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SEATTLE TOURISM IMPROVEMENT AREA RATEPAYER ADVISORY BOARD MEETING

October 16, 2017

Visit Seattle Offices Present: Rene Neidhart (Renaissance Seattle Hotel), Frank Finneran III (Springhill Suites Seattle Downtown), Richard Hill (W Hotel Seattle), Amanda Parsons (Thompson Seattle Hotel), and Shannon Sheron (Motif Seattle), Ben Thiele (Kimpton Palladian Hotel), Bill Weise (Silver Cloud Hotel – Seattle Stadium), and Howard Cohen (Clise Properties). Not Present: Marcus Treppenhauer (Fairmont Olympic Hotel). Visit Seattle Staff: Tom Norwalk, Ali Daniels, Kris Cromwell, Alisa Carroll, John Boesche, Patrick Smyton, and Heather Moreno. At 2:35 p.m. on October 16, 2017, the Seattle Tourism Improvement Area Ratepayers Advisory Board (“Board”) meeting was held at the offices of the Seattle King County Convention and Visitors Bureau (“Visit Seattle”). There being a quorum present, Amanda Parsons (Thompson Seattle Hotel) convened and chaired the meeting. Heather Moreno, Senior Coordinator, Sales & Marketing, of Visit Seattle, acted as recording secretary. BOARD GOVERNANCE

Amanda Parsons (Thompson Seattle Hotel) led the review and approval of the next four items of business - meeting minutes from July 17, 2017, STIA Nominating Committee approved officers and board candidates, and 2017 YTD financials. Meeting Minutes, Board Officers, Board Candidates and Financial Approvals

The Board having reviewed the July 17, 2017 minutes, all in the forms previously circulated (and attached hereto as Exhibit A), and upon a motion made by Rene Neidhart (Renaissance Seattle Hotel) and seconded by Bill Weise (Silver Cloud Hotel – Seattle Stadium) the Board unanimously adopted the following resolution:

RESOLVED, that the July 17, 2017 minutes in the form previously circulated (and attached hereto as Exhibit A) among the Board are hereby approved.

Amanda Parsons presented the STIA Board with the officers approved by the STIA Nominating Committee in September. The Chair will be Amanda Parsons (Thompson Seattle Hotel), the Vice Chair will be Bill Weise (Silver Cloud Hotel – Seattle Stadium), and the At-Large will be Richard Hill (W Seattle).

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The Board having reviewed the officers presented, and upon a motion made by Rene Neidhart (Renaissance Seattle Hotel) and seconded by Frank Finneran III (Springhill Suites Seattle Downtown) the board unanimously adopted the following resolution:

RESOLVED that the three officers presented for the 2018 Board - Amanda Parsons

(Thompson Seattle Hotel) as Chair, Bill Weise (Silver Cloud Hotel – Seattle Stadium) as Vice Chair, and Richard Hill (W Seattle) as At-Large are hereby approved.

The following three candidates were presented as board members for a 3-year term starting

on 01/01/18: Kate Elliott (The Maxwell Hotel & Hotel FIVE), John Power (Loews Hotel 1000) and Keith Buck (Embassy Suites Seattle Downtown – Pioneer Square). Tom spoke about each candidate briefly and how they would be good candidates.

The Board having reviewed three board candidates presented, and upon a motion made by

Richard Hill (W Hotel Seattle) and seconded by Bill Weise (Silver Cloud Hotel – Seattle Stadium) the board unanimously adopted the following resolution:

RESOLVED that the three board candidates presented - Kate Elliott (The Maxwell Hotel

& Hotel FIVE), John Power (Loews Hotel 1000) and Keith Buck (Embassy Suites Seattle Downtown – Pioneer Square) are hereby approved.

Kris Cromwell (Visit Seattle) provided a report on the 2017 Financials (Exhibit B)

• Collection information not updated since 9/18/17 due to our contact with the City of Seattle being on vacation. Will be getting updates this week.

• Numerous hotels are considered late. City has found that hotel may be just a little late, as opposed to several months late and they are trying to clean this up.

• Expenses are right where we expect them to be. Forecast changed slightly. Tracking where expected on target for fams, international and advertising. $8 million in expenses total is the forecast, slightly more than budget which was planned because of the Rooftops experience.

• Next few months will be lighter on expenses, until first quarter of 2018. • Fund balance is expected to be $2.2 million at end of 2017. This was taken down slightly

from last year intentionally. For next year, we need to discuss bringing fund balance up due to first quarter spend being very heavy.

• There are pre-approved expenditures in 2018 and 2019 list on the fund balance sheet. The 2019 item may go away if renovations go forward with KeyArena.

UPDATES & DISCUSSIONS Ali Daniels (Visit Seattle) had lots of updates on the Leisure campaigns that Visit Seattle has been working on:

• Fourth Marketing Roundtable last Friday o Two of the first items discussed were things we implemented because of these

meetings – specifically around the holidays o Printed holiday guide wanted again

SagaCity Media is producing this on behalf of Seattle

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Visit Seattle is purchasing ads in it to assist with distribution o Creating holiday itineraries

Options to help us compete against Bellevue o One more Marketing Roundtable in December to discuss 2018 plans o Monthly e-blast about what we are pushing through social media

• Holiday Production o Ideas came from Project Time Off o Americans are terrible at taking PTO, lots left on the table each year o Ali gave examples of three 15-second videos created to promote vacationing here o This is on top of the media plan we already have o Focused on cities that were worst at taking their PTO and where airlift makes

sense o Shannon asked about the least occupancy days during the holiday

Patrick reviewed that the 5 days around Thanksgiving, and also the last half of December

Visit Seattle will investigate if there are other ways to get in front of these low occupancy days specifically

