hotel csr report

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1 Corporate Social Responsibility Report 1 2012 Performance Review 1 "Corporate Social Responsibility" includes community relations, welfare, corporate governance, environmental quality and sustainability, ethics, contributions and accessibility.

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Page 1: Hotel CSR Report

1

Corporate Social Responsibility Report1

2012 Performance Review

1 "Corporate Social Responsibility" includes community relations, welfare, corporate governance, environmental quality and sustainability, ethics, contributions and accessibility.

Page 2: Hotel CSR Report

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The company's management and the company's hotels tirelessly endeavor to promote the values on which the company's

operations are founded.

These values include, inter alia, responsibility and integrity, tolerance, transparency and fairness based on solidarity and

attentiveness.

Promoting these values nurtures, enriches and furthers the company's operations – both for the benefit of the company's

guests and the company's employees.

Instilling and embedding these important goals - primarily welfare, contribution to the community, accessibility,

environmental quality and ethics – guides the company's operations in all its branches and strata, and constitutes a

significant factor in decision making at various levels.

We are proud of the company's outstanding accomplishments, including its achievements in these fields, and aspire to

continue these fruitful and prosperous activities.

Page 3: Hotel CSR Report

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Table of Content

Field of review Page

Assimilation of the Ethical Code 4

Non-discrimination and equality among company employees 5-6

Preventing Sexual Harassment and Respecting Others 7

Health and Safety 8-9

Contractors and Service Providers 10

Social Council 11

Employee Welfare 12-13

Activities for the Benefit of the Community 14-16

Access for people with disabilities 17

Environmental Improvement Activities 18-20

Financial contributions to the community 21

Page 4: Hotel CSR Report

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2012 Performance Plans for 2013

Assimilation of the Ethical Code

• Briefing the CEO of the hotels, division heads and department

managers at the hotels by the company's senior executives.

• Instructing a team of hotel VPs and HR managers at hotels as to

how to brief the company's employees and explain the articles of

the ethical code.

• Every new employee was briefed and signed a form indicating that

he/she understood the ethical code.

• Every new employee viewed the film specially produced by the

company for new employees, which explains, inter alia, the ethical

code.

• Translating and printing the ethical code in various languages –

Hebrew, English, Arabic and Russian.

• Publishing the ethical code to the company's website.

• Publishing the ethical code on bulletin boards in the company's

hotels.

• Examining the implementation of the ethical code in the company's

hotels.

• Employee participation in updating the articles of the ethical code.

• Continuing the briefing and signing of the ethical code by new

employees

• Continuing the viewing of the film produced by the company for

new employees, that explains, inter alia, the ethical code.

• Continuing the ongoing briefing of employees and managers of the

various departments in the company's hotels.

• Extending the auditing of the company's employees/managers to

ensure comprehension of the ethical code and its implementation.

• Feedback for updating the ethical code and feedback for the method

of assimilating the code among company employees.

• Continuing the translation and printing of the ethical code in

various languages – Hebrew, English, Arabic and Russian.

• Updating the ethical code on the company's website.

• Continuing the publication of the ethical code on bulletin boards in

the company's hotels.

Page 5: Hotel CSR Report

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2012 Performance Plans for 2013

Non-discrimination and equality among company employees

• Implementing and observance of a non-discrimination and equality

policy between the genders and religions employed by the

company.

• Employing released prisoners in the company's hotels.

• Strict implementation of the regulations of labor laws.

• Training the chain's salary manager to serve as a senior salary

auditor for contractor workers.

• Briefing the hotel's CEOs, HR managers and department managers

in the hotels about the various labor and employment laws in the

industry and implementation of their provisions in the company's

hotels.

• Sharing, with hotel and company managers, current theoretical

material dealing with interpretation of laws, court and labor court

rulings, findings of internal audit reports as well as practical

recommendations resulting from their conclusions.

• Taking actions to ensure that department managers and hotel CEOs

are informed on an ongoing basis in order to prevent violations of

labor laws.

• Inspecting the employment conditions of contractor workers

• Employing disabled employees in the company's hotels.

