Project HEADSET

Illustrative EBITDA / Multiple Impact of Future Opportunities

Adjustments / Growth Opportunities:

($ in millions)

2007E
Baseline
EBITDA
Cumulative EBITDA
EBITDA Multiple @ EV = $76.0M

7.6

LaQuinta Contract
Full Year (a)
$

0.5

International
Expansion (b)
$

Improved Agent

1.5

7.6

8.1

9.6

10.0x

9.4x

7.9x

Assumptions:
(a) $2.1 million x 22.9% EBITDA margin.
(b) $6.6 million x 22.9% EBITDA margin.
(c) EBITDA margin improving from 22.9% to 24.9%.
(d) Represents a $100 million opportunity to acquire business from Marriott, Hilton, Hyatt, etc.; Assumes winning 25% at a 22.9% EBITDA

Enterprise Value

76.0

ts / Growth Opportunities:
Improved Agent
Utilization (c)
$

0.7

Hospitality
Out. Opportunities (d)
$

5.7

10.3

16.0

7.4x

4.7x

es winning 25% at a 22.9% EBITDA margin.

LaQuinta Co
Internation Improved Ag
Hospitality Outsourcing Opportunities
2007E Baseline
LaQuinta Con
LaQuinta Contract
Internationa International Exp
Improved AgImproved Agent Ut
Hospitality Hospitality Outso
2007E Pro Form

7.6
7.6
7.6
7.6
7.6
16.0

0.5
0.5
0.5
0.5

1.5
1.5
1.5

0.7
0.7

5.7

20.0

$5.7

EBITDA

15.0

$1.5

10.0

$7.6

$0.7

$0.5

5.0

2007E Baseline
EBITDA

LaQuinta
Contract - Full
Year (a)

International
Expansion (b)

Improved Agent
Utilization (c)

Hospitality
Outsourcing
Opportunities
(d)

ng Opportunities

nt

$5.7

$16.0

Hospitality
Outsourcing
Opportunities
(d)

2007E Pro
Forma EBITDA