• VisitSeattle.tv o Stats

Over 3,000 subscribers Over 23MM views Over 47MM minutes of watch time Over 560K views of The Emerald Race and 1M minutes of watch time Site traffic up 20% over same time period last year Up almost 40% of unique visitors, almost at 2M total unique visitors

o U-trip still being pushed – people spend 5 minutes on this alone o Trying to find more ways to tuck U-trip in o Around holidays, using an IP sniffer – it will pull up the amount of PTO time left

on the table in the area from which the user is using the internet. John Boesche (Visit Seattle) continued with the International / Overseas Overview

• Inbound Travel o Hosted 85 groups from all key markets (just shy of 500 clients) from 11 countries,

just shy of $24 million in earned media o Over $850,000 in-kind value from our partners o Men’s fashion magazine Daytona BROS came in – 8 pages of coverage

Learned about companies like Filson, result was 24 pages of coverage Filson just announced that they are opening a store in Tokyo

o For 2018, we looking to be more strategic in the way we navigate and plan for fams; a decrease in volume and spend, with a priority on quality clientele

• Outbound o 12 tradeshows/sales mission by the end of 2017 o Tourism Expo Japan

Brought coffee over from Anchorhead Coffee Coffee cups had our logo and QR code to get people to our website

quickly o China Mission is Oct 30 – Nov 3

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Delegation will be meeting with the likes of Ctrip, China’s largest OTA Taking Chef Josh Henderson and Steve Warner, VS Board Member and

CEO of Washington State Wine Josh and Steve will help us host VIP dinners in each city

o Australia and New Zealand in December Already lots of great response from clients to our events planned there

o First Takes Invited 5 consumers from our key markets Went all around Seattle Amazing content, will be fully translated Exploring how to activate and distribute Showed a one-minute clip Will have 10 full length episodes – two for each market This was first opportunity to create content just for International Tourism Will send out to all once ready Will live on our international websites, social, and through any paid

channels John foresees airlines as great co-op partners Discussion occurred about going back to the partners in the videos to ask

for money to extend the distribution Alisa Carroll (Visit Seattle) continued with updated on Public Relations

• Recent Coverage o Great last quarter working with our agency out of New York o 100 million media impressions – all earned media o We are being very strategic about who we approach o Agency has been around for two generations

This helps us react quickly to media inquiries o Reviewed coverage done in August and September

Included Popsugar, Fodors, Epoch Times and Forbes o NY Post came out a few weeks ago

Piece appeared in early October in print and online o Jet Set magazine also passed around – 7 pages of full color coverage

• Inbound media for Q4 o Wine & Food Media

Bay Area News Group SF Chronical / SFGate.com Calgary Herald Vancouver Sun

o All of this happens with the great support of the hotels and attractions Patrick Smyton (Visit Seattle) continued with pace updates

o Current reporting – data as of October 7 – 34 STIA hotels / 9,562 rooms o October 2017

76.1% Pace; up 5.4 pts. from 2016 or 16,007 rooms (was up 7.4 pts. in July) Highlights: Sun 10/8 – Tue 10/10 – up 10.4 pts. or 2,973 rooms – NECA in ‘17 Wed 10/11 – Fri 10/13 – down 11.8 pts. or 3,394 rooms – var. groups in ‘16

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Sat 10/21 – Mon 10/23 – up 19.4 pts. or 5,555 rooms – GSA in ‘17 Sat 10/28 – Tue 10/31 – up 29.5 pts. or 11,292 rooms – PASS in ’17 and

Seahawks game on 10/29 (1pm vs. Houston) o November 2017

41.7% Pace; down .7 pts. from 2016 or 2,008 rooms (was up 1.7 pts. in July) Highlights: Thu 11/2 – Fri 11/3 – down 10.1 pts. or 1,940 rooms – SHPE in ’16 Sun 11/5 – Wed 11/8 – up 11.9 pts. or 4,561 rooms – CoreNet Global in ‘17 Thu 11/9 – Mon 11/13 – down 14.8 pts. or 7,057 rooms – AAMC in ‘16 Tue 11/14 – Wed 11/15 – up 16.8 pts. or 3,204 rooms – BDO in ‘17 Thu 11/16 – Sun 11/19 – down 16.1 pts. or 6,168 rooms – various groups and

Seahawks game in 2016 Mon 11/20 – up 15.9 pts. or 1,520 rooms – Seahawks MNF game in ‘17

o December 2017 19.1% Pace; up 1.4 pts. from 2016 or 4,150 rooms (was up .9 pts. in July) Highlights: Sat 12/30 – Sun 12/31 – up 13.4 pts. or 2,562 rooms – Seahawks game on

12/31 and NYE (was on Sat in 2016) o January 2018

22.1% Pace; up 3.3 pts. from 2016 or rooms (was up .1 pts. in July) Highlights: Thu 1/11 – Fri 1/12 – up 9.3 pts. or 1.778 rooms – Redfin in ‘18 Sat 1/27 – Wed 1/31 – up 22.3 pts. or 10,662 rooms – Microsoft Ready in ’18 – one week earlier than in ‘17 (rooms all hit February in ’17)

o February-May 2018 High-level pace February – 17.0% Pace; down 11.3 pts. or 30,254 rooms March – 22.0% Pace; down .4 pts. or 1,186 rooms April – 18.7% Pace; down 3.5pts. or 10,040 rooms May – 26.2% Pace; up 6 pts. or 17,785 rooms

o 2017 Overview Will probably finish at 317k rooms for 2017 Record group rooms had a big impact on February 2017 finishing at about

80% occupancy, but will need to focus on this month for 2018 – including increased attention on Museum Month

o May 2018 could be the best month of the year for year over year growth based on over 50,000 WSCC group rooms

o Discussion on softest days of the year – consistently occur around Thanksgiving and the last half of December before/after Christmas

o Discussion occurred regarding the additional facility and guidelines for booking conventions now and into the future

o Smith Travel Research (STR) forecast handouts provided 4% growth RevPAR next year, which includes a 1.2% decrease in

occupancy Hyatt Regency Seattle is not included in this – it will open in late 2018 Two additional handouts – Upper Upscale and Luxury Class (and attached

hereto as Exhibit C)

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We don’t specifically consult with what the convention calendar looks like to STR, but supply increases are factored in

STR looks at how other markets have changed with supply changes STR has data back to the 1990’s, but hasn’t been doing forward-looking for

quite as long We get Bellevue as a part of monthly historical data, but not forward looking We will be getting the forecasts on a quarterly basis

o New data we are buying called airdna – pulled from Airbnb site – more to come on soon once the contract is signed.

