Hotel Zephyr Playbook by Davidson Hotels

Hotel Zephyr Playbook

Davidson Hotels & Resorts One Ravinia Drive, Suite 1600 Atlanta, GA 30346 678.349.0909

D ELIVERING

HOSPITALITY, CREATING VALUE... EVERY CUSTOMER, EVERY TIME

TO-DO LIST FOR SUCCESS Brand Positioning.............................................................................................................................................................................................................................................3 Brand Differentiators.......................................................................................................................................................................................................................4 Brand and Visual Identity...............................................................................................................................................................................................................22 Brand Experience and Customer Service......................................................................................................................................................................26 F&B Experience................................................................................................................................................................................................................................31 Marketing and Communications Program.........................................................................................................................................................................32 Revenue Management Strategy................................................................................................................................................................................................40 Direct Sales Strategy......................................................................................................................................................................................................................46 Technology..............................................................................................................................................................................................48

POSITIONING STATEMENT Hotel Zephyr located on Fisherman’s Wharf is uniquely San Francisco; a hotel situated in one of the strongest locations in the submarket, adjacent to Pier 39, and offering unrivaled views of the San Francisco Bay, Alcatraz, the Golden Gate Bridge and Marin County. Our mission is to consistently provide outstanding guest experiences that reflect the quintessential essence of the Fisherman’s Wharf environment. With the hotel’s premier location on the waterfront, we will attract strong domestic and international leisure travelers who wish to be only steps away from some of Fisherman’s Wharf ’s best shopping, restaurants and activities. The hotel will also host small group/tour & travel and FIT travelers who desire a more relaxed and scenic location from which to enjoy the overall sights of San Francisco. We will create connections by defining experiences through a very dynamic and energetic service culture that is unique, fresh, fun and irreverent, Always hip and current, we will deliver a memorable experience that is relevant and approachable and known as the “Zephyr Experience”. As we capitalize on the hotels preferred location while delivering the “Zephyr” experience, we will consistently meet the hotel ownership’s financial objectives and enhance long-term asset value.

COMPETITIVE ASSESSMENT With the launch of Hotel Zephyr , the team has identified a new set to track the success and growth of what is to become the “preferred ” hotel in the Fisherman’s Wharf market. The new set will comprise the following hotels: Pier 2620

Best Western Tuscan Inn at Fisherman's Wharf

Argonaut

274

234

221

252

Features/Services

Hotel Zephyr

Sheraton Fisherman's Wharf

Hyatt Fisherman's Wharf

Marriott Fisherman's Wharf

Number of Rooms

361

531

313

Trip Advisor Ranking

109

Guest Rooms Number of Standard Guest Rooms

359

523

305

263

225

211

239

Average Standard Guest Room Square Footage

285

320

300

320

290

300

Number of Suites

Average Suite Square Footage

600

450

300

500

650

600

Meeting Space Number of Meeting Rooms

Total Meeting Space Square Footage

834

9000

19000

7000

2856

1900

8850

2400

3300

3600

1450

1250

4200

Largest Ballroom Square Footage Second Largest Meeting Room (Jr. Ballroom)

2200

1763

1210

615

450

1800

Meeting Space Square Footage / Guest Room

2.31

16.94

60.7

25.54

12.2

8.59

35.11

Ranking of Meeting Space (1 = Best)

Food & Beverage Number of Restaurants

Number of Bars

Does The Hotels Offers Free Breakfast

Ranking of Restaurants (1 = Best)

Parking Complimentary Parking(Y/N)

Cost of Self - Parking

Cost of Valet Parking

Additional Charges Cost of Internet Access

14.95

9.95

12.95

The competitive assessment showcases the statistics that play into the physical aspects of the hotel, however there are several other pieces that factor into the dynamics of the market and Hotel Zephyr. For example: • Marriott, Sheraton and Hyatt have the benefit of strong brand recognition and contribution. • Tuscan and Argonaut are powered by Kimpton which attracts savvy travelers looking for boutique hotels with a passion for making it personal. Stylish and bold in design and service but not stuffy. Also known for exceptional food and beverage experiences along with a recognized independent brand following powered by the 60 plus hotels. • Pier 2620 is still in the infancy stages of reflagging from a Hilton to an independent soft brand by Preferred Hotels. Although Preferred will deliver minimal reservations, the residual effects as a Hilton will continue to help “prop up” this hotel as it enters into the next multi - million dollar phase of renovation. • In addition to the above, each of the hotels in Hotel Zephyr’s new competitive set has on property food and beverage offerings. The “Z” team clearly recognizes the powerful set we will be competing in as we launch May of 2015, however, the team is very prepared to quickly make a significant impact on the market. The strengths of the Hotel Zephyr are as follows but not limited to: • Best waterfront location

• Aggressive PR, Marketing and Direct Sales plan to successfully compete with established brands in the market

• “Newest” hotel in the market • Unique design unlike any other hotel in Fisherman’s Wharf

• The “BUZZ” • ROCKSTAR Team excited and committed to the success of “their” hotel

• The place to get “Zephyr’d” Service experience • 11,000 square foot yard/deck to experience your inner child

• The King of FIT and Tour and Travel (Bertin)

• F and B offering in a unique atmosphere

• BEST ownership group

• To be “Award Winning” Website

• We’ve done our homework!

Hotel Zephyr, will emerge in May 2015 as San Francisco’s newest waterfront hotel and play zone after completing the extensive $29 Million transformation.The hotel will offer guests Fun-Filled Adventures and Upscale Accommodations as part of the Zephyr Experience—a fresh take on creating memorable experience that is irreverent, approachable and genuine.

LOBBY - Guests begin their exciting journey the moment they walk into the hotels newly expanded lobby. The visually stimulating and eclectic mix of one of a kind art and unique furnishings gives this hotel a unique edge. One that is sure to please and excite even the most discerning travelers. The hotels inner landscape will have also been transformed into an 11,600 square foot “Deck & Play Zone”.

THE DECK - Designed for cutting loose, the hotel’s new 11,600-square-foot deck is an interactive fun zone with games, chill-out corners, fire pits, food, drinks and “Z-Coolest” deckhands that will ensure each guests inner child is summoned to have fun! Adventures abound as hotel guests discover hidden landscapes and one of a kind interactions throughout every corner of the hotel. Hotel Zephyr will feature newly constructed and vibrantly colored wings, guest quarters and suites.

361 NEW STYLISH, PLAYFUL GUEST QUARTERS AND SUITES • 355 first-class guest quarters including 63 with • Best of the best high-tech amenities, including personal balconies. high-speed Wi-Fi, direct multimedia streaming • 6 newly constructed waterfront suites and to flat-screen TVs, device charging and docking parlors. stations, and more. • Additional windows will be added to the guest • Fun at every turn with magnetic dartboards, rooms which will serve to increase the already bar-style desks, and lounging locations where unsurpassed views available at Hotel Zephyr you can chill out and absorb the view. from any hotel in the city.

MARKET DYNAMICS The San Francisco Bay Area has been recognized as the financial and cultural center of the West. Often referred to as the “Wall Street of the West” or the “Technology Capitol of the World,” the region is home to a knowledge-based economy that boasts the world’s largest concentration of technology and related venture capital firms. The ninecounty Bay Area region is the sixth largest metropolitan area in the United States. The Bay Area’s many economic strengths include its role as a national leader in computer technology, pharmaceuticals, and medical supplies. In addition, The Bay Area also sustains a number of world-class universities, which help support the region’s growing pool of skilled labor. Major undergraduate universities in the Bay Area include UC Berkeley, Stanford University, and San Francisco State University. Additionally, top graduate programs, including those in medicine, law, and business at these schools and others, contribute to the highly educated workforce. The large collegiate and high-tech base in the Bay Area also fosters a strong concentration of venture capital firms, fueling innovation and entrepreneurship in the area. Eight of the top 10 venture capital funds are based in the Bay Area. The concentration of top-tier venture capital firms attracts the premier intellectual and entrepreneurial talent to the Bay Area, which has helped to spark growth and diversify the regional economy. While the region is best known for its technology sector, the Bay Area economy is also one of the most economically diverse in the country, with significant activity in the international trade, financial services, business services, and retail sectors. Taking into account both Gross Metropolitan Product and industry-concentration figures, the Bay Area is equally or more diversified than most other major regional economies, including those of New York and Chicago. The area is home to a wide range of employers, including many Fortune 500 firms and a number of other national and regional industry powerhouses:

Company Name Aligent Technologies AMD Apple Inc. Applied Materials Charles Schwab Chevron Cisco Systems Clorox Core-Mark Holding eBay Franklin Resources Gap Gilead Sicences Google Helett Packard

Bay Area Fortune 500 Companies Rank Company Name Intel 375 McKesson 378 NetApp 17 Oracle 251 PG&E Corp 485 Ross Stores 3 Safeway 64 SanDisk 456 Sanmina-SCI 393 Symantec 228 Synnex 353 URS 185 Visa 306 Wells Fargo 73 Yahoo! 10

Rank 51 14 474 82 179 299 63 430 376 391 253 275 281 26 483

San Francisco is affectionately known as “Everybody’s Favorite City,” a title earned by its scenic beauty, cultural attractions, diverse communities, and world-class cuisine.The city serves as a West Coast hub for tourism, technology, banking, and financial services and is one of the most visited cities in the world. Major neighborhoods in the city that have emerged as tourism hubs include Union Square, the Italian-influenced North Beach, Fisherman’s Wharf, the Castro, Japantown, and the Mission District. The city is home to world-class theatre, opera, symphony, and ballet companies and often premieres Broadway-bound plays and cutting-edge performing arts. San Francisco is also one of America’s greatest dining cities; its diverse cultural influences and proximity to fresh ingredients along with the competitive creativity of its chefs result in unforgettable dining options throughout the city. San Francisco consistently ranks as one of the top tourist destinations in the world. In 2013, San Francisco hosted 16.9 million visitors. Visitor spend was $9.3 billion up from 2012 by 2.3%. On an average day there were 134,231 visitors spending $25.7 million daily. This level of activity makes tourism one of the city’s most powerful economic drivers, supporting an estimated 76,834 jobs with an annual payroll of nearly $2.31 billion. Below is a summary of San Francisco’s key tourist attractions and their distance from the Hotel: Attraction

Distance From Hotel Zephyr

Fisherman's Wharf

<1 block 1 block 3 blocks 3 blocks 3 blocks 0.5 mile 0.5 mile 1 mile 1 mile 1 mile 1.5 miles 1.5 miles 2.5 miles 3.5 miles 4 miles 4.5 miles

Pier 39 Powell/Mason Cable Car Line The Cannery Anchorage Square Ghirardelli Square Lombard Street Chinatown Coit Tower Nob Hill Union Square The Ferry Building Presidio of San Francisco AT&T Park Golden Gate Bridge Haight-Ashbury

The city of San Francisco is also proximate to a number of regional attractions, such as the wine growing regions of Napa and Sonoma, the quaint coastal towns of Sausalito, Half Moon Bay and Santa Cruz, and numerous national parks in the surrounding areas. The convenient accessibility to these destinations from San Francisco contributes to the area’s popularity as a leisure destination for both domestic and international visitors. The Moscone Center is located two miles south of the hotel. It is California’s largest convention center and exhibit hall and is easily accessible from the hotel via the Powell/Mason cable car line. The center currently has over two million square feet: 700,000 square feet of exhibit halls and 123,000 square feet in pre-function lobbies and 106 meeting rooms. To meet increasing demand, the Moscone Center announced a $500 million expansion project that will add an additional 200,000 square feet of space.

