The launch of our new online sustainability system called Green Engage which assists our general managers

across our 4,000 hotels to manage hotel energy, water and waste consumption more effectively. Early trial models show that we could potentially achieve energy savings of as much as 10% to 20%. Green Engage will benefit owners who can now reduce energy costs through more efficient operating methods, IHG will benefit because it now has a common environmental reporting and management system and consumers will benefit by staying in hotels that more environmentally friendly.

The Green Engage software starts with hotels inputting their on site data. The system automatically generates reports and compares similar hotels across the world. Green Engage includes online lists for both new and current hotels showing the specific actions they need to take to reduce their energy, water and waste. Every aspect of the hotel lifecycle is covered from picking a responsible destination, selecting the correct lighting for the hotel through to selecting responsible cleaning materials and providing staff training on sustainability. The return on investment, carbon reduction and potential impact on our customers is calculated for each action item suggested. Below is an overview of these action areas.

SITE A hotels location affects commuting options, local ecosystems, building energy efficiency and much more. Proper site selection should be given appropriate consideration at the beginning of a project as it will affect many down-stream decisions. WATER Responsibilities and opportunities exist with all water that passes through a building and site. Economic and Environmental indicators favour the lowest possible manmade changes to the natural hydrological-cycle. PRODUCTS & MATERIALS Materials selected for sustainable buildings should have appropriate performance, durability and environmental properties. Material selection can affect issues ranging from our planet's resources to occupant comfort and health. WASTE Construction and demolition activities contribute significant volume to land fills and incinerators that could be avoided with proper management. Diverting this waste can reduce disposal fees and transportation consequences. BUILDING ENVELOPE The building envelope is the interface between the indoor and outdoor environments. A properly designed envelope helps to maintain the desired indoor conditions and may permit the use of natural ventilation, passive heating, and day-lighting. MECHANICAL Guest comfort, operating costs and many global environmental impacts are all dependant on a hotels mechanical systems. Optimum results are achieved when the efficient systems are chosen and designed to work in harmony with the other building systems and components.

ELECTRICAL Efficient electrical systems in a hotel offer many opportunities to reduce operating costs and capture measurable reductions to environmental impact. The most savings were achieved through improved lighting design; these also increased the enjoyment and comfort of spaces. OPERATIONS & MANAGEMENT Hotel and hospitality operations can be very resource intensive. The practices and systems set in place to improve hotel operations and maintenance are an immediate and public way to exhibit a hotels commitment to the environment and sustainability. Green Engage was developed using our designers and engineers as well as the finest in external support. It is suitable for use across all our brands and will provide a consistent platform for measuring our impacts and progress against our objective to make a night with us more carbon efficient. Green Engage follows the extensive consumer research we completed in 2008. The research showed that todays hotel guests want sustainable hotels that manage their environmental impact. As well as location, price and amenities, guests are now factoring in a hotels environmental credentials when choosing a place to stay. By utilising Green Engage, hotels will now have for the first time, a comprehensive online system which tells them what to do to be a green hotel and gives them the means to conserve and save. Green Engage does the following: Measure hotel energy, water and waste produced and their requisite carbon emissions reductions. Hotels can also benchmark themselves against other hotels. Manage the elements of their hotel that most impact the environment. These can range from insulating the hotels hot water pipes to introducing a recycling programme and switching to organic cleaning materials to appointing one of the employees as a green champion. Report on progress to date both internally and to guests and corporate clients.

ENERGY STAR Success Story: Hilton Hotels Corporation

Accountability, Action, and Awareness: the key ingredients in Hilton Hotels Corporations successful energy management strategy. In the year 2000 alone, Hilton saved nearly $2.5 million in energy costs. And, the environmental benefit of Hiltons endeavor has been the saving of nearly 43 million kWh of electricity per year and the prevention of 65 million pounds of CO2 emissions the equivalent of removing 6,450 cars from the road. With all of these accomplishments, its not a surprise that Hilton was a 2001 ENERGY STAR Award Winner. Based in Beverly Hills, California, Hilton Hotels Corporation owns and operates more than 530 hotels, and franchises another 1,500 properties in the U.S. After joining ENERGY STAR in 1996, Hilton committed all of its owned and managed properties to ENERGY STAR, placing itself among the largest ENERGY STAR partners. Hilton invested a great deal of effort developing a comprehensive energy management plan to ensure that the companys practices are best practices. With the ultimate goal of reducing the companys cost of operation, Hilton established specific energy goals, including a five percent reduction in energy use, a five percent reduction in energy costs, and a five percent increase in score on the ENERGY STAR benchmarking tool.