Kris Cromwell (Visit Seattle), Tom Norwalk (Visit Seattle), John Boesche (Visit Seattle), and Ali Daniels (Visit Seattle) continued the discussion of the budget plans for 2018 (and attached hereto as Exhibit D).

• Tom Norwalk started off with a quick overview o This is a review at a high level, details not all finalized

• Reviewed 2017/2018 DMO Comp Set Budget Comparison o Shows total budget and the portion that is TIA/TID/TMD o Portland came a year after us, smaller # of rooms, but they have a percentage vs. a

flat amount per room night, so their revenue is higher o Varying budgets show one reason to continue to have conversations about

increasing the per night fee and ways to do this effectively and efficiently o 50% of our funding is convention center tax revenue – part of an agreement, but

never a for sure thing o Ideas to present to the board will be coming soon o Want to increase funding without risk – offer up new ordinance that increases the

current fee and would eliminate the original one at the same time o Need to review if a percentage is now an option or not o Ratepayers were previously more agreeable to a fee vs. a percentage as it was

easier to explain to guests o We could also include an escalator

• Kris Cromwell reviewed overall revenue o Several hotels have moved into opening at 2018 o Expecting a net zero budget o 1% year over year increase, not aggressive o Salaries and wages – same # of individuals as 2017, full year employment

anticipated o Operating – just basic items like our meetings, parking passes

• John Boesche reviewed International Tourism spend changes o Inbound – will be more strategic and proactive o China Mission – looking to do every other year format o Japan and South Korea missions being added o Retainer fee in Australia – full year for 2018 (vs. half-year in 2017)

• Tom reviewed Special Events budget line o Taste WA, Clipper, Upstream, and Rock ‘n’ Roll Marathon o Upstream – 2nd of 3-year commitment we made to launch this. Moved to June in

2018, and Friday to Sunday.

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o Last year of 3-year commitment with Rock ‘n’ Roll Marathon, which will be a little earlier in 2018. Rock ‘n’ Roll Marathon eliminated Portland and Vancouver which is

helping increase numbers here o Discussion occurred about how we can measure success for Rooftops

We paid for the media specifically View-through rates and engagement Social media promotions Working on getting measurable information

• Kris Cromwell reviewed that the last few years, we agreed to spend more than budget, but this year we are looking to have a flat budget

o First few years, we wanted to have net positive to build fund, then net zero, but revenues were stronger than anticipated so the fund grew. Then we wanted to bring that fund down a bit over the past few years.

o The challenge now is that if there is a specific item we want to be strategic about, we do not have the funds for that.

o Visit Seattle cannot support anytime that the cash reserve is not there o Discussion occurred about how new hotels don’t necessarily matter or bring in

significant additional, because occupancy will just shift o Discussion about how much revenue will come in for STIA next year

Tom Norwalk (Visit Seattle) asked if anyone had any questions on the budget and no one had any.

RESOLVED, that the budget as presented was motioned to be approved by Shannon Sheron (Motif Seattle) and seconded by Richard Hill (W Seattle). The board unanimously approved the budget. UPCOMING EVENTS Tom Norwalk next reviewed the upcoming events.

• Monday, November 6, 2017 | 3:00 – 5:00 pm STIA Ratepayers Annual Meeting – Renaissance Seattle Hotel Agenda: 2018 Workplan and Budget Approval *Quorum needed is 31 Ratepayers

Q&A/WRAP-UP

Tom Norwalk (Visit Seattle) reminded everyone of the importance of having 31 ratepayers at the annual meeting to meet quorum. No other questions were asked. There being no further business to come before the Board, the meeting was adjourned at 4:07pm.

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Respectfully submitted,

Heather Moreno, Recording Secretary

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Exhibit A

July 17, 2017 Meeting Minutes (see attached)

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Exhibit B

September 2017 YTD Financials (see attached)

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Exhibit C

STR Forecasts (see attached)

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Exhibit D

2018 Proposed Budget (see attached)

SEATTLE TOURISM IMPROVEMENT AREA RATEPAYER ADVISORY BOARD MEETING

July 17, 2017

Visit Seattle Office, Large Conference Room Present in-person: David Dolquist (Seattle Marriott Waterfront), Rene Neidhart (Renaissance Seattle Hotel), Frank Finneran III (Springhill Suites Seattle Downtown), Richard Hill (W Hotel Seattle), Bill Weise (Silver Cloud Hotel – Seattle Stadium). Marcus Treppenhauer (Fairmont Olympic Hotel), Amanda Parsons (Thompson Seattle Hotel), and Howard Cohen (Clise Properties). Not Present: Pritpal Singh (Loews Hotel 1000), Ben Thiele (Kimpton Palladian Hotel), and Shannon Sheron (Motif Seattle). Visit Seattle Staff: Tom Norwalk, Ali Daniels, Kris Cromwell, Alisa Carroll, Tamara Thorhallsson, Patrick Smyton, and Heather Moreno. At 2:30pm on July 17, 2017, the Seattle Tourism Improvement Area Ratepayers Advisory Board (“Board”) meeting was held in the Large Conference Room of the Visit Seattle Offices. There being a quorum present, David Dolquist (Seattle Marriott Waterfront) convened and chaired the meeting. Heather Moreno, Senior Coordinator, Sales & Marketing, of Visit Seattle, acted as recording secretary. BOARD GOVERNANCE

David Dolquist (Seattle Marriott Waterfront) welcomed everyone and started by reviewing the following board governance items: Meeting Minutes Approval

The Board, having reviewed the May 15, 2017 regular meeting minutes, all in the forms

previously circulated (and attached hereto as Exhibit A), and upon a motion made by Rene Neidhart (Renaissance Seattle Hotel) and seconded by Frank Finneran III (Springhill Suites Seattle Downtown), the Board unanimously adopted the following resolution:

RESOLVED, that the May 15, 2017 regular meeting minutes, all in the forms previously circulated (and attached hereto as Exhibit A), among the Board are hereby approved.