The strength of the San Francisco business sector can be seen in the performance of the cityâ&#x20AC;&#x2122;s office space leasing market. The Hotel is located just a mile north of San Franciscoâ&#x20AC;&#x2122;s central business district, which comprises over 49 million square feet of office space. The San Francisco office market is seeing a very strong recovery bolstered by a growing tech industry and increased foreign San Francisco is home to a number of large and prominent companies, and the following table lists the largest employers in San Francisco: San Francisco's Largest Employers Company Name Employees City and County of San Francisco 26,182 University of California, San Francisco 22,493 Kaiser Permanente 21,789 University of California, Berkeley 21,341 State of California 16,436 Wells Fargo Bank 15,172 Safeway Inc. 13,661 Stanford University 12,614 U.S. Postal Service 11,043 Contra Costa County 9,800 San Francisco Unified School District 9,157 Alameda County 8,800 PG&E Corp. 8,610 Genentech Inc. 8,600 Oracle Corp. 7,000 Lawrence Livermore National Laboratory 6,700 Chevron Corp. 6,395 John Muir Health 6,248 California Pacific Medical Center 6,200 Gap Inc. 6,000 County of San Mateo 5,985 City of Oakland 5,082 San Francisco Municipal Transportation Agency 4,900 Alta Bates Summit Medical Center 4,878 Oakland Unified School District 4,496 Source: San Francisco Business Times Book of Lists 2013 (2012 data), ranked by number of employees

SAN FRANCISCO AREA AIRPORTS San Francisco International Airport is an international airport located 13 miles (21 km) south of downtown San Francisco, California, near Millbrae and San Bruno in unincorporated San Mateo County. It has flights to points throughout North America and is a major gateway to Europe and Asia. SFO is located 16 miles south of Hotel Zephyr at Fisherman’s Wharf. SFO is the largest airport in the Bay Area and the second busiest in California, after Los Angeles International Airport. In 2013, it was the seventh busiest in the United States and the twenty-second busiest airport in the world by passenger count. It is the fifth largest hub for United Airlines and functions as United’s primary transpacific gateway. It also serves as Virgin America’s principal base of operations. It is the sole maintenance hub of United Airlines, and houses the Louis A.Turpen Aviation Museum. SFO is owned and policed by the City and County of San Francisco, but is actually in San Mateo County. Between 1999 and 2004 the San Francisco Airport Commission operated city-owned SFO Enterprises, Inc., to oversee its business purchases and operations of ventures such as operating Honduran airports. Busiest International Routes from San Francisco January to December 2013 Rank Airport Passengers Change from 2012/2013 Carriers 1 London (Heathrow), United Kingdom 952,129 Increase 01.4% British Airways, United, Virgin Atlantic 2 Hong Kong, Hong Kong 868,017 Decrease 01.0% Cathay Pacific, Singapore Airlines, United 3 Seoul (Incheon), South Korea 717,393 Decrease 00.8% Asiana, Korean Air, Singapore Airlines, United 4 Frankfurt, Germany 639,685 Increase 02.8% Lufthansa, United 5 Tokyo (Narita), Japan 606,217 Increase 00.4% All Nippon, United 6 Taipei (Taoyuan), Taiwan 540,878 Increase 07.2% China Airlines, EVA Air 7 Vancouver, Canada 519,758 Increase 01.0% Air Canada, United, WestJet 8 Beijing (Capital), China 419,384 Increase 03.7% Air China, United 9 Paris (Charles de Gaulle), France 411,071 Increase 024.7% Air France, United, XL Airways 10 Toronto (Pearson), Canada 362,926 Decrease 010.4% Air Canada

Rank 1 2 3 4 5 6 7 8 9 10

Busiest Domestic Routes from San Francisco July 2013 - June 2014 City Passengers Top carriers Los Angeles, California 1,706,000 American, Delta, Southwest, United, Virgin America Chicago-O'Hare, Illinois 1,135,000 American, United, Virgin America New York-John F. Kennedy, New York 1,002,000 American, Delta, JetBlue, United, Virgin America Seattle-Tacoma, Washington 879,000 Alaska, Delta, United, Virgin America Las Vegas, Nevada 828,000 Southwest, United, Virgin America Denver, Colorado 789,000 Frontier, Southwest, United Newark, New Jersey 729,000 United, Virgin America Dallas/Fort Worth, Texas 718,000 American, United, Virgin America San Diego, California 713,000 Southwest, United, Virgin America Boston, Massachusetts 606,000 JetBlue, United, Virgin America

Oakland International Airport (IATA: OAK, ICAO: KOAK, FAA LID: OAK) is a public airport five miles south of downtown Oakland, in Alameda County, California, United States. It is owned by the Port of Oakland. It is one of three international airports in the San Francisco Bay Area. The airport has passenger service to destinations in the United States, as well as Mexico and Europe. Cargo flights fly to destinations in the United States, Canada and Japan. OAK is the closest airport to the San Francisco financial district—both geographically and by public transit. Oakland is a focus city for Southwest Airlines and Allegiant Air. As of July 2013, Southwest has 108 daily departures on peak-travel days of the week. Alaska Airlines combined with sister-carrier Horizon Air has been the secondbusiest carrier at OAK through 2013. Beginning January 2014, Delta will overtake Alaska as OAK’s No. 2 carrier. The top five airlines by passenger count between February 2012 – January 2013 were Southwest Airlines (69.90%), Alaska Airlines (7.22%), JetBlue Airways (4.99%), Allegiant (3.11%), Skywest (2.77%). Between February 2012 and January 2013, 9,650,000 people traveled through OAK. Passengers at the airport peaked in 2007 at 14.6 million and declined to 9.3 million in 2011. An advantage of OAK over SFO is OAK’s history of a high, on-time arrival percentage, despite many days of rainy and foggy weather in each city. In 2009 OAK had the highest on-time arrival percentage among the 40 busiest North American airports.

Rank 1 2 3 4 5 6 7 8 9 10

City Los Angeles, California Las Vegas, Nevada Seattle/Tacoma, Washington Burbank, California San Diego, California Phoenix, Arizona (PHX) Santa Ana, California Portland, Oregon Salt Lake City, Utah Ontario, California

Busiest Domestic Routes from Oakland August 2013 - June 2014 Passengers Top carriers 477,000 Delta, Southwest 405,000 Southwest, Spirit 395,000 Alaska, Southwest 391,000 Southwest 355,000 Southwest 334,000 Southwest, US Airways 293,000 Southwest 255,000 Alaska, Southwest 234,000 Delta, Southwest 234,000 Southwest

SAN FRANCISCO AREA The historic center of San Francisco is the northeast quadrant of the city anchored by Market Street and the waterfront. It is here that the Financial District is centered, with Union Square, the principal shopping and hotel district, nearby. Cable cars carry riders up steep inclines to the summit of Nob Hill, once the home of the city’s business tycoons, and down to the waterfront tourist attractions of Fisherman’s Wharf, and Pier 39, where many restaurants feature Dungeness crab from a still-active fishing industry. Also in this quadrant are Russian Hill, a residential neighborhood with the famously crooked Lombard Street; North Beach, the city’s Little Italy and the former center of the Beat Generation; and Telegraph Hill, which features Coit Tower. Between Russian Hill and North Beach is San Francisco’s Chinatown, the oldest Chinatown in North America. The South of Market, which was once San Francisco’s industrial core, has seen significant redevelopment following the addition of AT&T Park and an infusion of startup companies. New skyscrapers, live-work lofts, and condominiums dot the area. Further development is taking place just to the south in Mission Bay, a former railyard now anchored by a second campus of the University of California, San Francisco. West of downtown, across Van Ness Avenue, lies the large Western Addition neighborhood, which became established with a large African American population after World War II. The Western Addition is usually divided into smaller neighborhoods including Hayes Valley, the Fillmore, and Japantown, which was once the largest Japantown in North America but suffered when its Japanese American residents were forcibly removed and interned during World War II. The Western Addition survived the 1906 earthquake with its Victorians largely intact, including the famous “Painted Ladies”, standing alongside Alamo Square. To the south, near the geographic center of the city is Haight-Ashbury, famously associated with 1960s hippie culture.The Haight is now home to some expensive boutiques and a few controversial chain stores, although it still retains some bohemian character. North of the Western Addition is Pacific Heights, a wealthy neighborhood that features the mansions built by the San Francisco business elite in the wake of the 1906 earthquake. Directly north of Pacific Heights facing the waterfront is the Marina, a neighborhood popular with young professionals that was largely built on reclaimed land from the Bay. In the south-east quadrant of the city is the Mission District—populated in the 19th century by Californians and working-class immigrants from Germany, Ireland, Italy, and Scandinavia. In the 1910s, a wave of Central American immigrants settled in the Mission and, in the 1950s, immigrants from Mexico began to predominate.1 In recent years, gentrification has changed the demographics of parts of the Mission from Latino, to twenty-something professionals. Noe Valley to the southwest and Bernal Heights to the south are both increasingly popular among young families with children. East of the Mission is the Potrero Hill neighborhood, a mostly residential neighborhood that features sweeping views of downtown San Francisco. West of the Mission, the area historically known as Eureka Valley, now popularly called the Castro, was once a working-class Scandinavian and Irish area. It has become North America’s first and best known gay village, and is now the center of gay life in the city. Located near the city’s southern border, the Excelsior District is one of the most ethnically diverse neighborhoods in San Francisco. The predominately African American Bayview-Hunters Point in the far southeast corner of the city is one of the poorest neighborhoods and suffers from a high rate of crime, though the area has been the focus of several revitalizing and controversial urban renewal projects. The construction of the Twin Peaks Tunnel in 1918 connected southwest neighborhoods to downtown via streetcar, hastening the development of West Portal, and nearby affluent Forest Hill and St. Francis Wood. Further west, stretching all the way to the Pacific Ocean and north to Golden Gate Park lies the vast Sunset District, a large middle class area with a predominantly Asian population. The northwestern quadrant of the city contains the Richmond, also a mostly middle-class neighborhood north of Golden Gate Park, home to immigrants from other parts of Asia as well as many Russian and Ukrainian immigrants. Together, these areas are known as The Avenues. These two districts are each sometimes further divided into two regions: the Outer Richmond and Outer Sunset can refer to the more western portions of their respective district and the Inner Richmond and Inner Sunset can refer to the more eastern portions.

