HOTEL INVESTMENT ADVISORY & ASSET MANAGEMENT

PORTFOLIO OF SERVICES INDIA & MIDDLE EAST

Autumn 2014

IGI-3R provides a unique offering in India – a global standards of asset management tailored for the domestic hospitality industry’s owners, investors and financiers of hotels, resorts and serviced apartments. IGI-3R is focused on creating and enhancing value, using our skills and proven methods to design and implement short term tactics and long term strategies to drive or fix the performance of hospitality assets. Its principals are mature investment and operational professionals who have worked for global and independent hotel operating companies, leading investment and lending institutions and publicly traded companies.

IGI-3R is an independent company and is not affiliated with any hotel brand or brokerage house. We advise on turnaround and underperforming assets by identifying operating inefficiencies, restructuring and re-organization opportunities and thereafter bringing in solutions for the hotel, restaurants or spa.

IGI-3R offers the following service lines: • asset management and owner representation

• hotel management • strategic planning, business development and portfolio reviews

• capital structuring

• operational restructuring

INTRODUCING IGI-3R

2

BUILDING VALUE IN THE HOSPITALITY BUSINESS

SERVICES

ASSET MANAGEMENT

Operator/franchisor oversight

Financial and operational turnaround

Assessing CapEx projects

Monitoring competition

Overseeing budget process

Exit considerations

Working capital optimisation

Real estate optimisation

Managing the operator

Value enhancement

HOTEL MANAGEMENT Cost, budgeting, and financial reviews

Accounting and reporting

Strategic sales and marketing

Yield management

Compliance

Renovation management

Pre-opening

Recruitment

Training

Employee relations

STRATEGIC PLANNING / PORTFOLIO MANAGEMENT

Review of portfolios

Investment rankings

Strategy formulation

Hold vs. sell analysis

Preparation for exit

Loan restructuring

3

4

IGI-3R principals have worked with owners / financiers / operators in all phases of the hotel life cycle. For example:

RECENT ASSIGNMENTS

Situation Client IGI-3R Role

Development        

Residential training centre Property Developer Developed hotel concept. Prepared trading projections. Coordinated architectural brief

New resort hotel Property Developer Developed concept. Wrote investment memorandum

Portfolio of 7 new build upscale hotels Property Developer Selected brand. On-going owners representative

New build upscale hotel development Asia-based Hotel Group Owner/Operator Prepared market study. Did space planning. Achieved pre-planning with developer and architects

Financial / Funding

Acquisition support Boutique Hotel Group Owner/Operator Assisted with purchase strategy and funding negotiations. Prepared financial projections.

Insolvent hotel development Chartered Accounting firm Recommended remedial actions to turn around performance

Distressed hotel loan book Commercial Bank Advised board on options to maximise recovery. Full business plan and financial analysis

Acquisition of midscale hotel Fund Manager Financial due diligence and performance projections

Equity raising & business expansion Hotel Group Owner / Operator Prepared investment memorandum. Negotiated with prospective equity partners

Turnaround strategy for hotel portfolio Private Investment firm Comprehensive advisory services, site analysis, strategic and financial, operator negotiations and liaison

Ownership

Conversion to boutique hotel HNWI Owner Project managed residential into boutique hotel. Operated hotel. Organized sale

Underperforming resort Int'l Hotel Management Company Reviewed management and operations/yield

Redevelopment of upscale hotel Int'l Owner/Operator Hotel Group Owners representative to manage funding, architecture, executive recruitment and pre-opening

Economy hotel poor distribution Property Owner/Developer Secured international brand master franchise

Manager and brand selection Real Estate Investor Solicited and evaluated proposals, recommended manager. Secured lease agreement

HEMAL MODI

21 year veteran in the hospitality industry, Former Indian Regional Director of the Intercontinental Hotel Group, during which he implemented the new Intercontinental brand standards across Intercontinental properties in India Prior to IHG, worked with the Naman Group where he conceptualized and set up the “Check Inn” brand, a select service hotel which commenced operations in Delhi in October 2010 and was responsible of setting and commencing the operations of the Sofitel BKC, a hotel in Mumbai, in February, 2012. His previous experience in hospitality brands include Holiday Inn and Hilton in the US, The Grand Hyatt in Mumbai where he was a part of the pre-operations team and Radisson Hotels in Mumbai where he was responsible for commencing the sales and marketing operations of the hotel in western India. Mr. Modi is a graduate in International Hotel Development & Management from E.I. Hotel & Motel Association, USA

PRINCIPAL

SENIOR CLIENT TEAM

5

PIERRE-EDOUARD VINTROU

The principal of 3R Hospitality’s South East Asian business and is based in Bangkok, Thailand. Formerly Director, Corporate Finance at InterContinental Hotels Group Global HQ in the U.K. and led the relationship management platform with global equity partners and debt providers. Previously, Manager, of Real Estate Finance with the Royal Bank of Scotland in London and in this role covered underwriting and credit analysis of property deals, and hotel asset management. Prior to joining RBS he was a Senior Financial Analyst at TriMont Real Estate Advisors Inc. in Atlanta in the U.S. providing Asset Management for a $500m hotel portfolio on behalf of Lehman Brother’s Principal Transaction Group. He holds a master’s degree in Hospitality (Real Estate, Finance) from the School of Hotel Administration, Cornell University (USA) and a Bachelor of the Glion Hotel Management School in Switzerland. Prior to joining 3R Hospitality, Pierre-Edouard was asked to consulted to Onyx Hospitality Group in Thailand and with Taylor Global Advisors in the U.K.

