Vietnam Lodging Industry Hotel Survey June 2007

Vietnam Lodging Industry Hotel Survey June 2007

1 Table of Contents Foreword 2 Introduction and Key Highlights of the Hotel Survey 4 Introduction to the Vietnam Hotel Survey 2005-2006 by Grant Thornton Vietnam 4 Market Overview 2006 6 Key Highlights of the Vietnam Hotel Survey 2005-2006 7 Market Overview of Vietnamese Hotel Industry: Achievements and Opportunities 10 Vietnam Economic and Tourism Industry Overview 10 High-end Hotel Industry in Vietnam 13 Hotel Survey Results 15 Vietnamese Hotel Industry by Star Category 15 Vietnamese Hotel Industry by Hotel Size 20 Vietnamese Hotel Industry by Region 24 Appendix 1 28 Appendix 2 32

2 Foreword Grant Thornton (Vietnam) Ltd. is a foreign invested Accounting and Management Consulting company with operations in Vietnam since 1993. We are member of Grant Thornton International, one of the world s leading organizations of independently-owned and managed accounting and consulting firms providing assurance, tax and specialist advice to both international companies, and entrepreneurial, owner-managed and high-growth companies around the world. Member firms operate in over 113 countries, bringing together 25,000 personnel in 521 offices worldwide. Our firm is distinguished from the other international firms in that it is locally owned and managed by its locally resident partners, who are committed on a long-term basis to Vietnam. Our managing partner worked and lived in Vietnam for over 17 years and the other senior partners have lived and worked here for over 25 years, which clearly distinguishes us from our competitors. Our clients benefit from this by seeing the same faces year after year, faces that belong to professionals who live in Vietnam on a permanent basis and render professional advice from their considerable in-country and international experience. Grant Thornton Vietnam has two full-service offices in Hanoi and Ho Chi Minh City. Our key services include Assurance, Taxation, Corporate Finance, Investment & Management, Business Services, and Growth & Strategic Services. Being one of the leading professional service firms, we serve a variety of Multi-national, International and Vietnamese companies. Grant Thornton Vietnam has a proven track record of serving clients in Hospitality Industry. We have a strong team with a well-established background in providing consultancy services to businesses in this industry. The team is led by Managing Partner Ken Atkinson, who has over 25- years experience in Tourism Development in Asia, 17-years experience in Vietnam, and 28-years emerging market experience. He has advised on tourism developments in Russia, China, Vietnam, Thailand and the Philippines, with a value in excess of US$1 billion. We would like to thank all those hotels who participated in this hotel survey. The crucial part of the survey is the real performance data of the high-end hotels in Vietnam for the past two years of operation namely 2005 and 2006. The data has been collected and structured in the form of percentages of specific high-end hotels. The survey report was completed in June 2007. We now would like to send you the statistical report with the final survey results. We reconfirm that your business name as well as the names of all other participants will not be revealed as a part of the Survey results.

3 We would like this survey to be the premier source of information in years to come and would welcome your ideas on how to make it more useful and also look forward to your participation in next years survey which will be undertaken at the end of the first quarter. We sincerely thank you for your time and your interest. Yours faithfully, Ken Atkinson Managing Partner E Ken.Atkinson@gt.com.vn T (848) 9143 747 F (848) 9143 748

4 Introduction and Key Highlights of the Hotel Survey Introduction to the Vietnam Hotel Survey 2005-2006 by Grant Thornton Vietnam This is a statistical report produced by Grant Thornton Vietnam Ltd. This study presents financial, operational and marketing information from 29 hotels and resorts in fiscal year 2005 2006 in Vietnam. For the simplicity of the report, Hotel refers to both hotels and resorts. Statistics are presented by Hotel Region (hotel location), Hotel Size (number of rooms) and Star Category (hotel ratings). Hotel Regions are separated into three main regions in Vietnam, which are the North, the Central region and the South. In the North, some of the hotel participants are located in the capital Hanoi, Ha Long city where Ha Long Bay, a Wonder of the World, belongs. In the Central region, many hotel participants are from such tourism cities as Da Nang, Hoi An, Hue, Nha Trang and Phan Thiet. Hotel participants from the South of Vietnam mainly locate in Vung Tau Da Lat and Ho Chi Minh City, the most densely populated city in Vietnam. Hotel Size in this survey is defined according to the number of rooms per hotel. Three ranges from small to large hotels are described as less than 75 rooms, from 75 to 150 rooms and more than 150 rooms. In order to present statistics by Star Category, this survey only focuses on hotels rating from 3 to 5 stars. For confidentiality and significant representation, the sample size must be at least 4 hotel participants in each area of analysis. This report gives readers a general, as well as a specific, view in hotel operations in Vietnam by presenting data in many different areas of analysis such as hotel facilities, staffing, financial statements, market data and so on. In financial statements, financial data is shown up to net income excluding interest, tax, depreciation and amortization for the purpose of relevant comparability. Data used in this report are rounded to the nearest whole number and the currency unit is US dollar. As can be seen later in this paper, most data are presented as percentages or as average numbers. For instance, in financial statements, the US dollar amounts are shown as percentage of total revenues. In market data analysis and other sections, statistics are in the form of average of respective items. To serve as a smart guideline for comparison purposes, the report presents survey results of each specific category along with key highlights of the findings. A list of tables is prepared at the beginning of each section. In the Appendix, readers also find a list tables showing minimum, maximum and mean value for 2005 and 2006. However, this report makes no attempt to set operating results for the Viet Nam hotel industry. The figures and ratios in this report should not be considered as standards for any type of property. The report s users also need to note that not

5 all the changes from one year s results to the other s are due to actual year-to-year difference. Sometimes, they may be a result of a different mix of survey participants. Readers should note that the results may not always be reflective of the actual market situation due to the relatively low number of participants and should be treated as an indication only.

