EN Hotel Development Why invest in MGallery by Sofitel

F E B R U A R Y 2 0 1 8

IN MGALLERY

A C C O R H O T E L S G L O B A L D E V E L O P M E N TF E B R U A R Y 2 0 1 8

WHY INVEST

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / P O S I T I O N I N G 2

Harbour Rocks Hotel Sydney, Australia – 59 rooms Figures as of end 2017

STORIES THAT STAY

“MGallery is a collection of storied boutique hotels to discover

the world and beyond, providing a delightful and unique

experience inspired by the local essence of the hotel and its

authentic story”

BRAND POSITIONINGBoutique Upper Upscale

GUEST PROFILEBusiness 38% / Leisure 62%

Domestic 49% / International 51%

F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / P O S I T I O N I N G

A flexible brand in the Upper Upscale segment.

Our guests can discover the world thanks to over 90 properties in the 24 countries, and beyond…as they will live unique experiences in MGalleryhotels. The Memorable moments are exclusively created by each hotel to make the guests discover something exceptional from the destination orthe hotel itself. It goes from secret wine tasting as in Hotel de la Cité in Carcassone to a helicopter flight for a picnic on a mountain in New Zealand

MGALLERY IS…

DELIGHTFUL SINGULAR INSPIRED ENRICHED

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OF MGALLERY GUESTS ASSOCIATE THE BRAND WITH “STORIED BOUTIQUE HOTELS”, CONFIRMING A VERY CLEAR, DISTINCT AND ENGAGING POSITIONING79%

F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / K E Y F I G U R E S

OVERALL MGALLERY BRAND PERFORMANCES

SUSTAINED REVPAR GROWTH, GROWING RPS TREND, GOOD DEVELOPMENT

Figures as of end 2017

93%Of MGallery customer customers are

either satisfied or very satisfied by their stay experience

>70%Central Reservation System brand average

contribution rate and 46% web contribution

99€+8% vs last year

RevPAR YTD December 2017

90 hotels

As of December 2017

73% +4pt

Engagement rate

12hotels opened in 2017:

France, Italy, UK, Ukraine, Bosnia Herzegovina, United Arab Emirates,

New Zealand, Thailand

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / N E T W O R K & P I P E L I N E

EUROPE54 hotels

5,084 roomsPipeline +779 rooms

ASPAC29 hotels

3,384 roomsPipeline +2,716 rooms

MIDDLE-EAST & AFRICA5 hotels

668 roomsPipeline: +737 rooms

AMERICAS3 hotels

359 roomsPipeline: +193 rooms

91 hotels with 9,465 rooms in 25 countriesin prime locations & attractive tourist destinations

NETWORK VS PIPELINE

FRANCHISE CONTRACT - 42% MANAGEMENT CONTRACT - 58%

OPERATING MODE

Santa Teresa Hotel Rio de Janeiro – BRAZIL44 rooms

The Retreat Palm Dubai – UAEOpening 2017 – 255 rooms

Hotel Lindrum Melbourne – AUSTRALIA59 rooms

INK Hotel Amsterdam – NETHERLANDS149 rooms

54%

36%

7%

4%

100%

Geographical split

9,465 ROOMS & 4,425 ROOMS

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K E Y U P C O M I N G O P E N I N G S

EUROPE

• Germany, Hamburg Globushof, 155 rooms

• Israel, Tel Aviv, Alkunin Mgallery, 44 rooms

• Poland, Wroclaw, 184 rooms

• Turkey, Istanbul Galata, 83 rooms

MIDDLE-EAST – AFRICA

• Ethiopia, Addis Abeba, 218 rooms

• Qatar, Doha Musheireb, 213 rooms

• Saudi Arabia, Jeddah King’s walk, 181 rooms

ASIA PACIFIC

• Australia, Sydney Porter House Hotel, 121 rooms

• China, Guangzhou, The Riverside, a member of Mgallery Collection, 110 rooms

• Hong-Kong, Citygate Hotel Hong Kong, 200 rooms

• India, MGallery Chennai Kotturpuram, 145 rooms

• Myanmar, Mandalay Hill, 150 rooms

• New Zealand, Auckland Eden Crescent, 69 rooms

• Philippines, Manila, 126 rooms

• Thailand, The Heritage Phuket Patong, 150 rooms

• Vietnam, Sapa Star Hotel, 249 rooms

AMERICAS

• Argentina, Callao Buenos Aires, 113 rooms

• Peru, Cusco, MGallery Urubamba Cusco, 80 rooms

Secured Pipeline from January 2018 to July 2021

MGallery Addis Abeba, ETHIOPIAOpening 2018 – 218 rooms

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / N E T W O R K & P I P E L I N EF L A G S H I P SH O T E L M O L I T O R , PA R I S , F R A N C E1 2 4 R O O M S

