J.D. Power and Associates Reports: Declines in Satisfaction Among Guests in Upper Upscale, Upscale and Mid-Scale Hotel Properties in Europe are Masked by Increased Satisfaction With Costs and Fees

Movenpick Hotels & Resorts; Premier Inn; Scandic; and Steigenberger Hotels and Resorts Each Rank Highest in Customer Satisfaction among Hotel Guests in Europe

WESTLAKE VILLAGE, California, October 21, 2010 - While overall satisfaction among European hotel guests appears to have
remained stable after achieving a five-year high in 2009, when the benefit of
lower guest room rates is removed, satisfaction with the rest of the guest
experience has declined notably, according to the J.D. Power and Associates
2010 European Hotel Guest Satisfaction Index Study(SM) released today. While
these declines occur in three of four hotel segments included in the study,
satisfaction in the economy segment has increased.

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The study, now in its sixth year, examines the overall satisfaction of
European hotel guests based on seven measures (in order of importance): guest
room; costs and fees; hotel facilities; check-in/check-out; food and
beverage; hotel services; and reservations. Thirty-six hotel brands are
measured and ranked in four segments(1): upper upscale, upscale, mid-scale
full service and economy.

Overall satisfaction across the industry remains flat in 2010, averaging
745 on a 1,000-point scale, compared with 746 in 2009. In three of the four
segments-upper upscale, upscale and mid-scale full-service-satisfaction has
declined in all measures except cost and fees. Throughout the economic
downturn, many hoteliers reduced operational costs amid declining demand and
lower rates. After overall satisfaction peaked to a five-year high in 2009,
reductions in areas such as hotel staffing and services and deferred
investments in facilities have manifested in lower satisfaction scores in
these areas in 2010. The economy segment, however, has demonstrated
improvement in the areas of guest room; facilities and services; and costs
and fees.

"When the industry begins to recover and occupancy and room rates
increase, the positive halo effect from lower costs and fees will wear off
and reveal deficiencies in services and facilities even more starkly," said
Stuart Greif, vice president and general manager of the global travel and
hospitality practice at J.D. Power and Associates. "It will be critically
important for hoteliers to make catch-up investments to improve the guest
experience as the market improves. Understandably, hoteliers will want to
hold off on increasing costs until absolutely necessary. Those hoteliers that
best manage the balance stand to benefit, while those that do not respond
quickly enough risk losing more than the satisfaction of their guests-they
risk losing guests to competitors."

Upper Upscale Segment

Steigenberger Hotels and Resorts ranks highest in the upper upscale
segment for a third consecutive year, performing particularly well in six of
the seven measures that drive overall satisfaction: check in/check out; guest
room; hotel facilities; food and beverage; hotel services; and costs and
fees. Maritim Hotels and Sheraton Hotels & Resorts, respectively, follow in
the segment rankings. Maritim Hotels performs particularly well in the
reservations measure.

Upscale Segment

Among upscale hotel brands, Movenpick Hotels & Resorts ranks highest in
guest satisfaction for a second consecutive year and performs particularly
well in five of the seven measures: check-in/check-out; guest room; food and
beverage; hotel services; and hotel facilities. Following in the segment
rankings are Crowne Plaza Hotels & Resorts and Iberostar Hotels & Resorts,
respectively. Crowne Plaza Hotels & Resorts performs particularly well in the
reservations measure, while Iberostar Hotels & Resorts performs well in the
cost and fees measure.

Mid-Scale Full Service Segment

Improving from seventh rank position in 2009, Scandic ranks highest in
guest satisfaction in the mid-scale full service segment. Scandic performs
particularly well in two measures: check-in/check-out and hotel services.
Best Western and Park Inn follow in the segment rankings, in a tie. Best
Western performs particularly well in the food and beverage measure, while
Park Inn performs well in the cost and fees measure.

Economy Segment

In the economy segment, Premier Inn ranks highest for a third consecutive
year and performs particularly well in six of the seven measures:
reservations; check-in/check-out; guest room; food and beverage; hotel
facilities; and costs and fees. B&B Hotels and Comfort Inn, respectively,
follow in the segment rankings. B&B Hotels performs particularly well in the
reservations and hotel services measures.

The study finds that the availability of Internet service at hotel
properties has become increasingly important to guest loyalty and advocacy
rates. Hotel guest usage of Internet services has more than doubled during
the past five years, from 17 percent in 2005 to 36 percent in 2010. When
guests experience a problem with the Internet connection at their hotel,
their likelihood to return to the property and to recommend the brand to
others decline by approximately one-half, on average.

"Hotel guests expect Internet connections to be a staple of their hotel
room-just as they would expect toiletries, a television and hot water," said
Mark Schwartz, director of the global hospitality and travel practice at J.D.
Power and Associates. "Hoteliers that are unable to reliably deliver this
service risk losing business."

