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WHY INVEST IN SWISSÔTEL

LIFE IS A JOURNEY. LIVE IT WELL. Our Swiss hospitality allows you to spend quality time exploring the world and live life well. ACCORHOTELS GLOBAL DEVELOPMENT AUGUST 2018

1 LIFE IS A JOURNEY. LIVE IT WELL. We are Swissôtel & Resorts. We are Swiss at heart and global by nature. Through quality, efficiency and care, our Swiss hospitality gives guests the peace of mind they need to explore the world and discover life’s true rewards.

SWISS HOSPITALITY SENSE OF PLACE VITALITY SPIRIT

WHY INVEST IN SWISSÔTELPOSITIONING2 IT’S ALL IN OUR NAME

SWISSÔTEL = SWISS &

OUR SWISS SIDE OUR HOSPITALITY SIDE •Quality in each and every detail • Our biggest asset – our dedicated and •Intelligent design genuinely caring colleagues and partners •Efficient and effective operations to • Our pride in our profession guarantee profitability and ROI • Our aim to provide peace of mind

WHY INVEST IN SWISSÔTELPOSITIONING3 GROWTH OF A LEADING BRAND 87/100 High e-reputation performance & positive guest perception

€38 Brand Average rate premium versus independent hoteliers

3 trillion VITALITY positioning in the 3 trillion

dollar well being megatrend

2017 of end

Swissôtel The Bosphorus, Istanbul, Turkey Figures as WHY INVEST IN SWISSÔTELKEY FIGURES4 NETWORK VS PIPELINE GLOBAL PRESENCE 13,432 rooms 4,456 rooms

50 Hotels including projects 31 Hotels in operation 19 Under development 100%

Geographical split 23%

EUROPE 12 hotels 3,101 rooms Pipeline +1,247 rooms

10% Swissôtel Berlin - Germany AMERICAS 40% 3 hotels 1,281 rooms ASPAC Pipeline: +230 rooms 12 hotels 28% 5,319 rooms Pipeline +1,595 rooms MIDDLE-EAST & 4 hotels 3,731 rooms Pipeline: +1,384 rooms

Swissôtel Al Maqam- Saudi Arabia Swissôtel Chicago - USA

Swissôtel The Merchant - 2018

June

of end end of Figures as Figures WHY INVEST IN SWISSÔTELNETWORK & PIPELINE5 KEY UPCOMING OPENINGS – 2018-2021

Swissôtel Bali, Indonesia Swissôtel Jeddah, Saudi Arabia Swissôtel Resort Kotor, 176 rooms 247 rooms Montenegro - 130 rooms (2021) (2020) (2020)

Swissôtel Sofia, Bulgaria Swissôtel Gold Coast, Swissôtel Bodrum Hill, Turkey Swissôtel Koza Park, 304 rooms 166 rooms 72 rooms Istanbul, Turkey – 160 rooms (2019) (2020) (2019) (2019)

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE6 FLAGSHIPS SWISSÔTEL THE BOSPHORUS ISTANBUL, TURKEY

566 ROOMS & SUITES 63 RESIDENCES 7 LOFTS 7 BARS & RESTAURANTS 28 FUNCTION ROOMS PÜROVEL SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE7 FLAGSHIPS SWISSÔTEL NANKAI OSAKA, JAPAN

546 ROOMS & SUITES 8 BARS & RESTAURANTS 19 FUNCTION ROOMS PÜROVEL SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE8 FLAGSHIPS SWISSÔTEL KRASNYE HOLMY MOSCOW, RUSSIA

234 ROOMS & SUITES 3 BARS & RESTAURANTS 11 FUNCTION ROOMS PÜROVEL SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE9 FLAGSHIPS SWISSÔTEL THE MERCHANT COURT, SINGAPORE

1261 ROOMS & SUITES 15 BARS & RESTAURANTS 27 FUNCTION ROOMS SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE10 FLAGSHIPS SWISSÔTEL SYDNEY, AUSTRALIA

369 ROOMS & SUITES 2 BARS & RESTAURANTS 8 FUNCTION ROOMS SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE11 FLAGSHIPS SWISSÔTEL CHICAGO, USA

