J.D. Power Asia Pacific Reports: Staff and Services Improve Guest Satisfaction

The Ritz-Carlton, Fujiya Hotel, JR Kyushu Hotel and Super Hotel Rank Highest in Hotel Satisfaction in Their Respective Segments

TOKYO: 26 November 2014 — Enhancement of guest services and staff attentiveness increase guest satisfaction and their intent to stay at that hotel again, according to the J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM released today.

The study, now in its ninth year, measures hotel guest satisfaction across seven factors: reservations; check-in/ check-out; guest rooms; food and beverage1; hotel services; hotel facilities; and cost and fees. are evaluated in four segments, which are based on the room rate per night and guest room size.

The study finds that overall guest satisfaction is 40 points higher (on a 1,000-point scale) among guests who used a hotel service such as the fitness or bath facilities, laundry service, in-room service or Internet access than among guests who did not use a hotel service. Overall satisfaction is 70 points higher among guests who used multiple services.

In addition, overall satisfaction among guests who have interaction with the hotel staff during their stay, such as a greeting from the housekeeping staff or a restaurant server is more than 50 points higher for high-price hotels (727 vs. 654) and more than 30 points higher for low-price hotels (642 vs. 592) than among guests who have no interaction with the hotel staff during their stay.

Furthermore, satisfaction increased by an additional 50 points when guests indicated that the hotel staff “always smiled.”

“Many hotel chains have made long-term investments to improve their properties, and are benefitting from increased satisfaction when their guests utilize their services,” said Chie Numanami, senior manager at J.D. Power Asia Pacific. “However, as part of the investment is in automated methods of check-in and check-out that tend to reduce the number of human touch points, it is important that they use the additional staff time gained to offer a warmer, more personalized experience for their guests as the people aspect plays a vital role in guest satisfaction and loyalty.”

The study finds that satisfaction leads to an increase of approximately 50 percent in revisit intention. Among guests who have interaction with hotel staff, 32 percent indicate they intend to stay at that hotel again. Intended loyalty drops to 22 percent among guests who do not have interaction with hotel staff.

KEY FINDINGS

 Of the 2,089 hotels of the 142 chains examined in the study, 44 were new hotels that opened between July 2013 and June 2014. Although the 44 new hotels have higher satisfaction scores than existing hotels (689 vs. 659), this is only because high ratings for guest rooms and hotel facilities boost overall satisfaction.

1 In the less than ¥9,000 per night segment, breakfast is a factor rather than food and beverage.

 Among guests at the new hotels, 38 percent the hotel staff provided warm, attentive service, while 40 percent of guests at existing hotels indicated the same.  Twenty percent of hotel guests indicate they have experience a check-in and 23 percent have a problem with their room reservation.

Hotel Highlights The following hotel brands rank highest in guest satisfaction within their respective segments:

¥35,000 or More per Night Segment The Ritz-Carlton ranks highest for the ninth consecutive year, with an overall score of 776. The Ritz-Carlton performs particularly well in the reservations, guest rooms, food and beverage, hotel facilities and hotel services factors. Imperial Hotel ranks (767) and performs particularly well in the check-in/check-out and cost and fees factors, while Westin (714) ranks third.

¥15,000 to Less than ¥35,000 per Night Segment Fujiya Hotel Chain ranks highest with a score of 718. Fujiya Hotel Chain performs particularly well in the food and beverage, check-in/check-out and hotel services factors. Renaissance (717) ranks second, performing particularly well in the guest rooms and reservations factors. Royal Park (710) ranks third and performs particularly well in the hotel facilities factor.

¥9,000 to Less than ¥15,000 per Night Segment JR Kyushu Hotel ranks highest with a score of 672. JR Kyushu Hotel performs particularly well in the hotel facilities factor. Richmond Hotel (669) ranks second and performs particularly well in the guest rooms, check-in/check-out and reservations factors. Candeo Hotels (666) ranks third and performs particularly well in the cost and fees and food and beverage factors.

Less than ¥9,000 per Night Segment Super Hotel ranks highest with a score of 654, performing particularly well in the guest rooms, check-in/check-out and reservations factors. Chisun Inn (637) ranks second and Comfort (634) third.

The 2014 Japan Hotel Guest Satisfaction Index Study is based on responses from 20,840 guests 18 years and older who stayed in a hotel in Japan during the previous 12 months. The online study, which examines 142 hotel groups and chains nationwide, was fielded in August 2014’

About J.D. Power Asia Pacific: www.jdpower.com About J.D. Power and Advertising/Promotional Rules www.jdpower.com/corporate About McGraw Hill Financial www.mhfi.com

Media Relations Contacts Office Locations Shizue Hidaka; Minato-ku, Tokyo, Japan +81-3-4550-8090; [email protected] John Tews; Troy, Michigan USA; 001 248 680 6218; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power. www.jdpower.com

# # # (Page 2 of 2) Note: Four charts follow.

J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM Overall Hotel Guest Satisfaction Index Ranking ¥35,000 or More per Night Segment (Based on a 1,000-point scale） JDPower.com Power Circle RatingsTM for consumers: 500 600 700 800

The Ritz-Carlton 776

Imperial Hotel 767

Segment Average 720

Westin 714

Hotel Okura 713

Hyatt Regency 713

InterContinental 708

Sheraton 705

The Prince 695

Hotel New Otani 690

Power Circle Ratings Legend Among the best Better than most Included in the study but not ranked due to small sample size are: Andaz; Brighton Hotel; About average Conrad; Four Seasons; Grand ; Mandarin Oriental; Marriott; Park Hyatt; St. Regis; The rest Shangri-La; Swissotel; and The Peninsula.

