1. STR Global 2014www.strglobal.com Importance of Hotel Data Congreso Nacional de Hoteleros de Chile Thomas Emanuel Director of Business Development Valdivia 28 th September 2014

2. STR Global 2014www.strglobal.com Agenda -Who are STR Global? -Why Benchmark? -STAR Report -Global Hotel Performance -Regional Hotel Performance -Chilean Hotel Performance -Questions

3. STR Global 2014www.strglobal.com Who are we? STR in North America and STR Global internationally Privately held with 27 years of experience we have long-established credibility and integrity –Confidentiality of data assured –Meticulous quality control processes –No individual, brand or company data ever disclosed Largest source of independently collected global performance data –49,700 hotels, 6.7 million hotel rooms globally –9,710 hotels, 1.37 million rooms across EMEA –6,100 hotels, 1.2 million rooms across ASPAC –760 hotels, 122,000 rooms across CSA Unparalleled depth and breadth of market coverage –461 markets, 1442 submarkets in 168 countries across 6 continents –Historic data on most markets back to 1996 Supported by majority major international and national hotel chains and independent hotels

4. STR Global 2014www.strglobal.com Global offices Beijing, Dubai, Guangzhou, Jakarta, London, Milan, Nashville, Sao Paolo, Singapore, Sydney, Mumbai & Tokyo

5. STR Global 2014www.strglobal.com Why should hotels benchmark?

6. STR Global 2014www.strglobal.com ‘In the business world, the rear view mirror is always clearer than the windshield’ Warren Buffett

7. STR Global 2014www.strglobal.com ‘Bad news is not like a fine wine, it doesn’t improve with age.’ Colin Powell

8. STR Global 2014www.strglobal.com ‘Benchmarking is simply about making comparisons with other organisations and then learning the lessons that those comparisons throw up.’ European Benchmarking Code of Conduct

9. STR Global 2014www.strglobal.com What is benchmarking? o The continuous process of measuring your products, services and business practices against your toughest competitors or against industry leaders o Tool to enable a company to perform at ‘best-in-class’ level in any given business process o Identify, quantify and prioritise improvement opportunities offering the greatest potential return, plus highlight areas of risk

10. STR Global 2014www.strglobal.com Who’s performing better? Benchmarking your hotel against the competition

11. STR Global 2014www.strglobal.com The Value of Benchmarking – Property Level Rooms Are my occupancy levels any good? How do my average rates compare to my competitors? How is my week versus weekend business? Am I growing my share of the market? Am I going to get my bonus Is my revenue strategy right? Does my Sales & Marketing effort need changing? Other operating departments Do my F&B outlets generate as much revenue as my competitors? How efficient is the hotel at converting revenue to profit? How does my payroll compare with the industry norm? Guest service How did our guests rate their experience? Could our service standards be improved?

12. STR Global 2014www.strglobal.com Why Benchmark ? Identify and maximise revenue opportunities Make informed business decisions – based on facts Assist with Budgeting process Plan marketing and sales activities Fine-tune your pricing strategies Analyse competitive markets specific to your hotel Spot trends and be alerted to changes in market conditions Be profitable during a downturn Forecast changes in demand and supply

13. STR Global 2014www.strglobal.com Measurements of Performance Occupancy No. of rooms sold% No. of rooms available ADR Net Room Revenue Rooms sold RevPAR Net Room RevenueOR Occupancy X ADR No. of rooms available Market Indices MPI, ARI, RGI subject hotel divided by comp set Financial GOPPAR, TrevPAR

14. STR Global 2014www.strglobal.com STAR vs Hotel Survey Rooms sold, rooms revenue & available rooms We send our reports via email or our online tool @ www.strglobal.comwww.strglobal.com Free programme for participants Your performance vs. the geographical market Hotel Survey Annual subscription Your performance vs. Competitive set of your choice STAR Report

15. STR Global 2014www.strglobal.com Report: Hotel Survey Information about the market FREE

16. STR Global 2014www.strglobal.com STAR Report Information about a specific group of competitors FREE $ Information about the market

17. STR Global 2014www.strglobal.com The STAR Report Simply submit: Rooms sold Rooms available Rooms revenue

18. STR Global 2014www.strglobal.com Why Benchmark? Key features of the STAR report Glance tab (tab 1) A snapshot of recent performance Three main KPI’s Trends; YTD, running 3, running 12 Index; market share