FISHERMAN’S WHARF Fisherman’s Wharf is a neighborhood and popular tourist attraction in San Francisco, California. It roughly encompasses the northern waterfront area of San Francisco from Ghirardelli Square or Van Ness Avenue east to Pier 35 or Kearny Street. The F Market streetcar runs through the area, the Powell-Hyde cable car lines runs to Aquatic Park, at the edge of Fisherman’s Wharf, and the Powell-Mason cable car line runs a few blocks away. San Francisco’s Fisherman’s Wharf gets its name and neighborhood characteristics from the city’s early days of the mid to later 1800s when Italian immigrant fishermen came to the city by the bay to take advantage of the influx of population due to the gold rush. One, Achille Paladini, found success wholesaling local fish as owner of the Paladini Fish Company, and came to be known as the “Fish King”. Most of the Italian immigrant fishermen settled in the North Beach area close to the wharf and fished for the local delicacies and the now famed Dungeness crab. From then until the present day it remained the home base of San Francisco’s fishing fleet. Despite its redevelopment into a tourist attraction during the 1970s and 1980s, the area is still home to many active fishermen and their fleets. In 2010, a $15,000,000 development plan was proposed by city officials hoping to revitalize its appearance for tourists, and to reverse the area’s downward trend in popularity among San Francisco residents, who have shunned the locale over the years. One of the busiest and well known tourist attractions in the western United States, Fisherman’s Wharf is best known for being the location of Pier 39, the Cannery Shopping Center, Ghirardelli Square, a Ripley’s Believe it or Not museum, the Musée Mécanique, the Wax Museum at Fisherman’s Wharf, the Aquarium of the Bay, and the San Francisco Maritime National Historical Park. Seafood restaurants are aplenty in the area. Some include the floating Forbes Island restaurant at Pier 39 to stands that serve fresh seafood, most notably Dungeness crab and clam chowder served in a sourdough bread bowl. Some of the restaurants, including Fishermen’s Grotto, Pompei’s Grotto and Alioto’s, go back for three generations of the same family ownership. Other restaurants include chains like Joe’s Crab Shack and Bubba Gump Shrimp Co. Other attractions in Fisherman’s Wharf area are the Hyde Street Pier (part of the San Francisco Maritime National Historical Park), the USS Pampanito, a decommissioned World War II era submarine, and the Balclutha, a 19th-century cargo ship. Nearby Pier 45 has a chapel in memory of the “Lost Fishermen” of San Francisco and Northern California. There is a sea lion colony next to Pier 39. They “took-up” residence months before the Loma Prieta Earthquake in 1989. The sea lions lie on wooden docks that were originally meant for docking boats. Fisherman’s Wharf plays host to many San Francisco events, including a world-class fireworks display for Fourth of July, and some of the best views of the Fleet Week air shows featuring The Blue Angels.

BRAND DIFFERENTIATORS The Z team engaged the services of W20 to perform a series of social graphics to better understand the dynamics of our future customers and the “influential” differentiators of the Hotel Zephyr. Included in this section is a full overview of the process and the findings that will help assist in directing of efforts for success to include marketing and service. The cliff notes for differentiators, target domestic markets, social interaction and customer service activation are as follows: WHAT MAKES A HOTEL UNIQUE? Hotel Zephyr’s main selling points are the hotel’s water front view, socialization aspect and availability of high tech products, but what is important to the hotel’s ideal guest? •

Areas to walk around (13% of reviews) - Reviewers appreciate a surrounding area in which to walk in the evenings and that is in close proximity to attractions such as shopping and the bridges “…Modern interesting and classy decor. Ergonomic chairs. Perfect location for shopping. Very close to Bart station. Excellent restaurants nearby..”

•

Haven of relaxation (13% of reviews) - Patrons prefer a hotel that acts as a haven of relaxation in between excursions to the city. “I just got back from a stay at the hotel and had an amazing time. The staff was extremely helpful, friendly, and professional. The bar/lounge area is great to relax in and the game room upstairs was a lot of fun at night.”

•

Proximity to Attractions (11% of Reviews) - When looking at Hotels like Zephyr customers are looking to obtain proximity to attractions without having to pay the luxury prices of larger hotels. Customers have settled on the Fisherman’s wharf area as the perfect balance of proximity and price. “…So instead of staying in the middle of the city, where limited touristy things are happening and to be seen - why not stay in the middle of it all in hotel…” Source: TripAdvisor. Sample size of 800+ reviews.

THE APPROACH AND WHY •

What? We analyzed millions of travel-related online conversations to understand which amenities the ideal guest talks about most and what language they use to describe their travel experiences.

•

So what? Uncover specific brands and sub-topics that resonate with the ideal guest specific to Hotel Zephyr’s stated differentiators Social Interaction, Technology.

Geographic

Psychographic

Sociographic

TARGET MARKET

Behavioral

Demographic

METHODOLOGY AND APPROACH •

Needs, Passion Points & Behaviors of Domestic Hotel Guests - What are our consumers looking for in a San Francisco boutique hotel experience? Benefits? Activities? Amenities? Ambiance?

•

Competitive Landscape - What are guests saying are important about competitive hotels in the San Francisco areas?

•

Expected Hotel Search Journey - What is our customer’s search journey? Online behaviors?

•

Online Influencers - How/where can we reach our customers online and offline? How do we create a hotel that will inspire expected customers to come?

•

Needs, Passion Points & Behaviors of Domestic Hotel Guests - 11.2 million conversation from 23k identified “ideal guests” from January 1, 2014 through September 15, 2014. Source: WCG Custom Search Database

•

Competitive Landscape - 800+ online reviews- approximately 200 hotel reviews from Hotel Zetta Warwick, the W Hotel, Argonaut and Fairmont. Source: TripAdvisor Review Website

•

Expected Hotel Search Journey - 9.3 million search keywords that drive to Zetta and Warwick hotel websites. Source: Google AdWords, US-only

•

Online Influencers - 800+ online reviewers- each reviewer was ranked by seniority, number of hotel reviews and most helpful votes. Top 3 @handles from the key affinities of 60k individuals - 6k followers of 10 upscale travel and transportation Twitter outlets. Source: TripAdvisor Review Website & Social Graphics Study

TARGET DOMESTIC MARKETS Hotel Zephyrâ&#x20AC;&#x2122;s target domestic markets are largely in metropolitan cities that appeal to consumers who are primarily young, largely single people and couples. These consumers are most interested in the hippest and trendiest happenings and venues in the area. City

# of Reviewers by Location

1. San Francisco, California

2. Los Angeles, California

3. New York, New York

4. Boston, Massachusetts

5. Dallas, Texas

6. Chicago, Illinois

7. Houston, Texas

8. Seattle, Washington

9. San Diego, California

10. Phoenix, Arizona

Top Topics in Social Interaction: Games and Activities TOP TOPICS IN SOCIAL INTERACTION: ANDwithACTIVITIES • Zephyr’s ideal customers frequently mention ping pong and board GAMES games in conjunction drinking socially. Board games they mention the most include Jenga, Monopoly, and chess.

• Theideal hotel’s customers largely in games a playroom thatwith has classic and newgames arcade gamesthe (e.g. • Zephyr’s customers frequentlyare mention ping interested pong and board in conjunction drinking socially. Board they mention most include Jenga, Pacman), where adults can play and drink at the same time. Monopoly and chess. • Zephyr’s guests are more likely tune inthat tohas sports, such American movies, if shown onsame time. • The hotel’s customers are largely interested in ato playroom classic and new as arcade games (e.g.football Pacman),and wherenot adults can play and drink at the a screen at more the bar the courtyard. • Zephyr’s guests are likelyor to at tune in to sports, such as American football and not movies, if shown on a screen at the bar or in the courtyard. DEEP DIVE INTO “ACTIVITIES/GAMES” CONVERSATION

Deep Dive into “Activities/Games” Conversations

Zephyr’s customers to unwindprefer in the game room, watch sports/movies and partake social drinking games. Zephyr’sprefer customers to unwind in the game room, watchinsports/movies, and partake in social drinking games

What kind of social drinking games Why are Zephyr’s customers do Zephyr’s customers participate in? interested in a game room?

47%

36% 9%

Ping Pong

Board games

Themed drinking games

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

63%

Play arcade games

Availability of food and alcohol

Socialize with other guests

Source: WCG Internal Custom Search (January to September 2014). Sample size of 23K travelers.

Percentage of “sports/movies” conversations

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

353 mentions

626 mentions Percentage of “game room” conversations

Percentage of “social drinking game” conversations

761 mentions

Which sports/movies are our customers most interested in?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

27%

Football

11%

10%

Unlikely to watch movies showing at the bar

Music Video (e.g. MTV)

Top Topics in Social Interaction: Bars/Lounges TOP TOPICS IN SOCIAL INTERACTION: BARS AND LOUNGES • Guests who attend happy hour are most interested in deals and promotions being offered (food and drink discounts), as well as hosted events (corporate functions, singles events).

• Zephyr’s customers in wine than beer cocktails), and prefer to drink wine where there • Guests who attend happy hourare are interested most interested in deals(more and promotions beingoroffered (food and drink discounts), as well as hosted events (corporate functions, singles events). is also food served. • Zephyr’s customers in wine (morespace than beer or cocktails), and preferoftothe drinkviews. wine where there is customers also food served. • Guests enjoyareainterested rooftop/outdoor primarily because Zephyr’s can also enjoy

sipping in thespace outdoor courtyard, the view ofcustomers the bay can surrounding them. • Guests enjoy acocktails rooftop/outdoor primarily because ofwith the views. Zephyr’s also enjoy sipping cocktails in the outdoor courtyard, with the view of the bay surrounding them.

Deep Dive into “Bars/Lounges” DEEP DIVE INTO “BAR/LOUNGES” CONVERSATION

Conversations

Hotel Zephyr’s customers are interested in bars/lounges that offer happy Zephyr’s customers are interested in bars/lounges that offer happy hour, wine and rooftop/outdoor space. hour, wine, and rooftop/outdoor space

Why are Zephyr’s customers interested in happy hour?

Why are Zephyr’s customers interested in drinking wine?

24%

Deals & Promotions

24%

Hosted Events

14%

Interactive Games

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

40%

Drinking wine at wine bars that also serve food

18%

16%

Relaxing atmosphere

Host meetings and celebrate events

Source: WCG Internal Custom Search (January to September 2014). Sample size of 23K travelers.

Percentage of “rooftop/outdoor space” conversations

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

324 mentions

2.1K mentions Percentage of “wine” conversations

Percentage of “happy hour” conversations

2.7K mentions

Why are Zephyr’s customers interested in rooftop/outdoor space?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

37% 20% 8% View from the top

Specialty Cocktails Served

Outdoor Events

TOP TOPICS IN TECH: APPLE

When talking about Apple tech Zephyr’s ideal customers frequently mention:

Various apps for the iPad, the versatility of the iPad mini and the new availability of Microsoft Office for the iPad.

•

When talking Apple tech, Zephyr’s ideal customers frequently mention: • about When talking about apps the ideal customer mainly discusses social apps such as Facebook, Instagram, and Twitter. They also mention the Microsoft Office app and mobile viewing • Various apps for the iPad, the versatility of the iPad mini and the new availability of Microsoft Officeapps for thesuch iPad. as Netflix, CNN, and watch

ESPN.

• When talking about apps the ideal customer mainly discusses social apps such as Facebook, Instagram and Twitter. They also mention the Microsoft Office app • mobile Mobile viewing focuses around movie watching conversation and the type of device the customer is and viewing apps suchinasgeneral Netflix, CNN and watchESPN.

using to view video content such as the iPad or iPhone.

• Mobile viewing in general focuses around movie watching conversation and the type of device the customer is using to view video content such as the iPad or iPhone. DEEP DIVE INTO “APPLE” CONVERSATION Deep Dive into “Apple”

Conversations

Major Apple conversations relevant HotelonZephyr are centered iPad, Apps, and mobile viewing. Major Apple conversations relevant to Hotel Zephyr are to centered three elements: iPad, appson andthree mobileelements: viewing.

7.5K mentions

80%

80% 60% 40%

60%

24%

40%

23%

20%

What aspects of mobile viewing are Zephyr customers interested in?

2.8K mentions

100% Percentage of "Apps" Conversations

Percentage of "Ipad" Conversation

100%

What apps are Zephyr’s customers interested in?

4% Apps

iPad Mini

Microsoft Office for the iPad

20% 0%

10% Social Media Apps

Game Apps

Microsoft Office

Video/ TV Apps

Source: WCG Internal Custom Search (January to September 2014). Sample size of 23K travelers.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Percentage of "Mobile Viewing" conversations

Why are Zephyr’s customers interested in iPads?

