Embassy Suites OAC

Friday, December 9, 2011

Houston, Texas 1
 Agenda

• Brand Performance 2011

• Brand Marketing Update

• Brand Performance Support Update

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 Brand Performance 2011

Today‟s Discussion
• Top Line Performance
• Market Share
• Past Month Performance
• Demand Change
• Loyalty
• Consistency In Guest Satisfaction
• Mix of Sales

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Built to Perform

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Market Share Dominance

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Past 20 Month Performance

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Demand Change

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Weekday Vs. Weekend

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Pace Report - % Point Change to 2010

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Loyalty: 12 Month Moving Average (Previous)

* Loyalty is defined as the percentage of guests who rate Overall Experience, Return Intent, AND Recommend a 9 or 10 on
a 10 point scale.

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Loyalty: 12 Month Moving Average (Current)

* Loyalty is defined as the percentage of guests who rate Overall Experience, Return Intent, AND Recommend a 9 or 10 on
a 10 point scale.

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Loyalty % Change: Monthly Year-Over Year (Previous)

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Loyalty % Change: Monthly Year-Over Year (Current)

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Consistency In Guest Satisfaction
J.D Powers and Associates, Customer Satisfaction Study (2009)

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Upper Upscale Consistency and
Overall Satisfaction (2009 – 2011)

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FMS SRP Mix of Sales Year to Date, October 2011
Embassy Suites USA Comparable

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FMS SRP Mix of Sales Year to Date, October 2011
Embassy Suites USA Comparable

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FMS SRP Mix of Sales Year to Date, October 2011
Embassy Suites USA Comparable

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 Brand Marketing Update

Today‟s Discussion

2011 Update:

• TV

• 2011 More Reasons to Stay Campaign

• Promotions
•
• Digital Marketing
•
• Brand Public Relations

2012 – The Year of MORE

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2011 TV

 Spacious Two-Room Suite

 Free Breakfast
 Comp‟d Manager‟s Reception

Launched March 6, 2011

• „Owned‟ Sunday‟s in top feeder markets including Washington, D.C., Los
Angeles, Chicago, Dallas/Fort Worth, New York, Atlanta, San Francisco, Memphis,
Houston, and Phoenix.
• Sunday strategy allowed for exposure to consumers in a leisure mind-set &
helped top of mind awareness immediately prior to the start of the work week for
business travel decisions.
• Featured on more than 54,000 United Airlines and American Airlines flights in
their in-flight programming lineup in April, and in May, the spots will appear on
the CNN Airport Network in 45 airports nationwide.

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Online Display Ads
Embassy Suites Waikiki Beach Walk

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J.D. Power Advertising

Campaign to thank our guests for

ranking Embassy Suites Hotels
“Highest in Guest Satisfaction Among
Upper Upscale Hotel Chains” in the
2011 J.D. Power and Associates survey.

Print ads running this fall in:

• USA Today
• Wall Street Journal
• Food & Wine
• Money
• Golf Digest

Online placements:
• Embassysuites.com homepage
• Email to past guests
• Suite Hotel Deals weekly e-
newsletter

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More Reasons To Stay Print Ads
Embassy Suites Waikiki Beach Walk

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2011 Print Advertising

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Embassy Ad Testing
Embassy Suites Waikiki Beach Walk
Augmented Interviews to the on-going US Brand and
Method
Communications Tracking Study

• Must have stayed at a hotel 2+ times in past year

Qualifying Criteria • Must have stayed at Embassy Suites or a hotel in
Embassy Suites’ competitive set in the past year

• N=1600 Total Interviews

• 800 National interviews
• 800 Feeder Market interviews (must resides in
Sample Size
Washington DC, New York, Memphis, Atlanta,
Dallas, Houston, San Francisco, Los Angeles,
Phoenix, or Chicago)

Ability to read results by key target segments:

• Seasoned Socializers
Sub-Groups
• Double Lifers
As determined by Embassy Suites Segmentation algorithm

Interviews were conducted throughout the month of July,

Interview Timing
specifically from 7/13/11 – 7/29/11

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Embassy Ad Testing
Travelers were exposed to representative images of the campaigns creative to trigger any
in-market recall Embassy Suites Waikiki Beach Walk
TV Print Online

NOTE: Purpose of the collages is not to show all executions within campaign, but rather a representative group to help trigger
people’s memories of potential recall of the look/feel of the campaign prior to taking the survey
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Embassy Ad Testing
Embassy Suites Waikiki Beach Walk
Reach of the campaign is solid particularly in Feeder Markets; Nationally, Seasoned
Socializers are more likely to have seen it

