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Hilton FY 2010

Hilton FY 2010. Mars 2011. Marriott vs. its main competitors. Pipeline. Network. Vs end 2009. In ‘000 rooms. Pipeline. In ‘000 rooms. EMEA. APAC. Americas. -3%. 205. 647. 13%. 19%. 68%. 208 Kr. (2) . 138. +6%. 613. 8%. 9%. 83%. 605. 105. +5%. 8%. 7%. 85%.

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Hilton FY 2010

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  1. HiltonFY 2010 Mars 2011

  2. Marriott vs. its main competitors Pipeline Network Vs end 2009 In ‘000 rooms Pipeline In ‘000 rooms EMEA APAC Americas -3% 205 647 13% 19% 68% 208 Kr (2) 138 +6% 613 8% 9% 83% 605 105 +5% 8% 7% 85% Rooms network as of FY 2010 Rooms pipelineas of FY2010 (1) 103 -5% ~600 10% 4% 86% 0% 101 507 56% 16% 28% 366Kr 85 0% 495 88% 7% 5% -24% 51 302 61% 20% 19% (1) Hilton geographical breakdown based on 2009 figures (2) Hilton pipeline based on an internal press release, January 2011 NB: Figures include traditional lodging and extended stay units but exclude timeshare products The 3rd largest global hotel group, the second if we include Timeshare segment (618 Kr) A strong increase of pipeline vs. 2009 Source : Companies annual reports except for Hilton network, Accor internal data

  3. 1. Company overview # rooms segment # hotels Description Ownership • 4th worldwide hotel player with one of the most recognized brand worldwide • 3,600 hotels and vacation ownership / 600,000 rooms in 82 countries • 130,000 employees • Funded in 1919, Hilton operates in 3 main segments • Traditional lodging industry • Extended stay segment • Timeshare segment • Mainly US hotel player (≈ 80%) • Biggest “asset heavy” US hotel player (≈ 20%) • US pipeline leader • 10 brands from Midscale to Luxury: • Operating type: Owned and Lease (5%), Mgnt (46%), Franchise (69%) • 100 % private equity: Blackstone Group LLP • Acquisition for M$26 in 2007, taking the group private and removing the requirement to report on its financial results. • Blackstone reportedly organizing the financial records of Hilton Worldwide in a preliminary step toward floating the company on the international markets. Blackstone is leaning toward selling Hilton Worldwide as a complete unit. Main Figures Hilton Honors • World hotels share (2010): 4.0% • In 2010 Hilton opened 178 hotels (more than 24,000 rooms) and signed agreements for more than 230 hotels (>44,000 rooms) • The world’s leading frequent-guest program • 27 million members • More than 2.5 million new members in 2010 • It is the only program of its type to offer its members • the ability to earn points and miles for the same hotel • enjoy hotel rewards with No Blackout dates or capacity controls • to redeem points for free nights at any of the more than 3,500 properties within the Hilton Worldwide portfolio of hotels. Source: Euromonitor, Hilton press releases (1) 2009 figures Hilton – Company Profile FY 2010

  4. 2. Brand positioning 19 h Luxury 24 h 24 h 561 h 208 h Upscale 49 h 307 h 247 h 512 h Midscale 2 h 1864 h Limited Service ExtendedStay Timeshare FullService ServicedApartments Lodging Extended Stay Timeshare Hilton – Company Profile FY 2010 Source: Accor data extracted from Hilton Website as of March 2011

  5. 3. Room portfolio Hilton – Company Profile FY 2010 Source: Accor data extracted from Hilton Website as of March 2011

  6. 4. Geographical breakdown Hotel and room network 3,793 h / 623 Kr As of March, 2011 89% • USA: 594 h • Canada: 37 h • UK: 73 h • Italy: 20 h • Germany: 17 h • France: 8 h North America 3,339 h Europe 215 h 6% Asia / Pacific 84 h • China: 23 h • Australia: 10 h • Thailand: 7h • India: 6 h 2% South America 71 h MEA 54 h • Egypt: 17 h • UAE: 11 h • Saudi Arabia: 6 h 2% 1 % • Mexico: 30 h (1) Upscale % ofglobal network in nb of hotels X% Midscale Source: Accor data as of March 2011 (1) incl. upper-upscale brands Waldorf and Conrad Hilton – Company Profile FY 2010

