Renaissance Site - Deansgate Manchester, England

[Audio] Renaissance Site Deansgate Manchester, England Case Study Project – Group 6 Césarine Calafell, Emma Constantin, Anne-Sophie Doré, Hema Morand, Layla Reithaar, Deborah Verzella Honour Code As a student at the Ecole Hôtelière de Lausanne, I uphold and defend academic integrity, academic rigour and academic liberty as core values of higher learning. I attest, on my word of honour, that work submitted in my name is my own work, and that any ideas or materials used in support of this work which are not originally my own are cited and referenced accordingly. Initials: C.C, E.C, A-S.D, H.M, L.R, D.V Confidentiality agreement Please refer to the confidential agreement previously signed by the team. This agreement expresses the entire agreement between the parties hereto with respect to the communication, delivery and use of the Evaluation Material and shall be binding upon and ensure to the benefit of the parties hereto and their respective successors..

[Audio] Table of contents Executive Summary Property Ownership Market Overview Branding Strategy Performance review Capex Risk and Legal Analysis Exit Strategy Appendices References.

[Audio] Executive Summary This report aims to make the right decision between two potential brands, Treehouse and Courtyard, to take over the former Renaissance Hotel based in Manchester. The Renaissance was acquired by Property Alliance Group and Starwood Capital Group, which previously formed a joint venture. The hotel was closed permanently on July 15th, 2020, due to weak affluence to COVID-19, and yet, in a city that is very important economically for the UK, very dynamic and attracts multinational companies and visitors. Renaissance Hotel, a 206-bedroom hotel with a car park, a restaurant, and a neglected building - "Premier House," is located on one of the main and renowned streets in the city center of Manchester - Deansgate. The site is ideally located in an active area that will be revitalized thanks to the Redevelopment Deansgate Project with sustainable investments and implementations. We carried out an analysis of the projected performance of the Hotel in a 10-year period under the two potential brands alongside market research and detailed comparative analysis before concluding with the preferred branding option for the Hotel. The second part aims to propose new concepts identified for the ground floor and Mezzanine with CAPEX that could generate revenues and profit for the Hotel and all the associated risks. Manchester Current situation - Renaissance : Capex Investment: 2nd most influencial city in the UK, rapidly growing & becoming a business center, home for many events. The hotel needs refurbishment to meet the upper upscale criteria to retain market shares Underperformed compared to its compset: RGI of 68 Market Overview: Main risks: Branding options: Soft and/or full renovations of areas to compensate hotel's age, deteriorating conditions and customers preferences Adapted existing equipment or installed new equipment to ESG standards Implementations of diversified revenue streams: Treehouse Courtyard Ground Floor: Peruvian restaurant, Grab n Go, Coffee Corner. Mezzanine: Ballroom, Bar expansion with a dart room, karaoke room, arcade games, Fitness, staff offices, coworking space, and meeting rooms. Decreasing inflation since Oct. 2022; 2.3% April 2024; high interest rates Important growth of international visits: 55% 2014-2019 Educational & Commercial hub Political; Brexit, Russia Ukraine conflict, Pandemic Security; Cyberattacks, terrorist attacks Employment: high turnover in hospitality, scarcity 2023 vs 2024 : Hotels Metrics Upper upscale - 216 rooms Managed by SH Hotels & Resorts "Boutique" hotel seeking for unique experience stay Eco-conscious guests Strong brand identity Only 1 Treehouse in the UK; London Management Contract - risk Total Capex: 13.71% of total revenue in the 1st year (2024) £2'393'344 Green Investments + 6.6% in Occupancy -> 77.9% + 14,7% in RevPar -> £70.56 + 7.9% in ADR -> £90.61 medium; 15-30 years Total development cost (excl. VAT): £23,173,224 Upscale - 270 rooms Owned by Marriott International Biggest distributors of Marriott Business -high loyalty guest Total investment as a franchisee is: between $7 to $10 million. Initial Fee: $60'000 or $500 per room contract's duration of 10-20 years Total development cost (excl. VAT): £32,151,851 Performance Review: investments Branding Choice - Treehouse Courtyard Treehouse - Initial Scenario Led lighting in all the building VMC double flux (ventilation) Automatic regulator for the heater A/C and lighting control of the.

[Audio] Ownership model of the Barry Sternlicht Limited partnership Starwood Capital Group Property General Partner Assets Debt 1% shareholder AUMs: $115 Billions Equity Privately held by Barry Private Investors Sternlicht, Starwood Capital Group Real Estate Investment firm Limited Partners 99% shareholders potentially along other private Focus on hotels & retail sector investors and/or entities Snapshot of Starwood Global Opportunity Fund XII Funds Affiliates Management Fund Status Closed Vintage 2021 Starwood Property Trust Starwood European Real Estate Finance 7 funds, including: Asset Manager - UK Real Estate - US SH Hotels & Resorts Fund size $10 Billions Starwood Opportunity Fund Hotel brand management company Lotus Infrastructure 12 vintages, including: CA Immobilien Anlagen IRR 17.60% RDI REIT REIT - UK PE buyout - US Construction & Engineering - Austria TVPI 1.02 Starwood Global Ownership & Management Opportunity Fund XII Property Alliance Group Construction firm Treehouse Hotels SH Collection Baccarat 1 Hotels Hotel Brand Hotel Brand Hotel Brand Hotel Brand 90% 10% Joint Venture 15 properties 1 property 2 properties 4 properties Ownership Branding Options Deansgate SOF Alliance S.à.r.l Holding Starwood Capital Group Private Investment Firm SH Hotels & Resorts Deansgate SOF Alliance HotelCo Hotel brand management company Limited Real Estate Company Ownership & operation Marriott Franchisor Leasehold acquired from Urban & Civic, Hotel Brands extended to 250 years Franchise SH Collection Treehouse Hotels 1 Hotels Baccarat Renaissance Manchester Site Renaissance Manchester Site Property +40 other Courtyard Manchester brands Franchisee Treehouse Manchester Freehold Franchisee Managing contract Manchester City Council.

