Guest Services, Inc. and Subsidiaries. Sustainability Report

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Guest Services, Inc. and Subsidiaries 2010 Sustainability Report

Canaan Valley Resort Golf Course

3 2010 Sustainability Report Guest Services sustainability program, ourplanet, is designed to have employees think about their actions as directly affecting their whole environment, both at work, and outside of work. While most at-work initiatives address how employees actions affect their customers, or their company, the ourplanet program goes beyond that to increase employee awareness that their actions at work, whether in conserving energy, reducing food waste and other resource use, or recycling, can affect every aspect of their lives, and their families lives. The ourplanet program focuses on the three Rs of environmental sustainability: Reducing consumption when possible Reusing items if possible Recycling or composting items that cannot be reused or saved through reducing use. As you will read, in 2010, Guest Services initiated, and continued and expanded, major initiatives, won several awards for its environmental efforts, and laid foundations for further improvements in the future. We invite you to read about the ourplanet program successes in 2010, at our over 110 locations, on the following pages.

4 2010 Initiatives Reduce our impact on the environment Award for Conserving Energy The A.C.E. Program Guest Services has a goal of reducing energy consumption by two percent every year. Guest Services operates units where we have separately metered utilities, as well as units that are inside a client s facility and do not have separately metered utilities. The Award for Conserving Energy (A.C.E.) program is restricted to the approximately 50 units where utilities are separately metered. A.C.E. Award for Conserving Energy The Award is given quarterly to those Guest Services units which have reduced energy consumption at least two percent below the same quarter of the prior year. The unit which has the greatest reduction of consumption for an entire year receives the annual Award, which includes a cash bonus for every employee in the unit. The award program began tracking energy consumption statistics in 2008. The annual A.C.E. award winner for 2009 was Rock Creek Horse Center, which reduced electrical consumption a stunning 21% below the prior year. The 2010 A.C.E. award winner will be announced in early 2011. Rock Creek Horse Center Reduced electrical consumption by 21% in 2009

5 Purchasing Purchasing environmentally-friendly products reduces the demands on the environment. The Purchasing Department has been instrumental in focusing Guest Services spending on environmentally-friendly products. For each category of purchasing (for example: cleaning supplies; equipment; or food products), there is a managed order guide (MOG) which functions as a catalog for the units. The MOGs are continually updated to maximize the number of environmentally-friendly items available in that category. The MOGs also highlight which items in the catalog are environmentally-friendly. By Company policy, units are encouraged to purchase those items that are identified in the MOGs as environmentallyfriendly. Sixty-three percent of Guest Services units currently participate in this environmentally-friendly purchasing program. One example of these purchasing programs is the MOG for cleaning supplies, which among other things promotes the use of Ecolab s Apex system and cleaning products in all units. The Apex products use noncaustic chemicals, and over 90% less packaging material than conventional dishwashing products. The Apex system seeks to maximize dishwashing efficiency, thereby reducing consumption of water, electricity, and dishwashing chemicals. Guest Services use of the Apex system and products produced the following reductions in 2010 (versus use of conventional dishwashing products): 1,711 pounds less plastic waste in cleaning product packaging (94% reduction); 1,176 pounds less phosphorus waste in cleaning chemicals (94% reduction); 188,200 fewer gallons of water consumed; 95,041 kwh of electricity conserved; 5,983 fewer therms of natural gas consumed.

