Orbis Hotel Group who are we?
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1 Orbis Hotel Group who are we?
2 Accor and Orbis strategic partnership Since 2000 Orbis Hotel Group operate under well-known global brands belonging to the Accor Group. Standardization of services and access to modern management systems of hotel network, obtained through a partnership with the Accor Group, now make the largest competitive advantage of company, significantly distinguishing our brands among others in the market. ACCOR BY THE END OF 2014 NEARLY EMPLOYEES IN ACCOR BRAND HOTELS MORE THAN HOTELS MORE THAN ROOMS 17 BRANDS FROM LUXURY TO ECONOMY HOTELS REVENUE OF MILLION EUROS IN 2014 TWO ALIGNED BUSINESSES HOTELSERVICES HOTELINVEST
3 Entering a new era Orbis Hotel Group no. 1 hotel operator in Eastern Europe 4Q 2014 was marked by analysis of the transaction with Accor, concluded on 7 January 2015, that accelerated our expansion... Orbis after the transaction 105 hotels rooms 8 operational countries 8 countries to be developed 9 brands including and... and perfectly matched all strategy objectives: Value Creation: sharp increase of operational results. Expansion: new hotels within the group and room to expand on new markets. Services: exchange best practices within the whole perimeter. 3
4 Accor in Eastern Europe Orbis Hotel Group Currently under operation of Orbis Hotel Group are *: 5 HOTELS IN THE BALTICS 3 in pipeline 64 hotels in Poland 37 hotels located in other Eastern Europe countries Over rooms 4 *As of March 2015
5 A large Accor brand portfolio REGIONAL BRANDS LUXURY AND UPSCALE MIDSCALE BUDGET En Asie En France 5
6 ACCOR presence in the Baltic States as of October 27, 2015 Mercure Riga Centre 6
7 Development strategy Current footprint & Pipeline : 9 hotels # Novotel Vilnius Centre 159 rooms - opened in 2004 Lease ibis Kaunas Centre 125 rooms - opened in 2012 Management Mercure Marijampole 47 rooms - opened in April 2014 Franchise Mercure Riga Centre 143 rooms - opened in May 2014 Franchise ibis Styles Riga 76 rooms - opened in Sept Franchise Pullman Riga 160 rooms - planned to open in Q Franchise ibis Riga 114 rooms planned to open in Q Franchise Ibis Styles Vilnius 92 rooms opened in July 2015 Franchise Ibis Styles Klaipeda Aurora 144 rooms planned to open in December Franchise + more projects under negotiation to maintain fast development pace 7
8 Baltic hotels - Photoshoot Novotel Vilnius Centre ibis Kaunas Centre Mercure Marijampole Mercure Riga Centre ibis Styles Riga Pullman Riga (Visualisation) 8
9 What can we offer you? 9
10 Cooperation business models Company develops by cooperation with external Partners based on franchise agreement or management agreement. Cooperation concerns newly constructed buildings as well as adaptation of existing buildings. We help you... choose the most optimal business model, suited to your needs and opportunities choose the brand, most suited to local market condtions Assists in estimation of the projected revenues 10
11 Franchisee Agreement in practice Franchisee manages the hotel him/herself or by hired General Manager Franchisee decides about presence in sales/marketing campagins run by network/franchisor Franchisee is resposible for running hotel in line with brand standards, manuals and procedures Guide Franchisee on his own defines prices of the hotel rooms which will be applicable in sales process Franchisor helps Franchisee to optimize hotel revenue side in P&L Statement 11
12 Management Agreement in practice General Manager of the hotel is representative of the Manager and provides management services in hotel owned by Partner Under agreement, Manager (duly represented by General Manager) is responsible for ongoing supervision, control and management of issues related to the hotel operating activities Manager (duly represented by General Manager) has full freedom to make decisions regarding to all employees of the Hotel, including exclusive right to elect, hire, promote, replace, relieve all the hotel employees, as well as manage their work Manager (duly represented by General Manager) is responsible for preparation and implementation of hotel budgets Manager (duly represented by General Manager) runs hotel being responsible both for revenue and cost sides in P&L Statement 12
13 We are ready! We are ready to support you in many areas of hotel activity. Our experience, market konwledge and proven in practice solutions creates a reliable business model, which you can use. Example of this kind of support can be a Technical Assistance Contract. It is an advisory agreement, concerning support of the investor in realization of investment (including assistance in optimizing of the investment costs). Examples of support areas 13
14 14
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