1. TOP TWENTY TIPS FOR SURVIVAL IN THE HOTEL INDUSTRY HKICPA Ian Graham 19 July 2010

2. © The Hotel Solutions Partnership Ltd Make sure you have the right LEADER

3. © The Hotel Solutions Partnership Ltd Trust your PEOPLE

4. © The Hotel Solutions Partnership Ltd Instil a sense of URGENCY

5. © The Hotel Solutions Partnership Ltd Manage BRANDED channels to the full

6. © The Hotel Solutions Partnership Ltd Challenge all other on line and direct to hotel DISTRIBUTION channels

7. © The Hotel Solutions Partnership Ltd Look for support from MARKETING PARTNERS

8. © The Hotel Solutions Partnership Ltd Put your best talent into on REVENUE MANAGEMENT and increase the focus

9. © The Hotel Solutions Partnership Ltd Force Sales and Marketing to look for NEW MARKETS AND SEGMENTS

10. © The Hotel Solutions Partnership Ltd Stay close to high life time value CUSTOMERS

11. © The Hotel Solutions Partnership Ltd Leverage MEMBERSHIP schemes

12. © The Hotel Solutions Partnership Ltd Conduct an independent PROCUREMENT AUDIT

13. © The Hotel Solutions Partnership Ltd Stop SALARY increases and look for reductions in headcount and payroll

14. © The Hotel Solutions Partnership Ltd But should you reduce your labour force? Promotion-focused moves Market developmentAsset investment Both Prevention based moves Employee reduction Good EBITDA 6.6.% Bad EBITDA 3.3% Worst EBITDA -5.2% Operational efficiency Good EDITDA 4.2% Good EBITDA 8.4% Best EBITDA 12.2% BothBad EBITDA 2.1% Bad EBITDA -0.5% Good EBITDA 4.6% Companies that focus simultaneously on increasing operational efficiency, developing new markets, and enlarging their asset bases show the strongest performance on average in EBITDA growth after a recession (percentages refer to the three year compound annual growth rate. Source: Harvard Business Review March 2010

15. © The Hotel Solutions Partnership Ltd Reduce cost of and/or scope of BENEFITS

16. © The Hotel Solutions Partnership Ltd Introduce targeted BONUSES

17. © The Hotel Solutions Partnership Ltd Institute UTILITY usage reductions

18. © The Hotel Solutions Partnership Ltd THINK RETAIL (revenue and profit per sq meter) and close down inefficient restaurants, bars etc

19. © The Hotel Solutions Partnership Ltd Drastically reduce CAPEX through postponement or cancellation

20. © The Hotel Solutions Partnership Ltd Institute tight CASH FLOW MANAGEMENT

21. © The Hotel Solutions Partnership Ltd DELEVERAGE

22. © The Hotel Solutions Partnership Ltd Get shareholder agreement to new DIVIDEND POLICY

23. © The Hotel Solutions Partnership Ltd Top Twenty Tips Make sure you have the right LEADER Trust your PEOPLE Instil a sense of URGENCY Make sure you are managing to the full BRANDED channels Challenge all other on line and direct to hotel DISTRIBUTION channels Look for support from MARKETING PARTNERS Put your best talent on REVENUE MANAGEMENT and increase the focus Force Sales and Marketing to look for NEW MARKETS AND SEGMENTS Stay close to high life time value CUSTOMERS Leverage MEMBERSHIP schemes Conduct an independent PROCUREMENT AUDIT Stop SALARY increases and look for reductions Reduce cost of and/or scope of BENEFITS Introduce targeted BONUSES Institute UTILITY usage reductions THINK RETAIL (revenue and profit per sq meter) and close down inefficient restaurants, bars etc Drastically reduce CAPEX through postponement or cancellation Institute tight CASH FLOW MANAGEMENT DELEVERAGE Get shareholder agreement to new DIVIDEND POLICY

24. © The Hotel Solutions Partnership Ltd