6 Market Overview 2006 The year can be categorized as one of growth in visitor arrivals, occupancy and room rates together with an increase in interest from major hotel groups and also in M & A activity. This trend has continued in the first half of 2007. Foreign Visitor arrivals in 2006 reached 3.6 million, an increase of 6% over 2005. Of these, 22.7% were business travelers and 59.9% tourists. East Asia (China, Japan, Korea and Taiwan) remained the largest international market segment for Vietnam s tourism and hospitality industry, accounting for 38.2% of total international arrivals. Not to be overlooked are the 18 million domestic travelers many of whom are starting to indulge in luxury hotels. This result generated US$ 2.25 billion in revenue provided by the tourism industry last year alone. All major 5 star hotels in Hanoi and Ho Chi Minh City (HCMC) recorded significant increases in average room rates and occupancy but the full effect of the shortage of rooms in the major cities may not be fully reflected until 2007 year end. Many of the 5 star hotels have abandoned rack rates and have moved to available room rates with one hotel, at least, in Hanoi managing to sell rooms in excess of US $ 400 per night on a regular basis. The lack of new hotel development since the Asian financial crisis has finally caught up with demand resulting in lack of available rooms at certain peak times in both Hanoi and HCMC and in particular around the APEC summit meeting last November but again this has continued into 2007. Hotel developers and operators are now showing renewed interest in the market both in the 5 star and the resorts and spa sectors. Such groups include Kingdom Hotels (Raffles, 4 Seasons and Movenpick), Banyan Tree, Colony Resorts, and Intercontinental. With the huge volume of money being channeled into investment funds focused on real estate investment in Vietnam a number of sales of interests in major hotel properties has taken place in the last 2 years including the Hilton (Hanoi), Sofitel Metropole (Hanoi), Guoman (Hanoi), Duxton (HCMC), Omni (HCMC) and Furama (Da Nang). Accor Hotels continues to dominate the scene as the group with the largest number of city hotels under management and Six Senses/Evason the leading spa/resort operator. The largest hotel investor in the foreign invested sector is Vina Land.

7 Key Highlights of the Vietnam Hotel Survey 2005-2006 This is the third edition of the Vietnam Hotel Survey conducted by Grant Thornton Vietnam. The survey studies 29 hotels with 3,946 rooms from different cities in the 3 main regions of Vietnam. The South had the largest number of survey participants (12 hotels), the Central region with 10 hotels and the North with 7 hotels. From the 29 hotels sample, not all the hotels have qualified and completed information for use throughout category analysis. The number of responses shown in each table of this report indicates the respondents who provided appropriate data. Below are two key operating indexes, which are average annual occupancy rate and average annual room rate per hotel, in 2005 and 2006 for Vietnam and the three major regions. Average Annual Occupancy & Room Rate COMPOSITION Average Annual Occupancy Rate Average Annual Room Rate 2005 2006 2005 2006 Viet Nam 63.7% 62.2% $55.78 $60.06 North 78.6% 74.4% $60.82 $73.68 Central 52.2% 57.8% $42.94 $49.67 South 62.4% 59.0% $60.74 $60.58 A slight decrease in occupancy rate in Vietnam hotel industry may be due to the difference in number of participants over two years and/or the increase in average room rate of 7.7%. The North remains the market leader in terms of occupancy with over 70%. Average room rate saw an increase of 21.1% in the North and 15.7% the Central region while the South saw a stable rate. Later in this report, readers can find a financial analysis report for each category of hotel (3, 4 and 5 star) to have a specific profile of hotel industry. In general, net incomes as a percentage of revenue of 4 and 5-star hotels are much higher than that of 3-star hotels. The following table shows some key operating figures by star category. Key Operating Figures COMPOSITION 3-star 4-star 5-star Number of Responses 5 12 7 Average Total Rooms per Hotel 92 114 208 Average Occupancy per Hotel 64.8% 54.4% 73.1% Average Rate per Hotel $37.43 $66.26 $69.06 Net Income* (as a percentage of Revenue) 0.4% 21.1% 39.7% * Net Income is before depreciation, interest payments and taxes Average occupancy and room rate of 5-star hotels are obviously the highest in comparison to the two other categories. However, the largest number of survey participants is 4-star hotels, which may explain the fact that their occupancy rate is lower than 3-star hotels. The pie charts below are the breakdown of revenue in 2005 and 2006 which show no big differences on their contributions for the years observed.

8 Departmental Contributions as a Percentage of Revenue in 2005 and 2006 Other Income 10.2% Other Income 11.3% F&B Sales 26.4% Room Sales 63.4% F&B Sales 27.7% Room Sales 61.1% 2005 2006 There is a slight reduction in departmental expenses as a percentage of total revenue per hotel in 2006 compared to the previous year from 71.8% to 70.4%. While most operating expenses decreased in 2006, F&B and Sales & Marketing expenses tended to rise. Departmental Expenses as a Percentage of Revenue in 2005 and 2006 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 17.4 4 % 16.6 1% 16.19 % 15.7% 15.2 % 15.46% 8.71% 7.36% 7.02% 6.39% 4.75% 3.99% 4.17% 3.18% Room Expenses F&B Expenses G&A Expenses Sales & Marketing Expenses Repair & Maintenance Expenses Energy Expenses Other Expenses 2005 2006 Reservations via Internet, Travel Agents and Tour Operators are gaining importance with an increase from 44.76% in 2005 to 57.35% in 2006 (percentage of room sales). The table below shows a significant decrease in direct reservations from 41.21% to 29.80%. People tend to use high technology distribution channels and tourism services rather than self-service. Sources of Advanced Reservation as a Percentage of Room Revenue in 2005 and 2006 COMPOSITION 2005 2006 Direct reservation 41.21% 29.80% Reservation system (internet) 5.63% 6.77% Travel Agents and Tour Operators 39.13% 50.58% Other Channels 14.03% 12.86%

9 Guest analysis results of this survey indicate that Vietnam is becoming a more appealing destination for Asians and Europeans. An important trend to consider is the strong 6% increase (from 77.0% in 2005 to 81.6% in 2006) in international arrivals reported by hotels participating in the survey. The bulk of these arrivals originate from Asia and Europe, and comprise primarily of tourists, tour groups and business travelers. Guest Analysis Market Segmentation 2.4% Government Officials 2.0% Business Travellers Individual Tourists Tour Group 5.3% Conference Participants 4.0% 9.6% Others Type of Guest Domestic Guests International Guests Country of Origin of Guests Asia Europe North America 10.7% 10.0% Oceania 9.2% 8.6% Others 7.5% 7.3% 22.7% 25.1% 28.4% 24.9% 31.5% 26.8% 17.2% 18.4% 23.0% 38.2% 42.5% 34.4% 31.6% 2006 2005 81.6% 77.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% While Vietnam received a lot more international guests, hotels faced a decrease in the number of domestic guests from 23.0% in 2005 to 18.4% in 2006. A possible explanation for this phenomenon is that there are an increasing number of overseas tours offered with attractive prices and people prefer to go abroad for their holiday.

10 Market Overview of Vietnamese Hotel Industry: Achievements and Opportunities Vietnam Economic and Tourism Industry Overview 1. Vietnam Economic Overview Vietnam is considered as one of the most successful countries in the world in terms of sustained rapid economic growth over the last decade, (average GDP growth rate for 1994-2005 period was 7.57%). The Vietnamese economy is the second highest growth economy in the Asia Pacific Area after China, with growth rates of 7.7% in 2004, 8.4% in 2005 and 8.17% in 2006. In addition, GDP growth is predicted to be within 7.5% to 8% for the 2006 2010 period. (Source: Saigon Times Weekly and General Statistics Office of Vietnam). GDP Growth rate of Vietnam from 2000 to 2006 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2000 2001 2002 2003 2004 2005 2006 Year End Growth Average Growth rate Prospects Vietnam has many investment opportunities and has the potential to become an economic power in Asia. It owes its potential mainly to its function as a gateway to South East Asia, its numerous natural resources including; oil, gas reserves, mineral deposits, rivers, lagoons, natural beauty spots, historic sites and a one thousand kilometer coastline. Its competitive advantages are the inexpensive work force, the high literacy rate and a high level of trainability all of which will attract foreign investors. Vietnam has taken part in regional and international cooperation forums such as the World Tourism Organization, tourism cooperation with ASEAN, Asia-Pacific Tourism Association, sub-mekong region tourism development program, and East-West corridor cooperation. Recently, Vietnam successfully organized the APEC Tourism Ministers Meeting, gaining high appreciation and international recognition.