[Audio] Renaissance Hotel The Renaissance Hotel's location on Deansgate (Blackfriars Street), a major thoroughfare in Manchester, positioned it at a strategic point in the city's commercial and cultural landscape. The hotel's location provides guests with easy access to many of Manchester's attractions, including the Manchester Cathedral, the Royal Exchange Theatre, and various shopping districts. The Renaissance Hotel closed in July 2020 driven by a combination of the pandemic's economic impact on the hospitality industry and the evolving urban development plans for the area where the hotel was located. Property Conditions Upper Upscale Owner's Objectives Starwood Capital Group, through its subsidiary SH Hotels & Resorts, owns the Hotel in Manchester. Starwood Capital is a prominent investment fund that acquired this property to leverage its strategic location for redevelopment and to explore additional investment opportunities. The group is known for its willingness to take calculated risks in pursuit of higher returns on investment. Investment funds like Starwood Capital prioritize maximizing their internal rate of return (IRR), aiming for increased profitability rather than merely focusing on revenue generation. The owner, a reputable investment fund, is committed to revitalizing the property, demonstrating a readiness to embrace risks and maximize returns by enhancing the property's value and emphasizing profitability through contract management. Deansgate Project The Deansgate Project aims to revitalize Deansgate, a central street bustling with shops, restaurants, bars, and cultural landmarks. The project focuses on enhancing the street's functionality and appeal, with plans to improve walking, cycling, and business spaces, ensure safer night-time environments, enhance air quality, and foster regeneration. 206 keys The asset management plan consists of an evaluation and critique of Starwood Capital Group's projections for the redeveloped hotel, focusing on the potential impact of two different brand scenarios. Our goal is to assess these projections critically and then propose innovative concepts for space optimization, specifically targeting the Ground Floor and Mezzanine levels. 250 m2 restaurant and bar in the ground floor Bar and Lounge on the Mezzanine Physical Components - 2 Brands Free access to a nearby fitness center Treehouse Manchester STR chain scales of the properties No conference rooms Onsite parking (420 spots) Rooms: 224 & 9 suites 16-32 sqm & 32-65 sqm Floors: 13 floors Ground Floor – 14,400 sq.ft Upper Upscale 80% transient, 20% group Benefits from SH Hotels expertise and Starwood financing Sustainability and eco-friendly focus Destination hotels Targets guests travelling for leisure Opening soon in Silicon Valley, US. F&B Outlets: 2 Restaurants & Rooftop Traditional cuisines, South-East Asian Other components (non-asset related) Functional Rooms: 7 Conference rooms 600 sqm - up to 400 persons, screening room, press launches Wellness & Fitness: Fitness Fee Parking - additional revenue for the hotel Free Wifi First Floor – 15,875 sq.ft Courtyard STR chain scales of the properties Rooms:.

[Audio] Rental Annual Growth Market Overview - Manchester REAL ESTATE CLIMATE Jan 2023 to Jan 2024 Visitor Economy: Manchester: After having reached a peak of 11% in October 2023, inflation is going down, now lower than 4%. London + 5.10% UK Real Estate market counts for 13.28% of Manchester total Europe value. + 9.60% UK + 8.24% Both business and leisure tourism play vital roles in supporting the city-region's economy. Between 2014 and 2019, international visits grew by 55%, outpacing the national average by 39%. Conferences & events generated £826 million in 2019. International students = 20% of the total student body → £1 billion to the region's economy. Demand generators: UK's largest and fastest growing economy outside of London 3ʳᵈ best city in the world to visit (Time out Magazine 2022) 2ⁿᵈ largest creative city in EU after London in 2019. The city boasted a GVA of £1.4 bn to its economy - benefits of investment in culture and the Art centre ( The factory) attracting 850 000 people a year Low seasonality compared to certain other UK markets Around 2000 international companies UK's largest international student populations Well-connected transport network Hotspot for football fans: Manchester United & Manchester City Media and tech companies are appealing to Manchester - Google, BBC,... Seasonality fluctuates with the conferences, events, commercial and sporting activities that attract leisure and business visitors Development Projects: throughout the year. Manchester Arena Manchester Old Trafford Emirates Stadium The Lowry Museum Media City UK Manchester Convention Central Manchester Airport : 3rd Airport in UK, and extension of terminal 2 by 2025. HS2 Deansgate Project 2024 forecast Historical Supply : Historical demand : Rising demand level of 15 points of occupancy vs last year in UK Investment volume should increase Rates should cut later, but still higher than they have been for most of the previous decade, will affect the use of leverage in asset acquisitions Industrial and residential sectors would be primary targets in 2024 37,7% of independent hotels Upper Midscale (31,1%) and Economy (21,2%) Hotel Supply (2019): +1.6% CAGR Room Supply: +3.1% CAGR Future Supply: Future Demand: Continued growth of events and conferences Increase of occupancy in hotels post pandemic Manchester's economy has been experiencing robust growth, driven by sectors such as technology, finance, media, and education. This economic vitality translates into increased demand for commercial and residential real estate, leading to new developments and investments. The city's status as a business hub attracts multinational companies, startups, and co-working spaces, contributing to the demand for commercial real estate. 69% of new independent hotels Upscale and Upper Midscale hotels are opening +30,8% of future keys Hotels Pipeline in Manchester Manchester hotels snapshot Annually - 2023 ADR While COVID-19 is receding, the conflict between Russia and Ukraine has raised a higher inflation rate than previously forecasted. Energy, food, metals, and commodity prices are impacted, which affects hotels and tourism. Nevertheless, hotels have the advantage over other types of commercial real estate since they can apply prices from.

[Audio] Branding Strategy Qualitative Analysis - Treehouse Management Contract (Treehouse) STRENGTHS WEAKNESSES Description a commitment to manage a hotel based on a management contract in exchange for a fee Relatively new brand Sustainable practices are costly, require additional effort S W Length 15-30 years Great reputation: "Named amongst US News and World Report's Best Hotels in Europe, England, London, and Marylebone". Benefits of SH Hotels & Resorts expertise: managing 4 different hotel brands around the world Strong brand identity, guest experience, trendy Sustainable practices - developed a robust composting and recycling program THREATS Fee/payment OPPORTUNITIES % of total revenue + % of GOP or AGOP + per reservation/ booking fee + marketing from P&L - base fee T O Expand and conquer other markets with their trendy brand, Collaborations with eco-tourism organizations Sustainable tourism still underserved, gap between demand and supply Use of new technologies (i.e booking systems) Growing competition in their sector only 1 hotel for now, which could represent a lack of expertise Accommodation rentals Increasing regulation Source of revenue Contract fees 3-5% of total revenue + marketing/reservation fees + 8-12 of AGOP Market Trends Brands positioning Upper Upscale/Luxury Upscale DESIGN Risk for business owner medium Pros - Management Contract Average occupancy: +15.8% Average RevPar: +24.6% Average ADR: +7.7% Average occupancy: +8.2% Average RevPar: +15.3% Average ADR: +6.6% %change by year 2022-2023 The owner can have requirements and give opinion on the management, flexibility Hotel fully operated by the manager, low time consumption for the owner Manager can be chosen according to previous performance Benefit from expertise and network of the owner Overall, there is a growing demand for sustainable hotels, and there's been a surge in experiential travel post-pandemic, fostering a keen appreciation for distinctive hotels that enrich consumers' understanding of a particular place, highlighting the significance of sustainable practices in hospitality. Cons - Management Contract This differentiation allows both brands to effectively serve their respective market segments without direct Segmentation competition. Treehouse Courtyard High management fees Challenge of aligning owner and manager to reach the same objectives Channel Distribution Courtyard: As a well established brand with a strong network and loyalty program, Courtyard's guests will book rooms directly from the website. Modern Business Loyalty program members Transient: 70% Group: 30% PRICE POINT Eco-conscious guests Younger demographics seeking unique experiences Transient: 80% Group: 20% Treehouse: will need to spend money on channel distributions to be known and establish their brand --> increase the expenses Market positioning Treehouse Courtyard CAPEX - Treehouse CAPEX - Courtyard Provide guests with highly differentiated Provide guests with a Total construction cost: 11,404,108£ Total construction cost: 18,045,392£ Total development cost (excl. VAT): Total development cost (excl. VAT): 32,151,851£ 23,173,224£ Nationality Mix - Manchester Manchester attracts a significant number of both international & domestic tourists, around 119 million visitors annually (57% international & 43% domestic in 2019). A peak is notable in leisure tourism during Football season. The top international markets include Ireland, Germany, and China. experiences in a new trendy brand in one of the most hectic cities of the country, in line with the Deansgate redevelopment plan and their consistent service level for business travelers and high recognition of.

