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LodgeNet Interactive Corporation Conference

Stocks in this article: LNET

Our room base today, from a hotel perspective 1.7 million, about 40% are in the upper market place luxury upper, up scale. That’s really I would say the heart and soul of the business, about 40% are in the mid markets, which is a larger parker place, but less penetrated from our perspective and then around 15 or 16% in independent and a very small amount in the economy change, which were at instance at this point of time, exiting from an interactive perspective, due to economics.

If you take that 1.7 million rooms, break it up by flag, about 20% of our rooms fall under one of the Hildner, the highest family brands. Starwood, Hyatt and then intercontinental represent the balance the companies, but 55% of our overall room count. At the brand level, they generally don’t have the power of the pen. So we create our programming and marketing packages for them, create the offers that they want us to offer their franchise owners, price points put together, general business terms, and then we take that to the, this 1500 owners and managers of the properties themselves, that do have the power of the pen. So our sales force goes out, secures contracts with them, and then you’ll see at the bottom right hand corner, we sign contracts with the actual hotel property. Mostly, there is different legal entities for every location, from a real estate standpoint, so it’s a very diverse space, even though it appears to be somewhat concentrating at the brand level, it is nicely diversified across, well over 1500 management companies and then 9000 locations.

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