11 Through its ascension into the World Trade Organization (WTO January 11 th, 2007), Vietnam will improve its bilateral and multilateral economic relations contributing to a more transparent, and equal, business environment. Vietnam has enhanced its international cooperation, and relations, in the field of tourism, signing 37 joint tourism cooperation agreements and establishing relations with more than 1,000 travel firms from over 50 countries. The ability to attract foreign direct investment (FDI) has consequently improved. This is an important capital source to develop the tourism industry, permitting Vietnam to draw level with regional and global development. At present, many big economic groups are looking at investing in Vietnam, but are more importantly focusing on the tourism industry. 2. Vietnam Tourism Industry Vietnam is a country with a rich history and cultural heritage through which it continues to attract visitors from around the world. Its economic development, stable political situation, the beautiful coastal line and the scenic countryside make it a hot destination for both foreign investors and tourists. The World Economic Forum ranked Vietnam as 88 th, by means of its first Travel and Tourism Competitiveness Report (TTCR 2007). The rankings are based on the Travel and Tourism Competitiveness Index covering 124 countries, which have the most attractive environment for the development of the travel and tourism industry. This year, the tourism sector has decided to focus on improving product quality and accelerating administrative reform with the aim of institutionalizing its apparatus, increasing the quality of products and services, sharpening its competitiveness and integrating deeper into the regional and global tourism markets. The state budget will allocate US$46.8 million in tourism infrastructure, a 21 per cent increase in budget allotment from 2006, bringing the total state investment in tourism infrastructure to US$220 million from 2001-2007. Furthermore, VNAT is expecting to receive 23-24.4 million tourists, including 4-4.4 million foreigners, and earn an estimated turnover of US$3.5 billion Development plan Vietnam to become a developed tourism country by 2010 VNAT has announced its national tourism action program for the 2006-2010 period, with an objective to turn Vietnam into a developed tourism country by 2010. The general objectives are to set a powerful and sustainable development program for the industry, affirming the role of a spearhead economic sector for the country. By 2010, Vietnam will have physical and technical tourism facilities and unique tourism products with Vietnamese cultural identities turning it into an attractive destination. Under the action program, the sustainable growth of the tourism sector must be ensured as to increase international arrivals from 10 to 20% each year. By the end of the term, international arrivals are expected to reach 5.5 to 6 million visitors and domestic guests reaching 25 million. Income from tourism is estimated at US$ 5 billion, doubling the income in 2005 (VNAT). The state will allocate US$7.56 million for a national tourism action program, in which US$1.375 million will be used for tourism marketing activities. Nevertheless, this budget is still small compared to other countries in the region. For example, Malaysia spends US$60 million each year for its slogan Truly Asia.

12 The tourism sector plans to increase its workforce to 1.4 million workers by 2010. Of the total number, receptionists, tourist guides and hotel workers will account for the largest proportion, with some 308,000 workers. Professional standards were found to be highly variable, and many workers lack basic knowledge of tourism and foreign languages. Consequently, the industry will focus on building more training establishments and renewing training curriculums, content, and methods in the direction of combining theory with practice. State-owned tourism businesses are being equitised and restructured with a view to forming strong tourism groups or parent companies in order to conduct effective business in an international competitive environment. In order to enhance the competitive capability of enterprise in the context of Vietnam becoming a WTO member, the sector is scheduled to complete the privatization program by 2008.

13 High-end Hotel Industry in Vietnam 1. Vietnam hotel industry market Vietnam now has 142,000 hotel rooms in 7,065 accommodation places. These include 25 fivestar hotels, 64 four-star, 135 three-star and 1,000 one- or two-star hotels. In the last few years, the demand for 3-5 star rooms has increased sharply as the result of the fast growing number of arrivals. There are only 45,000 high-grade rooms and this has proven to be a small figure compared to the increased demand. At the current investment pace, Vietnam will have an additional 28,000 rooms within the next three years, giving a total of 170,000 rooms. 2. Major markets Ho Chi Minh City Ho Chi Minh City (HCMC), the largest city in Vietnam, has become an attractive destination for both tourists and foreign investors. Its tourism industry performed well in 2006 with total revenue over US$1 billion, an increase of 23 per cent over the previous year. This revenue, according to the Ho Chi Minh City Tourism Department, includes US$ 900 million from hotel and restaurant services, and US$113.75 million from travel services, a 22% and 17% year-on-year increase respectively. The industry revenue forecast is set at US$1.21billion for 2007 and US$2.18 billion for 2010. (Source: Vietnam Investment Review) Ho Chi Minh City currently holds 10,000 guesthouses and lodges, 171 star-rated hotels with over 11,000 rooms, 60% of which are three to five-star rooms. Hence, a shortage of standard hotels is becoming a concern for the tourism authorities. Almost all star-rated hotels in the city are actually running at close to full capacity. According to a report from the Saigon Tourism Corporation, the city could be short of 14,000 international-standard hotel rooms between now and 2010. The city s tourism department expects the metropolis to be 4,000 rooms short this year as it estimates the number of arrivals to the city to be 7.15 million, both foreign and domestic. Facing this increased demand, Mr. Le Hoang Quan, the city chairman, in a recent meeting, encouraged organizations to cooperate with the tourism sector to invest into building more international-standard hotels. (Source: Vietnam Investment Review) Hanoi For several consecutive years, Hanoi has been voted by readers of the prestigious US Travel & Leisure Magazine as one of the ten most attractive cities in Asia. The tourism sector of the city made great progress last year. Turnover from Hanoi s tourism sector were estimated at US$875 million, an increase of 26.8% over that of 2005. In 2006, nearly 12,000 enterprises registered to do business in the travel field, 7,000 more than 2005. Nearly 6 million tourists visited Hanoi last year, including 1.1 million foreigners, an increase of 11% over 2005. It has been projected by the Hanoi Department of Tourism, the capital city will welcome two million visitors by December 2007. Hanoi will need around 26,000 rooms of three-star standard and upward, including 7,000 rooms of 4-5 stars by 2010. Meanwhile, with newly licensed projects, the city will have an additional 2,000 high-class hotel rooms by 2010. According to Le Thanh Ha, an official from the Ha Noi Department of Tourism, Ha Noi currently has 34 hotels rated 3-5 stars with over 5,100 rooms, including 2,360 rooms in 8 five-star hotels and over 1,000 rooms in 6 four-star hotels. The occupancy rates at these hotels for the year-end reached 85 percent, with 90 percent of luxury rooms occupied.