  7. Group Pipeline by Region* 5. Pipeline and lodging development Development in 2010 Hilton opened 178 hotels with more than 24,000 rooms and signed management agreements or franchise agreements on more than 230 hotels with more than 44,000 rooms, despite the economic downturn. 2010 saw Hilton Worldwide claiming to be the largest hospitality company in the US by number of rooms. The company’s luxury presence, which includes Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts, tripled over 2007-2010 in terms of current supply and pipeline combined. Europe: 22 h. openings in 2010 (50 for the last three years) , with 3,366 r. Pipeline By the end of 2010 Hilton Worldwide had a global pipeline that included 868 hotels and more than 138,000 rooms [23% of its existing portfolio]. Pipeline outside the US increased by nearly 40% in 2010 in terms of number of rooms, with the Asia Pacific and Middle East and Africa regions combined increasing 52%. Hilton increased the percentage of its total pipeline of rooms outside the US from 15% in 2007 to approximately 50% by the end of 2010, and the percentage of its rooms under construction outside the US grew from 11% in 2007 to 73% by the end of 2010. Hilton – Company Profile FY 2010 Sources: Hilton Press Release as of January 24th, 2011 *Lodging Econometrics Q4 2010

  8. 6. Group strategyGlobal Expansion plan 2011-2015 China and India Latin America • Hilton intends to nearly double its footprint in Latin America (37 units as at March 2010) over 2011-2015. • Brazil is at the centre of Hilton’s interests, as the country will host large international sporting events such as the Football World Cup and the Olympic Games. • Other main gateway cities in Latin America such as Buenos Aires (Argentina), Santiago (Chile), Lima (Peru), Caracas (Venezuela), and Bogota (Colombia) are also of interest given potential short to medium term growth. • Although all brands are present in Latin America, Hilton has decided to focus on four brands – Hilton, DoubleTree, Hilton Garden Inn and Hampton. The latter is set to debut a brand new prototype designed exclusively for the Latin American market, being cost-effective to build and suited to guests’ needs for greater flexibility. • Over 2011-2015, Hilton plans to open more than 180 hotels in the Asia Pacific region through a multi-brand strategy that includes its mid-price, upscale and luxury brands. • China: Hilton intends to grow from 11 to more than 90 hotels over the period. • In 2010, Hilton Worldwide signed eight management agreements with Shimao Group, a China-based real estate development conglomerate, for eight new hotels in eight key Chinese cities (properties are slated to start operations in 2011-2014). • India: to grow from 2 to over 60 hotels. • A joint venture with DLF Limited aims to develop hotel properties and serviced apartments in India, with plans to develop and own 50-75 mid-scale and extended stay hotels in the market by 2014. Middle-East / North Africa Europe • Largest pipeline across the region: 15,411 r. in active pipeline and 8,643 r. under construction • Strategic development markets: UK, Germany, Italy and Turkey • Multi-brand approach: in Germany alone, three new brands have been launched almost simultaneously: Hampton by Hilton, Waldorf Astoria H&R and Hilton Garden Inn • Presence to be doubled by 2014 • 21 new properties opening across the region by 2014, four of them being located in the UAE (1) Hilton – Company Profile FY 2010 Sources: Euromonitor, Press Review (1) Hilton Press release as of March 10, 2011

  9. 7. SWOT analysis Strengths Weaknesses • Hilton’s brand portfolio has recognised strengths in upscale, luxury and mid-scale, particularly in the US • The addition of the Home2 suites reinforces the mid-tier and permits a Hilton guest to climb through the chains from Hampton to the Astoria • Brand awareness • Worldwide scope • Mix operating type • Despite its portfolio strength, the majority of Hilton hotels are still located in the US. Such reliance on a single market made Hilton vulnerable to the recession that slashed its domestic market • Early in 2010, Starwood won its legal case against Hilton (Accusation of theft of 10,000 documents from two former Starwood’s employees). Hilton has been fined and its business restricted for two years (no brand can be launched on the lifestyle market, as an answer to W brand) Opportunities Threats • Opportunity to develop rapidly the Home2 Suites brand as a result of its compact size and low development costs • Hilton to benefit from its investments on applications for Iphone and Itouch • Lack of credit available in the US may hinder overall expansion of Hilton’s luxury brand portfolio in the years to come • Strong reliance on business travellers negatively impacted Hilton Worldwide’s 2008 and 2009 performance Hilton – Company Profile FY 2010 Source: Euromonitor

  10. 8. Brands description Hilton – Company profile FY 2010 Source: Hilton Website

  11. 8. Brands descriptionFull-service – Waldorf=Astoria Overview Network • Full service, Luxury • Landmark hotels offering “worldly sophistication and unparalleled guest service” • Flagship: Waldorf=Astoria in New York, acquired in 1949 by Conrad N. Hilton Highlights • Culinary excellence, innovative services, and individualized service • 12 world-class golf experiences • 20 sumptuous spas Main competitors • The Ritz Carlton, Four Seasons, Fermont Hotels • Network • 23 hotels, 9,631 rooms • Av. Size: 401 r. Locations • World’s capitals and gateways • Geographical Breakdown • Footprint mainly US (14/23) but international expansion on its way (opening of two new hotels in London and Berlin forecast in 2011) • Pipeline • 7 h. / 1,176 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website Graph based on nb of h. as of March 2011 Lodging Econometrics Q4 2010 (graph based on nb of r.)