The study also includes the following key findings:

    - Among hotel guests who pay extra for Internet connectivity,
      satisfaction with cost and fees averages nearly 40 points lower than
      among customers for whom Internet service was included with their room
      rate.
    - When hotel guests have positive interactions with hotel staff,
      each interaction increases overall satisfaction by 27 points, on
      average. In addition, each positive staff interaction increases
      customer advocacy and loyalty rates by an average of seven percentage
      points.
    - Guests of luxury hotel properties have the highest rates of hotel
      staff interaction, averaging three interactions per stay. In contrast,
      guests of economy hotels experience 1.4 interactions per stay, on
      average.

The 2010 European Hotel Guest Satisfaction Index Study is based on
responses from more than 14,000 guests who stayed at a hotel in Europe
between July and September 2010. The study was fielded between August and
September 2010.

    Upper Upscale Segment Overall Satisfaction Index
    (Based on a 1,000-point scale)

                                         Index     JDPower.com Power Circle
    Hotel                                score      Ratings For Consumers
    -----                                -----     ------------------------

    Steigenberger Hotels and Resorts      826              5

    Maritim Hotels                        801              4
    Sheraton Hotels & Resorts             793              4

    Radisson BLU Hotels & Resorts         788              3
    Upper Upscale Segment Average         787              3
    Riu Hotels & Resorts                  786              3
    Hilton Hotels & Resorts               779              3

    Marriott Hotels & Resorts             775              2
    Le Meridien Hotels and Resorts        772              2

    Included in the study but not ranked due to small sample size are:
    Hyatt Hotels & Resorts, Kempinski Hotels, Renaissance Hotels &
    Resorts, Sofitel Luxury Hotels, Swissotel Hotels & Resorts and
    Westin Hotels & Resorts.

    Upscale Segment Overall Satisfaction Index
    (Based on a 1,000-point scale)

                                      Index      JDPower.com Power Circle
    Hotel                             score       Ratings For Consumers
    -----                             -----      ------------------------

    Movenpick Hotels & Resorts          774              5

    Crowne Plaza Hotels & Resorts       762              4
    Iberostar Hotels & Resorts          759              4
    Novotel Hotels                      757              4
    Mercure                             752              4
    Melia Hotels & Resorts              749              4

    Upscale Segment Average             741              3

    nH Hoteles                          725              2
    AC Hotels                           723              2
    Hesperia                            720              2
    Husa Hoteles                        707              2

    Included in the study but not ranked due to small sample size are:
    Courtyard, De Vere Hotels & Resorts, Four Points by Sheraton, Hilton
    Garden Inn, Hoteles Silken and Thistle.

    Mid-Scale Full Service Segment Overall Satisfaction Index
    (Based on a 1,000-point scale)

                                       Index     JDPower.com Power Circle
    Hotel                              score      Ratings For Consumers
    -----                              -----     -----------------------

    Scandic                              756              5
    Best Western                         754              5
    Park Inn                             754              5
    Holiday Inn                          753              5

    Express by Holiday Inn               752              4
    Clarion                              750              4
    Ramada Hotels                        748              4

    Barcelo Hotels & Resorts             744              3
    Mid-Scale Full Service Segment
     Average                             743              3
    Sol Hotels                           736              3

    Ibis Hotel                           730              2
    Campanile Hotel                      720              2
    TRYP Hotels                          720              2

    Included in the study but not ranked due to small sample size are:
    Balladins; Dorint Hotels & Resorts; Golden Tulip Hotels; Inns &
    Resorts; NH Jolly; Park Plaza Hotels & Resorts; and Quality.

    Economy Segment Overall Satisfaction Index
    (Based on a 1,000-point scale)

                                       Index     JDPower.com Power Circle
    Hotel                              score      Ratings For Consumers
    -----                              -----     -----------------------

    Premier Inn                          766                 5

    B&B Hotels                           731                 4
    Comfort Inn                          729                 4

    Economy Segment Average              707                 3
    Travelodge                           698                 3
    Etap Hotel                           695                 3

    Hotel Formule 1                      661                 2

    Included in the study but not ranked due to small sample size are:
    Days Inn/Days Hotels and Tulip Inns.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement, Web
intelligence and customer satisfaction. The company's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on travel ratings, please visit JDPower.com.
Also available are car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more. J.D. Power and Associates is a business unit of
The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global
information and education company providing knowledge, insights and analysis
in the financial, education and business information sectors through leading
brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D.
Power and Associates. The Corporation has more than 280 offices in 40
countries. Sales in 2009 were US$5.95 billion. Additional information is
available at www.mcgraw-hill.com/.

(1) Luxury hotel brands are also included in the study, but are not
ranked due to insufficient number of award-eligible brands.

    J.D. Power and Associates Media Relations Contacts:

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    +44-1483-207609; gordon.shields@jdpa.com

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    +1-248-312-4119; media.relations@jdpa.com

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    +1-805-418-8103; media.relations@jdpa.com

Gordon Shields; Guildford, Surrey, UK, +44-1483-207609; gordon.shields at jdpa.com, or John Tews, Troy, Mich., USA, +1-248-312-4119, media.relations at jdpa.com, or Syvetril Perryman; Westlake Village, Calif., USA; +1-805-418-8103; media.relations at jdpa.com, all of J.D. Power and Associates