Hospitality Business Summit Hotel Investment – The next move June 2014

STUDIES HBU’s FEASIBILITIES STRATEGIES HOTEL VALUATIONS $6.3 BILLIONS 38,043 KEYS COMBINED PEOPLE 11 HOTELS PROFESSIONALS OVER 100 YEARS COMBINED EXPERIENCE 16 YEARS LOCALLY 100’s HOTEL P&Ls 1000s AGREEMENTS GLOBAL BENCHMARKS 2013 OPERATOR SEARCH PROCESSES 153 LOI – MOU’s 7 AGREEMENTS $2.1m SAVINGS HOTEL ASSET MANAGEMENT OVER 4000 KEYS % AVERAGE EBITDA INCREASE ADDED VALUE ASSET VALUE Offices: Dubai, Abu Dhabi, Doha, Riyadh, Jeddah, Cairo

Colliers International Hotels 3 Range of Services Identification of Market Opportunities Asset / Facilities Management Investment Teasers / Information Memoranda Highest & Best Use Assessments Financial Feasibility Study Valuation & Brokerage Business Plans Portfolio Assessments Operator Search and Selection Land Lord / Tenant Representations Project Lifecycle

Dubai 4 Current Supply Future Supply Source: Colliers International, 2014 Current Demand Future Demand 51% - 5 Star and 4 Star 10% Growth for Hotel Guest nights 18% Growth for Hotel Apartment Guest nights Tourism Infrastructure Destination Dubai – Corporate Leisure Mega events Expo 2020 Double Digit Growth We expect the trend to continue 110,000 Keys by 2018

Abu Dhabi 5 Source: Colliers International, 2014 Current Demand Future Demand 19% Growth for Hotel Guest nights 12% Growth for Hotel Apartment Guest nights Continued investment Leisure destination – Saadiyat/ Yas MICE and Business positioning Introducing new segments into the market Consolidating the existing demand 61% - 5 Star and 4 Star 33,000 Keys by 2018 Current Supply Future Supply

Market Performance 6 Average occupancy in Dubai reached 81% in 2013 with an ADR of USD 247; Abu Dhabi, on the other hand, experienced a rate compression with an ADR of USD 132 in 2013 while the occupancy recovered to reach 69%, we expect further recovery as the market consolidates Evolution of Key Performance Indicators: – 2013 Source: STR Global, Colliers International, 2014 Dubai Tourism Hub Abu Dhabi Emerging MICE and Leisure Ras al Khaima Affordable Luxury Fujeirah The Getaway

Opportunity: Mid market hotels 7 We expect the mid market hotel segment to experience considerable growth in the next 3 to 5 years Market Gap Supply Gap/ Rate Gap Wider audience/ Target Market Projected Occupancy of 80% to 85% by 2018 Lower Investment/ Incentives Incentives by authorities (Land) Budget hotel investment range: USD 90,000 to USD 110,000 Upscale hotel investment range: USD 160,000 to USD 180,000 Efficient Optimum utilization of BUA Short construction/ fit out period Efficient operations: GOP in the range of 40% to 55% Gap Cost Efficiency Mid Market Hotels

Opportunity: Serviced Apartments 8 Serviced Apartments: Operating Model With average occupancies over 85% in many parts of the city, many serviced apartments in Dubai are confident that they will be able to fill with transient demand paying strong rates and see long stay guests as an erosion of potential revenue streams

Opportunity: Branded Residences 9 Prime Residential Product Premium Branded Hotel Branded Residences Strength of hotel brand ensuring high occupancy and stability in returns; In a rising residential market, benefits capital value appreciation; In a rising hotel market income growth from increases in Average Room Rates; Minimum hassle – maintained and managed by hotel operator; Low security and damage risk; Ability to use the residence for personal use on a set number of days each year (0-14 days) The ConceptThe Premium Source: Colliers International, 2014