Accountability With a portfolio that includes 530 properties totalling nearly 160 million square feet, Hiltons corporate engineering department relies on standard operating procedures (SOPs) to ensure that all properties meet the hotels energy management goals. Hiltons SOPs include quarterly building inspections, rigorous preventative maintenance, and a purchasing policy that includes ENERGY STAR labeled products.

Each hotel creates and implements an energy management plan based on the ENERGY STAR strategy. Each quarter, corporate benchmarking reports comparing a variety of energy metrics across Hilton properties are sent to individual hotel general managers and directors. For hotels that perform poorly, Hilton identifies an independent consulting firm to conduct energy audits, and all of Hiltons properties have access to the companys Intranet site, which provides detailed best practices, case studies, and training tools. Hilton also plans to present an annual award to the property that most effectively reduces its energy costs.

Action Technical Approach Engaging the ENERGY STAR approach to energy management, Hilton has used the following tactics to successfully reduce energy costs: Installed CFLs in guestrooms, bathrooms, foyers, corridors, and elevators Installed photo sensors on exterior and landscape lighting Implemented a maintenance program to include group re-lamping Educated housekeeping staff about turning off lights and setting back air conditioners Added roof and wall insulation and/or reflective coverings Purchased ENERGY STAR labeled electronic products for guestrooms and offices Replaced older, less-efficient boilers and furnaces New Technologies Hilton continually evaluates new technologies through pilot projects. When a project is completed, information about the process and the savings is shared with all the Hilton hotels. One hotel is saving almost $270,000 per year in energy costs after the installation of digital thermostats that monitor room occupancy and automatically adjust the temperature when occupants enter (or exit) a room. Benchmarking Each quarter, Hilton sends an energy benchmarking report to all general managers and directors of Hilton-brand, owned and operated properties. The report describes the hotels performance based on a variety of metrics, including energy cost per square foot, energy cost per room, and energy cost as a percent of revenue. So far, Hilton has successfully gathered energy use date for more than 300 properties and is working with vendors to track this information via the Web to keep the data updated and make it more accessible to the properties.

ENERGY STAR Label

Hilton benchmarked its corporate headquarters building using the ENERGY STAR Benchmarking Tool and received a score of 72. After updating its data for 2001, Hilton hopes to receive the ENERGY STAR label.

Awareness To ensure that energy information reaches hotel managers across the country, each property establishes an energy management team that meets on a regualr basis to evaluate progress in achieving the hotels energy-efficiency goals and submits any best practices to the corporate office for review and dissemination to other properties. Hilton collaborated with ENERGY STAR to develop case studies and Web pages for the hotels Intranet site, which is available to 78,000 team members worldwide. With SenercommTM, Hilton created a case study outlining the cost and savings details of Hiltons programmable thermostat pilot program. Hilton also developed a case study highlighting the hotels agreement with Panasonic to purchase ENERGY STAR labeled televisions for nearly 100 Hilton Garden Inn hotel properties.

Marriott Energy Conservation Reduces Greenhouse Gases by 70,000 Tons - Equivalent to Removing 10,000 Cars From U.S. Streets As the first hotel company to proactively join the prestigious U.S. Environmental Protection Agency's (EPA) Climate Leaders Program, Marriott has set a five-year goal to reduce greenhouse gases by six percent per guest room by 2010 and launched Marriott's Retro-Commissioning (MRC) initiative last year to maximize energy in all U.S. hotels. As a result, Marriott reduced greenhouse gases in 2006 by two percent in each guest room. Today, the company has been awarded more ENERGY STAR labels than any other hotel company and has been recognized as the ENERGY STAR Partner of the Year for Excellence in Energy Management for the past two years.

