Development of Growth & Expansion Strategy for Client X .

1. Development of Growth & Expansion Strategy for Client X. Final Report – Executive Summary 9 June 2008

2. Agenda • Approach • Industry overview • Sector analysis • Strategic options • Selected strategy • Next steps

3. Bring Client X management up to same level of understanding of global and regional hotel industry • Discussion of: • market s and segments that present opportunities for growth • Agree on preliminary list of countries for further work • Growth opportunities via M&A/JV/Alliance • Analysis of 3 strategic options available to Client X • Supporting Client X management in deciding on strategic option • Detailed analysis and formulation of Client X’s strategy based on the review of strategic options • Define strategic initiatives and finalise findings • Minutes from workshop • List of markets and segments selected as priority growth opportunities • List of priority targets • Agreed priorities for next phase • Minutes from workshop • Chosen strategy and strategic initiatives • Agreed priority for next phase • Minutes of workshop • Chosen strategy for Client X • Agreed final form of deliverable for Board • Final Board presentation summarising data supporting strategic initiatives • Discussion by Client X Board to agree 3-5 options for further study in Phase 2 • Agreement of options with Deloitte • Discussion by Client X Board to agree option for further study in Phase 3 • Agreement of option with Deloitte • Confirmation of agreed strategy • [Implementation] Outline of the Project The project consisted of four phases, culminating in final deliverables and board presentation Phase 1 – Strategy Validation Phase 2 – Review of Strategic Options Phase 3 – Detailed analysis and strategy formulation Phase 4 – Final Deliverables and Board presentation Purpose Output Actions

4. Agenda • Approach • Industry overview • Market overview • Key considerations • Sector analysis • Strategic options • Selected strategy • Next steps

5. Industry Overview: The Shareholder Value Model The five ‘mega’ trends that will have the greatest impact in share holder value Brand Business model Emerging markets Mega-trends Technology Human assets

6. Degree of volatility1 based on market conditions Low High Industry Overview: Operating Models Whilst all forms of ownership model are employed at the bottom of the market segment scale, the higher up the chain, the ownership model options narrow to owned and managed for reasons of brand integrity. However the level of sensitivity to variations in market conditions increases with both degree of ownership and market segment Owned/leased Managed Degree of influence over asset/Ownership model Franchised Mid-Market Upper Upscale Budget Luxury Economy Upscale Level of market segment Note: 1. Volatility of profit to hotel branded chain, not individual hotel Source: Deloitte Analysis

7. Industry Overview: Organisational Structures There are four organisational structure models. The choice of structure will depend on the stage of development and suitability for the hotel portfolio given strategic goals Regional Global / Functional Brand-centric Portfolio Source: Deloitte Analysis

8. Industry Overview: Demand & Supply – Global Europe continues to dominate regarding total spend by international visitors; however, forecasts for Asia-Pacific focus countries and the Middle East and Africa show high growth by branded hotel room supply and international visitors International visitor demand vs. branded room supply, 2007-09 Growth in international visitors Many deals already completed in Middle East, which may suggest fewer opportunities Asia Pacific Middle East and Africa Potential in Location A due to increase in domestic travel Europe Latin America North America Total international visitor spend, size = USD 60bn Growth in branded rooms Note: Supply data is based on all global and regionally branded hotels, international visitor spend data is based on average trip spend excluding spend on transport to destination Source: Lodging Econometrics; World Travel and Tourism Council; Deloitte Analysis

9. Domestic International Industry Overview: Demand & Supply – Int’l Overnight and Dom. Trips Location A leads Asia-Pacific with the largest number of both domestic and international trips Domestic and International Trips by Country (2007) Million Trips Benchmark * Note: International demand is determined by international overnight trips for 2007. Domestic trips are for 2007 and are defined as travel of 50 miles or more, each way, which includes an overnight stay. *Due to rounding of decimal places, totals might not always correspond exactly to the sum. Source: Euromonitor; World Travel and Tourism Council; Deloitte Research & Analysis.

