It Benchmark Findings Final

Hospitality Industry IT Benchmarking Survey Results

2006April 2008

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Copyright and Disclaimer

The information in this document is proprietary and confidentialand is copyrighted by Hospitality Upgrade.

Reproduction in whole or part without written permission is prohibited. For additional reproduction rights, usage information, or to purchase reprints of this document, contact Rich Siegel at Hospitality Upgrade at 678.802.5301.

The information contained herein has been obtained from sources believed to be reliable. Hospitality Upgrade disclaims all warranties as to the accuracy, completeness or adequacy of such information.

Hospitality Upgrade shall have no liability for errors,omissions or inadequacies in the information contained herein orfor interpretations thereof.

The opinions expressed herein are subject to change without notice.

Copyright 2008 Siegel Communications, Inc. The information in this report is proprietary and confidential and may not be reproduced without written permission.

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Special Thanks

Industry CIOs/CIO Summit Attendees— This research is the product of many lively and engaging discussions

that have taken place at various CIO Summits since 2005. Thanks to all past attendees whose thoughts, ideas, commitment and participation have resulted in the formation and completion of this much needed and anticipated body of research!

Sponsors — All research efforts require significant resources, and this endeavor is

certainly no different. There are countless hours that have gone into the preparation, distribution, follow up, data collection, and reporting phases of this study. This effort would not be possible if it were not for the generous financial support of KPMG LLP and HFTP. Thank you!

The Hospitality Upgrade Staff— The task of completing the first ever Hospitality Industry IT

Benchmarking Survey was a journey, not a destination. Thanks to the staff of Hospitality Upgrade for all of their effort, both in helping make this research a success, and their daily effort in making Hospitality Upgrade a continued success.


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Hospitality Industry IT Benchmark Survey

2006

Background & Methodology

5

Familiar?


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Filling the Gap

At the 2005 CIO Summit, a survey of the 39 CIOs in attendance indicated that there was a gap in available information regarding IT spend data specific to the hospitality industry 90% of CIOs indicate that they are getting IT Spending metrics from at least one of the sources listed below, indicating a need for this type of informationOverall, CIOs indicate that the sources they are currently using are not adequate for making IT Spending comparisons within the Hospitality industry, indicating a need for better informationThe purpose of this Benchmark is to fill the identified information gap with the goal of providing an ongoing operational toolset for the industry


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Filling the GapThere appears to be a need in the industry for comparative IT Spending metrics that CIOs can use to benchmark their spending, and justify expenses to both internal and external stakeholdersCIOs express a willingness to participate in this research

— 95% report they are Likely to complete the Survey

— 76% report they are Very Likely to complete the Survey

High percentages indicate they are likely to purchase and use the research in their planning

— 89% report they are Likely to purchase the results, with 42% reporting Very Likely

— 95% indicate they are Likely to use the results in planning, with 45% reporting Very Likely

7Copyright 2008 Siegel Communications, Inc. The information in this report is proprietary and confidential and may not be reproduced without written permission.

8

Filling the Gap – Benchmark Data Uses

CIOs indicated they planned to use the research in the following ways:

73%

54%

49%

30%

3%

ID best practices& improvement

areas

Internal supportfor budget items

Preparing annualbudgets

Highlight strongperformance

Other


9

Filling the Gap – Process StepsSurvey Type Determined

— In examining the information available to the industry, a benchmarking survey looked to be the best means to fill the information gap

Initial Survey Drafted– Drawing from benchmarking best practices developed by APQC and others, a DRAFT

survey was completed

Advisory Board Convened—11 CIOs approached to participate

—7 participated in Advisory BoardJeff Winslow, Accor NAJim Lamb, Global HyattTom Peck, MGM MIRAGERichard Tudgay, Omni HotelsTodd Thompson, Starwood Hotels and ResortsMike Sutten, RCCLJane Durment, Marcus Corporation

Advisory Board Feedback IncorporatedInitial Survey Available to US Companies ONLYPerformance Monitor Engaged


10

Methodology

200 invitations were sent to North American Hospitality companies in December of 2007— Invited participants received a physical mailing that included an

introduction to the research, a worksheet for gathering data internally, and a unique user ID/password for entering data intothe online Survey instrument.

Participants provided financial information for their 2006 fiscal yearStudy participants were asked to provide more than 600 data points when answering the survey.28 companies participated in the IT Benchmark —Performance Monitor was hired to ensure participant

confidentiality and provide stewardship for this sensitive data throughout the process. Performance Monitor followed up with participants in select cases where there were questions about a particular response or lack of response.


