AH&LA Releases 2005 Lodging Industry Profile

Industry's Pre-Tax Profits Advance to $16.7 Billion

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. October 14, 2008

WASHINGTON, DC, November 4, 2005. As predicted by industry experts, the U.S. lodging industry has begun a return to profitability in 2004, based on the American Hotel & Lodging Association's (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2004.

According to the LIP, the lodging industry's overall profitability grossed $113.7 billion in total sales-compared to $105.3 billion in 2003. In addition, pretax profits increased to $16.7 billion, up from $12.8 billion in 2003. This increase can be attributed to a variety of sources, including the industry's ability to raise room rates due to an increase in demand from both leisure and business travelers. The LIP's other indicators - promotional spending, average occupancy rate, and revenue per available room - also point to a stronger lodging industry performance ahead.

Other facts found in the LIP:

There are 47,598 properties consisting of 4.4 million rooms.

The lodging industry directly supports more than 7.3 million jobs.

The tourism industry is currently the third largest retail industry, behind automotive and food stores. In 30 states, tourism ranks as the first, second, or third largest employer.

Tourism generated $600 billion in domestic sales.

The LIP provides a quick list of significant facts about the lodging, travel, and tourism industries, including employment impact; international travel statistics; and property and room breakdowns by location, rate, and size. A complimentary copy of the 2005 AH&LA Lodging Industry Profile is available on the AH&LA Web site, www.ahla.com. Figures for year-end 2005 will be available in mid-2006.

Information contained in the LIP is based on data provided by the American Economics Group, Inc.; D.K. Shifflet & Associates, Ltd.; Smith Travel Research; the Travel Industry Association of America; and the U.S. Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries; and the U.S. Bureau of Labor Statistics.

CONTACT: Enica R. Thompson ([email protected])

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AH&LA is a 95-year-old dual membership association of state and city partner lodging associations throughout the United States with some 10,000 members nationwide, representing more than 1.3 million guest rooms. Headquartered in Washington, D.C., it provides members with advocacy on Capitol Hill, public relations and image management, education, research and information, and other services to ensure a positive business climate for the U.S. lodging industry. Individual state associations provide representation at the state level and offer many additional cost-saving benefits.

Enica R. Lewis| Manager of Media Relations| American Hotel & Lodging Association | 1201 New York Avenue, NW, Suite 600, Washington, DC 20005 | Phone: 202.289.3153 | Fax: 202.289.3128 | www.ahla.com.