Economic activity expands

For the one-month period ending March 3, the PricewaterhouseCoopers' lodging C-Corp index increased approximately 3.6 percent, while PWC's lodging real-estate investment trust index decreased 0.2 percent. The S&P 500 increased 1.3 percent during the same period.

Reports from the Institute of Supply Management and the Federal Reserve Beige Book indicated that economic activity continued to expand in February. The ISM manufacturing activity index rose for the ninth consecutive month, while the Beige Book reported increased retail sales, improving demand for various services and improved leasing activity of commercial real-estate in some markets.

Several Federal Reserve District Banks reported improved tourism activity thus far in 2004, a trend that is consistent with year-over-year increases in lodging demand and room rates.

                                   Dec-'03   Jan-'04   Feb-'04

U.S. lodging industry RevPAR          3.6%      4.8%      5.8%
  (% change, previous year)

Percentage change from             Dec-'03   Jan-'04   Feb-'04
  previous month

University of Michigan Consumer       92.6     103.8      93.1
  Sentiment Index
Chicago Purchasing Managers           61.2      65.9      63.6
  Business Barometer Index

                                   Nov-'03   Dec-'03   Jan-'04

Manufacturers' new orders             -0.9       1.8      -0.5
Manufacturers' inventories            -0.1       0.1       0.2
Private nonresidential                 1.1       0.9      -0.5
  construction spending
Real weekly earnings                   0.8        -1       0.2
Consumer price index--all items       -0.2       0.2       0.5
Consumer price index--all items          0       0.1       0.2
  minus food & energy
Help wanted index                       39        37        38
Mass layoff events                   1,438     1,929     2,428

Sources:  Bureau of Economic Analysis, U.S. Department of Labor,
Smith Travel Research, International Council of Shopping Centers,
Institute for Supply Management, University of Michigan, National
Association of Purchasing Management, U.S. Census Bureau, Bureau
of Labor Statistics

Top Declines

* Wyndham International                 -16.7%
* InnSuites Hospitality Trust           -15.1%
* FelCor Lodging Trust                   -9.5%
* Arlington Hospitality                  -8.8%
* MeriStar Hospitality Corp.             -7.6%

Top Advances

* Choice Hotels International            17.1%
* Orient Express Hotels Ltd.             12.2%
* John Q. Hammons Hotels                 11.6%
* Logdian                                11.4%
* Starwood Hotels & Resorts Worldwide    10.0%

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

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