Kris Cromwell led the discussion around the 2017 year to date financials.

• Collections – quite a few outstanding hotels right now. Will work with Howard Cohen to ensure these hotels are back to being up to date.

• Forecast – about equal to last year, may be slightly more than last year given the occupancy forecast.

• Total expenses are almost exactly at budget, only change is bringing in more on the collections side.

• Howard Cohen (Clise Properties) commented on the King’s Inn – determined that there are 68 rooms, but cannot get information on the ownership. Kris recommended to move ahead with having the city attempt to collect the STIA funds.

• Fund balance – reflecting the forecast vs. the budget now. We expect $2.6 million. This is pretty tight depending on what we plan to do Q1 next year. We were within $100K of not being able to cover all expenses this year. May be better to take back up to $3 million. We want to have the extra funds, but also balance with not having too much to attract the city’s attention. There are certainly protections on this money, but we also want to be cautious. RESOLVED, that the year to date 2017 financials in the form previously circulated (and

attached hereto as Exhibit B) among the Board are hereby approved.

Last item of discussion is regarding Pritpal Singh (Loews Hotel 1000) replacement. • Pritpal moved to Los Angeles, and a new General manager has taken over at Loews Hotel

1000: John Power. We probably do want to replace Pritpal as soon as possible; he was in year one of his term.

• Possible options for replacement include: o Jerry Stotler (Moxy – opens Nov 2017) o Kathy Dooley (The Maxwell Hotel) o Sarah Junge (Hyatt Place Seattle) o John Power (Hotel 1000) o Rod Lapasin (SLS – opens Nov 2017) o Bob Peckenpaugh (The Edgewater)

• Update after the board meeting: o David Dolquist is leaving the Seattle Marriott Waterfront effective Friday, July 21

and thus is stepping down as President. David was in his third and final year of being on the board. With this additional departure from the board, we are left with nine members. The ordinance states that “the board shall consist of an odd number of members, no less than nine, no more than eleven.” Thus, the nominating committee currently consisting of Amanda Parsons (Thompson Seattle Hotel) and Rene Neidhart (Renaissance Seattle Hotel) have decided to not find any board replacements at this time. Three board members must be selected by the nominating committee for terms starting in 2018. This would cover David Dolquist and Pritpal Singh, in addition to Ben Thiele, whose term expires this year.

o With the departure of Board Chairman David Dolquist (Seattle Marriott Waterfront), Amanda Parsons (Thompson Seattle Hotel) will handle his duties in her role as Vice Chair.

UPDATES & DISCUSSIONS Ali Daniels (Visit Seattle) next provided an update on Marketing activities and leisure overview.

o Marketing Roundtable We still do this once a quarter. Great discussion including meeting planner

guides and holidays. o Holiday Season

Looking at a number of different opportunities to drive more noise and excitement, including activating the MarketFront.

Everyone knows what to do in Bellevue, but in Seattle there are so many things to do, that it’s hard to decide. Looking into option of providing several itineraries.

More people are talking about wanting a hard copy brochure about the holidays

We are still collaborating with DSA and Seattle Center. o SundanceTV Summer Opportunity Update / NYC Rooftops

First pop up party was at end of June • Brought Dude York with us • Film was called Cagefighter • Both filmmaker and star of the documentary were there • Dry Soda provided products • Sweet Iron Waffles was there with products • True Seattle evening on a rooftop in Brooklyn

July 20th event is next • 80 dozen Hama Hama Oysters • Great media and sales clients going to attend • Seattle-based film will be shown

o New Series: Turning Tables Filmed our first episode 2-3 weeks ago; first of 6 episodes Mary Lambert and Renee Erickson. Airs at the end of October.

o New Series: The Emerald Race Inspired by The Amazing Race Taking former contestants back to cities to enjoy them Some activities included Kenmore air and rapping with Ryan Lewis CBS was an incredible partner First episode will air on September 18th

o Pride Video - #seattleproud Over 1 million views Hats and buttons distributed at Pride in partnership with GSBA Q media was our partner and pushed an additional 250,000 views Loved Wins CA magazine – featured a Seattle couple

o WNBA All-Star Game Thursday: Mariners game, media reception and first pitch Friday: worked with city to have all icons light up orange

• Flag raising at Space Needle • Open practice at Chihuly Garden and Glass – Orange carpet VIP

event Saturday: All-Star Game

• Still a few tickets left for this game if anyone wants one • Storm players will likely be there to cheer them on

Room drops – Polaroid cameras to capture their visit here - with a love note from Seattle

o Analytics

Visit Seattle Site visits up 50% over last year YTD Bounce rate is going down (how quickly someone leaves your site), which

is good Just passed 20 million views (over 1 million views per month) Nearly 2,000 subscribers to our YouTube channel It’s great to see consistent numbers looking at our content even without

new content being added Rene Neidhart (Renaissance Seattle Hotel) asked about upcoming

Brazilian soccer team at CenturyLink field and whether it is creating demand. More is being researched on this.

