Market Data – Resort Capital Partners

Caribbean is the most tourism dependent region in the world
Gross tourism revenues greater than 33% of exports
Estimated tourism employment at 2mm and more than 50% of labor force in some areas
3,000 properties and more than 300,000 hotel rooms with 80% of inventory independent assets
Tourism is the primary foreign exchange earner exceeding traditional production sectors
Estimated arrivals at near 23mm via air in 2010 (equivalent to 23mm in 2007)
U.S. consumers make up close to 12mm visitors versus just under 5mm from Europe
Cruise Arrivals at 20mm in 2010 up from 1mm in 1970
Total tourism spending at more than $22 billion in 2010 (down from $27 Billion in 2007)
More than $5 billion in capital investment in 2010
Positive Long Term Fundamentals
Proximity to United States
Introduction of Low Cost Carriers
Regional Stimulus Packages
Relative value of vacation versus Asia and Europe
Perception of Caribbean as safe and stable region

Lodging brands changing or revising their business model
Original focus on generating income through operating fees
Recent focus on licensed use of brands in residential context in exchange for future share of real estate sales
Expansion of hotel operator functions
Extending beyond hotel to include rental of resort residences and management of other operating components at project including food and beverage, spa, golf club and marina.
Investors primarily focused on luxury properties and distressed asset deal
New interest in all inclusive resorts due to value proposition for consumer
Customers and operators predominantly targeting all-inclusive and upscale properties
Luxury Competitive Set at $400 ADR with 60% Occupancy and close to $250 RevPAR in 2010
Numbers in 2011 are up 10% to 20% depending on property and jurisdiction
Total Competitive Set at $200 ADR with 70% Occupancy and close to $150 RevPAR in 2010
Numbers in 2011 are up 5% to 10% depending on property and jurisdiction

In 2007, there were over 40 million American households comprised of individuals 50 and older who owned their main residence, of which 15 percent, or 6.6 million households also owned a vacation home
Most vacation homeowners either inherited their homes or purchased them with cash. Vacation home mortgage originations comprised less than 5 percent of overall mortgage market originations. In aggregate, there is more than $125 billion in outstanding mortgage debt on vacation homes
Most vacation homeowners make limited use of their homes with 50% of consumers spending 2 weeks or less and slightly more than 65% spending 4 weeks or less per year in their home
High net worth individuals invest in vacation homes which can potentially deliver a positive return on their investment through both rental income and capital appreciation, as well as give them a second home option when they go on vacation to a popular resort destination
The US State Department estimates that between 600,000 to 1,000,000 US Citizens live in Mexico, up from 200,000 ten years ago
Seventy six million US Baby Boomers are expected to retire within the next 20 years according to AARP