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Methodology (cont’d)

In many cases study participants did not or could not provide data for every question.

To help the reader apply the results, an ‘n=’ value has been provided on each slide. The ‘n’ value identifies the number of study participants that answered each question.

The ‘n’ value varies from slide to slide based on the number of study participants that were able to provide data for each question.

For this iteration of the Survey, the cruise lines reported in as part of the resort segment.

This Survey is “by the industry, for the industry” so only hotel companies have been included .


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Two company types are represented in this Survey “Brand Franchisors” and “Owned/Managed”Brand Franchisors first reported system wide revenue/expense for all properties Brand Franchisors reported a second time, looking solely at the Owned/Managed portion of their businessOwned/Managed companies report revenue/expense figures for properties meeting that criteriaThe segregation by company type reduces the opportunity to double count revenue/expense dataAll responding companies further segregated select responses by segment (e.g., IT Operational Spend IT Full Service)The segment data allows us to see variations in IT approach by segment

Market Segments of Participants

5 5 5 5

Luxury Full Service Resort SelectService

Copyright 2008 Hospitality UpgradeSource: 2006 Hospitality IT Benchmark Research


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2006 Data Analysis

The results presented in the document are high level and represent trends in the industry at a macro level and across theidentified segments.

As this is year one of the Survey, no comparative trending data is available.

Year over year trends and deeper data analysis will be publishedlater this year with the 2007 Survey results.


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Hospitality Industry IT Benchmark Survey

Demographics

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Definitions

SegmentsLuxury: A hotel of superlative quality in terms of both the physical plant and services offered, and by implication, the price charged. These hotels can fall into the “Luxury” or “Upper Upscale” chain scale segments as defined by Smith Travel Research (STR) or by independent hotels meeting the same criteria. Representatives of this segment are typified by brand names such as St. Regis, Ritz-Carlton, and Waldorf=Astoria.Full Service: Those hotels meeting the two-to-three Star/Diamond classifications offered by the Mobile/AAA rating services. A hotel in this segment is able to provide a number of services to its guests outside of lodging (e.g., room service, concierge services, food and beverage, etc.). Representatives of this segment are typified by brands names such as Hilton, Marriott or Sheraton.Resort: Located in resort areas where the primary source of business is from leisure or destination travel. These entities are characterized by the number and types of services offered such as golf, spa, retail and food and beverage. Resorts can be either land-based (e.g. hotel, timeshare, vacation ownership and casino) or floating, such as a cruise ship. Resorts may be otherwise indistinguishable from Luxury or Full Service entities. Representatives of this segment are typified by brand names such as Canyon Ranch, Bellagio, and Royal Caribbean Cruise Lines.Select Service: Are characterized by facilities such as meeting rooms, nicely appointed guest rooms, limited amenities, with some special services available. May have a swimming pool and may or may not have food and beverage outlets. The segment includes extended stay properties. Representatives of the segment are typified by brand names such as Hampton Inns and Suites, Holiday Inn Express, Fairfield Inn by Marriott, Hilton Garden Inn, Courtyard by Marriott and Four Points by Sheraton.

Property Type ClassificationsOwned: Any property in which your Company holds a controlling financial interest.Managed: Any property managed for third-party owners, including those in which the Management Company holds a non-controlling financial interest.System – Wide: Applicable only to Brand Franchisors. All hotels that are owned, managed or franchised as part of the brand family.


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Company TypeBrand Franchisors were asked to provide system wide data. Brand Franchisors were also asked to break out the portion of their business that pertains only to those properties which they ‘Own / Manage’.Because only 24% of study participants provided system- wide data, system wide data is provided at a summary level. The balance of this report is based on the ‘Own / Manage’portion of all participants’businesses.

Company Type

Brand Franchisor

24%

Owned / Managed

76%Copyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 25

17

Ownership Type

Ownership Type

32%

32%

16%

12%

8%

Own Only

Own & Manage

Franchise, Own, & Manage

Manage Only

Franchise Only


n = 25

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Region

Ownership

Public40%

Private60%

Copyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Researchh

n = 25

Region Regional12%

National24%

International64%

Copyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research n = 25

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Portfolio

Number of Hotels Owned or Managed

30% 30%

22%17%

Less than10

10 - 24 25 - 99 100 or more


n = 23

Segment Distribution - Own & Manage

52%

48%

Single Segment Multiple SegmentsCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 25

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Segment Participation

Market Segments of Participants - Own & Manage

7

1214

5

Luxury Full Service Resort SelectServiceCopyright 2008 Hospitality Upgrade

Source: 2007 Hospitality IT Benchmark Research

Note: As several responding companies participate in multiple segments, the numbers represented here will be greater than the number of actual participants.

