NYU-SCPS PR Office Contacts

• Respondents Say China has Highest Investment/Development Priority through 2010
• Upper Upscale in Urban Environments Predicted to Experience Greatest Investment Activity in Next 12 Months

NEW YORK June 5, 2006 - The positive hospitality investment climate will continue for at least the next two years (53%) and urban environments will see the greatest investment activity in the next 12 months (49%), according to a survey of senior executives attending New York University’s 28th Annual International Hospitality Industry Investment Conference, being held this week.

With 1,700 participants attending this year, the NYU Preston Robert Tisch Center for Hospitality, Tourism and Sports Management sponsored conference is the largest of its kind focused on the real estate, finance and development sectors of the hotel and travel industries.

Attracting top executives over the years, 12% of Conference attendees were Chairmen/CEOs, Presidents (10%), VPs (30%), Managing/Executive Directors (25%), Partners/Principals (12%), CFOs (5%), COOs (5%) and Owners/GMs (1%).

Over 95% of those surveyed stated that brand has significant or extremely significant impact on shareholder value.

The threat of terrorism continued to be seen as the top threat (29%) facing the global hotel industry during the next twelve months. Energy costs followed with 16%, acceleration of new construction (15%), economic slowdown with rising interest rates (10%) and labor costs and pandemics each received 7% of the vote respectively.

More than a quarter of respondents thought the biggest challenge facing the global hospitality industry through 2010 was shortage, cost and other related labor issues.

• With regard to selling hotels in the next 12 months, interestingly, 38% would not sell in the U.S. and 65% would not sell outside the U.S.
• Concerning purchasing hotels in the next 12 months, 23% would not purchase in the U.S. and 41% would not purchase outside the U.S.
• Thirty-nine percent selected Private Equity Funds as the most active buyer group in the next 12 months, followed by public and private REITS (24%), private owners (17%), opportunity funds (14%) and public owners (7%).
• The Power of Connecting and Comfy Beds...high-speed Internet access (22%), broadband wireless Internet access (21%) and upgraded bedding (21%) were winning hotel attributes when traveling for business.

One-third of these respondents characterize themselves as hotel real estate developer/investors and 24% are hotel executives. Forty percent of respondents have more than 21 years of experience within the hospitality industry.