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WYNDHAM WORLDWIDE CORPORATION

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The following table sets forth the expected key metrics for each chain scale segment and associated subsegments<br />

within the U.S. for 2010 as currently defined by STR:<br />

Segment ADR Demand<br />

Change in<br />

Room<br />

Supply Occupancy ADR RevPAR<br />

Luxury Greater than $210 11.6% 3.5 % 7.8% 2.1% 10.1%<br />

Upper upscale $125 to $210 8.5% 2.0 % 6.4% (0.6)% 5.7%<br />

Upscale $95 to $125 14.2% 6.4 % 7.3% (1.5)% 5.7%<br />

Midscale with food-and-beverage $65 to $95 3.5% (0.8)% 4.4% (1.0)% 3.3%<br />

Midscale without food-and-beverage $65 to $95 9.2% 3.9 % 5.2% (0.8)% 4.3%<br />

Economy Less than $65 5.3% 0.2 % 5.1% (3.1)% 1.9%<br />

Total 7.7% 2.0 % 5.7% (0.1)% 5.6%<br />

Source: STR<br />

The European lodging industry consists of over 50,000 hotels with combined annual revenues over $117 billion,<br />

or $2.3 million per hotel. There are approximately 3.8 million guest rooms at these hotels, of which 1.6 million<br />

rooms are affiliated with a hotel chain. The Asia Pacific lodging industry consists of over 18,000 hotels with<br />

combined annual revenues of approximately $80 billion, or $4.3 million per hotel. There are approximately<br />

2.5 million guest rooms at these hotels, of which over 940,000 are affiliated with a hotel chain. The following table<br />

displays changes in the key performance metrics for the European and Asia Pacific lodging industry during 2010 as<br />

compared to 2009:<br />

Region Demand<br />

Change in<br />

Room<br />

Supply Occupancy ADR RevPAR<br />

Europe 6.4% 1.1% 5.2% (1.8)% 3.3%<br />

Asia Pacific 12.0% 2.8% 8.9% 11.4% 21.3%<br />

Source: STR<br />

Wyndham Hotel Group Overview<br />

Our lodging business, Wyndham Hotel Group, is the world’s largest hotel company (based on number of<br />

properties) with one of the industry’s largest loyalty programs, Wyndham Rewards. Over 88% of Wyndham Hotel<br />

Group’s revenues are derived from franchising activities. Wyndham Hotel Group generally does not own any hotels.<br />

Therefore, its business model is easily adaptable to changing economic environments due to low operating cost<br />

structures, which in combination with recurring fee streams yield high margins and predictable cash flows. Capital<br />

requirements are relatively low and mostly limited to technology expenditures to support core capabilities, and any<br />

incentives we may employ to generate new business, such as key money and development advance notes to assist<br />

franchisees and hotel owners in converting to one of our brands or building a new hotel branded under a Wyndham<br />

Hotel Group brand.<br />

Wyndham Hotel Group comprises the following 15 brands, with approximately 7,210 hotels representing over<br />

612,700 rooms on six continents and over 900 hotels representing approximately 102,700 rooms in the development<br />

pipeline as of December 31, 2010. Wyndham Hotel Group franchises in most segments of the industry and provides<br />

management services globally for full-service hotels. The following describes these 15 widely-known lodging<br />

brands:<br />

k Days Inn» is a leading global brand in the economy segment with more guest rooms than any other<br />

economy brand in the world with over 1,875 properties worldwide. Under its ‘A Promise As Sure As the<br />

Sun’ service culture, Days Inn hotels» offer value-conscious consumers free high-speed internet, upgraded<br />

bath amenities and the Wyndham Rewards loyalty program. Most hotels also offer free Daybreak»<br />

breakfast, restaurants and meeting rooms.<br />

k Super 8 Worldwide» is a leading global brand in the economy segment with almost 2,175 properties in<br />

the U.S., Canada and China. Super 8 has recently launched a brand refresh with new interior and exterior<br />

design programs. Under its “8 point promise” service culture, Super 8 hotels offer complimentary<br />

SuperStart» breakfast, free high speed internet access, upgraded bath amenities, free in-room coffee, kids<br />

under 17 stay free and free premium cable or satellite TV as well as the Wyndham Rewards loyalty<br />

program.<br />

k Microtel Inns & Suites» is an award winning economy chain of over 315 properties predominantly<br />

located throughout North America. For nine consecutive years, the brand has been ranked highest in<br />

5

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