INTRODUCTION 1 METHODOLOGY 5 DEFINITION 6 TRENDS AND ISSUES 8. Using the halo effect 8. Soft branding 16 SEGMENTATION OF BRANDS 20

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2 Contents INTRODUCTION 1 METHODOLOGY 5 DEFINITION 6 TRENDS AND ISSUES 8 The power of the brand Error! Bookmark not defined. Using the halo effect 8 Luxury brands Error! Bookmark not defined. Soft branding 16 SEGMENTATION OF BRANDS 20 Star- rating 20 STR classifications 20 Chain scale segments 21 Types 21 Purpose of hotel 22 Examples of specific company segmentations 22 Hotel Analyst s segmentation 24 Summary 25 BRANDS 30 Ones to watch 146

3 Introduction The purpose of this report is to bring clarity to the European hotel brand landscape and provide readers with a comprehensive branding structure. The report investigates the different ways that hotel brands are segmented: Star- rating Chain scales Purpose of hotel Using the information provided in the brand profiles in the report, an illustrative brand landscape for the European hotel brands split by chain scale as defined by themselves is provided. The next section provides useful charts and tables of the leading European brands split by segment; growth of the leading brands, brands in transition and new brands and concepts. In the final section of the report, there are 100 brand profiles of the individual leading European hotel brands plus an additional 20 Ones to Watch. Table 1: Leading European hotel brands to be profiled in this report (2017) Brand Company STR Rooms in Europe Europe as share of whole portfolio Best Western Best Western Hotels & Resorts M 82,000 27% Ibis AccorHotels M 82,342 58% Premier Inn Whitbread E 69,297 96% Mercure AccorHotels UM 63,945 66% Novotel AccorHotels U 44,469 49% Holiday Inn IHG UM 46,024 22% Radisson Blu Carlson Rezidor Hotel Group UU 45,600 e 80% Ibis Budget AccorHotels E 44,916 80% Hilton Hotels & Resorts Hilton Worldwide UU 42,500 21% Scandic Hotels Scandic Hotels U 40, % NH Hotels NH Hotel Group U 37,634 89% Travelodge Travelodge E 37,000 97% Ramada Worldwide Wyndham Hotel Group M 31,000 26% B&B Hotels B&B Hotels E 28,000 96% Campanile Louvre Hotel Group M 28, % Holiday Inn Express IHG UM 29,508 34% Barcelo Barcelo Hotels & Resorts U/UM 25,000 e 66% Sol Melia Hotels International M 24,500 97% Marriott Hotels Marriott International UU 23,872 12% Ibis Styles AccorHotels M 24,039 63% Melia Melia Hotels International U 20,500 e 64% Crowne Plaza Hotels & Resorts IHG U 21,633 19% HotelF1 AccorHotels E 16, % Premiere Classe Louvre Hotel Group 19, % 1