10. Industry Overview: Demand & Supply – Domestic Trips Leisure is the main driver for domestic travellers Domestic Business and Leisure Trips (2007) Million Trips Benchmark Data not available Note: International demand is determined by international overnight trips for 2007. Domestic trips are for 2007 and are defined as travel of 50 miles or more, each way, which includes an overnight stay. Source: Euromonitor; World Travel and Tourism Council; Deloitte Research & Analysis. Leisure Business

11. 2007 Total number of Trips. Size = 250m Industry Overview: Demand & Supply – Asia-Pacific Growth in room supply and demand is expected in Asia-Pacific lead by Location A and India. These also had the largest number of trips among the Asia-Pacific focus countries for 2007 Total Demand Growth vs. Branded Room Supply Growth (2007-09) Percent Growth in domestic and international trips Growth in branded rooms Note: Demand growth is international and domestic travellers Source: Euromonitor; Mintel; Lodging Econometrics; World Travel and Tourism Council; Deloitte Research & Analysis.

12. Branded Rooms Total Rooms Industry Overview: Demand & Supply – Penetration of Room Supply Compared to the US and UK markets, there is potential within Asia-Pacific for increasing the current penetration of branded rooms Hotel Room Supply per Trip by Branded (2006) vs Total Rooms (2007) Rooms per Thousand Trips Benchmark US Branded UK Branded Source: Euromonitor; Mintel; Lodging Econometrics; World Travel and Tourism Council; Deloitte Research & Analysis.

13. Branded Rooms Total Rooms Industry Overview: Demand & Supply – UK Penetration in AP (1/2) Location A, India and Indonesia currently need the most branded hotels to reach UK 2007 penetration figures Asia-Pacific Additional Hotel Rooms at UK penetration (2007)1 Million Rooms Note: 1. Data used: International trips and branded rooms as at 2007; domestic trips estimated for 2007; total rooms as at 2006 Source: Euromonitor; Mintel; Lodging Econometrics; World Travel and Tourism Council; Deloitte Research & Analysis.

14. Branded Rooms Total Rooms Industry Overview: Demand & Supply – UK Penetration in AP (2/2) Looking forward to the year 2010, there is still a gap to reach UK 2010 penetration for branded rooms among several of the Asia-Pacific countries, lead by Location A, India and Location D Asia-Pacific Additional Hotel Rooms at UK penetration (2010)1 Million Rooms Note: 1. Data used as follows: International trips and domestic trips estimated for 2010; branded rooms as at 2007; total rooms as at 2006 Source: Euromonitor; Mintel; Lodging Econometrics; World Travel and Tourism Council; Deloitte Research & Analysis.

15. Branded Rooms Total Rooms Industry Overview: Demand & Supply – US Penetration in AP There is capacity in Asia-Pacific lead by Location A for additional branded rooms in order to reach US 2007 penetration figures; and interestingly in fairly saturated markets such as Location D, there might still be space for branded hotels Asia-Pacific Additional Hotel Rooms at US penetration1 Million Rooms Note: 1. Data used: International trips and branded rooms as at 2007; domestic trips estimated for 2007; total rooms as at 2006 Source: Euromonitor; Mintel; Lodging Econometrics; World Travel and Tourism Council; Deloitte Research & Analysis.

16. Industry Overview: Demand & Supply – Room Penetration The majority of the Asia-Pacific focus countries have lower room supply penetration relative to Europe and North America. Global and regional brands account for a smaller proportion of room supply outside North America Room Supply Penetration (2007) Rooms per Thousand Inhabitants Note: Supply figure for India does not include lower budget. Total Location D supply figure includes ryokans (Location Dese Inns) Source: UN Estimates; National Statistics offices; Lodging Econometrics; Mintel; Deloitte Research & Analysis

17. Industry Overview: Demand & Supply – Branded Rooms by Chain Scale The luxury segment accounts for c. 18% of total branded room capacity in Asia Pacific, which compares to c. 3% and 4.5% in North America and Europe, respectively Branded Supply by Chain Scale (2007) Share of Branded Rooms Regions Countries Note: Supply data is based on all global and regionally branded hotels only Source: Lodging Econometrics; Deloitte Research & Analysis

18. Industry Overview: Demand & Supply – Upper Upscale / Luxury Valuation Hotel values have increased on average nearly 6% p.a. between 2002-06, with cities in Location A, Malaysia, Indonesia and Singapore Upper Upscale / Luxury Valuation per Key (2006) USD Thousands 2006 vs CAGR 2002-06 $292k 5.6% Source: 2007 Asia Hotel Valuation Index; Deloitte Research & Analysis

19. Industry Overview: Global Hotel Operators – Overview Global hotel operators have achieved success by offering a portfolio of brands tailored to specific customer segments, and creating operational efficiency by leveraging the size and scale of their distribution. Global Hotel Operators Indicative Source: Deloitte Research and Analysis

