S T R A T E G Y A T A G L A N C E/

2016 STR ATEGIC OBJECTIVES PERFORMANCE IN THE YEAR KEY PERFORMANCE INDICATORS RISKS LINKED TO STR ATEGY LOOKING FORWARD

1Delivering stabilised annual return on shareholder capital

Following the restructuring of several long-term financing facilities at favourable conditions, returned £42.2 million in excess cash reserves to shareholders as a special dividend in addition to ordinary dividend

24.8%return on capital employed (basedon owned hotels in operation)

£1.21dividend per share

• The Group’s borrowings

• Foreign exchange rate fluctuations

Maintain progressivedividend policy

2Maintaining a high EBITDA margin

Our EBITDA margin remained at a high level

Introduced centralised procurement and time and attendance systems

34.5%reported EBITDA margin (EBITDA/ total revenue)

• Fixed operating expenses

• Hotel industry risks

Maintain our high EBITDA margin by improving operationalperformance, tight cost controls, further implementation of the centralised procurement andtime and attendance systems,and further developing our financial structure and asset management initiatives

3Improving our guest experience through consistent service delivery and product enhancements

Continued investment in operational and management training programmes across all our regions

Achieved record levels of guest satisfaction and service performance scores

Product investment and renovations

8.39 overall guest satisfaction score (on a scale of 1–10)

8.71serviceperformance score(on a scale of 1–10)

• Employee turnover

• Capital required to maintain product standards

Continue to grow employee engagement, guest satisfaction and loyalty by consistent delivery of exceptional customer service, significant product enhancements and investmentin our people development activities

4Driving growth by expanding our hotel portfolio through a variety of business models

Opened Park Plaza Nuremberg, completed the 155-room extension at Park Plaza London Riverbank, and had the soft-opening of Park Plaza London Waterloo

1,000+on target to add 1,000+ new rooms in 2016/2017

• Development projects

• The Group’s borrowings

Focus on driving growth through construction projects andextending our development pipeline

5Improving our overall performance through innovative revenue generation and marketing initiatives

Approximately 50% of our owned, co-owned and leased hotels outperformed their competitive sets

Increased focus on driving business directly through our own channels, with several successes booked such as the introduction of special rates for members of the guest loyalty programme

• Market share

• Business generated through direct channels

• Hotel industry risks

• Capital required to maintain product standards

• Market disruptors

• Information technologyand systems

Actively look for opportunities to improve our revenue generation through analysis of demand patterns and customerbehaviour, new distribution channels, digital marketing, customer engagement andcollaboration with third parties

6Leveraging our partnership with Carlson Hotels to further grow revenues

Entered into several new global digital marketing agreements

Focused on driving loyalty programme member engagement through compelling offers and propositions

Participation in all relevant Carlson Hotels’ sales, marketing and distribution initiatives

• Cost-effective distributionof our products

• Business generated through brand and direct channels, and loyalty programmes

• The Park Plaza® brand andreservation system

Embrace all marketing, sales,distribution and e-commercechannels and programmesavailable through Carlson Hotels’global network and increasecustomer loyalty andengagement. Benefit frome-commerce developments byCarlson Hotels with Sabre asannounced in early 2017

S T R A T E G I C R E P O R T

2016 STR ATEGIC OBJECTIVES PERFORMANCE IN THE YEAR KEY PERFORMANCE INDICATORS RISKS LINKED TO STR ATEGY LOOKING FORWARD

1Delivering stabilised annual return on shareholder capital

Following the restructuring of several long-term financing facilities at favourable conditions, returned £42.2 million in excess cash reserves to shareholders as a special dividend in addition to ordinary dividend

24.8% return on capital employed (based on owned hotels in operation)

£1.21dividend per share

• The Group’s borrowings

• Foreign exchange ratefluctuations

Maintain progressive dividend policy

2Maintaining a highEBITDA margin

Our EBITDA margin remained at a high level

Introduced centralised procurement and timeand attendance systems

34.5%reported EBITDA margin (EBITDA/ total revenue)

• Fixed operating expenses

• Hotel industry risks

Maintain our high EBITDA margin by improving operational performance, tight cost controls, further implementation of the centralised procurement and time and attendance systems, and further developing our financial structure and asset management initiatives

3Improving our guestexperience throughconsistent service deliveryand product enhancements

Continued investment in operational and managementtraining programmes across all our regions

Achieved record levels of guest satisfaction and service performance scores

Product investment and renovations

8.39 overall guest satisfaction score (on a scale of 1–10)

8.71service performance score (on a scale of 1–10)

• Employee turnover

• Capital required to maintainproduct standards

Continue to grow employee engagement, guest satisfaction and loyalty by consistent delivery of exceptional customer service, significant product enhancements and investment in our people development activities

4Driving growth by expanding ourhotel portfoliothrough a variety of business models

Opened Park Plaza Nuremberg, completed the 155-room extension at Park Plaza London Riverbank, and had the soft-opening of Park Plaza London Waterloo

1,000+ on target to add 1,000+ new rooms in 2016/2017

• Development projects

• The Group’s borrowings

Focus on driving growth through construction projects and extending our development pipeline

5Improving our overall performance throughinnovative revenue generation and marketing initiatives

Approximately 50% of our owned, co-owned and leased hotels outperformed their competitive sets

Increased focus on driving business directly through our own channels, with several successes booked such as the introduction of special rates for members of the guest loyalty programme

• Market share

• Business generated throughdirect channels

• Hotel industry risks

• Capital required to maintainproduct standards

• Market disruptors

• Information technologyand systems

Actively look for opportunities to improve our revenue generation through analysis of demand patterns and customer behaviour, new distribution channels, digital marketing, customer engagement and collaboration with third parties

6Leveraging ourpartnership withCarlson Hotels to further grow revenues

Entered into several new global digital marketing agreements

Focused on driving loyalty programme member engagementthrough compelling offers and propositions

Participation in all relevant Carlson Hotels’ sales, marketing and distribution initiatives

• Cost-effective distributionof our products

• Business generated throughbrand and direct channels, andloyalty programmes

• The Park Plaza® brand andreservation system

Embrace all marketing, sales, distribution and e-commerce channels and programmes available through Carlson Hotels’ global network and increase customer loyalty and engagement. Benefit from e-commerce developments byCarlson Hotels with Sabre asannounced in early 2017

S T R A T E G Y A T A G L A N C E