• Continuing, in 2013, to strictly enforce non-discrimination and

equality, including equal opportunities for employees of different

faiths and different genders.

• Continuing to strictly implement labor laws and the regulations of

the industry's collective labor agreement.

• Training sessions and forwarding of professional reading material to

executives in the hotels and company dealing with equality and non-

discrimination between employees, and the actions that should be

taken to prevent violation of the provisions of the labor laws.

• Continuing to protect the rights of company employees, workers of

personnel contracting companies and the refugees working at the

company, while conducting audits, including an external salary

auditor.

• Continuing to brief hotel CEOs, HR managers and department

managers about the various labor laws and the industry's collective

labor agreement, and implementation of their provisions in the

company’s hotels.

• Continuing to share, with hotel and company managers, current

Page 6: Hotel CSR Report

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employed on behalf of the company.

• Efforts to reduce the number of workers employed through

personnel contracting companies.

theoretical material dealing with interpretation of laws, court and

labor court and rulings, findings of internal audit reports as well as

practical recommendations resulting from their conclusions.

• Continuing to inspect the employment conditions of contractor

workers employed for the benefit of the company.

• Continuing to monitor and take actions in order to reduce the

number of workers employed through personnel contracting

companies.

• Continuing to provide managers and employees with training related

to diversity and the diversification of the company's employees.

• Expanding the adjustments made for employees belonging to

different sectors that are employed by the company (for instance –

adjusting the vacation schedules for employees of different

religions, employment contracts that are translated into different

languages, training in different languages, etc.).

• Continuing to establish ties and collaborations with associations and

organizations promoting the employment of people with disabilities

and workers from various sectors of the population.

• Investing in Hebrew studies for weaker populations (foreign

nationals, Arabs, new immigrants).

• Assimilation of a computerized work scheduling software that limits

irregularities in worker employment.

Page 7: Hotel CSR Report

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2012 Performance Plans for 2013

Preventing Sexual Harassment and Respecting Others

• Conducting activities aimed at assimilating, among all company

employees at all levels, respect for others and prevention of sexual

harassment.

• Sexual Harassment officers at the company's hotels were sent to

courses dealing with this issue.

• Preparing a procedure that lists rules of conduct that should be

observed in order to prevent cases of sexual harassment by external

workers (such as – spa service workers in hotels) and training to

prevent such cases.

• New employees underwent training and signed a form indicating

they received training in prevention of sexual harassment.

• Conducting bi-annual training sessions dealing with the prevention

of sexual harassment.

• Annual refresher session about this issue for all of the company's

employees and managers.

• Hearings were held for employees that were involved in cases of

sexual harassment. In each case in which a violation was proven –

the matter was handled severely according to law.

• Continuing to conduct ongoing activities among all company

employees and managers to assimilate respect for others and to

prevent sexual harassment.

• Continuing the training of Sexual Harassment officers at the

company's hotels.

• Continuing the training of new employees and requiring them to

sign a form indicating that they participating in training dealing with

sexual harassment.

• Continuing to enforce and refresh training of external service

workers dealing with the issue of sexual harassment.

• Participation of representatives of the employees in activities

conducted by the Equal Opportunities Employment Commission.

• Continuing to conduct hearings for employees that were involved in

cases of sexual harassment, and handling the cases in which a

violation was proven severely according to law.

Page 8: Hotel CSR Report

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2012 Performance Plans for 2013

Health and Safety

• The company strived to stringently comply with the work safety

procedures. Every hotel / site is required to implement and enforce

the safety procedures.

• The company's Safety officer, in collaboration with the Safety

Committees in each hotel, conducted ongoing inspections, set

targets for the correction of faults, published reports and verified

correction of faults.

• An annual Safety report was published.

• Inspections of shelters and protected spaces were performed and

their conclusions were applied.

• The procedure dealing with preparation for use of shelters and

protected spaces was updated.

• The company acted to promote compliance with safety procedures

that protect the hotels' guests.

• Hotel managers and employees participated in courses teaching

work safety, fire prevention, first aid, etc.