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IT Spending Overview

Capital Budget as a Percent of Revenue -Own & Manage

50%

25% 25%

Less than 0.5% 0.5% - < 1.0% 1.0% or moreCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

Operating Budget as a Percent of Revenue - Own & Manage

39%33%

28%

Less than 1% 1% - < 2% 2% or moreCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 18

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Hospitality IT Benchmark Results

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Composite Statistics

Overall LuxuryFull

Service ResortSelect

ServiceNumber of Respondents 23 7 12 14 5

Median Number of Hotels 20 16 10 6 104

Median Number of Rooms 4,973 5,881 3,262 1,617 12,118

Median Number of Hotels Supported per IT FTE 1.1 0.8 0.9 1.6 0.1

Median Number of Rooms Supported per IT FTE 281 404 291 277 1170

Median IT Operating Budget as a Percent of Revenue 1.32% 1.55% 1.29% 0.63% 1.83%

Median IT Capital Budget as a Percent of Revenue 0.51% 0.44% 0.56% 0.39% 0.69%

Median IT Operating Budget Per Room $541 $484 $511 $859 $482

Median IT Capital Budget Per Room $216 $208 $188 $667 $92Copyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

IT Benchmark Summary Statistics - Own & Manage

Note: In 2006, average IT spend for North American companies across the board was 2% according to Gartner and InformationWeek. There are wide variations among industries relative to IT spend with Banking and Financial Services coming in at 6%, Media and Entertainment coming in at 3.7 % and Distribution coming in with the lowest reported figure at 1.1%The percentage spend figures for the Resort segment appear depressed in comparison to other segments. The reason for this is the higher rates that the segment commands. The median Resort ADR for the period is $207 vs. $166 overall.

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Operating Metrics - OccupancyOccupancy Rate - Own & Manage - Overall

49%

60%

50%

40%

69% 70% 68% 68%70% 69% 67%72%

100%

74%

87%

100%

Overalln = 20

Luxuryn = 7

Full Servicen = 10

Resortn = 11

Select Servicen = 3

Low Median Mean HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

This data point intentionally left blank due to a base size smaller than n = 4.

Note: The purpose of reporting these operating statistics is to paint a picture of revenue by segment to better gauge the dollarvalue of IT spend.

The “Select Service” occupancy operating metric is left blank on this slide to prevent the number from being reverse engineered. The number of companies responding is small enough that an individual company’s figures might be identifiable.

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Operating Metrics - ADR

Average Daily Rate - Own & Manage - Overall

$51.98

$139.34$82.55

$143.82$166.28 $174.21 $151.00$207.30$196.26 $204.96

$144.99

$281.42

$480.00

$324.81

$221.00

$713.07

Overalln = 20

Luxuryn = 7

Full Servicen = 10

Resortn = 11

Select Servicen = 3




The “Select Service” ADR operating metric is left blank on this slide to prevent the number from being reverse engineered. The number of companies responding is small enough that an individual company’s figures might be identifiable.

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Operating Metrics - RevPAR

RevPAR - Own & Manage - Overall

$34.71

$99.63

$48.34 $39.47

$106.62$128.00

$102.50

$151.00$150.52 $143.80$101.60

$229.16

$485.70

$237.35$192.00

$485.70

Overalln = 18

Luxuryn = 7

Full Servicen = 10

Resortn = 9

Select Servicen = 3




The “Select Service” RevPAR operating metric is left blank on this slide to prevent the number from being reverse engineered. The number of companies responding is small enough that an individual company’s figures might be identifiable.