4 Brand Company STR Rooms in Europe Europe as share of whole portfolio Clarion Choice Hotels International U 17,865 41% Sheraton Marriott International U 17,069 11% Park Inn by Radisson Carlson Rezidor Hotel Group UM 17,600 80% Quality Choice Hotels International UM 16,985 12% Maritim Maritim Hotels U 15, % Kyriad Louvre Hotel Group M 14, % Design Hotels Marriott International - 14,056 65% Motel One Motel One E 16, % Riu (incl Classic, Club, Palace, Plaza) Riu Hotels & Resorts U 14,000 31% Tryp by Wyndham Wyndham Hotel Group/Melia UM 13,532 a 78% Doubletree by Hilton Hilton Worldwide U 13,121 12% Comfort Inn Choice Hotels International UM 12,354 10% H10 H10 Hotels U 12,000 86% Thon Thon U 11, % Hyatt Regency Hyatt Hotels Corp UU 10,606 b 14% Sokos Sokos U 10, % Balladins Dynamique Hotel Mgt Gp E 10, % Britannia Hotels Britannia Hotels - 10, % Iberostar (incl Grand Collection) Iberostar U 10,000 37% Pestana Pestana UU 10, % InterContinental Hotels & Resorts IHG L 9,724 16% AC Hotels by Marriott Marriott International U 9,879 82% Van der Valk Van der Valk UM 9, % Golden Tulip Louvre Hotel Group UM 9,309 46% Courtyard by Marriott Marriott International U 10,167 6% Renaissance Hotels Marriott International UU 8,548 17% Pullman AccorHotels UU 8,353 24% Eurostars Hotusa U 8, % Danubius Danubius Hotels Group UM 8, % Valamar Valamar Hotels & Resorts - 7, % Hilton Garden Inn Hilton Worldwide U 7,759 8% NH Collection Hotels NH Hotel Group UU 7,690 73% Jurys Inn Jurys Inn UM 7, % Catalonia Catalonia - 7,000 88% First First Hotels U 6, % Dorint Dorint Hotels & Resorts U 6, % Park Plaza Carlson Rezidor Hotel Group U 6,659 71% The Luxury Collection Marriott International L 6,017 33% Sofitel AccorHotels L 6,659 21% Kempinski Kempinski L 6,200 31% Hampton by Hilton Hilton Worldwide UM 6,167 3% Westin Hotels & Resorts Marriott International UU 6,241 8% InterCity Deutsche Hospitality 6,000 76% Vienna House Vienna International M 5, % Steigenberger Deutsche Hospitality UU 5,810 e 83% Mitsis Mitsis UU 5, % 2

5 Brand Company STR Rooms in Europe Europe as share of whole portfolio Grupotel TUI M 5, % Movenpick Movenpick Hotels & Resorts U 5,200 e 25% Le Meridien Marriott International UU 5,051 18% Austria Trend Verkehrsburg Hotellerie U 5, % Citadines Apart'hotel Ascott Ltd UM 4, % Crystal Crystal Hotels UM 5, % PentaHotels Pentahotels - 5,000 98% Silken Hoteles Silken Hoteles U 4, % M Gallery AccorHotels UU 4,835 53% Adagio/Adagio Access AccorHotels UM 5,067 42% Macdonald Macdonald Hotels U 4, % Autograph Collection Hotels Marriott International UU 4,710 18% Days Inn Wyndham Hotel Group E 4,102 3% Tulip Inn Louvre Hotel Group UM 3,620 42% Ascend Choice Hotels International U 3,585 na Grand Hyatt Hyatt Hotels Corp L 3,484 b 14% Fairmont AccorHotels L 2,688 11% The Ritz Carlton Marriott International L 2,925 9% Wyndham Hotels & Resorts Wyndham Hotel Group UU 2,590 11% ATA ATA Hotels U 2, % Park Hyatt Hyatt Hotels Corp L 2,486 34% Copthorne Collection Millennium & Copthorne Hotels U 2,429 56% Four Points by Sheraton Marriott International U 2,202 6% JW Marriott Marriott International L 2,075 6% CitizenM CitizenM U 2,000 93% Innside by Melia Melia Hotels International U 2,000 92% W Hotels Marriott International L 1,332 10% Hesperia Resorts NH Hotel Group U 1,144 49% nhow NH Hotel Group UU % St Regis Marriott International L 720 9% Note: STR E = economy; M = midscale; UM = upper midscale; U = upscale; UU = upper upscale; L = luxury a includes Europe, Middle East & Africa; b includes Europe, Middle East & Africa and SW Asia Source: Hotel Analyst Table 2: One to watch brands to be profiled in this report (2017) Brand Company STR Rooms in Europe Europe as share of whole portfolio 7 Days Inn Plateno Hotels Group E - Ascend Collection Choice Hotels International U 3,585 27% Canopy by Hilton Hilton Worldwide % Clayton Hotels Dalata Hotel Group U 4, % Even Hotels IHG U - - GLo Best Western Hotels & Resorts HomeInns BTG Hotels