• The company examined the factors leading to work accidents and

drew conclusions and defined actions aimed at preventing the

recurrence of these accidents.

• Continuing to act in stringent compliance with safety procedures

while conducting inspections and correcting faults in order to

provide its employees with a safe and healthy work environment and

reduce the number of work accidents.

• Publishing the annual Safety report for 2013.

• Continuing to conduct internal inspections to examine the high

standards of health and safety.

• Continuing to strictly enforce safety procedures in order to protect

the safety of its guests and employees.

• Continuing the participation of hotel managers and employees in

courses teaching work safety, fire prevention, first aid, etc.

• Continuing the inspections of shelters and protected spaces and

implementation of their conclusions.

• Continuing to strictly enforce safety procedures that protect the

hotels' guests.

• Continuing to examine the factors leading to work accidents and

drawing conclusions and actions for implementation in order to

prevent the recurrence of these accidents.

• Continuing to enroll new employees in the collective medical

Page 9: Hotel CSR Report

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• Employees that comply with internal regulations were enrolled in

the collective medical insurance plan and an effort was made to

expand the scope of insured employees.

• Writing and distributing special safety procedures for contract

workers (Dan Eilat Hotel).

• Updating and editing the safety procedure related to reporting and

investigating work accidents.

• Handling expansion of the clauses in the collective medical

insurance plan and signing a new agreement.

insurance plan.

• Continuing to update the safety procedure related to reporting and

investigating work accidents.

• Writing a work procedure to regulate issues of safety in external

events held on the company's premises that will define the scope of

responsibility of the parties involved in the production of these

events.

• Purchasing of defibrillators for hotel employees and guests and for

the company headquarters, and organizing training for the use of

these devices.

• Continuing to update employees about current health issues (such as

– inoculation against polio, the flu, etc.).

• Continuing to encourage employees to quit smoking and raising

awareness for the topic, including financial assistance for quitting

smoking courses.

• Continuing to participate in projects in the field of work safety.

• Updating the company's procedures dealing with work safety.

• Continuing the activities of the Safety committees in the company's

hotels and monitoring their activities.

• Training managers in the company with an emphasis on critical

safety issues and updates in the field of work safety.

• Holding seminars for managers at all levels and providing guidance

in understanding their responsibility for worker safety and suppliers

of personnel according to safety principles.

Page 10: Hotel CSR Report

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2012 Performance Plans for 2013

Contractors and Service Providers • The company worked with its legal advisors to draw up new and

detailed contractual agreements with suppliers and personnel

contractors, that specify undertakings for worker employment

conditions according to the provisions of law and in adherence to

the stringent safety procedures that are applied by the company.

• The company initiated the training of an expert salary inspector that

was certified on its behalf to monitor the ongoing contractual

conditions with the company's various suppliers.

• The company set conditions for its contracting with personnel

providers stipulating that they must strictly adhere to the provisions

of the new labor laws.

• The company provided hotel CEOs and their deputies with training

related to the provisions of the new law in order to boost

enforcement.

• Continuing to work with its legal advisors so that suppliers and

personnel contractors working with it sign a commitment to worker

employment conditions according to the provisions of law and

adherence to the safety procedures.

• Continuing to set conditions for the company's contracting with

personnel providers stipulating that they must strictly adhere to the

provisions of the new labor laws.

• Continuing to provide hotel CEOs and their deputies with training

related to the provisions of the new law in order to boost

enforcement.

• Establishing a mechanism for examining enforcement of the codes

of conduct in effect in the companies that provide personnel that are

essential for the company.

• Continuing to scrutinize the reputation of personnel companies with

which the company contracts, to conduct legal background

investigations, and examine adherence to work procedures.

• Continuing to enlist personnel contractor workers to work as full-

fledged company employees.

• Continuing to enforce labor laws and strictly control, via salary

auditors, payments made by personnel contractors and providers.

Page 11: Hotel CSR Report

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2012 Performance Plans for 2013

Social Council • The company continued the activities of the Social Council,

composed of representatives of the various departments in the

hotels and the head offices.

