SERVICE INDUSTRY

SERVICE VALUE ADDED (% OF GDP)

Source: World bankRemark: World bank excludes construction and public utilities (electricity, gas and water) from service industry.

• Gross Domestic Product (GDP) of 2557 was at 12,141.1 MTHB.

• The proportion of service sector in Thailand is stable at around 50% of GDP.

• The proportion of service sector in Thailand of 2014 is at 52% of GDP.

• Thailand economy in Q2 2015 is still continually growing up with the supporting factors of the growth of Tourism and Travel business especially the growth of hotel and restaurant industry which is up to 18.7% and the growth of Transportation and Communication industry is up to 8.6% along with the 37.6% increasing of tourist.

SERVICES IN THE INTERNATIONAL ECONOMY Professional Business Services

Communication Services

Construction and Related Engineering Service

Distribution Service

Education Services

Environment Services

Financial Services

Health Related and Social Services

Tourism and Travel Related Service

Recreational, Cultural and Sporting Services

Transportation Services

Other Services not included Elsewhere

WHY DO WE CHOOSE HOTEL & RESORT SECTOR?

Satisfying rating index from foreign traveler rated more than 3.0 point for Hotel & Resort sector.

Most spending cost per person comes from group of European tourist with long stay period in Thailand.

WHY DO WE CHOOSE HILTON?Top 10 of Hotel Chain worldwideHotel branches in over 97 countries around the worldMany brands provide to each target customerMore than 9 hotels represented in ThailandStylish hotel development under best service standard

HILTON’S HISTORY

ABOUT HILTON

VISIONTo fill the earth with the light and warmth of hospitality. VALUES

H HOSPITALITYWe’re passionate about delivering

exceptional guest experiences.I INTEGRITY

We do the right thing all the time.L LEADERSHIP

We’re leaders in our industry and in our communities.T TEAMWORK

We’re team players in everything we do.O OWNERSHIP

We’re the owner of our actions and decisions.N Now

We operate with a sense of urgency and discipline.

A ROOM FOR YOU• More than 540 locations in 78 countries• Hilton provides an authentic and

contemporary experience for our guests worldwide.

• Guest rooms feature a smart, functional design plus thoughtful amenities.

EAT & DRINK• Whether dining in one of our

innovative on-site restaurants or having a healthy Hilton Breakfast in-room, you’ll find delicious and accessible options to satisfy any craving.

GLOBAL MIND. LOCAL HEART.• Support a variety of charitable

efforts. • Support global sustainability. • Hilton hotel was the first to earn

both LEED and Green Seal environmental certifications.

• We’re more than just a hotel.We’re a global citizen.

STORY OF HILTON

WHAT CAN WE DO FOR YOU?• Always ready to provide friendly,

individualized service to our guests.

• Keep up your workout routine at our on-site fitness centers or relax at one of our spas.

• From booking to checkout, we’re here to make your stay as enjoyable as possible.

ORGANIZATION CULTUREHilton align organization culture with all employees to standardize global service quality.

1. Always start greeting to our valued guests as a warm welcome.

2. Greeting with the guest’s local language (if be able to), but if you don’t know where they are from we can say greeting with our own language with friendly smile.

3. Greeting to our guests everywhere in hotel’s area.4. Keep in your mind that our customers trust in you

to let them feel like this is their own home.5. Try to perceive what’s customer’s demand and

serve their needs.

ESTABLISHING EMPLOYEE’S STANDARD PERFORMANCEThe reputation of Hilton is the key strategic of success in the past, the current and the future. Hilton establish the employee’s standard performance in order to keep going on the growth of success

1. The respect and appreciation of diversityWe acknowledge the worth of diversity of our employees, our customers, our suppliers and our business partners. We respect on the differentiation of race, nationality, region, culture and environment.

2. The protection of the offensiveWe set up the environment of our workplace to resist on any actions of the contempt and aggressive.

3. The workplace environment of the security and hygienic condition.We value to the awareness of the hygienic condition to satisfy the customer requirements and the safety of our guests, our colleagues and our business partners by complying with rules of safety to avoid an emergency situations.