6 Brand Company STR Rooms in Europe Europe as share of whole portfolio Hualuxe Hotels & Resorts IHG U - - Hub by Premier Inn Whitbread E Nine hotels 100% Hyatt Centric Hyatt Hotels Corp UU - - Jaz in the City Deutsche Hospitality U Two hotels 100% Jo&Joe AccorHotels % Kimpton Hotels & Restaurants IHG UU 149 1% Maldron Hotels Dalata Hotel Group 1, % MamaShelter AccorHotels % Metropolo Jin Jiang Hotels Group Moxy Marriott International UM 1,000 77% nhow NH Hotels Group UU Three hotels 100% Prizotel Carlson Rezidor Hotel Group % Quorvus Collection Carlson Rezidor Hotel Group UU c % Radisson Red Carlson Rezidor Hotel Group c % Tru by Hilton Hilton Worldwide Vib Best Western Hotels & Resorts Zoku Zoku - 1 aparthotel - Note: STR E = economy; M = midscale; UM = upper midscale; U = upscale; UU = upper upscale; L = luxury Source: Hotel Analyst 4

7 Trends and issues White space The large global operators started out as a brand of one, with others added gradually. In the past few years the sector has seen an uptick in M&A which has lead to brand stables expanding and, in the case of Marriott International s takeover of Starwood Hotels & Resorts, creating a group of 30 flags. Despite brands across an array of price points, the appetite for growth does not seem to be abating. This is being driven by two factors: a more sophisticated consumer and the need to provide owners with more options as existing brands reach capacity in some territories and other brands are needed to avoid non- compete clauses. At InterContinental Hotels Resorts, the company celebrated the end of Richard Solomons tenure as CEO with the news that it had been looking at its white space and spotted a gap, as its Holiday Inn brand family reached capacity in the US, with a new brand naked Avid Hotels. The company expects the brand to be franchise- ready in the Autumn with the first hotels beginning construction in early 2018 and opening in Initial development will be focused in the US market. The prototype features 95 to 100 rooms. Solomons said: This new brand builds on IHG s leading position in the midscale segment alongside Holiday Inn and Holiday Inn Express. It addresses the needs of a rapidly growing and underserved segment and we believe it will shape the future of this unique midscale category. Guest rooms will be a mix of 65% 220 square foot king and 35% 275 square foot queen, featuring a built- in work space, open closet storage with luggage shelf, a great shower and a smart TV. Other details include intimate and inviting public spaces, including a mix of seating designed perfectly for travellers looking to spend 30 to 45 minutes in the lobby working, socialising or enjoying a complimentary breakfast and grab and go food providing owners with a simple, low- cost operating model. Elie Maalouf, CEO, IHG, Americas, said: These travellers will often spend hours researching hotels to find a great and affordable lodging experience in this segment. When they can t find it, they compromise, accepting lower standards and an inconsistent experience to get the price they want. We will change that with this new brand by delivering a superior guest experience that doesn t currently exist at this price point. Incoming CEO Keith Barr identified other gaps, commenting in his first earnings call since taking the helm: There are clearly opportunities in luxury, above InterContinental, in resorts, in extended stay, in collection brands. There are a number of areas we have mapped out. But they have to be able to scale up. With the success of our mainstream brands, we see significant opportunity in the midscale segment. There is clear opportunity to build another mainstream brand, priced between Holiday Inn and Holiday Inn Express we have identified guests who are being underserved, they want the basics done well at an exceptional price. This will become one of our largest brands in the US. We have designed a brand which will give guests best in class on the basics. We will target the brand at a USD95 to USD105 rate, addressing a USD20bn underserved 8