[Audio] Qualitative Analysis - Courtyard Franchise Contract (Courtyard) STRENGTHS WEAKNESSES Description The right to use a brand, brand system and standards, and its sales/reservations/loyalty programs - in exchange for a fee. Poor waste management practices Poor positioning: focusing on family Ineffective data protection - Negative Publicity S W Length 10-20 years THREATS Fee/payment % of room or total total revenue + per reservation/ booking fee + marketing fee(Usualy revenue-based)from P&L incentive fee, base fee, franchise fee Biggest distributor from Marriott High returns, solid RevPar Benefits from Marriott's demand Geographic presence Strong brand image Strong financial positions and health Strong online presence Strong investment in R&D High focus on innovation (IT infrastructure) Workplace diversity T O OPPORTUNITIES Source of revenue Contract fees, 3-4% of revenue + marketing/reservation fees Introduction of new regulations - legal standards Shortage of skilled labour Increasing number of competitors (+20.4% of new hotels upscale = 10 hotels) The rise in inflation The growing environmental sustainability trends Global Pandemic Accommodation rentals The changing customer preferences Development of new technologies Rise in the customer's disposable income (à vérifier) The emergence of new market segments The emergence of e-commerce & social networking apps/media Risk for business owner medium Hyatt Regency Hilton Deansgate Holiday Inn Mercure Melia Competitive Set - Courtyard Pros - Franchise CHAIN SCALE Upscale Upscale Upper Upscale Upper MIdscale Upper Upscale Benefit from the brand reputation Support network, economies of scale with stakeholders Support from the franchisor on operations, marketing, advertising Training and development ROOMS 212 279 298 280 208 Cons - Franchise 1965 2015 2016 2018 2006 OPENED 14 14 17 MEETING ROOMS 13 6 Strict operational standards, low freedom for the management High initial costs High dependency on the franchisor Brand reputation risk 1 Restaurant & 2 Competitive Set - Courtyard Restaurant & Bar Restaurant & Bar RESTAURANT/BAR Bars - Rooftop Restaurant & Bar Laureate Restaurant & The Graduate Bar Fitness Fitness Fitness Fitness Fitness LEISURE No parking OTHERS Indoor Pool Parking Parking Parking & SPA This competitive set has been selected to align with properties catering to similar customer segments, locations, and hotel attributes. Hotels have been chosen to attract a mix of business and leisure travelers, reflecting Courtyard's demographic targets. All selected hotels share a brand affiliation, emphasizing consistency and quality across properties. This affiliation ensures standardized guest experience and loyalty programs but enables Courtyard to benchmark against industry standards. By opting for this competitive set, Courtyard aims to refine its positioning within the market, reach its objectives, and improve its mix of leisure/business travelers..

[Audio] Performance Review - Investment Metrics ESG/ CSR - Strategy Starwood Capital Group adopts an environmentally conscious investment strategy, the firm and its affiliates received acclaim for the environmentally friendly design and operations for several assets. SH Hotels and Resorts is certified Carbon neutral across all of its operating U.S properties and is currently pursuing global certification. Treehouse Marriott International Nurture our world: By 2025, 50% of franchised hotels will have participated in community service activities Empower through Opportunity: by increasing programs in hospitality among youth, women, people with disabilities, and refugees Sustain Responsible Operations: reduce footprint (water, carbon, waste) - use 30% of renewable energy Welcome All and Advance Human Rights; while developing updated training. Locally sourced purchasing Recycling program Conserving water by encouraging guests to hang towels to signal reusing vs. washing/replacing Awarding bonus points if guests housekeeping services Limiting cleaning schedule for extended stay guests Providing recycling bins in guestrooms Replacing parking lights with LED Composting and recycling program Reducing single-use plastics throughout all operations Recycled materials in design and construction According to projections, Treehouse has certainly seen its occupancy rate more realistic in 2023 as it is the opening while Occupancy courtyard has been more optimistic. Treehouse Treehouse forecasts a significantly higher ADR compared to Courtyard. This indicates a stronger pricing power and a ADR potentially higher market segment. Treehouse consistently outperforms Courtyard, indicating better VS revenue generation capability from its available rooms. RevPar Why Treehouse ? Key Criteria - Qualitative Starwood Capital Group has made multiple investments over the past decade in England, and the redevelopment of this property is an opportunity to generate many economic benefits for Manchester and Treehouse. Deansgate is a vibrant, hardworking street with many options: coffee, bars, restaurants, etc. As a street, Deansgate is an important symbol of the city. The brand and culture of Treehouse are closest to that of the Deansgate redevelopment project in terms of hotel sustainability, design, and renovation propositions elaborated with a modern sensibility. In addition to the first Treehouse opened in London in 2019, Treehouse Manchester will be the only second of its kind in the UK. Treehouse's childhood-like approach and interest in sustainability will appeal to younger clientele looking for a unique experience in the heart of an energetic city during different periods of the year, increasing the hotel's performance through optimized revenue and occupancy maximization. According to the qualitative and SWOT analysis, choosing Treehouse will help the hotel diversify itself to a high concentration of upper upscale hotels, gain a competitive advantage, and beat the competition thanks to its unique project. Treehouse offers the right balance between business and leisure by offering services that correspond to both segments. Treehouse has a much higher TrevPar, reflecting its ability to generate additional revenue beyond just room sales (dining, TrevPar Past Performance's Analysis (Renaissance, 2019): events). Courtyard Comparison Vs. Courtyard and Treehouse : Renaissance Compset Treehouse also leads in GOPPAR, suggesting that it not only TrevPar : 97 GOPPAR : 31 GOPPAR generates more revenue but also maintains a higher profit Occupancy margin. 76% 85% MPI : 89 TrevPar : Courtyard projects a lower TrevPar the 2 first years than Renaissance. It can be explained by Courtyard's low ADR and 96 ADR The comparative analysis highlights that Renaissance was underperforming compared to its compset. 126 ARI : 79 Occupancy.

[Audio] Performance Review - Revenue Item/Trends F&B Revenue - Treehouse For most properties in the hotel industry, F&B revenue should account for 25% to 35% of the total revenue. (Hotstats) In a hotel, F&B is the second-most important revenue after rooms. It is also important to know that F&B is highly volatile. Moreover, the frontline staff should be fully aware of the department's revenue and objectives. Renaissance (2019): F&B revenue = 23% of total revenue - Good Projections 2026 made by Treehouse: F&B revenue = 43.59% of total revenue - too high Therefore, if we over-evaluate the F&B revenue as a % of the total revenue, we will also over-evaluate the F&B costs as a % of total revenue. Normally, F&B operating costs are much higher than rooms, as it is easier to have an economy of scale for the rooms' expenses. This can explain why we have a difference of 11% when comparing % costs (and therefore profit) of 2019 and 2026 (projected). F&B Revenue - Courtyard Courtyard's projection seems more reasonable than Treehouse's projections. Projections 2026 made by Courtyard - F&B revenue = 22.68% of total revenue - Good Performance Review - Cost Items/Trends Costs While the rooms division is looking at a ~25% cost basis and a ~75% GOP margin, the F&B operation is closer to a ~75% cost basis with a ~25% GOP margin. (Hotstats) Courtyard Sales & Marketing : F&B Cost Courtyard projections 2026: 56.6% It makes sense that Courtyard spends less as they are well recognised, a big brand part of Marriott, and has an important loyalty program. Following that logic, Treehouse's Sales & Marketing % expenses and other Undistributed Expenses should be higher, as they also need to invest more to be recognised & distributed, i.e. 10%. Benchmark - projections compset 2026: 64% The projections of Courtyard are lower than the compset and lower than the recommendation of Hotstat. This brings Courtyard to a high-profit margin of 43%. Treehouse Additional information needed: Projections 2026: The majority of Undistributed Expenses are lower for Treehouse than for Renaissance (2019): F&B Costs: Average check per clients, income statement of the F&B outlets Sales & Marketing expenses: Undistributed Expenses: How Sales & Marketing % expenses distributed : at the hotel level? at the brand level? All together with SH hotels? Renaissance 2019: 9.1% Projections 2026 made by Treehouse: 5% Projections 2026 made by Courtyard : 1%.

