BY : RICKY THEODORES JUNE 2013 RONALD TICOALU

Hotel Development PlanPT Sumber Alfaria Trijaya

Hotel & Property Industry Climate

• International visitor arrivals to Indonesia in the first nine months of 2012 rose by 5% to 5.9 million from 5.6 million visitors during the same period of 2011.

• Indonesia enjoy sustainable economic growth of 5% to 6% since last 3 years

• Middle Class in Indonesia reached 135million people or 55% from total current population, growth of 100% since 2009

• Accor, on top of their 10,800 room inventory, has signed up 23 management contract and 20 hotels will be open within 2013

• Aston International holding 6,000 room inventory and claim to open 18 hotels in 2013 and has just launched new hotel brand “Hotel Harper” to accelerate their mission

Hotel & Property Industry Climate

• Santika currently owned & managed 5,600 room inventory and started penetrating Asia Market with opening of Amaris Hotel in Singapore

• Tauzia has impressed the market with 11 hotels and almost 2,000 room inventory claim to open another 30 hotels in next 3 years

• No of Rooms 2012 = 57.080, assuming 5% economic growth YOY, projected No of Rooms 2022 = 150.000

• Jakarta announced as city with highest growth in Property Industry in the world on 2012 !

• With foreign investments in the tourism sector in Indonesia reaching US$7.3 billion for the first nine months of 2012, compared to US$2.5 billion for the same period in 2011, Indonesia has now become a destination which provides hotel developers and chains with significant opportunities for growth.

Major Player Budget Hotel in Indonesia

•There are more than 300 budget hotel in 2013 representing 3,050 room

•Budget hotel representing only 5% from total room supply

•Total number of hotels expected to be increase by 250% within 10 years up to 2022 – this will mainly dominated by increment in budget & middle class hotel

•Average Occupancy of budget hotel is 68% while in several area may reach 92%

•Average Rate for budget hotel are 400.000 – 600.000 at the moment

Smart Budget Hotel located in Major Attraction, Shopping Arcade, Malls or

Business District. We are committed to Functional Design, Cleanliness, Comfort,

Friendly Service and most importantly Unbeatable Rate !

Unique Selling Point :

Unbeatable Rate !

Require small area

Minimum Investment

Maximum ROI

“Easy” & Efficient Operation

Online Control

New Concept Retail Hotel attached with Alfa Mart / Lawson Brand.

Click icon to add pictureOUR BRAND

Total investment 20 Billion100 Rooms – excl Land & ConsultantPay Back Period 3.5 Years !

15 sqm standard rooms

Double or twin beds

26” LCD TV with International & Local Channels

King Koil Beds & Pillow 100% cotton

En Suites bathroom with shower

Individual AC

In-Room Safety Deposit Box

IDD Telephone

Convenience Store

Free Wifi

Self Check in Kiosk

24 Hours Security

• BADAN HUKUM : PT. ALFA HOSPITALITY ASIA (AHA ! )

• OFFICE SETUP (TANGSEL / ALAM SUTRA)• RECRUITMENT • HOTEL DESIGN DEVELOPMENT• HOTEL DEVELOPMENT PLAN IN MAJOR CITIES• SYSTEM DEVELOPMENT (SOP AND PMS)• WEBSITE & ECOMMERCE DEVELOPMENT• MARKETING TOOLS DEVELOPMENT• FRANCHISE BUSINESS DEVELOPMENT • BRAND LAUNCHING

What’s NEXT ?

Franchisee Franchisor

Sharing Experience, Expertise & Client Database

Allow individual owner to learn about the business

“Buddy” during critical process

Relatively simple to manage compare to Management Agreement – less time consume

Rapid expansion ability

With simple & efficient operation we may do online control

Why Franchise ?

Organization Chart Alfa Hospitality Asia – AHA !

