Portugal presentation fi - sept 2013 v6 - Miguel Guedes de Sousa

Company Profile Portugal

September 2013

CONTENT

1. COMPANY OVERVIEW

2. GOLDEN TULIP FORMULA> The Brand> Value Drivers - Operating Systems> Execution

3. WHY US?

P.212/04/2023LHG Presentation - Portugal - Confidential

P.3

COMPANY OVERVIEW

12/04/2023LHG Presentation - Portugal - Confidential

P.4

LOUVRE HOTEL GROUP OVERVIEW

12/04/2023 P.4

> A group positioned among the world’s TOP 10

> Owned by Starwood Capital Group investment fund

> Acquired Golden Tulip Hospitality Group in 2009

> Strong European foothold, more than 960 hotels (66.000 keys)

> Consolidate its presence in Europe and venture into target territories such as Russia, India, Brazil and China

> 6 brands, ranging from 1 to 5 stars

> More than 1 100 established in 43 countries

> In excess of 88 000 rooms

> 19 000 employees

> 24% fully-owned hotels

> 27% hotels run under a management agreement

> 49% hotels run as a franchise agreement

LHG Presentation - Portugal - Confidential

FOCUS ON SELECTED MARKETS

Data as end of June 2013NB: Golden Tulip hotels include the three brands of the Golden Tulip’s family: Tulip Inn, Golden Tulip and Royal Tulip

P.5

BRAZIL

The 3rd hotel group in the national hotel

rankings• Exclusive partnership with

BHG (Brazil Hospitality Group)

• 35 Golden Tulip hotels totaling 6,421 rooms, as of end of June 2013

MIDDLE EAST & AFRICA

The 4th hotel group• 39 Golden Tulip hotels in Middle

East totaling more than 5,000 rooms in Bahrain, Jordan, Lebanon, Oman, Saudi Arabia and UAE

• 33 hotels in Africa with more than 7,000 rooms in Morocco, Algeria, Tunisia, Egypt, Ghana, Nigeria and Tanzania.

MOROCCO

The 2nd hotel group• 19 Golden Tulip hotels

totaling 4,165 keys, as of end of May 2013

• Partnership agreement with Ynna Holding to rebrand 12 Ryad Mogador hotels, totaling 3,000 rooms

EUROPE

The 2th European Hotel Group

967 hotels in total, totaling more than 66,000 rooms

• 100 Golden tulip hotels


P.62013 2012

DEVELOPMENT 2012 - 201310th hotel group worldwide by country presence

69 NEW HOTELS in 2012 – 7,034 rooms (i.e. 16% more than in 2011)

Forecast for end of 2013:

85 openings

In the end of the first semester of 2013, we’ve already opened 68% of last year’s rooms record.

10 NEW COUNTRIES in two years


LHG PRESENCE IN BRAZIL, SPAIN & PORTUGAL

P.7

Rio de Janeiro

Brasilia

São Paulo

São Luis

Salvador

Bélem SobralFortaleza/Natal/ Recife

Curitiba

Cuiabà

Uberlandia

Porto Allegre

Foz de Iguacu

44

1

2

4

1

1

4

21

57

1

1

1

LHG presence in Brazil35 trading hotels

4 hotels in pipelineBrands: Tulip Inn, Golden Tulip & Royal Tulip

LHG presence in Spain & Portugal12 trading hotels

4 hotels in pipelineBrands: Premiere Classe, Campanile,

Tulip Inn & Golden Tulip

Madrid

Zaragoza

Barcelona

Alicante / Elche

MurciaMalaga

Setubal

Braga

Agueda

1

22

1

2

11

1

1

1

GT Hotels in pipeline

Existing GT hotels

Premiere Classe hotels

Campanile hotels

* Data as per 30/06/201312/04/2023LHG Presentation - Portugal - Confidential

STRONG BRANDS FROM 1 TO 5 STAR

Première Classe - 250 hotels• Slogan: “The essential for a good stay””• 1 or 2 star* hotels with standardized concept• Limited service hotels offering good value for money• 72% of hotels are managed by Louvre Hotels (incl. 27% owned)

