WHY INVEST IN RAFFLES - Accor

WHY INVEST IN RAFFLESACCORHOTELS GLOBAL DEVELOPMENTFEBRUARY 2018

An oasis for the Well TravelledDelivering Emotional LuxuryA destinationA beaconA safe havenA place to refresh and recuperateCalm and vibrantWhere cultures meetWhere stories are toldMeaning different things to different peopleDiscerningCulturally awareKnowledgeable and worldlyPioneeringNot for allWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance2

92/100High E-reputationperformance & positiveguest perceptionRaffles Has Real Value Around The WorldBrand average ratepremium versusindependent hotels84%of guests qualifyRaffles as iconicWhy invest in Raffles – February 2018PositioningPositioning KeyKeyfiguresfigures Network Network& pipeline& pipeline Key Keyidentifiersidentifiers Communication Communication Performance PerformanceFigures as of end 2017 783

One of the world’s iconic hotel brandCurrent Portfolio: 11 hotels, 1,927 rooms Pipeline: 8 properties 100% Managed henzhenDubaiHainanUdaipurManilaSiem ReapPhnom PenhMaldivesSingaporeCurrent HotelCurrent ResidentialSeychellesJakartaPipeline HotelPipeline ResidentialWhy invest in Raffles – February 2018PositioningPositioning KeyKeyfiguresfigures NetworkNetwork &&pipelinepipeline Key Keyidentifiersidentifiers Communication Communication Performance Performance4

When at Raffles,why not visit Singapore?103 rooms5

Palace & Parisian149 rooms6

252 rooms7

321 rooms8

86 rooms9

175 rooms10

119 rooms11

150 rooms12

214 rooms13

185 rooms14

173 rooms15

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Future Raffles ProjectsChinaShenzhen (2019) – 154 roomsRaffles The Palm, Dubai, UAE121 rooms - 2021Raffles Jeddah, Saudi Arabia181 rooms - 2021Raffles Udaipur, India101 rooms - 2019Raffles London, United Kingdom125 rooms - 2020ChinaSuzhou (2022) – 153 roomsGreeceMykonos (2021) – 104 roomsIndiaUdaipur (2019) – 101 roomsSaudi ArabiaJeddah (2020) – 181 roomsU.A.E.Dubai (2021) – 121 roomsU.K.London (2021) – 125 rooms17

SignatureProducts & ServicesOur hotels provide a sense of place unique to Raffles. Not a colonialreproduction but about a pioneering sense of style and attitude.From arrival, the environment, both inside and out whether it be anurban, resort or heritage property is always:elegantwelcomingof its cultureWhy invest in Raffles – February 2018PositioningPositioning Key Keyfiguresfigures Network Network& pipeline& pipeline Key Keyidentifiersidentifiers Communication Performance18

VisitThe Grand WelcomePre-Arrival Contact fromPrivate ButlerAlways greeted by theIconic Raffles Doorman(sense of ceremony and security)In-Car check-in prior toarrival or In-Room checkinThe Red CarpetDedicated/Private VIPArrivalThe Grand HallThe VerandahGrand sense of arrivalMajestic in feel, elegantlyand moderately scaledBespoke designedbotanical featuresCalm and intimate spacesto connect and converseLighting to accentuate thearchitecture and itsgrandeurA place to take in theamazing view and breatheInviting indoor andoutdoor connectionsin all living spacesBringing the Greenery ofnature indoors throughoutstanding botanicalsand romantic scentsCelebrating a flair for theexoticThe ColonnadeLong corridor fit forroyaltyTradition of grandeurSpecial photographicspacesPlaces to wander anddiscoverWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance19

StaySpace, Privacy & TimePre-Arrival Contact fromPrivate ButlerAlways greeted by theIconic Raffles Doorman(sense of ceremony andsecurity)In-Car check-in prior toarrivalor In-Room check-inThe Red CarpetDedicated/Private VIPArrivalPersonality SuitesThe Writers DeskGrand sense of arrivalA well-appointed desk,suitable for work or diningMajestic Named afterhistorical luminariesrelevant to hotel history orcultureArt, literature,photographs,memorabilia, music ormoviesshowcasing the luminariesand their passionA connection to Raffles’traditionThe style of a traditionalwriter’s desk with thetechnology to meet modernworking standardsA minimum of two-persondining when used instandard roomsThe Raffles Butler“Service like a GentleBreeze”You never realize they arethere, but you always missthem when you leavePre-arrival contact with guestto note their in-roompreferences24-Hour availabilityDedicated Butler’s Pantry onevery guest room floorRaffles SpaEach spa concept isunique to location,local culture andtraditionsCelebrating local ritualsand healing treatmentsFocus on privacyDedicated beauty andwellness offeringsin specific marketsJourney for the SensesWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance20

*The Writer’s Bar has a feature writing desk with photossuggesting literary legends connected to the hotel & cultureDine*Naming driven by market & locationDestination DiningDestination DiningDiverse dining experiences toengage different segmentsAll restaurants and food concepts tobe developed by F&B specialistconsultants with our F&B teamLibrary Lounge – TheWriter’s Bar*Quiet intimate bar/loungededicated for hotel guests orRaffles ClubResidential feel transformsfrom day to nightAccess from within the hotelIn some locations, a cigarloungeor humidor roomDestination Bar – The Long Bar*A lively vibrant bar with a warmwelcoming atmosphereSignature long bar as featureelement. Signature cocktails &rituals connected to the story andlocation. Dedicated street entranceDestination DiningRaffles Patisserie*Retail focus with BespokePackagingCan also service theLobby Lounge or Writer’s BarExternal street hotel entrancesRaffles Afternoon TeaTea cart service with ceremonialflairBest of British traditionwith a slice of local interpretationA collaboration withSipsmithRaffles 1915 Gin is asensational balance ofbotanicals found in Asia –jasmine flowers, freshpomelo peel, lemongrass,Kaffir lime leaf, nutmegand cardamom.Why invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance21