[Audio] Quantitative Analysis - Performance Review Courtyard was closed a part of 2023, therefore the rise between 2023 and 2024 Performance Review - Revenue, Cost & Profit (2023-2026) is not to be considered as a significant performance. REVENUE The revenue is rising for both brands, with an increase of 19% for Treehouse and 25% for Courtyard from 2024 to 2026 (Courtyard was closed major part of year 2023) However, the revenue of Treehouse is projected to get higher than Courtyard's. COST Costs are rising for both brands, together with revenue as the activity of both hotels are increasing. However, Courtyard shows better capability of controlling their costs, which are not growing proportionally with the revenue This can be explained by the economies of scale from which Courtyard is benefitting, as a well established brand, part of a big group like Marriott. For example: their undistributed expenses are accounting for 15.9% of total revenue, compared to 19.6% for Treehouse, driven by Sales & Marketing expenses: 2.2% for Courtyard, 6.5% for Treehouse (based on 2026 projections) GOP & NOI efficiency Conclusion Higher revenue Better cost efficiency for Courtyard performance projected for However with some Treehouse incoherence GOP flow through of Courtyard clearly outperforms Treehouse's, indicating superior efficiency in converting incremental revenue into operating profit. The 103.99% in 2019/2026 and strong 80.78% in 2025/2024 make it a standout performer in this metric. The main driver of such performance differences are the departmental costs of both brands: While rooms costs are aligned, the main difference is witnessed in the F&B costs, which we judge much more accurate for Treehouse, as they should be around 75% (Hotstats). NOI flow through of Courtyard again shows stronger performance, with 85.54% over 2019/2026 and 62.49% in 2025/2024. While improving in some years, Treehouse does not match Courtyard's efficiency in converting revenue into net income. As a conclusion, choosing in Treehouse remains the most reasonable option. The Key Performance Indicators show a future performance superior as Courtyard (Courtyard is demonstrating even a worse performance than Renaissance). In terms of revenues and costs, Treehouse shows higher total revenues and realistic F&B costs compared to Courtyard (underestimation). Indeed, TH's revenue and cost projections are consistent with the benchmark..

[Audio] Performance Review - Investment Metrics ROI: IRR: 152,73% 12,30% Exit Value: Payback Period: NPV: £8,65 £47,76 millions 9,06 years millions IRR: ROI: 11,24% 136,98% Exit Value: NPV: Payback Period: £57,92 millions £7,62 millions 9,11 years Discount rate calculation: Risk free rate + Risk Premium (using the risk premium approach) Going-in Cap Rate = 8,5% (CBRE UK Real Estate Market Outlook; we took the provincial cap rate) Going-out cap rate = Cap Rate - 0,25% 4,31% + 4,5% = 8,81% *Risk Premium of 4,5% Risk-Free rate of 4,31% : UK government bonds = As the hotels are undergoing renovations, the going-out cap rate tends to be lower than the going-in cap rate because renovations enhance the property's value. Hence, the risk is reduced post-renovation, making the property more attractive for investors. *Sector Premium: Asset Class premium of 1,5% / Real Estate sector premium of 2% City Premium: Economic Structure of the city: 1% Property Premium:Tenant risk : 0%,Building Risk: 0%,Micro Location : 0% 8.5% - 0,25% = 8,25% To find the cash flows from 2027, we added the inflation rate of 2% provided in the instructions Insights Growth rate = discount rate - going in cap rate = 8,81% - 8,5% = 0,31% Quantitative Analysis - Why choosing Treehouse ? Treehouse has a higher ROI, IRR, and higher NPV, indicating better profitability and efficiency in generating returns. Courtyard has a higher Exit Value, suggesting a potentially higher final sale value. For both Courtyard and Treehouse, the IRR is higher than the discount rate, indicating a positive return for both investments. Finally, if the primary goal is to maximise profitability and efficiency, Treehouse is the better investment. However, if investors prioritise a higher exit value, Courtyard might be preferred. Overall, Treehouse has a better performance due to its superior ROI and IRR. Based on the quantitative analysis, Treehouse demonstrates superior performance across all key metrics. Its higher ADR, RevPar, TrevPar, and GOPPAR indicate a stronger financial position and better revenue generation capabilities, making it a more attractive brand..

[Audio] CAPEX Plan- Ground Floor Overall Capex Goal: The Renaissance was clearly underperforming and needed a serious hit to reposition itself on the map. Manchester being in a redevelopment era, it is necessary to propose a concept that is following the demographic trends and offering new guest experience. In fact, since the pandemic, the world has learnt how to live differently and the border between business and leisure is getting blurry. More and more people are now working remotely and are looking for places to stay that can provide them with all services needed for their daily activities. During our Capex conception, the goal was to create a space where guest could either visit for business, leisure, or both. Furthermore, we chose concepts that are eventually coming with low operational costs, hence, higher profit margins. Coffee Corner Kitchen We only carried out a "soft renovation" of the kitchen and equipment, as the kitchen was in good condition and not accessible to customers. We also renovated the kitchen to bring it up to ESG standards. The Coffee Corner will be placed in front of the Grab n Go and open from 8 am to 5 pm. Business travelers using the meeting rooms and co-working space will appreciate the easy access to a coffee bar. Guests arriving early will appreciate having a place to relax and enjoy a coffee while waiting for their room to be ready. This can improve guest satisfaction. External guests before work can come and grab a coffee. The Coffee Corner will feature bio coffee roasters and suppliers. This will be in line with Treehouse's brand. TOTAL COST: £25'133 TOTAL COST: £88'327 Grab n Go Restaurant Pisco Cantina An additional F&B outlet will be integrated into the reception area, close to the front desk. It will be open from 8 am to 10 pm. This "Grab n Go" concept will enhance guest convenience by offering local and fresh food options for takeout while minimizing hotel costs through improved efficiencies and optimal use of existing staff. The outlet will feature various options, including healthy meals, tasty snacks, refreshing beverages, smoothies, and fresh products from local suppliers. This new outlet will be convenient for guests using the co-working space and for hotel guests who want to grab a quick lunch and enjoy Manchester. TOTAL COST: £5'000 Reception & Lobby The newly renovated reception and Lobby areas are now a reflection of our dedication to quality, comfort, and sustainability. These updates include new furnishings, contemporary decor, and enhanced lighting, all designed to create a more inviting and comfortable atmosphere. The upcoming opening of our Peruvian restaurant nestled within the Treehouse Hotel in Manchester was inspired by the success of the Mexican restaurant at Treehouse London. The establishment offers traditional Peruvian cuisine crafted with the finest seasonal ingredients. With 147 seats, the restaurant will be open 365 days a year, ready to welcome customers in a warm and authentic setting. Customers will enjoy a delicious breakfast from 7 am to 11 am, lunch from 12 pm to 3 pm, and dinner from 7 pm to 12 am. The decor, predominantly wood and very natural, will evoke the beauty of Peruvian landscapes and the essence of Pachamama (Mother Earth). TOTAL COST: £107'631 TOTAL COST: £475'397.