Additional environmentally friendly company initiatives: * Group "Re-Lamp" campaign, which replaced 450,000 light bulbs with fluorescent lighting in 2006, saved 65 percent on overall lighting costs and energy usage in guest rooms; * Linen Reuse Program, a nationwide effort to encourage guests to reuse linens and towels during their hotel stay, saved 11 to 17 percent on hot water and sewer bills involved in laundering operations at each hotel; * Marriott's smoke-free policy in all U.S. hotels announced last year, improves indoor air quality and will result in a 30 percent reduction in energy use for air treatment systems; * Marriott's "Ozone Activated Laundry" and "Formula One Systems" can save up to 25 percent in energy used in laundry systems; * Replacement of 4,500 outdoor signs with LED and fiber optic technology yielding a 40 percent reduction in outdoor advertising use in its first year; * Installation of 400,000 new shower heads which reduces hot water usage by 10 percent each year; and

* Appointed environmental stewards -- Directors of Energy and an architect certified by the U.S. Green Building Council for Leadership in Energy & Environmental Design (LEED) -- to help oversee a variety of programs including Marriott's first LEED-certified hotel, The Inn & Conference Center by Marriott in Adelphi, Md.
"Being green is good business," said Pat Maher, senior vice president, program management and engineering, Marriott International, Inc. "It is important for the environment and saves our hotels money." Marriott's next initiative focuses on improving recycling efforts. Marriott is piloting a program to further monitor and evaluate current waste management and recycling practices. While many of Marriott's 2,800 hotels around the world adhere to the company's recycling guidelines for trash, cardboard, newspaper and glass, the goal of this new program is to streamline efforts and identify the most environmentally friendly, yet cost-efficient methods. Implementation will begin in hotels by early 2008. Marriott's commitment to the environment is longstanding. With the introduction of ECHO, Environmentally Conscious Hospitality Operations, more than a decade ago, Marriott focused on water and energy conservation, clean air, recycling, wildlife preservation and neighborhood cleanups. Marriott works in partnership with hotel owners and franchisees to implement sustainable environmental practices, which reflect the environmental interests and concerns of our guests, associates, business partners and communities.

For more "green" news and Marriott's ongoing commitment to conserve and preserve, visit the Environmental Stewardship page on marriott.com.

* Marriott calculation based on published EPA data. MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with more than 2,800 lodging properties in the United States and 67 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The Ritz-Carlton Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers and golf courses. The company is headquartered in Washington, D.C., and had approximately 143,000 employees at 2005 year-end. It is ranked as the lodging industry's most admired company and one of the best places to work for by FORTUNE(R) . The company is also a 2006 U.S. Environmental Protection Agency (EPA) ENERGY STAR(R) Partner. In fiscal year 2005, Marriott International reported sales from continuing operations of $11.6 billion.

GREEN PRACTICES
Wyndham Parc 55 Hotel San Francisco proudly participates actively in several programs dedicated to conserving environmental resources: Sensitive to the environment, Wyndham Parc 55 has been nationally recognized for its prudent energy management strategies. The Hotel has earned Energy Star designations from the U.S. Environmental Protection Agency and from the U.S. Department of Energy. Our engineering department monitors the evolving EPA standards to assure our continued compliance. The Wyndham Parc 55 has a comprehensive composting and recycling program that includes all Hotel services from the kitchen to the laundry room. The majority of Wyndham Parc 55s cleaning products are environmentally friendly, energy-saving lights have been installed throughout the Hotel, and Wyndham Parc 55 voluntarily coordinates with Pacific Gas & Electric to reduce energy usage during peak periods. Wyndham Parc 55 recently replaced all of its toilets with low-flow models that exceed Californias standards for energy efficiency and reduce the hotels water usage by 72%. Approximately 80% of our staff commute via public transportation, and the Company actively promotes both transit usage and carpooling. Waste chemicals such as lubricants and cleaning substances are routinely disposed of in an environmentally friendly manner. Bottles, cans, paper (including waste office materials, cardboard, and newspapers), batteries and fluorescent light bulbs are recycled.

