“INVESTMENTS AND INNOVATIONS IN HOTEL INDUSTRY”

HR- Zagreb, Hotel Westin, 11.-13.02.2014.

ADRIA HOTEL FORUM is the only Investment Forum in hotel industry in Croatia. AHF has been held for the first time on February 13th- 14th 2013 and it has gathered leading Croatian and international experts. In 2014 the Forum theme develops to:

Adria Hotel Forum is a relevant point of the international experts and encourages communication and development of stakeholders of tourism industry. It aims long to be "think tank" of the industry that connects people and creates the possibility of additional value and interest of foreign investors in Croatia.

Years of experience in the hospitality sector is the characteristic of all Organizational board memebrs:

Marina Franolić, Founder; Rasti Nikolić, Co-founder; Dr. Sanja Čižmar, Horwath HTL and Kristian Šustar, HUP-Zagreb

Yet, Adria Hotel Forum is much more than Organizational board. All our partners, sponsors, patrons and friends are meritorius for the great 2013 Forum and even better 2014.

Partneris2013: Patrons2013: Media sponsors2013:UPUHH Ministry of tourism Ugostiteljstvo

i turizamRandić and associates OMH Croatiameetings.com

Croatin chamber of economy LiderIstrian county Business.hrCity of Zagreb www.net.hr

Fortourism.eu

Who?

Adria Hotel Forum 2013

Opened by Minister of tourism Veljko Ostojić

Within 2 day period it was held:

8 panels

28 panelists

300 participants

7 institutional partners

6 media partners

24 partners and Forum sponsors

Panelists2013- Allan L. Agerholm, Crown Plaza Copenhagen Towers - Hrvoje Kvasnička, Jones

Lang La Salle- Dirk Bakker, Colliers International - Vedrana Likan, GBC Croatia- Jochen Bender, Alamanda Resorts - Peter Misja, Podčetrtek

county- Ivana Budin Arhanić, Valamar Adria group - Dr. Sanja Čižmar, Horwath

HTL- Artur Gedike, Fantasyland - Nenad Nizić, Hotel Vestibul- Zdenko Gregurić, EBRD - Danijela Primorac, Hotel Frankopan- Neven Ivandić, Institut for tourism - Saša Randić, Randić and associates- Miha Jazbinšek, Eufondia - Camilo Soza, Adriatic Luxury Hotels- Želimir Kramarić, Ministry of tourism - Kristian Šustar, HUP-Zagreb- Michael LaBelle, CEU Business School - Oleg Valjalo, Ministry of tourism- Peter Vermeer, InterContinental Group - Aleksander Vujadinovič, Vander

resort- Ulrich Widmer, Hilton Worldwide - Davor Zdjelarević,

WinaryZdjelarević- Dr. Dimitrios Diamantis, Les Roches International - Vladimir Preveden, Roland Berger

Strategy School of Hotel Management Consultants

http://2013.adria-forum.eu/en/speaker/

Adria Hotel Forum 2014 themeGlobal hotel transactions reached $31.8 billion in 2012, a 5% decrease on 2011. For 2013 it is expected a slight improvement to $33 billion.The hotel investment market in Europe, Middle East and Africa (EMEA) moderated in 2012 as transaction volumes slowed by 10% year on year to $11 billion. Yet, given the amount of stimulus injected into the world economy, growth rates for 2013 to 2015 should be well above the current levels. In fact, it looks as though it will take until 2015 for growth to match 2010 levels. This implies that the changes occurring are more structural than cyclical, which has a profound impact on investment strategies moving forward.

Positive signs include the emergence of new sources of debt in the form of debt funds and alternative lenders such as insurance companies which are entering the hotel arena.In 2012, Middle Eastern investors were one of the most active buyers of hotel real estate, acquiring about 15% of total investment volumes in EMEA. These investors are more focused on upscale assets in core markets and long term capital preservation.

The majority of transaction activity is occuring in Western and Northern Europe with nearly no activity in Central and Eastern Europe, due to the economic and political instability. In the Central and Eastern Europe countries investments will, by most means, be connetcted to the available capital. Although, the available means will grow in Croatia, the expected average growth will be lower than in other parts of Europe. Investors always seek the stability in the country they invest in, and despite the fact that Croatia is 35th by touristic competitiveness (of the 140 countries in total), tax loads are set to 133rd position, staff training is on 122nd position and the amount of governmental investments in the sector is set to 121st position. All of the above implicates that the space for growth and development is tremendous and that Croatian goverment has to make extra efforts to prove Croatia’s adaptation to market needs.

Taking a closer look on a microlocation, in 2013. it has been invested $500 million yet most of the investments have been done by the local hoteliers. Increase in total income from tourism has been 8,5% in regards to 2012 but the intention has to be focused on the figure which says that the highest increase was in the touristic camps, 28%. Development of the hotel sector is necessary for the development of the overall tourism industry and revenue increase in hotel industry can be partialy achieved through innovative models and products to enhance competitive strenghts. Innovations have been always present in all the industries yet in 21st century they are consciously implementing with the aim to differentiate one service and product from other. At Adria Hotel Forum quality innovations Innovations that have brought to quality development of a hotel/ brand/ destination will be presented at Adria Hotel Forum.

