MGALLERY BY SOFITEL BRAND PRESENTATION JUNE 2015 AGENDA 1. Brand Positioning 2. Brand Network & Pipeline 3. Brand Product & Service Features 4. Brand Communication 5. Brand Performance 2 1. BRAND POSITIONING POSITIONING STATEMENT WHERE ART-DE-RECEVOIR ENHANCES AUTHENTIC LOCAL DISCOVERY AND SHAPES MEMORABLE MOMENTS 4 BRAND ESSENCE LUXURY BOUTIQUE HOTELS, INSPIRING & SINGULAR 5 A COLLECTION OF MEMORABLE HOTELS, BY SOFITEL 6 THE THREE “ATMOSPHERES” OF THE COLLECTION HERITAGE SERENITY SIGNATURE The hotel is first and foremost a place filled with history and where walls recount the past… The hotel is a treasure hidden either in a natural or urban retreat (sea, country, mountain, city…). The hotel reflects an aesthetic universe, a style, a design, the signature of a personality who contributed to its creation, or decoration… The building is a major asset of the hotel and the facade reflects a typical historic style. It should offer all the facilities for rejuvenation (fitness, wellness, spa, thalasso, luxurious garden in the surroundings…) An old building with a new modern/contemporary decoration should be a Signature hotel. 7 SOME HOTELS WITHIN THE ATMOSPHERES HERITAGE Le Grand Hotel Cabourg, France Hostal Nicolas de Ovando, Dominican Rep. Phoenix Hotel Yogyakarta, Indonesia SERENITY Veranda Resort & Spa Hua Hin, Thailand Capovaticano Resort Thalasso & Spa Ricardi, Italy Grand Hotel Roi Rene, France SIGNATURE Hotel de l’Opera Hanoi, Vietnam Harbour Rocks Hotel Sydney, Australia Hotel B-Lay Tong Phuket, Thailand 8 GENEROSITY JOIE DE VIVRE OPENMINDEDNESS ELEGANCE EXCELLENCE SHARING 5 COMMON VALUES 9 9 EACH HOTEL STAGES WITH TALENT A UNIQUE PERSONALITY AND STORY TO TELL “This charming “Belle Époque” hotel was built in 1855… Marcel Proust's favorite room is still there...” “ Between travel, art and design… a rich, authentic experience of the golden age of travel...” “A gem of art and design, style and elegance in ancient glass-making furnace of Murano.” 10 10 EMOTIONAL BENEFITS INSPIRED & ENRICHED 11 11 2. BRAND NETWORK & PIPELINE CURRENT NETWORK MGallery network Today: 71 hotels with more than 7,000 rooms in 20 countries in prime locations & attractive tourist destinations 12 21 2 2 1 1 2 1 6 3 1 3 9 Nb of hotels 1 13 13 A GROWING NETWORK Hotels Operating Mode (2015) *87 30 35 47 59 Managed 71 45% 37% Subsidiary 8 18% Franchised 2008 2009 2010 2011 2012 2014 2015 *Pipeline Pipeline Hotel average size: 16 MGallery hotels in the pipeline for 2015 80/120 rooms Range from 30 to 200 rooms 14 NETWORK MAPPING Number of hotels AMERICAS 3 Number of rooms AMERICAS 291 ASPAC 24 EMEA 44 ASPAC 2573 EMEA 4218 15 TOP 5 FLAGSHIP HOTELS FLAGSHIP HOTELS Hotel Muse Bangkok (Thailand) – 174 rooms 17 FLAGSHIP HOTELS Le Grand Hôtel Cabourg (France) – 70 rooms 18 FLAGSHIP HOTELS Cures Marine Trouville – 103 rooms 19 FLAGSHIP HOTELS Francis Hotel Bath (UK) – 98 rooms 20 FLAGSHIP HOTELS Harbour Rocks Sydney (Australia) – 59 rooms 21 LATEST OPENINGS LATEST OPENINGS Molitor Paris By MGallery (France) – 124 Rooms 23 LATEST OPENINGS Cures Marine Trouville – 103 rooms 24 LATEST OPENINGS Le Regina Biarritz Hotel & Spa (France) – 65 Rooms 25 LATEST OPENINGS Lake Garden Nay Pyi Taw (Myanmar) – 165 Rooms 26 LATEST OPENINGS Hotel Royal Hoi An (Vietnam) – 119 Rooms 27 LATEST OPENINGS The New Incholm Hotel & Suites Brisbane – 50 rooms 28 3. PRODUCT & SERVICE FEATURES 30 +1 “IDENTIFIERS” TO JOIN THE MGALLERY