QUEST APARTMENT HOTELS

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1 QUEST APARTMENT HOTELS 2016 Australian Coastal Councils Conference Tim Cross National Sales Operations Manager

2 WHAT IS BRAND?

3

4

5 Today Some background on Quest Quest Location Assessment Rockingham Location Immediate Growth Plans

6 THE QUEST BRAND PROPOSITION Consistent with our accelerated network growth LOCATION

7 Background of Quest Apartment Hotels Growth of the Quest Brand in Australia

8 Quest Business Model Customer Focus Corporate Australia

9 Quest product

10 Quest product

11 BUSINESS TRAVELLER MARKET With a core focus on the extended stay traveller 24 Million people in the Australian market Travelled for business 1+ LY 2.153M 2+ Times 1.301M 2-3 times per year 720k 4-5 times per year 239k 6+ times per year 342k Source: CCS Survey Benchmark - Australia

12 THE QUEST BRAND PROPOSITION Key priorities for regular Quest business travellers LOCATION GUEST EXPERIENCE EASE OF BOOKING PRICE PRODUCT

13 LOCATION ASSESSMENT

14 LOCATIONAL ASSESSMENT What are the key criteria when undertaking a new location assessment? Corporate Market in a location: National Accounts, Local market intelligence, major development projects Industry and Commerce over a range of local industry sectors: Business and industrial parks, regional infrastructure projects. Employment levels and regional economic output Access to Transport, Health and Education facilities: Attractions, Conference and Exhibition Centres Accommodation market: Current and future demand markets. Supply pipeline and competitors in the market.

15 SITE ASSESSMENT What are the key criteria when undertaking a new site assessment? Direct street access and frontage Direct street access to car park Direct car park access to reception Access to restaurants, cafes and grocery shops <5min. walk Access to entertainment or recreation facility <5 min. walk Access to public transport <10 min. walk Located within a 3km range of key economic drivers Main road exposure Substantial daily traffic flow Well illuminated

16 QUEST ROCKINGHAM

17 ROCKINGHAM Strong population growth forecasts The forecast from Western Australian Planning Commission is that population in Rockingam will increase by a further 57% over the next 15 years, which is driven by the availability of potential land for further growth and this is expected to flow through to the City.

18 ROCKINGHAM Good access to transport Transport Rockingham is well serviced in terms of transportation, including air, road and public transport. Perth Airport is located approximately 57km from Rockingham and 12kmfrom Perth. It is strategically located in relation to South East Asia, Europe and Africa. Perth Airport is Australia s fourth largest airport in terms of passenger traffic. Perth Airport is the premier international, domestic and regional gateway to WA for commercial aircraft, freight and passengers, and plays an important role in Western Australia s economy (PerthAirport, 2014) ü Proximity to airport ü Major roads and Freeways Rockingham is accessible fromperth by Kwinana Freeway and only a 40 minute drive southfrom Perth s CBD. There is the option to take the scenic route or alternatively a new 4.5 km road has been built and named Kulija Road. This road provides a direct route from the Kwinana Freeway to the Rockingham City Centre, Garden Island and the Kwinana industrial strip and is proposed to reduce transit times by about 10 minutes, cut down greenhouse gases, and diverts freight vehicles from residential areas. ü Public transport access Rockingham is also serviced by public transportation. The Rockingham suburb of Coloongup is home to the bus and railway interchange. Rockingham is on the Mandurah Line and is part of the Transperth Trains network, which is a hybrid metro-commuter rail system with five lines in metropolitan Perth. As such, it receives lots of traffic including trains northbound to central Perth and southboundto thesuburbsof Mandurahand Rockingham.

19 ROCKINGHAM Increasing visitor numbers

20 ROCKINGHAM Strong pipeline of approved and planned projects

21 Concentration of large employers

22 ROCKINGHAM Conference and Exhibition facilities Healthy annual event program Venue Gary Holland Community Centre The Cruising Yacht club Leisure Inn Secret Harbour Golf Links Munja Gardens Function Centre Baldivis Recreation Centre Rockingham Arts Centre Address 19 Kent St, Rockingham WA Val Street, Rockingham Corner Chalgrove Ave & Read St, Rockingham Secret Harbour Boulevard, Secret Harbour 1791 Mandurah Road, Karnup Fifty Road, Baldivis WA 11 Kent Street, Rockingham Event Activities Rockingham Community Fair Annual event in Rockingham featuring the best of what the loca l area has to offer with local performers, market stalls, community group displays and gourmet food Asian Oceania Water-ski and Barefoot Championships Com petitors from across Austra lia and Ne w Zealand, Taiwan, Hong Kong, South Korea, Singapore, Malaysia, Japan, Indonesia and China took part in a ra nge of disciplines including cable ski, barefoot and wakeboard. Autumn Harvest Local event that showcasing great food and the arts in the City of Rockingham. Cockburn Sound Regatta This Regatta has historically be en one of Weste rn Australia's premier events and, with its sheltered waters, stunning beaches and convenience to Fremantle and the Swan River. Baldivis Country fair A popula r event attracting approximately 10,000 visitors each year.

