Survey Results

O8A.ORG

Owners 8 Association

Survey Results

DISCLAIMER: The opinions and comments of individual franchisees expressed herein are solely the opinions of those individual franchisees and do not necessarily state or reflect the opinions of the Owners 8 Association or its attorneys. The information in this website is the sole property of the Owners 8 Association and any duplication or reprint cannot be made without the consent of Owners 8 Association.

November 28, 2010

Here are the results of the latest survey which had questions about Softhotels and Wyndham Rewards Bill (Results also attached in pdf format).

282 of our members responded to the survey which is a typical number of respondents for this type of survey.

9 out of 10 members have installed Softhotels at their hotels and 78% of those members are not satisfied with Softhotels. 56% of these members still prefer HSSover any other PMS system.

86% of those responding have experienced a DECLINE in revenue this year.

99% of those responding have had their Wyndham Rewards monthly bill INCREASEthis year.

The average Wyndham Rewards bill increased by 20% this year while many experienced increases in their bill that were upwards of 40% during a period where revenue had typically declined at most hotels.

During this same period 65% of respondents HAD NOT EXPERIENCED AN INCREASE IN DEMAND OR USAGE of Wyndham Rewards Points at the property level. Obviously, WHG will state that the program has greater acceptance by the travelling public which results in higher usage of the progam and thus higher fees. However, the fact that demand and usage at the property level for Wyndham Rewards has not increased and this counters that argument.

Almost 85% of respondents do not see any increased value from the Wyndham Rewards program and felt that it has not affected their revenues in a positive manner.

55% of those taking the survey still DO NOT UNDERSTAND how PRO ACTIVE MATCHING INCREASES THEIR WYNDHAM REWARDS BILLING.

For those who are unaware of Pro active matching and how it works:

Pro Active Matching is an automatic method that is utilized by franchisors such as WHG to award frequent stay points to their guests. The guest DOES NOT have to present their membership card during their stay at your hotel or even request that the Guest Service Rep. look up the frequency membership number. Points are AUTOMATICALLY charged to the franchisee as WHG utilizes address matching or another form of verification to award points to members.

What is extremely concerning is that many of the members in Wyndham Rewards were automatically enrolled and are unaware of their membership in the program thus defeating the purpose of a frequency program. We continue to pay 5% in feees towards these Pro Actively matched stays while WHG still has not disclosed any redemption rates of Wyndham Rewards points. Now that there are almost 8 Million members in Wyndham Rewards, we believe that points should be assigned only to those guests requesting them and this would allow us to gauge the effectiveness of the program. Further, it would allow us as operators to ensure that the program works to its fullest abilities which will result in a successful program. The process currently utilized that auto assigns points has been undertaken in a deceptive manner for several years now with no concrete proof to the effectiveness of the program.

SURVEY RESULTS BELOW:

1. Have you installed Softhotels Property Management System at your hotel?

Response

Percent

Yes

89.00%

11.00%

2. Are you satisfied with your Softhotels Property Management System?

Percent

Yes

22.20%

77.80%

3. Which Property Management System did you prefer using?

Percent

Softhotels

15.4%

HSS

56.0%

MSI

4.4%

Brilliant

3.3%

Other

20.9%

4. Has your hotel revenue increased in 2010?

Percent

Yes

14.60%

85.40%

5. If you installed Softhotels, has yourWydham Rewards Bill Increased or decreased?

Percent

Increased

98.90%

Decreased

1.10%

6. If your Wyndham Rewards Bill increased, then what percentage did it increase?

Percent

10%

14.3%

20%

34.1%

30%

16.5%

40%

13.2%

>40%

9.9%

Not Applicable

12.1%

7. If your Wyndham Rewards Bill decreased, then what percentage?

Percent

-10%

0.00%

-20%

0.00%

-30%

0.00%

-40%

0.00%

>-40%

0.00%

Not Applicable

100.00%

8. Has your hotel experienced an increase in usage and demand for Wyndham Rewards Points from your guests in 2010?

Percent

Yes

35.10%

64.90%

9. Wyndham Rewards has positively affected my hotel revenue in 2010?

Percent

Agree

15.80%

Disagree

84.20%

10. Do you understand how Pro-Active Matching impacts your Wyndham Rewards Bill?

Percent

Yes

45.40%

54.60%

December 20, 2009

Survey Results from our latest survey below:

What PMS system do you currently have?
Answer Options	Response Percent	Response Count
HSS	40.8%	89
MSI	9.6%	21
Softhotel	33.9%	74
Opera	1.4%	3
Other	14.2%	31
answered question		218
skipped question		2

Are you planning to upgrade your software?
Answer Options	Response Percent	Response Count
YES	3.7%	8
YES- Only as the Franchise is Insisting	34.7%	75
No	50.5%	109
Not Sure	11.1%	24
answered question		216
skipped question		4

what amount of money do you consider a reasonable amount for an upgrade?
Answer Options	Response Percent	Response Count
Less than 1000	31.0%	65
Between 1000 and 2500	35.7%	75
Between 2500 and 5000	27.1%	57
Between 5000 and 10000	4.3%	9
Between 10000 and 15000	1.9%	4
Greater than 15000	0.0%	0
answered question		210
skipped question		10

Are you currently satisfied with the PMS system that you have?
Answer Options	Response Percent	Response Count
YES	66.8%	145
NO	33.2%	72
answered question		217
skipped question		3

Do you think wyndham rewards is a valuable marketing tool for your property?
Answer Options	Response Percent	Response Count
Very Valuable	5.5%	12
Valuable	22.3%	49
Not Very Valuable	39.5%	87
Not at all Valuable	32.7%	72
answered question		220
skipped question		0

How likely are you to leave the franchise if there were no liquidation damages?
Answer Options	Response Percent	Response Count
Very Likely	45.0%	99
Some What Likely	25.5%	56
Unlikely	19.5%	43
Very Unlikely	10.0%	22
answered question		220
skipped question		0

How likely are you to renew your franchise agreement with Wyndham Worldwide, if and when it expires?
Answer Options	Response Percent	Response Count
Very Likely	6.0%	13
Somewhat Likely	26.0%	56
Unlikely	25.6%	55
Very Unlikely	42.3%	91
answered question		215
skipped question		5

Do you agree with the Customer service fines and QA inspection fines by franchise?
Answer Options	Response Percent	Response Count
Strongly Agree	3.2%	7
Agree	12.0%	26
Disagree	27.3%	59
Strongly Disagree	57.4%	124
answered question		216
skipped question		4

How satisfied are you with your Franchise Advisory Board?
Answer Options	Response Percent	Response Count
Very Satisfied	2.8%	6
Satisfied	14.7%	32
Unsatisfied	40.6%	88
Very Unsatisfied	41.9%	91
answered question		217
skipped question		3

Do you agree that franchise should receive money from approved vendors in the form of commission?
Answer Options	Response Percent	Response Count
Strongly Agree	7.8%	17
Agree	7.4%	16
Disagree	16.1%	35
Strongly Disagree	68.7%	149
answered question		217
skipped question		3

O8A Member Survey conducted between August 1, 2008 - September 10, 2008

267 membes responding to survey within 6 weeks. Results listed below:

Do you feel that the presence

of O8A has positively affected

YES

your business?

88.60%

11.40%

Do you feel that the Brand

Appointed FAB effectively

YES

represent your concerns?

16.70%

83.30%

Not Significant

Significant

Very Significant

No Opinion

SoftHotels

15.90%

11.60%

63.8%

8.70%

Wyndham Rewards

11.30%

18.30%

69.0%

1.40%

Inspection Fees

19.70%

18.30%

59.2%

2.80%

Guest Complaint Fees

17.10%

64.3%

1.40%

What concerns you the most

Cost of the

Functionality

regarding SoftHotels

System

of System

Implementation

68.10%

31.90%

The Wyndham Rewards Program

Agree

Disagree

helps increase my

Strongly

Agree

Opinion

Disagree

Strongly

Hotel's Revenue

0.00%

11.00%

9.60%

37.00%

42.50%

Customer Service

Agree

Disagree

Fees are needed to improve

Strongly

Agree

Opinion

Disagree

Strongly

Guest Satisfaction

1.40%

4.20%

9.70%

38.90%

45.80%

Do you feel that Re-inspection

fees should be accessed to

YES

properties that fail the first time?