Source: J.D. Power Asia Pacific 2014 Japan Hotel Satisfaction Guest Satisfaction Index StudySM

Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the study from which it originated as the source. Rankings are based on numerical scores and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.

J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM Overall Hotel Guest Satisfaction Index Ranking 15,000 Yen to Less than 35,000 Yen per Night Segment (Based on a 1,000-point scale） JDPower.com Power Circle RatingsTM for consumers: 500 600 700 800 Fujiya Hotel 718 Renaissance 717 Royal Park 710 Hotel Associa 704 Tokyu Hotel 698 Odakyu Hotel 697 Rihga Royal Hotel 697 Tokyu Resort 695 Hilton 691 689 Metropolitan Hotel 684 La Vista 679 ANA 678 Grand Prince 667 Hotel Monterey 667 Keio Plaza Hotel 666 Segment Average 663 Hotel Granvia 660 Tokyo Dome Hotel 659 Miyako Hotel 655 Loisir Hotel 653 Excel Hotel Tokyu 646 View Hotels 642 ANA Hotels 640 Daiwa Royal Hotel 635 Kowakien 635 Prince Hotel 634 633 Hankyu-Hanshin-Daiichi Hotel 632 Hotel Keihan 625 Tobu Hotel 617

Included in the study but not ranked due to small sample size are Art Hotels; Chisun Grand; Power Circle Ratings Legend Chisun Resort; Creston Hotels; Cross Hotel; Grand Vrio; Hotel Marroad; ; ; Among the best Palace Hotel; Raddison; Rembrandt Hotel; Remm; Royal Pines; and the b. Better than most About average Source: J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM The rest Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the study from which it originated as the source. Rankings are based on numerical scores and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.

J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM Overall Hotel Guest Satisfaction Index Ranking ¥9,000 to Less than ¥15,000 per Night Segment (Based on a 1,000-point scale） JDPower.com Power Circle RatingsTM for consumers: 500 600 700

JR Kyushu Hotel 672 Richmond Hotel 669 Candeo Hotels 666 Daiwa Roynet 665 Mitsui Garden 665 Hotel JAL City 655 Dormy Inn 650 Hotel Mets 645 Keikyu EX Inn 641 Segment Average 640 Hotel Resol 628 Tokyu Inn 624 Sotetsu Fresa Inn 623 Sunroute 617 Hotel Villa Fontaine 612 Washington Hotel 612 Hearton Hotel 611 Hotel Unizo / Unizo Inn 600

Included in the study but not ranked due to small sample size are: Familiao; Fifty’s; Folkloro; Power Circle Ratings Legend Grand Park; ; Hotel Crown Palace; Hotel Fujita; Hotel Gracery; Hotel Mystays; Hotel Among the best Paipunokemuri; Hotel Sealuck Pal; Hotel Skycourt; Hotel Tokyu Bizfort; Hotel Trusty; Hotel Better than most Vista; Leopalace Hotel; Lotte City Hotel; Okura Frontier Hotel; ; The Crest Hotel; About average Toei Hotel; and Vessel Hotel/ Vessel Inn. The rest Source: J.D. Power Asia Pacific 2014 Japan Hotel Satisfaction Guest Satisfaction Index StudySM Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the study from which it originated as the source. Rankings are based on numerical scores and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.

J.D. Power Asia Pacific 2014 Japan Hotel Guest Satisfaction Index StudySM Overall Hotel Guest Satisfaction Index Ranking Less than ¥9,000 per Night Segment (Based on a 1,000-point scale） JDPower.com Power Circle RatingsTM for consumers: 500 600 700

Super Hotel 654

Chisun Inn 637

Comfort 634

Viainn Hotel 630

Hotel Hokke Club 629

Hotel Route Inn 626

Nishitetsu Inn 620

Segment Average 614

Ark Hotel 612

Apa Hotel 611

HOTEL AZ 609

Hotel Alpha-1 609

Chisun Hotel 602

Toyoko Inn 600

R&B Hotel 594

Washington Hotel Plaza 591

Smile Hotel 590

Included in the study but not ranked due to small sample size are: BlueWave Inn, Court Hotels, E- Power Circle Ratings Legend Hotel, Good-Inn, Greenrich Hotel, Hotel 1-2-3, Hotel ABest, Hotel Active!, Hotel Ascent, Hotel Among the best Econo, Hotel No. 1, Hotel Pearl City, Hotel Select-Inn, Manten Hotel, Pearl Hotels, Rich Hotels, Better than most Route Inn Grantia, Sanco Inn, Toko City, Urban Hotel, and Wing International. About average The rest Source: J.D. Power Asia Pacific 2014 Japan Hotel Satisfaction Guest Satisfaction Index StudySM

Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the study from which it originated as the source. Rankings are based on numerical scores and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.