Filippo Sona Director | Head of Hotels MENA Colliers International 64,775 UNITS 15,997 NEW UNITS 20-30% BRANDED Source: Colliers International IN A NUTSHELL (OCT 2015) 11 YEARS PAYBACK 15-17% IRR US$ k/Key Cost 11 DAYS AVR STAY 60-65% GOP 78.4% OCC APART HOTELSCORPORATE HOUSING BRANDED RESIDENCES Serviced Apartments 7-9 DAYS30-90 DAYS6-7 DAYS Future Trends Increase in duplexes & maid's rooms to attract GCC families Efficient room designs loft inspired Grab & Go F&B options & mini- marts Retail connected to properties to increase appeal Moving to suburban areas but offer shuttles to city centre and access packages to affiliated hotel Source: Colliers International REVENUE MIX DYNAMICS F&B ANCILLARY ROOMS % 4 - 8% 2 4% BUSINESS MODEL F&B ANCILLARY ROOMS 80-85% 11-14% 4- 6% GOP 65% 60% Supply NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED SUPPLY Supply NUMBER OF KEYS & SHARE OF INTERNATIONALLY BRANDED FUTURE SUPPLY NO. OF PROPERTIES & AVERAGE KEYS Source: Colliers International SERVICED APARTMENT UNIT SIZE AVERAGE IN m Demand Segmentation GCC SERVICED APARTMENT DEMAND SEGMENTATION (2012) Source: Colliers International Demand Segmentation GCC SERVICED APARTMENT DEMAND SEGMENTATION (2015) Source: Colliers International Performance Source: Colliers International Branded Residences BRANDED RESIDENCES PREMIUM Over standard residential units 10-20% premium 21-40% premium 41+% premium Source: Colliers International PRICE PREMIUM HIGH PREMIUM MEDIUM PREMIUM LOW PREMIUM Identify four categories of key factors that drive premium 1. Situation and Overall Appeal 2. Facilities and Amenities 3. Design and Specifications 4. Branding Weight the importance of each category based on: Key factors commonly driving premiums for condo developments (based on white papers and primary/secondary research) Local residential experts opinions % 10% 15% 30% Identify sub-factors for each of the four categories (drivers of premium) Score all sub- factors with the following scoring: Low: 0 points Mid: 10 points High: 20 points Prime: 25 points 34 Convert final score into premium likely to be achieved. 5 How to calculate premium Guest Experience Index ONLINE RATING: SERVICED APARTMENT BY TYPE OF BRANDING (AUG 2015) SUMMARY: KEY FINDINGS ONLINE RATINGS (AUG 2015) Source: Olery, Colliers International Thank You