Lodging demand rebounds - Stock Index

During the four-week period ending Dec. 9, broad equity indices and PricewaterhouseCoopers' real-estate investment trust index experienced marginal increases; however, compared to one year ago, stocks in PricewaterhouseCoopers' lodging indices outperformed the broad equity indices. Recent economic reports have built more support for forecasts of robust growth through at least the first half of 2004. Many macroeconomists now forecast real gross domestic product growth to exceed 4 percent during the fourth quarter of 2003 and the first half of 2004. Robust economic growth has been reflected in strong lodging demand growth. Between the second quarter and the fourth quarter of 2003, lodging demand has rebounded by 5.7 percent. PWC estimates that lodging demand is poised to expand by 4.5 percent during 2004.

                                   Sept-'03   Oct-'03    Nov-'03 *

U.S. lodging industry RevPAR           2.6%      3.2%   2.0% - 4.0%
(% change, previous year)

Economic indicators                 1Q-'03    2Q-'03        3Q-'03

Real GDP (seasonally adjusted at       1.4%      3.3%          8.2%
annual rates)

Percentage change from previous    Aug-'03    Sep-'03      Oct-'03
month

Producer prices
  Total                                 0.4       0.3           0.8
  Core                                  0.1       0.0           0.5
Consumer prices
  Total                                 0.3       0.3           0.0
  Core                                  0.1       0.1           0.2
Construction                            1.0       1.3           0.9
Personal income                         0.3       0.3           0.4
Personal consumption expenditure        1.0      -0.3           0.0
Personal consumption expenditure        0.7      -0.6           0.0
  - real
Leading indicators                      0.4       0.0           0.4

* Preliminary estimate

Sources: Smith Travel Research; U. S. Department of Commerce;
U.S. Bureau of Economic Analysis; U.S. Bureau of Labor Statistics;
Macroeconomic Advisers LLC

Top Declines

f InnSuites Hospitality Trust            -36.6%
f Lodgian                                -35.9%
f Four Seasons Hotels - U.S.             -15.8%
f Interstate Hotels & Resorts            -15.1%
f Sonesta International Hotels Corp.     -13.8%

Top Advances

[eth] Vail Resorts                   25.6%
[eth] Humphrey Hospitality Trust     15.5%
[eth] Boca Resorts                    9.7%
[eth] Gaylord Entertainment Co.       8.9%
[eth] Intrawest Corp.                 7.4%

Bjorn Hanson, Ph.D., is industry leader, hospitality and leisure, for PricewaterhouseCoopers, which offers hotel consulting, forecasting and analysis services.

COPYRIGHT 2004 Advanstar Communications, Inc.
COPYRIGHT 2004 Gale Group