14 During the peak season, international-standard accommodations in Ha Noi meets about 70 percent of demand. Facing this shortage, Hanoi is now focusing on hotel investment. It is witnessing a race among foreign groups to gain good sites for five-star hotel construction. The Ha Noi People s Committee issued a decision to offer local and foreign investors incentives for investment in construction of upscale hotels. With this decision, investors will be able to choose their form of investment, capital mobilization and the duration of their projects. They will be provided with information about master plans on land use and development as well as any other relevant information they require. For projects requiring investments under US$12.55 million, the investor itself will investigate and decide the size of investment. However, after investigating and deciding on committing to a project of more than US$12.55 million, investors need the Ha Noi People s Committee to verify and the Prime Minister to license the project. The investor has to start construction as approved within 12 months of receiving land for the project. If they fail to do so, the authorities will retrieve the land. Licenses will be available to all investors with the financial means, the ability and experience to manage hotels, including enterprises in all economic sectors, foreign invested enterprises, foreign organizations, individuals, and Vietnamese abroad. Central region and the Central Highlands There is nowhere in Vietnam that has diverse natural resources like the Central region. This region has vast sources of fisheries, salt fields, white sand that is material for industries, many beautiful beaches and bays. Tourism in these regions has grown very fast over the past few years thanks to a strongly developed infrastructure. Government authorities focus on developing transport systems to promote tourism industry investments. According to Mr. Le Huu Quang Huy, the Director of the Central Region Investment Promotion Centre, a unit under the Ministry of Planning and Investment, there were 320 operational foreign direct investment projects(fdi) in the Central region between 1988 to June 2006, with the total registered capital of US$2.23 billion, accounting for 4.1% of the total number of Vietnam. The table below shows the Central region new projects progression in the past 3 years. Operational projects in the Central region from 2004 to 2006 Year Number of projects Total registered capital 2004 241 $1.45 billion 2005 298 $1.84 billion 6/2006 320 $2.23 billion Coastal provinces in the region, which run from Thua Thien - Hue to Khanh Hoa province, have compiled a list of 400 projects calling for foreign direct investment (FDI) in the 2006-2010 periods totaling more than US$6 billion. There is also another list of 35 national projects in the Central region with the total capital of US$9 billion that has been submitted to the Prime Minister for approval before being introduced to foreign investors. Thus, approximately US$15 billion of FDI will be attracted to the Central provinces in the near future.

15 Hotel Survey Results In this section, all the tables layout has been standardized to enable consistency throughout the document. In each section, the number of responses for each characteristic of the survey is included, helping the report s users judge the validity of the data collected. Figures shown in these tables are for the fiscal year 2005-2006 (January December). Currency unit used is the US dollar. For those who would like to view the data in Vietnamese dong, the conversion rate of US$1 = VND 16,000 is applied in 2006. Vietnamese Hotel Industry by Star Category Introduction This section presents hotel performance by star category. All 29 hotels participated to the survey and their responses have been divided into three separated star classifications: 3-star, 4-star and 5-star (see tables 1.1 to 1.5). The detailed results are summarized in the tables below: TABLE 1.1: Facilities Analysis and Staffing; presents hotel core services facilities as well as basic employee data TABLE 1.2: Financial Report; offers an in depth look at departmental revenue & expenses as a percentage of total sales TABLE 1.3: Market Data; tenders a thorough examination of all guest arrivals TABLE 1.4: Occupancy and Room Rate; represents an annual average of room occupancy (annual, low & high season) in addition to annual average room rates TABLE 1.5: Sources of Reservation; demonstrates how guests have made their reservations with their hotel Highlights The average numbers of rooms for 3-star and 4-star hotels were roughly the same, with an average of 92 and 114 rooms respectively. They, therefore, employ more or less the same number of workers while 5-star hotels employ more staff for twice the amount of rooms, with 1.9 employees per available unit, against 1.5 per unit for 3-star and 4-star hotels. Guest Analysis by hotel rating is consistent with national results. The market segments (purpose of travel) consists mainly of business and tourism, the total ranging from 79.3% to 87.6% from which a large majority are from Asia and Europe.

16 In comparison to low season, visitors traveling into Vietnam during high season face an increase in rates between 14% and 24.7% while average occupancy rates increase range from 22.5% to 41.7%. Reservations, for three-, four- and five-star guests, are primarily made through direct reservations, travel agents and tour operators accounting for 68%, 84.8% and 82.3%, respectively.

17 TABLE 1.1 Vietnamese Hotel Industry by Star Category Facilities Analysis and Staffing Average Number of Core Services Facilities Per Hotel COMPOSITION 3-star 4-star 5-star Number of Responses 4 9 7 Restaurant 1 2 2 Bars 1 2 2 Business Center 1 1 1 Others* 3 4 7 Total 6 9 12 *Included Services: Pool, Spa, Conference rooms, Banquets, Golf, Casino Average Number of Total Employees Per Hotel and Employees Per Room COMPOSITION 3-star 4-star 5-star Number of Responses 5 10 7 Average Number of Employees/ Hotel 134 167 355 Average Number of Employees/ Available Room 1.5 1.6 1.9 Average salary & related expenses/ Employee/Month $159.38 $237.53 $331.13 Average Staff Growth 8.7% 3.3% 1.1% TABLE 1.2 Vietnamese Hotel Industry by Star Category Financial Report Percentage of Revenue COMPOSITION 3-star 4-star 5-star Number of Responses 5 12 7 Average Total Rooms per Hotel 92 114 208 Average Occupancy per Hotel 64.8% 54.4% 73.1% Average Rate per Hotel $37.43 $66.26 $69.06 REVENUE Rooms 66.8% 63.0% 53.7% Food & Beverage 21.2% 27.7% 32.3% Other Income 12.0% 9.3% 14.0% Total 100.0% 100.0% 100.0% DEPARTMENTAL EXPENSES Rooms 58.0% 23.1% 16.7% Food & Beverage 77.7% 80.3% 53.8% Other Expenses 14.6% 85.6% 58.2% Total 57.0% 44.8% 34.5% DEPARTMENTAL INCOME 43.0% 55.2% 65.5% OPERATING EXPENSES G&A Expenses 20.9% 17.3% 9.5% Sales & Marketing Expenses 5.7% 4.4% 4.8% Repair & Maintenance Expenses 0.3% 4.4% 2.9% Energy Expenses 7.1% 7.1% 8.0% Total 34.0% 33.1% 25.1% HOUSE PROFIT 9.0% 22.0% 40.4% FIXED CHARGES Property Insurance 5.3% 0.2% 0.3% Land Rental 3.3% 0.7% 0.5% Total 8.6% 0.9% 0.7% NET INCOME* 0.4% 21.1% 39.7% * Net Income is before depreciation, interest payments and taxes