11.60%

88.40%

The assessment of Guest

Agree

Disagree

Complaint fees have resulted in

Strongly

Agree

Opinion

Disagree

Strongly

fewer guest service complaints

0.00%

1.40%

19.40%

38.90%

40.30%

Do you feel that you are being

charged fairly for SoftHotels or

YES

any PMS system?

2.90%

97.10%

Would you leave your Wyndham

franchised brand if there were

YES

no penalties?

80.30%

19.70%

TRIPREWARDS SURVEY RESULTS FROM O8A SURVEY

Number of Properties Responding to the TR Survey

Total # of Guests Polled for the Survey during the Poling week

1766

Total # of Polled Guests Aware of the TR Program

314

Percentage of Polled Guests Aware of the TR Program

18%

Only 18% of the guests surveyed had heard of the Triprewards program despite the

fact that Wyndham continues to point towards the program as a reason for growth

Percentage of polled guests with Reservations from CRS

15.40%

Actual Number of CRS Reservations

272

Percentage of Guests with Reservations Aware of the TR Program

46.60%

Number of Guests with Reservations Aware of the TR Program

Percentage of enrolled guests in TR Program

71.69%

# of enrolled guests in TR Program

195

Percentage of TR reservations Charged on motel TR bill

92.70%

# of reservations charged 5%

195

Super 8 Motels reservations contribution accounted for 15.4% of the total revenue

71.69% of the reservations had TR numbers associated with the guests however,

only 46.6% of these guests were aware of the TR program.

Note: These statistics represent average values as compiled from data from the participating locations.

Actual results vary by location.

The data provided by the survey indicates the fact that awareness of the Triprewards Program is much lower than is touted by Super 8 and Wyndham. More significantly, the fact that only 46% of the guests with Triprewards frequent stay memberships were aware of their membership in the program. Wyndham charged the 5% extra royalty on over 92% of these reservations. They are accurately charging the motels the 5% fees however less than half of these guests were aware of the program and the points they had accumulated.

On a related note:

According to the 2006 UFOC for Super 8 Motels:

	2005		2006
	Jan-Dec		Jan-Dec
*Source	Room Nights	Revenue	Room Nights	Revenue
Brand Web Site	972552	$ 60,319,385.00	1195492	$ 78,932,534.00
Electronic	948974	$ 57,868,354.00	1162527	$ 68,820,450.00
Other	863170	$ 33,034,401.00	792512	$ 33,756,670.00
Property Direct (Triprewards)	2764311	$ 152,798,186.00	3562932	$ 205,785,932.00
Call Centers	1358346	$ 82,845,945.00	1190549	$ 75,796,670.00
Total	6907353	$ 386,684,271.00	7904012	$ 386,684,271.00

Contribution		29.46%		33.27%

*Source: 2006 Super 8 Motels, Inc. UFOC Item 19. Pages 64-65

**CONSIDER THESE FIGURES:	2005	2006
Total Revenue for Super 8 Motels throughout the system	$ 1,312,573,900.20	$1,162,261,109.11
Property Direct Reservations as listed above	$ 152,798,186.00	$ 205,785,932.00
Total Revenue from CRS and Res Centers as above	$ 386,684,271.00	$ 386,684,271.00
ACTUAL RESERVATION REV. THRU SUPER 8 CORP	$ 233,886,085.00	$ 180,898,339.00
TOTAL ACTUAL CONTRIBUTION THRU SUPER 8 CORP	18%	16%

**Based on the UFOC information provided by Super 8 above

Reported Contribution in the Super 8 UFOC 29.46% in 2005

ACTUAL Contribution after removal of property direct TR reservations was 18%

Reported Contribution in the Super 8 UFOC 33.27% in 2006

ACTUAL Contribution after removal of property direct TR reservations was 16%

Property direct reservations that were made by the individual Super 8 Motel locations should not be included in the reservation contribution from Super 8 Motels, Inc. These reservations made DIRECTLY AT THE MOTEL do not truly represent revenue created by Super 8 Reservations. Triprewards membership numbers are auto assigned by an irregular reservation system created by Wyndham. In many cases the guests are not aware of their membership and the Triprewards guests are not always legitimately created frequent guests due to the auto assignment of a member number. Triprewards has nothing to do with many of our guests stays and due to the complete illegitimacy of the current Triprewards Membership base, Wyndham is knowingly skewing these values in order to present more positive reservation delivery values. Further, due to the fact that Triprewards is not brand specific this further distorts the true contribution values.