• Slogan: “Change the way you stay”• Launched in 1976• 3 star hotels with standardized concept• Full service hotels, including restaurant & meeting rooms• 83% of hotels are managed by Louvre Hotels (incl. 52% owned)

•Slogan: “More comfort, less conformity”•Launched in 2000 and 2003 respectively •Upper midscale hotels, mostly located in France•Non standardised product•Kyriad is primarily a franchise brand

• Mid-scale hotels : 3-star properties (created in 1993)• Non standardised - Comfortable and functional accommodation

along with friendly service• Hotels designed to offer an exceptional value for money• Well balanced mix of franchised and managed hotels

• Upper-scale hotels : 4-star properties (created in 1962)• Non standardised - Full service hotels, incl. restaurant &

meeting rooms• Modern facilities, personal service and international standards of

comfort• Well balanced mix of franchised and managed hotels

• Luxury hotels : 5-star properties (created in 2006)• Non standardised - Security, exclusivity and discrete excellence• Elegant and luxurious facilities with a deluxe level of comfort and

refined services, and ultra-modern amenities

Campanile – 400 hotels

Kyriad – 234 hotels (France Only)

Tulip Inn – 80 hotels

Golden Tulip – 143 hotels

Royal Tulip – 9 hotels

P.8* Data as per 30/06/2013


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

73 % 14 % 6 % 7 %

Europe Middle East - Africa Asia Pacific South America

PORTFOLIO OVERVIEW

P.9

Room stock by brand Room stock by contract type

Room stock by region

YTD May figures

Development last 5 years

(rooms)0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

43 % 57 %

Europe International


48%

29%

23%

Franchise

Management

Owned

P.10

GOLDEN TULIP FORMULA


Execution


P.11

Commercial Value Drivers Operational Value Drivers

Goldres

E-Commerce / M-Commerce

Training Academy

Systems Technology

Financial Services

Quality Assurance

HR Management

Training

Legal Support

Finance

Management Operation

Pricing & Revenue Mgt

Quality Supervision

Sales & Marketing

Hotel


OPERATING SYSTEM EXECUTIONBRAND

Business Analysis / Benchmark

Property Maintenance

Loyalty Program

Sales & Marketing

Leisure Marketing

Central Meeting Line

P.12

THE BRAND


BRAND

International standards, local flavours.

GOLDEN TULIP BRANDS

12/04/2023LHG Presentation - Portugal - Confidential P.13

Brand Royal Tulip Golden Tulip Tulip Inn

Hotel Description

International Standards, Local Flavours

Rare Authentic Value for money

Star Rating International Luxury Upscale Midscale

N# of Hotels 9 hotels 143 Hotels 80 Hotels

N# of Rooms 2,280 Rooms 20,900 Rooms 8,400 Rooms

N# of Countries 6 Countries 33 Countries 23 Countries

Hotel Design Non-standardised Non-standardised Non-standardised

Main Brand Competitors(In Portugal)

TULIP INNCelebrating diversity

Tulip Inn Zaragoza, Spain Tulip Inn Marne la Vallée, France

Tulip Inn Rotterdam, Netherlands

12/04/2023 P.14LHG Presentation - Portugal - Confidential

Golden Tulip Munich Golden Tulip Opera de Noailles Paris

Golden Tulip Farah Casablanca

GOLDEN TULIP Celebrating diversity


Royal Tulip Almaty, Kazakhstan Royal Tulip Brasilia, Brazil

Royal Tulip Zhujiajiao, Shanghai, China

ROYAL TULIP Celebrating diversity

12/04/2023 P.16

P.17

BRANCHEA dedicated Food & Beverage concept

12/04/2023

Restaurant Bar Lounge

A place where you can stay in and feel comfortable any timeA place where it is easy to move in, offering working facilities as well as leisure ones

