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Frasers Hospitality Pte Ltd

Balridge ProgrammeThe 25thAnnual Quest for Excellence Conference

Baltimore Marriott Waterfront Hotel

08 April 2013

•What is the reason for existence?• Finding a niche market• Serviced Residences versus Hotel

Blue Ocean Strategy

Price

Lengthof Stay

Size ofApartment

Service

Small Large

Low

High High

Low

Budget

Service

Apartments

Gold Standard

Serviced

Apartments

4 Star

Boutique

Hotel

Residence

Budget

Hotel

5 Star

Luxury

Hotel

4 Star

Boutique

Hotel

Budget

Apartment

For Lease

Luxury

Apartments

For Lease

Moderate

Apartments

for Lease

Carving a Market NicheImportance of defining the Brand Offering and

Brand Differentiation

Carving a Market Niche

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Vision – to align the company in one direction

VISION

Frasers Hospitality Pte Ltd aims

to be the premier global leader in

the extended stay market through

our commitment to continuous

innovation in answering the

unique needs of every customer.

Core ValuesOur vision: Frasers aims to be the premier global leader in the extended stay market through our commitment to

continuous innovation in answering the unique needs of every customer.

The Fraser Difference:

• Fraser Touch

• Fraser Care

• Fraser Home

• Fraser Friends

• Fraser Connect

• Fraser Kids’ Club

• The Retreat

• Fraser Spa

Creating Fraser moments – TEAMWORK: We will

play as a team to share the Fraser difference with

every customer.

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r Go

ld S

tan

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Create “WoW” moments – INNOVATIVENESS:

We will continuously seek new and better ways to doing

things to make every customer feel special

Exceed expectations – COMMITMENT:

We will be committed to display empathy, enthusiasm and energy to

exceed the expectations of every customer.

Meet needs - OWNERSHIP:

We will be responsible to anticipate and answer the needs of every customer.

Respond to needs – RESPONSIVENESS:

We will respond and react promptly in all our interactions with every customer.

Our Service Steps:

Welcome the customers · Use their names ·

Take care of their needs · Thank them · Invite them back

Our Service Recovery Steps:

Listen · Apologise and show empathy ·

Solve the problem together with guest · Thank the guest

Set up structures for growth with proper Regional Hub Roles & Responsibilities

Putting Structures In Place For Grow

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Functional Organization StructureMr Choe Peng Sum

Chief Executive Officer

Chief Investment Officer

Chief Operating Officer

Chief Financial Officer

Business Development

Group Director, Sales & Marketing

Regional Operations

Technical ServicesInformation Technology

Human Resource & Training

Accounting & Finance

InvestmentsGlobal Sales & Marketing

Pre-Opening Design Budgeting

Listing and Assets Management

Branding & Communications

Service and Operation Audit

Mechanical & Engineering

Legal

Global Reservations

Corporate Secretariat

Revenue Management

Financial Audit

Organization Chart – Regional Hubs

Europe/Middle East NorthAsia Asia Pacific

Reportingto

Chief Operating Officer Europe & Middle East

Regional Director North Asia

Regional Director Asia Pacific

Hub Location

London Beijing Singapore Sydney

Coverage Europe• UK – London, Scotland• Europe – Paris• Eastern Europe –Budapest

• Turkey – Istanbul

Middle East• Dubai• Bahrain• Doha• Oman• Abu Dhabi• Saudi Arabia – Al Riyadh, Al Khobar

• China – Beijing,Changzhou, Chengdu, Chongqing, Dalian, Guangzhou, Hangzhou, Nanjing, Ningbo, Shenzhen, Shanghai, Suzhou, Tianjin, Wuhan, Wuxi

• Hong Kong• Taiwan• Japan – Tokyo, Osaka• Korea – Seoul

• Singapore• Malaysia – KualaLumpur

• Indonesia – Jakarta• Philippines – Manila• Thailand – Bangkok• Vietnam – Hanoi, Ho Chi Minh

• Myanmar –Yangon• India – Bangalore, Chennai, Hyderabad, New Delhi

• Brisbane• Melbourne• Perth• Sydney

Regional Operations Hub Structure

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Define Growth Strategy

ManagementManagementInvestmentInvestment LeasingLeasing

Development Upside & Ongoing Yield

Development Upside & Ongoing Yield

Highly Scalable Fee Income

Highly Scalable Fee Income

Operating SpreadOperating Spread

SCALEPresences in 39 cities, 74

properties, 12,549 units and still growing

BRAND PORTFOLIO5-star and 4-star Serviced Apartments and Hotel

Residences

FRASER LOYALTY PROGRAM

Drive membership to bring in revenue

WEB / MOBILE /SYSTEM FUNDINGDeploy funds to build strong sales system

SALES FORCEGrow sales headcount professional to increase

accounts

REVENUE MANAGEMENT

Active revenue management to optimize yields

RESERVATION SYSTEMS

Centralized reservation system and brand website

HR & TRAININGTraining and human

resource management as a critical success factor

Branding, Public Relations, External & Internal Marketing based on Branding, Vision & Core Values

Branding and Public Relations

Branding and Public Relations

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Monitor and measure targets & performance based on

Balanced Score Card concept

Targets and Performance Measurement

Balanced Score Card Approach

Profit Score Card

• Key Performance Indicatorsbased on Earnings before Interest & Tax (EBIT) &Compounded Annual GrowthRate (CAGR)

• KPIs set on Apartment Growth(CAGR)