Tamara Thorhallsson (Visit Seattle) continued with International / Overseas activity: o Australia and New Zealand

We are officially in market with the hiring of GTI Tourism. • Had the opportunity to interview them earlier this year, and see

them in action • Last month in IPW, the managing director hopped right into

meetings with Tamara • Lots of experience in consumer marketing

Average length of stay from this area of the world: 22 days 70% of travelers are repeat Year-round travelers (4 weeks of vacation per year) Biggest month of travel: December Highest per capita ratio of cruisers in the world Biggest expenditure in Seattle Auckland, Brisbane and Sydney – will have outbound mission in 2018 Also developing a partner mission for next year, more like a sales trip

o International First Takes Similar to our previous First Takes series, but all of our overseas markets

will be represented this time Filming at the end of August, ready for sharing by mid-October

o IPW Most successful ever last month in Washington, DC 8 local partners 179 appointments in 3 days Over 90% of meetings with our target markets VIP client event with the support of Kate from our team 120 of ur top clients were there Alisa Carroll (Visit Seattle) was also there with David Blandford (Visit

Seattle) and had about 40 meetings in one day Tom Norwalk (Visit Seattle) provided overview of US Travel’s

Chairman’s Circle event – 100 VIP customers from key overseas markets at National Cathedral

o Inbound 115 clients hosted in May/June CCTV 6 from China came – filmed four 20-minute episodes. Viewership

is nearly 10 million people Filmed many Seattle highlights

Finished a few media FAMs last week Editor of Marie Claire France came and is doing a 12-page article

o Tom Norwalk (Visit Seattle) then discussed data from nSight Continue to buy data from nSight Searches over 4,000 travel sites per day Can compare ourselves to other cities Wanted to see how the Trump effect is hitting us International travel has not been affected as severely as we thought it

might 2nd quarter looks a lot better

Alisa Carroll (Visit Seattle) shared some more about Public Relations: o Media Engagement

We field 1-2 dozen inquires a day from media who want to cover the destination

Want to be more strategic about who we are approaching/responding to Bravo’s The Feast featured The Nest as one of the best rooftop bar and

lounge PR agency has really helped us liaise with the right media at the right time Travel channel

• Woman who just moved here contacted us and we have built a great relationship with her

BuzzFeed • More than 45 million UMV. • A more alternative channel. • Covered Taylor shellfish. • Created a 3 minute feed.

The Travel Guys came during Taste Washington – create coverage in Canada

• Reach 1 million home in BC • Appeal to audiences 35-60 years old

o Q2 Media Missions Over 30 plus media visits

o Inbound Media for Q3 July

• Katherine Witt, Tribune Content Agency, with syndication to pubs like the Sacramento Bee (2.1 million UMV)

• Daniel Scheffler, Serious Eats, Getaway, South China Morning Post

Aug • Noah Lederman, Beer Necessities, Beer Advocate • Amber Gibson, Forbes, Departures, American Way, Hemispheres,

Four Seasons Magazine • Sharon Boorstin, LA Times

September • Matt Mosteller, Calgary Herald, National Post, Globe & Mail,

Toronto Star

• Patrick Smyton (Visit Seattle) shared the Pace Update, information about hotel development and the symposium:

o Pace Update was reviewed- Current reporting – data as of July 8 – 34 STIA hotels / 9,562 rooms from TravelClick Destination Insights July 2017

• 81.9% Pace; down .8 points from 2016 or 2,371 rooms (was down 7.1 pts. in May)

• Highlights: o Sat 7/22 – Fri 7/28 – down 7.4 pts. or 4,942 rooms –

TechReady in ‘16 o Significant mix shift from Group to Transient

Group rooms down 21,935; Transient rooms up 19,267

Group mix 27% (vs. 36% in ‘16); Transient mix 73% (vs. 64% in ‘16)

August 2017 • 53.4% Pace; down .1 points from 2016 or 296 rooms (was down .6

pts. in May) • Highlights:

o Thu 8/17 – Mon 8/21 – down 11.7 pts. or 5,594 rooms – Am Soc. Assn in ‘16

o Mon 8/28 – Thu 8/31 – down 6.3 pts. or 2,419 rooms September 2017

• 43.4% Pace; down .1 pts. from 2016 or 287 rooms (was up .8 pts. in May)

• Highlights: o Fri 9/1 – Mon 9/4 – down 5.1 pts. or 1,951 rooms - Labor

Day Weekend / PAX in both years o Mon 9/18 – Wed 9/20 – down 7.2 pts. or 2,055 rooms-

Toronto series in ’16 o Sun 9/24 – Tue 9/26 – up 7.4 pt. or 2,114 rooms – Farmers

Ins. in ‘17 October 2017

• 34.5% Pace; up 7.4 pts. from 2016 or 21,935 rooms (was up 6.1 pts. in May)

• Highlights: o Sun 10/1 – Tue 10/3 – up 16.3 pts. or 4,667 rooms – 2

groups in ’17 + Seahawks game on 10/1 (5:30pm vs. Indianapolis)

o Sat 10/7 – Tue 10/10 – up 17.8 pts. or 6,779 rooms – NECA in ‘17

o Sat 10/21 – Mon 10/23 – up 21.3 pts. or 6,120 rooms – GSA in ‘17

o Sat 10/28 – Tue 10/31 – up 17.4 pts. or 6,646 rooms – PASS in ’17 and Seahawks game on 10/29 (1pm vs. Houston)

November 2017 – February 2018 High-level pace

• November 2017– 22.4% Pace; up 1.7 pts. • December 2017 – 8.7% Pace; up .9 pts. • January 2018 – 13.5% Pace; up .1 pts. • February 2018 – 11.7% Pace; down 9.3 pts.

o Hotel Development Updates Exhibit C shows hotel development over the next year and a half

• Almost 3,000 rooms represented here • TIA is currently about 13,000 rooms – so this is a huge increase for

the market to absorb • Probably 900 rooms open by beginning of 2018

o Hotel Symposium Starting just after 8am. Carla Murray will MC the event STR presenting this year– downtown is expecting about 5% increase for

2018 Discussion about how forecast was pretty off the last few years, so it’s

hard to know what to expect this year. Discussion about latest for additional facility – probably no ground

breaking this year, probably 1st or 2nd quarter next year. Road block is permitting.