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / N E T W O R K & P I P E L I N EF L A G S H I P SB A N G K O K H O T E L M U S E L A N G S U A N , T H A I L A N D1 7 4 R O O M S

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F E B R U A R Y 2 0 1 8F L A G S H I P SM G A L L E R Y S A N TA T E R E S A , B R A Z I L4 4 R O O M S

F E B R U A R Y 2 0 1 8F L A G S H I P ST H E R E T R E AT PA L M D U B A I , U A E2 5 5 R O O M S

F E B R U A R Y 2 0 1 8F L A G S H I P SH O T E L D E S A R T S , S A I G O N , V I E T N A M1 6 8 R O O M S


H O T E L L E L O U I S , V E R S A I L L E S , F R A N C E1 5 2 R O O M S

V I C T O R Y H O U S E , L O N D O N L E I C E S T E R S Q U A R E , U K8 6 R O O M S

T A R C I N F O R E S T R E S O R T & S P A , B O S N I A H E R Z E G O V I N A6 5 R O O M S

H O T E L G R A N D W I N D S O R , A U C K L A N D , N E W Z E A L A N D7 9 R O O M S

L A T E S T O P E N I N G S12

F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / K E Y I D E N T I F I E R S

HOTEL NAME, LOGO & STORY

INSPIRED BY HER MEMORABLE MOMENT LE KIOSQUE -OPTIONAL

HOTEL SCENT

MGALLERY BY SOFITEL BRAND MARKERS

BRAND NAME PLATE

MOOKSTATIONARY & COLLATERALS

HOTEL IDENTITY & STORY BRAND VISUAL IDENTITY

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THE STORM

ONE HOTEL, ONE STORY, ONE STORM

The STORM: a pragmatic bottom-up marketing innovative approach based on creative co-construction Aimed at revealing and crafting the “true natural story” of each hotel and bring it to life

The STORM is both fundamental and mandatory in the brand integration process

PRODUCTS & SERVICES LINKED TO THE HOTEL STORY

WELCOME & FAREWELL GIFT SERVICE RITUAL ICONIC DESIGN ELEMENTS SIGNATURE DRINK UNIFORM DETAIL

BREAKFAST PRODUCT SUITE PERSONALIZATION ICONIC POSTCARDBED TIME STORIES MEMORABLE MOMENTS X2

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BESPOKE DESIGN

CONTEMPORARY & AUTHENTIC DESIGN LINKED TO THE HOTEL STORY

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Each MGallery hotel has a unique story to tellAt MGallery we aim at reinventing the path

more than just preserving it

Intimacy at MGallery is all about making big spaces feel small and making small feel

beautiful

THE POWER OF STORYTELLING MODERN TWIST INTIMACY


INSPIRED BY HER WELLBEING AT MGALLERY

A selection of thoughtful gestures and careful consideration designed to address the unique expectations of women

travelers while appealing to all.

Wellbeing at MGallery is about self care and teaching our guests how to indulge, whether a spa is available or not at

the hotel. It is designed to answer female needs and expectations, while being inclusive for men

WELLBEING FOR WOMEN – INSPIRED BY HER

TAKING CARE OF OUR GUEST’S BODY, MIND AND SOUL

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MEMORABLE MOMENT

Every MGallery hotel creates a truly singular, charming and often extravagant experience of the destination that leaves guests with unforgettable memories. The Memorable Moment is exclusive yet accessible to the target guest.

MEMORABLE MOMENT

TO DISCOVER THE WORLD AND BEYOND…THANKS TO UNIQUE EXPERIENCES

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / C O M M U N I C A T I O N

MGALLERY COMMUNICATION

MGallery Instagram account –10k followers & 3 major sponsored campaigns per year

MGallery LinkedIn account –1000 followers

THE OBJECTIVE TO INCREASE PRESENCEON INSTAGRAM & TWITTER

PR, EVENTS & PARTNERSHIP: RAISE BRAND AWARENESS AND NOURISH BRAND PILLARS

INES DE LA FRESSANGE Global Ambassador of the brand

Inspired by Her Events ELLE DECO International Design

Awards

PAID, MEDIA CAMPAIGNS: INVEST ON DIGITAL & NEW PLATFORMS TO RAISE AWARENESS

Nowness short movie, A Hotel Story 2,4M views on Nowness social media platforms

Vanity Fair & ELLE – Print & Digital3,4M impressions on digital

IN-HOTEL, THE MOOK: A BRAND MAGAZING SHOWCASING THE MGALLERY COLLECTION

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / P E R F O R M A N C E

HIGH E-REPUTATION PERFORMANCE SCORES IN THE NETWORK

RPS YTD DECEMBER 2017

AMERICAS

89%

AFRICA

86%

ASPAC

88%

FR & SWI

88% CENTRAL & EASTERN EUROPE

87%REST OFEUROPE

86%

MIDDLE EAST

85%

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F E B R U A R Y 2 0 1 8W H Y I N V E S T I N M G A L L E R Y / P E R F O R M A N C E 20