18 TABLE 1.3 Vietnamese Hotel Industry by Star Category Market Data Market Segmentation COMPOSITION 3-star 4-star 5-star Number of Responses 4 10 6 Government Officials 2.1% 3.6% 0.7% Business Travelers 33.3% 14.7% 29.1% Individual Tourists 18.9% 26.6% 37.8% Tour Group 31.3% 38.0% 20.7% Conference Participants 5.4% 4.7% 6.2% Other Guests 9.1% 12.4% 5.4% Total 100.0% 100.0% 100.0% Guest Analysis COMPOSITION 3-star 4-star 5-star Number of Responses 4 11 7 Domestic Guests 32.4% 20.2% 7.8% International Guests 67.6% 79.8% 92.2% Total 100.0% 100.0% 100.0% Country of Origin of Guests COMPOSITION 3-star 4-star 5-star Number of Responses 4 10 6 Asia 44.5% 28.3% 50.5% Europe 25.1% 40.8% 30.0% North America 7.0% 12.8% 9.5% Oceania 12.9% 9.2% 6.6% Others 10.5% 8.8% 3.5% Total 100.0% 100.0% 100.0% TABLE 1.4 Vietnamese Hotel Industries by Star Category Average Occupancy Rate and Room Rate Average Occupancy & Room Rate COMPOSITION 3-star 4-star 5-star Number of Responses 5 12 7 Average Total Rooms per Hotel 92 114 208 Average Annual Occupancy rate 64.8% 54.4% 73.1% Average Annual Occupancy rate in Low season 53.6% 45.8% 61.8% Average Annual Occupancy rate in High season 75.9% 63.3% 75.6% Average Annual Room Rate $37.43 $66.26 $69.06 Average Room Rate in Low season $34.94 $59.93 $60.45 Average Room Rate in High season $39.83 $74.70 $72.98

19 TABLE 1.5 Vietnamese Hotel Industry by Star Category Sources of Reservation Sources of Advanced Reservation - Percentage of Room Sales COMPOSITION 3-star 4-star 5-star Number of Responses 4 9 5 Direct reservation 35.3% 24.7% 34.7% Reservation system (internet) 13.2% 4.3% 6.1% Travel Agents and Tour Operators 32.7% 60.1% 47.6% Other Channels 18.8% 10.9% 11.6% Total Room Sales 100.0% 100.0% 100.0%

20 Vietnamese Hotel Industry by Hotel Size Introduction This section focuses on presenting key operating data for the survey participants according to their size. Small size hotel is defined as the hotel with less than 75 rooms. Hotel with the number of rooms between 75 and 150 rooms is Medium size and More than 150 rooms is Large size. (See tables 2.1 to 2.5) The detailed results are summarized in the tables below: TABLE 2.1: Facilities Analysis and Staffing; presents hotel core services facilities as well as basic employee data TABLE 2.2: Financial Report; offers an in depth look at departmental revenue & expenses as a percentage of total sales TABLE 2.3: Market Data; tenders a thorough examination of all guest arrivals TABLE 2.4: Occupancy and Room Rate; represents an annual average of room occupancy (annual, low & high season) in addition to annual average room rates TABLE 2.5: Sources of Reservation; demonstrates how guests have made their reservations with their hotel Highlights Readers should note that the hotel size does not indicate the star ranking of that hotel. In our samples, many resorts with less than 75 rooms are ranked at 4 or 5 stars and hence, have luxury facilities and large number of employees. The number of rooms in resorts actually is the number of villas and bungalows. This explains why Small size hotels have higher number of restaurants and bars than those of Mid-size hotels (table 2.1). The average number of employees per hotel and average number of employees per available room in Small size hotels are also higher than those of Mid-size. The reason is the more facilities and services offered (bars, restaurants, and pools) the more employees that are needed to run these services. Guest Analysis by hotel size proved to be conclusive. Business travelers tend to stay more at larger scale hotels; the lone tourist would rather stay in a smaller sized hotel whilst tour groups prefer mid-size or large hotels. As the hotel size increases, so does the foreign visitor composition such that it increases from 73.5% (small hotel) to 88.4% (large size hotel). Room rates from the low to the high season increased: 13.8% (large), 26.8 % (medium) and 3.2% (small) while average occupancy rates increased by around 30% from low season to high season. Large hotels seem to perform more efficiently than Small hotels do. The average number of employees per available room is only 1.6 for large hotels, while for small hotels it is 2.5 employees per unit. This explains why large hotels with the highest number of staff and highest salary expense (300.15 US dollar/employee/month on average) still get highest net income as a percentage of total revenue. A large size hotel has average net income (before tax, interest and depreciation) of 49% compared to only 21.1% and 13.9% for small and medium hotels respectively.

21 TABLE 2.1 Vietnamese Hotel Industry by Hotel Size Facilities Analysis and Staffing Average Number of Core Services Facilities Per Hotel COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 6 8 6 Restaurant 2 1 2 Bars 2 1 2 Business Center 1 1 1 Others* 2 4 7 Total 7 7 12 *Included Services: Pool, Spa, Conference rooms, Banquets, Golf, Casino Average Number of Total Employees Per Hotel and Employees Per Unit COMPOSITION Less than75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 6 10 8 Average Number of Employees/ Hotel 138 116 344 Average Number of Employees/ Available Unit 2.5 1.1 1.6 Average salary & related expenses/ Employee/Month $259.76 $216.39 $300.15 Average Staff Growth 4.3% 3.5% 3.7% TABLE 2.2 Vietnamese Hotel Industry by Hotel Size Financial Report Percentage of Revenue COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 6 10 8 Average Total Rooms per Hotel 55 111 219 Average Occupancy per Hotel 53.1% 60.2% 74.5% Average Rate per Hotel $57.72 $58.32 $64.93 REVENUE Rooms 55.5% 68.7% 55.6% Food & Beverage 29.8% 23.0% 32.0% Other Income 14.7% 8.3% 12.4% Total 100.0% 100.0% 100.0% DEPARTMENTAL EXPENSES Rooms 22.8% 35.3% 24.3% Food & Beverage 55.5% 84.7% 27.3% Other Expenses 69.1% 94.0% 20.3% Total 39.3% 51.5% 24.8% DEPARTMENTAL INCOME 60.7% 48.5% 75.2% OPERATING EXPENSES G&A Expenses 19.1% 16.5% 11.7% Sales & Marketing Expenses 7.6% 4.4% 2.9% Repair & Maintenance Expenses 2.7% 3.9% 2.8% Energy Expenses 7.0% 7.3% 7.6% Total 36.5% 32.1% 25.1% HOUSE PROFIT 24.1% 16.4% 50.2% FIXED CHARGES Property Insurance 0.6% 2.4% 0.2% Land Rental 2.4% 0.2% 1.0% Total 3.0% 2.5% 1.2% NET INCOME* 21.1% 13.9% 49.0% * Net Income is before depreciation, interest payments and taxes