546 mentions

25%

Movies

11%

13%

Watching on iPad

Watching on iPhone

DELIVERING EXTRAORDINARY EXPERIENCES HOW CAN HOTEL ZEPHYR DELIVER THE MOST EXTRAORDINARY EXPERIENCES TO THEIR GUESTS? Hotel Zephyr should focus on the top 5 most reviewed and discussed hotel features among competitors including location, hotel staff, room amenities, availability of transportation, and the hotel lobby bar and lounge. • Going above and beyond job detail to help accommodate guests. • Attentiveness to guests’ specific needs and creating a personal individual connection with each guest, i.e. creating a friendship with each guest to the point of calling them by their first name. • Providing amenities if a mistake is made such as free coupons to a wine tasting or upgrading a room free of charge if there is a mistake in booking. •

Extensive valuable knowledge about the surrounding area from all members of the staff from concierge to doorman.

•

Friendliness (26% of Reviews) - Customers appreciate the staff taking the extra time to be guests’ friends. In particular, normal contributors and first time contributors appreciate staff recognizing that every guests’ needs are different and that each interaction with a guest should be unique and personable. “I was there this past holiday weekend for two nights and the experience was fantastic from top to bottom. The man who helped us with our luggage was super nice. Caroline, at the front desk, was amazing”

•

Promptness (29% of Reviews) - Clients appreciate and notice prompt quick service from the staff regardless of how busy the hotel is and or the difficulty of the request. “The lobby is beautiful. - Free wifi access throughout the whole building - Very prompt and quick room service…”

•

Assistance/Attentiveness (8% of Reviews) - Top contributors, senior reviewers, and senior contributors particularly enjoy when staff go beyond the job description with out prompting such as providing complimentary drinking vouchers when making a mistake. “Very beautiful property, extremely friendly staff, especially at Concierge desk where despite the long queue they always notice one.”

ACTIVATE EXPERIENCE THROUGH KEY AMENITIES • Incorporate a bar or lounge indoor or outdoor area with a trendy/edgy atmosphere for guests to unwind or to kick off a night out. Guests can indulge in a variety of wine selections, cocktails and listen to a DJ spin in the background. • Provide a ticket or transportation service to various events happening near the area, such as for music festivals in Fort Mason or in the Marina Green. • Adopt new technologies such as the Apple iPad with free access to work, video, and sports apps such as Netflix, YouTube, Microsoft Office, and ESPN Watch, and have employees (e.g. concierge) utilize the Google Glass as a tool to provide better and more tailored service to guests’ needs. • Offer video-game consoles, such as the Xbox One for an “all-in-one” guest entertainment in the comfort of their own hotel room, featuring complimentary fitness and gaming apps, and TV channels accessed through the console. • Emphasize central location of Hotel Zephyr in terms of upscale food and dining, particularly seafood restaurants with the best views of Pier 39 and Alcatraz Island.

CORPORATE IDENTIT Y

BRAND AND VISUAL IDENTITY This is your logo.

CORPORATE IDENTIT Y CORPORATE IDENTIT Y

It was a long and beautiful journey to get This is your logo. here. Everyone’s This is your logo. This is yourexcited. logo.So much to love

PRIMARY LOGO

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PRIMARY LOGO

PRIMARY LOGO W/ LOCKUP

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BRAND W/ LOCKUP BRAND ICONICON W/ LOCKUP

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N S I S F R F R ACNI C A N

I F R A N C

R F

F I S

N ’ S M A

S N

R F R F

F I S

N ’ S M A M A SN ’W R E

R F

F I S

in suchjourney a concise little picture. But like It was a long and beautiful to get It was a longexcited. and beautiful journey get journey Itevery was anewborn, long and to getIf isto totally defenseless. here. Everyone’s So much toitbeautiful love here. Everyone’s excited. SoBut much love here. Everyone’s excited. So much to love you don’t protect it,toit’ll grow up spoiled in such a concise little picture. like in such a concise little But likepicture. such apicture. concise little like and totally disappoint quick every newborn, it isin totally defenseless. If you. ThisBut every newborn,every it is totally defenseless. If newborn, itisismeant totally to defenseless. If guide keep you from you don’t protect it, reference it’ll grow up spoiled you don’t protect it, it’ll grow up spoiled you don’t protect it, it’ll grow up spoiled making those early mistakes that create and totally disappoint you. This quick and totally disappoint you. This quick and totally disappoint you. This quick unhappy, neurotic logos. reference guide is meant to keep you from reference guide is meant to keep you from guidecreate is meant to keep you from making those early reference mistakes that making those early mistakes that create Don’t worry. There’s a deeperthat identity making those early mistakes create unhappy, neurotic logos. unhappy, neurotic logos. guide on the way. This is meant standards unhappy, neurotic logos. to hold you over until then. Don’t Don’t worry.worry. There’s a deeper identity There’s a deeper identity Don’t worry. There’s a deeper identity standards guide on the way. This is meant standards guide on the way. This is meant standards guide on the way. This is meant to hold then.then. Questions? Call your Account Manager toyou holdover you until over until to you over untilatthen. orhold BrewLife central 415-362-5018. things take more explaining; Questions? Call your Account Manager Questions? CallSometimes your Account Manager Questions? Call yourlogo Account other a new asset Manager must be or BrewLife central at 415-362-5018. or BrewLife central attimes 415-362-5018. or BrewLife central at 415-362-5018. created. We’re happy to do either. Sometimes thingsthings take moremore explaining; Sometimes take explaining; Sometimes things new logo must be more explaining; other other timestimes a newa logo assetasset must be take other times new logo asset must be created. happy toeither. do aeither. created. We’reWe’re happy to do created. We’re happy to do either.

I F R A N C

CORPORATE IDENTIT Y

Logo Clear Space & Size Clear space Clear space requirements are provided to preserve the integrity of the Zephyr logo. Clear space is the area immediately surrounding the logo. This area must remain clear of elements that might compromise logo legibility. No graphics, type, photography or illustrations should violate the clear space. The ‘porthole’ of the wordmark provides the basic measurement of the proportional system that determines the clear space.

CLEAR SPACE

Minimum Size To make sure it’s legible, the logo must be used in printed and electronic media at a height no smaller than 0.25 inches or 24 pixels.

BrewLife

0.5" or 48 Pixels

MINIMUM SIZE

A quick reference guide for a well-adjusted logo.

CORPORATE IDENTIT Y

Unacceptable Logo Usage The Zephyr logo is an original design. The logo must not be altered, redrawn or modified in any way. Use only authorized logo artwork. The following examples show a few practices to avoid when implementing the logo.

Graphic

Here are a few no-noâ&#x20AC;&#x2122;s to get used to: Headline text

1. Do not change the color. 2. Do not stretch it any which way.

3. Do not alter even a tiny portion of it. 4. Do not crowd the logo with bells & whistles. 5. Do not apply a visual effect. 6. Do not place the logo on a complex, textured or patterned background that makes it tough to see.

BrewLife

A quick reference guide for a well-adjusted logo.

CORPORATE IDENTIT Y

Color Palette Color can be tricky. These guidelines will help you understand which logo asset to use and when.

SCREEN DISPLAY

PRIMARY PALETTE

PMS

CMYK

RGB

WEB (HEX)

71/66/65/72

34/34/35

#222121

1785 C

0/86/55/0

225/72/91

#FF485B

137 C

0/42/100/0

255/163/0

#FFA300

247 C

29/94/0/0

193/20/161

#C114A1

801 C

100/17/9/0

0/152/206

#0097CD

375 C

46/0/100/0

148/213/0

#94D500

Neutral Black

Use the PMS logo assets whenever possible because they look great. More often though, you’ll be using a CMYK, RGB or WEB (HEX) asset. When printing on paper use the CMYK logo assets. For screen display use RGB or WEB (HEX). By the way, if you’re printing this page in-house, beware: color accuracy can vary greatly from printer to printer (just as it does from screen to screen). Don’t make any big color decisions based on a potentially unfaithful color printout.

Neutral Black

Coral

Sunset

Plankton

Tidal

Kelp

Don’t be shy. Call BrewLife for guidance if this seems like incomprehensible technobabble. 415-362-5018

BrewLife

A quick reference guide for a well-adjusted logo.

BRAND EXPERIENCE From creating the essence and energy of the brand to the delivery of the service experience at every guests touch point, the journey will bring us to the: Zephyr Experience! ZEPHYR SERVICE CULTURE- OUR MISSION STATEMENT: Unique + genuine + fresh + fun + irreverent

Relevant approachable experience

ZEPHYR EXPERIENCE

Creating connections, defining experiences through a very dynamic and energetic service culture that is unique, genuine, fresh, fun and irreverent. Always hip and current, we will deliver a memorable experience that is relevant and approachable: the Zephyr experience. DELIVERING THE MISSION: Defining our brand! • Creating personal connections: A must for all our Zephyr team members. Since the moment we pick up the phone to the last guest departing the hotel we will work on creating individualities only found at our hotel. • Finding the unexpected: From finding out your favorite colors & tastes to ´´what´s the wildest dream you have while staying at Zephyr´´, the Z-team will deliver the unexpected: You´ve been Zephyr´d!! • The Deck experience!! – 11,600 square feet of interactions! Our front of the house team will be on constant movement through our front office door and deck positions engaging guests through mobile check ins, elevator games, facts of the city, Zephyr clues, and interactive card games where guests will earn game points to be redeemed at our deck: Come play with us! Engaging of the house!! Arrival/ Departure cardssuites, adding fun nametags referencing nautical pop • Creating our individuality: Fromback naming our hotel wings and left from housekeeping to maintenance: Connecting characters, movies and comics to modern uniforms that are versatile and unique: welcome to Z-Cool!! guests with our Z-Teams.

• Relevant approachable luxury: Google glasses, Smart TV, Upscale unique amenities, Pre-arrival concierge assistance, Room service apps, fluid business center, anything tech, anything now: welcome to ´´Fluid Zephyr´´! All tech, all service at your fingertips.

Zephyr Google look!

Engaging back of the house!! Arrival/ Departure cards left from housekeeping to maintenance: Connecting guests with our Z-Teams.

´´LIVING ZEPHYR´´ • Through the usage of apps we´ll keep our guests up with the latest news from the city to enhance their stay. Engaging back of the house!! Arrival/ Departure cards

• Shows, restaurant nights, discounts coupons with suggestions based on their profile preferences. left from housekeeping to maintenance: Connecting guests our community Z-Teams. • Email and with twitter for confirmed reservations: open before arrival to start the Z- experience and the Z –team connections. • Pre-order amenities link based on guest preferences.

Zephyr Google look!

CREATING THE ZEPHYR LOOK

PROPOSED ORG CHART

Changes in Staffing levels by Department

ZEPHYR TRAINING- Creating the team: • Engraining the brand culture and language to our Z-Team. • Choosing training partnership • Z-language: • You’ve been Zephyr!

• Z-duties.

• Come and play with me! Come and play with us!

• Z- team

• Z-living • That´s Z-cool! Continue the development and evolution of the brand identity, the entire “Zephyr feel” with W2O based on “white board sessions” after analytics and conversations blueprints have been identified. ZEPHYR PROCESSES Finalizing all hotel processes to bring the brand identity to life!! Pre-arrival experience, arrival experience, service during the stay and departure: putting in place all Z touch points to ensure Zephyr experience is delivered 100% of the time. This is the final step for us. We´ll create and train step by step once the identity has been developed to its full potential.To occur just prior opening date (60 days out).

