Terra Hotels Strategy

A DYNAMIC DEVELOPMENT

We are accelerating our growth with the goal of ranking among the country hospitality industry

players by 2020 while strengthening our position as the world’s quality hotel operator and hotel

management. We will achieve these goals by reinforcing our presence in strategic locations in

mature markets and building leadership positions in emerging markets.

AN UNIQUE BUSINESS MODEL

Terra Hotels leverages both resort and business model that is unique in the hotel industry. Based on what we call the diff erences strategy, this features a range of hotel operating structures – owned, leased, and managed – that adapts to diff erent market segments and to each hotel’s spesifi c location. It includes a host of advantages, enabling us to better withstand economic cycles and to focus on enhancing our hotel operating skills for the bene fit of our partners.

MARKETING

Terra Hotels can absorb a full range of customer and partner needs with banners covering all market segments, from budget to luxury. Because they innovate constantly, our brands respond proactively to emerging consumer trends and expectations. By refurbishing their design and creating new product and service o erings, they provide customers with the opportunity for unique experiences. To make our brands even more attractive, we design mass media and below-the-line campaigns showcasing their bene fits.

MANAGEMENT AND FINANCE

Leveraging its expertise, sharing of best practices and pro ficiency in managing sophisticated processes and systems, Terra Hotels has developing great hotel operating skills that enable it to manage thousand rooms that are owned or managed by the Group. These skills are reflected in our operational excellence in managing hotels day to day, our ability to boost sales by extending the use of revenue management techniques and our aptitude for analyzing each hotel's performance in real time.

DESIGN AND MAINTENANCE

For this decade, Terra Hotels has designed, built, out fitted and maintained 9 hotels around the country. Our technical experts, construction managers, equipment installation teams and designers plan, build and arrange both private and public areas, coordinate building projects and out t hotels with a constant

focus on optimizing operating expenses and complying with increasingly stringent regulatory standards. At the same time, our teams integrate the latest housing, lifestyle and technology trends. As a result, our hotels can be managed more cost eff ectivelly and are more functional, livable and environmentally friendly.

DEVELOPMENT

By 2020, Terra Hotels intends to rank among the country hospitality industry. Backed by its high-quality brand and team of expert developers, the Group is constantly on the lookout for development opportunities around the world and especially in high-growth emerging markets. Terra Hotels develops its own hotels and makes its services available to its investor partners through franchise agreements and management contracts. Leveraging their extensive knowledge of local markets, our teams work closely with these partners, helping them to carry out their hotel projects and increase their revenue and earnings.