Level I                                                                    Benefit :                 President / CEO            Salary by Negotiation                                Official Car & Driver                                  Share Portion                                  Healt Insurance                                  Pention Plan                                  Phone Allowance                                  Laundry                                  

Level II                 Vice President / COO            Salary by Negotiation                                Official Car                                Share Portion                         Corp. Secretary    Healt Insurance                                Pention Plan                                  Phone Allowance                              Laundry                                                                                                  

Level III                                  Division Head Level   Dir. of Operation   Dir. of HR     Dir. of Marketing   Dir. of Finance   Dir. of ITBenefit :         and     Salary Range 25mio - 35mio             Business Development          Yearly performance bonus                                  Health Insurance                                  Phone 500.000                                  

Level IV  Regional Chief

Engineer   Regional HRM     Regional DOS Corp.   Regional FC   Regional IT ManagerCorporate Manager / Staff Level   Regional Procurement   Regional Training     Regional DOS Agent   Internal Auditor      Benefit :   Architect           E-commerce                         Business Development            A. Salary Range 15mio - 25mio                 Regional PR            B. Salary Range 6mio - 12mio                            C. Salary Range 2.5mio - 5mio                            Health Insurance                                  Phone 300.000 / 200.000                                  

Start Up Budget Allocation

6,5 Billion allocation budget to finance 8 Months operation while hotels are not operating thus no income yet.

This budget include Sales Marketing & Brand Launching Activities which will not occur on 2nd year

TOTAL

OPERATING FUND

B. SALARIES & RELATED BENEFITS EXPENSES

# PAYROLL & RELATED BENEFITS 4,373,857,200

TOTAL SALARIES & RELATED 4,373,857,200

- C. ADMINISTRATION AND GENERAL -

1 ADMINISTRATION AND GENERAL 84,500,000 -

TOTAL ADMINISTRATION AND GENERAL 84,500,000

- D. TRAINING & TRAVELING EXPENSES -

1 TRAINING , TRAVELING & ACCOM - PROPERTY 25,000,000 2 TRAINING & TRAVELING & ACCOM - CORPORATE SUPPORT TEAM 108,000,000 -

TOTAL TRAINING &TRAVELING EXPENSES 133,000,000 -

E. SALES & MARKETING & COLLATERALS - 1 BROCHURES, COLLATERAL PHOTOS DEVELOPMENT & AD 1,572,000,000

- - TOTAL SALES & MARKETING 1,572,000,000

- F. OPERATING EQUIPMENT & SUPPLIES -

1 CAPITAL EXPENDITURE 178,400,000 -

2 OFFICE SUPPLIES 9,180,000 - -

TOTAL OPERATING EQUIPMENT & SUPPLIES 187,580,000

- G. OTHER COSTS : -

- - TOTAL OTHER COSTS -

- H. CONTINGENCY 236,688,620

- I. TOTAL PRE-OPENING COST 6,587,625,820

DESCRIPTIONS

Typical P&L Alfa Hotel (1st Year)

100 Rooms Available

70% Occupancy

ADR 300.000

Franchise Fee 5%

GOP 64% Average

Yearly Owner’s Profit 4 billion

20 billion reached 0n 3,8 years operation

Total365

# OF ROOMS 100 ROOM AVAILABLE 36,500 OCCUPIED ROOMS 25,580 OCCUPANCY ( % ) 70.08%AVERAGE ROOM RATE ( RP ) 300,000 # OF FOOD COVERS 50,137EXCHANGE RATE US $ TO RP 8,500

REVENUES ROOMS 7,674,000 FOOD & BEVERAGE -

TOTAL REVENUES 7,687,046

COST OF SALES FOOD & BEVERAGE - TOTAL COST OF SALES 7,827

PAYROLL & RELATED EXPENSES ROOM 465,377 FOOD & BEVERAGE - TOTAL PAYROLL & RELATED EXP. 465,377 OTHER EXPENSES ROOM 779,345 FOOD & BEVERAGE - TOTAL OTHER EXPENSES 779,345