• The Council is active in a range of fields, including coordinating

joint welfare activities for all of the company's hotels, assimilation

of the ethical code, involvement of employees in updating the

ethical code and examining its ongoing implementation in the

company’s hotels.

• Ongoing operations, in every hotel, of a Give and Take store for the

benefit of company employees and pensioners.

• Continuing the activities of the Social Council and invigorating its

members in order to encompass as widely as possible the diversity

of employees in the company's hotels.

• Establishing a Welfare committee in the hotels.

• Examining expansion of welfare activities conducted in this field

by the company's hotels by formulating a uniform "concept" for

2013.

• Setting uniform measuring tools for the conveying information

about the performance of welfare activities and contribution to the

community by the company's hotels.

• Holding a designated day for members of the Social Council -

representatives of all the hotels and the head offices – focusing on

listing contributing activities and assistance to the community that

each hotel performed, as well as exposure to the issues of

accessibility and the environment, and their importance.

Page 12: Hotel CSR Report

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2012 Performance Plans for 2013

Employee Welfare

• Contributing to a study fund for employees according to the

sectorial employment agreement.

• Writing a procedure for dealing with and tracking external interns

at the company's hotels and their integration into hotel operations

and work in the hotels.

• Increasing the participation of the company in supplementary

professional studies for employees.

• Operating Give and Take stores – clothes and products from

employees to other employees (operated in every hotel).

• Updating and distributing the procedure setting guidelines for

visiting the sick and consoling bereaved company employees.

• Updating and expanding the procedure that regulates the conditions

for taking unpaid leave.

• Holding parties celebrating Jewish holidays for the employees and

their children, and attention to the religious holidays of employees

of other faiths.

• Volunteer collaborations between hotel employees and workers of

associations and NGOs.

• Updating and expanding the procedure that sets criteria for

• Continuing to contribute to the study fund for employees according

to the sectorial employment agreement.

• Writing and distributing an informative monthly bulletin to

company employees.

• Upgrading the health insurance conditions for company employees

and their families.

• Continuing to enforce the procedure for dealing with and tracking

external interns at the company's hotels and their integration into

hotel operations and work in the hotels.

• Continuing to expand the participation of the company in

professional enrichment studies and courses for employees and

implementing the procedure dealing with this issue.

• Continuing the operation of Give and Take stores in the company's

hotels and upgrading the products in them according to the needs of

the employees.

• Continuing to enforce the company procedures dealing with the

welfare of employees.

• Implementing the procedure that sets guidelines for visiting the

sick and consoling bereaved company employees.

Page 13: Hotel CSR Report

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awarding scholarships for higher education to children of company

employees.

• Team building activities for the employees of the hotel departments

alone, as well as with their families.

• Updating and distributing a procedure that sets the manner of

giving an employee a gift for a family occasion.

• Updating and distributing a procedure with guidelines for marking

an employee's birthday.

• Updating the procedure that sets the manner of utilization of the

employees' loan fund.

• Holding an evening to honor veteran employees of the company,

with the participation of the Federmann family and the company's

senior management.

• Expanding the procedure dealing with caring for the needy among

the company's employees and pensioners.

• Continuing the collaborations between hotels and various

associations and NGOs.

• Continuing to honor veteran employees in special ceremonies.

• Continuing to update and implement the procedure that sets criteria

for awarding scholarships for higher education to children of

company employees.

• Continuing to conduct team building activities for employees of the

hotels' departments.

• Continuing to update and implement the procedure with guidelines

for marking an employee's birthday.

• Continuing to update and implement the procedure that sets the

manner of utilization of the employees' loan fund.

• Continuing to hold an evening in honor of veteran employees of the

company, with the participation of the Federmann family and the

company's senior management.

• Establishing a welfare channel for distribution between employees

that will contain benefits and special discounts for employees in

various stores and businesses.

• Continuing to publish want ads in the company's hotels among all

of the company's employees.

• Continuing to implement the procedure dealing with caring for the

needy among the company's employees and pensioners.