LOCATION EUROPE

Rooms: 59,797Pipeline: 29,000+Under

construction:16,000+

AMERICASRooms: 558,801

Pipeline: 89,000+Under

construction: 30,000+

MIDDLE EAST & AFRICA

Rooms: 20,145Pipeline: 20,000+Under

construction: 15,000+

ASIA PACIFICRooms: 39,887

Pipeline: 55,000+Under

construction: 39,000+

STRATEGIC DECISION OF HILTON GROUPIn order to be the first choice of the world’s travelers. Hilton intends to build on the rich heritage and strength of our brands by:

Consistently delighting our customersInvesting in our team membersDelivering innovative products and servicesContinuously improving performanceIncreasing shareholder valueCreating a culture of prideStrengthening the loyalty of our constituents”.

HILTON DIFFERENTIATION1. Build customer trust and create the unforgettable memories and

experiences through customers. 2. Hilton always base in the top worldwide tourist attraction in each invested

countries which is the important factor that attract customer. 3. The world famous people and historical events were took place at Hilton as

it’s always an honor to be selected for the special events.

CROSS CULTURAL MANAGEMENT• Hilton Worldwide operate their global business with “Cross Cultural Management and

Administration” which makes the happening of intercultural exchange.

• Every single foreign partner has its own peculiar mechanisms of governing relational norms, including knowledge and information transfer among colleagues.

• We gain the developing practical ways of studying culture change, adaptation and human social behavior.

• Leading to the competitive advantages in invested countries.

PRODUCT AND CUSTOMER TARGET

Hilton is synonymous with first-class hospitality. No one has more brands spanning more lodging segments than Hilton. Each of our eleven brands speaks to a different target, from luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels. Partner with us to be part of the best name in the hospitality industry.

Only 41% of customer use hotels over night.Three segment of customer: Business segments Convention segments Leisure segments

HILTON BRANDS

HILTON BRAND POSITIONING: For A Better Night’s Sleep

Branding strategies is powerful tool to position hotels effectively in the market.

Branding is the strategy of defining, building and managing the brands’ portfolio. Branding achieves its goals when companies are able to define and maintain their distinctive and core competencies to ensure the expected experiences the customers have.

Loyalty Program

Luxury

Full service

Focused service

Timeshare

HILTON

WITH HYBRID

STRATEGY

Branding Hybrid Strategy allows companies that have their core business focused in other economic sectors to enter into the hotel market by using their brand power.

Brand Extension Strategy

The Hilton’s product portfolio includes eleven different brands which are the following:

The Waldorf Astoria Hotels & ResortsConrad Hotels & ResortsHilton Hotels & ResortsDoubletree by HiltonEmbassy Suites HotelsHilton Garden Inn. (Hilton,)Hampton Inn & SuitesHomewood Suites by HiltonHome2 SuitesHilton Grand VacationsCanopy By HiltonCurio – A Collection By Hilton

HILTON HOTELS’ BRAND PORTFOLIOBrand Segment Countries/

Territories Hotels Rooms Percentage of total rooms

Luxury 10 24 10,529 1.6%

Luxury 17 23 7,877 1.2%

Upper Upscale 80 554 196,670 29.0%

Upscale 32 371 93,054 13.7%

Upper Upscale 5 215 51,367 7.6%

31-Dec-13

HILTON HOTELS’ BRAND PORTFOLIOBrand Segment Countries/

Territories Hotels Rooms Percentage of total rooms

Upscale 19 581 79,878 11.8%

Upper Midscale 15 1,937 190,635 28.1%

Upscale 3 333 36,778 5.4%

Upper Midscale 2 27 2,928 0.4%

Timeshare 3 42 6,547 1.0%

31-Dec-13

1. THE WALDORF ASTORIA HOTELS & RESORTS

Become part of a unique luxury brand with unparalleled service, inspirational environments and sophisticated style and comfort in the world’s most distinctive destinations. The essence of Waldorf Astoria is timeless luxury.

Guests experience the highest degree of anticipatory, personalized service in an environment that is truly elegant, unique and “Better Than Home.”