DEPART. OPERATING COST & EXP. 1,252,549

DEPARTMENT INCOME ROOM 6,429,278 FOOD & BEVERAGE -

TOTAL DEPTMENT INCOME 6,434,497

OVERHEAD DEPARTMENTPAYROLL & RELATED ADM. & GENERAL 476,563 SALES & MARKETING 40,846 HUMAN RESOURCES - ENGINEERING 140,678 TOTAL PAYROLL & RELATED 658,087

OTHER EXPENSES ADM. & GENERAL 121,705 SALES & MARKETING 125,232 HUMAN RESOURCES 31,800 ENGINEERING 181,080 ENERGY COST 736,704 TOTAL OTHER EXPENSES 1,196,521

TOTAL OVERHEAD DEPARTMENT 1,854,608

GROSS OPERATING INCOME 4,579,888 OTHER NON OPERATING EXPENSES ROYALTY FEES 422,788 TOTAL OTHER EXPENSES 422,788

GROSS OPERATING PROFIT (GOP) 4,157,101 % G O P 54.08%OTHER EXPENSES INCENTIVE FEES - RESERVED FOR FF&E - 3% - TOTAL OTHER EXPENSES -

OWNER SHARE PROFIT (OSP) 4,157,101 OWNER EXPENSES OWNER INSURANCE - PROPERTY 120,000 TOTAL OWNER EXPENSES

NET OWNER SHARE PROFIT (NOSP) 4,037,101

P&L Alfa Hospitality Asia – 1st Year

No of Hotels 12

Technical Fee 2,5 B

Royalty 3,29 B

Total Revenue 5,79 B

Loss (518million)

Key Factor :

First 5 Hotels are owned & build by Alfa

No of Hotels

750,000,000 12.95

1,250,000,000 21.59

500,000,000 8.64

- -

2,500,000,000 43.18

- -

3,290,000,000 56.82

- -

3,290,000,000 56.82

5,790,000,000 100.00

4,242,000,000 73.26 353,500,000 6.11

207,433,800 3.58

836,447,000 14.45

152,400,000 2.63

-

5,791,780,800 100.03

18,000,000 0.31

24,000,000 0.41

12,000,000 0.21

24,000,000 0.41

18,000,000 0.31

18,000,000 0.31

3,000,000 0.05

12,000,000 0.21

24,000,000 0.41

36,000,000 0.62

84,000,000 1.45

6,000,000 0.10

18,000,000 0.31

- -

12,000,000 0.21

- -

6,000,000 0.10

3,000,000 0.05

1,800,000 0.03

- -

24,000,000 0.41

90,000,000 1.55

60,000,000 1.04

6,000,000 0.10

499,800,000 8.63

15,000,000 0.26

2,400,000 0.04

-

17,400,000 0.30

(518,980,800) (8.96)

-

(518,980,800) (8.96)

E-commerces

Other Expenses

Total Other Expenses

DEPRECIATION EXPENSES

Depreciation Expenses - Computers

Depreciation Expenses - Office Equipment

Depreciation Expenses - Vehicles

Total DEPRECIATION EXPENSES

Corporate Taxes

Net Profit (Loss)

Earning Before Income Tax

Bank Charges

Provision for Bad Debt

Legal and Professional Fee

Sales & Marketing Expenses

Entertainment

Insurance

Repair and Maintenance

Uniform Laundry

Utility Charges

Duty Stamp

License and Permit

Employee Relation

Training and Employee Development

Printing and Stationary

Telephone and Fax

Computer Accesories

Rental

Courier And Postage

Office Supplies

Local Transportation

Travel Expenses - Domestic

Travel Expenses - International

Medical Insurance

Other Employee Benefit

Total Payroll & Related Expense

Other Expenses

Payroll & Related Expense

Salary & Wages

Bonus / THRJamsostek Co. Share

Pph 21

Total Base Management Fee from Hotel

Royalty Fee

Total Incentive Magmnt Fee from Hotel

Total OPERATING REVENUE

Royalty Fee

Alfat Hotel 11 - 12 @ 250.000.000

OPERATING REVENUE

Technical Fee

Alfa Hotel 1 - 5 @ 150.000.000

Alfa Hotel 6 - 10 @ 250.000.000

TOTAL %DESCRIPTION

P&L Alfa Hospitality Asia (2nd Year)

No of Hotels 20

Technical Fee 1,25 B

Royalty 7,5 B

Total Revenue 8,7 B

Profit 1,85 B

Total 20 Hotels is the Break Even Point for AHA ! – anything above 20 will goes directly to profit !