SURVEY RESULTS OF OUR 1ST SURVEY OF THE MEMBERS

Trip rewards Survey Totals

90.3% TR not valuable and very poor value

57% very poor value

33.7% no value

4% valuable

4% very good value

8% valuable and very good value

Owners thoughts regarding Wyndham's Direction regarding Super 8

Dissatisfied with Direction	39.50%
Very Dissatisfied with Direction	35.80%
Dissatisfied and Very Dissatisfied with Direction	75.30%

Satisfied with Direction	18.50%
Very satisfied with Direction	1.20%
Satisfied and very satisfied with Direction	19.70%
No opinion	4.90%

Owner Opinion of the Value of the Super 8 brand

0% Very good value

46.2% Valuable

27.5% No Value

25% Very Poor Value

52.5% No Value and Very poor value

1.25% No Opinion

Owners Opinion of the FAB

1.2% Very Satisfied

1.2% Satisfied

2.4% Very Satisfied and Satisfied with FAB

38.2% Dissatisfied

51.9% Very Dissatisfied

90.1% Dissatisfied and Very Dissatisfied with FAB

7.5% No opinion

Owners Opinion of their DBD

12.5% Very Satisfied

32.5% Satisfied

45% Very Satisfied and Satisfied with DBD

30% Dissatisfied

13.7% Very Dissatisfied

43.7% Very Dissatisfied and Dissatisfied with DBD

11.25% No Opinion

Owners opinion of the Super 8 Brand

0% Very good value

46.2% Valuable

27.5% No Value

25% Very Poor Value

52.5% No Value and Very poor value

1.25% No Opinion

Owners Opinion of the FAB

1.2% Very Satisfied

1.2% Satisfied

2.4% Very Satisfied and Satisfied with FAB

38.2% Dissatisfied

51.9% Very Dissatisfied

90.1% Dissatisfied and Very Dissatisfied with FAB

7.5% No opinion

Owners Opinion of their DBD

12.5% Very Satisfied

32.5% Satisfied

45% Very Satisfied and Satisfied with DBD

30% Dissatisfied

13.7% Very Dissatisfied

43.7% Very Dissatisfied and Dissatisfied with DBD

11.25% No Opinion

Will Owners be Renewing Super 8

5% Very likely

22.2% Likely

27.2% Very Likely and Likely to Renew Super 8

24.7% Unlikely

35.8% Very Unlikely

60.5% Unlikely and Very Unlikely to Renew Super 8

12.3% No opinion

Owners willing to leave Super 8 at a reduced cost NOW

29.6% Very Likely

37% Likely

66.6% Very Likely and Likely to Leave Super 8 at reduced cost

16.04% Unlikely

9.8% Very Unlikely

25.8% Unlikely and Very Unlikley to Leave Super 8 at reduced cost

Owners likely to End Franchise Relationships with Super 8 NOW if no Penalties for leaving

56.8% Very Unlikely

18.5% Likely

75.3% Very Unlikely and Likely NOT Renew with Super 8

11.11% Likely

7.4% Unlikley

18.5% Likely and Unlikely to leave Super 8

6.1% No opinion

Owners opinion of Property Managment Systems Results

10% Very Good Value

31.6% Valueable

41.6% PMS System Very Good Value and Valuable

22.78% No Value

31.6% Very Poor Value

54.38%PMS System No Value and Very Poor Value

3.7% No opinion

Other Survey Results

59% Have Never Owned another Brand

41% Own or Owned other Brands

6% owned Super 8 for 20+ years

21% owned super 8 for 11-20 years

33.33% owned Super 8 for 5-10 years

39.5% owned Super for less than 5 years

51.2% Do NOT live on site

48.8% LIVE on site

97.6% Manage their property

2.4% Use a Management company

18.98% of Super 8's less than 40 rooms

51.9% of Super 8's 41-60 rooms

70.88% of Super 8's are less than 60 rooms

15.85% Of Super 8's 61-80 rooms

11.39% of Super 8's have more than 80 rooms

27.24 of Super 8's greater than 60 rooms