Page 14: Hotel CSR Report

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2012 Performance Plans for 2013

Activities for the Benefit of the Community

• Adapting the physical workplace for the employment of people

with physical disabilities.

• Conducting blood donation drives in the various hotels.

• Collaborating with the Jewish Agency to provide assistance and

support for new immigrants.

• Donating food and equipment to schools for special events (such as

the Hanukah Happening).

• Activities at the Dan Gourmet school in Haifa:

- Confectionary Chef course for the deaf population.

- Cooking course for new immigrants that were recruited in their

countries of origin (collaboration with the Ministry of

Economy).

- Continued activity and admission of unemployed people into

courses.

- Contributions to the needy (in the Haifa area) of meals that

were prepared by the school's students.

• Donating produce, meals and accommodations to associations and

the needy, that is conducted directly by the company's hotels.

• Continuing direct activities by the hotels, under the guidance of the

company's management, of employing people with disabilities at

least at the same scope as in 2012, and expanding the project in all

the hotels.

• Continuing to adapt the physical workplace for the employment of

people with physical disabilities.

• Activities at the Dan Gourmet school in Haifa:

- Continuing the activities conducted in 2012.

- Conducting cooking courses for convicts (in prisons).

- Conducting cooking workshops for single-parents.

- Contributions of meals to the needy in collaboration with the

municipality of Haifa.

• Continuing to donate produce, meals and accommodations to

associations and the needy, that is conducted directly by the

company's hotels.

• Continuing to contribute used equipment from the company's

hotels to associations, the needy and the Association for the

Wellbeing of Israel's Soldiers.

Page 15: Hotel CSR Report

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• Delivering food on a daily basis to homeless children in Jerusalem

(King David Hotel).

• Contributing used equipment and furniture from the company's

hotels to associations, the needy and the Association for the

Wellbeing of Israel's Soldiers.

• Hosting conferences held by associations and welfare NGOs in the

conference halls of the company's hotels (community service

projects, welfare departments – municipalities).

• Awarding study scholarships for Hotel Management courses.

• A 3-year contribution to the Association for the Wellbeing of

Israel's Soldiers – to the Adopt a Soldier program (total of about

400,000 NIS) - adopting two Navy units operating in the Red Sea

region by Dan hotels in Eilat.

• Sponsoring the Olympic team of disabled athletes for the London

2012 Olympics.

• Chocolate workshops for children hospitalized in the Experimental

School at Mount Scopus in Jerusalem (through the Dan Hotel in

Jerusalem).

• Giving a financial donation designated for the AMIT school in

Ashkelon for renovating the teaching kitchens.

• Donating furniture and equipment (mattresses, cabinets, blankets,

pillows, curtains, mirrors, armchairs and more) to IDF bases.

• Donating gym equipment to Navy soldiers in Eilat.

• Conducting activities for the welfare of residents of the south at the

Ganei Dan hotel in Ashkelon.

• Holding a soccer game between the veteran players of the Maccabi

Haifa team and children from various associations at the Dan

Caesarea Hotel.

• Contributing an evening in which Holocaust survivors were guests

of the Dan Acadia hotel.

• Continuing to award study scholarships for Hotel Management

courses.

• Continuing to contribute to the Association for the Wellbeing of

Israel's Soldiers – 100,000 NIS for 2014 - to the Adopt a Soldier

program. The total cumulative contribution totals 500,000 NIS - for

adopting two Navy units operating in the Red Sea region by Dan

hotels in Eilat.

• Continuing to host conferences held by associations and welfare

NGOs in the conference halls of the company's hotels.

• Continuing to distribute gift packages to needy families before the

holidays

• Checking the possibility of employing prisoners jailed for "light"

offenses in the company's hotels during the period prior to their

release for the purpose of rehabilitation and re-entry into the

normative frameworks.

• Assisting and contributing to the activities of the Sunrise

association in Israel, that cares for children with cancer in Israel.

• Completing the construction of a lookout point in the Carmel

Mountains through donations by employees and the company.