CommunicationRaffles MagazineContent partnershipSpecial Feature with Financial Times (Dec17 – Jan18)Mobile AdvertisingDigital AdvertisingOur mobile advertising partner allowsWorking with quality publishers such as Condé Nast or Hearstus to work with a number of premiumand selected bloggers, we can utilize existing and newlylifestyle brands including Britishcommissioned Raffles content to build dedicated pages on theirAirways and Harrods, to serve fullwebsites. Adds credibility to our brand message and content,screen advertisements in their appswhilst amplifying it to a broader audienceWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance22

Raffles Total AwarenessStrong awareness among affluent and engaged luxury hotel iaFranceGermanyUK28USA37MEAFigures as of end 2017. Base: people having stayed in paid-for accommodation in the last 12 monthsWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance23

Raffles Brand Margin raliaChinaJapanFranceUKGermany40MEABrand Margin in Brand Margin measures the financial premium which the brand name adds to the intrinsic value of the samehotel stay with an unbranded alternative. A Brand Margin of 10 means that « Consumers think it is worthpaying on average 10 more per night to stay with brand X compared to an unbranded equivalent ».Brand Margin in . Traveller representativeFigures as of end 2017Why invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance24

AccorHotels Distribution SolutionAccorHotels offers 110 Global distribution partnershipsat best market conditions10 callcenters in 18languagesFranceWroclaw – PolandRabat – MoroccoSearchSao Paulo – BrazilWeb AccorHotels,Websites, Mobile & APPBangalore – IndiaDalian – ChinaSydney – AustraliaMoncton – USABangkok – ThalandIndonesia - JakartaCallcentersIntra Hotel&ClusterReservationService16%2%16%CRSWeb Partners25%66%34%7%GDS/IDSHOTEL PMSFigures as of end 2017Why invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance25

AccorHotels Distribution PerformanceLUXE BrandsFOCUS ON WEB DIRECTCALLS CENTRES, INTRA HOTEL &CLUSTER SERVICESAccorHotels.com brands.com mobile websites32% DIRECT SALES16%16%ACCORHOTELS WEBWEBSITES, MOBILE SITES & APP 60%16%6.1M58%WEB ACCORHOTELSONLINE DIRECT SALESMOBILE GROWTHLUXE BRANDS ROOM REVENUE)RAFFLES ROOMREVENUE43%HOTELPMSACCORHOTELS CENTRALRESERVATION SYSTEM19%7%WEB PARTNERS (OTAS)GDS/IDSFigures as of end 201726% INDIRECT SALESWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance26

Le Club AccorHotelsAccorHotels owns the most powerful international programGuests’ origin - WorldwideLoyalty members - WorldwideLe Club AccorHotelsFRS loyalty programHuazhu loyalty programA Worldwideprogram:14 brands3,400 hotels in 93countriesFree enrollment100% Web based program145MMore than 23,000 newmembers every dayLe Club AccorHotelsrepresents 30.6% ofAccorHotels revenue106MPartnerships with largeAirlines loyalty program:Skyteam,One World, Star Alliance 40 MILLIONMEMBERS WORLDWIDE30.6% 23,000GLOBAL AVERAGECONTRIBUTION TOHOTEL’S REVENUEMEMBERS EVERY DAYFigures as of end 2017Why invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance27

Raffles performanceISTANBULOne Raffles Hotel withRevPAR index 152CHINAOne Raffles Hotels withRevPAR index 105DUBAI & MAKKAHTwo Raffles Hotels withRevPAR index 181 to 222SINGAPOREOne Raffles Hotels withRevPAR index 105CAMBODIAOne Raffles Hotels withRevPAR index 116Why invest in Raffles – February 2018PositioningPositioning KeyKey figuresfigures NetworkNetwork && pipelinepipeline KeyKey identifiersidentifiers Communication Communication Performance PerformanceFigures as of end 2017 - STR or Hospitality On source: only subsidiary or managed hotel RGI versus its competitive setRevPAR Index as of end 2017

Development CriteriaRESORTHOTELProgramming & Development RecommendationAAA ultra city center location,historic conversionWORLDWIDERECOMMENDEDNUMBER OF ROOMS70 – 200 keys100 – 200 keysROOM AVERAGE SIZE-10/-15% of worldwide60 sqm and TGFA / ROOM-10/-15% of worldwide130 – 150 sqmRECOMMENDEDNUMBER OF ROOMS40 – 80 villas60 – 100 villasROOM AVERAGE SIZE75 sqm indoor outdoor90 sqm indoor outdoorTGFA / ROOM150 – 170 sqm170 – 210 sqmFOOD & BEVERAGE2 restaurantsSpecialty restaurant(1)1 Long Bar (urban only)1 Writers BarRaffles PatisserieRaffles Spa(1)Luxury fitness centreSwimming ORTSSUBURBSINTERNATIONALCAPITALSKEY CITIES &RESORTSMAJOR DOMESTICDESTINATIONSOTHER CITIES &ATTRACTIVETOURISTICDESTINATIONSMeeting rooms(1)Bellroom (1)Raffles LibraryBusiness Centre availableMEETINGS(1)Based on market demandWhy invest in Raffles – February 2018Positioning Key figures Network & pipeline Key identifiers Communication Performance29

The Grand Welcome Pre-Arrival Contact from Private Butler Always greeted by the Iconic Raffles Doorman (sense of ceremony and security) In-Car check-in prior to arrival or In-Room check-in The Red Carpet Dedicated/Private VIP Arrival The Grand Hall Grand sense of arrival Majestic in f