6 Culinary Innovation Center Under the direction of our Corporate Executive Chief, Guest Services is reducing the environmental impact of the Company s food service operations. In 2010, we: Implemented our Go Local produce program. In this program, chefs have access to local produce and the farmers that produce the crops. Local acquisition supports not only a low carbon footprint, but the community, crop diversity, and quality of the product. Many of our menus and recipes utilize local products. When a chef is looking for a product, local products will be identified by the local symbol. Introduced our local pork program where all bacon, ham and other pork products are produced near our center of operations in Virginia. Implemented our Sustainable Seafood program. By partnering with the Wild Alaska Seafood Council, we are able to offer our guests quality seafood that is flavorful and sustainable. Implemented our Dolphin Safe canned-tuna program where we utilize only Albacore and Tongol tuna that are harvested in a dolphin-safe manner. Mandated that the coffee roasters we purchase from must be active members of the Rainforest Alliance, which assures that coffee is grown and harvested in an ecosystem-friendly manner. Trained Cooks to turn on ranges, ovens, and other equipment only on an as needed basis to reduce energy usage. Bottled Water The Doubletree Guest Suites Hotel in Naples, Florida, which is owned and operated by Guest Services, began a water filtering program to generate both still and sparkling water. The water is served in glass bottles, which are recycled, and replace the disposable plastic bottles that were being provided for meetings at the hotel. The program began operation in October 2010, and has eliminated almost 400 plastic bottles from the waste stream since then.

7 Reuse to avoid generating waste Lodging the Clean the World Program Much of the illness in poorer areas of the world results from lack of basic sanitation articles, like soap for handwashing. Clean the World is a national organization which accepts donations of used guest-room amenities (primarily soap and shampoo), and sends the products to people around the world who are unable to afford these basic personal-hygienic articles. Guest Services lodging facilities joined this program in June 2010. Our operations have donated over 415 pounds of soap and shampoo through the end of 2010. In 2011, we seek to add Guest Services-managed condominiums to the program. Mount Rainier Guest Services lodging operations at Mount Rainier donate used amenity products to the Tacoma Rescue Mission, a local homeless shelter. In 2010, over 96 pounds of amenities were donated in this program. Also, the Mount Rainier operation donated 120 mattresses/box springs sets to the Northwest Furniture Bank, which provides low-income families with free furnishings.

8 Recycling to preserve resources Composting Mount Rainier Guest Services food service operations at Mount Rainier began separating food waste in 2010. The food waste is collected by Silver Springs, which runs a composting facility. The food waste becomes soil enhancing material sold to area farms. Over 19 tons of food waste was sent for composting by Guest Services from Mount Rainier in 2010, creating approximately 9.5 tons of nutrient-rich soil. Grounds for Grounds At the General Services Administration Regional Office Building in Washington, DC, Guest Services collects used coffee grounds and donates them to the Government s Regional Horticulturalist for use in soil enrichment in the landscaping around Government buildings in the Washington, DC area. In 2010, over 4.5 tons of coffee grounds were collected for this purpose. Single-Stream Recycling This program, begun in 2009, with the assistance of our waste removal vendor, allows the Company to recycle almost all non-food waste without first segregating paper, cans, bottles, etc. The separation of waste is done at the trash collection facility. Guest Services rapidly grew its single-stream recycling program in 2010. Company-wide, across the various divisions and units, over 7,739 cubic yards of waste was sent for recycling in 2010. Guest Services will be further expanding the program in the future.

Conventional Recycling 9 Guest Services operations at Mount Rainier National Park has a long-standing program of recycling glass, plastic, and aluminum. In 2010, over 18.5 tons of glass, over 3.5 tons of plastic and over 1.5 tons of aluminum were collected and sent for recycling. In addition, over 19.5 tons of cardboard were collected and sent for recycling at Mount Rainier during 2010. Cooking Oil Guest Services recycled approximately 36.3 tons of cooking oil in 2010. The recycled cooking oil is processed and converted to either biodiesel and animal feed, depending on market demand at the time of processing. Horse Manure Recycling Guest Services operates the Rock Creek Horse Center, which houses about 60 horses throughout the year. The manure generated by these horses is used to enrich the soil at athletic fields. In 2010, Guest Services sent over 3,430 cubic yards of manure and wood shavings for soil enhancement. Also in 2010, Guest Services completed a structure to cover the manure, and thereby prevent run-off and groundwater contamination from the manure. Roof water run-off is collected and used to water the horses. Electronic Equipment Guest Services operates over 125 units, all with computers, cash registers, and many with other electronic equipment, all of which is gradually replaced. Our environmental policy 302 requires that all such waste be recycled at the end of its useful life. We utilize an organization called Turtle Wings for this project. Over 450 pieces of various electronic equipment were recycled in 2010.