2. CONRAD HOTELS & RESORTSConrad is a brand whose focus is on style, service and connection for the

contemporary traveler. Found in thriving urban locations, these full-service hotels and sought-after

resorts feature exquisite views, flawlessly tailored guest services and high-tech accommodations.

3. HILTON HOTELS & RESORTSThe equity of the most valuable name in lodging, and helping to perpetuate the tradition that has made Hilton the very definition of first-class hospitality. Hilton will benefit from a loyal customer base that spans all of the Hilton Worldwide hotels.The efficiency and cost-saving economies that come with this network of more than 4,000 hotels in 90 countries. A global reservations system, the award-winning Hilton HHonors® guest reward program, our responsive operations support and cutting-edge technology are just a few perks that come with making Hilton a brand that you will want to stay with for a long time to come.

4. DOUBLETREE BY HILTONFor business and leisure travelers looking for a comfortable hotel experience, one

of Double Tree’s 371 (and growing!) locations offers a satisfying experience time after time. Each guest is greeted with a fresh-baked chocolate chip cookie before going to

relax in their rooms, featuring Sweet Dreams® by Doubletree Sleep Experience bedding.

5. EMBASSY SUITES HOTELSAs the nation’s largest brand of upscale, all-suite hotels, Embassy Suites by

Hilton is a commanding presence in terms of size, geographic distribution, brand-name recognition and operating performance.

For business travelers, it’s an environment with all the business amenities they need to stay connected; for families, the two-room suites have plenty of space for mom, dad and the kids. A complimentary, cooked-to-order breakfast served each morning makes every guest happy, and the cost-effective prototype is a huge plus for investors.

6. HILTON GARDEN INN. (HILTON,)This upscale, mid-priced, and focused-service brand delivers just what

guests need and eliminates what they don’t use. Hilton Garden Inn is an award-winning concept that is targeted toward the individual business guest and the weekend leisure segment.

Each hotel offers a Pavilion Pantry® market with microwavable items and sundries; a restaurant featuring hot meals for breakfast, lunch and dinner; the Stay Fit Kit® that guests can check out to maintain their fitness regime in the privacy of their room or in the complimentary workout facility; and an on-site guest laundry facility.

7. HAMPTON INN & SUITESThere’s a reason Hampton by Hilton is the number-one brand for investors. Join a growing portfolio of over 1,900 hotels recognized around the world for comfortable rooms and complimentary amenities. On the House® hot breakfast, free high-speed Internet, and crisp and cozy beds with fluffy white comforters are just part of what makes staying at a Hampton a special value. At Hampton by Hilton, if guests aren’t 100% satisfied, we don’t expect them to pay.

8. HOMEWOOD SUITES BY HILTONHomewood Suites by Hilton is part of one of the fastest growing segments in the

hotel industry. These all-suites hotels cater to extended-stay travels, and each room comes with a fully equipped kitchen and dinner table. Guests enjoy a complimentary breakfast daily and a light meal Monday-Thursday evenings.

Homewood Suites also features complimentary high-speed Internet access, a 24-hour business center, complimentary grocery services, recreation options and a 24-hour on-site convenience store. When you develop a Homewood Suites by Hilton, your property benefits from an upscale position in the extended-stay market, backed by the Hilton name.

9. HOME2 SUITESJoin the Home2 Suites family to become part of an exciting new extended-stay concept that delivers unexpected style, enhanced flexibility, expanded spaces, differentiated amenities and passionate service. At Home2 Suites, guests find value in the amenities and services—including a complimentary continental breakfast, fitness and activity rooms, indoor pools and more and in the innovative guestroom design that provides distinctive work, relax and sleep areas with full kitchen, expanded storage and unexpected style.

10. HILTON GRANDS VACATIONA subsidiary of Hilton Worldwide, is based in Orlando, Florida. In addition, there are regional offices in Las Vegas (Nevada), Oahu (Hawaii), New York, Macro Island (Florida) and Sanibel Island (Florida).Dealing in timeshares, Hilton Grand Vacations Company, LLC develops, manages, markets, and operates a system of brand-name vacation club ownership (timeshares) resorts. Club members can also exchange their intervals for vacations at affiliated resorts worldwide.