22 TABLE 2.3 Vietnamese Hotel Industry by Hotel Size Market Data Market Segmentation COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 5 9 6 Government Officials 0.2% 4.7% 1.0% Business Travelers 15.9% 15.7% 39.0% Individual Tourists 48.4% 25.5% 16.2% Tour Group 19.1% 38.1% 31.8% Conference Participants 3.5% 4.6% 7.9% Other Guests 12.9% 11.4% 4.2% Total 100.0% 100.0% 100.0% Guest Analysis COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 5 9 8 Domestic Guests 26.5% 20.0% 11.6% International Guests 73.5% 80.0% 88.4% Total 100.0% 100.0% 100.0% Country of Origin of Guests COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 5 9 9 Asia 30.1% 31.7% 54.7% Europe 39.8% 36.1% 27.5% North America 8.0% 12.5% 10.1% Oceania 11.0% 10.2% 6.1% Others 11.0% 9.5% 1.7% Total 100.0% 100.0% 100.0% TABLE 2.4 Vietnamese Hotel Industry by Hotel Size Average Occupancy Rate and Room Rate Average Occupancy & Room Rate COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 6 10 8 Average Total Rooms per Hotel 55 111 219 Average Annual Occupancy rate 53.1% 60.2% 74.5% Average Annual Occupancy rate in Low season 46.1% 49.3% 62.6% Average Annual Occupancy rate in High season 61.2% 67.4% 81.2% Average Annual Room Rate $57.72 $58.32 $64.93 Average Room Rate in Low season $50.91 $51.83 $64.06 Average Room Rate in High season $52.52 $65.74 $72.90

23 TABLE 2.5 Vietnamese Hotel Industry by Hotel Size Sources of Reservation Sources of Advanced Reservation - Percentage of Room Sales COMPOSITION Less than 75 rooms 75 to 150 rooms More than 150 rooms Number of Responses 5 7 6 Direct reservation 27.2% 20.5% 42.7% Reservation system (internet) 10.0% 4.6% 6.6% Travel Agents and Tour Operators 60.1% 59.1% 32.6% Other Channels 2.6% 15.8% 18.0% Total Room Sales 100.0% 100.0% 100.0%

24 Vietnamese Hotel Industry by Region Introduction This section presents the operating profiles and financial data for different categories of hotels in three main regions in Vietnam: the North, the Central region and the South (see tables 3.1 to 3.5). The detailed results are summarized in the tables below: TABLE 3.1: Facilities Analysis and Staffing; presents hotel core services facilities as well as basic employee data TABLE 3.2: Financial Report; offers an in depth look at departmental revenue & expenses as a percentage of total sales TABLE 3.3: Market Data; tenders a thorough examination of all guest arrivals TABLE 3.4: Occupancy and Room Rate; represents an annual average of room occupancy (annual, low & high season) in addition to annual average room rates TABLE 3.5: Sources of Reservation; demonstrates how guests have made their reservations with their hotel Highlights The average number of employees for the North is 230 per hotel, higher than the other two main regions. However, the Central region holds the highest number of employees per unit of 1.9. A total of 85.2% of hotel guest staying in the Southern region are either conducting business or staying for tourism purpose. Whilst, the Central region seems to be the most attractive destination with the highest number of hotel guests coming for tourism purposes of 69.6%. The average number of rooms per hotel per region is 170 for the North, 103 for the Central region, and 144 for the South. Hotel room rates in the North is the most expensive with annual average room rate of 73.68 US dollar compared to 49.67 US dollar and 60.58 US dollar in the Central region and the South respectively.

25 TABLE 3.1 Vietnamese Hotel Industry by Region Facilities Analysis and Staffing Average Number of Core Services Facilities Per Hotel COMPOSITION North Central South Number of Responses 4 7 8 Restaurant 2 2 2 Bars 1 2 1 Business Center 1 1 1 Others* 5 3 6 Total 9 8 10 *Included Services: Pool, Spa, Conference rooms, Banquets, Golf, Casino Average Number of Total Employees Per Hotel and Employees Per Available Room COMPOSITION North Central South Number of Responses 5 8 10 Average Number of Employees/ Hotel 230 200 207 Average Number of Employees/ Available Room 1.3 1.9 1.4 Average salary & related expenses/ Employee/Month $322.83 $201.01 $261.24 Average Staff Growth -1.0% 11.4% 1.3% TABLE 3.2 Vietnamese Hotel Industry by Region Financial Report Percentage of Revenue COMPOSITION North Central South Number of Responses 5 9 10 Average Total Rooms per Hotel 170 103 144 Average Occupancy per Hotel 74.4% 57.8% 59.0% Average Rate per Hotel $73.68 $49.67 $60.58 REVENUE Rooms 66.1% 58.6% 60.8% Food & Beverage 22.6% 28.7% 29.3% Other Income 11.3% 12.7% 9.9% Total 100.0% 100.0% 100.0% DEPARTMENTAL EXPENSES Rooms 12.8% 30.7% 34.4% Food & Beverage 87.4% 61.3% 73.4% Other Expenses 21.8% 52.0% 84.5% Total 30.7% 42.2% 50.8% DEPARTMENTAL INCOME 69.3% 57.8% 49.2% OPERATING EXPENSES G&A Expenses 14.9% 19.6% 11.1% Sales & Marketing Expenses 3.4% 5.7% 4.6% Repair & Maintenance Expenses 5.1% 1.9% 3.4% Energy Expenses 9.3% 6.2% 7.4% Total 32.7% 33.5% 26.5% HOUSE PROFIT 36.6% 24.3% 22.7% FIXED CHARGES Property Insurance 0.2% 0.3% 2.5% Land Rental 0.0% 1.7% 0.9% Total 0.2% 2.0% 3.4% NET INCOME* 36.5% 22.3% 19.3% * Net Income is before depreciation, interest payments and taxes