• Upcoming Events (Tom Norwalk) o Hotel Symposium – Tuesday, July 18, 7:30am – 11am o STIA Nominating Committee meeting – Monday, September 18, 2:30 – 3:30pm

To look for following year o STIA Advisory Board meeting / 2018 Budget & Workplan Review –

Monday, October 16, 2:30 – 4pm There are multiple boards that we line up to review/approve budgets, so

this meeting will be very important to attend • Howard Cohen (Clise Properties) shared that he had a booth for the Bladder Cancer

Foundation in Atlanta recently – had 1,000 Visit Seattle buttons and ran out quickly. Next year will be in Toronto.

• Discussion occurred regarding a meeting with Tim Burgess of Seattle City Council to chat about increasing the STIA fee.

o Will look at what options are available in a way to protect the original ordinance. o Determine if this is the time or not. o We would not do anything without doing a petition of the city in addition to the

consultation of this board. o Might be an option to do a secondary TIA on top of this one – convoluted, but

protected.

Q&A/WRAP-UP

There being no further business to come before the Board, the meeting was adjourned at 3:35pm.

Respectfully submitted,

Heather Moreno, Recording Secretary

Exhibit A

May 15, 2017 Meeting Minutes (see attached)

Exhibit B

Year to Date 2017 Financials (see attached)

Exhibit C

Hotel Development (see attached)

Seattle Tourism Improvement AreaVisit Seattle Revenue & Expenses 2017

Jan Feb Mar^ Apr^^ May^^^ June^^^^ July^^^^^ Aug Sept Oct Nov Dec2017 YTD

Total

2017 Budget Total

Bud to Act Variance Forecast

2016 Actuals

City Collections* 533,152 562,714 641,525 628,848 704,085 702,282 639,805 4,412,411 7,100,000 (2,687,589) 7,496,000 7,432,080 Interest earned in City account 2,101 740 600 788 585 917 1,487 7,218 23,000 (15,782) 12,200 28,002

Expenses Salaries & wages 49,349 51,358 50,212 48,590 48,590 52,221 53,165 53,165 52,707 459,357 622,122 (162,765) 639,300 502,133 Operating expenses 718 600 2,324 600 4,339 625 587 1,595 1,016 12,404 25,000 (12,596) 17,200 23,196

Marketing expenses FAMS 9,949 5,513 7,416 24 10,460 308 5,872 33,620 73,162 225,000 (151,838) 150,042 247,497 PR Firm & Press Trips 3,020 13,600 13,000 6,800 11,281 18,394 6,956 73,052 125,000 (51,948) 124,995 43,823 Client Events & Sales Missions 16,209 56,010 3,998 10,913 1,332 1,993 23 90,478 150,000 (59,522) 200,455 101,277 Special events 124,531 30,000 208,967 76,237 2,398 95 442,227 435,000 7,227 442,227 187,968 Marketing partnerships 34,735 11,553 1,703 57,695 30,370 1,827 120,037 54,699 9,553 322,171 475,000 (152,829) 500,000 735,870 Photography - 65,000 (65,000) - 33,938 Market research 29,500 45,500 31,300 7,935 114,235 113,800 435 114,235 113,740 Advertising 1,970,237 463,112 185,127 651,152 326,410 197,105 779,367 113,676 529,483 5,215,668 5,387,078 (171,410) 5,879,524 5,820,862 Marketing Opportunities Fund - - - Marketing expense total 2,017,941 496,388 348,277 853,980 624,505 293,190 922,350 194,728 579,635 - - - 6,330,993 6,975,878 (644,885) 7,411,478 7,284,975

Expenses, total 2,068,007 548,345 400,813 903,170 677,434 346,035 976,102 249,488 633,358 - - - 6,802,754 7,623,000 (820,246) 8,067,978 7,810,304

*City collections are booked to the month for which they were collected (not collection date)^As of 9.18.17; 2 Mar outstanding: HAMPTON INN HOTEL MAX

^^As of 9.18.17; 1 Apr outstanding: HOTEL 1000

^^^As of 9.18.17: 1 May outstanding: BEST WESTERN PIONEER SQ

^^^^As of 9.18.17; 2 June outstanding FOUR SEASONS THOMPSON SEATTLE

^^^^^As of 9.18.17; 3 July outstanding CROWN PLAZA FOUR SEASONS GRAND HYATT

Seattle Tourism Improvement Area DRAFT 2018 BUDGETRevenue & Expenses 2018B; 2017F; 2017B; 2016A; 2015A

Revised: 10.10.17

2018 Budget2017F to

2017B2017B to

2016B

Totals % as of 10.10.17 % Totals % Variance Totals % Variance Totals %

Revenues 7,580,000 7,496,000 7,100,000 396,000 7,418,401 77,599 7,296,967

Interest 10,000 12,200 23,000 (10,800) 28,002 (15,802) 33,257

Expenses

1 Salaries & wages 676,586 9% 639,300 9% 622,122 8% 17,178 502,133 7% 137,167 383,876 5%

2 Operating expenses 20,000 0% 17,200 0% 25,000 0% (7,800) 23,196 0% (5,996) 23,322 0%

Marketing expenses

3 Fams 125,000 2% 150,042 2% 225,000 3% (74,958) 247,497 3% (97,455) 178,839 2%

4 Client Events & Missions 150,000 2% 200,455 3% 150,000 2% 50,455 101,277 1% 99,178 143,046 2%

5 Special events 545,000 7% 442,227 6% 435,000 6% 7,227 187,968 2% 254,259 385,336 5%

6 Marketing partnerships 525,000 7% 500,000 7% 475,000 6% 25,000 735,870 10% (235,870) 267,796 4%

7 Photography 20,000 0% - 0% 65,000 1% (65,000) 33,938 0% (33,938) 85,059 1%

8 Market research 96,800 1% 114,235 2% 113,800 1% 435 113,740 1% 495 91,440 1%

9 PR projects & press trips 125,000 2% 124,995 2% 125,000 2% (5) 43,823 1% 81,172 6,039 0%

10 Advertising 5,306,614 70% 5,879,524 78% 5,387,078 69% 492,446 5,820,862 76% 58,662 6,269,008 86%

Marketing expense total 6,893,414 91% 7,411,478 99% 6,975,878 89% 435,600 7,284,975 96% 126,503 7,426,563 102%

