11

Orbis Hotel Group Orbis Hotel Group Investor Presentation Investor Presentation

1 June 2007

22

Operating Results Jan-Mar 2007 Operating Results Jan-Mar 2007

Orbis Hotel GroupOrbis Hotel GroupJan-Mar 2007 Jan-Mar

2006change

No of rooms 10 947 10 743 +204

Rooms sold 444 116 379 195 17.1%

Occupancy rate

45.1% 39.2% 5.9 pp

ARR (PLN) 213.6 204.3 4.5%

RevPAR (PLN) 96.3 80.1 20.2%

EBITDA 32 210 17 457 84.5%

33

Operating Results Jan-Mar 2007 Operating Results Jan-Mar 2007 Orbis S.A.Orbis S.A.

Jan-Mar 2007 Jan-Mar 2006

change

No of rooms 9 0589 058 9 2309 230 -172-172

Rooms sold 344 870344 870 298 713298 713 15,5%15,5%

Occupancy rate

42,3%42,3% 36,0%36,0% 6,3 pp6,3 pp

ARR (PLN) 216,9216,9 205,2205,2 5,7%5,7%

RevPAR (PLN) 91,891,8 73,873,8 24,4%24,4%

EBITDA 21 02221 022 7 0127 012 199,8%199,8%

44

Operating Results Jan-Mar 2007 Operating Results Jan-Mar 2007 Hekon S.A.Hekon S.A.

Jan-Mar 2007 Jan-Mar 2006

change

No of rooms 1 8891 889 1 5131 513 +376+376

Rooms sold 99 24699 246 80 48280 482 23,3%23,3%

Occupancy rate

58,9%58,9% 59,1%59,1% -0,2 pp-0,2 pp

ARR (PLN) 202,0202,0 201,1201,1 0,4%0,4%

RevPAR (PLN) 119,0119,0 118,9118,9 0,1%0,1%

EBITDA 11 07911 079 9 8479 847 12,5%12,5%

Update of the OrbisUpdate of the OrbisHotel Group Development Hotel Group Development

StrategyStrategy2007-20112007-2011

1 June 2007

66

Development Strategy Development Strategy Orbis Hotel GroupOrbis Hotel Group

Development of the Etap and Ibis hotel brandsDevelopment of the Etap and Ibis hotel brands Rebranding of the selected Orbis hotels after their Rebranding of the selected Orbis hotels after their

refurbishment and adjustment to Accor brands’ refurbishment and adjustment to Accor brands’ standardsstandards

Basic assumptions of the strategy:

Strategic goals:

Significant development of the economy hotel Significant development of the economy hotel segmentsegment

Restructuring of the existing hotel portrfolioRestructuring of the existing hotel portrfolio

Increase of results and the Group’s valueIncrease of results and the Group’s value

77

Macroeconomic Environment in Macroeconomic Environment in PolandPoland

GDP growth –GDP growth – 6 6..1% 1% inin 2006 2006

Unemployment rate decline to Unemployment rate decline to 1414..9% 9% inin 2006 2006

Increase of foreign investmentsIncrease of foreign investments

GDP growth GDP growth 2008-2012 – 2008-2012 – 5.5.5-5-6.56.5%% annually annually

Source: GUS, NBP, MF, BZ WBK

88

5,65,66,16,14,0 1,41,1 3,8 5,4 3,5

8,59,011,0

14,9

20,0 19,117,618,117,5

15,1

10,1

3,5

2,1

0,81,9

5,5

1,02,2 2,5 2,5

0

5

10

15

20

25

2000 2001 2002 2003 2004 2005 2006 2007P 2008P 2009F

0

2

4

6

8

10

12

GDP growth unemployment rate inflation

Unemployment rate (%)

Source: GUS, MF, MG

Inflation, GDP (%)

Macroeconomic EnvironmentMacroeconomic Environment

99

Situation on the Tourist MarketSituation on the Tourist Market

Increase of no. of foreign tourists in Poland by Increase of no. of foreign tourists in Poland by 3% 3%

to to 1515..7 m7 million inillion in 2006 2006**

Average annual growth in Average annual growth in 202007-201007-2010 – 4% – 4% **

Increase of average tourists spendings per 1 day of stay Increase of average tourists spendings per 1 day of stay

