Scott Brodbeck Justin Kahrl Meg MacWhirter Joseph Marchetti STRT 571 – International Business Environment | May 3, 2010

Passionately Swiss Company Position Organizational resources and capabilities – Expansive property portfolio – Brand recognition throughout Europe, Asia, Middle East and Africa – Strong cash position Industry structure and competition – Global recession – Market saturation 2009 European Upscale Hotel Guest Satisfaction Index Mövenpick Hotels & Resorts Award Winner Crowne Plaza Hotels Hotel Novotel Iberostar Hotels & Resorts Mercure AC Hotels nH Hoteles Meliá Hotels & Resorts Hesperia Source: © 2010 J.D. Power and Associates

Passionately Swiss India Sri Lanka Expansion Analysis Business expansion objectives – Develop our existing core market – New opportunities in developing countries and emerging markets Customer demand – Expand leisure/holiday resort segment – Exotic locations

Passionately Swiss Sri Lanka New market seeking – 26 year civil war ended in 2009 – 32% hotel occupancy increase Strategic location – Exotic locale – Visitors from existing markets Country characteristics – Established infrastructure – Educated labor force More Visitors Growth in tourist arrivals in Jan and Feb 2010 compared to Jan and Feb 2009 % Growth Sri Lanka50 Vietnam36 Japan29 Singapore21 Hong Kong14 Indonesia14 India13 Cambodia10 China8 USA3 Source: UNWTO World Tourism Barometer

Passionately Swiss Investment climate – Tourism industry = national priority – Tax incentives, low import tariffs Risk assessment – Political – potential future instability – Economic – currency risk – Geographic – weather-related risks, climate change Foreign Direct Investment Sri Lankan Tourism and Investment Assistance Agencies

Passionately Swiss Investment Strategy Beach-front property in Hikkaduwa – Location decision – First mover advantage Costs – No VAT on construction equipment – Low labor costs Engineers - $ /month Semi-skilled workers -$50/month Significant return on investment

Passionately Swiss