Adria Hotel Forum 2014Day 1

During the first day, the panels will be focused on investments- the ones that already happened after Croatia has joined EU and the ones that should happen in future periods.

Day 2

Presentation of potential investments in innovations as the model of attracting new markets and generating new supply, everything with the goal of quality upgrade and creating added value for the guest and the owners at the same moment.

11 panels, 2 education seminars, 2 interviews, 1 student competition

Adria Hotel Forum 2014 programme

Day 1- Investments:• Croatia is a member of EU, is it member of the european market?• Foreign investors’ view on the region •Open discussion: brand versus individual hotel• Interview with the Minister of tourism Darko Lorencin

Adria Hotel Forum 2014 programme

Day 2- Innovations:• Everyone is talking about sustainability• Internal process innovations• Sales- online and offline• Perfection of the service• This is a new world- technology world• ... 

Adria Hotel Forum 2014 novelties

ASIC (Adria Student Innovation Contest)•Young generations are, in the highest number, innovations leaders and through the contest we are stimulating them to define project and to present it to the business world they will act upon•Contest has been announced on November 1st 2013 and the awarded projects will be presented to all Forum participants

Adria Hotel Forum 2014 novelties

Zero day- Adria Hotel Forum (11.02.2014) will contain 3 separate programmes

1. 1-day education on Structural EU funds application, in cooperation with the company with year-long experience in EU fund projects implementation

2. 1-day case study for hotel managers in cooperation with world leading school for hotel management

3. ASIC 2.round projects presentation to the jury

Why to become a partner?• Adria Hotel Forum is a meeting place for leading hotel chains, hotel owners and managers, as well as professionals from the field of hotel industry investment to exchange sustainable ideas and projects that foster and benefit the development of the community

• Companies that want to present themselves and their products or just to want to greet their clients and partners, can join the AHF though the following models:

Exclusive partner/ 9.000 eur• Announcement in all the media (including press conference 7 days prior to Forum)

• 15-minute presentation after the opening speech of the Forum (Forum will be opened by the Minister of tourism)

• Separate hall for comunication with clients and product presentation

• Partnership/ participation at one Forum panel

• Promotion through the Forum web site and social media profiles

• Logo on the official Forum web site (linked to the partner’s web site)

• Logo on the Forum newsletter (2500 recipients)

• Logo on the Forum closing

• Possibility to present the company with the broshure or mini presents

• 8 sponsorship accreditations

• Possibility of organizing contest, prize winning game or else

• Exclusivity in relation to cpmpetitors

• List of all Forum participants

General partner / 7. 000 eur• Announcement in all the media (including press conference 7 days prior to Forum)

• 10-minute presentation during the lunch-break

• Separate hall for comunication with clients and product presentation

• Partnership/ participation at one Forum panel

• Promotion through the Forum web site and social media profiles

• Logo on the official Forum web site (linked to the partner’s web site)

• Logo on the Forum newsletter (2500 recipients)

• Logo on the Forum closing

• Possibility to present the company with the broshure or mini presents

• 7 sponsorship accreditations

• Possibility of organizing contest, prize winning game or else

• Exclusivity in relation to cpmpetitors

• List of all Forum participants

Alliance: Alliance offers possibility of company/ product presentation to all Forum participants through 3-minute video presentation prior to one panel and Ad publication (1/1 page) in the hotel magazine “Hospitality and tourism” (60 year long publication issued in 4000 copies and organ of associations: UPUHH, UHPA, OMH, KUH i KFKS.

Communication: In Communication model partner compay can participate in one of the panels, in agreement with the organization

Value: 3-minute video presentation prior to one panel to all Forum participants gives possibility to present company, product or service

Network: Network is by all means the optimal presentation model on AHF 2014. Through the Network You are the coffee-break sponsor (video and materials presentation during one of the coffee-breaks) and have possibility to communicate to your actual and future partners.

Change: Change indicates your decision to participate at the Forum through all the printed materials and booth location. It gives you the possibility to communicate with all the participants.

Other sponsorship models:

ALLIANCE COMMUNICATION VALUE NETWORK CHANGE

Number of received accreditations 4 4 4 3 3

Partnership on the panel x ✓ x x x

Video presentation ✓ ✓ ✓ x x

Booth location ✓ ✓ ✓ ✓ ✓

Logo at the Forum closing ✓ ✓ ✓ ✓ ✓

Ad publication in the specialized magazine

✓ x x x x

Coffee break sponsorship x x x ✓ x

Other sponsorship models:

AHF media publication presence ✓ ✓ ✓ ✓ ✓

Printed materials presence ✓ ✓ ✓ ✓ ✓

Promotion through the web site and social media

✓ ✓ ✓ ✓ ✓

Logo and the link on the company web site

✓ ✓ ✓ ✓ ✓

Logo in the newsletter (2500 recipients)

✓ ✓ ✓ ✓ ✓

Sponsorship amounts (in EUR) 2.300 3.060 1.730 2.260 1.330

Marina Franolićmarina@adria-hotel.eu+385.91.7610885

Matea Pejićmatea@adria-hotel.eu+385.91.2668130

www.adria-forum.eu