Increase of no of passengers at airports by Increase of no of passengers at airports by 21%21%**

Expansion of the low-cost airlinesExpansion of the low-cost airlines

Positive trend of occupancy rate and ARR in hotelsPositive trend of occupancy rate and ARR in hotels

Growing interest in economy hotel segment Growing interest in economy hotel segment

Expected increase of the number of domestic tripsExpected increase of the number of domestic trips

* Source: Institute of Tourism

1010

Euro 2012 Expected BenefitsEuro 2012 Expected Benefits

GDP and investment activity will boost

Infrastructure improvement in Poland

Additional tourist traffic due to infrastructure development assumed

1111

Opportunities to StrengthenOpportunities to Strengthen the Hotel Chain the Hotel Chain ExpansionExpansion

More new rooms needed to capture More new rooms needed to capture increased demandincreased demand

Most of new customers will look for economy hotels

Chance to accelerate the Orbis Hotel Group development

mainly in the economy segment

1212

5 – year Program Investment 5 – year Program Investment Budget 2007-2011Budget 2007-2011

Total budgetTotal budget

1 4211 421

Refurbishments

402Development

1 019

Ibis& Etap (34)

794

Other brands (4)

225

1313

BudgetBudget Increase PLN m 558 Increase PLN m 558 BreakdownBreakdown

New added projects or projects changes – PLN m 395 New added projects or projects changes – PLN m 395 (71%)(71%)

Increase of the construction cost – PLN m 163 (29%)Increase of the construction cost – PLN m 163 (29%)

Construction costs in Poland increased by 35% over last 12 months

New developments – PLN m 483 (87%)New developments – PLN m 483 (87%) Refurbishments & modernizations – PLN m 75 (13%)Refurbishments & modernizations – PLN m 75 (13%)

10 hotels and 1.7 thousand rooms more

1414

Changes in the Hotel Group not Changes in the Hotel Group not Affiliated with Accor BrandsAffiliated with Accor Brands

9 Orbis hotels to be replaced with 13 new 9 Orbis hotels to be replaced with 13 new

onesones

5 hotels to be rebranded (Mercure, Novotel)5 hotels to be rebranded (Mercure, Novotel)

8 hotels – potential disposals8 hotels – potential disposals

1515

Future Structure of the Orbis Hotel Future Structure of the Orbis Hotel GroupGroup

2007 2011

19 % hotels in economy segment

56 % hotels in economy segment

3

12

13

9

24

4

17

16

30

203

2

64 89

1616

Source of the Program Financing Source of the Program Financing – EBITDA forecast– EBITDA forecast

PLN 1 421 PLN 1 421 million million

47%cash flow

from operating activity

24%Debt

29%Asset

disposal

EBITDA ( PLN million )

285285

328328

361361

390390

20072007 20082008 20092009 20102010 20112011

230230

EBITDA forecast without potential gains on asset disposal

1717

New environment – opportunities and New environment – opportunities and risks risks

Opportunities

Worldwide and Polish economy revival

Further benefits from the EU membership

Euro 2012 (simplification of the administrative procedures, infrastructure development, increase of the tourist traffic)

Risks

Intensification of competition

Increase in construction materials&work costs

Increase in prices of plots

Shortage of the construction companies

1818

Development ProjectsDevelopment ProjectsWhere we are today ?Where we are today ?

Stage of projects implementation

Number of hotels

Site + PB 4

Site + WZ 12

Site 4

Identified site 7

1919

Conclusions

Orbis Management Board keeps with the Orbis Management Board keeps with the assumptions of the strategy and the assumptions of the strategy and the development program announced in March development program announced in March 2005 and May 2006.2005 and May 2006.

Goal: 39 new hotels (4.8 thousand rooms) Goal: 39 new hotels (4.8 thousand rooms) instead of previousely planned 29 (3.2 thousand instead of previousely planned 29 (3.2 thousand rooms) in the strategy May 2006 rooms) in the strategy May 2006

In total 89 hotels covered by the Hotel Group In total 89 hotels covered by the Hotel Group including 50 hotels in the economy segmentincluding 50 hotels in the economy segment

Further program adjustments following the Further program adjustments following the market changesmarket changes

Thank you for your Thank you for your attentionattention