11. CANOPYThe energizing new hotel in the neighborhood. Offering simple pleasures, thoughtful extras and nice surprises. For a stay that’s positively yours.The whole hotel thing comes down to one simple question: How can we help? Whatever you might need, the friendly enthusiasts at Canopy will help. That’s really why we’re here.Canopy is your connection to the best local food and drink, art and music, fun and fitness. Even the design of each hotel is locally inspired. So you can be, too.

12. CURIO – A COLLECTION BY HILTONCurio – A collection by Hilton is a brand of Hilton Worldwide and is made up

of 4 to 5 stars from Hilton. Individuality, it’s what unifies the hotels in Curio – A collection by Hilton. These hotels exclude authenticity. They capture you. Each with a distinct character and a personality you can’t duplicate.

COMPETITORS OF HILTON GROUPGlobal Hotel

Ranking 2015 by MGK Hospitality of France has already been finalized. The top 10 global hotel group ranking was measured from the numbers of hotel branches in their chains and the numbers of rooms. Hilton was ranked at the second whereby all of the rest 9 are the main global competitors of Hilton.

2015 2014 2015 20141 IHG GB 4,840 4,697 710,295 686,873

2 HILTON WORLDWIDE USA 4,278 4,073 708,268 672,083

3 MARRIOTT INTERNATIONAL USA 4,117 3,854 701,899 662,821

4 WYNDHAM HOTEL GROUP USA 7,645 7,485 660,826 645,423

5 CHOICE HOTELS INTERNATIONAL USA 6,376 6,340 504,808 506,058

6 ACCOR FRA 3,717 3,576 482,296 461,719

7 STARWOOD HOTELS & RESORTS USA 1,207 1,161 346,599 339,243

8 BEST WESTERN USA 3,900 4,046 302,144 314,318

9 HOME INNS CHI 2,609 2,180 296,075 256,555

10 JIN JIANG (inc. Louvre Hotels) CHI 2,208 918 241,910 128,952

WORLDWIDE RANKING OF HOTEL GROUP 2015

ROOMSHOTELS & EXTENDED STAY H.RANK GROUPS NATIONALITY

Brand Segment Selected Competitors

Luxury Ritz Carlton, Four Seasons, Peninsula,St. Regis, Mandarin Oriental

Luxury Park Hyatt, Sofitel, Intercontinental,JW Marriott, Fairmont

Upper UpscaleMarriott, Sheraton, Hyatt, Radisson Blu,Renaissance, Westin, Sofitel, Swissotel,

Mövenpick

UpscaleSheraton, Marriott, Crowne Plaza, Wyndham,

Radisson, Moevenpick, Hotel Nikko,Holiday Inn, Renaissance

Upper Upscale Renaissance, Sheraton, Hyatt,Residence Inn by Marriott

COMPETITORS OF HILTON GROUP

Brand Segment Selected Competitors

Upscale Courtyard by Marriott, Holiday Inn, HyattPlace, Novotel, Aloft, Four Points by Sheraton

Upper MidscaleFairfield Inn by Marriott, Holiday Inn Express,

Comfort Inn, Quality Inn, La Quinta Inns,Wyngate by Wyndham

Upscale Residence Inn by Marriott, Hyatt House,Staybridge Suites, Candlewood Suites

Upper Midscale Candlewood Suites, AmericInn,Towne Place Suites

TimeshareMarriott Vacation Club, Starwood VacationOwnership, Hyatt Residence, Wyndham

Vacations Resorts

COMPETITORS OF HILTON GROUP

SWOT ANALYSIS

- Highly recognized brand worldwide.- Experienced CEO and executives.- Excellent customer service through provision of customized quest experiences.- Formidable loyalty program with unique point of difference (Double Dipping).- Strong focus on branding.- Widely varying product offerings through multiple brands.- Occupancy rate that exceeds break even.- Increased synergy and cost saving through unification of Hilton hotels corporation and Hilton international.- Huge partnerships with 25 airlines , 3 car rental firms and other firms Good supply chain management.- Technical innovations.- Higher brand recognition makes the company priority choice for clients.- Global presence and strong brand portfolio.- Professional Standards.

