Hispania, not just another hotel 39 hotels with more than 11,200 keys
Total (Country) SPANISH TOURISM STRENGTH IS DRIVEN BY LONG TERM SUSTAINABLE FACTORS Spain ranks #1 preferred beach destination for future holidays Tourism shows strong underlying growth which is expected to continue Tourism GDP expected growth till 2025 is 2x faster than global GDP (5.4% vs 2.8%) The proliferation of low cost airlines, middle class expansion, population ageing and technology are some of the factors driving growth Sun & Beach holidays are driving the industry, and Spain has a solid competitive advantage. 5 out of the Top-ten resort destinations worldwide are in Spain Spain is the second largest destination by number of international arrivals Spanish tourist GDP expected to grow 4.1% in 2017. >83 million of international arrivals for 2017 (+10% vs. 2016) Vacation types 12% Wellness holiday 23% Other holidays Leading Resort Destination Worldwide Hotel Capacity of Competing Resort Destinations Total (Resort) 54% City holiday 51% Beach holiday 530k 185k 155k - <370k - - - - Most likely beach destinations 44% 27% 24% 14% Spain France Italy Greece 5 Spanish Destinations within Top-10 Resort Worldwide Million International Tourists 5 of top-10 sun&beach destinations worldwide 5 Spanish destinations with c.1/3 of Top 25 Int. Tourists Hispania s portfolio is best-in-class in terms of locations, operators and contract structure, and benefits from high barriers to entry Sources: Hispania Still a hot market but well reflected by best-performing share UBS 2017. All rights reserved. Reproduced with permission. Exceltur, INE and EY estimate of share of total tourists to Sun&Beach staying at hotels.
TOURISM IS THE MAIN DRIVER OF THE SPANISH ECONOMY According to the Caixabank annual report, tourism represents 16% of the Spanish GDP Summer 2017 closes with an increase of 4,2% vs summer 2016 (European average is 9,6%) Results from touris companies have increased 63,9% vs last year Quarterly growth Tourism GDP vs Spanish GDP Company balance of the Spanish tourism sector (3Q 2017) Sales Net Profit Tourism sector is the best sector in creating employment 16,2% new jobs come from tourism sector (European average is 9,1%) 70.091 new Jobs have been created this September, 4,6% vs 2016 and 0.8p.p. over the other sectors of the Spanish economy Price variation Tourism GDP Spanish GDP Tourism employment evolution vs total employment Tourism employment (June 2017) According to the Travel & Tourism Competitiveness Index 2017 report, Spain has been awarded with the first place in the ranking according to the global T&T competitiveness index, placing the country as the most competitive in the world in 2016, with a rating of 5,4 points over 6 Sources: Exceltur Third Quarter Report and Caixabank annual report.
SPAIN IS DECLARED TOP 3 WORLD HERITAGE BY UNESCO Spain is the third country with more World Heritage declared by UNESCO Number of World Heritage Properties by region With 45 World Heritage sites declared by UNESCO, Spain is number three of the ranking, only after Italy with 53 and China with 48 World Heritage Sites in Spain include not only monuments but also cities and natural places Spain is the country with most protected sites Spain is at the top of Biosphere Reserves with 48 protected sites The Biosphere Reserves declaration by UNESCO is also an acknowlegment of the work of protection Sources: UNESCO Public and Private Partnerships The cultural sector offers a great and unexplored potential for public private partnerships. Innovative funding mechanisms including PPPs can have the following benefits: Increased recognition of the potential contribution of the private sector Easing the financial burden on governments Least-developed countries stand to benefit from such alliances because of their immensely rich cultural heritage Public-private investments allow for speedy implementation and flexibility while improving the quality of services
