Real Estate Development Key Steps Hotel Projects GESIIC, Pantheon-Sorbonne, Paris January 25th, 2013 Real Estate Development Key Steps Hotel Projects Yilmaz KARAUC Global Project Management

REAL ESTATE DEVELOPMENT PROCESS – KEY STEPS AGENDA Key Points Overview of a development project key steps as Developer Existing & Take-over projects key steps as Developer Project Structures in following cases: Hotel Operator is the Developer Hotel Operator leases or acquires after Completion Hotel Operator is only Hotel Manager Questions 2 2

Key Points In Real Estate Development Process the followings are crucial: Sequential process Deliverables Internal Validations Accountability Program Optimization Cost Certainty in order to ensure project completion: within the Budget & Time and in compliance with the Product and Technical Guidelines.

Overview Of A Development Project Key Steps Development / Investment Committee Program Committee Program Committee Tender Mock up Room Handover Hotel Opening 1 2 3 4 5 Key Steps Project Assessment & Feasibility Analysis Project Detailed Program & Preliminary Studies Project Final Program & Detailed Studies Project Works Execution & Follow-up Project Delivery & Hotel Opening Pre feasibility & Market overview Preliminary Cost Plan Site identification Concept Design Techn. Feasibility & Constructability Study (Technical File) Initial Cost Plan Business Plan Program analysis & optimization Detailed Hotel Program Base building Schematic Design Interior Design Brief List of proposed interior designers Project Structure Updated project cost plan & time frame Final version of the Program Detailed Interior Design & Landscape drawings Final Project Budget Project time schedule. Design Development Tender file Tender for works Beginning of Works Execution studies Mock up room Execution of works FF&E integration Project Delivery validation Pre-opening phase Hotel opening Steps’ Content

Existing & Take Over Project Key Steps Development / Investment Committee Program Committee Program Committee Tender Mock up Room Handover Hotel Opening 1 2 3 4 5 Key Steps Project Assessment (DD & PIP) & Feasibility Analysis Project Detailed Program & Preliminary Studies Project Final Program & Detailed Studies Project Works Execution & Follow-up Project Delivery & Hotel Opening Pre feasibility & Market overview Site Identification Preliminary Business Plan MoU / Due Dilig. Property Improvement Plan Concept Design Techn. Feasibility & Constructability Study (Tech. File) Initial Cost Plan Business Plan Agreement for Acquisition Program analysis & optimization Detailed Hotel Program Base building Schematic Design Interior Design Brief List of proposed interior designers Project Structure Updated project cost plan & time frame Work Permit & Acquisition Final version of the Program Detailed Interior Design & Landscape drawings Concept Mock up Room Final Project Budget Project time schedule. Design Development Tender file Tender for works Beginning of Works Execution studies Contractor Mock up room Execution of works FF&E integration Project Delivery validation Pre-opening phase Hotel opening Steps’ Content 5

HOTEL OPERATOR IS THE DEVELOPPER Project Structure 6 6

Hotel Financing, Development & Operating Proposed International Scheme HOTEL GROUP WORLDWIDE LOCAL BANK Loans Agreement 35 / 65 (equity / debt) 100% LOCAL HOTEL INVEST. & OPERATING CO. LOCAL HOTEL OPERATING & DEVELOPMENT JOINT-VENTURE CO. LOCAL PARTNER INVEST. & DEVELOPMENT CO. 51% 49% 100% 100% HOTEL Op Co HOTEL Prop Co HOTEL Op Co HOTEL Prop Co HOTEL Op Co HOTEL Prop Co Management Contract Licencing Agreement Technical Assistance Construction Contracts Asset Management Lease Contracts

HOTEL OPERATOR LEASES / ACQUIRES AFTER COMPLETION Project Structure 8 8

HOTEL OPERATOR LEASES AFTER COMPLETION Proposed Lease Structure 9 9

HOTEL OPERATOR IS ONLY HOTEL MANAGER Project Structure 10 10

END THANK YOU Contact : Yilmaz KARAUC ykarauc@hotmail.com 11 11