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2016 – 2017 KPMG International Case CompetitionRise to the Occasion. Push Yourself. Go Beyond.

ABNG Consulting

AGENDA

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Situation Analysis

Recommendations

Domestic Expansion

International Expansion

Technology

Summary

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

WHY?

“To be a world-class luxuryinternational hotel and hospitality management company, committed to being the industry leader in all of our activities through dedication to our stakeholders, colleagues, customers, business partners, and owners“

Saturated Dubai

Luxury Market

Emerging Middle

Class in DubaiNew Industry

Disrupter

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

L U X U R Y : a p e r s o n a l i z e d , e x c l u s i v e e x p e r i e n c e

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

LOCAL AUTONOMYPRODUCT MIX

Increase sales of

premium items

GROW GLOBAL

LUXURY PRESENCE

Enter global

market through

landmark hotels

GROW PRESENCE

IN DUBAI

Expand into Upper

Midscale Segment

through a Venu-

Airbnb partnership

Enhance customer

experience through

innovative analytics

platforms

DEEPEN CUSTOMER

RELATIONSHIP

Recommendation

Competing in Dubai’s Changing Market Lifecycle

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Venu as a hotel chain through management contracts

1

Venu as a marketplace through partnership with Airbnb

2

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Venu: clean, contemporary, effortless

69%

69% of Dubai Travelers

look for Hotels with

4 Stars and BelowEstablish a presence in upper midscale

hotels in Dubai by taking advantage of

moving trends

Address Changing Industry Trend

Enter management contacts with existing

upper midscale hotels in Dubai

4 Star Midscale Hotel

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Airbnb Contract With Venu

Listing

posted on

Airbnb for x

amount of

time

4 star hosts

opt in to

potentially

be a Venu

host

Venu

approves

listing

Venu

contracts

with Airbnb

host for 12

months

Venu

redesigns

experience

Guests book

their stay at

Airbnb by Venu

Property

Venu offers unoccupied rooms to Airbnb

I Airbnb offers credible listings to Venu

I IIncrease hotel

occupancy rate by

offering 10%

unoccupied rooms

Varied number of

rooms based on

seasonality

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Redesign: Bringing the hotel to YOU

Chef Concierge Tour Guide Chauffeur Staff

=Personalized and Exclusive

Experience

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Value added Consumer

Safer

Unique &

personalized

experience

Airbnb New customers

without

cannibalization

Entrance into

hospitality

industry

Venu Reach modern

travelers

Address growing

threat to

hospitality

industry

Host Higher revenue

stream

Financial

Stability

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

LOOKING FORWARD: VENU WITH AIRBNB

Understand customer preferences through data

Collect user data from Airbnb

Take Venu global with deepened understanding of

modern traveler trends

COMPETING IN THE GLOBAL LANDSCAPE

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Grow Globally through India

Management Contract with renowned, well-established Luxury Exclusive hotel in India

Gain insight into local culture

Establish Full Ownership landmark hotel in India

Become the brand with luxury landmarks throughout the world

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Jumeriah

Locations

Jumeriah

Opportunities

16© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Understanding our Customers Through Data

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Growing Trends in the Luxury Hotel Industry

Growing

focus on

boutiques or

lifestyle

hotels

Increasing

emphasis on

guest

engagement

Providing

guests total

value

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Jumeirah

Luxurious

and

Innovative

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Consumer Analytics Platform for Jumeirah

Use data to improve Jumeirah stay

Collect data on consumer through profile, Facebook account or Twitter account

Enhance the luxurious and personalized experience for every customer

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So how does it work?

Customer

signs in

through

Facebook

Jumeirah uses

Facebook’s

analytics to

learn about

customer

Jumeriah

provides

potential

customized

itineraries

from learned

data

Customer

experiences

a more

personalized

stay

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Risk and MitigationsRisks:

• Airbnb interested in partnering with a

competitor

• Airbnb not interested in hotel industry

Mitigation:

• Offering unoccupied space as an

incentive

• Sustains long-term growth for both

companies through mutually beneficial

relationship

Risks:

• Costly to open hotels and flagship

hotels

• Pre-existing brand loyalty to

competing luxury brands

Mitigation:

• Land appreciates over time; cheaper

today than in the future

• Recognized brand within Indian market,

increase presence through hotel

Risks:

• Customer doesn't want to link

account

• Costly

Mitigation

• Optional feature to enhance

experience

• Emphasize personalization aspect

through this feature

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Timeline Summary

Dubai: Build Venu

through

management

contract

Dubai:

Partnership

with Airbnb

Utilize data analytics to understand customers and continuously innovate

Enter India:

management

contract

India: build

flagship

landmark

hotel

Take Venu

global

Become globally-

recognized luxury

brand through

flagships

23© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Together, we want to help you grow yourpresence in Dubai, grow your global luxurypresence, and deepen customerrelationships through every step of theprocess so you can become the numberone luxury hotel brand in the world.

24© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Questions?

25© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

APPENDIX

SWOT

Criterion Analysis -

India

Hotel Industry

Demogrpahics

Luxury Major RevPAR

Airbnb by Venu

Porter’s Five Forces

ANSOFF

Hospitality Sector as %

of GDP

Luxury Exclusive Rev

Par

Criterion Analysis -

Dubai

Expanding Globally

India VS China

Venu Room Through

Airbnb

Venu Hotel RevPAR -

Dubai

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

T

SWOT Analysis

S

W

O

Strength• Quality customer service• Innovative experience• Established customer base• Adapt well to cultures• Can demand high price

Weakness• Global brand awareness• Saturated mkt in Dubai• Dependency on tourism• Solely in one industry

segment

Threat• Online mkt place: Airbnb• New entrants in Dubai• Change in consumer

preferences in Dubai and Globally

• General lodging susceptible to economic changes

Opportunity• Global brand awareness• More mgmt contract/partnership• Online presence• Luxury exclusive +9.6% y/y• GDP increase in hospitality sector

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Competitive Rivalry: High

Highly competitive industry with

many competitors. However,

relatively high customer loyalty

Power of Suppliers: High

Relatively few suppliers that can

demand a high price for their unique

hotel buildings/resorts

Threat of New Entry: low

Global trend of lower barriers to

entry (including for substitutes) and

industry-disruptive ideas.

Recognized industry profitability,

which emphasizes importance of

product differentiation.

Threat of Substitutions: High

High level luxury with high

customization results in few threats

of substitution. The largest threats

include the customer purchasing the

offerings separately or booking

through a travel agent. Customers

could also rent an estate or purchase

a vacation home

Power of Buyers: Medium

Many buyers with medium power.

Due to high competition, buyers

drive down price. Low/no switching

cost. Greater price transparency

Porter’s Five Forces – Luxury Hotel Industry

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C R I T E R I O N A N A L Y S I S ( D U B A I )

Venu – Upper Upscale MktVenu – Luxury Upper

Upscale MktVenu Management Contract

with AirbnbEnter Mid-scale Market -

Jumeirah

Broaden Market Reach 4 1 5 4

Ease of Implementation 3 3 3 5

Sustainable Growth 4 4 4 2

Aligns with Vision 5 2 5 1

Total 16 10 17 12

1 53

MediumLow High

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

C R I T E R I O N A N A L Y S I S ( I N D I A )

China India – iconic buildingsIndia- Management

ContractsMarketing Campaign -

Emirates

Broaden Market Reach 5 5 5 4

Ease of Implementation 3 3 3 5

Sustainable Growth 4 5 5 4

Aligns with Vision 4 5 5 2

Total 16 18 18 15

1 53

MediumLow High

30© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Ansoff MatrixNew ProductCurrent Product

Current Market

New Market

Build Venu Brand in Dubai

Take Venu to theGlobal Market

Increase Luxury Market Share in Dubai

Build Venu Brand in Dubai

Take Venu to theGlobal Market

Open Jumeirah Hotels in India

Increase Luxury Market Share in Dubai

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

India China• 3% total interest for luxury hotels

• +12% Growth from 2013 to 2014

• Closer to home

• Cultural similarities

• Better cultural understanding

• More similar consumer: 3%

interest UAE 2%

• Opportunity to be an industry leader

• Shape/grow local economy

• In earlier stages of hospitality

market lifecycle

• Drive local Reputation of Excellence

• Dubai (or UAE) prestige in India

• Greater likelihood of brand

acceptance and success

• Travelers leaving or coming to India

tend to use Emirates which is based in

Dubai

• BRICS country

• 9% total interest for luxury hotels

• +39% Growth from 2013 to 2014

• BRICS country

• Entirely different culture

• Smaller luxury hotels in China

• Further along in hospitality market lifecycle, Jumeirah can't be leader

• Higher competition due to interest

Prioritize India due to

circumstantial urgency &

lower risk, then enter

China with flagship LT

once luxury interest is

more fully developed

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Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Hotel Industry DemographicsVenu:

• Millennials (18-34)

and Tail end of Gen

X (35-40)

• Career Oriented

• Experience Focused

• Family or Business

Oriented

Airbnb:

• Ages 18-30

• Adventurous

• Usually booked by

groups of people.

• Care less about

amenities

• Don’t mind sharing a

space with host

Luxury Exclusive:

• Generally older

generations

• Wealthy individuals with

large leisure time

• Appreciate high quality

lifestyle

• Prefer privacy

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Hotel Industry Portfolio

Economy MidscaleUpper-

Midscale

UpscaleUpper-

UpscaleLuxury

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Hospitality Sector as a Percentage of GDP

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011 2012 2013 2014

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Venu Hotel RevPAR Dubai

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Luxury Major RevPAR

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Luxury Exclusive RevPAR

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Venu Rooms Through Airbnb

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Airbnb by Venue