 Used computer equipment is recycled by a local company, and used toner cartridges are returned either to the vendor or the manufacturer for recycling. Food waste is taken off site by a local company and composted. Used cooking oil is processed for alternative fuel. We offer a Green alternative to hotel guests, giving them the option to decline daily replacement of their bed and bath linen thereby reducing laundry volume and conserving water, electricity and cleaning chemicals. Retired and remaindered linen and room amenities are donated to charities and non-profits in our community. Recently several hundred pounds of bed linens and blankets were contributed to the Hurricane Katrina recovery efforts. For several years, our registration process has been paperless both for the convenience it affords arriving guests and the significant reduction that results in paper consumption and in records storage. Throughout our current renovation, all carpeting from guestrooms and public areas will be taken offsite and recycled. Onsite commercial laundry machines were recently retrofitted to save 35% of water usage by utilizing the final rinse water as the first wash water of the following load.

PLANET 21
With PLANET 21, Accor has made 21 commitments in favour of sustainable development. Health, nature, carbon, innovation, local development, employment and dialogue: 21 commitments for the well-being of our world. In all our hotels, we work with employees, guests and partners to reinvent hotels sustainably.

HEALTH 68% of our hotels offer eco-labeled products (cleaning products, wall paint or floor covering) 62 % of our hotels promote balanced dishes in their restaurants 77% of our hotels organize prevention training for staff NATURE 88% of our hotels fit their showers/faucets with flow regulators 64% of our hotels recycle their waste 1 340 of our hotels are taking part in the Plant for the Planet reforestation project CARBON 90% of our hotels use energy-saving bulbs for their 24-hour lighting 94% of our hotels monitor and analyze their energy consumption every month 169 of our hotels use renewable energy sources; 134 of those have thermal solar panels INNOVATION 13% of our hotels have at least three environmentally friendly features in their rooms (e.g. bedding, bath linen or paper)

LOCAL Almost 23,500 employees have been trained in combating sex tourism involving children 51% of our hotels buy and promote local food products 68% of our hotels protect local ecosystems by banning endangered seafood EMPLOYMENT 477 of our hotels organize language training for employees 531 of our hotels organize training to combat psychosocial risks DIALOGUE 569 of our hotels have received an environmental certification (ISO 14001 or EarthCheck) 283 franchised hotels meet the required standards for the Accor 21 Charter

Energy Eye, Inc. joins the Choice Hotels International Qualified Vendor Program Energy Eye is very pleased to announce our recently completed agreement with Choice Hotels International to join their Qualified Vendor program. Energy Eye President Phillip Kopp said This is an excellent opportunity for Energy Eye to enter the limited service and mid-level hotel market segment that Choice Hotels 10 brands occupy. We have considered this a very important part of the market and feel that there has been a real vacuum in terms of good choices for guestroom energy management systems to these hoteliers. We have worked very hard to offer the kind of products and services that are required to participate in a program like this.

Energy Eyes wireless energy management system offers several important advantages to this market segment over traditional EMS including: Ability to operate on PTAC and PTHP type A/C units without having to upgrade or wire in a remote thermostat. Compatibility with ANY A/C brand. Offer wireless sensors that can be installed quickly and easily without disrupting property operations. Ability for hotels to complete self installs. Superior customer service. As an added bonus Energy Eye is offering Choice Hotels franchisees a dedicated priority customer service and sales toll free hotline: 1 (866) 537 1186 and other special incentives. We look forward to helping Choice Hotels franchisees to lower their operating costs and the related environmental benefits that come with reducing electricity consumption and greenhouse gas emissions.

Starwood Targets 30% Energy Reduction

Starwood Hotels and Resorts Worldwide announced that it has set a target of reducing its energy consumption by 30 percent and reducing its water consumption by 20 percent by 2020, according to a company press release. The targets are company-wide and apply to every one of Starwoods 1,000 hotels, including those it owns, manages, and has franchised.