Recognition of the Embassy Suites Campaign Overall Recognition of Other HWW Campaigns Tracked:
HGI (National Broad Travelers) = 16%
Do you remembers seeing this advertising recently? HGI (Among Target) = 28%
(shown TV, print, online) Hilton (National Broad Travelers) = 22%

53% 49% 49%

40% 44%
36%

Total Seasoned Double Total Seasoned Double

National Socializers Lifers Feeder Socializers Lifers
(National) (National) Markets (Feeder) (Feeder)

(A) (SS) (DL) (B) (SS) (DL)

Base: Total National Sample (800) - Seasoned Socializers (98), Double Lifers (126); Total Feeder Markets (800) - Seasoned Socializers (96), Double
Lifers (134)
QC2 Do you remember seeing this advertising recently?
A/B Signifies statistical significance at 95% confidence between National and Feeder Market sample; SS/DL Signifies statistical significance at 95%
confidence between Seasoned Socializers and Double Lifers within either National sample or Feeder Market sample
No statistical significance between SS and DL in either the National or Feeder markets, or between the two 27
2011
*
Out of Home

• CNN Airport Network

30 + markets
45 locations / ~ 2,000 screens
560 x :30 spots & 160 Billboard Sponsorships/
15mm+ impressions

• Captivate Elevator Network

19 markets (13 of top 15)
815 locations / 7,826 screens
2,400 spots / 28mm+ impressions

• Wall Street Journal Office Network

15 markets (10 of top 10)
765 locations / 1,260 screens
4,500 spots / 18.4mm impressions

• In-Flight Entertainment – United & American Airlines

54,600+ flights
244,455 total spots (4x per UA flight & 5x per AA flight)
22.7mm+ impressions

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 Promotions 2011

Cruise Sweepstakes More More Sweepstakes Shopping Spree Sweepstakes

Promotion Dates: Promotion Dates: Promotion Dates:

12/13/2010 – 2/28/2011 March 15, 2011 - August 31, 2011 October 18, 2011 – January 31, 2012

Promotion Results: Embassy Suites Hotels most Promotion Results to Date:

• Room Revenue: $3,392,083 successful promotion to date!
• ADR: $154 • Room Revenue: $12,637,824
• Stays: 13,267 • ADR: $167
• Room Nights: 22,077 • Stays: 41,738
• Room Nights: 75,645
• ADR: $135
• HHonors Enrollments: 7,327
• System-wide Revenue: $3.8M

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Promotion Results

Year to date our three seasonal

promotion campaigns have
driven:

• $20mm in revenue
• 122,00 room nights
• $163.93 ADR
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Social Media Strategy
Brand Objective:
• Brand engagement
• Brand awareness
• Guest feedback
• Guest dialog
• Increase advocacy

• 130,435+ Facebook fans

• 2011 Embassy Suites-Stakes promotion
• Daily monitoring & management

• 5,814 followers
• Daily monitoring and management of all
direct messages and brand mentions

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Consumer Public Relations
• On track to reach more than 200 million earned media impressions by year-end.

• Cultivates strong relationships with key national and regional travel and lifestyle media,
including travel and “mommy” bloggers with large spheres of influence.

• Amplifies the marketing message that guests can get “More” at Embassy Suites.

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Development & Trade Public Relations
• Helps tell the ES business story, flexible “kit of parts” development strategy and pipeline
trends such as urban development, adaptive reuse, etc.

• Cultivates strong relationships with key traditional and online media to ensure relevant,
positive media coverage.

• Strengthens the brand‟s reputation and increases visibility among target audiences,
including owners, potential owners and key third party influencers.

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Brand Integrations

Ellen DeGeneres Show integration:

The episode aired on April 20th and May 17th

• Total on air exposure: 10 minutes
• Total viewer impressions: 9 million

Ellen has proven to be a successful partner for us. Her audience is nearly 80%
female between the ages of 18 and 34 and 70% of all family travel booked online
is booked by moms ages 24 to 45.

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Awkward Family Photos Partnership:

Awkward Family Vacation Photo Contest - The winner with the most “awkward”
photo received a 14 night stay at one of our resort properties and $15,000 cash
for travel expenses.

• Over 1,000 photo submissions

• More than 50,000 votes
• 50 million media impressions

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embassysuites.com

YTD Results Through Q3:

Visits: 23,318,370 Revenue: $480,392,701 ADR: $137.87

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 Global Web Re-Architecture Program

• Last month, HHW

launched a beta test
of the new Search &
Reservations engine

• In 2011, Hilton
Worldwide will
overhaul all of its
consumer-facing
brand websites and
hotel/destination
websites.