  12. 8. Brands descriptionFull-service – Conrad Overview Network • Full service, Luxury • Global contemporary luxury and lifestyle brand • Striking design, distinct surroundings, as dynamic reflection of the destination city and culture Highlights • Breathtaking views • Spacious and luxurious guest rooms with superb quality amenities • Modern style, pioneering culinary concepts, sophisticated bars and restaurants and leading technology Main competitors • Autograph Collection, The Luxury Collection • Network • 18 hotels, 6,500 rooms • Av. Size: 342 r. Locations • World’s gateway cities, most sought-after resort destinations • Geographical Breakdown • Global Footprint (strong presence in Asia) • Pipeline • 13 h. / 3,503 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website Graph based on nb of h. as of March 2011 Lodging Econometrics Q4 2010 (graph based on nb of r.)

  13. 8. Brands descriptionFull-service – Embassy Suites Hotels Overview Network • Full service, Upper-upscale • Upper-upscale all suites hotels Highlights • Every room is a spacious two-room suite to relax • and spread out, which includes the Embassy • Essentials Bedding Collection • Fitness center • Complimentary Manager’s Reception is held • every evening, featuring beverages and light • appetizers. • Main competitors • Differentiated product: niche market • Network • 208h, 50,752 suites • Av. Size: 244 r. Locations • Gateway cities • Geographical Breakdown • Mainly US (only 9 h. outside) • Pipeline • 35 h. / 7,121 r. • US mainly (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010

  14. 8. Brands descriptionFull-service – Hilton Overview Network • Full service, Upper-upscale • One of the most recognized name in the industry • One of the leader of hospitality (hotels in 76 countries) • Flagship brand of Hilton worldwide Highlights • Hilton’s journey Ambassador program, which stresses personal care and attention for each and every guest • Diverse portfolio includes premium hotel offerings for convention, business and leisure travelers – • from the 1,400 SF room Hilton Orlando boasting • 175,000 SF of meeting space to the majestic • Hilton Bora Bora Nui Resort and Spa featuring • over water villas • In-room Hilton Serenity Collection features the • Hilton Serenity Bed, linens and custom-designed • hammered stainless steel accessories • Main competitors • Sofitel, Grand Hyatt, Intercontinental, Westin, Conrad • Network • 561 hotels, 201,960 rooms • Av. Size: 360 r. Locations • Most of the major cities worldwide • Geographical Breakdown • Global Footprint: 79 countries • Pipeline • 112 h. / 33,934 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010 (graph based on nb of r.)

  15. 8. Brands descriptionFull-service – Double Tree (1/2) Overview Network • Full service, Upscale • First hotel outside North America in 2008, fast growth worldwide since (presence in 15 countries) • Since international roll out in 2008, separate identities: DoubleTree in North America vs. DoubleTree by Hilton outside • In 2011, introduction of a new DoubleTree by Hilton global identity, thus proving the power of the affiliation: • Homogenization of brand identity under “DoubleTree by Hilton” worldwide, • while requiring rebranding of over 80% of existing network Highlights • Meeting and event facilities at Doubletree hotels • and resorts range from 2,500 to 150,000 square • feet • Fitness facilities • One of the fastest growing upscale brands (network grew by more than 40% since 2000) • Main competitors • Pullman, Sheraton, Marriott H&R, Grand Plaza, Hyatt Regency • Network • 247 hotels, 62,985 rooms • Av. Size: 255 r. Locations • Gateway cities, metropolitan areas, vacation destinations • Geographical Breakdown • Mainly US but global expansion on its way • Pipeline • 50 h. / 10,289 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010 (graph based on nb of r.)

  16. 8. Brands descriptionFull-service – Double Tree (2/2) • DoubleTree by Hilton is worldwide brand of upscale, full-service hotels and resorts : • First hotel outside North America in 2008, fast growth worldwide since (presence in 15 countries) • Since international roll out in 2008, separate identities: DoubleTree in North America vs. DoubleTree by Hilton outside • In 2011, introduction of a new DoubleTree by Hilton global identity, thus proving the power of the affiliation • Homogenization of brand identity under “DoubleTree by Hilton” worldwide, • while requiring rebranding of over 80% of existing network: 178 hotels in North America vs. 40 hotels outside NA. 1969 1999 2008 2011 • Global rebranding initiative : Addition of “by Hilton” to the brand name for every DoubleTree hotel • Objective to further reinforce the brand’s affiliation to Hilton Worldwide and to be able to communicate with a unified worldwide look • Merger between Hilton Hotels Corporation and Promus Hotels Corporation, DoubleTree’s parent company • First hotel out of North America, under Doubletree by Hilton brands. • Beginning of the distinction between DoubleTree in North America vs. DoubleTree by Hilton outside North America. • Creation of DoubleTree Hotels in the US