Starwood has experimented with green initiatives before. In 2008, the company launched its Element brand, which functions as Starwoods laboratory for testing sustainable practices. The division recently announced that it would be installing electric car charging stations at its hotels.

And the Starwood brand itself recently rolled out a set of sustainable guidelines for business meetings, from sustainable menu choices and bottled water alternatives to energy-efficient digital signage and potted plants in place of fresh-cut flowers, to be incorporated into all on-property meetings and events next year. Starwood has been working alongside Conservation International, a global environmental non-profit, to establish its environmental goals. Starwood began collecting data from all of its properties in 2007 and confirmed a baseline in 2008.

Energy Efficiency and the Environment

Best Western Plus Hotel & Suites The Okanagans Green Hotel

Greg Salloum, owner of this Kelowna hotel, is known for his commitment to a greener planet. In 2002 he had the courage and vision to invest in the future and install an extensive and advanced solar hybrid waterheating system, one of the largest in Canada, thus preventing 90 tonnes per year of greenhouse gases that would have otherwise gone into the atmosphere from burning natural gas. This solar system with 102 solar panels feed a 6000 litre solar storage tank, and was designed to heat up to 90 % of the water for the hotels 90,000 litre indoor swimming pool, 2 hot tubs and 154 guest rooms during the four summer months, while in the winter the solar heating system can cover nearly 60% of the hot water heating with an estimated saving of $30,000 per year.

Green Initiatives Undertaken by the Best Western Kelowna include:

Energy-efficient lighting on all of the exterior and throughout most of the interior of the hotel. Energy-efficient central four pipe system for heating and cooling at an expense of more than $500,000 even though the 7 year payback period was more than most business people would consider. Leadership in planning long-range is common place at the Best Western Kelowna.
Blue recycling boxes were placed in all the hotels guest rooms in 1990 before it was popular to do so. All of the hotels office paper is also recycled. Innovative silver reflective film on the windows to reduce sunlight coming in during summer while preventing the indoor heat from escaping in the winter. Instead of using chemical fertilizers, the Best Western Kelowna has the grounds crew rake Natures Gold into the lawns. This natural product gives at least two environmental benefits it replaces products that pollute the underground water table and it saves water as Natures Gold retains moisture in the soil. The 90,000 indoor pool is sanitized with mineral salt and not man made chlorine. This is a value added guest experience as there is no chemical odor and gentle on the swimming suit fabric.

Appliance and products purchasing choices also favour the environment. In late 2002, the hotel needed two large washing machines and a dryer for the laundry room. The appliances chosen use minimal water in the wash cycle and then spin at 230 G force to extract more water and therefore save drying time. Air pollution is reduced further. Those shorter drying cycles lessen the creation of greenhouse gases that would otherwise have resulted from the dryers consumption of energy. The new dryers also have a Residual Moisture Control sensor, so fabrics are dried only to the point where 6 % moisture remains, instead of baking the linens bone dry and producing lint. This creates a further cost savings as well by lessening the dryers run times and producing longer lasting linens. Additional water is saved in low-flow shower heads and sink aerators on water taps throughout the hotel. Food & Beverage Services at the hotel continue to strive for sustainability. Continuing to address solid/hazardous waste management, energy conservation, purchasing policies and water conservation will allow us to remain clear on our vision and how it relates to this department. For example, the coffee grounds are taken home for composting instead of ending up in the land fill.

The environmentally sustainable practices instituted at the hotel extends into communication and education from the hotel guest to the valuable employees. For the guests: cards are placed in guest rooms to inform guests that they could choose an environmentally-friendly practice and prevent copious amounts of hot water being used and prevent waste chemicals from going into the waste stream by choosing to reuse their towels and linens. They are instructed where to leave the items should they choose to have new towels and linens replaced daily. As this simple practice is instituted at an increasing number of other hotels, it has and will continue to save a significant amount of hot water and cleaning chemicals from being used. For the staff, The Best Western Kelowna has an Environmental Policy that is part of a New Hire orientation package requesting their participation in the hotels overall commitment to doing everything economically feasible to keep our air, water and earth safe and clean for future generations.