• Continuing to support employee participation and reinforcing the

mechanism for their involvement in selecting the volunteering

targets and donation activities conducted in the hotels.

• Hosting lone soldiers during the Jewish holidays.

Page 16: Hotel CSR Report

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• Distributing gift packages to needy families before the holidays.

• Donating equipment to the memorial for fallen Nahal soldiers in

Pardes-Hana Karkur (through the Dan Carmel hotel).

• Donating doughnuts to hospitals and associations.

• Hosting various associations in hotels where they conduct Hanukah

parties (for instance, at the Dan Panorama hotel in Tel Aviv).

• Distributing equipment to the needy in Beer Akiva (through the

Dan Carmel hotel).

• Adopting senior citizens by employees of the Dan Panorama hotel

in Eilat and Dan Eilat hotel, and awarding a hospitality day to

members of the Seniors House.

• Donating furniture to the Ramat Hadassah Szold Youth Village

(through the Dan Carmel hotel).

• Purchasing gifts for employees from associations (gifts produced

by sheltered association workers).

• Adopting families in need and offering them Friday meals at the

company's hotels.

• Providing accommodations for children and their escorts who were

evacuated from their homes in the Gaza area.

• Collaborating in a Flower Arrangement rehabilitation project at the

Dan hotel in Eilat.

• Providing culinary guidance to the Ofarim village by chefs from

the Dan Acadia hotel.

• Hosting lone soldiers during the Jewish holidays.

Page 17: Hotel CSR Report

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2012 Performance Plans for 2013

Access for people with disabilities

• Conducting structural accessibility surveys for the company's

hotels by a certified and professional accessibility consultant,

preparing master plans for implementing the conclusions drawn

from the surveys of the various hotels and implementing the

guidance during the initial stages.

• Certifying the chain's accessibility coordinator and financing a

professional course in this issue.

• Contributing to associations engaged in advancing people with

disabilities.

• Participating in designated seminars dealing with various

disabilities.

• Continuing to improve the accessibility of the company's hotels and

the services provided by the hotels.

• Conducting an accessibility survey for the service in the company's

hotels by a certified and professional accessibility consultant.

• Writing company procedures that are adapted for service that is

accessible to people with disabilities.

• Conducting training for company employees dealing with access to

structures and services for people with disabilities.

• Formulating an accessibility code and signing it by the company's

employees.

• Developing an accessible website.

• Continuing to participate in designated seminars dealing with

various disabilities and how to improve service to the disabled.

• Continuing to contribute to associations engaged in advancing

people with disabilities.

Page 18: Hotel CSR Report

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2012 Performance Plans for 2013

Environmental Improvement Activities

• A committee was established to examine the possibility of

producing advertising material that will be distributed to hotel

guests aimed at encouraging them to participate in the efforts to

save water, electricity and energy. There are flyers in the hotels

providing information about this to the guests.

• Conducting an activities program for the children of hotel guests in

order to assimilate the issue of recycling and a green world.

• Continuing to donate trees to mark special occasions.

• Financial contribution by the employees and management to the

rehabilitation of the Carmel forest and construction of a lookout

point.

• Conducting inspections by an external party to check the utilization

and burning of diesel oil in the heating system and steam boilers.

The findings of the inspection were positive.

• Crossing over to the use of low efficiency steam boilers to high

efficiency steam boilers (starting with Dan Carmel, Jerusalem and

Caesarea).

• Utilizing the energy emitted by heat pumps with high energy

efficiency (implemented in several hotels).

• Continuing to examine the possibility of guest participation in the

hotels' environmental protection efforts.

• Continuing to assimilation activities relating to recycling issues as

part of the Danyland Club for the children of our hotel guests.

• Continuing to monitor the utilization of diesel oil in the heating

system, while taking steps to improve savings.

• Continuing the transition from the use of low efficiency steam

boilers to high efficiency steam boilers.

• Continuing to utilize the energy emitted by heat pumps with high

energy efficiency (will start at the Dan Panorama hotel in Tel

Aviv).