F&B EXPERIENCE

www.delarosasf.com

www.superdupersf.com

MARKETING AND COMMUNICATIONS Marketing Communications

The first step will be to determine the audience. Hotels independent or branded have to determine the demographic they will appeal. Determining the demographic appeal depends on the location.

The first step will be to determine the audience. Hotels independent or branded have to determine the demographic they will appeal. Location Determining demographic appeal depends on the location. – A the variety of questions should be answered to create the marketing communication. Is it an urban location or in a gateway city. What destination drivers exist around the hotel. Based on these • Location – A variety of questions should be answered to create the marketing communication. Is it an urban location or manycity. demographic groupsdrivers can we appeal to. Can we drive weekend and weekday business groups can we in ahow gateway What destination exist around the hotel. Based on these how many demographic •

•

appeal to. Can we drive weekend and weekday business? The audience then determines how we maximize delivery across channels. We determine the audience Audience The audience determines how we maximize delivery across channels. We likely determine the audience through– social listening.then Social listening begins with the demographics identified as most to through social listening. Social listening begins with the demographics identified as most likely to frequent this property. frequent this property. From here we closely examine our demographic group to determine other From here that we closely examine our demographic group toisdetermine brands thataffinity are most likely to identify with brands are most likely to identify with them. This importantother because brand typically them. This is important because brand affinity typically denotes long term customers. We can accomplish this by using indenotes long term customers. We can accomplish by using in-house tools such as our Meltwater News rd Meltwater News subscription or 3rd party companies with regional exposure such as True Lens. house tools such as our subscription or 3 party companies with regional exposure such as True Lens.

Looking at the competition – We want to attract customers similar to those that follow our brand as well as expanding our reach in different circles. To do this we determine the brands or competitors and audience we admire and or attract a high rate of social media followers and engage users. We adapt our strategy to fit their needs and attempt to develop a Looking at the competition. We want to attract customers similar to those follow our brand as well as propriety audience. In our search we look at keyword matches across a variety of sources and profiles. We pull keywords expanding our reach in different To do this matches. we determine thethis brands or competitors by the sentence they were used in orcircles. for exact phrase We pull data across all digital and media including online audience we admire and or attract a high rate of social media We followers and Wefor adapt our hotels blogs, digital newspapers, magazines, Facebook and Twitter dialogue. can also doengage similar users. searches competitor to determine consumer don’t like about their propertyaudience. in real time trailingwe12look months. strategy towhat fit their needs like andor attempt to develop a propriety In or ourforsearch at keyword matches across a variety of sources and profiles. We pull keywords by the sentence they were used in or for exact phrase matches. We pull this data across all digital media including online blogs, digital newspapers, magazines, Facebook and Twitter dialogue. We can also do similar searches for competitor hotels to determine what consumer like or don’t like about their property in real time or for trailing 12 months.

Where is our audience or target market coming from? Where do they spend their time online? Who are â&#x20AC;˘ the Where is our audience target coming doorthey spendvisit their time online? Who are the top refers? top refers? Do they or come for market other sites and from? social Where channels do they the page direct? Do they come for provides other sites social channels or do they visitsources the page Facebook insights an excellent Facebook insights anand excellent breakdown of referral todirect? a hotels fan pages. Thisprovides also breakdown of referral sources to a hotels fan pages. This also aids or confirms the geographic origin of our customer aids or confirms the geographic ofcoming our customer allowingdousthey to develop geo-targeted content Where is our audience or targetorigin market from? Where spend their time online? Whoinare allowing us to develop geo-targeted content in both earned and paid social media posts both earned andDo paid social media postssites and social channels or do they visit the page direct? the top refers? they come for other Facebook insights provides an excellent breakdown of referral sources to a hotels fan pages. This also aids or confirms the geographic origin of our customer allowing us to develop geo-targeted content in both earned and paid social media posts

wetoday? look today? Oncemarkets target markets have been defined data collection has begun. How doHow we do look Once target have been defined and dataand collection has begun. How do we look today? Once target markets have been defined and data collection has begun. We review and determine obstacles to maintain the current customer and allow migration of goodwill We review and determine obstacles to maintain the current customercustomer and allow migration of goodwill to the new product. We review and determine obstacles to maintain the current and allow migration of goodwill to the new product. Review and determine obstacles to shifting share from the competition. Using our Review to and determine obstacles to shifting share from the competition. our the new product. Review and determine obstacles to shiftingUsing share from the competition. Using our Review Pro Tool we monitor sentiment data in real time and for the trailing 12 months. we monitor sentiment data in real andtrailing for the Review Review Pro ToolPro weTool monitor sentiment data in real time and time for the 12trailing months.12 months.

We also identify consumers coming from target markets domestic and overseas to monitor their also identify consumers coming from target domestic markets domestic andto overseas totheir monitor their and determine by We alsoWe identify consumers comingbyfrom target markets overseas monitor sentiment sentiment and determine demographic and country toand determine current issues. If possible we sentiment and determine by demographic and country to determine current issues. If possible weof the new brand demographic and country to determine current issues. If possible we include steps in the design and roll out include steps in the design and rollout of the new brand to address and eliminate these negative to address and eliminate these negative sentiment. Wenew also brand highlight to carry over into marketing include steps in the design and rollout of the to positives address and eliminate these negativeof the new brand. sentiment. We also highlight positives to carry over into marketing of the new brand. sentiment. We also highlight positives to carry over into marketing of the new brand.

experience. 3 developers are the opportunity to Bids reviewed compatibility with current from companies similarfor experience. Typically Typically 3 to to 4 4technology developersrequirements are extended extendedand thereferences opportunity to bid. bid. Bids are arewith reviewed for price, price, compatibility with current technology requirements and references from companies with similar requirements. A listcurrent of technology andrequirements marketing partner requirements developed.with similar compatibility with technology and references fromis companies requirements. A list of technology and marketing partner requirements is The website design begins with the RFP to hotel site developers with brand and independent site experience. Typically 3 to 4 requirements. A list of technology and marketing partner requirements is developed. developed. developers extended the opportunity bid.names Bids are reviewed for price, compatibility withcompatibility current technology requirements The are name game begins. Selectingtothe based on popularity, availability and with the and references from companies with similarthe requirements. A listonofpopularity, technology availability and marketing partner requirements is developed. The name game begins. Selecting names based and compatibility with the markets demographics we want appeal to have to be takenavailability into consideration. The nameand game begins. Selecting theto names based on popularity, and compatibility with the markets and we to to to consideration. The name game begins. Selecting the names based on popularity, andinto compatibility with the markets and demographics markets and demographics demographics we want want to appeal appeal to have haveavailability to be be taken taken into consideration. we want to appeal to have to be taken into consideration.

Upon confirmation of the proper name a URL must be selected for online marketing. Again availability Upon confirmation of the proper name aa driver URL be selected for online marketing. and asmust must considered. Google Trends is Again a goodavailability barometer Uponincorporation confirmation ofthe thedestination proper URLbemust must bebe selected for marketing. online marketing. Again availability Upon confirmation of the of proper name a name URL selected for online Again availability and incorporation of and incorporation of the destination as a driver must be considered. Google Trends is a good barometer of worldwide sentiment and test popularity of suggestions and incorporation of the destination as a driver must be considered. Google Trends is a good barometer the destination as a driver must be considered. Google Trends is a good barometer of worldwide sentiment and test popularity of of suggestions. of worldwide worldwide sentiment sentiment and and test test popularity popularity of of suggestions suggestions

Shortly after URL selection an RFP should be issued for Social Media administration. At this point we consider a discovery Shortly after URL selection an RFP should be issued for Social Media administration. At this point we meetingShortly once the vendor is selected.anSelect at leastbe 3 competitor hotelsMedia to audit for competencies. Then determine objectives after URL selection RFP should for administration. At this we consider a discovery meeting once the vendor is selected. Select at least 3 competitor to audit Shortly after URLCreate selection RFPi.e., should be issued issued for Social Social Media administration. Athotels this point point we and niche communities. basicansites Facebook. consider aa discovery meeting once vendor is Select 3 hotels to for competencies. Then determine objectives niche communities. Create basic sites i.e., Facebook consider discovery meeting once the the vendorand is selected. selected. Select at at least least 3 competitor competitor hotels to audit audit Twitter, for andcompetencies. online social presence. Interlink these to the hotel website, other social sites, backlinks and begin optimizing URL, Then determine objectives and niche communities. Create basic sites i.e., Facebook Twitter, and onlineThen socialdetermine presence.objectives Interlink these to thecommunities. hotel website, otherbasic socialsites sites, backlinks and for competencies. and niche Create i.e., Facebook hotel name and contact info. Twitter, and online social presence. Interlink these to the hotel website, other social sites, backlinks begin optimizing URL, hotel name and contactthese info.to the hotel website, other social sites, backlinks and Twitter, and online social presence. Interlink and begin optimizing URL, hotel name and contact info. begin optimizing URL, hotel name and contact info.

Additional Technology Considerations • Email Marketing Automation including retargeting • Pre stay and post stay messaging potentially with marketing offers

• GSS survey’s • Traveler Review monitoring and responding • Adobe Analytics Site Catalyst

• Mobile check in which may include pre stay messaging of room availability • FlipTo a Social Media Tool for Independent Hotels Digital Marketing Considerations • Google Hotel Finder – HPA

• GDS Positioning

• TripAdvisor Business Listing and Check Rates

• GDS CPC ads or Graphical Ad Campaigns

• GDS digital Ads and CPC subscriptions

• Paid Search

• SEO

• Display Re-targeting THE HOTEL

THE WEBSITE BY VIZERGY

SOCIAL MEDIA BY BLUE MAGNET

PUBLIC RELATIONS The team acquired W20/Brewlife as its new Public Relations Partner to help usher in the new Hotel Zephyr in 2015. • W20 will assist in identifying long-lead opportunities through segmentation (real estate, design, hotel industry news, consumer travel, etc.)In conjunction, we will be working alongside Dawson Design Associates for strategic design pitching Key items agreed to that W20/Brewlife will work with the hotel team to facilitate include: • Public relations materials development • Fielding media inquiries • Media outreach

• Proactive pitching/follow-up

• Strategic counsel

• Vetting requests

• Account management

• Monitoring editorial calendars

• Developing media lists

• Press visits

• Identifying targets for pitches PUBLIC RELATIONS MATERIALS DEVELOPMENT The team will continue to work with PR company to materials for use in outreach with the media. These materials will include: • Fact sheets • Hotel information • Corporate/ownership information • Timing/redevelopment/reinvention/architecture information (bringing the hotel to life) • Key spokespeople bios • Development of messaging regarding construction noise, special offers/packages, programming and other miscellaneous topics to ensure that messaging is unified across earned media, shared media and other guest related online channels such as Trip Advisor. • Coordination with Zephyr/Davidson staff and BrewLife brand team to ensure that PR activities and promotional efforts are on strategy. MEDIA OUTREACH To ensure alignment on opportunities, the hotels team will work with the PR firm and complete an ideation session to develop an engagement/editorial calendar identifying opportunities to gain attention in the media through leveraging construction milestones, unique story angles and other developments as appropriate. The calendar created will be a living document that will change each month leading up to the launch date.The initial outline for marketing and media pitch strategies, media targets/ audience for pre-, during and post-launch will continue to be updated and acted upon.

What? Rank online reviewers and assess thought leaders of key affinities by their reach and influence and understand their point of view to engage them with the right engagement at the right time. So what? Identify online influencers that can be used to amplify the Hotel Zephyr message and help reach the right ideal guest.