Nature as the key element

LHG Presentation - Portugal - Confidential

P.18

VALUE DRIVERS


BRAND

OPERATING SYSTEMS


P.19


Goldres


Training Academy

Systems Technology

Financial Services

Quality Assurance

HR Management

Training

Legal Support

Finance



Quality Supervision

Sales & Marketing

Hotel





Loyalty Program

Sales & Marketing

Leisure Marketing


COMMERCIAL VALUE DRIVERSDistribution Landscape


COMMERCIAL VALUE DRIVERSDistribution Landscape

> A single platform incorporating all channels:• Global distribution systems (GDS)• Call centres: central telephone reservations• Online Travel Agencies (OTA’s)• Brand.com

> The CRS benefits:• Full integration of all channels • Fully interfacable• Manage & update rates & availability immediately in one platform• Real-time availability• Dynamic reports for revenue and rate analysis• 24/7 GOLDRES Support• Amongst the highest uptimes in the industry with 99.8%• Average response time of 0.075 seconds• Integrated corporate RFP tool (Lanyon)• Complete and direct integration on GDS: total pricing, BAR, etc.• Centralized system for commission payments (Travelcom)

> Upcoming features: • To support cross-selling among the different brands of LHG• To benefit from the existing and on going technology investment

in other LH brands


Highly efficient CRS (centralised reservation

system)

COMMERCIAL VALUE DRIVERSE-Commerce

> Brand websites and customised hotel websites

> The first hotel group to launch a mobile application interfaced with its CRS

> Prepayment options available in different currencies

> Facebook page with integrated booking engine

> Search Engine Optimisation tools (SEO) and Search Engine Marketing activities (SEM)

> Active presence on social media

> Management tools that provide flexibility and responsiveness to hotels and regional offices for monitoring their activity and content.

> Restricted rate log-in

> Guest reviews

Upcoming features:

> Upselling solution, dynamic packaging, additional currencies, promotion codes, geo targeting & social media facilities.


A range of tools and programmes geared to maximise revenue

COMMERCIAL VALUE DRIVERSLoyalty Programs


Loyalty scheme for the bookers of corporate rooms and meeting business

Loyalty program for frequent guests

Partnership with major frequent flyer loyalty programs

COMMERCIAL VALUE DRIVERSSales & Marketing


Leisure Marketing

> Reservation service to facilitate the booking of meeting facilities at hotels.

> Specialized booking agents assist personally in identifying the hotel facilities that best meet the needs and criteria of the booker.

> The special needs per booker are registered and stored to facilitate future bookings.

> Develops and launches promotional packages and rates towards the leisure guests

> Prepay & Save> Stay more, save more> American Express Offers

> These offers are promoted through the Golden Tulip channels (website, e-newsletters, hotels), through printed advertisements and through partners

OPERATIONAL VALUE DRIVERSSummary


> We offer various cost saving possibilities such as agreements with credit card and insurance companies.

> World Purchasing Intranet: centralize all preferred agreements with selected third party vendors than hotels can benefit

> “Le Store”: purchasing tools which offer competitive prices for food and non-food items from global suppliers through chain-wide collective agreements

> Training centre developing innovative programs and entertaining learning

> Objective is to improve performance and encourage innovation

> « One Step Beyond » : preparing current assistant managers to become General Manager

> « Fast & Curious »: A program for young graduates to become GM (international career). For 18-24 months they occupy various management functions in 2 or 3 different hotels in the Chain.

> Goldnet: online access to all materials and systems

> Parse (manage loyalty program, hotel’s photo and Brochure production softw), Lanyon (manage property information, respond to RFP’s), Travelcom (online payment solution for travel agent commissions), Business Intelligence tools and reports (Rebecom/ STR), Revenue Management Systems (Easy RMS), Channel Manager, PMS Opera (preferential price negotiated).

> Evaluation of hotels level of service and products offered once a year by an independent mystery guest

> Evaluation based on quality assurance and the compliance with Golden Tulip’s corporate identity standards

> Online Reputation through Review Pro

SOP (Standards Operating Procedures)

> Each hotel receive a log in and is able to

access the procedure manual on a branded home page according to his brand type.