20. Industry Overview: Global Hotel Operators – Financial Summary Global hotel operators have achieved high return on capital invested by focussing on management contracts and real-estate transformation. Financial Results and Key Performance Indicators (2007) Indicative Note: 1 Due to information availability the figure is based upon the financial statements as at 2004 year end. Source: Deloitte Research & Analysis

21. Industry Overview: Regional Hotel Operators – Overview (1/2) APAC brands have traditionally grown from an iconic flagship properties, and were first required to own a critical mass of their own hotels before expanding beyond APAC or into management contracts. Regional Hotel Operators Indicative Source: Deloitte Research & Analysis

22. Industry Overview: Regional Hotel Operators – Overview (2/2) APAC brands have traditionally grown from an iconic flagship properties, and were first required to own a critical mass of their own hotels before expanding beyond APAC or into management contracts. Regional Hotel Operators (cont’d) Indicative Note: 1. No data/information could be obtained. Source: Deloitte Research & Analysis

23. Industry Overview: Regional Hotel Operators – Financial Summary Asia Pacific chains have relatively high EV/EBITDA multiples and relatively low return on capital invested as a result of their asset heavy strategies. Financial Results and Key Performance Indicators (2007 unless otherwise stated) Indicative Note: 1 Based on continuing operations, excluding special items; 2 Company operated; 3 Relevant data is not available for JAL, Raffles, and Four Seasons. * Figure is based on 2006 figures due to information availability. ** Jin Jiang figures are based upon their 3-Star brand. This provides a best estimate given the width of their offerings Source: Company Data; Deloitte Research & Analysis

24. Agenda • Approach • Industry overview • Market overview • Key considerations • Sector analysis • Strategic options • Selected strategy • Next steps

25. Key Considerations: Strategic Framework Initial Thoughts We have identified a range of key considerations for Client X, which fall broadly into six categories Talent Location Operational Excellence Portfolio Approaches Growth Patterns Play to your Strengths • Most significant driver of guest hotel choice • Very few people choose a hotel brand and then choose a location • Returns first, brand fit second • Led to most development approaches being more tactical than strategic • Organisations will have their desired location lists but market opportunity often overtakes • Organic growth focused on locations where there is capacity within a segment • Can create tension between Brand and Development • Led to most brands having significant range of quality and locations • Only strongest brands can adopt more strategic approach • In the absence of property asset value increases, new management contracts are one of the key sources of increasing financial return • Development pipeline now THE most important KPI for the major listed hotel operators • A critical driver in delivering financial return • No value in delivering low profitability on high occupancy and ADR • Poor performance can destroy benefits of strong brand and location • A key consideration for owners when selecting operators • Number 1 core competency • Vital that have strong core operations to support future growth – organic or acquisition • All successful operators have either CEO or COO with many years operational experience often with same organisation and often starting from very low level • Need stable central ‘system’ to support growth to enable new properties to be transitioned into the organisational smoothly • Create pool of expertise that can be exported to new properties to ensure rapid adoption of standard processes and procedures • Single segment approach • With the exception of Four Seasons, all luxury single segment operators have built growth on the foundation of one or two iconic properties • Luxury brands • Almost all luxury brands have extended into resorts and residences (both owned and fractional) • Resort developments are aimed at capturing the leisure market of their customers • In the past 2 years the incorporation of a residential element has been required to make new builds financially viable • Multi segment approach • Many organisations have a luxury brand to deliver a ‘halo’ effect • The core business is mid-market and the luxury brand delivers an aspiration for these guests • Few organisations have mid-tier resort brands • Home comfort • With the exception of Four Seasons, all the major global and regional players have expanded close to home before significant global expansion • This is reflected in the percentage of property portfolios in their domestic markets • Second stage expansion is often in overseas regions with strong brand or cultural recognition • Home advantage • Easier to support new hotels from a logistical perspective as can leverage current suppliers, staff redeployment is easier and management can maintain closer oversight role. There are also obvious time zone advantages. • Need to build critical scale of operations before adding additional strains of distant operations • It is likely that there is stronger brand awareness in countries closer to home and also easier to build this brand awareness in weaker countries due to cultural similarities • Many hospitality organisations have natural strengths • Iconic properties • Strong brand names • Deep heritage • Strong cultural links • Corporate owners • Access to capital • Successful organisations have developed ways of harnessing these strengths • Global and regional hospitality organisations invest significantly in their talent • One of most significant assets particularly since property assets typically disposed • At the heart of operational efficiency • At the heart of delivering the branded experience • Becomes more significant the higher the segment • Large, high quality talent pool required to support growth • Increasingly in short supply and predicted to get more so • Recruitment and retention • Its not just about operational training • Staff engagement is just as important – feeling emotionally connected to the organisation • Structured career development Source: Deloitte Research & Analysis 25