INFLUENCERS

We the top TripAdvisor responsible having a broad knowledge Weidentified have identified online influencersreviewers/influencers that can be used to amplify the Hotelfor Zephyr message and help reach of thethe right ideal hotel industryreviewers/influencers in order to lead others. guest.and Thetravel top TripAdvisor responsible for having a broad knowledge of the hotel and travel industry. Our goal is to develop a plan of engagement with each of these influencers.

Influencer Name

Area of Focus

Zoom_Gotti

Recent reviewer of the W Hotel. Top contributor in TripAdvisor with 262 reviews (125 hotel reviews) resulting in 265 helpful votes.

jg3arrow

Recent reviewer of the Hotel Zetta. Top contributor in TripAdvisor with 284 reviews (77 hotel reviews) resulting in 167 helpful votes.

ksiddel

Forestvillian

Jeremy R

Recent reviewer of the W Hotel. Top contributor in TripAdvisor with 266 reviews (74 hotel reviews) resulting in 313 helpful votes. Recent reviewer of the Argonaut Hotel. Top contributor in TripAdvisor with 69 reviews (64 hotel reviews) resulting in 209 helpful votes. Recent reviewer of the Argonaut Hotel. Top contributor in TripAdvisor with 71 reviews (66 hotel reviews) resulting in 50 helpful votes.

WHERE CAN HOTEL ZEPHYR BEST TARGET THEIR MARKETING EFFORTS AND OWN THE CONVERSATION? 1. Consider providing amenities and investing in co-brands/partnerships in alignment with the conversation topics that drive highest volume of conversation across online channels – Xbox One, Samsung TV, Google Glasses, Outside Lands, etc. 2. Prioritize the top two experiences that drive top hotel reviews on TripAdvisor – hotel staff and location services – to meet and surpass the needs and expectations of the ideal hotel guest 3. Align website content and messaging according to high-conversion keyword search terms used by Hotel Zetta and Warwick competitors within the “info-gathering” phase 4. Focus online media and re-targeting efforts on identified domains proven to lead hotel guest to a hotel homepage – Sanfrancisco.travel.com, sfgate.com, Modernluxury.com 5. Reach ideal guests by amplifying Public Relations efforts using the right affinity influencers – Jeremiah Owyang, Chris Dixon and Allie Pape

TOP ONLINE SEARCH OPPORTUNITIES FOR HOTEL ZEPHYR 1. Similar to unbranded/boutique hotels, branded hotels are also compared to other large hotel brands that provide a similar offering and experience. Opportunity: Immediately set up Hotel Zephyr in hotel review sites with new feedback so customers can use Zephyr as a direct comparison to hotels they are currently booking. 2. Initial search is driven by larger hotel brand names likely driven by a larger brand following due to the availability of loyalty programs and frequency of deals or discounts offered. Opportunity: Hotel Zephyr can offer last minute discounted hotel rate packages. 3. Customers are likely to search for hotel brands that have establishments available in both domestic and international locations. Opportunity: Endorse search keywords within the stages of info gathering (e.g. discount hotels, boutique hotels) and comparing (e.g. Parc 55 hotel, Fairmont hotel) that will drive customers to conversion/booking. 4. Once the Zephyr website is live, focus on building an organic search ranking by using high-conversion keywords on the Hotel Zephyr website. TOP DOMAINS LEADING TO HOTEL WEBSITES Consider advertising or posting an article in these domains to build buzz around Hotel Zephyr’s official launch. 82% of hotel website shares* are generated by online domains, and only 18% are generated by social media. Domain

Specific Page /Topic

Parent company website (e.g., davidsonhotels.com)

“Dining and nightlife”, special offers, photo gallery

Sanfrancisco.travel

“Best of the Bay”, “California weekend bucket list”, “food and drink” “What’s new in San Francisco”

Sfgate.com

Feature on hotel designer, restaurant/bar openings

Cnn.com/travel

High tech hotels, playful hotels

Sfweekly.com

“Best new hotel bar”

Activetravels.com

Blog post

Bbc.com/travel

“Openings in San Francisco”

Homepage Website

Feature on amenities such as the outdoor courtyard

superfuture.com

Supernews or supertravel – new hotel opening

Modernluxury.com

WHAT? We mapped Hotel Zephyr’s hotel competitors’ – Hotel Zetta and Warwick – customer search journeys online, to uncover search habits, specific keywords, and top outlets visited that ultimately lead a customer to the hotel’s homepage. SO WHAT? Understand which keyword terms the ideal guest uses in their search queries to leverage the same language on your website and in your messaging to strengthen organic search engine ranking.

REVENUE MANAGEMENT STRATEGY The revenue management expectation for 2015 is for significant pricing changes year over year. With the significant capital investment and re-positioning of the Hotel Zephyr, we anticipate significant price increases across all market segments. The competitive set will be updated and inclusive of our most direct competition; The Argonaut, Marriott, Hyatt, Tuscan Inn, Pier 2620 & Sheraton. With a projected ADR increase of 22.6% YOY, the hotel will need to position itself aggressively within the FIT/Wholesale market, manage relationships with OTA’s, ensure content is both updated and relevant as well as media rich, marketing & PR initiatives are developed and implemented across numerous mediums. Systems will be seamlessly installed and efficiently generating rates and availability across all booking channels during the transition process from Radisson to Zephyr. Our group mix of sales will continue to evolve as we move away from a thrifty tour based mix of sales to a more tech friendly corporate environment while also drawing interest from a variety of entertainment segments, incentive travel and high end international tours. Collectively, the group segments will decline 6,900 room nights YOY. All segments will experience declines in business YOY with the primary driver being the total hotel renovations taking place the first trimester. In addition to renovation related losses, the hotel anticipates losing a number of low rate student tour groups and Cirque which will impact the Group Tour and SMERF segments. In 2015, Convention business will be down at the Hotel Zephyr as Oracle and Dreamforce will make up the entirety of the production due to the loss of Diabetes and Hematology. TRANSIENT - RETAIL This segment is now inclusive of all our BAR rated business including both Weekday and Weekend retail rates and all of our OTA business booked retail rates, in addition to both the Rack and Consortia segments. Overall this segment represents 30% of our overall mix of transient business with expected ADR growth of 28% in 2015 and total revenues of $8.2 million. Aggressive optimization helping to increase visibility of our website and booking engine will help to drive both volume and increased ADR to the property allotting for ramp up time in SEO for first and second quarter with maximum growth through the peak seasons of June through October. Within the retail segmentation e-commerce segment reflects all web based booking channels that do not book directly through the brand website including, but not limited to, Expedia.com, Hotels.com, Traveloctiy.com, and Booking.com. This segment has been one of our top producing segments in years past and we anticipate it being our largest segment in 2015 based on our anticipated declines in Preferred business along with the need to drive visibility during the transition to an independent hotel. Consortia, while historically a small segment of our business, is an important piece to the retail mix. This segment will generally yield its strongest results over compressed citywide time periods when hotel compression around the city is high. In general, the TMC/Consortia is primarily made up of business travelers, and with the wharf primarily made up of leisure travelers, this segment generally fills when Union Square and surrounding areas are compressed over city wide dates. We will work to grow this segment targeting the major consortia’s with site visits and targeted GDS marketing. • Lobby for increased star ratings across all channels to support new pricing strategy. • Rational pricing with effort on limiting advance purchase buy down during the peak booking window • Invest in Google HPA & TripAdvisor price check to improve meta-search conversion from these high ranking referral sites. • Run display re-marketing ads targeting travelers searching for accommodations in San Francisco and those with upcoming confirmed airfare to SFO & OAK. • Ensure appropriate SEO is in place to generate enough traffic on Z.com to steal share from the competitive set. • Strengthen relationship with OTA market managers to ensure optimal placement within the highly competitive travel landscape. • Banner advertising for AMX and CWT-ABC. Track promotions and participation in all travel newsletters.

• Focus on monthly GDS campaigns through Travelport, Sabre, Apollo & Amadeus to increase presence and conversion. • Identify new OTA’s in the market that work within the Zephyrs target clientele that will generate additional marketing exposure. AGODA, Tablet Hotels – Jetsetter. TRANSIENT - NEGOTIATED The overall strategy within our corporate transient segment is to drive ADR while working to build relationships for future years. We are looking to eliminate lower rated accounts and work to move all accounts to NLRA in 2015. 2015 is being considered a transition year for our negotiated accounts with construction running through April 2015 and ramp up extending throughout the year, our negotiations for 2016 will allow for additional leverage and growth above and beyond 2015 expectations. In addition, with the lack of a brand and corporate travel perks, most accounts will naturally continue to gravitate towards more established Fisherman’s Wharf brands of Starwood, Marriott and Hyatt. The sales team has been working to identify and target local accounts on the Hotelligence report in an effort to start building relationships and drive weekday business to the hotel. In conjunction with bidding on targeted new local accounts, the revenue team is working on key premium room type strategies by minimizing the quantity of standard rooms allowing better control corporate negotiated business during compressed periods. In 2014, 80% of all hotel guest rooms were coded as standard. The team is working on reclassifications of all of the hotels guest rooms which will coincide directly to the hotel guest room renovations. Once completed, the total amount of inventory assigned to the standard room type category will decrease to a total of 170rooms or 47%. • Maintain consistent contact with existing accounts on a monthly basis to continue the activation process, review production, and invite to entertain. • Conduct monthly strategy sessions to review Hotelligence and prospect new accounts or target past accounts. Simultaneously targeting clients that would be an ideal fit based on travel pattern, concessions and price and overall displacement of higher rated transient and group buiness. • Conduct quarterly audits of GDS and gather client snapshots of bookings to ensure accurate information for future solicitation. • Research local law firms through Ovation Travel/Lawyers Travel and local legal market to uncover opportunities for trials and recruitment. • Sales team will take ownership of gathering information on all occupied buildings in the wharf in an effort to increase business volumes. Master document to be created and solicited off of for business and updated quarterly. List to be cross sell compliant for Catering Events. Sales team to meet with all target buildings management. Establish a preferred rate for the building for the Leasing agency to have for tenants with less than 10 room nights. Add preferred rates to leasing package. • Daily arrival reports to be reviewed each morning by transient team to identify new companies that are staying with hotel. • Utilize in house reports to identify frequent guests and target their company affiliation to solicit for new account opportunities; in addition, review daily arrival reports to identify new companies that are staying with us and ensure they receive customized welcome cards. • Investigate further into UK, Australia, and Spanish markets. Increase awareness of both current brand and begin introducing launch of new hotel in 2015. TRANSIENT - QUALIFIED Consisting of qualified Government rated business and both AAA and AARP. Overall one of the smaller pieces to the transient MOS we expect to grow this segment in the first and second quarters during renovations and need periods. Federal Government has seen significant increase in rate for 2015 maxing out at a per diem of $250.00 per night in peak months will allow for more availability during shoulder and need periods, while State rates will be closed out for much of the year pushing to higher rated segments.