> From this home page you can search directly the procedure using its name or code number

> 400 different procedures which are classified according to the hotel’s operating department (FO, F&B, Finance, Sales & Marketing…)

> Extranet with all Brands Standards per Brand


P.27

EXECUTION


BRAND

EXECUTIONOPERATING SYSTEMS


P.28


Goldres


Training Academy

Systems Technology

Financial Services

Quality Assurance

HR Management

Training

Legal Support

Finance



Quality Supervision

Sales & Marketing

Hotel





Loyalty Program

Sales & Marketing

Leisure Marketing


EXECUTION

> Business Model: partnership with local companies• Objective is to create synergies by capturing benefits from international brands, strong

distribution systems and global tools combine with local market knowledge , expertise and understanding of local culture.

• Such partnerships are essential for growth at LHG

• Example of Brazil Success Story

> Partnership signed with Flagworld in 2012 to develop Golden Tulip brands in Portugal

> Soft Product Standards• Golden Tulip brands are non-standardized permitting to optimise rebranding investment cost

still maintaining high level of service.

> Focus on Profitability• Owned by an investment fund

• Owned 24% of our portfolio

• Efficient at converting fixe cost in variable cost


LIVE EXAMPLE

P.30

Golden Tulip Braga Portugal

63 keys – Ex hotel Sentir FalperraOpening date: 08/03/2012

BPI Revenue:

31 %

+29% +75%

FTM after opening (Apr 12 – Mar 13)

+75%+12 %+ 45 % +12 % + 43 %

+ 28 %

Hotel Alone Hotel with GT Brand Impact

0%5%

10%15%20%25%30%35%40%45%

32%

42%

Occupancy rate


0K€

100K€

200K€

300K€

400K€

500K€

600K€

335 K€

487 K€

Rooms Revenue

+ 10 %


30 €

35 €

40 €

45 €

50 €

55 €

45 €

50 €

ADR


51€

P.31

WHY US ?


NETWORK STRENGTH

P.32

Sources: Instituto Nacional de Estatistica – Statistics Portugal

LHG brands bring you guests from EUROPE & ALL OVER

THE WORLD

* Presence of LHG in the country including hotels under GT brands


31% of Domestic Visitors

1 UK 6 422 16,2% 20 hotels2 Germany 3 685 9,3% 9 hotels3 Spain 3 077 7,8% 10 hotels4 France 2 225 5,6% 817 hotels5 Netherlands 2 137 5,4% 62 hotels

PortugalNb of overnights in Portugal ('000)

% of overnights in Portugal

Presence of LHG in the country

BRAZIL is ranked 7th with 3% OF

CONTRIBUTION

ADVANTAGES OF A PARTNERSHIP WITH US

> D ir e c t im p a c t s f r o m m a r k e ti n g c a m p a ig n s ,

lo y a lt y p r o g r a m s , s a le s r e p r e s e n t a ti o n ,

in t e r n a ti o n a l e x p o s u r e

> E x p e r ti s e a n d g lo b a l t o o ls d e v e lo p e d a t c e n t r a l

le v e l t o s u p p o r t e a c h h o t e l o p e r a ti o n a n d

p e r fo r m a n c e

> L o c a l p a r t n e r s & t e a m s t o b e tt e r u n d e r s t a n d

e a c h m a r k e t a n d lo c a l c u lt u r e , a n d b e tt e r

s u p p o r t h o t e ls in e a c h r e g io n

> L o c a l s a le s & m a r k e ti n g p la n d e fi n e d p e r r e g io n

> Direct impacts from marketing campaigns, loyalty programs, sales representation, international exposure

> Expertise and global tools developed at central level to support each hotel operation and performance

> Local partners & teams to better understand each market and local culture, and better support hotels in each region

> Local sales & marketing plan defined per region

> A recognized and respected brand worldwide

> Expertise, track record and proven results

> Operational support to improve hotel’s operational and financial performance

> One of the most powerful reservations systems connecting hotels to global distribution systems, call centers, e-commerce website

> Conversion brands

P.3312/04/2023LHG Presentation - Portugal - Confidential

Portugal presentation fi - sept 2013 v6 - Miguel Guedes de Sousa

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Transcript of Portugal presentation fi - sept 2013 v6 - Miguel Guedes de Sousa