26. Agenda • Approach • Industry overview • Sector analysis • Region • Country • City • Strategic options • Selected strategy • Next steps

27. Region Analysis: Summary (1/2) On a regional level, the ability for Client X to enter region in the short to medium term is high only in Asia-Pacific Ability for Client X to Enter Region in Short to Medium Term Indicative Source: Deloitte Research & Analysis

28. Region Analysis: Summary (2/2) Demand and supply drivers are positive in both Asia-Pacific and the Middle East & Africa Summary of Key Drivers Indicative Source: Deloitte Research & Analysis

29. Region Analysis: Historical Performance – Global Luxury and upper upscale have outperformed the other segments on average in each region ADR by Market (2005-07) USD 2007 vs CAGR 2005-07 Occupancy by Market (2005-07) Occupancy 2007 vs PP Change 2005-07 RevPAR by Market (2005-07) USD 2007 vs CAGR 2005-07 67.3% $92 $136 9.1% 8.3% 0.9% Budget/Ec Mid-scale Upscale U. Upscale Luxury Americas Asia-Pacific EMEA Note: Growth rates based on local currency data Source: Smith Travel Research; Deloitte Research & Analysis

30. Agenda • Approach • Industry overview • Sector analysis • Region • Country • City • Strategic options • Selected strategy • Next steps

31. Country Analysis: Overview The focus countries have been split into the top four, middle four and bottom three through the quantification of key success factors and subsequent ranking of these Quantification of key success factors Ranking of countries based on key success factors • The key success factors for Client X to be able to enter these countries have been identified as: • Economic drivers • Demand drivers • Supply drivers • Ability for Client X to implement • Historical performance • An analysis was performed determining the quantum of each of these success factors • The grouping has been determined by ranking the each country from 1 to 11 based on the relative performance of the key drivers, with 1 being the country with the best performance and 11 being the country with the worst performance • We have primarily ranked the growth metrics in order to identify markets where there is high potential for future growth • Absolute metrics are included to show relative size of metric

32. Country Analysis: Ranking by Degree of Opportunity for Client X The mid-market and upscale opportunity for Client X appears to be highest in Location A, followed by Location B, Thailand, Location Y and the Philippines Ranking of Mid-market and Upscale Country Markets Indicative Opportunity Source: Deloitte Research & Analysis

33. Country Analysis: Country Focus – Location Summary (1/2) Key forward-looking looking drivers have been assessed for each country… Summary of Key Forward-looking Drivers Indicative Note: 1. Excludes business spend as data unavailable Source: See reference pack

34. Country Analysis: Country Focus – Location Summary (2/2) …followed by key historic drivers such as valuations, key performance indicators and profitability, and Client X’s ability to implement Summary of Key Historic Drivers Indicative Note: 1. Maldives figures for RevPAR and RevPAR growth are based upon Luxury and Upper Upscale hotels only; 2. GOP Margin is Income Before Fixed Charges based upon capital city figures with the following exceptions: Location A (Beijing, Hong Kong and Shanghai), India (Mumbai), Indonesia (Jakarta, Bali) Source: See reference pack

35. Country Analysis: Recap – Location Drivers Ranking (1/2) Location A and Location Y appears to provide the best opportunities for Client X Ranking of Key Forward-looking Drivers Indicative Note: Location A figures for phase 1 based on Greater Location A; 1. Domestic trips for Location A includes mainland Location A only Source: See reference pack

36. Country Analysis: Recap – Location Drivers Ranking (2/2) Location A and Location Y appears to provide the best opportunities for Client X Ranking of Key Historic Drivers Indicative Source: See reference pack

37. Country Analysis: Drivers – Economic and Demographic The selected countries boast encouraging demographic indicators and are forecast continued strong demand growth Summary of Key Forward-looking Economic and Demographic Drivers Indicative Note: 1. Percentage of income received by the 40% of households with middle bracket of income; 2. Location A figures for phase 2 focus on Mainland Location A Source: UNICEF; Price Waterhouse Coopers; The Economic Intelligence Unit; Deloitte Research & Analysis