• The program will

significantly upgrade
our online branding
and e-commerce
capabilities and offer
best-in-class user
experience on all
brand websites.

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Out of Home Concepts

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 Brand Performance Support
Update

Today‟s Discussion

• Brand Reinvestment

• ISO 9001 & 14001 Certification

• Customer Promise
•
• First Contact Resolution
•
• Digital Newspaper Initiative

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 Brand Reinvestment - 2012

Credit to fees - $20k

Same “gates” as 2011

Initiatives: HHonors Experience, Breakfast Refresh,

Phase 3 Evening Reception, HSIA Bandwidth,
Imagery

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ISO 9001 & 14001 Certification

What is ISO?
- World’s largest developer/publisher – intl. standards
- Most well known standards body in the world - 162 countries

How HWW Achieved Certification

- Sustainability/Quality built into performance model
- Met ISO standards - brand standards, measurement, analyze, improve
- 9001 = quality management; 14001 = environmental management
- External verification – done annually
- One of largest volume certifications

What it means
- Better than LEED – ongoing metrics
- Worldwide recognition of company’s commitment – sustainability & satisfaction
- Huge competitive advantage – no other hotel company with this certification
- Strong revenue potential & share shift – key accounts

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Customer Promise

30.7
72.6 27.4
69.3

% Guests with problems % Reported

% Guests with no problems
% Unreported

6.1 19.6 74.9

0% 25% 50% 75% 100%

% Handling exceeded % Handling met % Handling below

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Customer Promise

Room/Suite cleanliness/housekeeping 4.7

Heating/cooling systems 4.6
Noise 3.9
Working order of bathroom 3.9
Staf f (service, attitude, etc.) 2.9
Check-In 2.8
Room smell 2.8

% of Guests
Internet connectivity 2.6
Billing/Rates 2.5
Hotel/room maintenance 2.5
Room location/type 2.4
Complimentary breakf ast/manager's … 2.2
Reservation accuracy 1.8
Parking 1.7
Restaurant/room service 1.5
HHonors benef its 0.4
Other problem 11.1
0 2 4 6 8 10 12 14

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Customer Promise

• Replaces 100% Satisfaction Guarantee

• Customer Facing

• Tied into Make A Difference

• Promise Statement

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 First Contact Resolution
Pilot Test 11/7/11 – 12/31/11

Current: Hotel has 48 hours to resolve

• GA intervention fee of $100-200
• Ave. time to close file = 7-16 days
• 25% of problems are resolved during stay

Pilot: Guest Assistance complaints (regarding service or product) issues will be

resolved immediately with guest
• Intervention fees waived, hotels billed for resolution
• Non service/product complaints – sent to hotels

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 First Contact Resolution
Why the Pilot?

Purpose: Improve Guest Satisfaction and Loyalty

• Validate research
• Efficiency in the process
• Incent hotels to resolve
• Faster Resolution – Return intent & loyalty

Measurements for success:

• 50% reduction in avg. # of days to close a file
• No increase in the avg. compensation cost (per file)
• 5 point increase in Overall Satisfaction for GA Surveys
• 5 point increase in GA Resolution Score
• Decrease avg. number of interactions to resolve

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Digital Newspaper Initiative

• Complimentary electronic news content and a digital entertainment library.

• Domestic, US, Canada: target deployment Q2 2012.

• International: begin in 2013.

Hilton Worldwide will be the

first hotel company ever
to offer a dedicated
digital news portal.

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Digital Newspaper Initiative

• New HHonors Benefit

• Only HHonors members can access the digital library.

• The amount of “unlocked” premium content corresponds to

the Guest‟s HHonors tier.

• Guests are given a certain amount library credits annually

based on their HHonors tier.

• Premium content may also be purchased by members.

• Local news from Guest‟s home; news related to hotel area;

national/international news.

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Digital Newspaper Initiative

Cost Savings Model (based on 500-room Hilton)

39% annual cost savings in year 1 of $7,135

Current Spend (Annually)

$18,200 Current newspaper spend
100% of occupied rooms, 20¢ each

Digital Newspaper Costs (Annually)

$2,047 Cost of printed USA TODAY newspapers

$5,733 Cost of printed The Wall Street Journal newspapers

$3,500 Cost of USA TODAY Digital Library

$11,065 Total costs for digital newspaper

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