661 ROOMS & SUITES 3 BARS & RESTAURANTS 7 FUNCTION ROOMS SPA & SPORT

WHY INVEST IN SWISSÔTELNETWORK & PIPELINE12 VITALITY FOR BODY & MIND The Vitality programme reflects Swissôtel’s mind-set: open, happy, energetic and passionate. Vitality is also Swissôtel’s initiative to help guests maintain their mental and physical fitness while on the road. Key products and services include: - Vitality Coffee Breaks - Vitality Menus - catering to diets and allergies - Vitality Drinks Menu - Vitality Activities - Jogging maps, Destination walks, In-room fitness equipment, mindfulness activities

WHY INVEST IN SWISSÔTELKEY IDENTIFIERS13 PÜROVEL The Pürovel philosophy is derived from the origin of wellbeing and use of nature’s resources. The Pürovel essence is transfused in Pürovel Spa & Sport facilities, Pürovel bathroom amenities & Pürovel signature treatments.

Swissôtel Resort, Bodrum Beach Swissôtel Bremen

Swissôtel Kunshan PROVIDING ALPINE INSPIRED WELL-BEING

Swissôtel Resort, Bodrum Beach Swissôtel Le Concorde, Bangkok WHY INVEST IN SWISSÔTELKEY IDENTIFIERS14 SUSTAINABLE EXCELLENCE Reliable. Sincere. Visionary. Commited

With the Sustainability Report 2018, we will have 9 years of solid data Swissôtel is certified on international sustainability standards

Quality Management (ISO 9001) Environmental Management (ISO 14001) Health & Safety Management (OHSAS 18001)

WHY INVEST IN SWISSÔTELKEY IDENTIFIERS15 SWISSÔTEL DESIGN Functional Design Using genuine materials, intelligent innovation and high quality craftsmanship – we appeal to all five senses. We combine Swissness with the local story.

Swissôtel The Bosphorus, Istanbul Swissôtel The Bosphorus, Istanbul

Swissôtel The Stamford, Singapore Swissôtel Zurich Circadian lighting panel used in our Vitality Room, Zurich WHY INVEST IN SWISSÔTELKEY IDENTIFIERS16 THE QUARTER SIGNATURE RESTAURANT CONCEPT

Totally Swiss, Definitely local

Swissôtel Resort, Bodrum Beach WHY INVEST IN SWISSÔTELKEY IDENTIFIERS17 SWISSÔTEL COMMUNICATION

BRAND CAMPAIGN AWARDS & ACCOLADES 2018 Focus: ASPAC, Business segment & Families Swissôtel properties won more than 65 sought after hospitality awards

• Swissôtel Krasnye Holmy, Moscow earned two World Luxury Hotel Awards • Swissôtel Grand, , Swissôtel Kunshan and Swissôtel Kolkata all received TripAdvisor’s Certificate of Excellence • Swissôtel The Stamford, Singapore named the Best 5* Business Hotel in Singapore by Travel & Tour Awards

As of end 2017

WHY INVEST IN SWISSÔTELCOMMUNICATION18 Swissôtel outperforms its footprint in awareness, with a perception of high-quality, and a positive “well-being” positioning.

• Swissôtel records a low but respectable level of awareness despite its limited network. • Compared to much bigger legacy giants, Swissôtel is struggling to emerge as a strongly loved brand worldwide. But in 2 countries, & USA the image is positive and valued: more contemporary, more leisure, more intimate, with a high status level. This allows the brand to achieve a higher perceived price premium in these 2 countries. • Swissôtel must reinforce its only real emotional hook – F&B – and ensure each hotel makes it a talking point. • Overall, the Swiss origin, bringing quality and efficiency, and genuinely caring for guests, is clearly perceived by the brand’s frequent guests.

Source: 2017 BEAM Study WHY INVEST IN SWISSÔTELCOMMUNICATION19 SWISSÔTEL TOTAL AWARENESS

Within the all travellers sample, Swissôtel obtains excellent awareness scores in Switzerland but also Turkey or Thailand

Base: people having stayed in paid-for accommodation in the last 12 months

Research conducted by BDRC Continental. Figures as of end 2017

WHY INVEST IN SWISSÔTELPERFORMANCE20 REPUTATION PERFORMANCE SCORE 2017

Source: TrustYou. Figures as of end 2017

WHY INVEST IN SWISSÔTELPERFORMANCE21 ACCORHOTELS DISTRIBUTION SOLUTION ACCORHOTELS OFFERS > 110 GLOBAL DISTRIBUTION PARTNERSHIPS AT BEST MARKET CONDITIONS

