The following tables compare the performance of all reporting hotels in Manhattan from 2000 through 2006. Results are classified by neighborhood: Midtown West, Midtown East, Uptown, and Downtown.

Midtown West

Year	Occupied Room Nights	% Change	Available Room Nights	% Change	Occupancy	% Change	Average Rate	% Change	RevPAR	% Change
2000	7,388	��	2,294,619	��	85.1	��	$216.47	��	$184.20	��
2001	8,717	18.0	2,401,503	4.7	75.5	(11.3)	194.04	(10.4)	146.46	(20.5)
2002	9,785	12.3	2,708,909	12.8	75.8	0.5	192.33	(0.9)	145.87	(0.4)
2003	10,653	8.9	2,979,130	10.0	76.6	1.0	193.85	0.8	148.52	1.8
2004	10,961	2.9	3,378,839	13.4	84.5	10.2	220.49	13.7	186.22	25.4
2005	11,244	2.6	3,532,598	4.6	86.1	1.9	261.08	18.4	224.72	20.7
2006	11,443	1.8	3,554,996	0.6	85.1	(1.1)	290.24	11.2	247.04	9.9
Average Annual Compounded Change: 2000-2006		7.6		7.6		0.0		5.0		5.0

Source: Smith Travel Research

Midtown West has experienced a slight but steady increase in supply over the past few years. Demand leveled off in 2006, after registering strong increases in 2002, 2003, and 2004. As a result of stable demand, occupancy declined slightly in 2006. We note, however, that the capacity constraints in Midtown West limit major occupancy increases in the future, as most hotels currently operate at near-maximum-capacity levels. Midtown West is expected to experience a significant influx of supply over the next two to three years, which is expected to accommodate some of the currently unaccommodated demand in this area of Manhattan. The limited supply growth has enabled hotel operators to increase rates, causing the 2006 average rate to increase by more than 11%, to a record $290.00. Average rate in Midtown West has increased by almost $100.00 since 2002, an increase of over 50%. As a result, RevPAR recorded a strong gain of 9.9% in 2006, continuing the positive trend registered in 2004 and 2005, although at a more moderate pace.

Midtown East

Year	Occupied Room Nights	% Change	Available Room Nights	% Change	Occupancy	% Change	Average Rate	% Change	RevPAR	% Change
2000	15,318	��	4,626,295	��	82.7	��	$247.79	��	$205.04	��
2001	15,617	2.0	4,072,646	(12.0)	71.4	(13.7)	217.98	(12.0)	155.75	(24.0)
2002	15,635	0.1	4,297,279	5.5	75.3	5.4	203.75	(6.5)	153.42	(1.5)
2003	15,593	(0.3)	4,326,641	0.7	76.0	1.0	194.98	(4.3)	148.22	(3.4)
2004	15,542	(0.3)	4,644,995	7.4	81.9	7.7	218.30	12.0	178.75	20.6
2005	15,861	2.1	4,988,570	7.4	86.2	5.2	257.55	18.0	221.93	24.2
2006	15,388	(3.0)	4,855,511	(2.7)	86.5	0.3	290.31	12.7	250.97	13.1
Average Annual Compounded Change: 2000-2006		0.1		0.8		0.7		2.7		3.4

Source: Smith Travel Research

Supply in Midtown East declined by 3.0% in 2006, causing some of the previously accommodated demand to seek accommodation in another area of Manhattan. Thus, demand declined slightly, resulting in a stable occupancy in 2006. Average rate, however, rose by a strong 12.7% in 2006, causing year-end average rate in Midtown East to catch up to the Midtown West level of around $290.00. Due to a slightly higher occupancy level on the East Side in 2006, RevPAR exceeded Midtown West by a few dollars, at roundly $251.00.

Uptown

Year	Occupied Room Nights	% Change	Available Room Nights	% Change	Occupancy	% Change	Average Rate	% Change	RevPAR	% Change
2000	3,058	��	897,589	��	80.4	��	$303.29	��	$243.90	��
2001	2,944	(3.7)	759,099	(15.4)	70.6	(12.2)	267.30	(11.9)	188.83	(22.6)
2002	2,944	0.0	729,132	(3.9)	67.9	(3.9)	256.14	(4.2)	173.80	(8.0)
2003	2,944	0.0	761,769	4.5	70.9	4.5	245.32	(4.2)	173.91	0.1
2004	2,466	(16.2)	702,372	(7.8)	78.0	10.1	286.71	16.9	223.69	28.6
2005	1,873	(24.1)	538,620	(23.3)	78.8	1.0	370.92	29.4	292.31	30.7
2006	1,809	(3.4)	517,424	(3.9)	78.4	(0.5)	409.61	10.4	321.03	9.8
Average Annual Compounded Change: 2000-2006		(8.4)		(8.8)		(0.4)		5.1		4.7

Source: Smith Travel Research

Of the four neighborhoods, Uptown Manhattan was the most significantly impacted by the conversion of former luxury and upper upscale hotels to condominiums. This trend has caused supply to decrease by 1,135 rooms since 2003, or nearly 40% of the 2003 total average daily room count. Demand previously accommodated at those hotels was forced to seek accommodation elsewhere, causing occupancy to remain fairly stable in 2005 and 2006. The strong compression in this area enabled hotel operators to push average rate from roundly $245.00 in 2003 to over $400.00 in 2006, an increase of nearly 67%.

Downtown

Year	Occupied Room Nights	% Change	Available Room Nights	% Change	Occupancy	% Change	Average Rate	% Change	RevPAR	% Change
2000	2,537	��	759,931	��	82.1	��	$267.38	��	$219.44	��
2001	2,618	3.2	721,211	(5.1)	75.5	(8.0)	240.59	(10.0)	181.60	(17.2)
2002	2,741	4.7	758,034	5.1	75.8	0.4	230.12	(4.4)	174.37	(4.0)
2003	3,275	19.5	910,871	20.2	76.2	0.6	229.75	(0.2)	175.07	0.4
2004	3,505	7.0	1,048,261	15.1	81.9	7.5	250.51	9.0	205.29	17.3
2005	3,547	1.2	1,094,774	4.4	84.6	3.2	286.35	14.3	242.14	18.0
2006	3,601	1.5	1,128,797	3.1	85.9	1.5	324.90	13.5	278.99	15.2
Average Annual Compounded Change: 2000-2006		6.0		6.8		0.8		3.3		4.1

Source: Smith Travel Research

Following the reopening of certain hotels in 2003 that were partially destroyed by the September 11, 2001, terrorist attacks, Downtown Manhattan has experienced only limited growth in supply during the past two years. Demand, however, grew more strongly, causing occupancy levels to increase to nearly 86% in 2006. Average rate also recovered, registering double-digit increases in 2005 and 2006.

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