26 TABLE 3.3 Vietnamese Hotel Industry by Region Market Data Market Segmentation COMPOSITION North Central South Number of Responses 5 6 9 Government Officials 5.6% 0.4% 2.0% Business Travelers 30.0% 13.9% 24.6% Individual Tourists 19.9% 34.1% 29.4% Tour Group 27.1% 35.5% 31.2% Conference Participants 6.4% 4.7% 5.1% Other Guests 11.0% 11.3% 7.7% Total 100.0% 100.0% 100.0% Guest Analysis COMPOSITION North Central South Number of Responses 5 9 8 Domestic Guests 5.3% 27.2% 16.8% International Guests 94.7% 72.8% 83.2% Total 100.0% 100.0% 100.0% Country of Origin of Guests COMPOSITION North Central South Number of Responses 5 6 9 Asia 40.2% 36.8% 38.1% Europe 29.5% 39.7% 33.6% North America 8.9% 7.2% 13.9% Oceania 8.6% 8.9% 9.6% Others 12.8% 7.4% 4.7% Total 100.0% 100.0% 100.0% TABLE 3.4 Vietnamese Hotel Industry by Region Average Occupancy Rate and Room Rate Average Annual Occupancy & Room Rate COMPOSITION North Central South Number of Responses 5 9 10 Average Total Rooms per Hotel 170 103 144 Average Annual Occupancy rate 74.4% 57.8% 59.0% Average Annual Occupancy rate in Low season 66.6% 49.4% 47.6% Average Annual Occupancy rate in High season 80.8% 66.2% 67.8% Average Annual Room Rate $73.68 $49.67 $60.58 Average Room Rate in Low season $66.61 $45.39 $54.49 Average Room Rate in High season $81.16 $57.59 $64.99

27 TABLE 3.5 Vietnamese Hotel Industry by Region Sources of Reservation Sources of Advanced Reservation - Percentage of Room Sales COMPOSITION North Central South Number of Responses 4 6 8 Direct reservation 49.7% 20.3% 26.9% Reservation system (internet) 6.1% 9.7% 4.9% Travel Agents and Tour Operators 39.5% 62.6% 47.1% Other Channels 4.8% 7.4% 21.0% Total Room Sales 100.0% 100.0% 100.0%

28 Appendix 1 Table 1: Departmental Revenues & Expenses in 2005-2006 - Percentage of Total Revenues By Star Category Table 2: Average Occupancy & Room Rate in 2005 2006 By Star Category Table 3: Average Number of Total Employees Per Hotel and Employees Per Unit in 2005 2006 By Star Category Table 4: Market Data in 2005 2006 By Star Category

29 Table 1: Departmental Revenues & Expenses in 2005-2006 - Percentage of Total Revenues By Star Category COMPOSITION 3-STAR 4-STAR 5-STAR 2005 2006 2005 2006 2005 2006 DEPARTMENT REVENUES N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean Rooms (%) 5 55.1 75.0 65.2 5 56.0 80.0 66.8 15 49.7 97.0 67.8 12 52.6 78.1 63.0 8 45.0 62.2 53.9 7 45.0 64.7 53.7 Food & Beverage (%) 5 20.0 37.8 26.2 5 8.6 32.2 21.2 15 0.0 41.8 24.6 12 9.7 41.2 27.7 8 0.0 38.1 29.9 7 26.9 39.0 32.3 Other Income (%) 5 3.4 19.8 8.6 5 5.0 35.4 12.0 15 3.0 13.1 7.6 12 5.2 12.8 9.3 8 6.7 40.0 16.2 7 7.2 25.0 14.0 DEPARTMENT EXPENSES/ DEPARTMENT REVENUES Rooms (%) 5 5.2 160.0 56.9 5 3.1 170.0 58.0 15 7.0 52.1 19.1 12 8.7 50.4 23.1 8 7.0 31.0 15.5 7 11.5 24.6 16.7 Food & Beverage (%) 5 45.2 140.0 80.9 5 37.2 160.0 77.7 15 30.5 75.1 59.8 12 53.7 217.8 80.3 8 11.0 92.5 56.2 7 9.6 71.1 53.0 Other Expenses (%) 5 0.5 86.2 35.7 5 0.0 50.0 14.6 15 0.4 427.2 77.2 12 0.5 423.9 85.6 8 0.0 198.8 60.6 7 0.0 188.8 58.2 UNDISTRIBUTED OPERATING EXPENSES G&A Expenses (%) 5 8.6 50.0 23.4 5 5.0 45.0 20.9 15 4.1 41.0 17.2 12 4.2 38.2 17.3 8 5.0 26.1 10.7 7 5.1 18.8 9.5 Sales & Marketing Expenses (%) 5 0.7 7.2 3.0 5 1.4 10.0 5.7 15 0.7 7.3 3.3 12 0.5 9.2 4.4 8 1.7 14.8 5.7 7 1.4 8.1 4.8 Repair & Maintenance Expenses (%) 5 0.1 1.6 0.6 5 0.2 0.4 0.3 15 1.1 16.2 5.3 12 0.0 14.2 4.4 8 0.0 10.9 4.1 7 0.0 8.3 2.9 Energy Expenses (%) 5 5.5 15.0 10.1 5 5.4 10.0 7.1 15 6.0 12.3 7.7 12 5.4 10.8 7.1 8 3.1 18.8 9.8 7 2.9 10.6 8.0 FIXED CHARGES Property Insurance (%) 5 0.0 20.0 5.1 5 0.1 20.0 5.3 15 0.0 2.0 0.6 12 0.0 0.6 0.2 8 0.0 1.0 0.5 7 0.0 0.7 0.3 Land Rental (%) 5 0.0 11.6 5.9 5 0.0 7.5 3.3 15 0.0 4.0 1.4 12 0.0 2.3 0.7 8 0.0 3.1 0.5 7 0.0 2.7 0.5 Loan Interest (%) 5 0.0 5.4 3.1 5 0.0 6.1 3.4 15 0.0 55.2 12.8 12 0.0 49.2 10.8 8 0.0 115.4 21.5 7 0.0 98.6 19.4 Depreciation & Amortization (%) 5 3.8 9.2 5.6 5 4.2 12.3 7.1 15 0.0 27.1 13.8 12 0.0 33.1 12.5 8 0.0 59.6 15.4 7-9.6 68.7 14.1 N: Number of Participants Min: Minimum value of respective criteria in the survey data Max: Minimum value of respective criteria in the survey data Mean: Mean of respective criteria in the survey data