23 ROCKINGHAM Good access to leisure facilities A. Shoalwater Islands Marine Park B. Lake Cooloongup Flora and Fauna Reserve C. The Cruising Yacht Club D. Rockingham Beach road (street front to the beach) E. Rockingham Shopping Centre F. Rockingham Lakes Regional Park

24 ROCKINGHAM Health & Education Facilities Event Other Information Rockingham General Hospital Public hospitable with an emergenc y dep artment and intensive care unit Peel Health Campus Public and private hospital located in Mandurah. There is a 24 hour emergency care centre and comprehensive medical, surgical, maternity and reh abilitation services. Acco mmod ates a specialist medical centre as well as a pharmacy and diagnostic services. Murray District Hospital Offers palliative care as well as in-patient medical services, allied health and general practitioner services. Murdoch University There is a campus at Rockingh am. There is a dedicated desalination res earch center and th e university has plans to make it a research hub. Challenger TAFE A building technolo gy training center was opened in It is the largest training facility of its kind in Western Australia, and provides pre-apprentice and apprentice training. Retail Name Other Information Distance from Rockingham (km) Rockingham Consist of 200 specialty shops. Th ere are 0 City Shopping Centre movies and food at Syren Street and th e famous Ball Machine outside Coles. Warnbro Fair Shopping Centre This centre was recently exp anded to accommodat e a new 17,930m2 retail space, comprising of Big W, 22 speciality shops, four new kiosks, two new ATMs 9 and two new casual mall leasing locations. Th ere is an addition al 340 new car bays and a roof deck containing another 192 carbays forbig W. Stockland Stockland Baldivis has lodged a 15 Baldivis development approval to exp and th e current centre to meet th e needs of the growing area. The exp ansion will take the GLA from 7159sqm to 25,000sqm.

25 ROCKINGHAM Local tourism Attractions & Facilities Event Rockingham Museum Zoo Rockingham Regional Environment Centre Rockingham Wild Encounters Penguins Bonney s Water Ski Park Rockingham Beach and Churchill Park Shoalwater Islands Marine Park Other Information Opening hours are between Tuesday and Sunday. The museum contains a collection of the heritage of Western Australia ingeneral with emphasis on the history of Rockingham District. This is a boutique and hands on zoo where people are given the opportunity to feed the animals. Visitors get the opportunity to learn about the history of the Thrombolites and how they were made and why they are so ra re. There is also the chance for kids to touch gonnanna skin, whale s tooth and many more activities. Visitors can choos e between taking a cruise to see dolphins, pe nguins and sea lions or swim with the dolphins. Over 20,000 pass engers a year participate in the Swim with Wild Dolphins and Dolphin Watch Tours. This park caters for recreationa l and social sk iers and wake boarders through to world class slalom, trick, jump, ba refoot and disabled skiers. During the summer, the park attracts more than 500 skiers and visitors per week. There are BBQ facilities, a site café and the park also offers annual leases for people who want to use their own boats. This is Rockingham s bea ch foreshore area and it is a great way to entertain the kids. There are picnic areas, strips of playground and shady trees to sit under. There are plenty of amenities such as free use of the BBQ, toilets and nearby car parks. This is another opportunity to see peng uins and sea lions by taking ferry tours to Penguin Island. Visitors can also participate in other activities such as diving, canoeing, kayaking,swimming, snorkeling, surfing, fishing and bushwalking.

26 ECONOMIC BENEFITS QUEST PERSPECTIVE Large infrastructure spend and job creation in the construction phase Ongoing employment creation in the operations phase Franchise model = local focus and invested interest Increased capacity for accommodating major conferences Flow on expenditure in local cafes bars and restaurants from in-house guests National account coverage can bring new opportunities. Clients look for coverage across Australia (insurance, banking, relocations) Can encourage complimentary investment (e.g. Food and Beverage, attractions) Conference facilities assists in growing the event and business tourism in the local area

27 GROWTH TIMELINE

28 Quest growth in FY17

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31 Thank you Tim Cross National Sales Operations Manager

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