19. STR Global 2014www.strglobal.com Why Benchmark? Key features of the STAR report Monthly Comp Set Comparison (tab 2) Monthly performance (last 18 months) Three main KPI’s Index; market share Rank Percentage change Visuals

20. STR Global 2014www.strglobal.com Why Benchmark? Key features of the STAR report Day of Week Comparison (tab 6) 3 KPI’s Establish strong and weak nights of the week Implement and monitor sales/revenue strategies Weekend/Weekday comparison

21. STR Global 2014www.strglobal.com Why Benchmark? Key features of the STAR report Daily data by month (tab 8) Daily data shown by date Three main KPI’s Use historical data to forecast for annual events etc.

22. STR Global 2014www.strglobal.com Why Benchmark? STAR & Survey Lite – available in Spanish Ocupación (Occ) Mes en curso(%) cambioAcumulado 3 meses(%) cambioaño hasta la fecha(%) cambio Mi Propiedad 68.926.8  78.513.0  72.58.1  Set Competitivo 37.8-3.4  54.67.1  49.910.9  clase de submercado 54.83.0  69.73.2  65.53.6  Índice del Set Competitivo (MPI) 175.831.2  145.95.5  147.6-2.6  clase de submercado Índice (MPI)123.523.0  112.59.5  111.54.4  Puesto de la propiedad dentro del Set Competitivo 2 of 51 of 5  2 of 51 of 5  2 of 53 of 5  Tarifa Promedio (ADR) Mes en curso(%) cambioAcumulado 3 meses(%) cambioaño hasta la fecha(%) cambio Mi Propiedad181.50-3.9  208.50-3.3  208.603.9  Set Competitivo197.85-6.2  224.520.2  221.500.4  clase de submercado 108.75-1.6  122.56-1.3  117.501.6  Índice del Set Competitivo (ARI) 95.402.4  94.15-3.5  95.503.5  clase de submercado Índice (ARI)167.89-2.4  175.62-2.0  178.582.2  Puesto de la propiedad dentro del Set Competitivo 3 of 5  4 of 5  3 of 52 of 5  Revenue Per Available Room (RevPAR) Mes en curso(%) cambioAcumulado 3 meses(%) cambioaño hasta la fecha(%) cambio Mi Propiedad 118.5621.8  156.809.3  149.5212.3  Set Competitivo 73.55-9.3  118.357.3  108.5611.3  clase de submercado 59.641.4  82.451.8  76.155.3  Índice del Set Competitivo (RGI) 167.5034.3  134.521.8  138.250.9  clase de submercado Índice (RGI)202.5620.1  190.367.4  196.546.7  Puesto de la propiedad dentro del Set Competitivo 1 of 5  2 of 5  1 of 52 of 5 

23. STR Global 2014www.strglobal.com STR Competitive Set Guidelines 1.Minimum 4 reporting hotels (excluding my property) 2.Single hotel or chain can’t have more than 40% of the room supply 3.Single company can’t have more than 60% of the room supply Your competitors have one or several similarities with you this could be: Geographic - Location Services – Amenities Target market May have multiple competitive sets & include/ exclude your own hotel. Individual data is confidential and will never be isolated/published

24. STR Global 2014www.strglobal.com Confidentiality & security Our business is your business – it’s in our best interest to ensure confidentiality and security of data Trustworthy, third party provider Aggregated data – your individual performance is never isolated Never report on less than 4 properties – to eliminate potential isolation Strict data reporting guidelines Data checks GIGO – Garbage In Garbage Out

25. STR Global 2014www.strglobal.com The STAR Report Options Analyse your hotel’s performance: Daily / Weekly / Monthly ‘Push’ Reports delivered automatically via e-mail ‘Pull’ Reports 24/7 – via our Online Tool SPECIAL OFFER FOR CONGRESO NACIONAL DE HOTELEROS DE CHILE!