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Non-Corporate ITFTE per Hotel - Own & Manage - Overall

0.3 0.30.8

0.3

1.10.8 0.9

1.61.5

0.81.2

2.3

7.0

1.1

2.3

7.0

Overalln = 14

Luxuryn = 4

Full Servicen = 4

Resortn = 8

Select Servicen = 1

Low Median Average HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research


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Number of Rooms Supported per Non-Corporate ITFTE - Own & Manage

67.7 99.0160.7

62.1

281.5403.8

291.5 277.4394.4

594.2

270.9 300.1

1,470.3 1,470.3

340.0

740.0

Overalln = 14

Luxuryn = 4

Full Servicen = 4

Resortn = 8

Select Servicen = 1



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IT Operating Budget as a Percent of Revenue - Own & Manage

0.18% 0.18% 0.26% 0.18%

1.04%1.32%

1.55%1.29%

0.63%

1.83%

1.29%

1.81%

1.35%

0.80%

1.78%

2.55%

4.71%

2.58%

1.79%

2.42%

Overalln = 18

Luxuryn = 6

Full Servicen = 11

Resortn = 8

Select Servicen = 4


Note: The percentage spend figures for the Resort segment appear depressed in comparison to other segments. The reason for this is the higher rates that the segment commands. The median Resort ADR for the period is $207 vs. $166 overall.

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IT Capital Budget as a Percent of Revenue - Own & Manage - Overall

0.20% 0.22% 0.18% 0.13%

0.33%0.51% 0.44%

0.56%0.39%

0.69%0.64%0.82%

0.75%

0.47%

0.73%

1.80%

2.06%

2.34%

1.01%

1.21%

Overalln = 20

Luxuryn = 5

Full Servicen = 10

Resortn = 9

Select Servicen = 4


Note: The percentage spend figures for the Resort segment appear depressed in comparison to other segments. The reason for this is the higher rates that the segment commands. The median Resort ADR for the period is $207 vs. $166 overall.

Capital budgets represent expenditures that reoccur infrequently and are depreciated over a period of years to match their life cycle as useful assets. For example, enterprise software licenses and large mainframes may only be purchased once every five years; construction of a new data center facility may occur only once. As a result, growth rates of capital budgets are highly volatile.

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IT Operating Budget Per Room - Own & Manage - Overall

$101.24 $101.24 $127.94 $111.11 $126.76

$541.39 $483.60 $511.49

$858.56

$482.00

$722.60$831.66

$552.82

$1,014.70

$559.16

$2,569.86 $2,624.60

$1,307.51

$2,569.86

$1,432.32

Overalln = 18

Luxuryn = 6

Full Servicen = 12

Resortn = 8

Select Servicen = 5


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IT Capital Budget Per Room - Own & Manage - Overall

$68.64$135.00 $106.67 $76.92 $70.07

$216.24 $207.65 $187.50

$666.67

$92.25

$433.38$357.72 $326.36

$750.23

$294.05

$1,888.13

$826.45

$1,152.20

$1,888.13

$716.16

Overalln = 20

Luxuryn = 5

Full Servicen = 11

Resortn = 9

Select Servicen = 5


Note: Capital budgets represent expenditures that reoccur infrequently and are depreciated over a period of years to match their life cycle as useful assets. For example, enterprise software licenses and large mainframes may only be purchased once every five years; construction of a new data center facility may occur only once. As a result, growth rates of capital budgets are highly volatile.

33

IT Operating BudgetOwn & Manage

34

DefinitionsIT Operating Budget DefinitionsOperating Budget: Includes lease expense, depreciation, non-capitalized new purchases, support and maintenance fees for client computing (PCs, notebooks and laptops), enterprise computing (servers, and midrange and mainframe systems), document management (printers, scanners and plotters) and network infrastructure (hubs, routers and other network hardware). Software: Includes license charges, support and maintenance fees, subscription fees, one-time fees, and software amortization/depreciation for infrastructure software and applications. Internal IT Staff: Includes development personnel, production/operations personnel, administrative/IT management/other personnel and IT-related human resources/training/recruitment personnel. External Service Providers: Are divided into the following categories:

— Business Consulting: Consulting services are advisory services that help you assess different technology strategies and align your technology strategy with your business or process strategy.

— Business Process Outsourcing/Management (BPO/BPM): BPO/BPM services are intended to improve business operational efficiencies and transform established businesses or create new businesses by analyzing or re-engineering business processes.

— Development and Integration Services: Development services create new functionality for custom-developed or packaged applications. Development services frequently serve to integrate or link internal or external business processes. These services may include conversion applications to run on different platforms or architectures. Integration services are detailed design, implementation and management services that link applications (custom or prepackaged) to each other or with the current or planned IT.

— IT Outsourcing/Management (ITO/ITM): ITO/ITM provides day-to-day management and operation of IT assets and processes. Services include three sub-segments: application management services, help desk management services and operations services.