8 segment in the US. We expect to bring in incremental customers to IHG who are unhappy with other brands in the market. The demand for this was clear at our recent owners conference with over 100 written expressions of interest. We have thought about how we can launch new brands faster, what makes us different is our level of engagement with our customers - they are co- creating it with us. I also think that other brands that we have launched in the past have been in slower- growing segments. This is playing into the mainstream, where we have thousands of owners. This plays into our strengths. CFO Paul Edgecliffe- Johnson, added: Our expectation with the new brand is that we won t have to put any meaningful capex into the new brand. If you think of our long- term perspective of USD150m in some maintenance and key money, we think that s adequate. There is a little headroom in that number if we decided to launch some new brands. When asked whether the company would buy in a new brand, Barr said: M&A will always be something which we will consider to fill out white space - but there is very little out there at the moment. INDUSTRY INSIGHT: [by Katherine Doggrell: As Accor CEO Sebastian Bazin will be able to tell Barr, the key role of an incoming CEO is to accelerate growth to a level where shareholders find their eyes streaming and their throats hoarse from screaming. As exhausted observers have noted, Bazin has kept his foot firmly down, adding brands organically and through investment, both in the traditional space and out, yet some still see a hole for the group in the US, a hole which IHG is now looking to fill. The phrase white space was used extensively during the IHG call and the new CEO identified what he saw as gaps, with luxury as well as midscale identified. There was no comment on whether the group would be moving into the sharing economy or any other areas which are moving from the periphery to the mainstream. Morgan Stanley remained to be convinced, commenting: We do not see the new brand as being particularly material either in the near- term and think it could lead to a lull in signings for IHG's existing brands as owners consider switching. In the coming months many observers will be looking at IHG to see whether Barr is plugging gaps or is the finger in the dyke. The company has yet to make a move to deter the rumours that it will be scooped up by another soon. The danger of looking at brands in terms of development is that the appeal to the consumer can be put in danger. Imran Hussain, director of collaborative marketing agency THC/Endeavour told us: As an industry, we ve found that is crucial that we know our customer, create something for them, which they like and wish to repeat time and time again. Groups like Ace and citizenm have proved the inherent virtues of knowing one s customer. Having successfully scaled across key destinations cities around the globe, they were committed to either a movement they saw emerging or, in the case of Ace, addressed something that was missing from the market. I don t think reverse engineering a brand so it can fit into an asset owner s ideals is the right play. Naturally I can see the appeal, but it s a short term win for a long term challenge. The long term challenge being repeat business and exposure to the right markets to grow the business into multi- sites globally. 9

9 Segmentation of brands Star- rating Although hotels are classified into 'Star' categories (one- star to five- star), there is no standard method of assigning these ratings, and compliance with customary requirements is voluntary. A US hotel with a certain rating, for example, may look very different from a European or Asian hotel with the same rating, and would provide a different level of amenities, range of facilities, and quality of service. Whereas hotel chains assure uniform standards throughout, non- chain hotels (even within the same country) may not agree on the same standards. In Germany, for example, only about 30% of the hotels choose to comply with the provisions of the rules established by the German Hotels & Restaurants association. Although both UN World Tourism Organisation (UNWTO) and International Organisation for Standardisation (ISO) have been trying to persuade hotels to agree on some minimum requirements as worldwide norms, the entire membership of the International Hotel & Restaurant Association (IH&RA) opposes any such move. According to IH&RA, to harmonise hotel classification based on a single grading (which is uniform across national boundaries) would be an undesirable and impossible task. As a rough guide: One- star hotel provides a limited range of amenities and services, but adheres to a high standard of facility- wide cleanliness. A two- star hotel provides good accommodation and better equipped bedrooms, each with a telephone and attached private bathroom. A three- star hotel has more spacious rooms and adds high- class decorations and furnishings and colour TV. It also offers one or more bars or lounges. A four- star hotel is much more comfortable and larger, and provides excellent cuisine (table d'hote and a la carte), room service, and other amenities. A five- star hotel offers luxurious premises, widest range of guest services, as well as a swimming pool and sport and exercise facilities 3. STR classifications STR and STR Global use Chain Scales and these are a very useful indicator of where brands sit in relation to one another. The brands/chains are sorted by chain scale based on the brands previous year s annual systemwide (global) Average Daily Rate. The rate ranges defining each chain scale are determined by STR itself. They have the following chain scales: Luxury Upper upscale Upscale Upper midscale Midscale