[Audio] CAPEX Plan- Mezzanine Ball Rooms Bar & Darts Room We demolished the previously existing offices to create more space for our ballroom. This renovation allows the ballroom to accommodate up to 295 guests, with an area of 1.5 square meters per guest, making it ideal for weddings, conferences, and banquets. A movable wall has been installed in the middle of the ballroom, offering the flexibility to divide the space into two separate rooms as needed ( 251 & 190 sqm each), enhancing its functionality and versatility. TOTAL COST: £688'050 The recent transformation of Function Room 1 extends our bar area and introduces a dedicated space for entertainment and leisure. This project aims to enhance guest experiences through modern amenities and sustainable practices. The new dart room features 4 professional dart lines, each equipped with cameras and tech systems. These enhancements offer Offices & Open Space Staff Ball Room 251.1 sqm Ball Room 190.8 sqm Four new offices have been created for the management team, alongside an open space designed for other administrative and back-office departments. This open-space area promotes collaboration and maximizes the sharing of ideas and information among staff. Movable wall TOTAL COST: £72'701 Staff Room precision tracking and real-time feedback, making gameplay more engaging and enjoyable for both seasoned dart enthusiasts and beginners. Adjacent to the karaoke room, we have installed various arcade games to cater to all ages. These games provide a perfect mix of nostalgic and contemporary fun, creating an exciting environment for guests to unwind and socialize. The new bar equipment is energy-efficient, reducing overall energy consumption. The bar has been constructed using sustainable materials sourced from local suppliers, minimizing our carbon footprint. Additionally, the bar now exclusively uses biodegradable straws, recyclable napkins, and other eco-friendly products to promote sustainability. Advanced water-saving technologies have also been installed to reduce water usage in the bar area. Adjacent to these offices, we have revamped the staff area to include secure changing rooms and storage facilities, ensuring that staff can store their belongings safely and comfortably. Offices 6.85 sqm TOTAL COST: £499'408 TOTAL COST : £15'272 (x4) Staff Room 61.9 sqm Bar & Lounge 335 sqm Open space Staff Co-working Space Karaoke Room 81.2 sqm Darts Room Meeting Rooms Karaoke Room 23 sqm 23 sqm Co-working 88 sqm Fitness 93.4 sqm space Acarde Games Changing Room 135 sqm Movable walls 2 suites will undergo destruction in order to build a coworking space that opens everyday. Guests will have the possibility to book either for the day (£25) or half day (£15). It enhances the guest experience by providing a productive and flexible environment with high-quality equipment and high-speed Wi-Fi. Makes the hotel more attractive to a wider range of guests, especially those who need to work during their stay. It will boost the usage of other hotel facilities, such as the coffee, restaurant and Grab&Go leading to increased revenue. Converting the existing function room into a karaoke room, open from 7pm to 2am, will attract hotel guests as well as local customers, boosting bar revenue, particularly on evenings and weekends. In Manchester's competitive market, a karaoke room serves as a unique selling point, drawing in both leisure and business travellers seeking entertainment. It also provides a new space for hosting events like birthday parties and corporate gatherings, generating.

[Audio] CAPEX Plan- Cost estimate As the Renaissance hotel was quite old, we judged necessary to do a full renovation in most of our spaces. We referred to the HVS cost estimate for each project, ESG: environmental criteria accounting the upper cost as we are doing a full renovation All the renovations costs are including the following implementations, with regards to the environment criteria: 15% 10% Can be saved 5% on energy 15% bills 5% Led lighting in all the building VMC double flux (ventilation) Automatic regulator for the heater A/C and lighting control of the building Heating system renewal - air pump Implement water-saving fixtures 15% Revenue projections strategy Occupancy: 1. As a new trendy Boutique hotel in a hectic city, we assumed that the occupancies of the different outlets would be quite high in the 1st year During the 3 following years, the hotel will gain in reputation, staff will have had training and experience and will show a constant increase in performance. Finally, we estimated that, due to aging building and deterioration, the outlets occupancies will experience a slight decline, starting in year 5. The 3 biggest investments are for the 3 spaces that are generating the more revenue Architecture, design, project management & contingency expenses are accounted in the Capex investment, as 10% of all costs. Those numbers are based on an optimistic projection, you will find the pessimistic version in the Excel file. 2. Revenue: Capex investment = 13.71% of new revenue A Capex investment plan usually accounts for around 10% of the projected revenue of the 1st year. Our project is planned to be slightly higher than that, as we chose to do a full renovation in most of the spaces in order to avoid having to renovate again before exiting the investment. Revenues of each outlet were calculated based on capacity, open days and hours, average check and occupancy. We estimated the average checks to stay constant, as we assumed the performance fluctuations would come from the occupancy. 3. Costs: What's included in the Capex? Construction costs: Demolition, floor tiles, Paint doors and trim, painting of ceiling, millwork, HVAC, Electricals, AV Infrastrcuture, window treatment FF&E: Tables, Portable bars, Operable partitions, Architectural lighting, Banquet chairs, Life safety, artwork, accessories & mirrors, Stage installation, sound systems, arcade games, IT equipment, fitness equipment, karaoke equipment, fridges Another component largely responsible for our hotel's performance, is the operational costs, for which we also had to make some assumptions: For the sake of uncertainty, we intentionally set the operational costs at 5% to 10% (depending on the outlet) higher than we normally would, and then adjusted them for the following years. We presumed that staff and management would need an adaptation period and would make a few mistakes in the beginning, and therefore wished to over-estimate the costs..

[Audio] CAPEX Plan- New revenue & costs Mezzanine Ground floor Capex investment: £499'408 Capex investment: £88'327 Capex investment: £688'050 Capex investment: £5'000 Capex investment: £114'241 Capex investment: £500'53' (kitchen + restaurant) Capex investment: £93'661 Capex investment: £46'319.