— Networking and Telecommunications: Includes enterprise networking equipment, mobile handsets and telecommunications services (voice, data and wireless).

Facilities: Includes costs for floor space, electricity, gas, water and rent if those costs are part of the central IT budget. Other Expenses: These expenses may include items such as travel and entertainment costs, temporary help, training, repairs and maintenance, furniture and fixtures, postage and office supplies, depreciation on non-hardware/non-software items, subscriptions and dues, costs directly charged back to business units.


35

2006 IT Operating Budget Breakout - Own & Manage - Overall

1% 3%9%

0% 2% 0% 0%

11%17%

41%

10%14%

2%5%

10%

20%

44%

4%10%

0%4%

41%35%

76%

50%

39%

8%

16%

Hardware Software InternalPersonnel

ExternalService

Providers

Networks &Telecom

Facilities Other Costs

Low Average Median HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 23

36

2006 Hardware Budget Breakout - Own & Manage

0% 0% 0% 0% 0%9%

23%19%

48%

2%0%

24%

14%

44%

0%

76%

86%80%

95%

15%

Lease Expense Depreciation Non-Capitalized NewPurchases

Support andMaintenance Fees

Other Costs


n = 15

37

2006 Software Budget Breakout - Own & Manage - Overall

0%10%

0% 0% 0% 0%

23%

51%

6% 7%12%

2%

16%

56%

1% 0% 0% 0%

86%

100%

45%

83%78%

20%

Licence Charges Support andMaintenance Fees

Subscription Fees One-Time Fees SW Amort/Depr Other SoftwareCosts

Low Average Median HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research n = 20

38

2006 Internal Personnel Budget Breakout - Own & Manage - Overall

17%

0% 0%

64%

23%

13%

67%

24%

10%

100%

70%

43%

HW/SW Tech Support Application Development Other Internal Personnel Costs

Low Average Median High


39

2006 External Service Providers Budget Breakout - Own & Manage - Overall

0% 0% 0% 0% 0% 0%

35%

13%

31%

18%

2% 1%

13%

0%

14% 10%0% 0%

100% 100% 100%

85%

30%

10%

IT Consulting BusinessConsultants

IT Outsourcing Development &Integration

Business ProcessOutsourcing

Other ExternalServices Costs



40

2006 Networks & Telecom Budget Breakout - Own & Manage - Overall

0% 0% 0% 0% 0%

49%

25%

11% 10%6%

57%

24%

5%0% 0%

93%88%

68%

100%

75%

Data Voice Wireless Outsourced Services Other RelatedNetwork Costs

Low Average Median HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research n = 20

41

2006 IT Operating Budget Detailed Breakout - Own & Manage - Overall

10%

2%

10%

3% 4%7%

0% 0%2%

4%

8%

0%4%

2% 1% 0% 1% 1% 0% 0% 1%

5%

45%

12%

57%

20%

43%

23%

15%

10%

20%

16%

21%

5%

10%12%

25%

10%

24%

12%

2%

10%

35%

10%

Central R

eserv

Revenue M

gmtPro

perty M

gmt

Event S

ales &

ExecCall C

enters

Inter/ra

/extra

-netCampaig

n Mgmt

Loyalty

Program

s

CRM

Data Ware

housing

F&ASupply

Chain

Human R

esour

ces

Training &

Learn

ing

In Room

Svcs (m

ovies)

In Room

Svcs-TV's

Wireles

sF&B POS

Other F&B Sys

Retail P

OSSec

urity S

ystem

s

Other

Median Average HighCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 20

42

IT Capital BudgetOwn & Manage

43

2006 IT Capital Budget Breakout - Own & Manage - Overall

0% 0% 3% 0% 0% 0% 0% 0%

27%

8%

29%

17%8% 5% 4% 2%

22%

4%

30%

13%

0% 0% 0% 0%

72%

40%

69%75%

97%

28%

65%

23%

ComputingEquipment

StorageEquipment

Software Networks &Telecom

ExternalService

Providers

Other CapitalBudget Items

Facilities Other Costs


n = 22


44

2006 IT Capital Budget Detailed Breakout - Own & Manage - Overall

6%

0%

12%

0% 0%

9%

0% 0% 0% 0%3%

0% 0% 0% 0% 0% 1% 0% 0% 0% 0%

10%

42% 40%35%

32%

20%

39%

25%

10%15%

30%

81%

5%8%

3%

40%

20%

30%35%

2%

60%

19%

55%

Central R

eserv

Revenue M

gmtPro

perty M

gmt

Event S

ales &

ExecCall C

enters

Inter/ra

/extra

-netCampaig

n Mgmt

Loyalty

Program

s

CRM

Data Ware

housing

F&ASupply

Chain

Human R

esour

ces

Training &

Learn

ing

In Room

Svcs (m

ovies)