10 Economy There are some discrepancies between where the brand markets itself and where it is positioned by STR. For example, STR Global has Novotel listed as an upscale brand, but Accor in its own marketing literature describes Novotel as upper midscale or midscale. Chain scale segments Performance in the US lodging industry is evaluated based upon chain scale segments, which are generally defined as follows: Luxury - typically offers first class accommodations and an extensive range of on- property amenities and services, including restaurants, spas, recreational facilities, business centres, concierges, room service and local transportation (shuttle service to airport and/or local attractions). ADR is normally greater than USD210 for hotels in this category. Upper Upscale - typically offers a full range of on- property amenities and services, including restaurants, spas, recreational facilities, business centres, concierges, room service and local transportation (shuttle service to airport and/or local attractions). ADR normally falls in the range of USD145 to USD210 for hotels in this category. Upscale - typically offers a full range of on- property amenities and services, including restaurants, spas, recreational facilities, business centres, concierges, room service, and local transportation (shuttle service to airport and/or local attractions). ADR normally falls in the range of USD110 to USD145 for hotels in this category. Upper Midscale - typically offers restaurants, vending, selected business services, partial recreational facilities (either a pool or fitness equipment), and limited transportation (airport shuttle). ADR normally falls in the range of USD90 to USD110 for hotels in this category. Midscale - typically offers limited breakfast, selected business services, limited recreational facilities (either a pool or fitness equipment), and limited transportation (airport shuttle). ADR normally falls in the range of USD65 to USD90 for hotels in this category. Economy - typically offers basic amenities and a limited breakfast. ADR is normally less than USD65 for hotels in this category. Types Upscale luxury: An upscale full service hotel facility that offers luxury amenities, full service accommodations, on- site full service restaurant(s), and the highest level of personalized and professional service. Luxury hotels fare normally classified with at least a four or five- star rating depending on the country and local classification standards. Examples may include: InterContinental, Waldorf Astoria, Four Seasons, Conrad, Fairmont, and The Ritz- Carlton. Full service: Full service hotels often contain upscale full- service facilities with a large volume of full service accommodations, on- site full service restaurant(s), and a variety of on- site amenities such as swimming pools, a health club, children's activities, ballrooms, on- site conference facilities, and other amenities. Examples include: Holiday Inn, Sheraton, Westin, Hilton, Marriott, and Hyatt hotels. Boutique / lifestyle hotels: Boutique hotels are smaller independent non- branded hotels that often contain upscale facilities of varying size in unique or intimate settings with full service accommodations. Boutique 21