Research conducted by BDRC Continental. Figures as of end 2017

WHY INVEST IN SWISSÔTELPERFORMANCE22 SWISSÔTEL DISTRIBUTION PERFORMANCE POWERED BY ACCORHOTELS

FOCUS ON WEB DIRECT CALLS CENTRES, INTRA HOTEL & CLUSTER SERVICES 21.2% DIRECT SALES 32% Mobile reservations in Web reservations

ACCORHOTELS WEB 16% WEBSITES, MOBILE SITES & APP

16% 58% 42% GLOBAL AVERAGE LENGTH OF STAY HOTEL ACCORHOTELS PMS CENTRAL RESERVATION SYSTEM 19%

7%

WEB PARTNERS (OTAS)

GDS/IDS 36% INDIRECT SALES

Figures as of end 2017, for LUXE brands

WHY INVEST IN SWISSÔTELPERFORMANCE23 LE CLUB ACCORHOTELS ACCORHOTELS OWNS THE MOST POWERFUL INTERNATIONAL PROGRAM A Worldwide program: Guests’ origin - Worldwide 14 brands 3,400 hotels in 93 countries Loyalty members - Worldwide Free enrollment 100% Web based program Le Club AccorHotels FRS loyalty program Huazhu loyalty program More than 23,000 new members every day Le Club AccorHotels represents 30.6% of AccorHotels revenue Partnerships with large Airlines loyalty program: Skyteam, One World, Star Alliance…

30,6% 50M +23,000 Global average Members worldwide new members every contribution to hotel’s day revenue

Figures as of end 2017. Swissôtel will join Le Club AccorHotels on July, 2nd 2018 WHY INVEST IN SWISSÔTELPERFORMANCE24 SWISSÔTEL PERFORMANCE REVPAR INDEX AS OF END 2017

RUSSIA AMSTERDAM 1 Swissôtel hotel 1 Swissôtel hotel with revPAR index = 142 with revPAR index = 138 SHANGHAI & BEIJING BASEL & ZURICH 2 Swissôtel hotels 2 Swissôtel hotels with revPAR index = 108 to 112 with revPAR index = 114 to 116

ANKARA & ISTANBUL 2 Swissôtel hotels OSAKA with revPAR index = 145 to 149 1 Swissôtel hotel with revPAR index = 127

SINGAPORE 1 Swissôtel hotel with revPAR index = 111

SYDNEY 1 Swissôtel hotel with revPAR index = 113

As of end 2017 - STR or Hospitality On source: only subsidiary or managed hotel RGI versus its competitive set

WHY INVEST IN SWISSÔTELPERFORMANCE25 DEVELOPMENT CRITERIA PROGRAMMING AND DEVELOPMENT RECOMMENDATION

AAA ultra city center location, WORLDWIDE historic conversion

RECOMMENDED 200 keys and more 200 keys and more NUMBER OF ROOMS

ROOM AVERAGE SIZE -15%/-20% of worldwide 30 – 36 sqm

HOTEL TGFA / ROOM -15%/-20% of worldwide 75 – 110 sqm

RECOMMENDED NUMBER OF ROOMS 150 keys and more 200 keys and more 32 -38 sqm 36 - 42 sqm ROOM AVERAGE SIZE PRIME SECONDARY AIRPORTS + balcony + balcony LOCATIONS LOCATIONS SUBURBS

RESORT TGFA / ROOM 90 – 118 sqm 100 -130 sqm

Breakfast Restaurant INTERNATIONAL Speciality Restaurant/ FOOD & BEVERAGE CAPITALS 1 Bar at a minimum, KEY CITIES & RESORTS Vitality week (1) >250 keys = Pürovel Spa and Sport MAJOR DOMESTIC (more than 4 treatment rooms and 4 spa amenities)(1) DESTINATIONS WELL-BEING <250 keys = Pürovel Sport (minimum 2 treatment rooms but less than 4 and 3 spa OTHER CITIES & amenities) ATTRACTIVE TOURISTIC Key Meeting rooms DESTINATIONS MEETINGS Ballroom(1)

(1) Based on market demand WHY INVEST IN SWISSÔTELPERFORMANCE26 27