SWOT ANALYSIS: STRENGTH

- High leverage combined with downgrade.- Weak financial performance affecting the company.- Challenges managing customer expectations due to varying offerings.- Relatively limited network size and distribution.

SWOT ANALYSIS: WEAKNESS

- Target other customer segments.- Increased market penetration (Hilton Hhonors members spend 4.6 billion on accommodations per year but not all with Hilton).- Boost brand loyalty.- Increased expansion into emerging markets and Caribbean - Acquisition of other hotels- Personal trainers.- Gaming activities would escape regulation, etc.- Take advantage of emerging markets, especially with business class and mid-priced markets.

SWOT ANALYSIS: OPPORTUNITIES

- Competition (primarily with Marriott International, Starwood Hotels & Resorts and Hyatt Hotels).- Availability of Information about each hotel’s operations.

SWOT ANALYSIS: THREATS

PORTER’S FIVE FORCES ANALYSIS

RIVALRY AMONG THE COMPETITORS: (HIGH)

Hilton Worldwide is in the industry since the last 93 years, so it has been a long time period since the company is operating in this particular industry. Hilton Worldwide has to maintain their current status and should remain in the same mechanism to enhance their productivity accordingly, as it is the only thing from which they can compete with their new and existing competitors.

BARGAINING POWER OF CUSTOMERS: (HIGH)

Hilton Worldwide has perfect brand recognition and customer base, however the company should be more vigilant to pay more attention towards their consumers as it is a secret of exceptional growth in futureas well.

BARGAINING POWER OF SUPPLIERS: (LOW)

Hilton Worldwide has its headquarters located in the United States (US) and it has its active recognition in different markets as well, in which suppliers are very strong. Finding of suppliers in the United States (US) and any other country is not a tough ask because there are many suppliers who are operating in different countries which are more than ready to deliver their services specially to manufacturing companies and hospitality companies. Due to this particular aspect, the power of bargain from supplier side is quite low which an effective sign is for the companies operating in this particular industry.

THREATS OF SUBSTITUTE PRODUCTS: (HIGH)

The threats of substitute products are increasing day by day. Some of thesubstitute products of Hotel Worldwide are motel and small hotels; however these products are not the entire competitors of the company. Though, there is no problem associated with Hilton Worldwide with having these competitions because of the large portfolio of the company, however, the company has to get ready for every event in the future, because of the globalization

THREAT OF NEW ENTRANTS: (HIGH)

Barriers to Entry: The barriers to entry in opening and establishing a hospitality company is quite low, which is not an effective sign for Hilton Worldwide and other players operating in the market because new entrants may increase the level of competition and pressure on them.

Barriers to Exit: The barriers of exit in this particular industry are also high, which is again not in the favor of the company, as companies entered in this industry are not allowed to get out easily.

ADAPTATION TO GLOBAL CHANGE

Nowadays the economy globalization has become a part of the necessary requirement for enterprises to sustain a successful business operating in a competitive environment. Accordingly, global expansion of hotel operations has increasingly become a significant strategic development for big hotel corporations.

ADAPTATION TO GLOBAL CHANGE

As for Hilton hotel, a series of market development strategies including: entering new market segments and spreading into new geographical areas are made to capture the potential market and take the leading role in the market competition.

With the rapid development of communication technology and international commodities, the acceleration of fu nding, technology and personnel are continuous flow.

Focus to create a sustainable model

In 2011, Hilton Worldwide announced TRAVEL WITH PURPOSE, that focuses on creating shared value and provides a cohesive, yet flexible framework to guide the activities of our business across the regions, brands and hotel properties.

TRAVEL WITH PURPOSE FOCUS AREAS - CREATING OPPORTUNITIES

- STRENGTHENING COMMUNITIES - CELEBRATING CULTURES

- LIVING SUSTAINABLY

ADAPTATION TO GLOBAL CHANGE

Travel with purpose focus areasCREATING OPPORTUNITIES• Striving to be an employer of choice• Fostering diversity and inclusion• Providing workforce development

and career pathways• Supporting educational and life

skills programs for young people

STRENGTHENING COMMUNITIES• Contributing to local economies• Providing for basic needs and