11 hotels are generally 100 rooms or less. Some historic inns and boutique hotels may be classified as luxury hotels. Examples include Hotel Indigo and Kimpton Hotels Focused or select service: Small to medium- sized hotel establishments that offer a limited amount of on- site amenities that only cater and market to a specific demographic of travellers, such as the single business traveller. Most focused or select service hotels may still offer full service accommodations but may lack leisure amenities such as an on- site restaurant or a swimming pool. Examples include Crowne Plaza, Courtyard by Marriott and Hilton Garden Inn. Economy and limited service: Small to medium- sized hotel establishments that offer a very limited amount of on- site amenities and often only offer basic accommodations with little to no services, these facilities normally only cater and market to a specific demographic of travellers, such as the budget- minded traveller seeking a "no frills" accommodation. Limited service hotels often lack an on- site restaurant but in return may offer a limited complimentary food and beverage amenity such as on- site continental breakfast service. Examples include Ibis Budget, Hampton Inn, Aloft, Holiday Inn Express, Fairfield Inn, Four Points by Sheraton, and Days Inn. Extended stay: Extended stay hotels are small to medium- sized hotels that offer longer term full service accommodations compared to a traditional hotel. Extended stay hotels may offer non- traditional pricing methods such as a weekly rate that cater towards travellers in need of short- term accommodations for an extended period of time. Similar to limited and select service hotels, on- site amenities are normally limited and most extended stay hotels lack an on- site restaurant. Examples include Staybridge Suites, Candlewood Suites, Homewood Suites by Hilton, Home2 Suites by Hilton, Residence Inn by Marriott, Element, and Extended Stay Hotels. Purpose of hotel Hotels for a specific purpose or aimed at a specific target market such as Business and conference hotels Resort hotels Wellness & spa hotels Examples of specific company segmentations Marriott International In order to present its entire portfolio, from the finalisation of the merger with Starwood Hotels & Resorts, Marriott International decided to divide its brands into those that it qualifies as "Classic" and others that are "Distinctive". Classic hotels, more timeless, versus characteristic hotels with an affirmed personality. The brands are divided in a fairly balanced manner, 15 Classic for 16 Distinctive. A second differentiation characterises them within each major category depending on the level of service: Luxury, Premium and Select. A third distinction separates short- stay hotels from long- stay concepts such as residence hotels. The result is a table with three entries, a new matrix that acts as a basis for marketing teams to refiner the presentation and differentiation of each. Classic Luxury: The Ritz- Carlton, St- Regis, JW Marriott 22

12 Chart 1: Illustrative landscape for leading European hotel brands (2017) SOFT BRANDED 1- STAR 5- STAR EXTENDED STAY LIFESTYLE RESORT / WELLNESS URBAN BUSINESS MEETINGS STANDARD ECONOMY MID- MARKET UPPER MARKET LUXURY Summary Chart 2: Illustrative brandscape for European luxury and upscale brands UPSCALE UPPER UPSCALE LUXURY Source: McKenney Research 25

13 GOLDEN TULIP Ownership Hotel & rooms Launched 1962 STR Classification Geography (hotels) 9% Louvre Hotel Group 147 hotels with 20,238 hotels Upper midscale US Internavonal 91% Characteristics Development plans Brand standards Latest news 4- star hotels combining international standards and local flavours Present in 35 countries Situated in key locations: city centres or strategic places Repositioning of the brand consists of giving the basics a make- over. At the heart of the hotel you will find an open and multifunctional lobby, designed to be a modern- day living space. In addition to check- in/check- out, this hub encourages exchange and encounters, providing clients everything they need to get down to business or sit back and relax. Food service goes beyond the basics you have come to expect, adding surprises throughout the day, adapting to today s clients by serving what they want, when they want it. Enhancing the stay experience, a continually renewed beauty bar is available for business travellers to select and test hygiene products. Weather permitting, the hotel roof will transform into a terrace for convivial, panoramic evenings, making memories that travellers will want to share with friends and family when they get home. Repositioning of the brand Announced that LHG is setting itself the goal of positioning Golden Tulip as the world s first 4- star brand 61

