1. Company Profile
Portugal
September 2013

2. CONTENT
1. COMPANY OVERVIEW
2. GOLDEN TULIP FORMULA
> The Brand
> Value Drivers - Operating Systems
> Execution
3. WHY US?
LHG Presentation - Portugal - Confidential
04/11/2013 P.2

3. COMPANY
OVERVIEW
LHG Presentation - Portugal - Confidential
04/11/2013 P.3

4. LOUVRE HOTEL GROUP OVERVIEW
>
>
>
>
>
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
04/11/2013 P.4

5. FOCUS ON SELECTED MARKETS
EUROPE
The 2th European
BRAZIL
The 3rd hotel group
Hotel Group
967 hotels in total, totaling
more than 66,000 rooms
• 100 Golden tulip hotels
in the national hotel
rankings
•
•
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.
Exclusive partnership with
BHG (Brazil Hospitality
Group)
35 Golden Tulip hotels
totaling 6,421 rooms, as of
end of June 2013
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
Data as end of June 2013
LHG Presentation - Portugal - Confidential
NB: Golden Tulip hotels include the three brands of the Golden Tulip’s family: Tulip Inn, Golden Tulip and Royal Tulip
04/11/2013 P.5

6. DEVELOPMENT 2012 - 2013
10th hotel group worldwide by country presence
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.
LHG
2013 Presentation - Portugal - Confidential
2012
04/11/2013 P.6

7. LHG PRESENCE IN BRAZIL, SPAIN & PORTUGAL
Existing GT hotels
GT Hotels in pipeline
Premiere Classe hotels
Campanile hotels
4
4
Bélem
1
Sobral
São Luis
1 4 Fortaleza/Natal
/ Recife
2
Cuiabà
Braga
Zaragoza
1
1
Salvador
1
Agueda
1 2
Brasilia
1
Uberlandia
Foz de Iguacu
1
1
7 Rio de Janeiro
2
2
Setubal
1
2 Alicante / Elche
4 Curitiba
Malaga
1
LHG presence in Brazil
35 trading hotels
4 hotels in pipeline
Brands: Tulip Inn, Golden Tulip & Royal Tulip
* Data as per 30/06/2013
LHG Presentation - Portugal - Confidential
Barcelona
Madrid
5 São Paulo
Porto Allegre
1
1 Murcia
1
LHG presence in Spain & Portugal
12 trading hotels
4 hotels in pipeline
Brands: Premiere Classe, Campanile,
Tulip Inn & Golden Tulip
04/11/2013 P.7

8. 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)
Tulip Inn – 80 hotels
•
•
Campanile – 400 hotels
•
•
•
•
•
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
•
•
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)
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•
•
Kyriad – 234 hotels (France Only)
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•
•
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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
LHG Presentation - Portugal - Confidential
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
Royal Tulip – 9 hotels
•
•
•
* Data as per 30/06/2013
Golden Tulip – 143 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
04/11/2013 P.8

9. PORTFOLIO OVERVIEW
Room stock by brand
Room stock by contract type
23%
48%
Franchise
29%
Management
Owned
Room stock by
region
73 %
0%
10%
20%
30%
40%
50%
Europe
Middle East - Africa
14 %
60%
Asia Pacific
43 %
Development
last 5 years
(rooms)
0%
10%
YTDPresentation - Portugal - Confidential
LHG May figures
20%
70%
80%
South America
6%
7%
90%
100%
90%
100%
57 %
30%
40%
50%
60%
Europe
International
70%
80%
04/11/2013 P.9

10. GOLDEN TULIP
FORMULA
Execution
LHG Presentation - Portugal - Confidential
04/11/2013 P.10

11. GOLDEN TULIP FORMULA
Hotel
BRAND
OPERATING SYSTEM
EXECUTION
Commercial Value Drivers
Operational Value Drivers
HR Management
Goldres
Training Academy
Training
E-Commerce /
M-Commerce
Systems Technology
Legal Support
Loyalty Program
Financial Services
Finance
Sales & Marketing
Quality Assurance
Management Operation
Central Meeting Line
Pricing & Revenue Mgt
Leisure Marketing
Quality Supervision
Sales & Marketing
Property Maintenance
Business Analysis /
Benchmark
LHG Presentation - Portugal - Confidential
04/11/2013 P.11

12. THE BRAND
BRAND
International standards, local flavours.
LHG Presentation - Portugal - Confidential
04/11/2013 P.12

13. GOLDEN TULIP BRANDS
Brand
Royal Tulip
Golden Tulip
Tulip Inn
International Standards, Local Flavours
Hotel Description
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)
LHG Presentation - Portugal - Confidential
04/11/2013 P.13

14. TULIP INN
Celebrating diversity
Tulip Inn Zaragoza, Spain
Tulip Inn Marne la Vallée, France
Tulip Inn Rotterdam, Netherlands
LHG Presentation - Portugal - Confidential
04/11/2013 P.14

15. GOLDEN TULIP
Celebrating diversity
Golden Tulip Munich
Golden Tulip Opera de Noailles Paris
Golden Tulip Farah Casablanca
LHG Presentation - Portugal - Confidential
04/11/2013 P.15