Both AAA and AARP will continue to float at 10% off or our retail rates on average. However, discounting will be manipulated during peak seasons allowing for more availability with higher ADR. • Develop and promote Premier Room Type Trade Up option to yield higher rates. Enable hotel to avoid costly value rates that erode overall net rate. • Promote AAA package including parking to regional drive market of northern, central and southern California. • Promote AARP package including parking to regional drive market of northern, central and southern California. • The Federal Government Per Diem has increased significantly in 2015 which will make this segment much more attractive in the coming year. The property will utilize the government channels during need periods and to create a base on weekdays where compression is not expected. While restricting availability during citywides and other compression dates. TRANSIENT - DISCOUNT In 2015, Discounts represent the largest portion of the transient segmentation making up 33% of total transient room nights. The volume of discount business is fairly indicative of a high demand leisure market. The volume of Discount business will be primarily driven by our OTA channels and the promotional rates needed to attract the leisure consumer, garner preferential placement with our OTA partners and ultimately increase conversion. In addition to our OTA production, advance purchase rates and packages available via Z.com, GDS, Call Center and through our on property reservations team will also funnel to the Discount segment. • Lobby for increased star ratings across all channels to support new pricing strategy. • Increase promotions to targets partners and advertise through new Zephyr website and Social Marketing pages. • Maintain strong relationships with all market managers to ensure offers or merchandised and ranked accordingly. • Invest in OTA banner ads to drive traffic and conversion. • Ensure content is interesting, relevant and graphic rich to drive conversion. • Research opening opaque three days out to be managed within week of arrival and preserve higher rated inventory. • Merchandise custom packages with upgrades qualified with LOS and AP restrictions. • Zephyr core packages; Seasonal packages; Holiday packages. • Develop custom packages with upgrades and test additional packages periodically with LOS and AP options. • Decrease threshold for Opaque rates to increase production over holidays and very low demand dates. Experiment constantly with ideal price points to maximize potential and minimize price regrets over need periods. • Identify new OTA’s in the market that work within the Zephyrs target clientele that will generate additional marketing exposure. AGODA, Tablet Hotels – Jetsetter. TRANSIENT - WHOLESALE The hotel has made considerable efforts the past three years, improving FIT ADR from the low $100’s to a forecasted $194 in 2014. This growth in rate has resulted in declining production over the same time period. While our current pricing is in line and at times ahead of our current competitive set, we will be making aggressive changes in 2015 as we re-position the hotel from Radisson to Zephyr. We anticipate and annualized rate of $225 next year with considerable growth taking place between May and December. All contracts for January through April have been in place for over a year and lack considerable growth. However, this period is when the hotel will be under the heaviest of renovations and this business will likely be a welcome addition. • Ensure Hotel Zephyr is being merchandised properly on both forward facing consumer sites as well as internal agent listings. • Lobby for increased star ratings amongst all partners reflecting updated hotel product and service. • Create quarterly JPEG/PDF for corporate negotiated and FIT accounts that will go directly to past guests and promoted via online tools.

• Monitor pace and develop promotional initiatives on an as needed basis to ensure we exceed our fair share. • Yield the FIT segment during times of high compression to ensure our highest rated and most profitable channels are accessible. • Continue effort to drive accounts to dynamic pricing option. CHANNEL STRATEGIES Brand.com • Develop media rich website and booking engine to drive increased conversion. • Develop and promote packages and promotions attractive to leisure travelers based on length of stay and value inclusions. • Develop customized targeted re-marketing campaign for travelers searching for travel to SF from varying countries (European preferring breakfast inclusions, etc.) and domestic regions (drive market vs. fly market). • Work with data warehouse to collect and maintain all guest history to target past guests with bounce back offers via email and social media. • Develop comprehensive meta-search campaign to compete directly with OTA channels on Google Hotel Finder and TripAdvisor. • Ensure sound SEO strategy improving overall web traffic to Z.com. • Offer customizable packaging exclusively on Z.com. • Ensure social media plan drives all traffic to Z.com. eChannel • Run concurrent profile for both Hotel Zephyr and Radisson leading up to conversion. • Maintain strong relationships with market management teams of all OTA partners ensuring preferential placement. • Invest in travel ads via Expedia affiliated websites and Booking.com. • Develop both international and domestic marketing plans to target travelers via both the package path and room only paths. • Merchandise length of stay and value inclusion offers across all OTA merchants. • Provide direct connect technology to Opera via SiteMinder saving significant transaction fees compared to SynXis. • Research and add new OTA sites that complement the Hotel Zephyr clientele. GDS • Run concurrent profile for both Hotel Zephyr and Radisson leading up to conversion. • Develop GDS CPC campaign via Travelport to promote new hotel via Galileo/Apollo/Worldspan • Develop Amadeus enhanced listing to drive bookings via European travel agents. • Continue Sabre Spotlights campaign with Hotel Zephyr to increase exposure in SF • Enroll in relevant TMC consortia programs via Sabre/SynXis. CRO • Ensure content distributed to offsite call center matches the Zephyr content posted online and distributed publicly. • Organize weekly calls with call center liaison beginning in March to work through challenges and questions. Anticipate weekly calls will last 6 months before moving to a structured monthly call format. • Make quarterly visits to the Dallas, TX call center to ensure proper sales strategy is being followed. • Use quarterly call center visits to share compression calendar, educate on the feature and benefits of the property, and communicate upcoming events. • Develop upgrade incentive similar to in house call center. • Determine conversion, ADR and revenue targets.

Property • Install new ACD system to properly track call accounting and determine the appropriate staffing model to efficiently handle the majority of phone calls. • Hire and train additional reservation sales agents as needed. • Provide reservation sales cross training for PBX & Front Desk agents. • Install Delphi/Opera integration link to improve efficiency of Reservations Sales team. • Provide upgrade incentive plan to drive bookings into our newly defined premium inventory. Hotel Zephyr 2015 Mix of Sales Report 2015 Budget

2015 MOS vs. Last Year Segment

Last Year

Variance to Last Year

Percent Change

Rooms

ADR

Revenue

Rooms

ADR

Revenue

Rooms

ADR

Budget

RNS

ADR

Rev

GROUP - CORPORATE

1,288

196.13

252,618

2,957

160.35

474,163

(1,669)

35.78

($221,545)

-56.4%

22.3%

-46.7%

GROUP - ASSOC/CONV

2,949

353.35

1,042,023

3,455

332.25

1,147,925

(506)

21.10

($105,902)

-14.6%

6.3%

-9.2%

GROUP - GOVERNMENT

125

150.00

18,750

477

168.51

80,381

(352)

(18.51)

($61,631)

-73.8%

-11.0%

-76.7%

GROUP - TOUR/WHOLESALE

7,455

190.51

1,420,271

10,092

170.41

1,719,742

(2,637)

20.11

($299,471)

-26.1%

11.8%

-17.4%

GROUP - SMERF

2,996

181.75

544,533

4,755

166.68

792,541

(1,759)

15.08

($248,008)

-37.0%

9.0%

-31.3%

SUB TOTAL GROUP

14,813

221.31

$3,278,195

21,736

193.91

$4,214,752

(6,923)

27.40

($936,557)

-31.9%

14.1%

-22.2%

TRANSIENT - RETAIL

27,053

305.70

8,270,011

27,697

239.08

6,621,812

(644)

66.62

$1,648,199

-2.3%

27.9%

24.9%

TRANSIENT - NEGOTIATED

3,560

227.52

809,972

6,337

201.73

1,278,350

(2,777)

25.79

($468,378)

-43.8%

12.8%

-36.6%

TRANSIENT - QUALIFIED

9,621

249.82

2,403,552

9,553

209.47

2,001,080

40.35

$402,472

0.7%

19.3%

20.1%

TRANSIENT - DISCOUNT

29,165

236.09

6,885,693

25,241

183.73

4,637,637

3,924

52.36

$2,248,056

15.5%

28.5%

48.5%

TRANSIENT - WHOLESALE

19,987

225.23

4,501,623

21,802

194.70

4,244,886

(1,815)

30.53

$256,737

-8.3%

15.7%

6.0%

SUB TOTAL TRANSIENT

89,386

255.87

$22,870,851

90,630

207.26

$18,783,765

(1,244)

48.61

$4,087,086

-1.4%

23.5%

21.8%

0.00

0.0%

CONTRACT CREW TOTAL ROOMS

104,199

250.95

$26,149,046

112,366

204.68

$22,998,517

(8,167)

46.28

$3,150,529

-7.3%

22.6%

13.7%

OCC/ADR/REVPAR

79.4%

250.95

$199.27

86.7%

204.68

$177.49

-7.3%

46.28

$21.78

-8.4%

22.6%

12.3%

TOTAL PREMIUM MIX

27,053

305.70

$8,270,011

27,697

239.08

$6,621,812

(644)

66.62

$1,648,199

-2.3%

27.9%

24.9%

3,560

227.52

$809,972

6,337

201.73

$1,278,350

(2,777)

25.79

($468,378)

-43.8%

12.8%

-36.6%

58,773

234.65

$13,790,868

56,596

192.30

$10,883,603

2,177

42.34

$2,907,265

3.8%

22.0%

26.7%

TOTAL PREFERRED MIX TOTAL DISCOUNT MIX

400.00 375.00 350.00 325.00 300.00 275.00 250.00 225.00 200.00 175.00 150.00 125.00 100.00

12,000

Room Nights

10,000 8,000 6,000 4,000 2,000 0 CORP

CONV Last Year

GOVT 2015 Budget

TOUR

ADR

Group Room Nights & ADR

SMERF

LY ADR

2015 ADR

30,000

350.00

25,000

300.00

20,000

250.00

15,000

200.00

10,000

150.00

5,000

100.00

ADR

Room Nights

Transient Room Nights & ADR

50.00

0 RETAIL

NEGOTIATED LY RNS

QUALIFIED

2015 RNS

Current Room Inventory

DISCOUNT LY ADR

FIT 2015 ADR

Projected Room Inventory

19% Standard

53%

Premium 81%

47%

Standard Premium

DIRECT SALES STRATEGY While the Tour & Travel trade business continues to adapt and embrace the digital age, traditional booking methods continue to be key as well. As a result, our 2015 sales strategy for Tour Group and Wholesale/FIT continues to be driven by direct sales solicitation, targeted marketing, and beginning in Q4 2014, well-positioned media placement. With a combined budget of $5.95 million, Tour Group and Wholesale/FIT represents 27% of the total number of room nights and 25% of total room revenue in 2015. The direct sales effort for both group and individual leisure travel is led by veteran Tour & Travel guru Bertin Salas, our Director of Leisure Sales. He is assisted on property by two support positions, executive meeting manager Tony Swiecichowski and sales coordinator Sergio Diaz. Providing direct support in the Domestic tour and travel market is Sandi Gorup, Regional Director of Tour Travel. Sandi has presented to call centers and agents of volume produces including AAA of SoCal, American Ring Travel, Bonotel, MLT/Delta Vacations, Mark Travel,Thomas Cook, US Air/American. She represented the hotel at NTA in January, ASTA SoCal Chapter, and IPW. Introducing our nascent brand and new visual identity through carefully crafted digital presentations to our valued tour and travel trade clients worldwide has been the primary focus. We have received overwhelming feedback on our guest first approach and the embracement of the design and its reverence to the local wharf and waterfront environment. Visit California and San Francisco Travel and their fifteen affiliate international offices have been pivotal in assisting our team in presenting the re-imagination of the Radisson Fisherman’s Wharf to the Hotel Zephyr. The following represents key sales missions and events attended in co-op with our proven and treasured partners in which our team has met with over 100 Wholesalers and Tour Operators and over 60 members of the media in digital, print, TV, and radio platforms. • Australia / New Zealand Sales Mission – February 2014 • South American Sales Mission – March 2014 • IPW Chicago - April 2014 • European Sales Mission – June 2014 • Sales mission to Paris, London and Manchester

• Over 60 trade companies visited

• Germany Sales & Media Days - October 2014 • 2014 production YTD – Germany, Switzerland, and Austria • 1,208 room nights