• Continuing to utilize the energy emitted by air conditioning

through the use of the heat emitted from air conditioning devices in

order to heat water using a high energy efficiency method

(swimming pool water / drinking water / laundry, and more) – HR.

• Continuing to replace light bulbs with low energy consuming LED

bulbs.

• Adding innovating, high energy-efficient chillers in the King David

Page 19: Hotel CSR Report

19

• Utilizing the energy emitted by air conditioning through the use of

the heat emitted from air conditioning devices in order to heat

water using a high energy efficiency method (swimming pool water

/ drinking water / laundry, and more) – HR. (implemented in Dan

Tel Aviv, Dan Jerusalem, Ganei Dan Ashkelon, King David, Dan

Carmel, Dan Caesarea, Dan Acadia, Dan Eilat, Dan Panorama Eilat

and Dan Panorama Jerusalem).

• Transitioning to the use of energy-saving PL lighting in all of the

company's hotels as well as additional efficiency improvements by

replacing the use of Halogen lighting / energy-saving PL lighting

with LED lighting that is even lower in energy consumption

(starting with Dan Panorama Tel Aviv, Dan Panorama Jerusalem,

Dan Panorama Eilat and Dan Jerusalem).

• Replacing hundreds of square meters of green grass with synthetic

grass to cut the use of water for irrigation.

• Increasing the treatment of oil pits in the hotels, including draining

the pits at a higher frequency.

• Collecting used cooking oil from the company's hotels in order to

recycle it.

• Installation of faucet aerator on taps in the company's hotels.

• Improving efforts to save water by dealing with "water leaks" from

the swimming pools, equilibrium pools and constructing of

drainage pools (implemented in the Ganei Dan Ashkelon hotel).

• Implementing reverse osmosis to create softer, salt less water.

• Use of fire extinguishing pump water (during weekly test) for

irrigation.

hotel, Dan Carmel hotel and Dan Panorama hotel in Jerusalem.

• Continuing to replace green grass with synthetic grass to cut water

usage.

• Continuing to install regional water meters, including regional

electricity meters, in order to encourage cuts in consumption.

• Continuing to work in order to save water by equilibrium pools,

constructing of drainage pools, and prevention of "water leaks"

(will be implemented in the Dan Carmel and Dan Caesarea hotels).

• Continuing to install innovative faucet aerator on taps in the

company's hotels.

• Continuing to monitor and maintain oil pits in the hotels, including

draining the pits at a very high frequency.

• Continuing to collect used cooking oil from the company's hotels in

order to recycle it.

• Continuing to treat and create "soft water" - implementing reverse

osmosis to create softer, salt less water.

• Continuing the use of fire extinguishing pump water (during the

weekly test) for irrigation.

• Planning a project for adding filters to fume chambers in the Dan

Panorama hotel in Tel Aviv.

• The company will continue its commitment to reducing the

consumption of energy and water in proportion to the room

occupancy.

Page 20: Hotel CSR Report

20

Data about Energy Savings

The company is committed to reducing the energy consumption in proportion to the room occupancy:

- The occupancy rate in 2012 was 5.3% lower than the rate in 2011.

- The percentage of food dishes sold in 2012 was 3.8% lower than the rate in 2011.

- Following is the energy consumption data for 2012 compared to 2011:

Type 2011 2012 Change

percentage

Gas (Kg.) 520,939 500,674 3.9-

Diesel fuel

(Liter)

1,808,474 1,751,825 3.1-

Electricity

(kWh)

75,625,253 77,001,503 1.8+

Fuel oil (Liter) 93,449 112,951 20.9+

Water (cubic

meters)

1,019,690 985,763 3.3-

Page 21: Hotel CSR Report

21

2012 Performance Plans for 2013

Financial contributions to the community

In 2012 the financial contributions totaled about 2.1 million NIS. In 2013, the company will continue to contribute a monetary sum equal

to the average sum over the past few years.

Will be presented to the company's Board of Directors on 27.11.2013.

________________________ __________________________

Ami Hirschstein Aharon Shaham

CEO Organization and Human Resources VP

Dan Hotels Ltd. Dan Hotels Ltd.