  17. 8. Brands descriptionLimited service – Hilton Garden Inn Overview Network • Limited service, Midscale • Upscale, focused service brand, provides a range of amenities for business guests, ensuring they have everything they need to be productive on the road • Global expansion in key markets in Europe (UK, Germany, Italy) and APAC (India and China) Highlights • Meeting rooms • Snacks available • Swimming pool and fitness center available in most hotels • Main competitors • Novotel, Hilton Garden Inn, Ramada, Holliday Inn, Hyatt Place • Network • 512 hotels, 70,144 rooms • Av. Size: 137 r. Locations • All major and secondary cities in the US • Geographical Breakdown • Mainly North America • Pipeline • 145 h. / 21,436 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010 (graph based on nb of r.)

  18. 8. Brands descriptionLimited service – Hampton Overview Network • Limited service, Midscale • Hampton brand was refreshed in 2004, unveiling more than 60 new products and standards. • Hampton Inn & Hampton Inn & Suites Highlights • Crisp and cozy bed • Fitness room • Main competitors • Courtyard, Fairfield Inn, Holliday Inn Express • Network • 1,864hotels, 182,672 rooms • Av. Size: 98 r. Locations • All major and secondary cities in the US • Geographical Breakdown • Mainly North America (99%) • Strongest in the US, in 2009 Hampton opened its first “Hampton by Hilton” hotel in the UK • Pipeline • Mainly North America • 332 h. / 33,338 r. (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010

  19. 8. Brands descriptionExtended stay – Homewood Suites Overview Network • Extended stay, Limited service, Upscale • More than 275 h. throughout the US, Canada and Mexico • Comfortable and home-like accomodations when travelling for an extended stay Highlights • Separate living and sleeping areas • Fully-equipped kitchens • Complimentary internet • Evening meals Monday-Thursday • Main competitors • Hawthorn Suites, Residence Inn, Baymont Inn & Suites, Summerfield Suites • Network • 307 h., 33,370 r. • Av. Size: 110 r. Locations • Selected key cities • Geographical Breakdown • North America only (1 in Latin America) • Pipeline • 67 h. / 7,339 r. • 2 projects in India (1) (2) Hilton – Company profile FY 2010 Source: Hilton Website based on nb of h. as of March 2011 Lodging Econometrics Q4 2010

  20. 8. Brands descriptionExtended stay – Home 2 Overview Network • Extended stay, Limited service, Midscale • Newest focused service brand, mid-tier extended stay chain, more affordable version of Hilton’s Homewood Suites • Average rates around $100, while the basics of extended stay such as common public areas to foster guest interaction as well as on-site amenities like pools and fitness centres will be kept • Nearly 80% of its rooms will be studios and the remaining 20% one-bedroom suites • Home2 Suites is in line with Hilton´s strategy to diversify its consumer base and attract a wider range of travellers, including women, young people and leisure guests. • 100% franchise operating type Highlights • Separate living and sleeping areas • Industry-unique “working wall” • which incorporates the kitchen and a flexible • working/media space • Fully accessorized kitchen • Main competitors • Marriott's TownePlace Suites and InterContinental's Candlewood Suites • Network • The first Home2 Suites opened 7 February 2011 in Fayetteville, NC. 54 more are planned, with 30 more in the pipeline, and five properties are under construction -- to open in 2011 or early 2012. • Ambition to open about 100 hotels by the end of 2013 in the US, Canada and Mexico Locations • Selected key cities • Geographical Breakdown • USA only • Pipeline • 61 h. / 6,046 r.(US only) (1) Hilton – Company profile FY 2010 Source: Hilton Website, Euromonitor (1) Lodging Econometrics Q4 2010

  21. 8. Brands descriptionTimeshare – Hilton Grand Vacations Overview Network • Timeshare, Upscale • New affiliation programme called ‘capital light’, under which Hilton Grand Vacations will assume responsibility for Grand Pacific MarBrisa timeshare sales and marketing, on a “fee-for-service” basis • Highlights • Studios and spacious 1, 2 and 3 bedroom • accommodations • On-property amenities may include: swimming • pool, spas, exercise facilities, sports courts, video • arcades and restaurants • Main competitors • Marriott Vacation Club • Network • 38 properties, 4,500 rooms Locations • Select vacation destinations • Geographical Breakdown • Mainly North America (4 properties in Europe, including 3 in Scotland) Hilton – Company profile FY 2010 Source: Hilton Website

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