In Room

Svcs-TV's

Wireles

sF&B POS

Other F&B Sys

Retail P

OSSec

urity S

ystem

s

Other


n = 20


45

Other Findings

46

Operating Budget as a Percent of Revenue - Own & Manage

39%33%

28%

Less than 1% 1% - < 2% 2% or moreCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

n = 18

47

Change in 2007 IT Operating Budget by 2006 IT Operating Spend as a Percent of Revenue

-20%

0%

20%

40%

0% 1% 2% 3%

2006 IT Operating Budget as a % Rev

% C

hang

e fo

r 20

07 IT

Ope

ratin

g B

udge

t

Avg. Change: +13.2% +10.6% +8.1%

Only includes cases with both data points

The intention of this slide is to identify patterns in where operational spending will increase moving forward.

The 15 study participants were broken into three groups based on their 2006 operational spending:

— <1% of revenue— 1% - <2% of revenue— > 2% of revenue

On average, 2007 spending increased slightly more (+13.2%) among those spending less than 1% of revenue on their IT operating budget.

Increases gradually decreased as 2006 IT operating budget increased.


48

Note: The percentages in the table above do not sum to 100% because the median values are represented. Median values are used to avoid the influence that extreme values have on mean values.

Overall Less than 1% 1% - < 2% 2% or more Number of Participants 23 6 6 4

Internal Personnel 44% 54% 41% 23%

External Service Providers 4% 2% 2% 23%

Hardware 10% 3% 10% 10%

Software 20% 16% 21% 18%

Networking & Telecom 10% 9% 11% 18%

Facilities 0% 2% 1% 0%

Other 4% 4% 3% 0%

IT Operating Budget as a Percent of Revenue


49

Overall Less than 1% 1% - < 2% 2% or more Run the Business 83% 90% 77% 80%

Grow the Business 18% 10% 23% 20%

Percentage of IT Operating Budget Dedicated to Growing the Business by IT Operating Budget as a Percent of Revenue


50

Overall Less than 1% 1% - < 2% 2% or more IT FTE Per Hotel 1.08 1.06 1.42 1.10

Number of Rooms / IT FTE 281 216 297 505

Number of IT EU / IT FTE 190 203 100 247

IT Staffing & Efficiency byIT Operating Budget as a Percent of Revenue

Note: Definitions used in this slide are: IT FTE – Number of IT Full Time Equivalents and IT EU –Number of IT End Users.


51

IT Staffing Comparison - Owned vs. Managed Properties

1.13

0.91

Owned Properties Managed PropertiesCopyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Research

52

Certifications, Methodologies, and Standards

14%

64%

50%

43%

29%

CMMI

CObIT

ITIL

PMBOK

RUP

Copyright 2008 Hospitality UpgradeSource: 2007 Hospitality IT Benchmark Researchh

53

Time to Address Identified Skills or Capabilities Gaps

4.0

12.0 11.9

26.0

Number of WeeksLow Median Average HighCopyright 2008 Hospitality Upgrade

Source: 2007 Hospitality IT Benchmark Research

54

Workforce Volatility

0% 1% 0%0%

5%7%

1%

9%

6%

14%

27%

15%

Retire Within 1 Year Newly Hired Within 1 Year Replaced Within 1 Year


55

Expenditures Per IT FTE For…

$169 $42

$743$363

$1,439

$820

$5,810

$3,571

IT-Specific Training Employee Retention Programs


Every participating company funds IT-specific

training63% of participating

companies fund employee retention programs

Appendix A – How to Read the Charts

57

Quick Review of the Data

In this example, five people answered the question. Their answers are provided on the line below…

1 2 3 4 5

Low High

Median

In the middle

Average

(1+2+3+4+5) / 5

In this case, the Average and the Median are the same.

58

How to Read the ChartsMetric Name

14%

18%20%

32%

1



n = 25

High - highest value recorded by study participants

Low - Lowest value recorded by study participants

Range – the shaded area portrays the range of values, from the lowest to the highest

Average – the average is provided for comparison to the median

Median – the data point found in the middle of the data when they are sorted low to high

Documents

It Benchmark Findings Final