disaster relief• Supporting human rights

CELEBRATING CULTURES• Facilitating commerce

through travel and tourism• Providing cultural

experiences• Preserving cultural heritage

LIVING SUSTAINABLY• Managing efficiency and

performance of our natural resources

• Investing in partnerships that support restoration and awareness

ADAPTATION TO GLOBAL CHANGE

SERVICE QUALITY CONTROL

ISO 9001 and ISO 14001 Certifications for Quality and Environmental Management

Hilton Worldwide and its portfolio of 10 hotel brands has earned ISO 9001 certification for Quality Management Systems and ISO 14001 certification for Environmental Management Systems. With these certifications, Hilton Worldwide becomes one of the first multi-national organizations to certify its entire system globally - more than 3,750 properties in 85 countries - achieving one of the largest ever volume certifications of commercial buildings

MEMBER CARDALL ABOUT BLUEJust Enroll ALL ABOUT SILVER

4 stays or 10 nights

All ABOUT GOLD20 stays, 40 nights or 75,000 HHonors Base Points

ALL ABOUT DIAMOND30 stays, 60 nights or 120,000 HHonors Base Points

HILTON ACCESS TO THAILAND BYJOINT VENTURE

Joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.

Hilton access to Thailand by joint venture with real estate entrepreneur in Thailand such as

TCC Land Group of Mr.Charoen Sirivadhanabhakdi, joint venture of "Double Tree Hilton and Hilton Sukhumvit".

Magnolia Fine Nest Group of Mr.Dhanin Chearavanont, joint venture of "The Waldorf Astoria Hotel and Resort

Rajdamri".

CPN Pattaya Beach Co. Ltd., joint venture of "Hilton Pattaya, Central Festival Pattaya Beach".

JOINT VENTURE

JOINT VENTUREBenefits - Access to new markets and distribution networks.- Increased capacity.- Sharing of risks and costs with a partner.- Access to greater resources, including specialised staff, technology and finance.

Risks- The objectives of the venture are not totally clear and communicated to everyone involved.- The partners have different objectives for the joint venture.- There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.- Different cultures and management styles result in poor integration and co-operation.- The partners don't provide sufficient leadership and support in the early stages.

HILTON IN THAILAND9 locations under 3 brands

THAILAND LOCATION DECISION CRITERIA • Considerate place and business types to invest

• Analysis all environments of new hotel

• Considerate many diverse levels of engagement based on needs of each hotel

• Analysis through previous performance to develop best service with efficiency price structure

Location Rooms

5 2,076

Location Rooms2 455

Location Rooms2 427

HILTON IN THAILAND

HiltonHua Hin Resort & Spa

HiltonPhuket Arcadia Resort & Spa

HiltonSUKHUMVIT BANGKOK

DOUBLETREEBY HILTON

SUKHUMVIT - BANGKOK

DOUBLETREEBY HILTON

PHUKET – SURIN BEACH

HiltonPattaya

CONRADBANGKOK

CONRADKOH SAMUI

Source:World bankhttp://www.worldbank.org/en/country/thailand

The Center for Economic and Business Forecasting (CEBF)http://cebf.utcc.ac.th/upload/report_file/file_th_66d17y2015.pdf

Department of Business Developmenthttp://dbd.go.th/download/document_file/Statisic/2557/H26_201408.pdf

MKG Group: Hospitality ONhttp://hospitality-on.com/en/news/2015/03/25/global-hotel-ranking-2015-a-second-chinese-operator-climbs-into-the-top-10/

http://www.slideshare.net/yvesandremobiot/hilton-19311599

http://ccsenet.org/journal/index.php/ibr/article/viewFile/7418/7100

http://www.slideshare.net/federico.bel/hotels-brand-strategies-english

http://www.managementservices.hilton.com/en/about-our-team/our-brands.html

http://www.slideshare.net/yvesandremobiot/hilton-19311599?next_slideshow=1

https://www.youtube.com/watch?v=xtfdEawmQmg

https://en.wikipedia.org/wiki/Joint_venture

http://www.bangkokbiznews.com/mobile/view/news/503208

http://cpn-th.listedcompany.com/news.html/id/78153

http://www.prachachat.net/news_detail.php?newsid=1367921579

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