COLLECTION 30 + 1 identifiers to ensure a top-of-the-range service, brand recognition, strengthening of the hotel story, talented hotelier training… HIGH END COLLECTION STAGED HOTEL STORY 10 Product & Services “IDENTIFIERS” 10 brand “IDENTIFIERS” 10 hotel “IDENTIFIERS” Bellboy & valet parking service* Entrance plate Name Concierge service* Small & oversize brand directory Story VIP welcome Welcome On Desk Display** Logo / visual identity High-end hotel uniforms Operational stationary International press & TV channels / accessories Related to the hotel story: Architecture & interior decoration High-end coffee & tea facilities Olfactory identity Books & magazines in the «Living room» High-end individual toiletries Musical ambiance Hotel Story communication Laundry service Living room Turndown service Digital corner 24/24 – 7/7 room service In-room Grand Breakfast *The hotel does not require a dedicated person but the service must be delivered. **Available from 2014 on Memorable Moment TALENTED HOTELIERS 1 Human Resssources IDENTIFIER “Play and lead” staff training program piece for the Guest Suite (and eventually bedroom) personalization Drink at the bar Product at the breakfast Dish at the restaurant / the bar / the room service 30 EXAMPLES OF PRODUCT AND SERVICES ‘’IDENTIFIERS’’ Room Service 24/24 7/7 Turndown service High end coffee and tea facilities 31 31 EXAMPLES OF BRAND ‘’IDENTIFIERS’’ Entrance Plate Olfactory Identity The Grand Breakfast 32 32 EXAMPLES OF HOTEL ‘’IDENTIFIERS’’ Books & magazines in the ’’Living room’’ related to the hotel story Suites “Storytelling” related to the hotel story Eg: Proust’s books in Cabourg Eg: Portraits of Proust and his characters in Cabourg Product at breakfast related to the hotel story Eg: Proust’s Madeleine cakes in Cabourg 33 33 ANOTHER BRAND IDENTIFIER:THE MEMORABLE MOMENT OFFER An activity organized by the hotel, included in a special package with a stay, or up-sold to guests who have already booked A creative, original, exclusive & unique experience, different for each hotel An approach based on emotion and discovery Differentiates from competition Examples: In Prague, Czech Republic, at the Hotel Century Old Town: explore the city of 100 spires thanks to an unforgettable ride in a classic car In La Veranda Resort & Spa in Phu Quoc, Vietnam: enjoy a journey into the unknown on a traditional boat and a romantic dinner on a desert island 34 4. BRAND COMMUNICATION MOOK INTRODUCING THE MGALLERY HOTEL GUIDE 36 36 MOOK : DISTRIBUTION STATISTICS DISTRIBUTION STATISTICS OF THE MGALLERY GUIDE BOOK ASPAC Australia Jakarta Thailand, Cambodia, Laos & Vietnam Shanghai Singapore Accor ASPAC TOTAL EMEA France Germany Italy Hungary Netherlands United Kingdom Switzerland Czech Republic Austria Morocco Nigeria Yemen TOTAL Quantities (Only in English) 6,300 2,000 1,500 100 100 100 10,100 Quantities English French Italian 13,900 25,000 300 2,000 0 0 3,250 1,950 3 ,550 1,000 200 0 1,000 0 0 1,500 500 0 3,400 1,000 0 1,750 0 0 1,000 0 0 500 1,050 0 1,500 0 0 500 0 0 31,300 39,150 3,850 37 37 MOOK : ITUNES AVAILABLE FOR FREE DOWNLOAD ON ITUNES 38 38 MOOK : IPAD IPAD APPLICATION (VISUALS) 39 39 SOCIAL PLATFORMS : FACEBOOK BRAND PAGE 40 40 6. BRAND PERFORMANCE PERFORMANCE - WORLDWIDE Exceptional Central Distribution System contribution (CDS) 11 call centers 11 brand websites Call Center 2% Hotel Intra 14% Web Accor 16% Web Indirect 