DIRECTOR – ASSET MANAGEMENT

ANGSHUMAN CHATTERJEE

Mr. Angshuman Chatterjee has 30 years experience in hospitality business, training and human resources. has served as Director of two of the largest hospitality institutions in India – DSMS in Durgapur, W. Bengal and HIHT in Agra, UP. He has been a senior faculty member with IHM, Calcutta and Head Examiner for National Council for Hotel Management & Catering Technology, Pune. He has served as a consultant to hotels and clubs for formulating business policies, achieving target GOP and devising policies for client retention. He has also been retained by prestigious hospitality centers in eastern India for planning and designing all aspects of hospitality operations, formulating and implementing SoPs and control systems. Currently he is setting up the HR policies and practices for a multinational headquartered in Dubai, UAE.

CONSULTANT DIRECTOR

SENIOR CLIENT TEAM

6

ARNAUD MILLECAMPS

A Director and Chief Commercial Officer of 3R Hospitality. Prior to joining 3R, Arnaud consulted on business planning and hotel development with a project and construction management company based in Bali, Indonesia. Arnaud was previously Corporate Finance Manager Europe with InterContinental Hotels Group (Brussels and London offices) where he undertook investment appraisals and analysis of management and franchise opportunities and provided commercial recommendations to support IHG's development strategic plan in a multilingual and multicultural environment. Before IHG, Arnaud worked in Paris with an organisation providing financing and mentoring services to new ventures; in this role he covered deal flow development and performed financial, market and risk analysis. Arnaud also worked in Financial Advisory Services with KPMG Corporate Finance and venture capital in the telecom industry with Orange. He holds a Master in Management from SKEMA Business School in France. Arnaud is based in Sydney, Australia.

DIRECTOR – INTERNATIONAL SERVICES

SPONSORS

BANI BANERJEE

Founder of IGI with interests in investment management, financial advisory, hospitality and financial services business More than 21 years experience across investing, fund management, large scale industrial development, operations, corporate finance, business and financial restructuring. Previously Executive Director of US based The Chatterjee Group (“TCG”). Former CIO of US$ 314 MM India Property Fund in a JV with Vornado Realty, managed six assets across cities and executed transactions with returns in excess of 20%. Extensive experience in Indian property and operational turnaround, creating systems and processes for new hotels and development project management.

DIRECTOR

7

ROBERT WILSON DIRECTOR

Prior to co-founding 3R Hospitality Robert was president of Panorama Hospitality and an executive director of Morgan Stanley Capital based in Tokyo. He joined Morgan Stanley in 2003 as the leader of the hotel asset management group of Morgan Stanley Properties Japan based in Tokyo. He oversaw the growth of the group and was responsible for its transition into a separate, dedicated entity, Panorama Hospitality. Under his leadership Panorama asset managed and operated a portfolio of 49 hotels in Asia and Europe valued at US$5.5 billion. The portfolio was largely comprised of upscale hotels which operated under InterContinental, Hyatt, Hilton, Sheraton, Westin, Marriott, Mandarin Oriental and Crowne Plaza brands. Prior to his Panorama role, Robert was with the Ramada International division of Marriott International as Vice President Development & Operations - Asia Pacific during 1999-2003. In 1998 he was in charge of Australia & New Zealand for Bass Hotels and Resorts (now IHG) based in Sydney. Between 1994 and 1997 he was President – Japan, Korea and Micronesia based in Tokyo for Bass Hotels and Resorts. From 1989 to 1993 he was Vice President Sales and Marketing - Asia Pacific for Holiday Inn Worldwide based in Hong Kong and served as a member of the company’s global marketing steering committee.

SPONSORS

8

SANJOY CHATTOPADHYAY

Hotel turnaround specialist, completing transactions as investment banker, principal investor and creditor in all four quadrants of debt/equity, public/private with top tier firms. Has completed 15 deals in the hotel industry alone, invested in 22 hotel assets and 5 hotel companies. Most recently led the distressed team for European property for a leading US distressed fund. Previously Head of Special Situations investing at Benson Elliot Capital Management, a US$ 1 BN PE fund From 2004-2009 Senior Vice President at Morgan Stanley /MSREF, leading both investment banking advisory and investing for hotels in Europe, which became the #1-ranked hospitality franchise. Prior to this, he served on the corporate development team of Le Meridien Hotels after beginning his career with Merrill Lynch real estate investment banking. Inter alia, has advised the senior management of EIH, Taj Hotels, Air Asia (Tune Hotels), Whitbread, Hilton, Marriott, Fairmont and Accor.