26. STR Global 2014www.strglobal.com Global Performance

27. STR Global 2014www.strglobal.com Our Coverage +49,700 Hotels & +6.7 Million Hotel Rooms

28. STR Global 2014www.strglobal.com Our Coverage Hotels & Hotel Rooms +8.5K +1.1M +6.1K +1.2M +650 +118K +760 +122K +33K +3.9M +560 +147K Hotels Rooms

29. STR Global 2014www.strglobal.com Census Global Picture Branded vs. Unbranded rooms – July 2014 41% 59% 50% 42% 58% 65% 35% 58% 42% Branded Unbranded 38% 62%

30. STR Global 2014www.strglobal.com Global Picture Pipeline % increase # of rooms 3%41%14%8%15%7%

31. STR Global 2014www.strglobal.com Global picture Supply & Demand Supply & Demand % Change, July 2014 YTD

32. STR Global 2014www.strglobal.comSTR Global 2014www.strglobal.com Global RevPAR Map July 2014 YTD RevPAR % change, in Constant Currency USD, Europe in EUR +7.7%+4.4%€ +5.5% +1% +6.3%-3.0% +17.1% +3.5%

33. STR Global 2014www.strglobal.com Regional Performance

34. STR Global 2014www.strglobal.com Spotlight Americas Market performance – Occ %, ADR $ and RevPAR $, July 2014 YTD, CC$ Central America Occ 59.2%-1.8% ADR $ 123+5.4% RevPAR $ 73+3.5% North America Occ 65.1%+3.4% ADR $ 115+4.2% RevPAR $ 75+7.7% Caribbean Occ 71.8%+0.2% ADR $ 208+8.9% RevPAR $ 149+9.2% South America Occ 61.1%-1.6% ADR $ 144+19.0% RevPAR $ 88+17.1%

35. STR Global 2014www.strglobal.com Central & South America Room Supply/Demand % Change 12 months moving average Jan 2006 to July 2014

36. STR Global 2014www.strglobal.com Central & South America Occ/ADR % Change 12 month moving average Jan 2006 to July 2014, in USD

37. STR Global 2014www.strglobal.com Central & South America Classes Occ and ADR July 2013 & 2014 YTD, in USD

38. STR Global 2014www.strglobal.com Central / South Americas Countries Occ, ADR July 2014 YTD, in USD

39. STR Global 2014www.strglobal.com Central / South America (excl. Venezuela) Countries Occ, ADR July 2014 YTD, in USD

40. STR Global 2014www.strglobal.com Central / South America Countries Occ, ADR % Chg July 2014 YTD, in local currency

41. STR Global 2014www.strglobal.com Central / South America (Excl. Venezuela) Countries Occ, ADR % Chg July 2014 YTD, in local currency

42. STR Global 2014www.strglobal.com Central & South America Markets Occ, ADR July 2014 YTD, in USD

43. STR Global 2014www.strglobal.com Central & South America Markets Occ, ADR % Chg July 2014 YTD, in local currency

44. STR Global 2014www.strglobal.com Chilean Performance

45. STR Global 2014www.strglobal.com Santiago Room Supply/Demand % Change 12 months moving average Jan 2006 to July 2014

46. STR Global 2014www.strglobal.com Santiago Occ/ADR % Change 12 month moving average Jan 2006 to July 2014, in CLP

47. STR Global 2014www.strglobal.com Santiago Performance Jan 13 – Jul 14 Occ, ADR July 2014 YTD, in CLP

48. STR Global 2014www.strglobal.com Regional Chile Performance Jan 13 – Jul 14 Occ, ADR July 2014 YTD, in CLP

49. STR Global 2014www.strglobal.com How is the weekend business in Santiago? Occupancy, local currency, weekday vs. weekend performance

50. STR Global 2014www.strglobal.com How is the weekend business in Santiago? ADR, local currency, weekday vs. weekend performance

51. STR Global 2014www.strglobal.com Pipeline

52. STR Global 2014www.strglobal.com Central & South America Pipeline by Chain Scale As of August 01, 2014, Pipeline by Room Count

53. STR Global 2014www.strglobal.com Central & South America – Pipeline, Top 10 # Rooms, as of August 01, 2014

54. STR Global 2014www.strglobal.com Central & South America – Pipeline, Top 10 # Rooms, as of August 01, 2014 (excl. Brazil)

55. STR Global 2014www.strglobal.com STR Global www.strglobal.com You can follow us on LinkedIn, Twitter, Facebook STR Global, Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited. This presentation is based on information compiled by STR Global Ltd. No strategic or marketing recommendations or advice are intended or implied. Importance of Hotel Data Thomas Emanuel 0044 (0) 20 7922 1949