Revpar Performance With An Economical

Development Cost

BrandBrand Cost/KeyCost/Key RevPARRevPAR

Sleep InnSleep Inn $34,500$34,500 $33.33$33.33

AmeriHostAmeriHost $37,000$37,000 $32.77$32.77

MicrotelMicrotel $36,000$36,000 $26.75$26.75

Super 8Super 8 $35,000$35,000 $25.89$25.89

*Includes Hard Cost & FF&E. *Includes Hard Cost & FF&E.

Dedicated Franchise Sales & Development TeamDedicated Franchise Sales & Development Team

Pictures of Sleep Inn Franchise Sales DirectorsPictures of Sleep Inn Franchise Sales Directors