• Total room revenue $286,335

• ADR $237.02 • Trade and media from Germany, Switzerland, and Austria • DerTour

• Feinshcmecker

• Falstaff

• FVW

• DuMont Reise

• SkiPresse

• AMERICA Journal

• Baedecker

• Road Trip

• Radio Energy

• Die Ziet

• arte TV

• Con Circle

• Salzburger

• World Travel Market London - November 2014 • San Francisco Travel New York City Sales Mission – October 2014 • Sales calls to over 20 trade clients • Breakfast with 15 media members • NBC Today Weekend • Forbes Magazine • Travel & Leisure • Family Circle • Meetings & Conventions • Travel Media • SKIFT • San Francisco Travel Copenhagen Sales Mission – November 2014 • 2014 Production YTD 2014 – Denmark, Sweden, Norway, and Finland • 1,342 room nights

• Total room revenue $304,558

• ADR of $226.94 • Sales calls to the three primary travel companies for all of Scandinavia and Finland • Scandinavia Airlines – daily nonstop service Copenhagen to San Francisco • San Francisco Press Panel – San Francisco Travel, SFO, SF Giants, Hotel Zephyr • JP Explored

• Dean Pictures

• Out & About

• Jyllands-Posten

• Highways USA

• Golfbladet

• Horeca News

• 12 Freelance Journalists

• Euroman

• I Form

TECHNOLOGY OPERA Property Management System is fully integrated with all the OPERA modules and offers the most extensive list of certified interfaces in the industry. KEY FEATURES Reservations - features are integrated with other functionality such as profiles, cashiering and deposits. This property management software module provides a complete set of features for creating and updating individual, group and business block reservations, including deposit handling, cancellations, confirmations, wait listing, room blocking and sharing. Rate Management - an extensive set of features for setting and automatically controlling rates, for rate quotation, and for revenue forecasting and analysis to create the most comprehensive rate management system in the industry. OPERAâ&#x20AC;&#x2122;s Property Management Systems interface with OPERA Revenue Management Systems and other major yield management applications.

Cashiering - posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex.

Profiles - complete demographic records for guests, business accounts, contacts, groups, agents and sources. Profiles include addresses, phone numbers, membership enrollments, stay and revenue details, guest preferences and additional data that make reservations handling and many other activities faster and more accurate.

Accounts Receivable - fully integrated with the OPERA Property Management System database and includes direct billing, invoicing, account aging, bill payments, reminder and statement generation, and account research. Old balances from external accounting systems may be entered. Reporting - over 360 separate standard reports. Reports can be customized for each hotel and new reports may be created as needed using OPERAâ&#x20AC;&#x2122;s built-in Report Writer.

Front Desk - handles individual guests, groups and walk-ins, and has features for room blocking, managing guest messages and wake-up calls, and creating and following up on interdepartment advisories, or traces.

Fully Configurable - choice of OPERA features, system behaviors and priorities, and system-wide defaults are controlled by the property. User permissions determine which property management software features may be accessed by each user and user group. Many OPERA screens may be customized by the property. Global Perspective - supports multi-currency and multi-language features to meet the requirements of global operations. Rates and revenues can be dynamically converted from the local currency to any other currency. The appropriate language for guest correspondence can be automatically determined by the guestâ&#x20AC;&#x2122;s profile language; country-specific address formats are supported.

Back Office Interface - revenue transfers, market statistics transfers, daily statistics transfers, and city ledger transfers can be easily made from OPERA Property Management System to a back office system. Rooms Management - handles all facets of room supervision including availability, housekeeping, maintenance and facility management. The Queue Rooms feature of the property management software coordinates Front Office and Housekeeping efforts when guests are waiting for rooms which are not immediately available for assignment. Commissions - calculates, processes and follows up on travel agent and other types of commission payments, either by check or via EFT.

Hospitality System Interfaces - OPERA PMS includes interfaces to hundreds of third-party hospitality systems including yield management, telephone and electronic switching,TV and video entertainment, key lock, restaurant POS, activities scheduling, minibar, and wake-up call systems.

KEY FEATURES Central Reservation System (CRS) Innovative Technology That Keeps your Hotels Connected Sabre Hospitality Solutions’ industry-leading SynXis CRS is at the core of our solutions. Its next generation application framework combines state-of-the-art technology with advanced user features to deliver the hospitality industry’s most flexible and easyto-use reservation and distribution solution. The SynXis CRS is: • Completely Web-based • Easy to implement • Requires minimal hardware • Provides unlimited global access All critical components are redundant to give you peace of mind while its multi-tiered architecture gives it virtually unlimited scalability. The SynXis CRS gives your hotel: • Maximum exposure to millions of travelers by distributing rates and inventory through all distribution channels, online and offline • Connectivity to Global Distribution Systems (GDS), Online Travel Agents, Website and Mobile booking engines, and reservation call centers • An easy-to-use control center to manage availability, rates and content • Sophisticated revenue management tools built right in • Seamless integration with other critical property systems to give you a holistic view of your revenue

KEY FEATURES IDeaS Revenue Management System (RMS) allows you to focus on strategic revenue management in order to drive better revenue. Only IDeaS provides the total solution that delivers sophistication, ease-of-use and comprehensive support in a single, economical software-as-a-service package. Revolutionary Analytics - Powered by SAS, the finest analytics firm in the world, IDeaS RMS features a “best-fit” modeling approach that selects from over 100 proprietary analytical models to produce forecasts quickly, frequently and in great detail. Advanced price sensitivity modeling leverages both historical and future competitive pricing data to drive incremental revenue, and you can run powerful “What-if ” scenarios to test the implications of a potential decision before you act upon it. Impactful Reporting - DeaS RMS makes it easy share findings across your enterprise with presentation-quality reporting. Significant data granularity allows you to monitor data by elements such as market segment, room type, room class, channels, source of business and nationality. To further extend the reporting power of IDeaS RMS, IDeaS Revenue Performance Insights™ leverages SAS® visual analytics to generate visually impactful reports for management-level staff. Efficient, Consistent Monitoring - The system is as user-friendly as it is advanced. Utilizing the Property Group functionality you can easily setup a group properties based on their authorizations. This time-saving feature allows you to efficiently monitor several properties simultaneously. Easy to Learn and Use - An Information Manager, heat map calendars, interactive dashboards and scheduled reports keep critical data front and center, while intuitive workflows with just-in-time learning equip revenue managers at all experience levels to take action. User-defined warnings also monitor occupancy and note future days for which forecasted occupancy is different than expected.

• Web Check-In http://ijws.com/solutions/web-based.php

• Tablet Roving Check-In http://ijws.com/solutions/wireless.php

• Make Travel Easy With Web Check In-Out Shrink lines. Expand smiles.

• Check In-Out with iPad Shrink lines. Expand smiles.

• Check-In Online Guests can select room options and upgrades using their smartphone, tablet or laptop computer.

• Make Hotel Keys With integration into a wide variety of lock systems, RFID keys can be made quickly and easily for the guest.

• Room Ready Notification Guests receive an email or text message as soon as their room becomes available.

• Room Ready Notifications Guests receive an email or text message as soon as their room becomes available.

• Bypass The Front Desk Guests can pick up their room keys at a kiosk or use their RFID loyalty card to go directly to their room.

• Bypass the Front Desk Make checking in and checking out a personal experience between the guest and an iPad equipped agent.

• Check-out Online Guests can view their charges and check-out using their smartphone, tablet or laptop computer.

• Search Reservations with Ease Guests can be found by name, confirmation number, or through swiping a credit card or scanning a barcode.

• Folio Receipt E-mail Guests can receive their final receipt via e-mail as a PDF attachment.

• Folio Review Review a guest’s charges with the option to e-mail the final receipt as a PDF attachment.

• Branded Screens and Emails Every screen and email can be made to look and feel like your existing company website.

• Room Blocking Assigning a room has never been simpler. Room upgrades/ upsells can be tailored to each reservation.

HOTSOS (HOTEL SERVICE OPTIMIZATION SYSTEM) The primary product differentiator in full-service hotels is full service. HotSOS facilitates the entry, routing and track of service request -everything from extra towels to maintenance issues and noise complaints. Requests are routed directly to the correct team members, and follow-through to completion and enforced. The system includes a module from preventative maintenance management, as well as enhanced housekeeping resource management. HotSOS can be integrated with other systems, including PMS and customer-interaction applications,.

Give Them What They Want HotSOS is the ideal tool. A clean room, hot water, and an on-time wake-up call are essentials, but that’s just where the experience begins. Guests want to feel at home. They want to be recognized. They want their needs to be anticipated and requests swiftly executed. With intelligent guest matching, profiling, and stay history features, guest information is always “at your fingertips.” Staff members can anticipate guest needs and be more proactive because unique automation provides the right information, right when they need it. Recognize Guests Everywhere, Every Time Of course, HotSOS delivers the essentials by automating and tracking preventive maintenance, service orders, and guest requests. But, since it is enterprise-enabled, and delivered via the Internet, it also improves the overall guest experience. With a VIP arriving, imagine knowing what kind of room he prefers and his previous experience with other properties throughout the organization. Talk about recognition! Intuitive to Use The Guest Call Assistant screen gives staff a complete view of the guest, including stay history, outstanding incidents and requests, and even guest preferences. The Order Console allows personnel to easily view their department work in a format that makes sense. Easy-to-use screens allow staff to create and update service orders and run reports, keeping training costs to a minimum.

Go beyond the essentials of guest expectation. HotSOS provides market-leading technology to anticipate needs, reduce costs, increase staff productivity, and optimize hospitality service. HotSOS Mobile HotSOS Mobile provides access to HotSOS information in real-time via mobile devices. With a team-based approach, it manages workload with assigned group “buckets” to maximize staff member skill sets and improve productivity and accountability. With customized prioritization capabilities, properties address the most important issues and increase guest satisfaction. Highlighted Features • Multi-lingual IVR • Multi-lingual dispatching and screens • Guest Service Console • Guest profile and stay history • Automated, intelligent business rules dispatching • Automated report delivery • SaaS model

• Key Benefits of HotSOS • Reduce guest call waiting times and execute more efficiently to yield faster responses • “Wow” guests by recognizing repeat business across the organization and anticipating their needs • Reduce labor and maintenance costs while increasing asset life

Alchemy was the legendary practice of turning base metals into gold. Digital Alchemy is a full-cycle customer relationship management system designed to turn customer communications and interaction into marketing and revenue gold. The system enable a full range of customer contacts, from reservation confirmations and per-arrival communications through post-stay surveys. It has options for loyalty programs and a host of other contact points, all of which feed a robust email marketing campaign engine. v eRelationshipTM

eCampaignTM

• Guest profile & preferences management

• Email marketing

• Reservation & scheduling review

• Full-service campaigns

• eConcierge request service

• Self-service campaigns

• Reservation Confirmation

• List management

• Pre-Stay Marketing

• Landing page design/development

• VIP forms

• eClub design/management

• Upgrade Manager

• Reporting & analytics

• On-Property Messaging

eDevelopmentTM

• iNeedTM - Mobile Concierge

• Mobile solutions

• Thank You Note

• Social media management

• Bounce Back Offer

• Website design & development

eSurveyTM

• Reporting & analytics

• Guest comment tracking • Real time issue tracking & response • Online Survey • Survey Alert • Survey Central • Trip Advocate - boost social site ratings

At its heart, Intelity ICE (Interactive Customer Experience is a rich-content management and end-point delivery system. From a single portal, hotels can orchestrate engaging content that will be viewed and used by customers on mobile apps, from within the hotels’ web sites, from tablet-based kiosks or in-room tablets, even from the hotel’s TV system. ICE integrates with a variety of hotel systems including PMS and HotSOS to enable mobile check-in, self-service requests, keyless direct-to-room access, and a variety of other touch points.