[Audio] As explained earlier, we estimate that, as a young brand not yet established as a recognised institution, the Treehouse brand CAPEX Plan- New revenue & costs Key outcomes: needs higher Sales & Marketing expenses to be visible and build its reputation. Our projected revenues are substantially higher than the initial plan of Treehouse As a result, our project's NOI starts lower in 2024, but is then higher than the initial plan of Treehouse, each year. The discrepancy in the NOI % (of revenue) is explained by the Sales & Marketing expenses, as shown here: The figures above are clearly showing the difference in revenues & costs projections strategies. Our optimistic & pessimistic projections are following the same trend: we assumed that it would rather grow strongly in the first years to then stabilized and later declined as the hotel is aging. Treehouse's projections are assuming a linear growth over the years, which we judge not so realistic. Our underperformance in the first year is due to the fact that we budgeted higher operational costs as we assumed we will need an adaptation period for both management & operations, to manage costs & processes. Then, we adjusted the costs for the following years. Overall, our optimistic projections are showing a better GOP than the initial project of Treehouse, as well as the NOI. The NOI % of the initial Treehouse project is slightly higher than the one we projected, which can be explained by the divergence of Sales & Marketing expenses. The number of rooms available were held constant over the years, except for 2024, in which there are 366 days. As we did not make any investment in the rooms, we will not consider the rooms revenue in our performance analysis. Drivers of TrevPar performance The GOP/NOI flow through shows by how much (each year higher than Treehouse initial) the hotel is able to convert additional revenue Ballroom: £952'103 into GOP/NOI, in other words, it is a measure of Peruvian restaurant: £4'639'150 profitability. (minimum, pessimistic) In this case, all numbers are positive, meaning that any additional revenue generated by the hotel will inevitably create profit. Drivers of GOPPAR performance (each year higher Treehouse initial) Dartbar profit: £520'125 arcade & games having a 50% profit Metrics impacting TrevPar & GOPPAR: For the comparison between 2026 & 2027, the flow through is nul, as the revenue is projected to be same, no additional GOP or NOI in 2027 Peruvian restaurant: £927'830 (20%) F&B revenue, Other departmental revenue, Undistributed expenses compared to 2026 (minimum, pessimistic).

[Audio] Incremental results We chose to do all our valuations based on an investment horizon of 10 years, so we can then compare them with the same base. The incremental results show the value created by the new Capex, To get accurate results, we injected the revenue of the rooftop and 13th Methodology additionally to the initial project planned by Treehouse. floor (originally planned by TH) in the new P&L with Capex, so that it They reflect only the incremental cash flow coming from the Capex itself, not the whole investment in the hotel. Incremental EBITDA = New EBITDA - Initial TH EBITDA gets cancelled in the subtraction to the P&L built by TH. That way, we get a reflection of what our new Capex only brought in Incremental NOI = New EBITDA - Initial TH NOI terms of cash flows (NOI). Reminder: Discount rate = 8.81% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Optimistic Incremental 0,44 0,87 0,97 1,07 1,18 1,28 1,05 1,08 1,06 0,77 EBITDA Incremental NOI 0,06 0.81 0.81 0,79 0,54 0,62 0,71 0,79 0,87 0,96 Capex -2.39 Investment Considering the Optimistic scenario, the Capex will create a positive value, with a return much higher then required, finally payed back after 4 years. Total Cash -2,39 0,06 0,08 0,81 0,79 0,54 0,62 0,71 0,79 0,87 0,96 Flows Pessimistic 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Incremental 0,36 0,87 0,97 1,07 1,18 1,28 0,74 0,88 0,86 0,77 EBITDA Incremental NOI -0,12 0,37 0,46 0,44 0,40 0,47 0,55 0,63 0,71 0,80 Capex -2,39 On the Pessimistic side, the project will also create value (+ Investment £323'070), the return is still higher than required, the return on investment positive, and investment payed back around 3 years Total Cash later than in the Optimistic case. -2,39 -0,12 0,37 0,46 0,44 0,40 0,47 0,55 0,63 0,71 0,80 Flows.

[Audio] SWOT Analysis - from Capex Compliance with ESG/CSR policies Environmental STRENGTHS WEAKNESSES As previously explained, our Capex investment includes ESG implementations, for the environmental criteria, throughout each of our outlets: Led lighting, automatic regulator for heaters, A/C and lighting control of the building, water-saving fixtures, etc. W S Social Too many implementations can lead to a poor management and high staff turnover. The hotel's reputation can be damaged. Improved guest experience resulting in higher occupancy and ancillary revenue Significant growth in TrevPar thanks to the new facilities and services Increasing EBITDA/NOI & GOPPAR reflects efficient cost management Treehouse is based and now growing towards a sustainable brand. With that regards, their philosophy is to create responsible properties by emphasising on the guests and staff education: all stakeholders are incentivised to think about how they behave and act more responsibly when are visiting Treehouse. More over, the hotel will offer internships & apprenticeships for students, professional development opportunities, foster a diverse and inclusive workplace environment, THREATS OPPORTUNITIES T O Governance Differentiate from competitors through upgraded amenities Capture more market share and increase brand loyalty Implementation of a Capex Plan can lead to delays Disruption during renovation can affect occupancy and guest experience Regularly publish ESG reports, establish a clear code of ethics for all employees and stakeholders, implement a whistleblower policy, involve employees in decision-making processes related to ESG initiatives, & finally, Conduct regular surveys to gather feedback from stakeholders on ESG performance. Reminder: The initial investment does not differ between Optimistic & Pessimistic scenario Project valuation Discount rate = 8.81% Initial invesmtent Total TH Capex 23'173'224 The total project NPV was calculated by discounting the projected cash flows of the hotel (NOI), NPV : £10'949'725 Estimation TH Ground Floor and Mezzanine with the discount rate calculated previously, from which we subtracted the total initial investment -2'000'000 IRR : 13,32% to get a result of what we, Starwood, are creating in terms of value with this investment. Payback period : 9.01 Capex without Mezzanine and Ground Floor = 21'173'224 Overall, both optimistic & pessimistic scenarios are creating value. Purchase Price +8'000'000 Transaction Costs +500'000 Our Capex for Mezzanine and Ground Floor +2'393'344 Total Capex Investment = 32'066'567 As the Capex investment budgeted by Treehouse includes the Initial Treehouse project renovations for the entire hotel, we need to deduct their budget NPV : £7'932'737 According to our projections, the Optimistic scenario will better NPV : £8'652'311 IRR : 12,12% allocated to the Ground floor & Mezzanine (that we estimated from the document we have been provided with), to inject ours instead, as perform than Treehouse initial project. IRR : 12,30% Payback period : 9.06 shown in the table above. However, the Pessimistic one is underperforming compared to Payback period : 9.06 the initial project..

[Audio] Risk analysis Capex plan Effect of poorly managed Brand reputation events on reputation Ensure clear SOPs when it comes to events, provide training to staff and regular benchmark analysis Make the clients actor of our success by allowing them to provide feedback. Ballroom Insurances and clear contract with the clients. Physical damages Risk of deterioration during large events Risk of accident Safety Fitness Assign a staff member to regularly check the equipment, and save the documents for protection in case of any litigation Have clear instructions on how to correctly and safely use the equipment Have waiver in place in case of any accidents to protect ourselves legally Meeting rooms Risk of data breach as Data Security Install strong softwares for data protection, inform guests about how to use the devices and the risk taken if any Ensure privacy of our workers when they are in the rooms guests will use our electronical devices Co-working Will serve alcohol, associated with games, Safety & litigation Dart bar Clear HACCP guidelines for employees, and security rules for guests Protect ourselves with legal contracts and waivers risk of crosscontamination & accidents Dart bar Multiple F&B outlets: Restaurant Environmental risk related to the management of quantity Implement a clear methodology for keeping track of the F&B supply and assess waste on a regular basis Put instructions and "tips signs" to educate both staff and guests Grab n Go: ensure the FIFO method to prevent from any food poisoning Coffee/GrabnGo & waste Dart bar Restaurant Supply Close monitoring of quantities used and orders to suppliers Maintain a qualitative relationship with local suppliers Local supply uncertainty & climate change impact on production and price Coffee/GrabnGo Keep a close eye on inflation and the econmical climate and adapt our pricing if needed Lack of demand due to lower purchase power Demand Karaoke Potential delays and Construction Important to have a strong contract with partners, and keep good relationships with them, using Treehouse and SH Hotels Treehouse will be important here uncertainty on the quality Leverage the SH Hotels network and expertise to conduct strong budget monitoring and audits on the project's financial component Overall Financial Potential additional costs Employees Risk of under-staffing Use the experience of Treehouse London to build a strong company culture, and create value for our staff. Focus on the employee well-being as part of our ESG implementations..