20% 59% Hotel PMS 42% More than 150 Websites GDS 6% More than 21 000 travel agencies Central System Contribution With direct hotel booking in TARS: 58.8 % Without hotel direct booking in TARS: 44.8 % 59% OF MGALLERY ROOM REVENUE CAME THROUGH ACCOR RESERVATION SYSTEMS AS OF DECEMBER 2014 YTD (% of hotels revenue generated by TARS) * Source : Channel Management Report – YTD December 2014 42 DISTRIBUTION & VISIBILITY Distribution through Online Travel Agencies (OLTAs) Global deals with Major players Discounted commission rates 43 MGALLERY OFFERS A set of brand offers for business and leisure guests Memorable Moment Package Leisure offer 3 nights for the Price of 2 • • • Business & Leisure offer Room Breakfast Exclusive activity unique to each hotel and exclusive to its guests • • MGallery Business package MGallery City Experience Business offer Leisure offer • • • Leisure offer • • • • • • • Room Breakfast City Pass Gourmet Experience Room Breakfast Lunch or diner at hotel’s restaurant 1 complimentary night for a 3 nights stay Breakfast Room Breakfast Internet access 150 Le Club Accorhotels points (in France) MGallery Gourmet Morning Seasonal offer • • • • Room Breakfast Internet access 150 Le Club Accorhotels points (in France) 44 LE CLUB ACCORHOTELS: ACCOR WORLDWIDE LOYALTY PROGRAM 20 MILLION (+34% vs. 2013) OF MEMBERS AS OF MAY 2015 South America North 12% America 6% Africa 2% Asia 18% • A Worldwide program: 14 brands, 2,700 hotels, 13 languages • Free enrolment • 100% Web based program • More than 10,000 new members every day • Le Club Accorhotels clients represent 25% of Accor revenue • Partnerships with large Airlines loyalty program: Skyteam, One World, Star Alliance… • Dedicated Le Club Accorhotels priority desks at hotels • 75% of LCAH members exclusively use direct channel • LCAH members yearly stay length & revenue are 2 times higher than non members Pacific 8% Middle East 3% Rest of Europe 20% France 12% UK & Germany Ireland 7% 12% Card member’s country of residence 25.1% OF REVENUE GENERATED BY CARD HOLDERS WITHIN MGALLERY 22% INCREMENTAL REVENUE GENERATED BY LE CLUB ACCORHOTELS FOR MGALLERY PROPERTIES Figures: As of December 2014 € 384 AVERAGE REVENUE SPENT IN A MGALLERY FOR MEMBERS 45 GEOGRAPHICAL DISTRIBUTION OF MGALLERY CUSTOMERS (CRM) Total customer base of 277,362 having spent at least 1 night at MGallery hotels worldwide AFRICA 2% MIDDLE EAST 4% AMERICAS 22% ASPAC 37% EUROPE 35% 46 MGALLERY BUSINESS MIX Leisure (Individual & Group) 63% Business (Individual & Group) 37% 47 ASPIRATIONAL TARGET GROUP – ENGAGED EXPLORERS LOOKING FOR UNIQUE, ORIGINAL, IMMERSIVE EXPERIENCES. • Looking for escapes, authentic discoveries and surprising local rituals • Worldly, well‐read, curious and open‐minded. • Show‐in, interested in the world they ‐ and others ‐ live in. • Adventurous, like to take the unbeaten path. 48 GSS YTD DEC 2014 94% of MGallery customers are either satisfied or very satisfied by their stay experience EUROPE GSS : 96% 39 AMERICAS: GSS : 95% 3 5 ASPAC GSS : 94% 15 EMEA GSS : Africa – 92% Middle East - NA 9 Nb of hotels 49 Source : OSA YTD Dec 2011 APPENDIX COMPETITION Upscale “Niche” & “Collection” brands Boutique, lifestyle, addresses collection 51 COMPETITION Upscale / Luxury Market Independent hotels - members or not of a voluntary chain - and major hotel group collections. ... and more and more upscale and boutique hotels distributors. 52