• KPIs set on Profit after Tax(PAT)

• Return on Investment (ROI)

0

1

2

3

4

5

6

Series 1

Series 2

Series 3

0

2

4

6

8

10

12

14

Series 3

Series 2

Series 1

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Profit Measurement

• Monthly Financial Flash• Monthly STR Global• Monthly Market Segmentation Report

• Monthly Performance Review•Yearly Budget Review•Yearly Market Segment• Financial Review Audit

0

2

4

6

8

10

12

14

Series 3

Series 2

Series 1

Sales

1st Qtr

2nd

Qtr

3rd Qtr

4th Qtr

• Monthly Brand Karma scores• Monthly Booking.com scores• Monthly Tripadvisor scores• Guest Feedback•Yearly Corporate Bookers Survey

Customer Score Card

Customer Score Card – Booking.com

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Customer Score Card –Tripadvisor.com

Customer Score Card –Yearly Corporate Bookers Survey

What is your overall rating of Frasers products?

• Mystery guest shoppers before /after sales

• Operations Audit

Customer Centric Incentives

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Customer Centric Incentives

Hotel Information

System (HIS) / Hotel

Management System (HMS)

Reservations, Billing,

Accounts Receivables, Receipting,

etc.

Hotel Information

System (HIS) / Hotel

Management System (HMS)

Reservations, Billing,

Accounts Receivables, Receipting,

etc.

CRM

Data Mining, Electronic

Direct Mail, E-Blast

CRM

Data Mining, Electronic

Direct Mail, E-Blast

SynxisBooking Engine

Property Local Sales,

Hub & Cluster Support,

Global RFP, Fraser World

E-Genesis

Reservation confirmation, Thank-you

email

E-Genesis

Reservation confirmation, Thank-you

email

Guests

Fraser Website OTA

Global Distribution Systems

Internet

Industry Benchmarking Guests’ Feedback

Comp set benchmarking

In-house Guest Critique

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AFT

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SA

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IEW

Corporate

Internal Business Process

• I-Trax System / Works Order System• FCS Interface System PABX to HIS• HMS – Ipad Check-In System•TMI – Reporting System• CRM – Customer RelationsManagement system

• Intranet

Systems Requirements

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Human Capital

• Putting people first• ROCIT training•Voices of Frasians•Vision / Core Values• Skills based training eg Dale Carnegie, IGE• Fraser Day•Turnover percentage• Percentage of long service staff• Internal marketing

Human Capital

Training and development, continuous learning, empowerment

Human Capital

31st March – Fraser’s global family celebrates Fraser Day

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FS SingaporeFP Singapore

Existing Serviced Apartments

2 properties in 1 city with 400 apartments

Footprint• SINGAPORE

FS Glasgow, ScotlandFS Edinburgh, Scotland

FR BudapestFS Kensington, London

FP Canary Wharf, LondonFP Queensgate, London

FR Prince of Wales Terrace, London

FR Blackfriars, LondonFR Monument, London

FR City, LondonFR Bishopsgate, London

FS Harmonie, Paris La DefeńseLe Claridge, Champs-Elyśees Paris

New Serviced Apartments to be opened soonExisting Serviced Apartments

FR CBD East BeijingFS CBD Beijing

Modena Heping, TianjinFP Tianjin

FP Istanbul

13,069 apartments, 77 properties in 41 cities by 2016• BAHRAIN

• BANGALORE

• BANGKOK

• BEIJING • BUDAPEST

• CHANGZHOU

• CHENGDU

• CHENNAI

• DOHA • DUBAI

• EDINBURGH

• FRANKFURT

• GLASGOW• GUANGZHOU

• GURGAON

• HANOI

• HO CHI MINH• HONG KONG

• ISTANBUL

• JAKARTA

• JOHOR BAHRU• KHOBAR

• KUALA LUMPUR

• LONDON

• MANILA • MELBOURNE

• NANJING

• NEW DELHI

• OSAKA• PARIS

• PERTH

• RIYADH

• SEOUL • SHANGHAI

• SHENZHEN

• SINGAPORE

• SUZHOU

• SYDNEY• TIANJIN

• WUHAN

• WUXI

FS Insadong SeoulFP Central SeoulFP Namdaemun

FR Nankai Osaka

FS Top Glory ShanghaiFR ShanghaiModena Putuo ShanghaiCapri SanlinModena Pudong

Modena Wuhan

FS ChengduFR Chengdu

FS GuangzhouModena Guangzhou FP Shekou Shenzhen

FS Hong Kong

FS Nanjing

FS Hanoi

Capri HCMCFS SukhumvitPhachara Suites

FP Kuala LumpurFR Kuala Lumpur

FR AmpangCapri Kuala Lumpur

FR Puteri HarbourCapri Johor Bahru

Capri, Frankfurt

Modena ChangzhouModena WuxiFS Wuxi

FS New DelhiFR Chennai

FS BangaloreFP Gurgaon

FS River Valley SingaporeFP Robertson Walk SingaporeFR Orchard SingaporeFP Fusionopolis SingaporeCapri Changi City Singapore

FR Sudirman JakartaFP Setiabudi JakartaFS Kuningan JakartaFR Menteng Jakarta

FS BahrainFS Dar Tower

FS Edafah, Al KhobarFS Edafah, Al Riyadh

FS Doha

FS DubaiFS Al Jadaf DubaiFR Al Jadaf Dubai

FR Budapest

FP Manila

FS PerthFS Sydney

FP Melbourne

Global Footprint

Thank You