Why Holiday Inn is Changing

• Strongest pipelinein 20 years

• High levels of brand awareness and usage

• 100 million stays last year

“There is no question that you either take charge of

change or change will take charge of you”

Kemmons WilsonFounder of Holiday Inn, 1952

Consumer Needs/Wants

• Respected as adults, as real people

• Manage uptime and downtime

• Make conscious price-benefit trade-off decisions

• Basics in place

• Treated fairly

Our BrandTruths

• Safe choice

• Trustworthy

• Friendly

• Honest

• Unpretentious

• Efficient

• Real

When I Am Traveling…

I want a hotel that treatsme like a human being—

not just a number

Self-sufficiency

Wellbeing

• Feeling your best

• Better personal health

Style and Design

Community

• Online and offline

Authenticity

Championing the Real World

Holiday Inn is the only mainstream hotel brand family that

understands and respects the real world in which you live

• Dynamic

• Modern

• Fresh

• Energetic

• Recognizable

• Straight, clean lines

• Friendly

• Simple

• Lighthearted and fun

• Curvy

• Fresh

• Young

• Down-to-earth

MONOGRAM FONT COLORS

The Design Elements

New Signage

Signature Arrival

Current Standards Promote a Cluttered Look

Hotels Hotels Guests Guests

LoveLove

New Service Promise – Stay Real

Be Loved• Keep Promises• Show Appreciation• Make Their Stay

Act• Ask• Think• Do

Be Ready• Know our Hotel• Know our Guests• Know our Role

Care• Notice• Connect• Listen

Ideal Timeline Would Suggest That The Repositioning Could Be Largely Completed By Early 2010

July Oct Dec Feb JuneSept Nov Jan Mar Apr May

2007 2008 2010

JanAug

Parity: installation of new bedding/bath (HI)

Case for Change DVD

Owner letter Conference Issue hallmark standards

Regional workshops

COMPLIANCE: signage complete

Basics: addressed based on QE audits

QE: 2nd round inspectionsQE: program update QE: train/hire QC

Ongoing threshold tracking/measurement

Fin.: determine plan Finance: secure credit Finance: provide financing/collect repayments

Stds: endorsement

Signs: select vendors/pilotSigns: prototypes and specs Signs: mfr/Install

Issue standards

Breakfast bar: rollout (EX)

New uniforms: rollout

Legal: update UFOC Sales: new owner proposition

Communications strategy: owner/developer/consumer/internal/other stakeholders

Hallmarks: develop & test Hallmark: mfr/InstallHallmarks: spec & source

Service: train propertiesService: Global blueprint Service: reg plan

Testing: hotel-level pilot testing Production rollout

QE: socialize

There is a 4-step Rollout Process For Each Property“How To Get The New Sign”

PASS QUALITY EVALUATION

1INITIATE SERVICE

TRAINING

2 MEET OSATTHRESHOLD

3 INSTALLHALLMARKS

4

• QE will outline any necessary changesa property must make

–Overall and more specifically for ‘the basics’

• Properties will be revisited at pre-defined intervals(~ every 6 mos)

• Training in the new ‘service culture’ must be completed by every hotel

• In order to proceed in the repositioning, hotels must initiate training and complete initial phase (more details to follow)

• Properties will be assessed on 12-month rolling average at initial test

–A 3-mos rolling average will be used at re-test

• Current OSAT threshold levels will remain in place, with ‘action required’ category being eliminated on 1/1/2010

–80 for HI and 84 for EX

• Properties must also not be in any type of default (e.g., PIP)

• Properties must have implemented the new bedding standard

• Hallmarks cannot be installed until the first three criteria are met

• Signs and hallmarks should be ordered at the same time

–Goal is for installation to occur together, when possible

Q3

The Ideal Timeline Launches Full-scale By 6/2008And Reaches Critical Mass By 1/2010

2007 2008

Quarterly totalCumulative total

2009 2010+Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

20 200 450 450 450 450 450 387

20 220 670 1120 1570 2020 2470 2857

20

21

294 396

32 32 54 54 54 54

59

107

9

4

New hotels 2005/2006[old sign]

New hotels 2007[temp sign]

Pilot

Other existing properties[Ready now]

New hotels[June 08 and on]

New hotels 2007[old sign]

New hotels 2008 Q1,Q2[temp sign]

Supersites

New in 2008, Q1,Q2[old sign]

Other existing properties[Not yet ready]

Sunspree/Select conversions

294

47

298

76

1

11

228

30

149

298 39

98 98

“There is no question that you either take charge of

change or change will take charge of you”

Kemmons WilsonFounder of Holiday Inn, 1952