[Audio] Projected exit value Exit Strategy Transaction Process Criteria for potential buyers Prospects to look at after 10 years Find a broker Optimistic Pessimistic Selling Asset As a Private Equity fund we want to sell the whole property Marketing Prep. £47,91 Creditworthy, reliable Owner only, preferably familiar with investments in other properties in the UK Real estate experts, willing to invest in Core or Core plus opportunities £45,26 millions OEREFs : Schroder UK Real Estate Fund (SREF), Union investment REITs: M&C REIT Management Ltd HNWI or family offices looking for an investment with stable income without having to operate the property: Wenaas Group, Elysium Management millions Manchester Investment market Find prospects Past Present Future Asset will include the tangible asset: building The asset price is higher than the share price Gives us a larger choice of investors as buyers often prefer to acquire assets rather than shares & lenders prefer assets to use as collateral We want to keep it operated by SH hotels under the Treehouse brand, as they are owned by Starwood and therefore generates revenue for the group Economic growth Economic growth Know Your Client Economic growth Bidding Process Player in UK's Northern Powerhouse Limited bidding As we want the property to remain being operated under the Project developments: new projects in the pipeline to keep momentum going The city is set to outpace UK economic growth until 2027 Treehouse brand, we need to carefully choose a buyer that will Educational & commercial hub, fueling demand for housing Strong public transports network Covid-19: temporarily disrupted the property market, but quickly recovered comply with SH hotels management. Letter of Intent We will contact potential buyers ourselves: Owned by an owner Property market Residential market (PropCo), or Owner company (O). Allows us to better manage relationships with prospects, save time on inconclusive proposals and resources allocated. Urban regeneration (i.e Spinningfields, Northern Gateway Revitalization, attracting developers & investors 2008: recovered with a hit of -4.1% on its GDP, compared to -4.4% in the UK Brexit: Value of the Sterling dropped Housing and rental prices expected to keep rising, although at a more moderated pace Due Diligence More affordable than London, attractive for investors seeking good returns Good ROI spawned by regeneration hotspots Hiring a broker Residential market Property market Definitive offer Exclusive mandate Demand outstripping supply Prices & rental yields took off Hotels valuation Starwood already acquired multiple properties through their funds and therefore has a strong network and is probably Consistent high demand, driven by population growth, urban rejuvenation , economic growth across sectors already working alongside brokers on other deals. Commercial market Increased by 1.5% in € terms & decreased by 1.2% in £ in between 2022 and 2023 In-depth due diligence Demand for co-working spaces & negotiations & office spaces flew up Hotel supply Hotel Supply "On success" fee structure The broker will receive a % fee only once the transaction is fully completed, giving them incentive to perform. Signature of SPA Transaction Holding period 2019: Highest transaction volume in the UK, with $500 million invested in hotels, 18% share of total UK regional investment CAGR of 4.2% between 2012 & 2023 Largest market after London Increasing supply, pressuring.

[Audio] Appendix: Market Research History - Deansgate / Renaissance 1996 - IRA bombing, lead to the 1999 redevelopment plan to rebuild the city centre. Project by Urban&Civic to create the Renaissance Hotel on the site approved by the city Council in 2018 > closed permanently on 15 July 2020 due to weak demand. --> then bought by Starwood and Alliance. Manchester - City Overview During the Industrial Revolution, Prominence led to the EU's most sophisticated service-based economies. Over the past two decades, Manchester has undergone significant economic transformation, transitioning from an industrial hub to a thriving service-based economy. UK's largest and fastest growing economy outside of London. Manchester's economy has shown resilience in the face of crises (2008-2009), with diverse industries and a strong service sector contributing to its ability to bounce back relatively quickly (mid-2010). Significant investment in infrastructure, real estate, and tourism-related projects may have accelerated Manchester's recovery trajectory. These investments create jobs, attract visitors, and stimulate economic activity. Manchester - Transport Airport: the third largest airport in the UK, with 29m travellers in 2019. 5.2% CAGR growth over the last decade. National Train: there is 3 national train stations, with more than 70 trains per day to London. Tram: largest tram system in the UK, connects the city center to the airport. Manchester - Real Estate Climate BNP Paribas report: due to high vaccination rate > reversal of real estate investment decline. UK market attractiveness: remains highly appealing to global investors due to the growth potential, economic foundations, and top universities. Mortgage rates are going down in all countries thanks to ECB policy Real estate office sector: highest demand in UK (excl. London)Q1 2021 - 20,544,089 SF inventory + 308,171 under construction. 2,699,056 SF available, that's why the prime rent of £38.50 is the highest in the UK (excl. London) → competitive market. The increased demand for assets drives down the yield to 5%. Real estate retail sector: Highest demand in the UK (excl. London) Prime Yield is 6.50%, competitive compared to other cities in the UK. The rental value, £220, is the highest in the UK→ high demand and attractiveness of the commercial real estate market in the city. https://greatermanchester-ca.gov.uk/media/5848/greater-manchester-international-strategy.pdf.

[Audio] Appendix : Competitive Set - Courtyard Branding Positions Hyatt Regency Hilton Deansgate Holiday Inn Mercure Melia Treehouse is well positioned on the graph because of its unique, modern, and innovative design elements (boutique hotel). Looking at the price point, Treehouse is placed towards the mid-to-upper end of the axe, suggesting it is a premium brand but not at the very top of the luxury market. Treehouse targets travelers who are willing to pay a premium for a memorable experience. By focusing on high design, Treehouse differentiates itself from conventional hotels. The high price also suggests that they aim to provide a high-quality and unique experience that justifies the cost. Courtyard is more to budget-conscious travelers seeking reliability and practicality. Performance Review - Choice of Benchmark Chain Scale Upper Upscale Upper Upscale Upper Midscale Upscale Upscale On Hotstat, we had the choice between a benchmark with 4 hotels, one with 7, and one with 10 hotels. We based our research on Set 2 vs. Provincial (Full Service) on Hotstat. / hotels based in the city center of Manchester, with approximately the same number of rooms qualified as Upper Upscale, Upscale or Upper Midscale. Group Hyatt Hilton IHG Accor Melia Hotels IN Number of keys 212 279 298 280, 14 étages 208 Picadilly A Location Outside city center 1km from manchest er city center City Centre, in front of Picadilly Station F&B 2 restaurants and a bar bar, restauran t bar restaura nt restaura nt and bar The Laureate restauran t and the graduate bar ESG Strategy - Asset Management Recommendation Meeting Rooms 14 17 14 13 6 For maximizing asset value, it's advisable to begin the ESG process by involving staff first, followed by guests. Engaging the team can entail integrating waste management systems in the facilities, utilizing sustainable methods that promote ergonomic practices. Additionally, guests can be encouraged to reduce electricity usage and adopt a more environmentally aware approach to energy, food, and water consumption. Spa no Indoor Pool no x According to the most recent survey conducted by PwC among global investors, 79% regard ESG risks and opportunities as significant considerations in their decision-making process. Nearly half of them, 49%, indicate they would divest from a company if it fails to address critical ESG concerns such as the climate crisis, diversity and inclusion, or workers' rights. ESG are important criteria for hotels to attract investment and financing. Fitness x x x x x ESG Strategy - Starwood Capital Group Parking no? x x x Environmental: invest through environmental sustainability & responsible community development Social: create a positive workplace environment Governance: Meet gold standard for strong and ethical governance procedures "SH Hotels and Resorts is certified Carbon neutral across all of its operating U.S properties and is currently pursuing global certification." MISSION by SH: seeks to uplift the planet and empower our "hotel guests".