Total Expenses 7,590,000 100% 8,067,978 108% 7,623,000 98% 444,978 7,810,304 102% 257,674 7,833,761 107%

Notes 2018 5 Taste (March) - $125,000; Clipper (April) - $150,000

1 SVP Marketing 50%; VP Tourism 50%; Art Director 100%; Upstream (June) - $190,000; Rock & Roll Marathon (June) - $80,000

Marketing Director 100%; Tourism Manager 100%; 6 In-Market Representation: China, S. Korea, Germany, Australia/New Zealand

PR Director 50%; Dir Content Strategy 50%; Staff Accountant 50% In-Market Assets: TPG, ICG, website and video creation/maintenance

Totals 5.5 FTEs; Includes all standard benefits Destination marketing and promotion across all international markets

2 Expense categories: Parking; Legal; Supplies; Computers; 7 Photo library $20,000

Cell phone; Insurance; BOD mtgs 8 Visa Vue - $17,500; Smith Travel $9,800; Tourism Economics $29,500

3 Fams: China, Japan, South Korea, UK, France, Germany, Longwoods $29,500; Air DNA $9,000; Travel Click $1,500

Australia/New Zealand and secondary markets 9 National PR agency (project basis) to expand leisure travel publicity; media

4 Missions (2): Japan/Korea and Australia/New Zealand blitzes in New York, California and other key feeder markets; media hosting

Client Events/Activations (5): ITB, IPW, Flight of Dreams (Japan), of top leisure travel journalists in Seattle

Tourism Expo Japan, WTM 10 Advertising Agency

2017 Forecast 2017 Budget 2016 Actuals 2015 Actual

Fund Balance estimate

Used for working capital

2011 2012 2013 2014 2015 2016 2017F 2018BCollections 857,899 6,686,198 6,721,693 6,979,983 7,296,967 7,418,401 7,496,000 7,580,000 Fund bal. audit adj. (104,613) Interest 71 4,300 10,342 21,831 33,257 28,002 12,200 10,000 Expenses (513,215) (5,572,477) (5,513,798) (5,936,795) (7,833,261) (7,810,304) (8,067,978) (7,590,000)

Net 344,755 1,118,020 1,218,237 1,065,019 (503,037) (468,514) (559,778) - Fund balance 1,462,775 2,681,012 3,746,031 3,242,994 2,774,480 2,214,702 2,214,702

Approved Future Year Commitments2018 - 2022

Year Amount Approved date

2018 150,000$ 3/20/2017

2019 51,000$ 11/14/2012

2020

2021

2022

Seattle Tourism Improvement Area

Commitment Details

Clipper Around the World 2017-2018 Race- Includes commission and marketing expenses- $150k is the max we would spend (spent $92k in 2016)- Race does generate room nights; no hard data as no room block- Benefits include how this is leveraged around the world, including Special Olympics games in Seattle in 2018

NCAA Basketball: 1st & 2nd RoundEvent Dates: May 22 & 24, 2019 at Key ArenaAttendance: 14,000+Estimated room nights: 11,678Economic Impact: Direct: $7.8M, Total $14.1MConcessions Breakdown:$25k - Street Pole Banners $20k - Fan Activation Event$3k - Hotel Key Cards $3k - Flags at Westlake Center

Overview - Seattle Downtown

October, 2017

Year % $ $

Actual 2012 78.2 162.95 127.49

2013 79.7 ▲ 174.36 ▲ 139.05 ▲

2014 82.2 ▲ 191.17 ▲ 157.12 ▲

2015 83.3 ▲ 204.96 ▲ 170.76 ▲ Pipeline

2016 82.8 ▼ 211.93 ▲ 175.38 ▲ Projects Rooms

Forecast 2017 83.6 ▲ 227.62 ▲ 190.24 ▲ 3 637

2018 82.0 ▼ 241.76 ▲ 198.15 ▲ 6 2,1401 2 3 4 5 6 7 8 9 10 11 12

2017 2018

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Occupancy (%) 92.9 90.7 91.9 91.0 82.0 80.1 66.6 67.8 78.7 84.9 82.8 86.8

Occupancy Percent Change 2.3 -0.9 -0.7 -1.0 -0.6 1.6 0.2 -1.4 -1.3 -1.3 -1.5 -2.8

Projected

Occupancy

vs

Historical

Range

ADR ($) 277.35 285.38 286.67 265.21 223.44 200.70 169.35 176.01 191.05 203.30 214.56 251.09

ADR Percent Change 8.5 7.5 7.3 7.7 6.9 6.4 4.4 5.4 6.4 6.1 6.6 6.5

Projected

ADR Change

vs

Historical

Range

RevPAR ($) 257.54 258.89 263.47 241.24 183.13 160.74 112.87 119.32 150.35 172.64 177.63 217.87

RevPAR Percent Change 11.0 6.6 6.6 6.7 6.3 8.1 4.6 3.9 5.0 4.7 5.1 3.5

Projected

RevPAR Change

vs

Historical

Range

Annual Performance

1.0 7.4 8.5

3.4 2.7

1.9 7.0 9.1

3.1 9.6

Next 12 Months

1.4 7.2 8.7

-0.7

The STR Custom Forecast Report is a publication of STR, Inc. and STR Global, Ltd., and is intended solely for use by paid subscribers. Reproduction or distribution of the STR Custom Forecast Report, in whole or part, without written permission is

prohibited and subject to legal action. If you have received this report and are NOT a subscriber to the STR Custom Forecast Report, please contact us immediately. Source: 2017 STR, Inc. / STR Global, Ltd. trading as “STR”.

