Contact:  Kathleen Hurley

Phone: +1 603-431-8740 ext. 12

Email: khurley@lodgingeconometrics.com

October 2, 2008

LE’s H1 2008 Report for Europe Notes the Lodging Construction Pipeline

is at 1,022 Projects/172,249 Rooms

Pipeline Highlights at Q2

• Europe’s Total Construction Pipeline is at 1,022 projects/172,249 rooms at the end of Q2. Key Development Metrics indicate the economic slowdown and tight lending environment are eroding developer sentiment, meaning that the Pipeline has likely reached peak levels for the cycle and will be in decline moving forward.

• At the front end of the Pipeline, Under Construction totals have risen steadily for the last six quarters and appear to be at their zenith at 574 projects/94,994 rooms. These projects acquired financing before the global credit crisis crested and are expected to come online as New Hotel Openings through early 2010.

• Projects Scheduled to Start Construction in the Next 12 Months have risen to 228 projects/39,164 rooms, but are likely to stall as the availability of financing and lending terms stiffen. Early Planning declined to 220 projects/38,091 rooms, reflecting a drop in New Project Announcements into the Pipeline.

To view the entire LE Lodging Construction Report for Europe, including graphics and the Forecast for New Hotel Openings, please click here.