38. Country Analysis: Drivers – Investment in Tourism Chinese investment in travel and tourism is both significantly larger and forecast to grow more quickly than other focus countries Capital Investment (2000-20)1 $ Billions Capital Investment (2007): Public vs Private Percent CAGR 125.8 1.7 15.3 3.8 1.5 Historic Forecast Public Private Note: Private capital investment includes foreign investment Source: World Travel and Tourism Council; Deloitte Analysis

39. Budget / Economy Mid-/scale Upscale / Upper Upscale Luxury Location A Hong Kong India Indonesia Location D Malaysia Philippines Singapore Location Y Thailand Location B Country Analysis: Historical Performance – RevPAR RevPAR performance varies, both in absolute level and growth CAGR (2005-07), by both geography and market segment RevPAR by Market (2005-07) USD 2007 vs CAGR 2005-07 $123 12.1% Note: Location D Budget/Economy, Malaysia Upscale / Upper Upscale, and Philippines Upscale / Upper Upscale are all 2006-07 Percentage Change; Growth rates based on local currency data Source: Smith Travel Research; Deloitte Research & Analysis

40. Budget / Economy Mid-/scale Upscale / Upper Upscale Luxury Location A Hong Kong India Indonesia Location D Malaysia Philippines Singapore Location Y Thailand Location B Country Analysis: Historical Performance – Occupancy However occupancy shows a more varied picture with a higher proportion of categories showing negative change (2005-07) Occupancy by Market (2005-07) Occupancy 2007 vs Percentage Point Change 2005-07 71.8% 1.9% Note: Location D Budget/Economy, Malaysia Upscale / Upper Upscale, and Philippines Upscale / Upper Upscale are all 2006-07 PP Change; Growth rates based on local currency data Source: Smith Travel Research; Deloitte Research & Analysis

41. Poor Very Good Moderate Good Country Analysis: Drivers – Business and Tourism Country Rating The overall business environment and travel and tourism prioritisation scores appear to be strongest in Location A, Location Y and Thailand Business Environment and Travel and Tourism Prioritization Score Card (2007) Rating (1 = low) Note: 1. The business environment rankings model examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure. Government prioritization examines the level of government consideration given to travel and tourism in comparison to other industries. 2. The effectiveness of marketing and branding relates to that used to attract tourists into the country. In both cases, the scale is from 1 to 7; The Business Environment rating scale is from 1 to 10 Source: World Economic Forum: The Travel & Tourism Competitiveness Report 2008; Economic Intelligence Unit: Country Forecast February 2008; Deloitte Research & Analysis

42. 2008 Current 2009 2010+ Country Analysis: Rooms Supply, Pipeline and Penetration Whilst Location B has the largest pipeline as a proportion of existing hotels, Location A has the largest absolute number of hotels in the pipeline Mid-Market/Upsc. Room Supply and Pipeline (2007-10) Percentage, Thousand Rooms Change in Mid-Market/Upscale Room Supply Penetration (2007-09) Rooms per Thousand International and Domestic Travellers 200,586 2,702 4,851 21,161 3,839 8,660 220 1,162 184 540 385 13,007 1,434 500 5,264 65,690 1,455 489 113,229 1,817 4,447 13,301 1,355 Note: Supply data is based on all global and regionally branded hotels only Source: Lodging Econometrics; Deloitte Research & Analysis

43. $94 $61 65% (5.0)% 5.6% 9.7% Country Analysis: Key Performance Indicators Location B, Thailand and Philippines have shown good RevPAR growth, predominantly driven by ADR growth, with some occupancy gains in Location B ADR by Country (2005-07) USD 2007 vs CAGR 2005-07 Occupancy by Country (2005-07) Occupancy 2007 vs PP Change 2005-07 RevPAR by Country (2005-07) USD 2007 vs CAGR 2005-07 Mid-Market Upscale Location A Philippines Location Y Thailand Note: Average indicators are based on weighted average and therefore skewed to towards the large Location A mid-market/upscale room numbers Growth rates based on local currency data; Location B is a combination of upscale and upper upscale KPIs Source: HotelBenchmark; Lodging Econometrics; Deloitte Research & Analysis Location B

44. Country Analysis: Profitability Mid-Market/Upscale room profitability grew across all countries; the exception being Location Y Room Revenue & Profitability by Country (2005-06) Comparative RevPAR Index 2005, 2006 vs. GOP Margin 2005, 2006 2006 2005 Location Y Location B Average 2006: 77 Average 2005: 71 Thailand Philippines Location A Average 2005: 38.1% Average 2006: 40.4% Note: USD RevPAR 2005 and equivalent USD RevPAR 2006 assuming local currency growth Source: HotelBenchmark; Deloitte Analysis