ACCORHOTELS DISTRIBUTION SOLUTION

ACCORHOTELS OFFERS >110 GLOBAL DISTRIBUTION PARTNERSHIP AT BEST MARKET CONDITIONSTHE CENTRAL RESERVATION SYSTEM GENERATES ON AVERAGE 66% OF A HOTEL ROOM REVENUE

WEB PARTNERS

CALL CENTERS

INTRA HOTEL&

CLUSTER RESERVATION SERVICE

GDS/IDS

France

Wroclaw – Poland

Rabat – Morocco

Sao Paulo – Brazil

Bangalore – India

Dalian – China

Sydney – Australia

Moncton – USA

Bangkok – Thaland

Indonesia - Jakarta

10 callcenters in 18languages

CRS2%

16%

16%

25%

HOTEL PMS

7%34%

66%

WEB ACCORHOTELS, WEBSITES, MOBILE & APP

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FOCUS WEB DIRECTWebsites + Mobiles

381,000 MGallery room nights

€58 M MGallery room revenue,

+61% Mobile Growth

(MGallery room revenue)

29%HOTELPMS

71%OF MGALLERY ROOM

REVENUE COMES THROUGH ACCORHOTELS CENTRALE RESERVATION

SYSTEMS

CALL CENTERS, INTRA HOTEL& CLUSTER SERVICES

ACCORHOTELS WEB, BRANDS’ WEBSITES, MOBILE SITES & APP

WEB PARTNERS(OTAS)

GDS/IDS

38% DIRECT SALES

33% INDIRECT SALES

20%

18%

27%6%

MGALLERY DISTRIBUTION PERFORMANCE

POWERED BY ACCORHOTELS

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LE CLUB ACCORHOTELS

ACCORHOTELS OWNS THE MOST POWERFUL INTERNATIONAL PROGRAM

2012 2013 2014 2015 2016 2017

Loyalty members - Worldwide

Le Club AccorHotels FRS loyalty program Huazhu loyalty program

A Worldwide program:

14 brands

3,400 hotels in 93 countries

Free enrollment

100% Web based 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…

106M

145M

Americas17%

Asia-Pacific28%Mediterranean,

Middle East & Africa12%

Central & Eastern Europe

12%

France13%

Northern Europe18%

Guests’ origin - Worldwide

>40 MILLION MEMBERS

WORLDWIDE

+23,000

MEMBERS EVERY DAY

LE CLUB ACCORHOTELSREPRESENTS

32%OF MGALLERY GLOBAL

REVENUE

LE CLUB ACCORHOTELS

MEMBERS AVERAGE REVENUE SPENT PER

STAY IN 2017 IN MGALLERY HOTELS

€441

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

SYDNEY & MELBOURNE2 MGallery Hotels

with revPAR Index: 115 to 129

PARIS & LYON2 MGallery Hotels


BATH – CHELTENHAM – WINDSOR

(UNITED KINGDOM)3 MGallery Hotels


GENEVA & INTERLAKEN2 MGallery Hotels


STRONG PERCORMANCE OF MGALLERY HOTELS WHEN COMPARED TO COMPETITION

REVPAR INDEX AS OF END 2017

GLOBAL AVERAGE TOPLINEOccupancy rate : 68%

Average room rate : €152

€104 (HT)REV/PAR

PRAHA1 MGallery Hotel

with revPAR Index: 107

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DEVELOPMENT CRITERIA

PROGRAMMING & DEVELOPMENT

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AAA ultra city center location, historic

conversionWORLDWIDE

RECOMMENDEDNUMBER OF ROOMS

100-150 keys 100-150 keys

ROOM AVERAGE SIZE 20 -30 sqm 28 – 36 sqm

TGFA / ROOM 50 – 75 sqm 65 – 100 sqm

RECOMMENDEDNUMBER OF ROOMS

80 – 120 keys 100 - 150 keys

ROOM AVERAGE SIZE28 – 36 sqm

+ balcony30 – 40 sqm

+ balcony

TGFA / ROOM 50 - 75 sqm 72 – 110 sqm

FOOD & BEVERAGE

1 Restaurant1Bar1 ‘S’ room (nice to have)

WELL-BEING

Spa required for Serenity hotelFitness CentreSwimming pool (nice to have)

MEETINGSMeeting roomsBusiness corner

HO

TEL

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T

PRIME LOCATIONS

SECONDARYLOCATIONS

AIRPORTSSUBURBS

INTERNATIONAL CAPITALS KEY CITIES & RESORTS

MAJOR DOMESTIC DESTINATIONS

OTHER CITIES & ATTRACTIVE TOURISTIC DESTINATIONS

F E B R U A R Y 2 0 1 8

Hotel Muse Bangkok, MGallery Collection, THAILAND – 174 rooms

Documents

EN Hotel Development Why invest in MGallery by Sofitel