ECO INITIATIVES
Luxury with a conscience is not usually what springs to mind when it comes to running a five star luxury property in the Maldives. Taj Exotica Resort & Spa, however has risen to the challenge to protect the natural tropical flora and fauna and surrounding blue waters of Emboodhu Finolhu island.
Taj Exotica has applied a range of initiatives to reduce its carbon foot print, whilst ensuring that guests continue to experience a high level of comfort, luxury accommodation, culinary offerings, spa and recreational facilities, as well impeccable service - an international hallmark of the Taj group. Taj Exotica has meticulously analysed the maintenance of energy efficiency, water management, air quality and handling of noxious substances across the resort. The property is one of very few in the Maldives to have installed a unique hot water system, which instead of using electric geysers, uses three DG sets (Diesel Generator Cooking Paths) to assist in heat recovery and reduce diesel output. Taj Exotica invested in the installation of insulated pipes all around the island, pumping the water around at a constant pressure of 2kg. The result is an annual saving of 109500 litres of diesel.

In the area of water consumption, the property has activated a rain water harvesting system with the yearly collection of 896000 litres. Taj Exotica boasts a bottling plant on site. The 'Classic Crystal' tropical bottling system, produces both sparkling and still water and reuses glass bottles, thus saving on the usage of tens of thousands of plastic bottles each year. It should also be noted that the trees and plants, including Jade Tree, Sea Hibiscus and Malikuruva rose, located on Emboodhu Finolhu island, are endemic species and do not require any additional watering. This saves the resort an extra requirement of 10,000 litres of water per day. These are some of the key initiatives, that, along with the recycling of metal (which is rare in the Maldives), have resulted in a daily saving of 1,045,987 watts of energy and a 22% reduction in daily carbon dioxide emission.

The commitment of the staff to the principles of environment sustainability has been recognised and endorsed by the prestigious Green Globe Certified Silver Status - the second highest level of Green Globe's benchmarking, certification and performance improvement system in the travel and tourism industry.

In addition to the sustainable operation of the property, Taj Exotica prides itself in offering the only dive centre in the Maldives which is a PADI Project AWARE ECO Operator & Official Partner. All eco operators and official partners are selected to demonstrate a commitment to conservation, whilst providing their clients with experiences which will enhance the visitor awareness, appreciation and understanding of the environment.

Rezidor Hotels to Cut Energy Usage by 25%

Rezidor, a member of the Carlson Rezidor Hotel Group, has launched a group-wide energy-saving initiative Think Planet to reduce energy consumption 25 percent by 2016 in all Rezidor hotels across Europe, the Middle East and Africa. The group is currently in 70 countries where more than 330 hotels of the brands Radisson Blu, Park Inn by Radisson and Hotel Missoni are operated, and 100 further properties are under development. Think Planet has been developed and is driven by a specially formed, interdepartmental and cross-regional team at Rezidor, with representatives from technical services, operations, purchasing, finance, and responsible business. Think Planets first phase, a company-wide energy audit, resulted in a general energy action plan listing the groups top energy priorities.

In hotel operations, Think Planet will focus on creating smart energy habits such as switching off lights and equipment, turning heating and cooling to eco-mode, and reporting energy-related issues. The basic Think Planet tools comprise daylight and motion sensors for lighting, condensation water recuperation from air-conditioning, and alarms on freezers. Investments are being made to completely move to energy efficient lighting in all hotels, install variable extraction systems in the kitchens, and optimize building management systems and HVAC installations. According to BusinessGreen, the hotelier also will replace all its lighting in public spaces with LED bulbs by 2013. Rezidor has hired Philips to make the transition to LED as part of Think Planet. Philips will provide technical, as well as design assistance to ensure the lighting creates the appropriate hotel ambiance. In 2011, Rezidor installed LED signage in all new and refurbished hotels.