45. 250 245 240 Country Analysis: Illustrative Supply Opportunity Location A Mid-Market/Upscale opportunity drastically exceeds that of the other countries; with Thailand and Location B showing a still sizeable opportunity Illustrative Supply Opportunity (2009-18) Thousand Mid-Market/Upscale Rooms 247.2k Note: Estimates are based on a number of assumptions and should be seen as illustrative and not regarded or relied upon as a forecast by Deloitte of expected future market behaviour. Actual outcome could be materially different to that shown Source: World Travel & Tourism Council; Lodging Econometrics; Hotel Benchmark; Deloitte Research & Analysis

46. Country Analysis: Illustrative Yields – New Build Hotel Location B offers the highest yields with the least investment. The increases in hotel IBFC in Philippines and Thailand have been higher than the increases in construction costs, resulting in increasing yields Illustrative Mid-market Yield by Country (2005-06) Construction Costs per Room Thousand USD vs. Relative Yield 2006 Location Y 2005 Thailand Location B Philippines Location A Construction costs increasing faster than increases in hotel IBFC Construction costs increasing less than increases in hotel IBFC Annual Income before Fixed Charges per available room, expressed as a percentage of construction costs per Room Note: Construction costs exclude land costs; IBFC excludes ownership costs (rates, insurance, rent, interest, management fees, depreciation and taxes). Relative yield equals IBFC per key divided by construction costs per key Source: Hotel Benchmark; Davis Langdon; Deloitte Research & Analysis

47. Country Analysis: Location YHotel Market – Overview The Location Yinbound market remains stable, while the outbound and domestic market are growing at high rates Inbound Outbound Domestic Hotels Drivers • Except for the dent in 2003 which was caused by the outbreak of SARS, the Location Ytourism market is growing at a steady rate of 4.2% and is forecasted to grow at 4.5% in the near future. • 76% of all visitors come from nearby Asian countries such as Location D (37%), Location A (14%) and Location C (5%) and also some from the U.S (10%). The strongest growth is of Location A (16%) and Location C (24%). • However, receipts from tourists of 5.6 Trillion Won is growing at 3% which is lower than that of visitors, despite an increased length of stay, but because of a decrease in spend per night • Location Y’s outbound tourism market is growing at a dynamic rate of 10.4%, while expenditure is growing at a even higher rate of 12% driven by the strong Location Z Won. However, departure and expenditure growth is forecasted to slow to 4.4%. • Asian countries such as Location A, Location B, Location C and Location D remain the most popular countries to visit, representing more than 75% of all outbound trips. • The domestic travel market has been growing at a rate of 13% but is forecasted to slow down to 1.4%. • There was a dip when the Location Z Won strengthened, which was balanced by an increase in international travel. • Domestic travel spend increased even when the number of travellers decreased indicating a higher spend per trip. • Increase from 49 k won/trip in 2005 to 55.3 k won/trip in 2006 • include the two biggest cities of Location Z – Location E and Location X, represent 50% of all trips. • The Location Z hotel market has been stable growing 3.2% with inflation at 3%. • Although the accommodation supply is dominated by above mid-market hotels, the budget hotel sector has been growing at 17.6% rate for the past five years. • Luxury/upper upscale hotels with more than 200 rooms represent four percent of the entire lodging supply only. • Despite Client X’ market leading position in Location X, there are several competitors with similar propositions. Several of them have recently undergone refurbishment programs. • The evidence supports that the outlook for the domestic hotel market is positive as GDP continues to grow along with PDI • Additionally a growing number of people are eating out which will support hotels’ F&B proposition. • The market for international travellers is likely to be remain stable without a fluctuation in the exchange rate. Source: Deloitte Research & Analysis

48. Country Analysis: Summary – Key Decision-making Drivers The summary of key decision-making drivers shows medium to high results for most countries Summary of Key Decision-making Drivers Indicative Source: Deloitte Research & Analysis

49. Country Analysis: Summary – Ranking Based on the 3 most important factors of illustrative opportunity, illustrative yield and ease to implement, Location A appears to be the first choice for mid-market growth Source: Deloitte Research & Analysis

50. Agenda • Approach • Industry overview • Sector analysis • Region • Country • City • Strategic options • Selected strategy • Next steps