DIRECTOR

9

ASSET MANAGEMENT - SERVICES

Monitoring Review variances Rolling forecast Benchmarking

Management meetings

Ownership objectives Holding strategies

Asset values Investment cycle

Return

Business Plan review

Strategic plan Operating budget Financial budget CapEx budget

Reporting Management reporting

Financial Operational

Control Corrective actions

Refine implementation Inspection

Compliance

Understanding local situation

• Review sales and marketing strategy • Review business plan and cash flow forecast • Review cash management, loan covenants and debt service coverage requirements • Review capital expenditure plans • Monitor accounts payable and receivables over 30-60-90 day cycles

Equity market

• Capitalization rate cycle • Capital vs. income return • Separating the signal from the noise • Liquid vs. illiquid markets

Investment review

• Planning, scheduling, executing and monitoring CapEx

-  Required amenities and upgrade CapEx -  Upgrade CapEx vs. innovative CapEx -  Opportunity cost - Prepare asset for sale

• Proactively negotiating with hotel retail tenants • Re-branding opportunity • Reviewing space utilization • Reviewing subleases

F&B concept creation

• Design service types • Analyse customer flow • Concept design and review • Implement outsourcing opportunities • External opportunities • Menu engineering • Purchasing

Sales & Marketing review

• Distribution channels • Distribution mix • Discounting strategy • Marketing mix optimization • Sales and marketing reward system • Value of brand delivery • Third party intermediaries • Regional origins of travelers • Price elasticity and rate parity • Measure competitive performance, market

share and penetration

Operating performance review

• Business plan review -  1 year budget, marketing plan -  5 year strategy

• Unexploited revenue opportunities • Brand standard compliance review • Guest satisfaction review • Procurement process review • Ensuring insurance and other risk

management programs are in place

10

ASSET MANAGEMENT - SERVICES

Finance

• Providing full support to owners during annual budgeting process • Working closely with operators to achieve financial targets • Monitoring and analysing financial reports and business plans • Reviewing profit centers performance, revenue centers and cost centers rational • Cost cutting vs. generating revenue approaches • Comparing performance with industry standards • Comparing performance with local market (if data available) • Balance sheet Restructuring & Capital raising

Communication

• Interacting with management companies • Discussions with hotel general managers • Regular visits to hotels

Legal

• Management agreement reviews • Covenant testing • Lease covenant review and monitoring • Insurance, Property taxes

Monitoring • Proactive action plan (economic growth and downturn) • Repeat conference events (annually, every two years) • Budgeting scrutiny, and rational/assumption review • Budgeting and re-forecast (quarterly, semi annually) • Revenue delivery channels, booking pace reports, • Reviewing forecasting accuracy • Benchmarking of top line performance indicators

Reporting • Quarterly asset performance overviews and forecasts • Monthly reports and commentary on prior month’s performance

(variance analysis with budget and previous year) and upcoming month’s forecast

• Institutional quality reporting • Reporting based on proprietary template, or tailored template • On a monthly, quarterly and annual basis

Monitoring Review variances Rolling forecast Benchmarking

Management meetings

Ownership objectives Holding strategies

Asset values Investment cycle

Return

Business Plan review

Strategic plan Operating budget Financial budget CapEx budget

Reporting Management reporting

Financial Operational

Control Corrective actions

Refine implementation Inspection

Compliance

INDIA

Mumbai Unit # 302 •3rd Floor• Madhava Bandra Kurla Complex• Bandra East Mumbai – 400051 T: +91 22 66 714 271 Kolkata 3rd Floor• Aspiration Conclave 22A N.B. Lane • Near Desapriya Park Kolkata – 700026 M: +91 98 31 0394 994 Bani Banerjee M: + 91 98 67 748 390 E: bani@igi-3r.com Hemal Modi M: +91 98 20 228 911 E: hemal@igi-3r.com

!

UAE (Dubai) Business Center 4 PO Box 16111 Rasal Khaima UAE Bani Banerjee M: + 97 155 705 0833 E: bani@igi-3r.com

www.igi-3r.com

THAILAND

Level 18 Park Ventures Ecoplex 57 Wireless Road, Lumpini, Patumwan Bangkok 10330 T: +66 2309 3447 Pierre-Edouard Vintrou M: +66 80 966 9181 E: pierre@igi-3r.com

!

AUSTRALIA Level 2, 710 Collins Street Docklands, Melbourne Victoria 3008 T: +61 3 9097 1622 Robert J. Wilson M: +61 413 000 836 E: robert@igi-3r.com Arnaud Millecamps M: +61 415 804 934 E: arnaud@igi-3r.com

!

UNITED KINGDOM (London) Sanjoy Chattopadhyay M: +44 (0)7801 140 870 E: sanjoy@igi-3r.com