APARTHOTELS ADAGIO® FEBRUARY 2016

Adagio Brussels Center

CONTENT 01 ADAGIO BACKGROUND & HISTORY 02 ADAGIO POSITIONING & BRANDS 03 ADAGIO PRODUCT DESCRIPTION 04 ADAGIO BUSINESS MODEL

05 ADAGIO EXPERTISE

Entrance Adagio Vienna City APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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01 ADAGIO BACKGROUND & HISTORY

Lobby Adagio Caen Centre APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

LEVERAGE THE EXPERTISE OF TWO HOSPITALITY WORLD LEADERS

GROUP PIERRE & VACANCES – CENTERPARCS European market leader in local tourism

2007

ACCOR HOTELS The world’s leading hotel operator and market leader in Europe

50%

50%

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ACCORHOTELS

1ST HOTEL OPERATOR WORLDWIDE

INTERNATIONAL BRANDS

N°1

CORE BRANDS

EXTENDED STAY

Operator worldwide

(units owned, leased or operated under management contract)

N°1

LIFESTYLE / BOUTIQUE

LOCAL BRANDS

LUXURY

hotel employer

worldwide

180,000 Over

on

3,900

92

employees

UPSCALE

hotels

countries MIDSCALE

510,000

rooms

+25 million

ECONOMY

members of “Le Club loyalty program” LOWCOST

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

NETWORK

2015

97

EDINBURGH

UNITED KINGDOM

aparthotels

BREMEN

LIVERPOOL

10 532 apartments

BELGIUM BERLIN

BIRMINGHAM

GERMANY

LONDON 1 1

countries

LE HAVRE 15 CAEN

1

FRANKFURT 20

NANCY

PARIS - IDF RENNES 1

NANTES

1

POITIERS

1 1

ST-ÉTIENNE

2

STGENIS

Number of Adagio & Adagio access in the city

VIENNA

MUNICH

AUSTRIA

BASEL

SWITZERLAND GENEVA ANNECY GRENOBLE

BORDEAUX

AVIGNON AIX-EN-PROVENCE 2 2 NÎMES 1 TOULOUSE MONACO 2 2 2 2 MONTPELLIER NICE MARSEILLE PERPIGNAN

Opening soon

1 1

ST-LOUIS

DIJON

FRANCE

1

STRASBOURG

ORLÉANS TOURS

COLOGNE

BRUSSELS

LILLE

11

1

ITALY

ROME

ADAGIO ACCESS Economy product ADAGIO Midscale product ADAGIO PREMIUM Upscale product

QATAR

BRAZIL SALVADOR DI BAHIA GOIÂNIA

1

1

MOSCOW

JUNDIAÍ ALPHAVILLE

SAUDI ARABIA

4

RIO DE JANEIRO

DOHA

RUSSIA RIYADH

SÃO PAULO CURITIBA

1 1

MADINAH

DUBA I

FUJAIRAH

ABU DHABI

JEDDAH

PORTO ALEGRE

UAE

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

2014 & 2015

13 OPENINGS

2014

2

in Europe

Munich

Paris Reuilly Fujairah Abu Dhabi Rio Ipanema

6 in France Courbevoie

Doha

4

Munich

in Middle East

DubaI

2015 Courbevoie Puteaux Massy Nancy Dijon

1 in Brazil Rio Ipanema

Birmingham Dubai Al Barsha

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

2016

OPENINGS

1

in Germany

Frankfurt

Colombes

Salvador di Bahia Jundiai Alphaville Sao Paulo Olga Jeddah

1 in Russia

1 in France

Moscow

Colombes

1

Frankfurt

in Saudi Arabia

Jeddah

Moscow

4 in Brazil

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ADAGIO ACCESS MÜNCHEN CITY OLYMPIAPARK GERMANY

Studio

Fitness

Entrance Adagio Access

München City Olympiapark Kitchen

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ADAGIO KÖLN CITY GERMANY

Studio

Lobby

Breakfast room Adagio Köln City Fitness

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ADAGIO BIRMINGHAM UK

1 Bedroom Apartment

Lobby

Lobby Adagio Birmingham Studio

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ADAGIO LIVERPOOL UK

1 Bedroom Apartment

Breakfast room

Studio

Lobby Adagio Liverpool APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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02 ADAGIO POSITIONNING & BRANDS

Apartment Adagio Vienna City APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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COMPETITION l INTERNATIONAL HOTEL BRANDS

APARTHOTELS ADAGIO®

INTERNATIONAL BRANDS

LUXURY

UPSCALE

MIDSCALE

ECONOMY

LOWCOST

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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COMPETITION l LOCAL HOTEL BRANDS

APARTHOTELS ADAGIO®

INTERNATIONAL BRANDS

LOCAL BRANDS

LUXURY USA AUSTRALIA CHINA USA

UPSCALE

MIDSCALE USA

CHINA

USA

USA

EU

DE

ECONOMY

LOWCOST

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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EU

UK

MODERN l URBAN l WELCOMING

PRIME LOCATIONS

UPPER-MIDSCALE APARTHOTELS

SECONDARY LOCATIONS

o Ready to live in apartments o At the heart of key cities o Modular, elegant and

SUBURBSAIRPORTS

contemporary apartments with fully equipped kitchen

o From studio to 2-bedroom apartments

SERVICES o Free WIFI

o 24/7 reception o Breakfast o Business corner o Fitness center o Weekly cleaning (according to length of stay)

o Laundry facilities

Studio Adagio La Défense Courbevoie

o Dry cleaning on demand APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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FUNCTIONAL l FRIENDLY l CASUAL

PRIME LOCATIONS

ECONOMY APARTHOTELS

SECONDARY LOCATIONS

o On cities’ doorstep o Modular, modern and cosy apartments

SUBURBSAIRPORTS

o Studio for 2 to 4 persons

SERVICES o Free WIFI o 24/7 or 12/7 reception

o Breakfast o Weekly cleaning (according to length of stay)

o Laundry facilities o Dry cleaning on demand

Apartment Adagio Access Paris Massy Gare APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

UPPER UPSCALE APARTHOTELS o In exceptional location

o Elegant, contemporary and

PRIME LOCATIONS

SECONDARY LOCATIONS

spacious apartments with fully equipped kitchen.

o Living rooms furnished with LCD TV and DVD player.

SUBURBSAIRPORTS

o From studio to 3-bedroom apartments

SERVICES o Free WIFI o 24/7 Reception o Breakfast o Room Service o Concierge o Fitness center o Business corner Room Adagio Premium

o Daily cleaning (+according to

Dubai Al Barsha

length of stay)

o Dry cleaning on demand

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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03 ADAGIO PRODUCT DESCRIPTION

Apartment Adagio Sao Paulo Moema APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO® THE STUDIO APARTMENT 7,50 X 3,5 ~ 25SQM “Living Time”

o Wall folding bed o Storage space

o Fully equipped kitchen o Flat screen television 32’’

“Sleeping Time”

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO® THE 1 BEDROOM APARTMENT

6,10 X 5,85 ~ 35SQM o 1 Bedroom with double bed o 1 living room with sofa bed o Modular table

“Sleeping Time”

o Storage space o Separated fully equipped kitchen o Flat screen television 32’’

“Living Time”

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO® FULLY EQUIPPED KITCHEN IN EVERY APARTMENT o Ceramic cooking burners o Storage spaces

o Dishes & cutlery o Coffee machine o Microwave with grill o Dishwasher o Fridge + freezer

o Extracting Fan

Kitchen Adagio Liverpool City Centre APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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04 ADAGIO BUSINESS MODEL

Lobby Adagio Sao Paulo Moema APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

THE APARTHOTEL POSITIONING IN THE ACCOMMODATION LANDSCAPE

HOTEL

Full Services Reception, Restaurant, Spa Facilities...

1 – 3 NIGHTS

APARTHOTEL

Selected services Reception, Breakfast, cleaning…

4 – 90 NIGHTS 90 NIGHTS +

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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THE APARTHOTEL INDUSTRY

WHAT DISTINQUISHES EXTENDED STAY

MAIN DIFFERENCES VS CLASSICAL HOTELS

Home-like accommodation (fully equipped kitchen) Tiered pricing from 4th nights Reduced housekeeping and limited F&B services

Longer average length of stay KEY ECONOMICS OF THE MODEL

ADR decreases but operating costs even more (housekeeping and staff)

GOP target of 60% thanks to low operational costs on longer stays

SALES & RM APPROACH

Emphasis on planning optimization instead of only ADR (higher OR) Local sales focus, targeting the extended stay bookers in addition to the “classical hotel” bookers within the companies Corporate guests for medium & long stays Leisure guests for short stays

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

LONGER-STAYS ENABLES THE MAXIMIZATION OF OCCUPANCY, ESPECIALLY IN LOW-DEMAND PERIODS

TYPICAL HOTEL CAPACITY

APARTHOTEL CAPACITY

1-3 night stays 4-27 night stays 28+ night stays

J F M A M J J A S O N D

J F M A M J J A S O N D

Well-optimized aparthotels can reach

90%*

Hotel schedules tend to be polarized

average occupancy Gross margin

Longer-stay business is more stable throughout the year

100%

> 60%* 75%

TARGET A LENGHT-OFSTAY MIX WITH HIGH % OF LONER-STAY

50%

25%

0%

* Not contractual

TYPICAL HOTEL

ADAGIO APARTHOTEL

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

ADAGIO USES A TIERED PRICING SCHEME WHICH LIMITS DISCOUNT LEVELS

PRICE POSITIONING

FOR THE SAME NIGHT AND THE SAME SALES CHANNELS, THERE ARE 5 DIFFERENT RATES BASED ON THE SAME LENGHT OF STAYS

1-3

Typical hotel price, depending on competition intensity. Follows the price of a midscale hotel of Accor with similar location.

4-9

Typical aparthotel price Weekly cleaning

NIGHTS

NIGHTS Source: average on 6 typical properties, g4 price position, most significant room type -> except on event dates, where discount w/r to 4-9 will be closer to 5%

10-27

Low aparthotel price Typically 15% less than 4-9 nights1

28-90

Related to rental price in destination Typically 10% higher than 91+

NIGHTS

NIGHTS

91+

NIGHTS

TYPICAL PRICE INDEX

Related to rental price in destination Typically 1.5 to 2x rental price in location

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

100

88

79

65

60

27

-12%

-21%

-35%

-40%

APARTHOTELS ADAGIO®

DECREASING VARIABLE COSTS WITH EXTENDED STAYS 100

INDEX 100= TOTAL REVENUE PER ROOM NIGHT FOR 1 TO 3 NIGHTS STAYS

16

27 80

56

Margin Commissions

100

60

M A R G I N 56%

Housekeeping/Laundry/ Front Desk

M A R G I N

36

68%

M A R G I N

M A R G I N 63%

70%

57

Energy, Payroll, Fix Costs, Bank Charges

46 40

45

8

22 20

14

C O S T S

4

6

9

7

5

14

14

14

27N+

AVERAGE

1-4 N

Illustration based on a simple Adagio properties

4-27 N

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

THE APARTHOTEL BUSINESS MODEL VS THE HOTEL ONE (P&L COMPARISON)

4* APARTHOTEL

4* HOTEL

OCC. RATE

88%

80%

AVERAGE DAILY ROOM

135 £

145 £

119 £

116 £

93%

72%

£ 7.8 MILLION

£ 9.5 MILLION

63%

49%

£ 4.9 MILLION

£ 4.6 MILLION

53%

40%

£4.2 MILLION

£ 3.8 MILLION

£488

£442

REVPAR ROOM REVENUE TOTAL REVENUE

GOP

NOI PROFIT/SQM

Source: WATG Report – July 2015

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO®

THE APARTHOTEL BUSINESS MODEL VS THE HOTEL ONE

4* APARTHOTEL

4* HOTEL

Site Acquisition Cost

£ 17.5 MILLION

£ 17.5 MILLION

Total Construction Cost

£ 27.2 MILLION

£ 28.2 MILLION

5%

5%

£ 93.1 MILLION

£ 82.3 MILLION

19.3%

16.2%

£ 18.7 MILLION

£ 11.9 MILLION

1:2.3

1:2.1

Exit Yield Terminal Value IRR (at 50/50 Debt to Equity) NPV at 10%

Money in/out

Source: WATG Report – July 2015

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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APARTHOTELS ADAGIO® A HIGHLY PROFITABLE MODEL

OPERATIONAL PROFITABILITY

 Very High Occupancy  Optimized ARR  Low operating costs

 GOP > 60% RETURN ON INVESTMENT

 Efficient space usage (FOF vs BOH)

 Limited BOH areas  Optimized construction costs (4* hotel -10%)

 HIGH ROCE

Lobby Adagio Premium Dubai Al Barsha APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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05 ADAGIO & ACCORHOTELS EXPERTISE

Apartment Adagio Paris Opéra APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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ADAGIO DISTRIBUTION SOLUTIONS POWERED BY ACCORHOTELS A POWERFUL DISTRIBUTION BOOSTER

GDS 7% OLTAS 20%

TARS CONTRIBUTION

34%

59%

HOTEL PMS 37%

INDIRECT SALES WEB ACCOR 17%

GDS 5%

59 %

of adagio room revenue cames through AccorHotels reservation systems (% of hotels revenue

CALL & MAILS 18%

generated by tars)

25 %

direct

34 %

indirect

OLTAS 29% HOTEL PMS 41%

41%

reservations done on the web

WEB ACCOR 12% Split of hotels revenue per distribution channels as of December 2015 YTD (L/L)

CALL & MAILS 13%

25%

Lobby Adagio Berlin

DIRECT SALES APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

Kurfurstendamm 33

LE CLUB ACCORHOTELS ACCORHOTELS WORLDWILDE LOYALTY PROGRAM

25 million (+40% vs. 2014)

of members as of december 2015 (launch in sept. 2008) A Worldwide program: 14 brands 2,700 hotels

22% of revenue generated by card holders

Free enrollment 100% Web based program More than 10,000 new members every day The Club AccorHotels represents 25% of AccorHotels revenue Partnerships with large Airlines loyalty program: Skyteam, One World, Star Alliance…

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nights average length of stay

960 € average revenue spent

16,1% of revenue generated by card holders

7,1

nights average length of stay

446 € average revenue spent

Dedicated Le Club AccorHotels priority desks at hotels 75% of LCAH members use exclusively direct channels

x2 Members Spend

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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Non members spend

APARTHOTELS ADAGIO® 2015 BRAND QUALITY PERFORMANCES

Adagio : 3,7/5

80%

of Adagio guests are either satisfied or very satisfied

Guest satisfaction survey 2015

84%

of our guests would recommend Adagio®

Guest satisfaction survey 2015

Lobby Adagio Paris Bercy APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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WEB DIRECT A STRONGER ONLINE PRESENCE

ADAGIO-CITY.COM THE ONLINE REFERENCE FOR EXTENDED STAY

ACCORHOTELS.COM AVAILABLE IN 33 VERSIONS & 18 LANGUAGES Dedicated corner for Aparthotels Adagio to target extended stay customers

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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STRONG SALES CHANNELS TARGETING EXTENDED STAY EFFICIENT SALES & DISTRIBUTION An interfaced CRS system with the PMS

Online booking through adagio-city.com & AccorHotels.com Best in class booking engine for long stays (+ 27 nights) A global sales force with 34 offices around the world Experience with corporate accounts from various industries (high-tech, bank, embassies) 9 multilingual call centers Automated interfaces with all major online travel agencies

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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DISTRIBUTION ON MAJOR OLTAs & INTERFACED WHOLESALERS EFFICIENT SALES & DISTRIBUTION

Adagio is included in all major AccorHotels global deals with major OTAs Interfaced with TARS

Direct contract with a specialist of aparthotels: Citizenbooking Rate tiger connectivity (in progress)

Adagio is included in the Hanatour & Destination of The World deals

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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BRAND AWARENESS THROUGH SOCIAL NETWORKS

Dedicated Brand Page on FACEBOOK “Aparthotels Adagio”

Dedicated Company Account in TWITTER

Dedicated Company Profile

in LINKEDIN

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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BRAND COMMUNICATION TV SPONSORING 2013/2014/2015

No1 in global notoriety (30%) and on high social class (40%) (FRANCE)

LOCAL ADVERTISING CAMPAIGNS 2014/2015

APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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Contact : [email protected] APARTHOTELS ADAGIO® l Your ideal partner for medium & long stays l

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