10 Linens and Blankets All Guest Services lodging units are donating worn-out or stained linens and blankets to local homeless shelters, or to local humane societies for animal bedding. Approximately 170 pieces were donated to these charitable organizations in 2010. Other Efforts Clean-a-Park Beginning in 2009, Guest Services employees volunteered on Earth Day to clean trash from Hains Point Park in Washington, DC. The program quickly spread to other Guest Services divisions. Guest Services employees, family and friends pitch in to clean up our National Parks. In 2010, Guest Services employees worked to clean parks at Hains Point, District of Columbia; Mount Rainier, Washington; and in Collier County, Florida. In Collier County, the volunteers were served a trash free breakfast including tamales in a corn husk, and beverages in reusable mason jars. All waste was organic, and was composted. The combined efforts of these three collections removed a total of ninety-seven 48-gallon bags of trash from public parks.

11 Organic Produce Guest Services Lancaster Foods subsidiary is one of the largest distributors of organic produce to supermarkets in the mid-atlantic region. Over $16.5 million of organic produce was sold and distributed in 2010. Clean Marinas The four marinas Guest Services operates are certified as Clean Marinas for following the best environmental practices in vessel maintenance and storage of chemicals. Training An employee orientation to Guest Services environmental management system was prepared in 2010. This video will be shown to all current and newly-hired employees. Workplace Giving In 2010, Guest Services revamped its voluntary program for employees to donate to charity. Earth Share, an umbrella organization which supports varied environmental initiatives, is one of the designated recipients of this charitable effort.

12 2010 Awards Canaan Valley Resort Canaan Valley Resort and Conference Center was awarded a $59,000 grant from the State of West Virginia in a competitive bidding process. The grant money is to be used to begin a total facility recycling and food waste composting program. Preliminary steps have been taken to implement the program. The full program should be in place by July 2011. Green Restaurant Association This past year saw the expansion of the number of Green Certified restaurants managed by Guest Services. The following restaurants are now certified by the Green Restaurant Association for sound environmental practices: (Top) Canaan Valley Resort (Bottom) Treviso Restuarant at the Ringling Museum of Art Treviso Restaurant at the Ringling Museum of Art National Park Inn Restaurant at Mt. Rainier National Park Cafe Portofino at the Doubletree Guest Suites Naples National Park Services National Capital Regional Office These restaurants have, among other things, entirely eliminated the use of stryofoam, and reduced waste through instituting the use of reusable plates and cutlery.

Mount Rainier Environmental Audit 13 Guest Services operations at Mount Rainier were audited by the National Park Service for compliance with sound environmental practices. We received an exceptional practices comment for Pesticide Management for an innovative program to kill bed bugs without the use of chemicals. The operations at Mount Rainier continue to lead the way for the entire company with varied environmental initiatives such as food composting, material recycling, and trash diversion. These operations expect to be ISO 14001 certified in mid-2011. Doubletree Hotel The Doubletree Guest Suites Naples won the Doubletree Environmental Care Award for 2010. This award is bestowed on the Doubletree Hotel that best demonstrates outstanding commitment to implementing and demonstrating sustainability and environmental outreach efforts that impact guests as well as the local community. Summary Guest Services made a quantum leap forward in its sustainability efforts in 2010 with improved recordkeeping and new initiatives. Guest Services reduced consumption of materials and energy in numerous ways throughout the Company. In addition, Guest Services instituted programs to reuse and recycle materials where possible, benefitting the environment, and local charitable organizations and their beneficiaries. Finally, Guest Services was recognized for its sustainability efforts at several locations. We expect 2011 to witness similar progress.

14

Front Cover (Left to Right): Indigo Landing, Mount Rainier National Park, Doubletree Guest Suites Naples The 2010 Sustainability Report was printed on recycled paper. 3055 Prosperity Avenue Fairfax, VA 22031 703.849.9300 guestservices.com info@guestservices.com