14 GRAND HYATT Ownership Hotel & rooms Launched 1980 STR Classification Hyatt Corporation 47 hotels with 25,492 rooms Luxury Geography (rooms) Operating model Hyatt Corp. as whole 48% 14% 38% Americas Asia Pacific EAME & SW Asia 28% 8% 12% 52% Owned & leased Managed Franchised Others xx Characteristics Performance Key competitors Customer profile Development plans Brand standards Describes itself as Full Service, Upper upscale Key locations include Beijing, Berlin, Dubai, Hong Kong, New York & Tokyo Grand Hyatt hotels are distinctive hotels in major gateway cities and resort destinations. With presence around the world and critical mass in Asia, Grand Hyatt hotels provide sophisticated global business and leisure travellers with elegant accommodations, extraordinary restaurants, bars, spas and fitness centres, as well as comprehensive business and meeting facilities. Signature elements of Grand Hyatt hotels include dramatic architecture, state of the art technology and facilities for an array of business or social gatherings of all sizes. Grand Hyatt is a premium hotel brand with rooms on average, spectacular public spaces, and multiple dining and entertainment venues. Grand Hyatt is differentiated from its competitors by its visual image, prestigious status and glamorous style. Q occupancy 77.2% with ADR USD223 RevPAR USD172, down 3.7 % on the year Mandarin Oriental, Shangri La, InterContinental, Fairmont Individual business and leisure travellers, large and small meetings and social events Providing entry or enhanced presence into attractive markets Expected to open more than 60 hotels in 2016 Rooms rooms. Size 38-50m 2 Club Lounge The Grand Club is a private lounge on select guest floors that offers a complimentary continental breakfast, all- day refreshments, evening cocktails, private concierge and other exclusive services Meetings Grand ballroom and junior ballroom. Meeting and banquet facilities. Minimum 3,000m 2 F&B Spas Fitness centre Latest news Multiple restaurants. Could include live entertainment venues if appropriate to market Minimum of 1,000m 2 with indoor/outdoor pool, large exercise area, spa treatment suites. High- quality, culturally reflective products State- of- the- art fitness equipment. In 2017 Hyatt signed a management agreement with Lotte Tour Development for a Grand Hyatt hotel in Jeju City, South Korea. The new hotel, expected to be the second largest Grand Hyatt hotel in the world, will be Hyatt s sixth property in the country. 62

15 RADISSON RED Ownership Hotel & rooms Launched 2014 STR Classification Carlson Rezidor Hotel Group 14 hotels with 2,523 rooms (open and under development) - Geography ( rooms ) Operating model 27% 33% Asia Pacific EMEA Americas 40% Characteristics Brand specific products Tag line Lifestyle select Totally tapped into the modern, hi- octane, hi- tech global traveller, Radisson Red truly dares to be different. Tech and design savvy, pragmatic, creating an experience that is truly guest centric, from definition to delivery. Radisson RED is a new philosophy that connects with a millennial mindset through art, music and fashion. Offering the freedom, flexibility and fun that the millennial traveller wants. Its spaces are designed to be bold, open and animated OUIBAR+KTCHN food, drinks and social hub Events & Games studio RED fitness Bringing tomorrow s experiences - today Development plans Aims to launch up to 60 hotels globally by 2020 Brand standards Target location Market positioning Design style Urban/airport Lifestyle select No. of rooms Minimum 120 GIA per room (m 2 ) Why is it one to watch? Cutting- edge, pragmatic connected and high tech Has grown quite quickly in a relatively short period of time Now also has the backing of Chinese owner, HNA 165

16 TRU BY HILTON Ownership Hilton Worldwide Hotel & rooms - Launched 2016 STR Classification - Geography Operating model Only one property is under development Characteristics Hilton Worldwide s new midscale brand The company says the new brand is simplified, spirited and grounded in Value. Tru is designed to fill a gap in the US midscale and economy sectors. Cost- conscious meets cool- conscious Development plans The first Tru branded property broke ground in the US in March The company has so far offered it only to existing owners, the majority of which, Nassetta said, were Hampton owners. He added: We have not spent one penny in key money or provided one penny of guarantees or one penny of mezz debt, one penny of anything. Brand attributes Lobby Work spaces Rooms F&B Fitness centre Why is it one to watch? Four- zone lobby. Work, play, lounge, or eat. Our lobby, called the Hive, has a dedicated space for each activity. Our Hive includes plenty of space for guests to spread out and do their work including semi- private, sound absorption alcoves, space to collaborate with others, and an easily accessible tablet and printer. Stylish and thoughtfully designed guestrooms and spacious bathrooms with walk- in showers and lots of light. 24/7 market: Snacks, drinks, light meals, and single- serve wine and beer available 24/7 in its market. Wellness trends, cardio, strength and flexibility Backed by Hilton Worldwide, this brand is aimed at plugging a gap in its brand landscape. 166