Occupancy ADR

13.0

RevPAR

% Change % Change % Change

-1.9 6.2 4.2

40

50

60

70

80

90

100

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

(5)

-

5

10

15

20Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

(10)

(5)

-

5

10

15

20

25Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Overview - Seattle CBD - Luxury Class

October, 2017

Year % $ $

Actual 2012 77.9 197.84 154.08

2013 82.2 ▲ 206.86 ▲ 169.95 ▲

2014 83.1 ▲ 226.76 ▲ 188.47 ▲

2015 83.5 ▲ 245.49 ▲ 204.94 ▲ Pipeline

2016 78.6 ▼ 255.27 ▲ 200.70 ▼ Projects Rooms

Forecast 2017 83.0 ▲ 268.48 ▲ 222.97 ▲ 1 189

2018 83.1 ▲ 279.87 ▲ 232.46 ▲ 0 01 2 3 4 5 6 7 8 9 10 11 12

2017 2018

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Occupancy (%) 89.9 88.2 79.7 68.1 65.4 78.0 81.1 81.8 87.3 91.6 90.8 93.0

Occupancy Percent Change -1.5 9.5 3.8 1.1 -0.8 0.1 -1.9 -0.6 -0.8 0.0 0.6 1.2

Projected

Occupancy

vs

Historical

Range

ADR ($) 299.73 267.22 247.81 215.00 210.15 229.49 236.36 248.43 287.77 330.57 341.20 347.02

ADR Percent Change 3.0 6.5 7.5 4.5 3.9 5.9 3.1 4.5 3.3 2.3 4.6 6.0

Projected

ADR Change

vs

Historical

Range

RevPAR ($) 269.31 235.63 197.51 146.37 137.40 178.98 191.80 203.31 251.34 302.71 309.68 322.64

RevPAR Percent Change 1.5 16.6 11.6 5.6 3.1 6.0 1.2 3.9 2.5 2.3 5.2 7.2

Projected

RevPAR Change

vs

Historical

Range

0.0 4.2 4.3

The STR Custom Forecast Report is a publication of STR, Inc. and STR Global, Ltd., and is intended solely for use by paid subscribers. Reproduction or distribution of the STR Custom Forecast Report, in whole or part, without written permission is

prohibited and subject to legal action. If you have received this report and are NOT a subscriber to the STR Custom Forecast Report, please contact us immediately. Source: 2017 STR, Inc. / STR Global, Ltd. trading as “STR”.

Occupancy ADR

10.9

RevPAR

% Change % Change % ChangeAnnual Performance

5.6 5.2 11.1

Next 12 Months

0.4 8.3 8.7

-5.8 4.0 -2.1

5.5 4.6 10.3

1.2 9.6

40

50

60

70

80

90

100

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

(5)

-

5

10

15

20Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

(20) (15) (10)

(5) - 5

10 15 20 25 30

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Overview - Seattle CBD - Upper Upscale Class

October, 2017

Year % $ $

Actual 2012 79.1 162.53 128.54

2013 79.4 ▲ 174.55 ▲ 138.61 ▲

2014 82.6 ▲ 190.66 ▲ 157.55 ▲

2015 83.4 ▲ 202.96 ▲ 169.25 ▲ Pipeline

2016 84.4 ▲ 209.19 ▲ 176.57 ▲ Projects Rooms

Forecast 2017 84.5 ▲ 221.89 ▲ 187.48 ▲ 0 0

2018 84.5 ▲ 231.54 ▲ 195.63 ▲ 3 1,7711 2 3 4 5 6 7 8 9 10 11 12

2017 2018

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Occupancy (%) 93.3 83.5 78.3 67.5 68.4 80.8 84.9 82.6 89.4 94.0 93.9 95.8

Occupancy Percent Change -0.1 1.7 -0.8 1.1 -1.3 0.4 -1.8 -1.2 0.0 0.0 0.5 1.2

Projected

Occupancy

vs

Historical

Range

ADR ($) 250.97 221.45 205.22 160.78 175.40 192.09 199.04 210.12 243.05 273.25 274.05 284.09

ADR Percent Change 4.3 4.8 8.0 3.1 4.0 5.9 3.0 4.0 3.5 2.2 4.6 5.5

Projected

ADR Change

vs

Historical

Range

RevPAR ($) 234.04 184.82 160.72 108.52 119.94 155.12 168.99 173.54 217.31 256.80 257.39 272.13

RevPAR Percent Change 4.2 6.6 7.1 4.2 2.7 6.3 1.1 2.8 3.5 2.2 5.1 6.8

Projected

RevPAR Change

vs

Historical

Range

0.0 4.3 4.3

The STR Custom Forecast Report is a publication of STR, Inc. and STR Global, Ltd., and is intended solely for use by paid subscribers. Reproduction or distribution of the STR Custom Forecast Report, in whole or part, without written permission is

prohibited and subject to legal action. If you have received this report and are NOT a subscriber to the STR Custom Forecast Report, please contact us immediately. Source: 2017 STR, Inc. / STR Global, Ltd. trading as “STR”.

Occupancy ADR

13.7

RevPAR

% Change % Change % ChangeAnnual Performance

0.1 6.1 6.2

Next 12 Months

0.9 6.4 7.4

1.2 3.1 4.3

0.4 7.4 7.8

4.1 9.2

40

50

60

70

80

90

100

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

(5)

-

5

10

15

20Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

(10)

(5)

-

5

10

15

20

25

30Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug