investor-relations

Specialist for market observation Turnaround expertise Re-positioning Developing new projects Efficient operation HR & controlling Individual sales & marketing solutions Utilisation of new technologies

INVESTOR RELATIONS

CONTACT DETAILS: Vienna International Hotelmanagement AG, Dresdner Str. 87, 1200 Vienna, Austria, www.vi-hotels.com Rupert Simoner Chief Executive Officer Tel.: +43 1 333 73 73 16 E-mail: rupert.simoner@vi-hotels.com

Christina Riegler Head of Project Development Tel.: +43 1 333 73 73 21 E-mail: christina.riegler@vi-hotels.com

Benan Jellinek PA to CEO Tel.: +43 1 333 73 73 16 E-mail: benan.jellinek@vi-hotels.com

SHAPE THE FUTURE

VIENNA INTERNATIONAL HOTELMANAGEMENT AG MORE THAN 25 YEARS OF INTERNATIONAL HOTEL MANAGEMENT EXPERIENCE

MISSION

Vienna International Hotelmanagement AG (VI), founded in 1989, operates more than 38 hotels & resorts on the basis of management and lease/rent contracts. Moreover, the group owns hotels and is actively acquiring real estate. The portfolio comprises city hotels, resort as well as spa and conference hotels.

The hotels are located in Central and Eastern Europe: Austria, Germany, Czech Republic, Poland, Croatia, France, Romania, Slovakia and Russia. In addition to international holiday and leisure products, e.g. in Disneyland® Paris, Carlsbad, Opatija and the Austrian Spa Region Styria, the focus is on business centres such as Berlin, Prague, Munich, Cracow, Salzburg, Lodz, Bucharest and Ekaterinburg. Austria’s largest hotel group is continuing its growth and tapping new markets.

As a competent hotel management chain, VI has special know-how in market observation, development and is known as a restructuring specialist with turnaround expertise.

The mission of Vienna International Hotelmanagement AG is to achieve the best economic results and ROI (return on investment). This aim is based on a tailor-made management solutions covering all features of an international hotel management chain providing services of divisions such as operations, controlling, sales & marketing, revenue management, IT, PR and human resources on an international high-quality service level.

Bad Oeynhausen Castrop-Rauxel Wuppertal Limburg Paris

F

D

Coburg

Neckarsulm Günzburg

PL

Berlin

TAKEOVER & TURNAROUND

Ekaterinburg ↖

Minsk

Karlovy Vary Prague

Besides managing takeovers of standard hotel products, Vienna International Hotelmanagement AG is a specialist in hotels with “special needs” (e.g. hotels for a niche market, difficult guest mix), distressed assets, turnarounds and projects. Due to the proven success of our management concept, VI has taken over several hotels from international hotel chains. These hotels are promptly incorporated into the VI hotel chain and cost-effectively for the investors. Our dynamic team supports investors and provides full turnaround consulting including realisation, depending on the individual project and need of the investor:

CZ

A

▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼ ▼▼

Cracow Katowice

SK

Bratislava Loipersdorf

Salzburg

RO

HR

Opatija

Bucharest

Mali Lošinj

Creation of turnaround concepts and possible repositioning of a hotel Advice and support for financial restructuring Support with bank appointments and feasibility studies Planning and support during renovation work Creation of contingency plans for the investment Development of exit scenarios Coordination of disposal process Structured acquisition of the hotel operation (also available at short notice and during operations) Integration in the VI hotel group (website, booking platform, Global Sales Department, etc.)

Implementation of all VI quality standards and SOPs Dispatchment of VI experts in the concerned establishment Review of the cost structure and renegotiation of all long-term debt agreements Preparation of budgets and marketing plans

LONG-TERM COOPERATION CONTRACTS Vienna International Hotelmanagement AG

2005 2006 2007 2008 2009 2010 2011 2012 2013

Room nights

669,610 738,966 863,992

969,601 1,099,394 1,310,766 1,369,868 1,244,608 1,402,812

Revenue in mln. € 87.0 96.9 117.5 135.0 133.9 164.0 174.8 163.2 177,4

Vienna International Hotelmanagement’s core competence is concentrated on continuous long-term management as we are convinced that long-term commitment is the key for best economic outcome. The basis are mainly long-term management contracts as well as hybrid or lease contracts. VI is responsible for controlling, operations, IT, human resources, sales & marketing and revenue management. The investor’s advantage is to get all services from a single source on a reasonable and profit-related cost structure.

Revenue in mln. € 200 174.80

180

163.20

177.38

135.00

140

133.90

117.50

120 100

RECENT ACQUISITIONS – REAL ESTATE GROWTH STRATEGY

164.00

160

87.00

96.90

80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013

Feasibility, market studies and concepts Planning and construction consulting Hotel operational functionality Hotel operational procedures & logistics

▼▼ ▼▼ ▼▼ ▼▼

Sales & marketing pre-opening activities Pre-opening coordination Recruiting & management Operating supplies & equipment budget and handling

2. Management Activities Over 15 properties newly built and opened in the last few years are evidence of the high expertise of Vienna International Hotelmanagement AG in hotel development.

Beyond that, the group also offers know-how in developing hotel brands, as success stories such as the hotel brand andel´s hotel and angelo prove.

Łódź

Amberg Pilsen Munich Vienna Landsberg Dornbirn

BE

Międzyzdroje

1. Pre-Opening ▼▼ ▼▼ ▼▼ ▼▼

DEVELOPMENT

The hotels managed by Vienna International Hotelmanagement AG generated approximately € 177.4 million revenue from 1.4 million room nights in 2013.

RU

SERVICES OF VIENNA INTERNATIONAL HOTELMANAGEMENT AG

Using the historical low interest rate environment, Vienna International Hotelmanagement AG started in 2013 to implement the value strategy acquiring own real estate, especially in Germany. Since the year 2013 10 Arcadia Hotels were acquired by the own asset company of Vienna International. Approximately 1100 rooms out of the portfolio are owned with a rapidly increasing tendency. VI is convinced to accumulate and grow wealth continuing the strategy over the next years using its key hotel management know-how.

Operation & Quality Management ▼▼ Definition and monitoring of quality standards ▼▼ Remuneration and purchasing policy ▼▼ Optimization of operational processes and implementation of guidelines ▼▼ Interface/communication analysis ▼▼ Process analysis from the customer’s point of view ▼▼ Front Office (PMS) and F&B (POS) computer system training ▼▼ Support of all departments in daily operations ▼▼ Development & implementation of manuals and procedures respecting the local laws ▼▼ Online Reputation Management

Human Resources ▼▼ Recruitment of employees ▼▼ VI Academy: training & development for each department ▼▼ Talent management ▼▼ HR marketing: cooperation with well-known and established European schools and universities (eg. EHL Lausanne, MODUL University, VATEL Business School,…) ▼▼ Employment consulting including legal requirements, changes and legal regulations

SALES, MARKETING & PUBLIC RELATIONS

REVENUE & DISTRIBUTION MANAGEMENT

▼▼ Annual sales & marketing plan incl. budgets for revenue, sales & marketing (basis for achievement of results) ▼▼ Local and international sales teams: Global Sales Team Vienna, Prague, Warsaw, London, Moscow and Benelux ▼▼ Key Account Management with RFP handling ▼▼ Web presentation incl. booking engine & Online Marketing strategies ▼▼ Corporate Design in terms of cost-efficiency and brand visibility ▼▼ Support in daily work and realisation of marketing activities and campaigns ▼▼ Distribution of press releases, guest newsletters, printing of high-quality guest magazine, press conferences and press trips ▼▼ Social Media activities ▼▼ Own travel agency office in Vienna - VI Travel Management

▼▼ Use of most progressive distribution system ▼▼ Local and central revenue management teams monitoring revenue development (incl. actions and recommendations) on daily basis ▼▼ Connectivity to all international distribution systems with our own GDS Code “VI” and Central Reservation System through Sabre Synxis® ▼▼ Revenue Management System: EzRMS™ ▼▼ Integrated environment: Central Reservation System - Revenue Management System - Property Management Systems for automated processes

CONTROLLING

INFORMATION TECHNOLOGIES

▼▼ Daily reporting & pick-up forecasts, monthly reporting on profit & loss basis, quarterly reporting ▼▼ Ratio (key data) analysis ▼▼ Budgeting process ▼▼ Liquidity reporting ▼▼ Debtor monitoring

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IT infrastructure planning and implementation Supplier relations & contracting Infrastructure monitoring & 3rd level support for technical teams Technical & security audits Application development and consulting Hardware and software asset management Operating central data centre in cooperation with Infor™