30 Table 2: Average Occupancy & Room Rate in 2005 2006 By Star Category COMPOSITION 3-STAR 4-STAR 5-STAR 2005 2006 2005 2006 2005 2006 N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean Avg. Annual Occupancy rate (%) 5 25.0 85.0 62.9 5 30.0 86.0 64.8 13 23.4 92.0 74.2 12 27.9 83.3 73.1 8 41.2 95.0 74.2 7 40.9 89.0 73.1 Avg. Annual Occupancy rate in Low season (%) 5 15.0 75.0 49.4 5 20.0 75.0 53.6 13 22.0 92.0 59.1 12 25.6 76.0 61.8 8 20.1 89.0 59.1 7 25.8 89.0 61.8 Avg. Annual Occupancy rate in High season (%) 5 40.0 95.0 75.0 5 50.0 96.0 75.9 13 31.0 92.0 72.1 12 30.0 89.5 75.6 8 20.1 97.0 72.1 7 44.5 96.0 75.6 Avg. Annual Room Rate ($) 5 26.0 44.6 33.9 5 26.0 51.3 37.4 13 39.0 86.6 69.4 12 46.0 91.2 82.4 8 41.2 75.1 60.3 7 40.9 89.0 69.1 Avg. Room Rate in Low season ($) 5 25.0 41.1 30.5 5 27.0 49.8 34.9 13 35.2 86.6 62.4 12 35.3 92.0 71.7 8 25.8 75.0 55.7 7 25.8 89.0 60.4 Avg. Room Rate in High season ($) 5 27.0 46.9 36.0 5 30.0 53.3 39.8 13 40.8 92.8 74.1 12 47.0 96.2 88.8 8 48.2 78.0 63.0 7 48.2 89.2 73.0 N: Number of Participants Min: Minimum value of respective criteria in the survey data Max: Minimum value of respective criteria in the survey data Mean: Mean of respective criteria in the survey data Table 3: Average Number of Total Employees Per Hotel and Employees Per Unit in 2005 2006 By Star Category COMPOSITION 3-STAR 4-STAR 5-STAR 2005 2006 2005 2006 2005 2006 N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean Number of Employees/ Hotel 5 58 216 120 5 63 267 134 13 45 302 135 10 80 382 167 8 122 492 319 7 158 505 355 Average Number of Employees/ Available Unit 5 1.1 2.0 1.5 5 1.2 2.0 1.5 13 0.5 2.8 1.3 10 0.7 3.3 1.6 8 0.7 3.6 1.7 7 1.2 3.7 1.9 Average salary & related expenses/ Employee/Month ($) 5 98.6 798.0 306.5 5 109.6 188.5 159.4 13 93.9 521.6 273.3 10 92.1 446.3 237.5 8 95.8 441.8 287.7 7 192.7 450.7 331.1 Average Staff Growth (%) 5-2.9 1.1-0.4 5 0.0 23.6 8.7 13-23.0 8.5 0.1 10-8.0 20.8 3.3 8 1.0 11.4 4.9 7-4.0 3.8 1.1 N: Number of Participants Min: Minimum value of respective criteria in the survey data Max: Minimum value of respective criteria in the survey data Mean: Mean of respective criteria in the survey data

31 Table 4: Market Data in 2005 2006 By Star Category COMPOSITION 3-STAR 4-STAR 5-STAR 2005 2006 2005 2006 2005 2006 N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean N Min Max Mean Market Segmentation Government Officials (%) 4 0.0 7.0 2.0 4 0.0 7.0 2.1 13 0.0 21.0 0.6 10 0.0 22.0 0.7 7 0.0 1.9 0.6 6 0.0 2.1 0.7 Business Travelers (%) 4 5.0 60.0 31.8 4 10.0 60.0 33.3 13 0.0 85.0 26.3 10 0.0 57.0 29.1 7 3.0 55.7 26.3 6 2.0 56.8 29.1 Individual Tourists (%) 4 10.0 35.0 22.1 4 10.0 32.0 18.9 13 0.0 54.7 33.3 10 1.8 60.0 37.8 7 1.0 93.0 33.3 6 13.1 95.0 37.8 Tour Group (%) 4 15.0 50.0 29.2 4 15.0 60.0 31.3 13 0.0 72.0 20.2 10 3.8 78.0 20.7 7 2.0 50.0 20.2 6 2.0 45.0 20.7 Conference Participants (%) 4 0.9 10.0 5.2 4 1.6 10.0 5.4 13 0.0 11.0 5.5 10 0.0 17.0 6.2 7 0.0 20.3 5.5 6 0.0 16.9 6.2 Other Guests (%) 4 6.0 12.9 9.7 4 5.0 15.4 9.1 13 0.0 73.0 14.2 10 0.0 32.8 5.4 7 0.0 73.0 14.2 6 0.0 16.7 5.4 Guests Analysis Domestic Guests (%) 4 11.5 90.0 37.4 4 11.3 85.0 32.4 15 2.2 80.0 8.3 11 3.2 64.3 7.8 8 2.2 22.1 8.3 7 2.1 22.1 7.8 International Guests (%) 4 10.0 88.5 62.6 4 15.0 88.7 67.6 15 20.0 97.8 91.7 11 35.7 96.8 92.2 8 77.9 97.8 91.7 7 77.9 97.9 92.2 Country of Origin of Guests Asia (%) 4 30.0 50.9 42.7 4 34.0 54.2 44.5 14 3.9 86.0 50.4 10 6.7 56.2 50.5 7 17.0 82.4 50.4 6 19.0 81.2 50.5 Europe (%) 4 5.0 40.0 23.5 4 10.0 40.0 25.1 14 4.0 67.0 28.9 10 22.4 68.9 30.0 7 7.9 58.0 28.9 6 10.4 62.0 30.0 North America (%) 4 5.0 15.0 9.4 4 5.0 10.9 7.0 14 3.0 25.0 10.3 10 5.1 30.1 9.5 7 4.7 20.2 10.3 6 4.0 19.2 9.5 Oceania (%) 4 8.1 21.0 12.3 4 4.5 22.0 12.9 14 2.2 19.2 6.6 10 2.0 13.5 6.6 7 2.3 14.0 6.6 6 1.9 12.7 6.6 Others (%) 4 4.6 30.0 12.1 4 5.0 20.0 10.5 14 0.0 34.2 3.8 10 0.0 29.7 3.5 7 1.0 12.0 3.8 6 1.0 12.5 3.5 Sources of Advanced Reservation - Percentage of Room Sales Direct reservation (%) 5 23.2 65.0 37.2 4 21.6 45.0 35.3 13 0.0 97.0 46.0 9 0.0 62.7 34.7 6 0.0 90.0 46.0 5 0.0 81.4 34.7 Reservation system (%) 5 1.2 15.0 8.8 4 1.1 30.0 13.2 13 0.0 15.7 5.2 9 0.0 14.5 6.1 6 1.0 10.0 5.2 5 3.0 15.0 6.1 Travel Agents & Tour Operators (%) 5 15.6 62.4 35.0 4 17.0 59.0 32.7 13 0.0 98.0 38.9 9 1.3 98.0 47.6 6 0.0 96.6 38.9 5 12.1 96.5 47.6 Other Channels (%) 5 0.0 60.0 19.0 4 0.0 60.4 18.8 13 0.0 56.8 9.9 9 0.0 43.1 11.6 6 0.0 55.0 9.9 5 0.0 52.0 11.6 N: Number of Participants Min: Minimum value of respective criteria in the survey data Max: Minimum value of respective criteria in the survey data Mean: Mean of respective criteria in the survey data