[Audio] P&L Treehouse with Our Capex - Optimistic projection Pessimistic projection.

[Audio] Revenue and Costs Estimation - Optimistic Projection.

[Audio] Revenue and Costs Estimation - Pessimistic Projection.

[Audio] References 1/2 (In addition to all the resources on LMS) Real Estate Market https://greatermanchester-ca.gov.uk/media/5848/greater-manchester-international-strategy.pdf https://mktgdocs.cbre.com/2299/4f9cf816-5a98-4c59-9f20-534df6fd22d4-631909839.pdf https://www.zoopla.co.uk/discover/property-news/rental-market-report/ https://www.statista.com/outlook/fmo/real-estate/custom?currency=USD&locale=en&token=dBPAYrcoE3d4Ezdg2kwjUJDmUupaVRj5nvuewbKhe4TZllG8BlL5r4ad2iQjFOr8wbK7Uf0ZFW2f6OuF_v1N7wcbsvmzX EGIhk6gZQ%3D#value Branding Strategy Ownership - Branding Options https://www.starwoodcapital.com/investments/#:~:text=Following%20these%20transactions%2C%20St arwood%20Hotels,M%C3%A9ridien%20and%20The%20Luxury%20Collection https://www.shhotelsandresorts.com/our-company/team https://en.wikipedia.org/wiki/Barry_Sternlicht https://www.shhotelsandresorts.com/ https://www.baccarathotels.com/?_ga=2.126257101.1386200998.17112883831162652192.1711288383 https://www.treehousehotels.com/taking-root https://find-and-update.company-information.service.gov.uk/company/13117040 https://firmeneintrag.creditreform.de/2453/9370434552/DEANSGATE_SOF_ALLIANCE_S_RL https://www.crunchbase.com/organization/property-alliance-group https://factoryinternational.org/about/press/ https://pitchbook.com/profiles/company/10238-95 https://www.prnewswire.com/news-releases/sh-hotels--resorts-embarks-on-a-major-global-expansion302037707.html https://www.databahn.com/pages/marriott-org-chart https://www.franchisehelp.com/franchises/courtyard-bymarriott/#:~:text=Courtyard%20by%20Marriott%20is%20a,73%20countries%20and%20territories%20w orldwide. https://www.hotstats.com/blog/6-ways-to-keep-your-f-b-costs-in-chec https://hvi.hvs.com/market/europe/Manchester https://news.marriott.com/brands/courtyard-by-marriott https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/11/lifestyle-boutiques-driving-leisurehospitality-market/?sh=78f816ab823d https://www.franchisehelp.com/franchises/courtyard-bymarriott/#:~:text=Courtyard%20by%20Marriott%20is%20listed,section%20for%20Franchises%20Under% 20%2470%2C000. Manchester & Deansgate Revenue & Cost Items https://www.hotstats.com/blog/6-ways-to-keep-your-f-b-costs-in-check https://jalebi.io/average-revenue-for-a-restaurant-what-to-know/ CAPEX Plan https://unlockmanchester.com/quarters/deansgate https://ch.hotels.com/go/england/deansgatemanchester#:~:text=The%20history%20of%20Deansgate%20stretches,was%20developed%20on%20th e%20river. https://ch.hotels.com/go/england/deansgatemanchester#:~:text=The%20history%20of%20Deansgate%20stretches,was%20developed%20on%20th e%20river. https://www.enjoytravel.com/en/travel-news/places-to-visit/where-to-go-for-the-best-nightlife-inmanchester https://www.google.com/maps/search/hotels+/@53.4844325,-2.2533944,14.99z/data=!4m4!2m3!5m2!5 m1!1s2024-09-02?hl=fr&entry=ttu https://www.placenorthwest.co.uk/urban-civic-outlines-plans-for-renaissance-hotel-site/ https://www.bbc.com/news/uk-england-manchester-36474535 https://www.thebusinessdesk.com/northwest/news/2076613-public-consultation-on-200mtransformation-of-renaissance-manchester-site-now-open https://www.wework.com/fr-FR/buildings/one-st-peter-s-square--manchester https://hospitality-on.com/fr/tendances/petit-dejeuner-hotelier-se-reveille-lheure-est-auchangement#:~:text=58%25%20des%20h%C3%B4teliers%20r%C3%A9pondants%20ont,com merces%20de%20proximit%C3% https://www.lhotellerie-restauration.fr/sos-experts/question-reponse/recrutement-combien-depersonnel-avoir-pour-une-activite-de-restaurant47877#:~:text=On%20consid%C3%A8re%20qu'en%20moyenne,Cordialement. https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-andattractions.

[Audio] References 2/2 (In addition to all the resources on LMS) CAPEX Plan - Risk Analysis https://learningandwork.org.uk/what-we-do/employment-and-social-security/labour-marketanalysis/december2023/#:~:text=Unemployment%20for%20those%20aged%2016,May%2DJuly%20quarter%20of%202 023. https://www.ons.gov.uk/visualisations/labourmarketlocal/E08000003/ Exit Strategy https://beechholdings.co.uk/news/the-impact-of-brexit-on-uk-property-investment/ https://northernpowerhouse.gov.uk/about/#:~:text=The%20Northern%20Powerhouse%20is%20the,renowned%20civic%20and%20business%20leadership. https://www.benoitproperties.com/news/charting-the-trajectory-of-the-manchester-property-market-a-forecast-for-2024-25/ https://www.tamesidecorrespondent.co.uk/2024/05/05/is-manchester-a-good-place-for-real-estate-investment/ https://www.benoitproperties.com/news/charting-the-trajectory-of-the-manchester-property-market-a-forecast-for-2024-25/ https://hvi.hvs.com/market/europe/Manchester#:~:text=Hotel%20values%20in%20Manchester%20increased,the%20market's%20recovery%20going%20forward. https://blog.policy.manchester.ac.uk/posts/2022/03/greater-manchester-economy-response-to-crises/#:~:text=Following%20the%202008%20global%20financial,to%20the%20trough%20in%202009. https://kaytons.co.uk/will-brexit-affect-manchesters-property-market/ https://democracy.manchester.gov.uk/mgAi.aspx?ID=3145 https://www.costar.com/article/1504026368/market-report-manchester-england https://cdn.horwathhtl.com/wp-content/uploads/sites/2/2022/09/Market-Update-Manchester-September-2022.pdf https://www.business-live.co.uk/economic-development/manchester-set-outpace-uk-economic-28747578 https://www.schroders.com/en-gb/uk/institutional/funds-and-strategies/sc-real-estate-uk/ https://realestate.union-investment.com/en_GB/real-estate-portfolio/asset-classes/hotel-properties.