16. ROYAL TULIP
Celebrating diversity
Royal Tulip Almaty, Kazakhstan
Royal Tulip Brasilia, Brazil
Royal Tulip Zhujiajiao, Shanghai, China
04/11/2013 P.16

17. BRANCHE
A dedicated Food & Beverage concept
Nature as the key element
Restaurant
Bar
Lounge
A place where you can stay in and feel comfortable any time
A place where it is easy to move in, offering working facilities as well as leisure ones
LHG Presentation - Portugal - Confidential
04/11/2013 P.17

18. VALUE DRIVERS
BRAND
OPERATING
SYSTEMS
LHG Presentation - Portugal - Confidential
04/11/2013 P.18

19. GOLDEN TULIP FORMULA
Hotel
BRAND
OPERATING SYSTEM
EXECUTION
Commercial Value Drivers
Operational Value Drivers
HR Management
Goldres
Training Academy
Training
E-Commerce /
M-Commerce
Systems Technology
Legal Support
Loyalty Program
Financial Services
Finance
Sales & Marketing
Quality Assurance
Management Operation
Central Meeting Line
Pricing & Revenue Mgt
Leisure Marketing
Quality Supervision
Sales & Marketing
Property Maintenance
Business Analysis /
Benchmark
LHG Presentation - Portugal - Confidential
04/11/2013 P.19

20. COMMERCIAL VALUE DRIVERS
Distribution Landscape
LHG Presentation - Portugal - Confidential
04/11/2013 P.20

21. COMMERCIAL VALUE DRIVERS
Distribution 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)
Highly efficient CRS
(centralised reservation
system)
> 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
LHG Presentation - Portugal - Confidential
04/11/2013 P.21

22. COMMERCIAL VALUE DRIVERS
E-Commerce
A range of tools and programmes geared to maximise revenue
> 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.
LHG Presentation - Portugal - Confidential
04/11/2013 P.22

23. COMMERCIAL VALUE DRIVERS
Loyalty Programs
Loyalty scheme for the bookers of corporate
rooms and meeting business
Loyalty program for frequent guests
Partnership with major frequent flyer loyalty
programs
LHG Presentation - Portugal - Confidential
04/11/2013 P.23

24. COMMERCIAL VALUE DRIVERS
Sales & 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.
LHG Presentation - Portugal - Confidential
> 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, enewsletters, hotels), through printed
advertisements and through partners
04/11/2013 P.24

25. OPERATIONAL VALUE DRIVERS
Summary
> 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
> 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
> 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).
>
>
>
>
LHG Presentation - Portugal - Confidential
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.
04/11/2013 P.25

26. 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
LHG Presentation - Portugal - Confidential
04/11/2013 P.26

27. EXECUTION
BRAND
OPERATING
SYSTEMS
LHG Presentation - Portugal - Confidential
EXECUTION
04/11/2013 P.27

28. GOLDEN TULIP FORMULA
Hotel
BRAND
OPERATING SYSTEM
EXECUTION
Commercial Value Drivers
Operational Value Drivers
HR Management
Goldres
Training Academy
Training
E-Commerce /
M-Commerce
Systems Technology
Legal Support
Loyalty Program
Financial Services
Finance
Sales & Marketing
Quality Assurance
Management Operation
Central Meeting Line
Pricing & Revenue Mgt
Leisure Marketing
Quality Supervision
Sales & Marketing
Property Maintenance
Business Analysis /
Benchmark
LHG Presentation - Portugal - Confidential
04/11/2013 P.28

29. 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
LHG Presentation - Portugal - Confidential
04/11/2013 P.29

30. LIVE EXAMPLE
Golden Tulip Braga
BPI
Revenue:
31 %
Portugal
63 keys – Ex hotel Sentir Falperra
Opening date: 08/03/2012
Occupancy rate
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
42%
32%
Rooms Revenue
ADR
55 €
+ 28 %
+ 45 %
50 €
600K€
51€
50 €
45 €
45 €
+12
+12 %%
+ 10 %
+29%
487 K€
500K€
400K€
335 K€
+75%%
+ 43
+75%
300K€
40 €
200K€
35 €
30 €
Hotel Alone
Hotel with GT Brand Impact
FTM LHG Presentation -(Apr 12- – Mar 13)
after opening Portugal Confidential
100K€
0K€
Hotel Alone
Hotel with GT Brand Impact
Hotel Alone
Hotel with GT Brand Impact
04/11/2013 P.30

31. WHY US ?
LHG Presentation - Portugal - Confidential
04/11/2013 P.31

32. NETWORK STRENGTH
Portugal
1 UK
2 Germany
3 Spain
4 France
5 Netherlands
Nb of overnights % of overnights Presence of LHG
in Portugal ('000)
in Portugal
in the country
6 422
3 685
3 077
2 225
2 137
16,2%
9,3%
7,8%
5,6%
5,4%
20 hotels
9 hotels
10 hotels
817 hotels
62 hotels
* Presence of LHG in the country including hotels under GT brands
Sources: Instituto Nacional de Estatistica – Statistics Portugal
LHG Presentation - Portugal - Confidential
04/11/2013 P.32

33. ADVANTAGES OF A PARTNERSHIP WITH US
> 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
> 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
LHG Presentation - Portugal - Confidential
04/11/2013 P.33