HISPANIA HAS BECOME THE LEADING HOTEL INVESTOR IN SPAIN Largest Hotel Owner in Spain Focus on hotels to leverage strong Spanish hotel sector performance and achieve critical mass # Owner Hotels Rooms 1 1 Hispania Activos Inmobiliarios 40 11.296 2 Meliá 37 10.969 3 H10 Hoteles 43 10.105 4 Hoteles Globales 41 9.218 5 RIU Hotels & Resorts 27 9.079 6 Best Hotels 23 7.153 7 Iberostar 21 6.691 Share price for the period (Jan- 30 th Sep 2017) 8 SEGIPSA 102 6.474 9 Hipotels 29 6.428 10 Grupotel Hotels & Resorts 34 6.299 Hispania: 15,25 Colonial: 8,39 Axiare: 17,29 Lar: 8,22 Merlin: 11,51 Ibex 35: 10.381,50 Source: Alimarket, JLL, IREA, REIT Companies Reporting (1) Includes 120 keys for Las Agujas and 112 keys for NH Málaga extension; (2) Excluding Capex, and on a consolidated basis (incl. BAY minorities). It does not include NH Málaga, as it comprises until 2016 included
HISPANIA HAS BECOME THE LEADING HOTEL INVESTOR IN SPAIN Focus on hotels to leverage strong Spanish hotel sector performance and achieve critical mass Share price for the period (Jan- 30 th Sep 2017) # Owner Hotels Rooms 1 Hispania Activos Inmobiliarios 40 11.296 2 Meliá 37 10.969 3 H10 Hoteles 43 10.105 Hispania: 15,25 Colonial: 8,39 Axiare: 17,29 Lar: 8,22 Merlin: 11,51 Ibex 35: 10.381,50 Largest Hotel Owner in Spain # Owner Hotels Rooms 1 Hispania Activos Inmobiliarios1 40 11.296 2 Meliá 37 10.969 3 H10 Hoteles 43 10.105 4 Hoteles Globales 41 9.218 5 RIU Hotels & Resorts 27 9.079 6 Best Hotels 23 7.153 4 Hoteles Globales 41 9.218 # 5 RIU Hotels & Owner Resorts Hotels 27 Rooms 9.079 61 Best Hispania Hotels Activos Inmobiliarios 23 40 11.296 7.153 72 Iberostar Meliá 21 37 10.969 6.691 83 SEGIPSA H10 Hoteles 102 43 10.105 6.474 94 Hipotels Hoteles Globales 29 41 6.428 9.218 10 5 Grupotel RIU Hotels Hotels & Resorts & Resorts 34 27 6.299 9.079 6 Best Hotels 23 7.153 Source: Alimarket, JLL, IREA, REIT Companies Reporting 7 Iberostar 21 6.691 (1) Includes 120 keys for Las Agujas and 112 keys for NH Málaga extension; (2) Excluding Capex, and on a consolidated basis (incl. BAY minorities). It does not include NH Málaga, as it comprises until 2016 included 8 SEGIPSA 102 6.474 7 Iberostar 21 6.691 8 SEGIPSA 102 6.474
NEW TRENDS IN THE HOSPITALITY ECOSYSTEM RAISE VALUE MAXIMIZATION OPPORTUNITIES Hotel Performance OLD Behavior Focus on occupancy and cost control, limited pricing strategy 95% TTOO Customers shoveled into asset by TTOOs Focus on occupancy AND PRICING, based on dynamic pricing strategy Unbundling Packages & Transport Online distribution NEW Paradigm Customer Experience Given guaranteed occupancy and tariffs, providing experience is not on the radar screen No reviews available online Investment driven by need to contribute to customer experience Online review is key on decision-making. Need to cultivate Tripadvisor / Booking Investment Philosophy Returns for Owner Example: (Barceló Teguise Beach) Minimize investment in order to maximize returns Mindset on maintenance and facelift No need for owner to go crazy on thinking about what to build and with whom to partner Aspire to fixed return: no incentive in taking further risk Guaranteed contracts with TTOO Tripadvisor? (who cares ) Owner actively involved in design and partner selection Design / quality critical for successful customer experience Increasing levels of investment and thinking into what to build Participate in improved performance, while operator willing to incentivize owner s investment with extra hotel performance Increased number of variable lease agreements 1 Tripadvisor (1 out of 38) Year 2014 Year 2017 Total ADR: 53 Occup.: 92% GOP: 0.6m Total ADR: 157 (+3x) Occup: 86% GOP 2017E: 7m (+12x)
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