No of Hotels

-                          

-                          

-                          

1,250,000,000      

1,250,000,000

-                          

7,546,000,000      

-                          

7,546,000,000

8,796,000,000

4,242,000,000      353,500,000         

207,433,800         

836,447,000         

152,400,000         

-                          

6,370,958,880

18,000,000           

24,000,000           

12,000,000           

24,000,000           

18,000,000           

18,000,000           

3,000,000              

12,000,000           

24,000,000           

36,000,000           

84,000,000           

6,000,000              

18,000,000           

-                          

12,000,000           

-                          

6,000,000              

3,000,000              

1,800,000              

-                          

24,000,000           

90,000,000           

60,000,000           

6,000,000              

549,780,000

15,000,000           

2,400,000              

-                          

17,400,000

1,857,861,120

-                          

1,857,861,120

Earning Before Income Tax

Corporate Taxes

Net Profit (Loss)

Alfa Hotel 13 - 15 @ 250.000.000

Depreciation Expenses - Vehicles

Total DEPRECIATION EXPENSES

E-commerces

Other Expenses

Total Other Expenses

DEPRECIATION EXPENSES

Depreciation Expenses - Computers

Depreciation Expenses - Office Equipment

Utility Charges

Duty Stamp

Bank Charges

Provision for Bad Debt

Legal and Professional Fee

Sales & Marketing Expenses

Travel Expenses - International

License and Permit

Entertainment

Insurance

Repair and Maintenance

Uniform Laundry

Computer Accesories

Rental

Courier And Postage

Office Supplies

Local Transportation

Travel Expenses - Domestic

Total Payroll & Related Expense

Other Expenses

Employee Relation

Training and Employee Development

Printing and Stationary

Telephone and Fax

Salary & Wages

Bonus / THRJamsostek Co. Share

Pph 21

Medical  Insurance

Other Employee Benefit

Royalty Fee

Total Incentive Magmnt Fee from Hotel

Total OPERATING REVENUE

Payroll & Related Expense

Alfa Hotel 1 - 5 @ 150.000.000

Alfa Hotel 6 - 10 @ 250.000.000

Alfa Hotel 11 - 12 @ 250.000.000

Alfa Hotel 15 - 20 @ 250.000.000

Total Base Management Fee from Hotel

Royalty Fee

TOTAL

OPERATING REVENUE

Technical Fee

DESCRIPTION

Expansion PlanBali

Jakarta

Tangerang

Bekasi

Surabaya

Malang

Jogja

Samarinda

Balikpapan

Lampung

Palembang

Padang

Medan

50 Hotels within 5 years ?Why not !

Utilize Alfa’s Partner Database

WORKING TOGETHER WITH BUSINESS OWNER TO DEVELOP THE BUSINESS AND

ASSETS OF THE COMPANY

INTRAPRENEUR EMPLOYEMENT

President / CEO Vice President / COO

Permanent Employment Monthly Salary 100 million net of

tax Share 6 % of Monthly Gross

Revenue Yearly THR Bonus Yearly Travelling Budget U$

10,000 Full coverage Family Health

Insurance Pension Plan Laundry 5pcs per day Company Car & Driver, Premium

SUV (BMW X5 or equivalent)

Permanent Employment Monthly Salary 50 million net of

tax Share 4 % of Monthly Gross

Revenue Yearly THR Bonus Yearly Travelling Budget U$ 8,000 Full coverage Family Health

Insurance Pension Plan Laundry 5pcs per day Company Car, Premium Japanese

SUV (Toyota Harrier or equivalent)

Executive Benefit, PT Alfa Hospitality Asia !